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6.2. SR 05-05-1997'ity of iver ITEM 6.2. MEMORANDUM TO: FROM: DATE: Mayor and City Council Sandra Thackeray, City Clerk May 5, 1997 SUBJECT: Elk River Heritage Festival Grant Application The Elk River Heritage Festival has made a grant application to the Three Rivers Community Foundation in the Amount of $6,000. The funds will be used to help defray the expenses of the festival. If successful in acquiring the grant, the Heritage Festival Committee is requesting the City of Elk River to act as the fiscal agent for the grant money. Because the Heritage Festival is not a 501(c)(3) organization, the money cannot be donated to the Festival Committee. It can, however, be donated to the City. As fiscal agent, the City would receive the check from the Three Rivers Foundation and would be responsible for the following: · release of funds to the festival as needed · make sure the funds are expended as detailed in the grant Lori Johnson, the City's Finance Director has reviewed this grant and the request. She indicated that the City can act as the fiscal agent contingent on Council approval of the request. ACTION REQUESTED: Council motion authorizing the City to act as the fiscal agent for the Elk River Heritage Festival. s:\council\heritage.doc 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 CE ID:2413521 ~PR 30'97 9:19 No.O01P.02 Ronald Wilkes, Heritage Festival, 19695 154Th St NW, Elk River, MN Tel.: H. 612 263-6291 W. 786-6228 April 23, 1997 Three Riven Community Foundation Pamela A. Black 9467 Parkington NE Otsego MN 55330 Dear Pam, Re: Funding request for the Elk River Heritage Festival APPLICATION FOR PROJECT FUNDING ELK RIVER HERITAGE FESTIVAL, INC. 19695 154TH STREET N-W ELK RIVER MN 55330 (612) 263.6291 or 786-6228 1997 Heritage Festival Ronald Wilkes, Chairman Festival beginning Date: August 9, 1997 Festival ending Date: August 10, 1997 Total Event Cost: Estimated $21,000 AMOUNT REQUESTED: $6,000.00 Does this proje~ or the services it provides directly benefit residents within the boundaries oflSD 728? YES 1. BACKGROUND: The Elk River Heritage Festival organization was organized in 1995 in an effort to promote the 150th anniversary of the founding of the trading post by David Faribault in 1846, that became the city of Elk River. The celebration occurred in 1996. Early on, it wn~ decided that the celebration should continue and plans were established to continue the event into the next century. This year (1997) will be our second annual event. Page I of$ CE ID:2~15521 ~PR 30'97 9:19 No.O01P.03 PURPOSE: The "Ail Volunteer" organization's purpose is: "To celebrate the History and Heritage of Elk River and to preserve its identity and pride." STRUCTURE: The volunteer non-profit civic org~i--tion consists of a Chairman, Secretary, treasurer and various sub-committee chairperson~: Parade Committee, Concessions Committee, Rendezvous Committee, Finance Committee, Events Committee, Volunteer Committee. The organizations bank account (ER. Heritage Festival) is located ~t the First National Bank of Elk River and the disbursement of funds to pay expenses requires duplicate signatures. (Treasurer: Net'tie Dubois 441-7388) 2. NEED: Why is the project needed? A Citizen group felt that there was a positive civic need to promote the city's "Heritage" and this would provide an event for the community to satisfy that social/cultural need. Who was involved in determining the need? Representatives from the community, the school district, many civic and business organizations, the ILk Chamber of Commerce, the (SCHS) Sherbume County Historical Society, The City of Elk River, and the local Churches were all involved in this project. Why is the solution suitable? The project helps promote civic awareness, encourages volunteers and helps promote tourism in Elk River and Sherbume County. Are others Cooperating? Yes!! Bankers, Civic orga~h,.~tions, Commercial retailers, and other entities are enthusiastically contributing to our CMC project. 3. PRO~ECT DESCRIPTION: A.) The grant addresses the stated goals and priorities of the TRC Foundation by helping to fund activities that directly enhance the Historical, Educational, Social and Cultural climate of the Elk River Community by providing activities which directly promote interest in the heritage of the community and by funding an organization that directly promotes other Human Service organizations such as (CAER) Community Assistance to Elk River with a food drive and the (RSVP) Retired Seniors Volunteer Program and the Earn to Learn Dist. 728 School program. B.) The 8rant money will be used to help defray the expenses of the festival. The overall goals ofthe event are to bring the community together and increase the educational awareness of the History of Elk River. The Rendezvous committee will be sending costumed Fur trader's into the classroom to educate the students on the early fur trading and early lifestyles of the community. The events committee is planning to honor Chas Babcock, Mirmesota's early highway commissioner and a pioneer of our modem Mghway system. Page 2 of 5 CE ID:2415521 APR 30'97 9:20 No.O01P.04 C.) Other Individuals, Groups or Organizations that will be assisting us in our efforts are as follows: ('Not a complete list) Individuals: (see membership llst) Groups/Organizations: The Sherbume County Fair Board. The Star News newspaper The Sherbume County Citizen newspaper. Q- 106 Radio, Princeton Civic groups: Lions, Eagles, Iaycees, Rotary Club, American Legion, VFW, Local Churches, School District # 728. (I-HP) Handke School Involved Parents Lake Orono Improvement Association Sherbume County Historical Society (SCHS) Elk River City Hall Elk River Police and Fire Departments Elk River Aris Council Retired Senior Volunteer Program (RSVP) Retail and Commercial establishments (too numerous to list them ail). D.) Staff'Members of the Elk River Heritage Festival, Inc. Ronald D. Wilkes, Chairman 500 Nettie DuBois, Treasurer 500 Don Heinzman, Events Chair, Publicity 500 Charlotte $trei/Sally Grabuski, Volunteers Co-Chair 500 ICurt Kraigness, (SCHS) Historical Tour Chair 500 Shelle Perleberg, Parade 500 Patti Swanson/Harlun Petcrson, Classic Car Show 300 Deb Coverston/Bill Lindberg, Rendezvous Co-Chair 500 Marsha Fredricks, Handke Involved Parents 40 Char Barder/Mar~o Foster, Concessions Co-Ch~ir 60 Dave Beauvais, (ERAC) Heritage Photo Shoot Chair 100 Tony Mikols, Silver Medallions 500 John Oliver, Model Railroad Show 60 Sandy Weicht, Lake Orono History Tour 100 Nettie DuBois, Trading Post Trading 40 hours hours hours Note: This is not a complete list. Times are approximate. Page 3 of 5 CE ID:2413521 APR 30'97 9:20 No.O01 P.05 4.) BUDGET: (Enclosed please find a copy ofthis years anticipated budget) l~xpenses: (ffandke Gym) Administration Advertising/Marketing Parade expenses Lumberjack Event Rendezvous Event Pest. Hqtrs & Services Historical Tours P, aft Contest Medallions (ceramic) Portable Toilets Garbage/Clean up Program/Entertainment/Arts/Events Model Train Show Classic Car Show Miscellaneous $'1,000.00 $*3,400.00 $*6,000.00 $*3,400.00 $'1,400.00 $ 500.00 $ 700.00 $ 500.00 $*1,100.00 $*I,000.00 $ unknown $'1,200.00 $ 300.00 $ 200.00 $ 500.00 Total Expenses: ..................................................... $21,200.00 Revenues: (based on last ye~s revenues & this years revenue estimates). Donations from CIVIC Organizations Donations from Business Organizations (1996) Donations from foundations: (1996) Medallion/Quilt Sales: (1996) Lumberjack Show revenues: (1997 est.) (based on ticket fee of' 1.00 per parson) Parade revenues (1996) $* 680.00 (based on parade fee of $50.00 for Commercial entries) Concession revenues: (1997 est.) $* 1,500.00 (based on concession fee of $75.00/day) (1996) $*2,650.00 $12,400.00 $ 850.00 $'1,725.00 $'1,200.00 Total Revenues: ........................................ $21,005.00 Page 4 of 5 CE ID:2415521 2PR $0'97 9:21 No.O01P.06 ~.) ATTACHMENTS: A.) Board of Dir,~:tor's Letter of Support for the Heritage Festival. (see attachment) B.) IRS Tax-Exempt Determination L,,~ter (see below) Per discussion with lames Duncan, Chairman of the (MC~O) Maple Grove Community Orga~i=~ttion, 501(c)(3) status is not required by the Federal or State government with certain non-profit organizations. Per our d/scus.s/on w/th Mr. Steve Borer of the Minnesota State Department of State for Non-Profit Organizations the filing ora $01(c)(3) is not required under the Following conditions: 1.) All members of the orga~iT*tion receive no remuneration, no payment or no salary for their services. 2.) The organization is a not for profit community organi:,~tion. 3.) The annual revenues for the organization do not exceed $2:5,000. 4.) The organization has established a charter document which explains thc structure and purposes or goals ortho organization. The Elk River Heritage Festival, Inc. is in compliance with all ofthe above requirements and therefore the establishment ora $01(c)(3) is not required. C.) Letters of Support from Local Organizations/Joint Venture (not applicable) D.) Copy of recent financial statement. (See attachment(s)). (~nelosed please find a copy of last years (1996) budget and last years gross revenues). Page 5 of 5 funds.elk CE ID:2413521 RPR 30'97 9:21No.O01P.07 1996 ELK ,~IVER HERITAGE FESTIVAL PI~£PAI~I:'D I O/3/g6 DEPOSITS Donations Parade Medailions/Quil Concessions 16,433.00 680.00 1,724.85 2,250.00 _~ 1,087.85 21,087.85 EXPEN:EF_S Admin. Banners Fundrai si ng Historical Tour Mktg/Advtsg Medallions Parade Past Images Rendezvous Sidewalk Ent. Sanitation Trading Post 623.52 1,746.52 501.00 684. 11 3,363.37 941.11 5,820.00 175.00 1,026.0 I 1,200.OO 840.00 150.00 17,070.64 17,070.64 Balance t 0/2/96 4017.21