HomeMy WebLinkAbout0014_1_Establishing Carl Fred Graves Trust - SR
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Grant Yates, City Manager
Prepared By: Nicole Dailey, Senior Management Analyst
Date: April 26, 2016
SUBJECT: Resolution Accepting Funds from the Family Trust of Carl F. Graves
and Establishing the Carl F. Graves Scholarship Fund
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA ACCEPTING FUNDS FROM THE FAMILY TRUST OF CARL F. GRAVES
AND ESTABLISHING THE CARL F. GRAVES SCHOLARSHIP FUND
Background
In late 2014, the City received notification that Carl F. Graves had bequeath a share of
his trust estate to the City of Lake Elsinore for purposes of establishing a fund for college
scholarships to needy and deserving graduates of the Lake Elsinore school system. Mr.
Graves’s background and the requirements of the scholarship are discussed below.
Discussion
Carl Fred Graves, age 91, passed away on August 26, 2014 while living in Hemet. He
was the son of Carl Fred Graves Sr. and Ruth H. (Hinds) Graves. He was born
May 16, 1923 in Rahway, New Jersey and graduated from Rahway High School in 1934.
After graduation, he then spent the next year at Phillips Exeter Academy. From there, he
matriculated at Harvard and was called into service for the United States Army during
World War II.
After discharge from the Army in 1948, Mr. Graves moved to California earning his
bachelor’s degree in Mathematics from the University of California, Berkeley and his
master's degree from University of Southern California.
His busy career consisted mainly of teaching mathematics in various high schools in
Southern California finally retiring from Lake Elsinore High School. Always very involved
Resolution Accepting Funds From The Family Trust of Carl F. Graves
April 26, 2016
Page 2 of 2
in his community, Mr. Graves served as City Treasurer to the City of Lake Elsinore from
1983 to 1986.
Shortly before his death (and unbeknownst to the City), Mr. Graves signed a document
entitled “Family Trust of Carl F. Graves.” The Trust provides for a “fundamental
distribution” of the trust estate, share, property, and assets to be “first” distributed as
follows:
“City of Lake Elsinore for the purpose of setting up a trust fund to provide a
scholarship in the name of the trustor to a needy and deserving graduate of
the Lake Elsinore School system for purpose of providing a 4 year college
scholarship.”
The trustee for the estate, acting through their attorney, has informed the City that they
are now ready to distribute the funds and conclude the business of wrapping up the
estate. The gift from Mr. Graves for this scholarship fund is estimated at $900,000.
This is indeed a remarkable gift to the Lake Elsinore community and comes with a solemn
obligation to carry out Mr. Graves’s wishes and ensure his legacy. The attached resolution
will establish a fund entitled the “Carl F. Graves Scholarship Fund” at the City, authorize
the Director of Community Services to accept the funds and deposit the funds into the
newly established fund account, direct that the funds only be spent in accordance with
the direction of the above-referenced trust directive, and direct the City Manager prepare
a program for selecting needy and deserving students and seek subsequent City Council
authorization for that program, as may be revised by the City Council.
Fiscal Impact
Costs will be incurred for staff time to research and prepare a scholarship selection
program. Additional staff cost may be incurred annually in the administration of the
program. However, no increase in expenditures is anticipated.
Exhibits
Exhibit A: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA ACCEPTING FUNDS FROM THE FAMILY TRUST
OF CARL F. GRAVES AND ESTABLISHING THE CARL F. GRAVES
SCHOLARSHIP FUND