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HomeMy WebLinkAbout14 - Fleener Trust Check AcceptanceCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 14 January 8, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: LINDA KATSOU LEAS LIBRARY SERVICES DIRECTOR, 949 - 717 -3810 Ikatsouleas@city.newport-beach.ca.us SUBJECT: BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE MARTHA JANE FLEENER TRUST AND APPROPRIATE FUNDS FOR MAINTENANCE AND OPERATIONS BUDGET FOR FY 2007108. RECOMMENDATION: Approve a Budget Amendment to increase revenue estimates by $12,000 in Account No. 4010 -5901 (Private Donations and Contributions) and to increase expenditure appropriations in 4017 -9006 (Software Licenses) by the same amount due to the second receipt of funds from the Martha J. Fleener Trust. DISCUSSION: A check to the Newport Beach Public Library from The Martha Jane Fleener Trust in the amount of $12,000 was accepted by email note by the Board of Library Trustees on August 21, 2007. The donation was received from Gerald A. Wolf, Successor Trustee of The Martha Jane Fleener Trust, and deposited into 4010 -5901 on December 13, 2007. The entire amount will be deposited into 4017 -9006 expenditure account toward payment for the new library software, Innovative Interface's "Millennium" as approved by City Council on September 11, 2007. The funds will be deposited in the expenditure account as specified below: 4017 -9006 (Software Licenses) Integrated Library System (ILS) $12,000 Total Amount of Check $12,000 Submitted by: LiDda Katso Library Services Director Attachments: Copy of letter from Wolf Law Firm and cash receipt for $12,000. WOLF LAW FIRM GERALD A. WOLF Also Member Arizona Bar December 5, 2007 Newport Beach Public Library c/o City of Newport Beach 3300 Newport Blvd. Newport Beach CA 92663 Attention: Dennis D. Danner Re: Martha Jane Fleener Trust Second Accounting of Successor Trustee Second Distribution (Partial) Check No. 1112 Amount of Check $12,000.00 Dear Mr. Danner: 2677 North Main Street Suite 930 Santa Ana CA 92706.6632 7141972.2212 FAX 7141972.4926 wolflawfirm @aol.com Enclosed are the following: 1. Second Report and Accounting of Successor Trustee for the Martha Jane Fleener Trust U /A/D May 2, 1988 (the "Trust') prepared by Gerald A. Wolf, Successor Trustee for the period of July 1, 2007 through November 30, 2007. 2. Check Number 1112 in the amount of $12,000.00 drawn on the account of the Trust at CitiGroup. This check represents the second distribution of cash to you as a beneficiary of the Trust by the Successor Trustee. 3. Consent to Second Accounting for the Accounting Period of July 1, 2007 through November 30, 2007. 4. Receipt of Second Distribution All of the beneficiaries of the Trust consented in writing to the acts of the Successor Trustee as accounted for in the First Accounting which covered the period of November 17, 2006 through June 30, 2007. The Second Accounting covers the period of July 1, 2007 through November 30, 2007. Attached to the Accounting is a copy of the November 30, 2007 CitiGroup Smith Barney stock brokerage account statement for the Trust. All of the assets of the Trust are held in the stock brokerage account at CitiGroup Smith Barney. The account number and the reference number have been redacted for security purposes. Also, attached is an accounting by the Successor Trustee of the Administration of the Trust from July 1, 2007 (the first day after the first accounting) through November 30, 2007 which contains a list of the Assets on Hand as of July 1, 2007 and as of November 30, 2007. December 5, 2007 Page 2 The Successor Trustee has determined it is appropriate to distribute $400,000.00 of the $904,486.49 on hand in the CitiGroup Smith Barney account as of November 30, 2007 to the named beneficiaries of the Trust on a pro rata basis. A list of the names of the beneficiaries, the percentage that is to be distributed to them and the amount being distributed to them in the second distribution is included with this letter. The Successor Trustee anticipates that the balance of the net proceeds of the Trust that are to be distributed to you will be distributed during the first quarter of 2008. The distribution will occur after the Fiduciary Income Tax Returns for the state of California and the Internal Revenue Service have been prepared and filed and any taxes paid that may be owed by the Trust. The final distribution will not occur if any beneficiary objects to the second accounting included with this letter or if any beneficiary files a Petition with the Orange County Superior Court (Probate Department) regarding the administration of the Trust by the Successor Trustee covering the period of the second accounting of July 1, 2007 through November 30, 2007. The enclosed "Receipt of Second Distribution" to you or your organization needs to be signed and returned to Gerald A. Wolf, Successor Trustee, in the enclosed self addressed envelope. The Receipt needs to be signed and returned even if you disagree with the accounting for the period of July 1, 2007 through November 30, 2007. The enclosed "Consent To Second Accounting for the Martha Jane Fleener Trust dated May 2, 1988, for the period of July 1, 2007 through November 30, 2007' needs to be signed and returned to Wolf Law Firm if you consent to the Second Accounting. Set forth below are notices required by California law that must be provided to beneficiaries of Trust when an accounting is provided to the beneficiaries by a Trustee of the Trust. If the Consent to Second Accounting is not signed and returned to Gerald A. Wolf by all of the beneficiaries of the Trust, then Gerald A. Wolf, as the Successor Trustee shall petition the Orange County Superior Court for approval of the second accounting and second distribution. In addition, a Petition for approval of the final accounting and final distribution would be filed prior to the final distribution of the remainder of the assets held in the Trust. If a petition for approval of the second and final accounting and final distribution is filed then there will be additional costs incurred in doing so and Gerald A. Wolf, as the Successor Trustee shall engage the services of an attorney not associated with Wolf Law Firm to represent the Successor Trustee to prepare and file the Petition with the Court which attorney fees will be a cost of administration of the Trust. December 5, 2007 Page 3 Even though the Trust does not provide for any accountings to be provided to any beneficiaries of the Trust, California Probate Code §16062 provides that a Trustee of a Trust is required to provide to the beneficiaries of a Trust at least an annual accounting. The Trustee is required pursuant to Probate Code §16062 to provided the following notice when providing an accounting as set forth in Probate Code §16461 which states the following: NOTICE TO BENEFICIARIES YOU HAVE 180 DAYS FROM YOUR RECEIPT OF THIS ACCOUNT OR REPORT TO MAKE AN OBJECTION TO ANY ITEM SET FORTH IN THIS ACCOUNT OR REPORT. ANY OBJECTION YOU MAKE MUST BE IN WRITING; IT MUST BE DELIVERED TO THE TRUSTEE WITHIN THE PERIOD STATED ABOVE; AND IT MUST STATE YOUR OBJECTION. YOUR FAILURE TO DELIVER A WRITTEN OBJECTION TO THE TRUSTEE WITHIN THE PERIOD STATED ABOVE WILL PERMANENTLY PREVENT YOU FROM LATER ASSERTING THIS OBJECTION AGAINST THE TRUSTEE. IF YOU DO MAKE AN OBJECTION TO THE TRUSTEE, THE THREE -YEAR PERIOD PROVIDED IN SECTION 16460 OF THE PROBATE CODE FOR COMMENCEMENT OF LITIGATION WILL APPLY TO CLAIMS BASED ON YOUR OBJECTION AND WILL BEGIN TO RUN ON THE DATE THAT YOU RECEIVE THIS ACCOUNT OR REPORT. In addition California Probate Code §16063 requires the Trustee to notify the beneficiaries of the following: Trustee's Duty to Report Information and Account to Beneficiaries 16063. Contents of account; manner of presentation (a) An account furnished pursuant to Section 16062 shall contain the following information: (1) A statement of receipts and disbursements of principal and income that have occurred during the last complete fiscal year of the trust or since the last account. (2) A statement of the assets and liabilities of the trust as of the end of the last complete fiscal year of the trust or as of the end of the period covered by the account. (3) The trustee's compensation for the last complete fiscal year of the trust or since the last account. (4) The agents hired by the trustee, their relationship to the trustee, if any, and their compensation, for the last complete fiscal year of the trust or since the last account. (5) A statement that the recipient of the account may petition the court pursuant to Section 17200 to obtain a court review of the account and of the acts of the trustee. December 5, 2007 Page 4 (6) A statement that claims against the trustee for breach of trust may not be made after the expiration of three years from the date the beneficiary receives an account or report disclosing facts giving rise to the claim. (b) All accounts filed to be approved by a court shall be presented in the manner provided in Chapter 4 (commencing with Section 1060) of Part 1 of Division 3." Before you sign and return the consent, you should review the accounting thoroughly and contact the Successor Trustee with any questions you may have regarding the accounting or the initial distribution. However, if you have any questions or concerns about your legal rights with regard to the accounting or your interest as a beneficiary of the Trust, you should consult with an independent attorney of your choice. You are advised that neither Gerald A. Wolf nor any representative of Wolf Law Firm can orwill provide any individual beneficiaryany legal advice regarding the Martha Jane FleenerTrust or any rights that you may have as a beneficiary of the Martha Jane Fleener Trust. If you have any questions that can be answered by Gerald A. Wolf, subject to the above disclosure, please call him at 714/972 -2212 during regular office hours Monday through Friday, 8:30 a.m. to 5:00 p.m. Pacific Time. Sincerely, WOLF LAW FIRM Gerald A. Wolf GAW /jc Enclosures fleener \successor trustee \accounting \distribution of assets to beneficiaries \tr beneficiaries second report and accounting12 -5 -07 CONSENT TO ACCOUNTING FOR THE MARTHA JANE FLEENER TRUST DATED MAY 2, 1988 ACCOUNTING PERIOD: JULY 1, 2007 THROUGH NOVEMBER 30, 2007 1. I am a beneficiary of the Martha Jane Fleener Trust, Dated May 2, 1988. (hereinafter "Trust ") 2. 1 have received an accounting for the Trust from Gerald A. Wolf, Successor Trustee, for the period of July 1, 2007 through November 30, 2007. This accounting contains the following information: (a). A statement of receipts and disbursements of principal and income that has occurred during the period of accounting. (b). A statement of the assets and liabilities of the Trust as of the end of the of the period covered by the period of accounting. (c). The Successor Trustee's compensation for the period covered by the period of accounting. (d). The disclosure of the agents hired by the Successor Trustee, their relationship to the Successor Trustee, if any, and their compensation, for the period of accounting. (e). A statement that as a recipient of the accounting, I may petition the Orange County Superior Court pursuant to California Probate Code §17200. (f). A notice under California Probate Code §16461(c)(3) that I have 180 days from my receipt of the accounting to make an objection to any item set forth in the accounting. 3. After reviewing the accounting provided to me by Gerald A. Wolf, Successor Trustee, for the period of July 1, 2007 through November 30, 2007, 1 hereby consent to all actions of Gerald A. Wolf, Successor Trustee, and his agents as disclosed in said accounting, and I release the Successor Trustee, and his agents of any and all liability for the matters disclosed in said accounting. Executed this �A A day of December, at Newport Beach, CA. Newport Beach Public Library Dennis C. Danner, Treasurer MARTHA FLEENER TRUST RECEIPT OF SECOND DISTRIBUTION I, DENNIS C. DANNER, Treasurer of the Newport Beach Public Library declare as follows: On behalf of the NEWPORT BEACH PUBLIC LIBRARY, I hereby acknowledge receipt of the following distribution from Gerald A. Wolf, the Successor Trustee of the Martha Jane Fleener Trust, via Letter and check dated December 5, 2007. I have received check No. 1112 in the amount of $12,000.00. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, dated this I? day of 2007 at Newport Beach, CA. Newport Beach Public Library Dennis C. Danner, Treasurer CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES 3300 NEWPORT BLVD.. P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 RECEIVED BY: CECILIA TODAY'S DATE: 12/13/07 40105901 PRVT DONATIONS /CONTRIB CASH PAID CHECK PAID $.00 $12,000.00 CASH RECEIPT RECEIPT NUMBER: 01000079131 PAYOR: WOLF, GERALD A REGISTER DATE: 12/13/07 TIME: 11:29:22 2ND DISTRIBUTION TOTAL DUE $12,000.00 --------------- - $12,000.00 TENDERED CHANGE $12,000.00 $.00 r ;5 ^a z O i p.. o r f ��. E � w S •., � 3S• e ° Y{ '�, a City of Newport Beach NO. BA- 08BA -035 BUDGET AMENDMENT 2007 -08 AMOUNT: $12,000.00 EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance Transfer Budget Appropriations rx I No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations from the Martha Jane Fleener Trust to purchase new soft ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account REVENUE ESTIMATES (3601) Fund /Division Account 4010 5901 EXPENDITURE APPROPRIATIONS (3603) Description Description Library - private Donations Signed: Signed: Approval: inistrative Services Director Manager Amount Debit Credit $12,000.00 $12,000.00 Automatic System Entry . Date /.Z •t a Da Signed: City Council Approval: City Clerk Date Description Division Number 4017 Library - Systems Services Account Number 9006 Software Licenses Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: Approval: inistrative Services Director Manager Amount Debit Credit $12,000.00 $12,000.00 Automatic System Entry . Date /.Z •t a Da Signed: City Council Approval: City Clerk Date