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Title:
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Acceptance of a Bequest to the City of Culver City Senior Center by Mrs. Gladys L. Paetzold and Discussion and Direction Regarding the Appropriate Manner in which to Use these Funds.
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City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council accept a bequest to the City of Culver City
Senior Center by Mrs. Gladys L. Paetzold and discuss and provide direction to staff
regarding the appropriate manner in which to use these funds.
BACKGROUND:
Recently, Mrs. L. Gladys Paetzold, a long-time, active member of the Culver City
Senior Center and the Retired and Senior Volunteer Program (RSVP) passed away,
leaving a bequest to the Culver City Senior Center in the amount of $166,423.35
(“the Paetzold bequest”). Staff observed the joy Mrs. Paetzold experienced when
working with the volunteers in the RSVP Wednesday Work Project (Mailing Group)
where she was responsible for preparing coffee and serving donuts to the
approximately 100 members of the group each week. Mrs. Paetzold contributed
almost 3,000 lifetime hours to RSVP, the majority of which were invested by
assisting at the Wednesday Work Project.
DISCUSSION:
The only stipulation of the Paetzold Estate is that the funding be used for any project
that benefits the Culver City Senior Center, as long as the funds are not used for
Meeting Date: 12/10/07 Item Number: A-1
AGENDA ITEM: Acceptance of a Bequest to the City of Culver City Senior Center
by Mrs. Gladys L. Paetzold and Discussion and Direction Regarding the
Appropriate Manner in which to Use these Funds.
Contact Person/Dept.: Bill La Pointe,
PRCS Director ; Crystal Alexander, City
Treasurer
Phone Number: (310) 253-6655; (310)
253-5850
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master Notification List (12/05/2007)
Department Approval: Bill La Pointe,
Director of Parks, Recreation and
Community Services (12/04/07).
City Attorney Approval:
Carol Schwab (by H. Iker) (12/05/07)
Fiscal Impact Review:
Marlee Chang (12/05/07)
City Manager Approval:
Jerry B. Fulwood (12/05/07) City of Culver City, California
City Council Agenda Item Report
maintenance and/or operational costs. Staff and the Paetzold family have conferred
regarding the most appropriate uses of the Paetzold bequest and are submitting the
following suggestions for Council consideration. That the funds be used as a(n)
1. ENDOWMENT: The entire sum could be set aside as an endowment, with
annual interest from the endowment to be used in the following ways (examples
follow):
a. A new coffee cart for the Senior Center, but especially for the Wednesday
Work Program (WWP) for RSVP ($1,000).
b. Purchase and installation of new interior plants with containers of a variety of
sizes and types ($10,000).
c. Purchase weekly coffee supplies and donuts for WWP ($5,000).
2. PARTIAL ENDOWMENT: Some of the Paetzold bequest could be invested on
Senior Center Capital Improvement Projects, and any remaining funds could be
placed into an endowment, the interest from which would be used as noted in
number 1 above. Examples of possible Senior Center Capital Improvement Projects
might include:
a. Revamping the courtyard and rename it the “Gladys L. Paetzold Courtyard”
(in order to be consistent with the City’s Naming Policy, the naming of the
courtyard could not take place until at least one year has passed); adding
new landscaping, creating a small garden, expanding the current shade
awning, replacing the outdoor furniture.
b. Installing a Public Address System in the building that could be used for
emergency messages and announcements
c. Purchasing and installing the Safari System (computer registration) to register
members for program and outings; this would also allow us to issue each
person a picture ID.
3. FULL EXPENDITURE OF FUNDS (NO ENDOWMENT): Council may determine
that staff should research and identify a Senior Center capital improvement project
that utilizes the entire bequest of $166,423.35.
Staff requests that the City Council accept the Paetzold bequest, consider the
appropriate use of the funds and direct staff to come back to Council with a report
expanding on Council’s preferred manner of using these funds.
It should be noted that City staff will be returning to Council at a future date with a
proposed City Council Policy relating to the City’s acceptance of donations.
City of Culver City, California
City Council Agenda Item Report
FISCAL ANALYSIS:
If the Paetzold bequest is approved and accepted, and when the appropriate use of
the funds is determined by the City Council, a budget amendment will then be
processed to post the funds to a Senior Center revenue account and also
appropriate the expenditure account. (A budget amendment requires a 4/5
th
vote of
the City Council.)
However, until such time as the City Council determines the actual use of the
bequest, the funds will be deposited into the City Treasury with strict accounting of
the accrued interest earnings.
It should also be noted that should the City Council determine to use the bequest as
an endowment (either completely or partially) then it will take time for interest
earnings to accrue and be available for expenditure.
ATTACHMENTS:
None.
MOTION:
That the City Council:
1. Accept a bequest to the City of Culver City Senior Center by Mrs. Gladys L.
Paetzold and consider the appropriate manner in which to use the Paetzold
Bequest, including the possibility of:
a) an endowment;
b) a partial endowment;
c) full expenditure of funds (no endowment);
and direct staff to come back with a report expanding on Council’s
preferred manner of using these funds;
or
2. Discuss the item and provide further direction to staff.