Establishment of the GovAI Coalition as a Nonprofit Corporation.

The City Council is asked to adopt a resolution authorizing the City Manager or their designee to establish the GovAI Coalition as a nonprofit corporation. This action will allow the Coalition to transition from its current status as an affiliated group of agencies led by the City of San José into a formal nonprofit entity. This transition is intended to position the Coalition to better secure philanthropic funding and operate under a formalized governance structure, thereby reinforcing the City's leadership in advancing responsible AI use while minimizing the City's long-term operational and fiscal commitments.

The GovAI Coalition was formed in response to the rapid adoption of generative AI technologies, with the City of San José playing a key role in its development since November 2023. The Coalition has grown into an international network of over 3,000 members from more than 900 public agencies. To support its operations and transition, the City has received a $150,000 grant from the Packard Foundation. This grant will cover expenses associated with the formation, transition, and attainment of nonprofit status, including corporate filing fees and potential external legal services. The City Manager or designee is authorized to utilize these funds for these purposes.