HomeMy WebLinkAboutStaff Report 129-08City of Palo Alto
City Manager’s Report
TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
FEBRUARY 4, 2008
DEPARTMENT: ADMINISTRATIVE
SERVICES
CMR: 129:08
GIFT TO THE CITY FROM FRED S. AND MOYA 5I. EYERLY
RECOMMENDATION
This is an information report and no action is required.
BACKGROUND
On December 19, 1995, Council accepted a gift to the City from Fred S. and Moya 54. Eyerly of
their Palo Alto condominium located at 101 Alma Street, Palo Alto and approved an agreement
outlining terms of this unique and generous gift. Mr. and Mrs. Eyerly were both very active in
City and community affairs, including the Elizabeth F. Gamble Garden Center and Avenidas
(formerly the Senior Center). Fred Eyerly served on the City Council from 1975 to 1983 and as
the City’s Mayor in 1982. Under the terms of the Agreement, Mr. and Mrs. Eyerly deeded their
property to the City and kept a life estate for themselves until the death of the last remaining
spouse. At that time, the City would sell the property and deposit the proceeds into a fund to be
lcaown as the "Eyerly Fund." The income from the Eyerly Fund, after expenses, would be
distributed by the City annually as follows:
1.To the City of Palo Alto, to reco~zize outstanding achievement of Utilities Department staff;
To the Palo Alto Senior Coordinating Council of the Palo Alto Area, Inc. (now Avenidas);
mad
3.To the Elizabeth F. Ganable Ga’den Center.
Mr. Eyerly passed away in May of 2000, and Mrs. Eyerly passed away in June 2007.
DISCUSSION
The Agreement provides that at the death of the donors, the City take possession of the property
and list it for sale. Following Mrs. Eyerly’s death in June 2007, staff listed the property with a
major local real estate company following interviews with the 3 real estate agents who had
experience selling condominiums equivalent to 101 Alma. The property sold for $750,000 on
December 18, 2007. After the deduction of expenses such as asbestos removal, repainting,
129:08 Page 1 of 2
association dues and closing costs, staff anticipates the remaining amount to be invested in the
Eyerly Fund will be approximately $685,000. The Fund will be administered by the City in
accordance with the Agreement, whereby income from the fund will be distributed annually to
the City of Palo Alto Utility Department for employee achievement, Avenidas and the Gamble
Garden Center. Staff estimates that the Eyerly Fund will produce an am~ual income to each of
the three entities of approximately $10,000, thus continuing the significant contribution of Mr.
and Mrs. Eyerly to the community for many years to come.
RESOURCE IMPACT
The A~eement provides that the City shall be entitled to reasonable compensation for its
administration of the Fmad, which would be payable out of the Fund prior to the annual distribution
of income. Therefore, the gift will have no significant fiscal impact on the Ci~,.
POLICY IMPLICATIONS
This very generous gif~ from Mr. and Mrs. Eyerly has been accepted and acknowledged in
accordance with the City’s Policy and Procedures 1-18, "Gifts to the City." The proceeds fi’om
the sale of the property wil! be invested and administered in accordance with the Agreement.
ENVIRONMENTAL REVIEW
This is not a project for purposes of the California Environmental QualitT Act under Public
Resources Code Section 21065. Therefore, no environmental assessment is required.
PREPARED BY: .~ ,---
WILLIAM W. FELLMAN
Manager, Real Property
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
LALO
ve Services
E~ HARRISON
Assistant CiD’ Manager
cc:Mr. Fred Eyerly
Gamble Gardens
Avenidas
Utilities
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