Item 7.1 - Temp Loan of Funds to Alcohol & Drug Abuse Task Force
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ff' .uGENDA REPORT ~
CITY OF POW A Y
TO: Honorable Mayor and Members of the City
FROM: James L. Bowersox, city Mana~
DATE: April 9, 1991
SUBJECT: Temporary Loan of Funds to the Alcohol & Drug
Abuse Task Force
BACKGROUND:
The City of poway has been a member of the Alcohol & Drug Abuse
Task Force (ADAPT) since its inception. ADAPT has been going
through a transition as a voluntary organization to one which
actually provides services through grants from County, state, and
private sources. During this transitional time period, ADAPT is
experiencing some minor but troublesome cash-flow difficulties. As
a result, a letter has been received which requests a short term
loan which would provide funding assistance until grant funds are
received (see attached).
PINDINGS:
In the past, the city of poway has provided similar loans to
agencies and groups in which there has been participation by the
City. These include the former San Diego County Water Reclamation
Agency, Metropolitan Transit Development Board (from TDA reserve
funds), and the poway Foundation for the Performing Arts. Each of
these loans included a provision for repayment including interest
that would have otherwise been earned. In addition, the City
recently loaned the poway High School Wrestling Team funds to
ensure participation in an out-of-state tournament.
RECOMMENDATION:
It is recommended that the City Council approve a loan of
unappropriated General Fund contingency funds in the amount of
$20,000 to the Alcohol & Drug Abuse Task Force. The term of the
loan would be up to one year, with interest to be that which it
would have earned as reserve funds.
Attachment: Letter from ADAPT dated 2/25/91
ACTION:
I APR 91991 IJriM 7,
lOF 3
ALCOHOL & DRUG ABUSE PREVENTION TASK FORCE
February 25, 1991
Jan GOldsmith, Mayor
City of poway
13325 Civic Center Drive
poway, Ca 92064
Dear Mayor Goldsmith,
I am writing on behalf of ADAPT, the Alcohol and Drug Abuse
Prevention Task Force to request a loan of $20,000 to ease a
cash flow problem that ADAPT is currently experiencing. It
is expected that ADAPT will pay back the loan in twelve months
with interest.
Last spring ADAPT went through a major organizational restructure
going from a voluntary operation to hiring staff and contracting
with the County. Part of the reorganization was the establishment
of a membership fee to provide required matching funds for a
County contract and other usual costs associated with operating
a business. While 33% of the members have paid membership fees
for 1990-91, the remaining 67% have not. Additionally, the problem
has been compounded by the fact that most member agencies have not
paid full membership fees.
The good news and ADAPT's ability to repay the loan is that a
person for special event fundraising has committed to ADAPT and
the grants written by ADAPT are starting to come in. For instance;
state of California-Tobacco Education for City Employees $140,000
of which $10,000 is for indirect costs for ADAPT starting May 1991;
Parker Foundation $2,000 for equipment/office furniture for an
Intern/Volunteer Office February 1991, and certification/membership
with United Way January 1991. While not yet funded by United Way
health insurance coverage has been reduced by being a member of
United Way.
Pending awards include: $3 million over a five year period from
the Office of Substance Abuse prevention-Community Partnership;
$200,000 for at-risk youth Communication/Media grant. Both the
aforementioned have passed the technical submission review and are
at the next level. Capital grant under consideration include: the
Helen Copley Foundation, General Dynamics Contribution Employees
Club, and the Masserini Foundation.
APR 91991 lTiM 7. I
2 OF 3 Mailing address: 5384 Unda Visla Road, Suile 304. San Diego. California 92110 (619) 688-7946
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Furthermore, over the next four months ADAPT will be sUbmitting
- proposals to the Office of Juvenile Justice and Delinquency
Prevention, the Bureau of Justice, and Juvenile Gangs, Drug Abuse,
and Drug Trafficking to bring funds into San Diego county to reduce
drug usage among our youth.
To conclude, what ADAPT is requesting is' a safety net for a short
period of time until the grants are awarded and fundraising events
are established. Should you need additional information please
contact me weekdays at 688-7945.
Sincerely,
~~\&v L . r@-UllJ~ tl
LINDA L. ORAVEC
Executive Director
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3 OF 3 APR 91991 IT ~JV1 7. t