HomeMy WebLinkAboutLegislative Version Ordinance - 7/14/2022Ordinance No. _____ of 2022
(Updating Salt Lake City Corporation’s practices regarding donations to the City.)
An ordinance amending Chapter 3.60 of the Salt Lake City Code to update Salt Lake City
Corporation’s practices regarding donations to the City.
WHEREAS, Salt Lake City Corporation (the “City”) has previously enacted Chapter 3.60
Donations to the City with the intent of establishing processes, facilitating policies, and
providing guidance regarding the acceptance of donations to the City; and
WHEREAS, the City now desires to update Chapter 3.60 of the Salt Lake City Code to
provide guidance and structure regarding the acceptance of donations to the City; and
WHEREAS, the Salt Lake City Council has determined that adoption of this ordinance
promotes the best interests of the City;
NOW, THEREFORE, BE IT ORDAINED by the City Council of Salt Lake City, Utah,
as follows:
SECTION 1. That Chapter 3.60 of the Salt Lake City Code is hereby amended as
follows:
Chapter 3.60
DONATIONS TO CITY
3.60.010: PURPOSE:
3.60.020: SCOPE:
3.60.030: DEFINITIONS:
3.60.040: DONATION POLICY:
3.60.050: DONATIONS OF MONEY, CASH EQUIVALENTS, AND NEGOTIABLE
SECURITIES:
3.60.060: DONATIONS OF REAL PROPERTY:
3.60.070: NONMONETARY DONATIONS (EXCEPT REAL PROPERTY):
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3.60.100: [Reserved]
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3.60.080120: OWNERSHIP OF IMPROVEMENTS:
3.60.090130: DONATION AGREEMENT:
3.60.1040: DONATION ACKNOWLEDGMENT:
3.60.1150: TAX LIABILITY:
3.60.1260: USE OF EXCESS FUNDS:
3.60.1370: DAMAGED, LOST, STOLEN, OR WORN DONATIONS:
3.60.1480: REPORTS TO CITY COUNCIL:
3.60.1590: CONFLICTS OF LAW:
3.60.010: PURPOSE:
The purpose of this chapter is to establish policy and guidelines for acceptance of donations to
the city. Its provisions are intended to establish a review process that considers the intentions of
the donor, the needs and desires of the community, and city benefits and costs associated with
proposed donations, including long term costs of maintenance and care of donated property.
3.60.020: SCOPE:
A. Except as provided in subsection B of this section, the provisions of this chapter shall apply
to any donation made, or proposed to be made, to the city.
B. This chapter does not apply to:
1. A grant;
2. A donation consisting solely of volunteer labor
23. A donation governed by state or federal law; and
43. A sponsorship, naming right, or other similar arrangement concerning city owned
property.
3.60.030: DEFINITIONS:
For the purposes of this chapter the following terms, phrases, and words shall have the meanings
given in this section:
CASH EQUIVALENT: An asset that can be readily converted into a known amount of cash or
that can be exchanged for a specified value of goods or services in the same manner as an
equivalent value of cash.
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COMPENSATORY SERVICE WORKER: A person who performs a public service with or
without compensation for the cityan agency as a condition or part of the person's incarceration,
plea, sentence, diversion, probation, or parole.
DONATION: Anything (including multi-year contributions) other than a grant, that is
contributed to the city by a donor without receiving valuable consideration from the city. ,
having a value in excess of the applicable current minimum reporting amount set by the Internal
Revenue Service. It includes, but is not limited to, a building or structure, an endowment, an
public improvement, land, materials, money, a cash equivalent, a negotiable securityies, public
art, or volunteer labor paired with another type of donation, but does not include a contribution
or payment associated with a sponsorship, naming right, or other similar arrangement.
DONOR: An individual or organization that makes a donation to the city, including, but not
limited to, a trust, estate, firm, partnership, joint venture, club, company, joint stock company,
corporation, limited liability company, association, society, or any other group of individuals
acting together, whether mutual, cooperative, fraternal, nonprofit, or otherwise. "Donor" does not
include a compensatory service worker.
EXCESS DONOR FUNDS: Money, or another kind of donation that has been converted to
money, contributed by a donor to the city that is unexpended after completion of the purpose for
which a donation is usedmade.
GRANT: A monetary or non-monetary contribution received pursuant to a formal application
process and a formal award or any contribution received from a governmental entity
PARK AMENITY: An improvement that contributes to the betterment of a park, such as a
bench, play structure, picnic table, shelter, sports facility, or trail.
PUBLIC ART: A work of art displayed in a public place including a painting, print, sculpture,
statue, or mural.
PUBLIC IMPROVEMENT: An activity, including volunteer labor, that betters publicly owned
property, including land, a structure, materials and/or equipment, a park amenity, or public art.
NONMONETARY DONATION: _A donation to the city that cannot be classified as a donation
of money, a cash equivalents, a negotiable securityies, or real property.
SMALL CONTRIBUTION: A contribution having a value that falls below the then-current
minimum reporting amount set by the Internal Revenue Service.
VOLUNTEER: A person who donates service under the direction of a city official, employee, or
agent; without pay or other compensation except expenses actually and reasonably incurred as
approved by the city. "Volunteer" does not include a compensatory service worker.
VOLUNTEER LABOR: Work related to a donation provided by a volunteer under the direction
of a city official, employee, or agent, that advances or contributes to a city objective to construct
or maintain a public improvement.
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3.60.040: DONATION POLICY:
A. Salt Lake City encourages donations from individuals and entities that support programs and
services the city provides to the public. The city shall evaluate whether to accept a proposed
donation based on the provisions of this chapter and pertinent city policies and procedures. The
city shall have sole discretion to determine whether to accept or decline a proposed donation.
The intent of the city is to help donors reach their intended goals while at the same time taking
action consistent with the mission, goals, plans, resources, and limitations of the city as a whole.
B. A person who wishes to make a donation is encouraged to contact the recipient city
department to discuss the proposed donation and the process for review and acceptance thereof.
C. Subject to the provisions of this chapter and in compliance with any applicable law, the city
may accept a donation for the purpose of providing an public improvement on city property,
including an improvement constructed with volunteer labor. Any improvement shall be
completed in conformance with applicable city policy and ordinances, development
requirements, and other adopted standards.
D. A donation may be used for any public purpose, subject to the provisions of this chapter and
any applicable donation agreement. If it becomes impossible or impractical to administer the
donation in accordance with the wishes of the donor, an alternate purpose, which most closely
aligns with the donor’s intent, will be determined by the city.
E. If applicable, naming of donated property must conform to the city's naming policies.
F. The city may, before accepting a donation of real or personal property, require an appraisal
of the property.
GF. This chapter shall not be construed to create any right for an individual or organization to
make an public improvement on city property.
HG. The mayor, or the mayor's designee, in consultation with the finance department, is
authorized to establish policies and procedures related to donations that are consistent with this
chapter.
3.60.050: DONATIONS OF MONEY, CASH EQUIVALENTS, AND NEGOTIABLE
SECURITIES:
A. Donations of money, a cash equivalent and/or a negotiable securityies may be accepted by
the mayor or the mayor's designee in consultation with the finance department. A donation of a
negotiable securityies may be accepted when in the judgment of the mayor or the mayor's
designee, in consultation with the finance department, the proposed donation is in accordance
with applicable law and the proposed donation is either:
1. Not subject to conditions or specifications; or
2. A conditional donationSubject to conditions or specifications approved pursuant to
applicable provisions of this chapter.
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B. A nNegotiable securityies may be held or sold at a marketable rate and the proceeds of such
sale used consistent with any donor conditions or specifications and, if there are no such
conditions or specifications, in accordance with subsection C of this section or any other
applicable provisions of this chapter.
C. An undesignated and/or unconditional donation of money, a cash equivalent, or proceeds of
the sale of a negotiable securityies shall be delivered to the finance department and deposited in
an fund or account designated by the finance director or the director's designee.
D. Subject to the provisions of this chapter, if the city accepts a monetary donation for a public
improvement, it shall deposit and hold the donation for its intended purpose in a special donation
fund managed by the finance department.
3.60.060: DONATIONS OF REAL PROPERTY:
A. The city shall review a proposed donation of real property for:
1. Suitability for the intended use and potential for resale;
2. Any conditions that the donor may place upon the use of the property;
3. Potential environmental problems, including the presence of hazardous waste;
4. Probable maintenance costs;
5. Potential financial and legal liability to the city; and
6. Any other consideration that may affect the suitability of the donation.
B. The city may request from the donor an appraisal of the real property to be donated.
CA. Except as otherwise provided in subsection DB of this section, the mayor, or the mayor's
designee, in consultation with the finance department, may accept a donation of real property
that:
1. Is consistent with the policy and objectives of any applicable master plan;
2. Is free of any mortgage or liens against the property;
3. Does not create an unfunded financial liability for the city;
4. Does not have any hazardous waste or condition that would cause the city to become a
potentially responsible party as provided in the comprehensive environmental response
compensation and liability act of 1980, as amended;
5. Will be transferred to the city in conformity with applicable city ordinances and policies;
and
56. Is located within the city, the city’s annexation policy area, or the city’s watershed
protection area.
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DB. If the requirements of subsection AC of this section cannot be met, the mayor, or the
mayor's designee, in consultation with the finance department, may recommend to the city
council that the real property donation nevertheless be accepted, subject to any conditions the
mayor, or the mayor's designee, deems prudent. The city council shall thereafter determine
whether to accept or reject the proposed donation.
3.60.070: NONMONETARY DONATIONS (EXCEPT REAL PROPERTY):
The mayor, or the mayor's designee, may accept a nonmonetary donation if acceptance of such
nonmonetary donation is consistent with all applicable city code provisions and city policies. for
a public improvement (except real property), including, but not limited to, voluntary labor, a park
amenity, public art, and materials typically used by a city department.
B. A nonmonetary donation shall be subject to review and a recommendation from a board or
commission as may be required by this code or as may be requested by the mayor or the mayor’s
designee.
3.60.080: VOLUNTARY LABOR POLICY; LIABILITY:
A. The city council encourages the acceptance of volunteer labor to provide public
improvements and hereby declares its policy that volunteers should be used wherever possible.
The city council further declares that in weighing the benefit of using volunteers versus the risk
of liability to a volunteer, preference should be given to using volunteers.
B. Volunteers have liability coverage as provided in the volunteer government workers act, title
67, chapter 20 of the Utah Code Annotated, as amended, or its successor.
C. As a risk management measure, the mayor, or the mayor's designee, is encouraged to provide
training for volunteers who work on a public improvement project.
D. By October 30 of each year, the mayor, or the mayor's designee, shall provide a written
report to the city council detailing the type, number, and hours of volunteer activities for the
previous twelve (12) months.
3.60.090: EVALUATION GUIDELINES:
A. The city shall use the following guidelines, to the extent they are pertinent to a proposed
donation, to assess whether acceptance of that proposed donation is in the best interest of the city
as well as any other consideration that may be relevant in a particular case:
1. Consistency with the mission, policies, and master plans governing the city and/or a
particular department; and
2. Whether the proposed donation:
a. Improves an area of the city that may be deficient in public amenities;
b. Promotes conservation of historical and cultural aspects of the community;
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c. Has an educational component;
d. Promotes conservation of natural areas and open space where such preservation is
suitable, is contemplated by plans, or is otherwise desirable;
e. Provides a new or different experience for the public;
f. Promotes use of public spaces for a variety of interests such as special events, sports
tournaments, competitions, and other recreational opportunities, including both active and
passive recreation in a park or other area where such uses are suitable, are contemplated by
plans, or are otherwise desirable;
g. Is suitable for the purpose proposed;
h. Is compatible with the proposed location, if one has been identified, and other uses of
public space;
i. Complements, or is harmonious with, existing improvements and features in the area;
j. Contributes to, or detracts from, the aesthetic qualities of the surrounding area and other
improvements;
k. Is harmonious with the surrounding public or park setting in quality, scale, and
character;
l. Replaces aging, outdated, or unsafe infrastructure;
m. Is a traditional park or municipal amenity;
n. Reuses, rehabilitates, or restores an existing park or municipal feature;
o. Is financially feasible based on the cost of the proposed donation or project
implementation, including installation and ongoing maintenance, if applicable;
p. Covers all anticipated costs, including reasonably anticipated future costs;
q. Includes donor or other funds for ongoing maintenance and the cost of relocation and
removal, if necessary;
r. Is susceptible to wear and vandalism;
s. Is consistent with the technical requirements or design standards for installation of
improvements in a public place;
t. Creates any public safety or security issues or a potential danger to public health and
safety;
u. Creates a financial or other liability to the city;
v. Complies with applicable codes, including building codes and ADA requirements; and
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w. Is restricted or conditioned in any manner and the impact of those restrictions or
contingencies.
B. In addition to the above listed guidelines, if a proposed donation is a work of art, the city
shall also use the following guidelines to the extent they are pertinent to a proposed donation as
well as any other consideration that may be relevant in a particular case:
1. Recommendations from the Salt Lake council for the arts;
2. Quality of the artwork based upon a professional assessment of the work or a detailed
written proposal, drawing, model, or photograph;
3. Suitability of the theme of artwork to a public venue;
4. Appropriateness of the artwork to the site, when a particular site has been requested or
identified;
5. Appropriateness of the process for selecting the artist or artwork; and
6. Qualifications of the artist based on documentation of past work and the artist's
professional qualifications.
C. The level of maintenance and costs of relocation or removal may vary depending on the
nature of the proposed donation. In general, donors will be asked to contribute enough money to
cover reasonably anticipated long term costs of maintenance, relocation, and removal. If the
proposed donation requires a donation agreement, the city shall address those costs in the
donation agreement. The city may agree to take on future maintenance costs and shall use the
following guidelines, to the extent such guidelines are pertinent to the proposed donation, when
making such decision:
1. The community's need or desire for the donation;
2. Whether, and to what extent, the proposed donation provides new or diverse experiences
for community members and visitors;
3. The financial capacity of the donor to fund ongoing maintenance activities;
4. Suitability of the donation to the environmental conditions of public display;
5. Ease of maintenance and repair; and
6. Whether the annual maintenance cost is so low as to be negligible.
3.60.100: [RESERVED]
(Rep. by Ord. 37-2020, 2020)
3.60.110: PRIVATE CONSTRUCTION:
A. If construction of a public improvement is coordinated or contracted for by a donor or
provided by volunteers, the donor shall be responsible for complying with applicable federal,
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state, and local laws. The donor shall also bear the cost of necessary permits, approvals, project
management, design, installation, and manufacture of the donation unless these costs are
specifically accepted or waived by the mayor or the mayor's designee.
B. A contractor shall provide proof of compliance with the city's insurance requirements before
work may commence on any public improvement.
3.60.080120: OWNERSHIP OF IMPROVEMENTS:
Any donated improvement made on public property becomes city property and is subject to the
laws, policies, and procedures of the city.
3.60.090130: DONATION AGREEMENT:
A. Except as set forth in subsection E, Tthe city shall not accept a donation of money, a cash
equivalents, or a negotiable securityies having a value of one-hundred ten thousand dollars
($100,000) or more unless the donor enters into a donation agreement, the form of which shall be
approved by the city attorney or the city attorney's designee. The city also has the discretion to
require the execution of a donation agreement between the donor and the city before accepting a
donation of money, a cash equivalent, or a negotiable security having a value of less than one-
hundred thousand dollars ($100,000). Any donation agreement cannot take effect unless it is first
approved by the city attorney or the city attorney’s designee.
B. Except as set forth in subsection E, Tthe city shall not accept an in-kind donation having a
value of more than fiftyfive thousand dollars ($50,000) or more unless the donor enters into a
donation agreement, the form of which shall be approved by the city attorney or the city
attorney’s designee. The city also has the discretion to require the execution of a donation
agreement between the donor and the city before accepting an in-kind donation having a value of
less than fifty thousand dollars ($50,000). Any donation agreement cannot take effect unless it is
first approved by the city attorney or the city attorney’s designee.
C. Except as set forth in subsection E, Tthe city shall not accept a donation of real property
unless the donor enters into a donation agreement. Any donation agreement cannot take effect
unless it is first approved by the city attorney or the city attorney’s designee. , the form of which
shall be approved by the city attorney or the city attorney’s designee.
D. The city may enter into a donation agreement with a donor that provides a framework under
which the donor may make, under the agreement, multiple donations to the city over a specified
period of time. Such agreement does not need to identify the total number of donations to be
made and does not need to identify each donation with specificity. However, the parameters and
the framework the city and the donor will use to identify and approve each separate donation
must be set out in the agreement. Any agreement providing for multiple donations over a
specified period of time cannot take effect unless it is first approved by the city attorney or the
city attorney’s designee.
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E. The mayor, city attorney, and finance department director, or their respective designees, with
cause specified in writing, may jointly waive any of the requirements of this section with respect
to a particular donation.
3.60.1400: DONATION ACKNOWLEDGMENT:
When required by applicable law or internal revenue service regulations, the finance department
shall provide a letter to each donor that formally acknowledges the donation. The letter must
include a statement that because the city is subject to the provisions of the government records
access and management act, the city cannot guarantee anonymity of a donor.
3.60.1510: TAX LIABILITY:
The city shall make no representation or guarantee as to the tax implications of any donation
made to the city. Information provided by the city, its officials, employees, or agents in
connection with a donation is intended to be informational only and is not intended to be a
substitute for professional advice. Each donor is responsible for documenting the responsible for
assigning a monetary value of the donation for tax purposes.to the donation for tax purposes and
should obtain tax and financial advice from appropriate professionals.
3.60.1260: USE OF EXCESS FUNDS:
Any excess funds for which the donor has not provided a specific disposition in the donation
agreement shall be transferred to a city fund pursuant to the city's budget process upon the earlier
of either:
A. The expiration of five (5) years after the date the city took possession of the donation; or
B. The city's fulfillment of the purpose of the donation.
3.60.1370: DAMAGED, LOST, STOLEN, OR WORN DONATIONS:
A. The city is not obligated to replace any donation or improvement that is lost, stolen,
damaged, or worn.
B. Except as otherwise provided in a donation agreement, the city may remove any donated
public improvement for reasons including, but not limited to: safety, reasons, deterioration,
neglect, vandalism, or the city's inability to finance ongoing maintenance or repairs.
3.60.1480: REPORTS TO CITY COUNCIL:
Annually, after the close of the fiscal year, the finance director shall provide a report to the
council regarding donations received during the fiscal year.
B. Before a corresponding donation agreement is executed, the city council shall be informed of
any donation that would require a donation agreement under the criteria provided in section
3.60.1590: CONFLICTS OF LAW:
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If any provision of this chapter conflicts with a provision of an applicable state or federal law or
regulation, such law or regulation shall control.
SECTION 2. That this ordinance shall become effective on the date of publication.
Passed by the City Council of Salt Lake City, Utah, this _______ day of
________________, 2022.
______________________________
CHAIRPERSON
ATTEST:
______________________________
CITY RECORDER
Transmitted to the Mayor on __________________________.
Mayor’s Action: _____Approved. _____Vetoed.
______________________________
MAYOR
ATTEST:
____________________________
CITY RECORDER
(SEAL)
Bill No. _______ of 2022.
Published: ____________________.
Salt Lake City Attorney’s Office
Approved As To Form
Date:____________________
By:_________________________
Jaysen Oldroyd, Senior City Attorney