Request for City Council Committee Action …

              Request for City Council Committee Action
                    from the Department of BIS

Date                   November 2, 2006

To:                    The Honorable Paul Ostrow, Chair, Ways and Means Committee

Subject:               Digital Inclusion Task Force Request for Approval of Minneapolis
                       Foundation as Fund Agent and Determine the Elected Official to
                       Represent City of Minneapolis on the Interim Advisory Board

Recommendation Approve selection of Minneapolis Foundation as fund agent. Select
               an elected official to serve on the Interim Advisory Board.

Prepared by            Catherine Settanni

Submitted by           Karl Kaiser         __________________________, 673-3910
                                               Chief Information Officer

Approved by            Steven Bosacker __________________________________
                                             City Coordinator

Presenter in Committee                      Karl Kaiser

Policy Review Group                         __X__ Not Applicable

Permanent Review Committee (PRC) Approval ­ Not Applicable

Financial Impact:      Not applicable


       Financial Impact (Check those that apply)
       _X_   No financial impact (If checked, go directly to Background/Supporting Information
       ___   Action requires an appropriation increase to the Capital Budget
       ___   Action requires an appropriation increase to the Operating Budget
       ___   Action provides increased revenue for appropriation increase
       ___   Action requires use of contingency or reserves
       ___   Other financial impact (Explain):
       ___   Request provided to the Budget Office when provided to the Committee Coordinator
Background/Supporting Information
The Digital Inclusion Task Force, working with the Minnesota Council on Foundations,
developed an RFP to solicit proposals from community foundations to manage the Digital
Inclusion Fund. The RFP asked respondents to address how the Digital Inclusion Fund might
support local non-profit organizations in their efforts to provide technology access and literacy
programs serving low-income, new immigrant, displaced worker, senior and new-technology
users. The RFP asked for the foundations' history regarding technology funding and sought
answers to the following questions:

   ·   What are the foundation fees for managing such funds?
   ·   Are support services and technical assistance available?
   ·   How does the foundation manage third-party funds in terms of community participation
       and inclusion (process)?
   ·   What kind of return on investments does the foundation typically earn on fund assets?
   ·   How will the foundation work with the city and the Digital Inclusion Task Force to
       establish the funds' criteria and include community members in priority setting and
       funding decisions?

On Friday, October 20, 2006 the Digital Inclusion Task Force met to discuss how best to
manage anticipated funds resulting from the Wireless Minneapolis/ Community Benefits
Agreement between U. S. Internet and the City of Minneapolis.

At this meeting, representatives from the Minneapolis Foundation presented an overview of their
capabilities and the recommended approach they would utilize to work with the Digital
Community Advisory Board, and its steering committee, to both develop fund guidelines and
oversee re-granting of Digital Inclusion Funds to local non-profit organizations. Prior to the
October 20th 2006 meeting, conversations were also held with the Headwater's Fund to discuss
their capabilities and recommendations.

The meeting began with a closed Digital Inclusion Task Force discussion to discuss agenda
items and generate ideas and questions related to the selection of a fund management partner.
At the completion of this discussion, Minneapolis Foundation representatives were invited to
present to task force members.

Minneapolis Foundation Vice President of Development, Stuart Applebaum, answered task
force members' questions regarding financial, legal and management issues related to a Digital
Inclusion Fund, and Joanne Walz, Minneapolis Foundation Program Officer, talked about the
history of community involvement and successes associated with several other funds managed
by the Minneapolis Foundation.
Following this presentation, Task Force members continued their closed door discussion and
voted unanimously to recommend the Minneapolis Foundation as the fund management
partner, and with City of Minneapolis approval, to begin working with their Program Officers to
develop fund guidelines. These guidelines will be based on community input gathered during
outreach efforts related to the wireless initiative, and the Foundation will be obligated to honor
these guidelines into the future, regardless of who serves on the advisory board.

The Digital Inclusion Task Force recommends the creation of an Interim Advisory Board, to be
comprised of twelve (12) members of the original Digital Inclusion Task Force and four (4)
additional selected participants. Several community members who participated in the Digital
Inclusion Coalition roundtable meetings have also asked to be included on this interim board.

In addition, the Task Force recommends the inclusion of one elected official or other City of
Minneapolis representative, as well as one representative from U. S. Internet, to serve on this
interim advisory board to help develop the fund guidelines, and establish a process for selecting
members of the Digital Community Advisory Board which may be drawn from members of the
Interim Advisory Board and/or the community at large.

Since several City Council Members have expertise with both the wireless initiative and
community benefits agreements in general, we invite the Council to recommend a
representative to this board.

The Task Force will meet monthly beginning in mid-November, and finalize fund guidelines by
May 1, 2007. In order to facilitate the next steps, the Digital Inclusion Task Force respectfully
request the City Council to approve the recommendation of the Minneapolis Foundation as the
fund management partner; approve the attached or amended list of recommended Interim
Advisory Board members; select and approve additional representatives; and authorize the
Interim Advisory Board to begin its work.

Current Interim Advisory Board Members

Daniel Gumnit- Intermedia Arts
Jose Y Diaz- Latino Economic Development Center
Sarah Koschinska-Project for Pride in Living
Malik Bush-Phyllis Wheatley Center
Tovah Flygare-Central Labor Union
Rae Montgomery- U of M Extension
Sheldon Mains- Mpls Libraries
Rick Birmingham-MAP for Non Profits
Mark Siegel-Disabilities Services, MDHS
Kathy O'Conner- United Way
Nan Miller-Office of Family Involvement, Minneapolis Public Schools
Kurt Kimber- Community resident
John Richard- Pillsbury United Communities
Catherine Settanni, Community Technology Empowerment Project