HomeMy WebLinkAboutResolutions 9703 N.C.S. 03/14/1983.,, ~
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Resolution No. 9703 . ]~J. ~. S.
of the City of Petaluma, Cali~fornia
~IAR 1 4 )983 . ' J/~ '~,'
A. RESOLUTION APPROVING "D.ECLARATION OF TRUST"
BETWEEN THE CITY OF PETA-LUMA AND
PETALUMA ECUMENICAL PROJEGTS, INC.
WHEREAS, the Gity of Petaluma, a municipal California corporation, by
~~ Council Committee and Petaluma Ecumenical Proj'ects, Inc. , a nonprofit
public benefit corporation, have had numerous meetings for the purpose of
reviewing and approving a document entitled "Declaration of Trust" ; and,
W'HEREAS, said documents identifies the City of Petaluma as Trustor,
and, Petaluma Ecumenical Projects, Inc. , as Trustee, wherein a charitable
trust, enforceable under the laws of the State of California, is created to
utilize real property held in trust for the sole pur.pose of providing rental
housing facilities ta low and moderate income senior citizens; and,
WHEREAS, a copy of the "Declaration of Trust" is attached hereto and
made a part hereof as Exhibit A;
NOW, THEREFORE, . B'E IT RESOLVED that the City Council hereby
approves the document entitled"Declaration of Trust" and acknowledges its
approv.al by Petaluma Ecumenical Projects, Inc.
Under;the power and authority conferred upon this Council• 6y the Charter of said City.
`I -hereliy certify the foregoing R,esolution was introduced and adopted by the ;~'A ' rove 's to
Gouncil of the Cit of PetFililuma at a Re ar) (Adjourned . ' fo •
Y• ~ S'~ ) ~~P~9~~'). meeting
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on the .... ..:..th . day of ....._...Ms~1".G~.._.'•-: -~••-•-..,, 19,~,~_, by t
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following vote: • ~ ~ ~ ~: ~ -• • ---•-•••--
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AYES: Balshaw, Battag~la;a, Bond, Cavanagh, Harbers;on,, Perry, Ma..o Mattei -
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.ATTEST: ..... .. ... .. .. :.. ...•-: •- • • • •- •-•• -•••-••••• ? ' ~
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City Clerk ~ Mayor
Council Fil~G}. _ . _ . .. .
Form CA 2 7/81 Res: No "~a~---- --°....__._ ..
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GECLAR~AT.ION OF TRUST
Developer, herein called ":Trustor" declares that:
l. Identity of Trustor. Trustor is the owner and developer of
certain real propert,y located in the City of Petaluma, and .more particularly
defined as . . . . . . . . . . . . . . . . . subdivision. Trustor hereby •
irrevocably transfers a_nd conveys to Trustee all property described in an
inventory attached `hereto as Exhibit "A" together with any other property
which may hereafter, be transferred or conve,yed fo an received by the
Trustee to be held pursuant to the terms of this instrument, which is
hereinafter referred to as the "Trust Estate" and shall be held,
administered, and distributed by the Trustee as provided in this
Declaration of Trust. Trustor/Developer shall have no control
responsibility, authority, or occupy any other position with regard to the
administration of the Trust and subsequent to the execution of this
document and' oonveyance of said Trust to Trustee, disassociates
himself/herself from the Trust Estate completely. Provided, however, that
if this T.rust shall fail, or in t'he event- of breach of this Agreement by the
Truste'e, or the Trust Estate is no longer used to provide rental housing
for low and moderate income senior citizens, title shall automatically vest in
the City of Petaluma, a California municipal corporation.
2. Identity of Trustee. Petaluma Ecumenical Pz-ojects, Inc. , a
noriprofit Cal'ifornia sorporation, is hereby iden,tif'ied as the Trustee which
will hold the 'T:rust .Estate pursuant to the terms of this agreemen;t. The
Trust ~state is to be held;, aclministered, :and distributed by the Trustee as
provided in this Declaration of Trust.
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3. Purpose of Trust: It is acknowledged that this Trust shall '
cornstitute a eharita'ble trust enfor.:cea'ble~ under- .the laws of the State of
California.. The ptirpose of t.his 'Prust . is.to utilize all real .property held in
trust and/or revenues derived in any ma~nner therefrom, exclusiv,ely for the
sole purpose of providing rental h'ousing: facilities. to .low 'and: mod_erate
income senior citiz'ens, ` ~
4. Ad'ditions to Trust. ; Tr.us,tor shall have the ri'ght a't .ari,y 'time to.
add other property .acceptable to tYie Trustee to the Trust cr:eated b~y tYiis
Deelaration and :such property, when received an.d accepted by the Trustee,
shall.. become a part of the Trust Estate .of this trust. _
5. Powers of Trustee. Trustee 'is authorized to retain. in the T.rust
for such t'ime as it may deem advisakble ~any property xeceived. by it .f`rom
the Tr:ustor, and to oper.ate at t-he risk of the trust E"state a_n'y property
received: :b.y it. fr.om the Trustor, subjeet to restrictions+ he.reinafter set
forth.
6. ':Manag;e.ment af Property?., It is anticipated that; as tla'e prirnary
objective of this Trust, the T,rustee w.i~ll util-ize all real p"roperty held in
trust exclusively for the sole purpose,` of` provi'ding ren,tal housing, -faci'1'ifies
to low and moderate income senior citizens~. It is ackno'wledgeii tliat should
any real property which ~ is provi,ded in this trus.t be~ ~no longer . used to
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provide rental housing. "fo "r lowF and moderate income senior~ eitizens, then:
the Trust shall automatical'ly cease. T.itle sh'all thereafter vest 'in the City. .
of Petaluma as set forth in, paragraph 1:of this Declarati:on.,. ~.
~ The Trustee ~shall, ~w'ith respec~f; t'o any and all. property whicli
may at any time be hel'd by i,t iri tr,ust` p.ursu'ant to th'i:s Declaration,
whether sueh property constitutes principal or, accumulated 'iri'come o'f;. ~ any
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trust provicled for in this . Declarat'ion, h~ave the power and duties,
exercisable in the Trustee's discre~tion at any ~time and from time to time on
such terms an,cl in su'ch manmer as Trustee may deem aclvisable, to:
A. Gonvert, improve., repair, manage; operate and control all
real property which ;is' the subject of this Trust, including the authority to
sell or encumber property and improvements if fihe Trustee deems so
advisable in order to provide.,for and/or further the purpose of this Trust,
provided that Trustee shall not be authorized to sell or encumber any
property .without the' prior approval of the City Council of the City of
Petaluma.
B'. Provide' .space for gardens, game rooms and other common
amenities upon the site of the Trust Estate housing for the use of the
tenants and their guests.
C. Lease or rent, for terms within any tru~st provided for in
this Declaration a~nd :for the sole purpose of providing low and moderate
income senior eitizen housing, any real property and 'improvements which
may then or thereafter. be erected on such property.
D. Carry insurance of such kinds and in such amounts at the
expense .of of tlie trust provided for in this Declaration,as the Trustee may
deem advisable; including;, sueh insurance intended to indemnify the
Trustees, of the Trust for any and all acts or omissions including those to
be thereafter determined as a- mistake, inadvertence or negligence or any
other character.ization, other than those acts ,or omissions that are serious
and willfu~l, or .grossly negligent in character; and irrcluding such insurance
(in an amoun,t determined by the City) necessary to indemnify and hold
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ha•rmless the 'Cit,y of Pefaiuma. from all liabili,fy from any aativi.ties condueted
under this Trtiist Declaration. ' '
E. Commence or defend at the exp:ense of the trus:t. p,rovided for
in this+ Decl'arafion, such litigation wi.t~h, resp.eet• to th'e `Trust or any
property :of the 'Trust::Estate as it may deem advisable,,
F. Invest or r.einvest the t-ru.st funds in ,such proper:ty ,as the
Tru'stee , sel'ects, subject to prior ap.proval by the City Cou•ncil of: 'the City
of Petaluma. ~ : -
- G, P:ay any assessments o.r other charges levied on. any property
lield in trust pursuant to this Declaration. ~
H. Subje,ct bo any lirnitations eYpressly . set ~for:th in, thi.s
Declaration.., do all acts, take all such procee_dings, and exer`c.ise all such
rights and privile'ges as could be doney taken, or authorized by an absolufe
owner of the trust property. . -_
I. Contraets for °ma~terial ~ or services rendered of any k'ind or
type may be made with firms or businesses for ~vhich. ~°a .memher or ,board
member' of the Trustee is an employ.ee,, owner,. partner, •.:or .sharel~older,
provided that the cost. of such . service for material is wit'hin reasonable
limits as ~shown by tYie cost of, .similar serviees or material prevailing in the
area and the member or boar.d member discloses hi's/'her interest iri th'e
matter before the Trustee . acts an~d the member ~or board membe"r. cas;ts . no
vote in any" decision by tlie Trustee 'rn such a.matter.
7. The Tru'stee ;sha~ll not ha~ue. the po~ver to borrow money from ;any
person, firm or cor.poration for ;any :t`rust purpose withou;t th'e p`rior
approval of the City Council of the City of Petaluma.
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8. The Trustee shall not be authorized to loan or advance its own
funds to tke Trust for any trust p:urpose ~vithout the prior approval of the.
City Council of the City of Petaluma.
9. Taxes and Expenses of Trust. All property taxes, assessments,
fees, charges, and other expenses iricurred by the Trustee in the
administratiori or protection of the Trust created by this Declaration, shall
be charged to the Trust Estate an'd shall be paid by the Trustee as they
become due. Prior to final distribution of the Trust Estate sucli taxes,
etc. , shall be paid in full, out of •the principal or out of the income of the
Trus"t Estate, in such, manner an,d ~roportions as the .Trustee selects.
10. Res'ignation of 'Trustee. ~The Trustee shall have the right to resign
at any. time, and on -such res'zg~nation, the City of Petaluma shall be
appoirited- Trustee with~ the. power to appoint ariy subsequent Trustee that it
so desires . .
11. 'Compensation of Trustee. The Trustee shall be entitled to
compensation for all o.ut of pocket expenses incurrecl in the administration
of the Trust . The Trustee shall be entitled to an annual fee for its
overall adminisfration of the Trust, which fee shall be negotiated between
the City of Petaluma and fhe Trusfee on an annual or other basis as
determined by the Cit'y Council of the City of Petaluma. Provided,
~ how.ever_,1 that no fee shall inure to the benefit of any ind'ividual Trustee.
12. .Review of Records. Trustee agrees to fil'e with the City Clerk an
annual accounting of all income and expend'itures in administering the Trust
in a form and manner in accord with generally accepted accounting methods.
Furtlaer `Trustee agrees to make available for inspection to the general
public on any nor.mal workday between 10 a. m, and 4 p, m., by prior
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appointment, at the corporate office of fhe Trus:tee, all b,ooks and r.ecords
wh'ich in. any way rel'ate to the admiriistration ~of this Trust..
T3. Appli"cab'le .La~v. ~ The Trus;t cr-eated by this D_eclaration `has been
accepted `by the Trustee in the State of California, wil'1 be admini's'tere'd ;by
the .Trustee~ in California, and the vali~dity, coristruction, and all rig,_hts
under this Declaration shall be governed` by the laws of .th!,e- S"tate of
Califorriia. - - ~ .
14: Invalidity of Any Provision (S:everability) . Should any grovisions
of this Declarafion 'be or become inpalid ` or unenforceable; the r-,ema~in.ing ~•.
provisions of tliis Deciarat'ion shall be and continue to. be fully effective;. ~ '
15. Retention of Management Power,s_. Notwifh°standin~g any otl-ier
provisions of' .this Declaration, the -Txustee sYiall have rio power, du,ty, or -
responsibility to sel1, exchan-ge:, encumber or to make any dis.p;osition. -of' any
asset `of tYie 'Tru'st E'state, w'ithout prior approval of the City ~Council_ of `the .
City of Petaluma:. ~ ~ _
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