HomeMy WebLinkAbout02-19-2019 Item 10 - Duvall Trust Disbursement Department Name: Admin
Cost Center: 1001
For Agenda of: February 19,2019
Placement: Consent
Estimated Time: n/a
FROM: Greg Hermann, Interim Deputy City Manager
SUBJECT: RESOLUTION TO APPROVE DISBURSEMENT OF BEQUEST FOR THE
MARY JANE DUVALL TRUST
RECOMMENDATION
Approve a Resolution (Attachment C) authorizing the disbursement of bequest to the Museum of
Art in accordance with the terms of the Mary Jane Duvall Trust.
DISCUSSION
In 1973, the San Luis Obispo City Council approved Resolution 2516, 1973 Series (Attachment
A) accepting a bequest from Mary Jane Duvall and appointing Mayor Ken Schwartz as Trustee
of the fund. The amount of the bequest was $55,000.
The bequest has several stipulations including that the funds are to be used near the creek area in
Downtown for the beautification of the City. The Resolution also specifies that former Mayor
Ken Schwartz has sole authority (with the exception of his late wife) to direct how the funds are
to be used.
Former Mayor Schwartz has recently contact ed the City and requested t hat all remaining funds
from the account be provided to the Museum of Art (Attachment B) to assist in their capital
campaign. The current balance of the trust is $161,532. The resolution (Attachment C) would
direct the remaining ba lance to be disbursed as directed and the fund closed.
Policy Context
The account is kept in a fiduciary fund and administered by the City’s Finance Department.
Since the fund was formed by minute order, it must be resolved by the same action and the
Council must take action to appropriate and release the funds.
Public Engagement
This item is on the agenda for the February 19, 2019 City Council meeting and will follow all
required postings and notifications. The public may comment on this item at or before the
meeting.
CONCURRENCE
The Finance Department and City Attorney’s Office concur with the recommendation.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: n/a
Funding Identified: No
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund 0
Stat e
Federal
Fees
Other:
Total
There is no direct fiscal impact in approving the disbursement of the bequest. The City reported
on the fund balance each year through its annual audit and comprehensive annual financial
report. Funds were only disbursed upon request from former Mayor Schwartz. Upon final
disbursement, the fiduciary fund will be closed.
ALTERNATIVES
1. The City Council may alter the request. This is not advisable given the legal agreement
governing the use of the trust’s funds.
2. The City Council may deny the request. This is not advisable given the legal agreement
governing the use the trust’s funds.
Attachments:
a - R2516- Accepting bequest and appointing Trustee - Duvall
b - Schwartz Duvall Trust - Signed
c - Duvall Trust Dissolution Resolution DRAFT
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R ______
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, TO DISTRIBUTE THE REMAINING BALANCE
IN THE MARY JANE DUVALL TRUST ACCOUNT TO THE SAN LUIS
OBISPO MUSEUM OF ART
WHEREAS, in 1973, Mary Jane Duvall who was a former City employee and served as
the secretary to the Mayor for former Mayor Ken Schwartz, requested upon her passing that all of
her remaining assets be liquidated and transferred to the City; and
WHEREAS, on October 15, 1973, the San Luis Obispo City Council approved Resolution
No. 2516 (1973 Series) entitled, “A Resolution of the Council of the City of San Luis Obispo
Accepting Bequest to City and Appointing Trustee in Accordance with the Terms of Said
Bequest,” formally establishing the Mary Jane Duvall Fee Account (“the Duvall Account”) with
the City; and
WHEREAS, Resolution No. 2516 appointed former Mayor Ken Schwartz as the trustee
of the Duvall Account and the bequest and provides that the funds are to be used near the creek in
Downtown for the beautification of the City; and
WHEREAS, On January 10, 2019, Former Mayor Schwartz, acting as the Mary Jane
Duvall Trust Trustee, has requested that all remaining funds from the trust be provided to the San
Lu is Obispo Museum of Art to assist in their capital campaign; and
WHEREAS, the current value of the trust is $161,532.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. That all remaining funds in the Duvall Account are hereby appropriated and
to be donated to the San Luis Obispo Museum of Art for the express purpose of funding their
capital campaign.
SECTION 2. The Duvall Account is hereby closed.
Upon motion of _______________________, seconded by _______________________, and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
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Resolution No. _____ (2019 Series) Page 2
R ______
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo , California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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