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HomeMy WebLinkAbout4.06 Gifts to City CITY OF DUBLIN • AGENDA STATEMENT CITY COUNCIL MEETING DATE: August 28, 1989 SUBJECT Acceptance of Gifts to City - Report by Recreation Director Diane Lowart EXHIBITS ATTACHED A . Memorandum from Assitant City Attorney RECOMMENDATION Accept Gifts and Direct Staff to Prepare a Formal Acknowledgement to Donor v FINANCIAL STATEMENT: To date $1 , 205 has been received in cash contributions -. DESCRIPTION In recent months , the City ' s Recreation Department has received cash contributions from service clubs or through fundraisers which are earmarked to purchase specific equipment . They are as follows : Amount Purpose Source $505 Purchase of indoor/outdoor Fundraiser by parents of climbing equipment for use preschool participants in the Preschool Program $200 Bookcase for Dublin Senior Dublin Women ' s Club Center $500 Glass Display Case for Rotary Club of Dublin Senior Center Prior to formal acceptance of these gifts , the City Attorney was asked to advise staff on a procedure for acceptance of gifts of either cash contributions or donations of fixed assets . In the attached memorandum from Assistant City Attorney Elizabeth H . Silver , she states that pursuant to Government Code Section 37354 , it is recommended that all contributions be formally accepted by the City Council . Further she states that the City Council is under no obligation to accept any gift but may do so if it elects to do so . As the gifts to the Recreation Department previously described are desirable , it is recommended that the City Council accept these gifts and direct staff to prepare a formal acknowledgement to the donor . COPIES TO : ITEM NO . MEYERS, NAVE, RIBACK &WEST MICHAEL R.NAVE A PROFESSIONAL LAW CORPORATION PENINSULA OFFICE STEVEN R.MEYERS 1220 HOWARD AVE..SUITE 250 NATALIE E.WEST GATEWAY PLAZA ELIZABETH H.SILVER 777 DAVIS STREET,SUITE 300 BURLIN - 94010-4211 (4 MICHAEL S.RIBACK SAN LEANDRO,CALIFORNIA 94577 (4(55 1) 4 8 342-00 FAX(4155348- )342-0888 MOLLY T.TAM! (415)351-4300 ANNE E.MUDGE FAX(415)351-4481 MARIN OFFICE MICHAEL F.RODRIQUEZ 1202 GRANT AVE-,SUITE E NOVATO,CA 94945 OF COUNSEL MEMOR.,NDUM (415)892-8878 THOMAS F.BERTRAND 1 REPLY TO: TO: Phillip S. Molina, Finance Director FROM: Elizabeth H. Silver, Assistant City Attorney RE: Gifts to City • DATE: August 14, 1989 By letter of August 7, 1989, you have asked several questions regarding a cash contribution which was recently presented to a city department head with the understanding that the money would be used for a specific purpose. Following are my responses to the questions you have asked. 1. Is the City required to accept a cash contribution? The City is not required to accept a cash contribution or any other- gift. 2 . Must the contribution be received by or formally accepted by the City Council? All gifts must be accepted, if at all, by the city council. Government Code section 37354 . 3 . Must the City use money for the purpose that it was donated? If a gift is made to the city, subject to certain restrictions, and it is accepted by the city council, the gift cannot be used for a different purpose. Government Code section 37354; 45 Cal.Jur. 3d, Municipalities, section 285; Hall v. Fairchild-Gilmore-Wilton Co. , 66 Cal.App. 615, 227 Pac. 649 . 4 . What obligations does the City have to make up short falls between amounts contributed and actual costs? If a gift is accepted for a specific purpose and it is not sufficient to fund the program or item in question, the City must use other city funds to make up the difference or hold the money contributed until the income therefrom is adequate for the specific purpose. • Phillip S. Molina, Finance Director Re: Gifts to City August 14, 1989 Page 2 5. Is the City re uired to accept a contribution of an asset or other than cash: i.e. a fixed asset such as an old truck? As indicated above, the City Council is not obligated to accept any gift but may do so if it elects to do so. 6. What limitations can the City place on the acceptance of an in-kind contribution. For example, if the swim club offered to donate their time for construction if the City paid for the material cost to upgrade the swimming pool deck? Again, the City is not required to accept any gift, including a contribution of labor. If it does accept such a contribution which is conditioned upon a city contribution of funds, the City will be committed to expending the funds if the contribution of labor is made. In conclusion, the recent gift should be returned to the donor unless it is accepted by the City Council. MEYERS, NAVE, RIBACK & WEST gd-5 Elizabeth H. Silver Assistant City Attorney EHS:dp mnrw\114\memo\gifts.ehs