CC 02-07-23 Item #13 Supplemental Memo to Council Questions Att 10 - CC Resolution No. 17-102 Establishing a Policy for Accepting DonationsRESOLUTION NO. 17-102
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ESTABLISHING A POLICY FOR ACCEPTING DONATIONS
WHEREAS, Government Code Section 37354 permits the City Council of a City to
accept or reject any donation, gift, bequest or devise (hereinafter "Donation") made to or for
the City for any public purpose, and further empowers a City Council to hold and dispose of
such property and funds for such uses as are prescribed in the terms of the Donation;
WHEREAS, if the terms of a Donation do not prescribe or limit the uses to which the
property or funds received or their income or increase may be put, Government Code Section
37355 permits a City Council to prescribe the designated uses of said Donations;
WHEREAS, the administration of the City's programs and activities occasionally
provide opportunities for the City to receive Donations of property or funds;
WHEREAS, the Cupertino City Council wishes to establish a policy setting forth the
circumstances under which Donations may be accepted, and the rules and protocols to be
followed by City staff and potential donors;
WHEREAS, the experience of the City is that contributions are made under a variety of
circumstances, including those received anonymously, with restrictions as to their use, and in
other cases unrestricted as to their use and purpose;
WHEREAS, the timely acceptance, use, and handling of Donations is a critical
component of a program involving contributions, and the City wishes to encourage Donations
and the administration of City programs that occasionally provide opportunities to receive
Donations;
WHEREAS, the City Council further wishes to provide for the effective and legally
sufficient means to abide by Donor intentions without compromising the City's ability to
manage resources and deliver services;
WHEREAS, the Cupertino City Council finds and determines that the above recitals are
true and correct and material to the adoption of this Resolution.
Resolution No . 17-102
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NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino
adopts and approves the Donation Policy attached and incorporated herein by this reference,
as the official donation policy of the City of Cupertino.
PASS ED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino
this 17th day of October, 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Members of the City Council
Paul, Chang, Scharf, Sinks
None
Vaidhyanathan
None
APPROVED:
Grace Schmidt, City Clerk
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Resolution No. 17-102
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I. PURPOSE
CUPERTINO
DONATION POLICY
This policy establishes the Cupertino City Council's policy for accepting donations
and provides guidelines to govern the management and disposition of donations.
II. BACKGROUND
Donations of every type are offered to the City of Cupertino (City) for general or
specific purposes. This policy establishes uniform criteria and procedures for
accepting donations and determining whether the City has adequate resources to
administer the donations.
III. SPECIFIC OBJECTIVES
1. To establish an effective and efficient way to manage donations and provide
guidelines to donors and City staff;
2. To generate revenue to fund or supplement new and existing programs and
activities for the benefit of City and its residents;
3. To work with individuals, organizations and non-profits who support City's
mission and goals.
IV. DEFINITIONS
For purposes of this policy, the following terms shall mean as follows:
1. Donation: An offer by a donor of any tangible or intangible item which the
City is prepared to accept under this policy and guidelines. This includes a
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monetary ( cash) contribution, endowments, personal property, real property,
financial securities, equipment, in-kind goods, services and any other asset for
which the donor has not received any goods or services in return.
2. Donor: An individual or legal entity making a Donation to the City.
3. Restricted Donation: A donation restricted by the Donor for a particular
purpose, program, location or City department.
4. Unrestricted Donation: A donation without any limitations imposed on its
intended use and which the City can use for any public purpose.
5. Park and Public Improvement Donation: Real property or items, such as
drinking fountains, tables, benches, and equipment that are traditionally
intended to improve public areas in parks, in or around public buildings,
streets, walkways and trails.
V. TYPES OF DONATIONS
1. Donations may be from a single individual, group, organization, business,
corporation, or anonymous sources.
2. Donations may be restricted or unrestricted.
3. Donations may be offered in cash, financial securities, or personal property.
4. Donations of real property or any estate in real property may only be accepted
as prescribed by state law, including Government Code section 27281, if
applicable.
5. The following are subject to other laws or policies and are not governed by this
Policy:
a. Donations of public art are subject to the General Guidelines for the
Selection of Public Art, Resolution No. 05-040.
b. Sponsorships, including personal and financial support for a City event
are governed by the City's Sponsorship Policy.
c. Contributions intended to benefit a City elected official, appointed
official, or employee are governed by state and federal laws.
d. Land, real property, concessions, appurtenances, rights of way, street
improvements, easements and the like, which are obtained under City
authority through regulatory means, negotiations, or as part of a public
improvement project, a development project or agreement.
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VI. AUTHORITY TO ACCEPT/REJECT DONATIONS
The City at all times shall have the right to accept or decline any Donation, at its sole
discretion. Unless otherwise required by federal, state, or local law the City Council
authorizes as follows:
1. Donations of any kind, restricted or unrestricted, which are valued above
25,000 must be presented to the City Council for approval and acceptance,
pursuant to a resolution.
2. The City Council delegates the authority to approve and accept Donations
valued at or below $25,000 to the City Manager.
3. The City Manager is authorized to delegate authority to accept Donations
valued at or below $10,000 to the Director/Head of the Department for which
the donation is intended.
All Donations are subject to the City Council's budget appropriation rules and must
support programs and activities established by or supported by the City.
VII. DONATION EVALUATION GUIDELINES
The following criteria should be considered in evaluating Donations and determining
whether City should accept or reject said Donations.
1. Donations must be consistent with City interests and support a public purpose;
2. The fair market value of non-monetary donations;
3. Whether the net benefit of a donation outweighs the cost to the City. Net
benefit includes all lifecycle costs of ownership, maintenance, repair, clean-up,
administration, and the liability, risk, and expense th.at may be associated with
the donation;
4 . Donations may not be used to implement new programs or services that are
ongoing, unless the City Council approves the necessary funding to cover the
costs of initiating and sustaining the new program or service;
5. Real and projected costs should be considered when a donation requires an
immediate or initial expenditure, matching donations, or supplemental
funding;
6. Potential costs and liabilities should be considered for donations that exclude
indemnification, insurance, bonding, or other warranties that the City would
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normally receive or require through the procurement process;
7. Consistent with state law, real property will be evaluated based on its physical
condition, market value, and any claims, liens, or encumbrances clouding title
to the property or reducing its value; and
8. Park and Public Improvement Donations and similar physical items must meet
warranty conditions and City standards, if any, to ensure a long life as well as
resistance to the weather, wear and tear, and possible vandalism. These
donations must cover the cost of purchase, installation, and basic maintenance for
the life cycle of the accessory, unless otherwise agreed by the City. The City
reserves the right to modify, remove, or relocate these items, as appropriate.
VIII. DONATION FORMS AND AGREEMENTS
All donors are required to submit the Standard Donation Form to the City Manager's
Office or, in the case of a department-specific donation valued at or below $10,000, to
the appropriate department head. The City Manager's Office will be responsible for
drafting the Standard Donation Form.
Donations requiring Council approval/acceptance may require a donation agreement
outlining the respective obligations of the donor and the City. Restricted Donations
may also be subject to an agreement if either the donor or the City deem it necessary
or appropriate.
The City Manager's Office will review all donation agreements which, at a minimum,
should include:
1. Contact information of the donor and a designated representative;
2. The type, amount, and value of the donation;
3. The purpose and any use restrictions for the donation, if any;
4. Appropriate recognition of the donor, if desired; and
5. Waiver, Release, and Disclosure provisions outlining the procedure the City
will follow to handle restricted donations that cannot be implemented.
IX. DONOR RECOGNITION GUIDELINES
In determining the appropriate recognition for a Donor, the following guidelines apply:
1. City will provide Donors an acknowledgement of acceptance of the donation.
2. No City building, facility, structure, equipment or furnishing can be named after a
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Donor.
3. The City Council may recognize a donation by a plaque affixed to the appropriate City
building, facility, structure, equipment or furnishings . The wording, size, type and
location of the plaque shall be determined on a case by case basis.
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