18 - Non-Profit Contracting Policy

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Item No. 18 TO: Mayor & City Council FROM: Grayson Path, City Manager SUBJECT: Non -Profit Contracting Policy DATE: February 22, 2021 BACKGROUND: Every Fiscal Year, the City of Paris contracts with non-profit organizations that have applied annually to the City of Paris seeking funding for public purpose projects. In the past, the City Manager has overseen this process, making the decisions as to which entities will be approved and how much. Last year was my first year putting together the budget and I arrived too late to adequately examine this process at that time. STATUS OF ISSUE: After consideration, if this program of contracting with non-profit organizations is to continue, I would like to request that responsibility of making determinations as to which non-profit organization is funded be turned over to the City Council. Parameters need to be established though to make this a fair, legal, financially constrained and systematic process. Therefore, I have developed a draft Policy incorporating and editing the existing Application and Contract, to present to you tonight. BUDGET: The proposed policy would cap funding at $100,000.00 with an additional $5,000.00 of alleviated excess if found necessary, thus a potential total of $105,000.00. The total awarded in FY20/21 was $91,250.00 excluding the Paris Metro annual contribution ($25,000.00) and Paris -Lamar County Health District annual contribution ($75,000.00) which is recommended to be excluded from this policy given the relationship the City has with these entities.