HomeMy WebLinkAboutCC 4 PUBLIC INFO INC. 08-20-84CONSENT CALENDAR
TO:
FROM:
S UB,J EC:T:
Mayor and City Council
Jeff Kolin, Recreation Superintendent
TUSTIN PUBLIC INFORMATION, INC.
RECOMMENDATION:
Authorize the Finance Director to transfer $7,300 from the Community Services
Department budget to Tustin Public Information, Inc., for mailing of Tustin Today.
FISCAL IMPACT:
Annual savings of $4,600.
BACKGROUND:
Non-profit tax exempt corporations receive substantially-reduced postage rates
for bulk mailings from the U.S. Postal Service. Staff and the City Attorney's
office have formed l'Tustin Public Information, Inc.", which has been recognized
by the Secretary of the State of California as a non-profit public benefit cor-
poration. Tustin Public Information, Inc., has been organized for educational
purposes, including the distribution of catalogues and brochures detailing
educational classes, lectures, seminars, and events in the City of Tustin.
The Board of Directors and officers of the corporation include Jeff Kolin, Presi-
dent; Royleen White, Vice President; Judi Ormsby, Secretary; Ron Nault, Chief
Financial Officer; and Loni Hamblin, Director. All members of the corporation's
Board of Directors serve without compensation~ The Corporation is awaiting re-
cognition from the State Franchise Tax Board and Internal Revenue Service as a
tax exempt organization.
A temporary postal permit has been obtained from the Postal Service; this allows
the corporation to mail at the lower non-profit rate pending receipt of tax ex-
empt status. The savings projected are substantial: 5.2~ per piece versus 11¢
per piece for regular bulk mail. The City currently mails 80,800 copies of
Tustin Today to City residents and businesses each year. This represents an
expenditure of $8,888 per year if mailed at the normal 11~ bulk rate. Non-profit
tax exempt organizations such as Tustin Public Information, Inc., mail at the
5.2~ rate which for 80,800 pieces translated to $4,201.60 per year. This means
a savings of $4,686.40 per year for the City.
The 1984/85 Budget contains $7,300 for mailing Tustin Today and assorted print-
ing, typesetting, and artwork costs. It is recommended that the $7,300 be
transferred to Tustin Public Information, Inc., which will then pay for mailing
Page 2
August 6, 1984
Tustin Today. Any surplus funds will be carried over to future years, thus
reducing next year's funding requirement.
An annual report of corporation activities will be submitted to the City Council
for review, including an independent audit of the corporation's books. Each
year, postage requirements will be estimated and requests for corporation funds
included in the regular City budget process.
Jeff ~,~ecreation Superintendent
JK:ps