Fremont City Council Meeting: 06/06/23 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Acceptance of Donations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4922) DOC ID: 4922
Updated: 5/31/2023 3:26 PM by Alberto Quintanilla Page 1 ACCEPTANCE OF GIFT FOR TRI-CITY ANIMAL SHELTER - Acceptance of Bequest from Tasos Belias for the Tri-City Animal Shelter; Delegate Authority to City Manager or Designee to Execute Termination and Release Agreement Contact Persons:
Name: David Persselin Kelly Miott
Title: Finance Director Animal Services Manager
Div/Dept: Finance Department Animal Services
Phone: 510-494-4631 (510) 790-6646
E-Mail: [email protected] [email protected]
Executive Summary: Under the terms of a trust established by Anastasios (“Tasos”) Belias and Erika Belias (the “Belias Trust”), upon the death of the first spouse, a portion of the trust assets would be distributed to the Tri-City Animal Shelter. Mr. Belias passed away on April 2, 2021, and the trust is now ready to be distributed.
Because the amount of the gift exceeds $100,000, the City’s Municipal Code requires that the City Council take an action to approve and accept the gift. Additionally, the trustee has requested that the City execute a Termination and Release Agreement.
Staff recommends that the City Council adopt a resolution approving and accepting the gift, delegating authority to the City Manager or her designee to execute the Termination and Release Agreement, and recognizing any amounts received in the Tri-City Animal Shelter account.
BACKGROUND: The Belias Trust specifies that 1.5% of the trust assets will be distributed to the Tri-City Animal Shelter, and the trustee will hold an amount in reserve for final taxes, fees, and expenses. The preliminary distribution to the Tri-City Animal Shelter is approximately $337,279. The reserve will be distributed when the reserve period ends, typically three years after the final tax return is filed.
The City’s Municipal Code, Section 3.20.020, includes gifts and donations under the definition of “Grant,” and specifies that acceptance of such a gift, including any relevant terms and conditions, forms a contract. The Municipal Code also requires any contract for acquisition of personal property in an amount greater than $100,000 to be approved by the City Council.
DISCUSSION/ANALYSIS: The trustee for the Belias Trust, Fremont Bank, has requested that the City execute a Termination and Release Agreement, which will allow the trust to be terminated and distributed without going through a process through which the trustee obtains court approval of its accounting and administrative actions. The Termination and Release Agreement constitutes a complete release and waiver of all liabilities in connection with the trustee’s accounting and actions in administering the trust.
Fremont Bank has provided the City with copies of the Belias Trust and its subsequent amendments, as well as account statements documenting the value of the trust assets. As Council Staff Report (ID # 4922) Meeting of June 6, 2023 Updated: 5/31/2023 3:26 PM by Alberto Quintanilla Page 2 the amount to be distributed to the Tri-City Animal Shelter appears to be consistent with the terms of the Belias Trust and the balance shown in the account statements, staff recommends that the City Council delegate authority to the City Manager or her designee to execute the Termination and Release Agreement.
Staff also recommends that the City Council indicate its approval of the gift, as required by the Municipal Code, by adopting a resolution accepting the gift from the Belias Trust.
FISCAL IMPACT: In accordance with the terms of the trust, staff is recommending that the preliminary distribution of approximately $337,279, along with any future distribution from the reserve, be recognized as revenue in the Miscellaneous Special Revenue Fund (Fund 210) organization code specific to the Tri-City Animal Shelter.
ENVIRONMENTAL REVIEW: Not a project.
ATTACHMENTS:
• Draft Resolution Accepting Gift from Belias Trust to Tri-City Animal Shelter
RECOMMENDATIONS: Adopt a resolution:
1. Accepting and acknowledging the gift from the Belias Trust.
2. Authorizing the City Manager or designee to execute the Termination and Release Agreement.
3. Recognizing donation revenue of $337,279, and any subsequent trust distributions, in the Miscellaneous Special Revenue Fund (Fund 210) for the benefit of the Tri-City Animal Shelter (Organization Code 21021910 – Animal Shelter Donations).