Palmer City Council: Breaking down the information and action memorandums

During the special Palmer City Council meeting on April 29, much council discussion revolved around agenda the items under New Business--Information Memorandum 25-001, which would inform the council on administrative policy for city-wide donations, and Action Memorandum 25-045, which would authorize the city manager to initiate a Library Capital Fundraising Campaign for the construction of the new library, and Information Memorandum 25-002, regarding the construction budget, funding sources, and financing alternatives.

The reason the special meeting was originally called was because Brad Hanson, the Community Development Director is retiring and was providing the informational memorandum and action memorandum in question.

In the informational memorandum (IM) regarding city-wide donations, Hanson writes that currently the Palmer Municipal Code gives little guidance to accepting donations, and that the administrative policy is formalizing a comprehensive city-wide donation policy and procedures for accepting larger donations, at the request of the city’s Finance Director. “The policy will give staff the necessary tools to ensure the city meets all statutory requirements and satisfies donor expectations,” he writes. As it is for informational purposes only, no action is required by the city council. This IM was moved to the May 13 city council meeting.

“A concern with passing this without legal counsel review is the fact that this means the city can accept up to $5,000 in a donation from somebody without our city attorney or without our city manager reviewing the donation or the contract stipulations to make sure we can properly…accept the contract and that we can carry out the contract appropriately,” said Council member Victoria Hudson when arguing for why the IM should have been removed from the agenda. “I do not think it is appropriate.” She voiced frustration that the IM was presented without allowing new city manager Kolby Zerkel time to review the donation policy, though Hanson wrote that the policy is still being formalized.

“These are information memorandums. All they are (meant) is to provide information the public to know what’s going on. They’re not anything we’re going to vote on…It’s their information and I think that the public needs to hear this information,” said Councilman Jim Cooper, who acknowledged the full audience in attendance wanting to get information about the library and the funding. ”That’s why there’s so many people here.”

Hanson told the council that the city doesn’t have anything in code that allows staff to accept donations. “What this does is it gives a structure and process to be able to accept donations.” He said he understands the apprehension. “I think the most important thing to think about…is it’s applicability to everything we do as far as accepting gifts.”

“That’s why you saw the information…and action memorandums, allowing staff to begin the initiation of this program,” Hanson said.

During public comments, attorney Alison Collins, representing a client who wishes to provide a substantial cash donation specific to the new library, said that her client is having second thoughts due to the lack of action.

“A client contacted me several months ago with a desire to make a significant donation to the city for use in the building of a new public library. It is my understanding that this donation would have been the largest donation from a private donor that the city has ever received.”

Collins said that while there were many other charitable interests available to her client, they had a desire to see the positive impact their donation could make in improving the Palmer community, and all parties had been working to a formal agreement with the city under which the donation could be accepted, recognized and honored. The resolution was to have been presented for action during the meeting.

“My client has become less than confident that this council really plans on proceeding with the building of a new library in any kind of timely fashion,” Collins told the council, saying that when the process of formalizing a donation began months ago, the expectation was that a request for bids would have been sent out by this time and that the old library structure would have been demolished, or a timeline would be established for when it would be accomplished, neither of which has happened. “My client asked that I let you know that if some real progress is not made soon, they will consider finding another cause to donate to where the donation will immediately be put to work.”

Collins said that her client wants to donate to something that they can enjoy seeing the positive effect of during their lifetime, as they do not have as many years left as they once had, and it makes no sense for her client to make a donation to a fund if it is just going to sit for an unknown period.

“If the council does not start making good faith efforts to move forward on this project, it will continue to undermine my client’s, and other potential donors confidence that any donations will be used in a timely and conscientious manner.”

She went on to acknowledge the issues that the council has been presented in regards to the library, as well as the overwhelming public support for a new library, but warned that if the council wants to continue to find reasons to delay, they would find those reasons.

“However, I am equally certain that if the council wants to move forward, even if some variables may be unknown, that it can find a way to move forward. The longer the spins its wheels on these issues, the more opportunities for fundraising will be missed. So at the behest of my client, I urge this council to take decisive action regarding the construction of a new library.”

Collins finished by saying that her client intends to revisit the issue of a donation to the project once the existing structure has been demolished, as “that would be an indication that the city is serious about moving forward with getting a new building built.”

The action memorandum (AM), also authored by Hanson, would initiate a Library Capital Fundraising Campaign for the construction of the new library. “This initiative responds to the strong community support for the project, as residents have expressed interest in making financial contributions toward the new facility.”

“What the proposal is here is that we implement, through the community development department, a capital fundraising campaign that tries to raise $750,000,” Hanson told the council. He said that while it seems like a large number, but one that it achievable. “It’s a responsible thing to do for the community.” He said he hopes the campaign will keep bonding costs down, while showing wide support and contributes overall to the health of the community.

The action memorandum was postponed to the May 13 city council meeting.

The final IM noted that it is important that the current construction market remains “volatile,” citing factors such as federal and local tariffs potentially increasing costs for the new building, while also noting that there are currently no other large-scale projects scheduled, making for a favorable and competitive bidding environment once plans are finalized.