That the City Council:
A.  Approve the formation of a Centennial Celebration Ad Hoc Planning Committee to assist with the planning for the City's 100-year birthday celebration that will occur in 2025; and,

B.  Approve the formation of a Community Services Non-Profit Foundation to assist with fundraising efforts to support the City's Centennial Celebration, as well as provide fundraising opportunities to support the City's other future community based programs, services, activities and events.

The City's founding dates back as early as 1896 when a small collection of homes, farms and ranches in this largely agricultural valley was named "La Habra" and a United States Post Office location was established at the corner of Euclid and Central streets (now called La Habra Boulevard). Nearly 30 years later, on January 20, 1925, the community was officially incorporated as the "City of La Habra" under California general law by a vote of 311 to 146.  The bell and plaque at the corner of La Habra Boulevard and Euclid Street marks "La Habra's birthplace" as the location near where the City's first post office was originally located.  

As the City quickly approaches its 100th birthday in 2025, staff in the City's Community Services Department has started preliminary planning efforts to honor and celebrate the community's centennial. These plans include new and enhanced events, programs, and activities for La Habra residents, businesses, and visitors to enjoy.  Over the past several months staff has researched comparable ‘centennial’ events and planning efforts done by other cities in the region to understand the different plans that were made in those jurisdictions, and to learn about the successes and challenges that those cities experienced while planning and celebrating their 100th anniversaries. Staff reached out to the cities of Brea (2017 centennial), Seal Beach (2015 centennial), Torrance (2021 centennial), and Hawthorne (2022 centennial) for information on their centennial planning and programming. Based on this research, staff is proposing that a year-long celebration start in January 2025 with the goal of honoring the City's past, celebrating its present, and imagining what its future will look like.

Centennial Celebration Ad Hoc Planning Committee
In order to successfully plan and achieve this year-long celebration, staff proposes that the City Council approve the formation of a Centennial Celebration Ad Hoc Planning Committee (Committee) to assist City staff with the extensive planning and preparation that will be necessary leading up to the Centennial kick-off in January 2025. If approved by City Council, the Committee will advise and assist staff with the development of community activities and events, including a potential new one-time large-scale summer street fair and concert, developing a city-wide art project celebrating the City's 100 years, producing an “Images of America” series book focused on La Habra's history, creating specific centennial branding, logos and sponsorship opportunities, and considering ways to enhance existing Citywide special events to highlight the City's centennial celebration. Staff proposes that the Committee's efforts be guided by staff from the City's Community Services Department who will provide staff support to the Committee and regular updates to City Council.

Considering the potential scope and magnitude of a centennial celebration, and taking into account the City's proud tradition of forging close community partnerships with its local non-profit organizations, school districts, and other community stakeholders, staff recommends the City Council consider establishing a diverse, well represented Committee of approximately 23 members, including:
While a 23-member Committee sounds large, staff anticipates assigning Committee members to smaller subcommittees, supported and guided by Community Services staff, to work on specific tasks or functions. It is anticipated that smaller subcommittees will be able to work more efficiently on focused areas related to the Centennial planning and then report the results of their efforts at full Committee meetings. Subcommittees tasks or functions could include:
 
If approved by City Council, staff will send Committee appointment forms to the groups listed in this report and recommends that City Council make their at-large appointment choices at an upcoming City Council meeting in October 2023. It is staff’s goal to hold the first Committee meeting in the coming months.

La Habra Community Services Non-Profit Foundation
In an effort to support the fundraising that will be instrumental in helping successfully produce the City’s 100th Anniversary Celebration, the Community Services Department has initiated the process to create a Community Services Non-Profit Foundation (Foundation), a 501(c)(3) federally recognized non-profit. As part of this effort, staff first researched similar community non-profit foundations in neighboring cities and spoke with staff liaisons to those foundations in the cities of Tustin, Chino Hills, Fountain Valley, Whittier, La Palma, and others to get an understanding of how their non-profits are structured, how they are utilized by their cities, and the pros and cons of maintaining a foundation to support those cities programs and services. What became clear after speaking with representatives from these cities was that the locally controlled non-profit foundations that were established provided significant benefits to those organizations by providing the cities with the ability to fundraise to supplement or replace General Fund resources used to support community events, cultural and educational activities, and other community based programs and services.

If approved by City Council, staff’s goal would be to finalize the establishment of a local non-profit Foundation designed to help the City fund and sustain community events, culturally enriching activities, family programs, and more. The 501(c)(3) non-profit would be eligible for grants and donations that the City itself would not normally be eligible for since the IRS does not recognize governments as tax-exempt non-profits. Having a dedicated 501(c)(3) non-profit in place to specifically support the City's Community Services Department programming would provide the City with a valuable tool to help fundraise for the upcoming centennial celebration, and later, help fund other Community Services events, programs, and activities in the future. All grants and donated funds would be used to support the programs and events that the City offers to the community. To ensure that there is accountability and transparency in the way the Foundation operates, staff recommends establishing quarterly and annual reporting requirements, as well as full compliance with any IRS reporting requirements.
 

Staff further proposes that the City's Community Services Department work closely with the Foundation Board to estimate the approximate amount of funding that might be made available to the City each year so that the Department can submit the proposed Foundation funding commitment to City Council as part of the City's annual budget review process, and then request appropriation by the City Council for the use of any Foundation provided funding. This process will ensure that City Council and the public are made aware of the fundraising efforts undertaken by the Foundation for the benefit of the community, and how those funds could be programmed for use by the Community Services Department in each fiscal year.

If the City Council directs staff to complete the process of forming the proposed Foundation, staff proposes that it be structured as an independent body of community involved volunteers, with a designated City staff member to serve as a liaison. Staff also proposes that the initial three member Executive Board for the Foundation, comprised of a President, Secretary and Treasurer, be established by appointment by the Community Services Director. Once the Executive Board is in place, it will be their duty to establish initial organizational by-laws that determine the number of board members, term limits, and other general rules of operation, and then recruit members to join the Foundation's inaugural Board of Directors. Staff will provide the Executive Board with proposed by-laws based on what other similar foundations have put in place in other communities. Ideally, the Foundation Board be formed with community members who are knowledgeable of and involved in City events and activities so that they have a strong understanding of the needs of the Community Services Department's collection of programs, services, activities and events. So to avoid any potential conflicts of interest, staff does not propose or recommend that any current City employees, or members of any City Commission, Committee or the City Council, be appointed to the Foundation Board.  

Based on staff's research, it appears that over half of the cities in Orange County have established foundations similar to what is being proposed. Those foundations assist their cities in fundraising efforts to support their programs, activities, services and events for their respective communities. In the past, the City's Community Services Department has been unable to secure donations or be eligible for certain private/corporate grants because the City is not a 501(c)(3). Staff anticipates that establishing a Foundation may alleviate some of these fundraising challenges and open up new funding opportunities for the City. It is not envisioned that the proposed Foundation will be competing for fundraising dollars with other local non-profits in the community since the City's Foundation fundraising goals and purpose will be distinct from others such as the Boys and Girls Club, Help for Brain Injured Children, and the La Habra Collaborative. Rather, it is anticipated that the City's Foundation will eventually be in a position to partner with other local non-profit organizations to jointly apply for grant funding for certain programs and services in the future.

With the need to begin Centennial Celebration planning and fundraising this Fall, using Legal Zoom, staff has filed the initial paperwork with the State of California to establish a non-profit community services foundation. Legal Zoom has also assisted with the establishment of the initial Articles of Incorporation for the Foundation. If City Council directs staff to complete the process to form the proposed Foundation, the Executive Board will be appointed, and they will be tasked to create bylaws, form the full board, and begin fundraising efforts on behalf of the City. Based on how other similar foundations have been established in other cities, staff envisions that this Foundation will act as an independent body with a mission and goal of supporting the City's Community Services Department with independent fundraising to both enrich existing programming and events, and to ensure that those activities can continue in the future if the City is no longer able to fully fund those programs from its General Fund.

Regarding the proposed Centennial Celebration Ad Hoc Planning Committee, staff is proposing that members be unpaid volunteers, therefore, there is no cost to form the proposed Committee. There will be staff costs incurred for the planning and production of centennial events and activities, along with the direct cost of hosting those events. The FY 23/24 adopted budget includes $250,000 for Centennial Celebration event planning and programming. Future staff updates to City Council regarding Centennial Celebration preparations will identify specific centennial celebration activities and events, along with the proposed cost for those events, for City Council review and approval.

Regarding the proposed establishment of a Community Services Non-Profit Foundation, the Foundation will act as an independent non-profit organization and will not be supported by the General Fund, except for limited staff involvement as a liaison to the Foundation Board. Staff recommends that the Foundation's by-laws specify that Board Members receive no stipend or compensation, and act as unpaid volunteers. If the establishment of the Foundation is approved by City Council, staff will invoice the Foundation to reimburse the City for the $1,596 that has been paid by the City to file paperwork with the State.