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HomeMy WebLinkAbout2.e. Donation PolicyCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION COMMITTEE OF THE WHOLE DATE: October 10, 2001 AGENDA ITEM: Donation Policy AGENDA SECTION: Discussion PREPARED BY: Thomas D. Burt, City Administrator AG `} ,s 2 J �S ..a ATTACHMENTS: Donation Policy, Letter from City APPROVED BY: Attorney V The Council has directed banners in the commercial districts and the use of donations be discussed at the worksession. I asked the City Attorney to review the City's current copy of the donation policy and his letter with comments for change is attached. NOTES: C H A R T E R E D 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337 -9300 telephone (612) 337 -9310 fax hitp://www.kennedy-graven.com CHARLES L. LEFEVERE Attorney at Law Direct Dial (612) 337 -9215 email: clefevere @kennedy - graven.com September 25, 2001 Mr. Tom Burt City Administrator City of Rosemount 2875 145' St. W. Rosemount, MN 55068 RE: Acceptance of Private Donations Dear Tom: SEP 2 3 2001 You have asked for my general comments on the acceptance by the City of private donations. I have also reviewed the City's donation policy, which was forwarded to me by Jeff May. Minnesota law authorizes the acceptance of gifts by cities in Minnesota Statutes, Sections 465.03 and 465.04, which provide as follows: 465.03 Gifts to municipalities. Any city, county, school district or town may accept a grant or devise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the du ioi. ivuiililig heieiri shall authGi.ZC such acceptance or use for religious or sectarian purposes. Every such acceptance shall b e_bv_ re solution of th e -R-overnin.iz bodv adopted by a two- thirds maioritv of its members, expressing such terms in full. [underlining added] 465.04 Acceptance of gifts. Cities of the second, third, or fourth class, having at any time a market value of not more than $41,000,000, exclusive of money and credits, as officially equalized by the commissioner of revenue, either under home rule charter or under the laws of this state, in addition to all other powers possessed by them, hereby are authorized and empowered to receive and accept gifts and donations for the use and benefit of such cities and the inhabitants thereof upon terms and conditions to be approved by the governing bodies of such cities and such cities CLL- 203501 v 1 RS215 -1 c Mr. Tom Burt September 25, 2001 Page 2 of 3 are authorized to comply with and perform such terms and conditions, which may include payment to the donor or donors of interest on the value of the gift at not exceeding five percent per annum payable annually or semiannually, during the remainder of the natural life or lives of such donor or donors. [underlining added] Section 465.03 relates specifically to real or personal property (i.e. not cash). It would seem that acceptance of real or personal property under the authority of this section requires the City Council to accept it by a resolution adopted by a two- thirds vote of the Council. For reasons that I do not understand, Section 465.04 does not require a resolution or a two - thirds vote and is not specific as to the type of property that cities may accept as gifts. Therefore, under Section 465.04, arguably a city could receive a gift of real or personal property without a resolution adopted by a two - thirds vote of the council. However, because the receipt of tangible property and real estate may be complicated and expose the City to costs to maintain and preserve the property, it is probably advisable to have the City Council accept such a donation by resolution adopted by a two- thirds vote, particularly if there are terms or "strings" attached to the donation. Therefore, I would recommend that in the case of donations other than cash, the City Council adopt a resolution accepting the donation. Apart from the legal requirements, it may be a good idea to have such a formal and public acceptance of such gifts to acknowledge the generosity of the donor. Cash may be accepted by the City under Section 465.04. As noted above, no resolution or extraordinary majority is required. However, it does require that the City Council act to approve any "terms or conditions" attached to the gift. If no strings are attached to the gift of cash, and the use of the cash is not limited by the donor in any way, I believe that the donation may be accepted without action by the City Council. The only reason why the City Council might wish not to authorize staff to accept such contributions as a routine matter is the possibility that the City may find that it has accepted donations from individuals or organizations where such acceptance is politically embarrassing. Apart from this political question, it seems to me that the City could authorize staff to receive all gifts of cash Orl2rc a �ilt ci1.id' ons as o t 11 use o� the cash. In some cases, cash is contributed with strings or conditions attached. I would recommend that such "terms and conditions" be approved by the City Council as required by Section 465.04. However, if the City Council wishes to do so, I see no reason why the Council could not adopt a policy "pre- authorizing" acceptance of cash donations subject to stated limitations. For example, the City Council might authorize the receipt of cash contributions (possibly with a limitation of a stated number of dollars, above which City Council authorization would be required) for such stated purposes as DARE, Leprechaun Days, specified police department equipment such as Kevlar vests, specified fire department equipment such a thermal imaging devices, and the like. The current donation policy of the City does not address these issues, although it is implied that City employees are authorized to receive a donation. Therefore, I would recommend that the CLL- 203501v1 RS215 -1