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ResolutionNo1373_ GiftPolicies_Adoption_F_E GIFT POLICY 1 7/8/2024 POLICY FOR GIFTS TO THE CITY OF ROLLING HILLS Purpose: To provide guidelines for the City's acceptance of gifts in a responsible, ethical, transparent and accountable manner. This gift policy is prospective and does not apply retroactively to any gifts given to the City prior to the adoption of this policy. Further, this policy is subject to modification or termination by the City at any time. Types of gifts: Gifts may be offered only in the form of cash, services or personal property. Donations of real property are not subject to this policy. Any such proposed donation of real property will be evaluated individually. A “restricted gift” is a gift designated by the donor for a particular City department, location or purpose. The City shall not consider the acceptance of any restricted gift with an estimated value under $2000. An “unrestricted gift” is a gift without any limitations placed on its use by the City. For the purpose of this policy, the term "gift" includes, without limitation goods or services provided by a City contractor or vendor beyond that specified in its contract with the City. The City, except for good cause, shall not consider the acceptance of any non-restricted, non-cash gift with an estimated value under $1000. Procedure: The City Manager shall perform an initial evaluation of a proposed gift. Factors to be considered include, but are not limited to, the following: • Whether acceptance of the gift is in the City’s best interest and is consistent with applicable policies, ordinances, and resolutions; • Whether the acceptance of the gift would give rise to an appearance of impropriety; • In the case of a restricted gift, whether the gift obligates the City to make an immediate or initial City expenditure that has not been included in the approved City budget, and whether it may result in ongoing costs. • The City shall consider whether to accept a proposed gift at a City Council meeting as an item on its agenda for gifts exceeding an estimated value of $1000 or more. The staff report for the agenda item should discuss the staff's initial evaluation of the proposed gift. There is no need for staff to provide a recommendation to the City Council for each donation. • Gifts below an estimated value of $1000 may be accepted by the City Manager at the City Manager’s discretion and in accordance with this policy. The City Manager shall endeavor to notify the City Council either verbally at a City Council meeting or via written report of gifts received by the City. • Gifts to the City in no way entitle a resident or other donor to any greater benefit or different treatment than already provided to any other resident or donor. To avoid the appearance of impropriety, among other things, the City shall not accept gifts from or on behalf of any individual or entity who is in the process of obtaining discretionary approval from the City, or GIFT POLICY 2 7/8/2024 who applied for discretionary approval within 12 months prior to the proposed gift. In the event a donor seeks discretionary approval from the City within 12 months following City's acceptance of a gift, the City shall return the gift to the donor when possible. • All gifts shall become City property. • In the event a monetary restricted gift is provided to the City and the purpose is unable to be accomplished within 5 years, that monetary gift shall convert to an unrestricted gift that can be used for general public purposes. • Upon acceptance by the City Council, a letter or email of the acknowledgement of the gift shall be sent to the donor, signed by the mayor. • The City does not provide legal, accounting, tax or other such advice to donors. The City shall only provide to the donor a description of the gift, service or personal property given to the City. The donor shall be responsible for estimating any fair market value for services or personal property donated. The City makes no representation or warranty on the tax deductibility of any gift and directs any donor to consult their CPA, tax professional or other advisor on these matters. • The City will not accept anonymous gifts. All records of donations shall be subject to disclosure under the Public Records Act. Policy for Gifts to City Employees Gifts to individual employees: Compensation for employees performing their public duty is limited to salaries, fringe benefits and any personal satisfaction that employees may derive from doing a good job. Therefore, individual employees shall not accept any personal gifts or tips from anyone other than the City for the performance of acts within the regular course of duties. Gifts for the benefit of City employees: Edible gifts (e.g., gift baskets) or similar items are allowed but shall be made available to all employees. Alcohol is not allowed. Policy Administrative History: Adopted 7/8/2024