HomeMy WebLinkAbout1999-01-04 City CouncilC ty
City of Palo Alto
Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JANUARY 4, 1999 CMR:104:99
SUBJECT: M1L AND MRS. FRED EYERLY GIFT TO THE CITY OF PALO ALTO
This is an information report and no Council action is required.
BACKGROUND
In 1995, Mr. and Mrs. Fred Eyerly made a gift of their Palo Alto home to the City. Under
the terms of the girl, the Eyerlys transferred ownership of their property to the City, keeping
a life estate for themselves until the death of the last.remaining spouse. At that time, the City
will sell the property and deposit the proceeds into a fund, which would be known as the
"Eyerly Fund." In accordance with the terms of the Eyerly Fund, the principal in the Fund
would not be touched and would be increased annually for inflation. In addition, the income
from the Fund, after expenses, would be distributed by the City annually as follows: 1) to
the City of Palo Alto, to recognize outstanding achievement of Utilities Department staff; 2)
to Avenidas (formerly the Senior Coordinating Council); and 3) to the Elizabeth F. Gamble
Garden Center. Finally, the terms of the Eyerly Fund provide that the Eyerlys may add to
the Fund in the future.
DISCUSSION
In September 1998, the Eyerlys notified the City that they have established a trust account
in the amount of $600,000. After 20 years, the assets of the trust account are to be added to
the City of Palo Alto Eyerly Fund. This Unique and generous gift represents a substantial
addition to Eyerly Fund, which will benefit the City of Palo Alto, Avenidas, and the
Elizabeth F. Gamble Garden Center.
RESOURCE IMPACT
When establishing the City of Palo Alto Eyerly Fund, Mr. and Mrs. Eyerly were sensitive to
the fact that the City does not have a "trust" department and worked with staff to ensure that
the administration of the Fund was not a burden to the City. The Eyerly Fund Agreement
CMR:104:99 Page 1 of 2
provides that the City shall be entitled to reasonable compensation for its administrative
costs, which would be payable out of the Fund prior to the annual distribution of income.
Accordingly, staff does not anticipate that this addition to the Fund would have a significant
fiscal impact on the City.
POI,ICY IMPLICATIONS ’
A gift of this magnitude is unique to the City, although governmental and charitable
organizations actively solicit gifts such as this a part of their fundraising efforts.
ATTACHMENT,
PREPARED BY: Melissa Cavallo, Assistant Director, Administrative Services
PROJECT COORDINATOR: Emily Harrison, Assistant City Manager
DEPARTMENT HEAD APPROVAL:
CARL YEATS;
Director,services
CITY MANAGER APPROVAL:e.h. "
Ci~ Manager
CC:N/A