Res 21-027RESOLUTION NO. 21-027
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, ACCEPTING THE MCCARTHY FAMILY
FOUNDATION GRANT TO SUPPORT A NEW POWAY CENTER
FOR THE PERFORMING ARTS ENDOWMENT
WHEREAS, the Poway Center for the Performing Arts (PCPA) was built by the City of
Poway more than 30 years ago;
WHEREAS, the PCPA is a community asset for residents of Poway and the San Diego
region, as well as Poway Unified School District students and families, performing arts
organizations, and Poway OnStage patrons to enjoy and celebrate the arts;
WHEREAS, the City of Poway General Fund has significantly subsidized PCPA
operations for many years however due to current and projected General Fund revenues and
expenditures, the City can no longer provide the same level of support to the PCPA and new
strategies need to be implemented to transition the PCPA to a more financially sustainable
operating model;
WHEREAS, on April 6, 2021, the City Council held a workshop in which it provided
direction to staff on a multi -faceted approach that recognized the value the PCPA brings to the
community, while also addressing revenues and expenditures and the current lack of fundraising
to offset the City's costs of operating the facility;
WHEREAS, prior to engaging in formal fundraising for either a capital campaign and/or
the formation of a new endowment, the City Council directed staff to engage the services of a
professional fundraiser to conduct a feasibility study;
WHEREAS, the McCarthy Family Foundation has supported the PCPA since it was first
constructed and is now graciously offering a $1 million grant to the City of Poway to fund the
feasibility study to explore the formation of a new endowment to support the PCPA, as well as
provide the seed money for the establishment of a new endowment to support the PCPA in
accordance with the terms outlined in the attached letter as "Exhibit A";
WHEREAS, per California Government Code section 37354, the City Council must take
action to formally receive these grant funds; and
WHEREAS, the Poway City Council wishes to thank the McCarthy Family Foundation for
their generous support of the arts and the PCPA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as
follows:
SECTION 1: In accordance with California Government Code section 37354, the City
Council formally accepts the McCarthy Family Foundation's generous grant of $1 million to support
the formation of a new PCPA endowment. The City understands this is a two-part conditional
grant which components subject to review and approval by the McCarthy Family Foundation as
outlined in the attached letter included as "Exhibit A" to this resolution.
Resolution No. 21-027
Page 2
SECTION 2: The City Council authorizes the City Manager, or his designee, to work with
the McCarthy Family Foundation to execute an agreement clarifying the terms of acceptance and
use of the McCarthy Family Foundation grant.
SECTION 3: The City Council authorizes the City Manager, or his designee, to execute
all documents related to the McCarthy Family Foundation grant, and appropriate the grant funds
as necessary to fund the feasibility study, as well as the establishment of the endowment.
PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the
City of Poway, California on the 18th day of May, 2021 by the following vote, to wit:
AYES: MULLIN, FRANK, GROSCH, LEONARD, VAUS
NOES: NONE
ABSENT: NONE
DISQUALIFIED: NONE
ATTEST:
Vai
City Clerk
C__
Steve Vaus, Mayor
Resolution No. 21-027
Exhibit A Page 3
McCARTHY
FAMILY FOUNDATION
Mayor Steve Vaus
City of Poway
13325 Civic Center Drive
Poway, CA 92064
Dear Mayor Vaus:
April 19, 2021
I am pleased to inform you that the McCarthy Family Foundation has approved a grant of
$1,000,000 to support a new Poway Center for the Performing Arts endowment. This
grant is being made in response to the Board's decision to sunset the Foundation. These
terms shall apply to your use of the foundation's grant:
1. The grant is a two-part conditional grant. The first part is a $30,000 outright grant for
a feasibility study to ensure that the endowment and related fundraising is realistic and
that there is sufficient commitment from all stakeholders. The second part is a $970,000
grant to establish the endowment.
2. The payment of the $30,000 grant will be made after receipt by the secretary of the
foundation, not later than May 3, 2021, of a countersigned copy of this letter by an
authorized officer of your organization. Payment of the $970,000 second part of the
grant will be made upon: 1) approval of the feasibility study by the Board of Directors of
the McCarthy Family Foundation, and 2) the establishment of the endowment as an
Internal Revenue Code Section 501 (c) (3) and California Revenue and Taxation Code
Section 23701(d) entity.
3. To facilitate your receipt of the electronic $30,000 grant payment, please also provide
the relevant banking information with this signed letter (i. e. wire transfer or ACH
deposit).
4. Under United States law, the McCarthy Family Foundation grant funds may be
expended only for charitable, scientific, literary or educational purposes. This grant is
made only for the purposes stated in this letter and it is understood that these grant funds
will be used only for the purposes of supporting your organization's charitable activities.
It is further understood that this grant will only be continued while your organization
continues to operate as a qualified public charity as defined by Section 501 (c) (3) of the
Internal Revenue Code and Section 23701(d) of the California Revenue and Taxation
Code.
5. Any grant funds not expended or committed for the purposes of the grant will be
returned to the foundation.
P.O. Box 27389 • San Diego, CA 92198-1389
Resolution No. 21-027
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6. In the application of its resources to serve the public interest, the foundation gives
high priority to the realization of equality of opportunity for all members of society.
Accordingly, it is the foundation's expectation that in carrying out this grant, your
organization will take appropriate affirmative steps with respect to women and
disadvantaged minorities.
7. The foundation may monitor and conduct a review of operations under this grant,
which may include a visit from foundation personnel to observe your organization and its
activity, discuss the grant and finances with your personnel, and review financial and
other records and materials connected with the activities financed by the grant.
8. The foundation will include information on this grant in its periodic reports.
If this letter correctly sets forth your understanding of the terms of this grant, will you
please indicate your organization's agreement to such terms by having this letter signed
by an appropriate officer of your organization, and returned to the secretary of the
foundation. It is also understood that by signing this letter, your organization confirms
that there has been no change in its qualification as an organization exempt from income
taxation pursuant to Section 501 (c) (3) of the Internal Revenue Code and Section
23701(d) of the California Revenue and Taxation Code or its classification as not a
private foundation. If any change occurs, please notify the foundation.
On behalf of the foundation, may I extend every good wish for the success your
organization and its programs.
Sincerely,
Rachel M. Henneforth
President
Enclosure
RMH/rcp
Agreed to by: Title: