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Scotts Valley board elects officers, then unanimously votes to dissolve Parks and Rec Advocates and transfer funds to city
Summary
At a reconstituted meeting, the Scotts Valley Parks and Recreation Associates elected officers and unanimously approved three motions to dissolve the Scotts Valley Parks and Rec Advocates, authorize directors to complete dissolution filings, and transfer remaining assets to the city for parks and recreation (staff reported roughly $100,000 remains, with about $70,000 earmarked).
Scotts Valley — The Scotts Valley Parks and Recreation Associates elected board officers and voted unanimously to dissolve the Scotts Valley Parks and Rec Advocates nonprofit and transfer its remaining assets to the city for parks and recreation.
Kendra Reed was chosen secretary and Stephanie Hill was elected treasurer; board member Bateman was nominated and elected chair after a temporary chair opened the meeting. Robert, a city staff member, told the board that minutes from prior meetings could not be located and that the board had been largely inactive since about 2020. "The board last met over probably over six years ago now," Robert said during a staff announcement.
The action followed a staff report from Dave, also city staff, who said program expenditures fell from more than $50,000 in typical years to under $15,000 for the year ended June 30, 2021, and that the state revoked the Advocates' tax-exempt status after a long period of nonreporting. "The city council voted on April 1st to go ahead and dissolve the board," Dave said, and staff recommended three motions to (1) dissolve the Scotts Valley Parks and Rec Advocates, (2) authorize appropriate directors and designees to take necessary actions to accomplish dissolution, and (3) distribute remaining assets to the city in accordance with the Advocates' articles of incorporation.
A board member who had earlier praised the Advocates' historical contributions moved to dissolve the nonprofit and to file the required forms with state agencies and the Internal Revenue Service; the motion was seconded and carried on a unanimous 3-0 vote. The board then unanimously approved the second motion authorizing directors and designees to complete dissolution tasks.
On the third motion, Robert reported that "there's a little over a hundred thousand dollars remaining in the funds" and that roughly $70,000 had already been dedicated toward reimbursement for the 2022 Fourth of July fireworks, leaving about $30,000 after anticipated state filing fees. The board approved a motion to distribute the remaining assets to the city of Scotts Valley for use in the city's parks and recreation programs; that motion also passed unanimously.
The board did not receive any public comment on the items; no members of the public were in the audience or online. With the three motions complete, and staff directed to file dissolution paperwork with the Secretary of State, the Franchise Tax Board, the Attorney General's office and the Internal Revenue Service as required, Chair Bateman adjourned the meeting.
Next steps: staff will complete and file the dissolution documents and effect the distribution of the Advocates' remaining assets to the city as specified in the Advocates' articles of incorporation.
