CC - Item 6A - West San Gabriel Running Rebels Request for Use of Garvey GymnasiumROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFFRY ALLRED, CITY MANAGER
DATE: July 24, 2012
SUBJECT: WEST SAN GABRIEL RUNNING REBELS REQUEST FOR USE OF
GARVEY GYMNASIUM
SUMMARY
Representatives of West San Gabriel Running Rebels are requesting continued use of
Garvey Gym, at a reduced rate, while they continue their pursuit of 501(c)3 non - profit
status.
Staff Recommendation
That the City Council permit West San Gabriel Running Rebels' use of Garvey Park
Gymnasium at the non - profit rate of $25 per hour for a period of six months (through
January 2013).
ANALYSIS
According to representatives of the West San Gabriel Running Rebels (Running
Rebels) youth basketball organization, they have been providing travel ball opportunities
to youth throughout the San Gabriel Valley since the mid- 1990s. The organization has
historically operated out of the Garvey Park Gymnasium. According to current rosters,
of the current 39 participants, 10 are residents (though not all addresses are indicated).
This meets the mandated 25% resident participant minimum approved by City Council.
Following City Council's approved changes to Parks and Sports Facilities Fees in 2008,
it was determined that the Running Rebels were not a 501(c)3 non - profit organization.
They were immediately contacted and informed of the non - profit requirement for
continued use of the gymnasium. They indicated that they would do so.
Since that time, supervisory and administrative staff have repeatedly emailed, regularly
met with, and provided a number of letters (most recently dated February 1 and March
1, 2012) to address the issue of their non - profit status. As with other organizations, they
were provided a detailed email (dated July 2011) regarding the non - profit process.
Despite these efforts and several deadlines for proof of non - profit status (November
2010, January 2011, and February 2012), the Running Rebels have made little progress
citing legal concerns and limited funds.
ITEM NUMBER: L 0 N_
City Council Meeting
July 24, 2012
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In deference to these issues and in response to the organization's requests, time
extensions and, more recently, discounted use rates have been repeatedly granted.
However, given the lack of progress, staff recently requested documented proof of the
Running Rebels' efforts to obtain non - profit status. To date, we have only been provided
with proof of their Articles of Incorporation (March 2011) and an email referencing use of
the Legal Zoom website. As of July 13, 2012, the California Secretary of State identifies
them as a "Business Entity" and they are not included on IRS' "Exempt Organization"
list.
As has been previously reported to City Council, the Running Rebels have made no
substantive progress toward 501(c)3 non - profit status since it was mandated in
accordance with City policy four years ago. Thus, while extensions had previously been
granted, in March, the organization was asked to pay staff costs ($11.03 per hour) for
their 23 hours of weekly use —this is less than the amount required ($25 per hour) for
non - profit team use of the gymnasium (which requires staff supervision, maintenance,
and lighting). The organization was also informed, in a letter dated March 1, 2012, that
regular rates ($32 per hour in addition to staff costs) would be incurred effective April 30
if non - profit status had still not been achieved. On April 26, the Running Rebels were
again notified of the impending fee increase (however, no fees have been paid by the
organization for a number of weeks).
As a result of newly mandated fees, Running Rebels representatives have asked that
City Council consider a request for continued use of the Garvey Park Gymnasium at a
reduced rate while they continue their pursuit of 501(c)3 non - profit status. Staff
recommends that, as long as demonstrable progress is made by the organization, the
organization be charged the non - profit rate of $25 per hour for a period of six months.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
FISCAL IMPACT
Approval of the request would result in fewer revenues related to use of the Garvey
Gymnasium. These revenues the costs related to staff supervision.
David IV4QI�tgoe�y -Scott
Parks & cre idn Director