SUPPLEMENTAL MATERIAL - Laserfiche WebLink

Honorable Mayor Thorne and Members of the Council May I, 2016 Page 2 annum). The safety of a diverse investment portfolio over time will be approximately equal to the safety of the U.S. stock market, which has always grown over time. There will be many costs to the City in administering the historic fund, such as verifying that each draw has been authorized (by who?), and (hopefully?) managing the growth of the fund. Another advantage: An endowment is likely to attract further donations, such that the corpus of the endowment continues to grow even while funding preservation activities. It has been my intention to donate half of my executor's fee as the second donation to the Jean Jones Endowment. As to directing how the available endowment funds are spent, again I believe the Historical Society will make better decisions than the City. As a City controlled fund, even if spent through the Historical Society, real power regarding allocation of those proceeds will gravitate to the City, as stated in the Staff Report: "The City can dispense earnings from the estate proceeds and principal from the estate with Council approval, to the [Historical Society] to support programs . . ." One can envision the Historical Society in a contractor role, carrying out bequests wrangled by interested parties from the City. I would not donate half of my Executor's fee to a City controlled "historic fund" whose allocation would be subject to changing political winds, and I doubt other potential donors would either. In a City organization busy spending almost $100 million per year, beset upon by supplicants for many worthy causes, the historic fund might not get much quality attention. I would not expect the kind of multi-year systematic program epitomized by the Historic Recognition Program to take place, or be sustained. Further, having subject matter expertise is essential to leveraging endowment funds. For example, the Jean Jones display being planned within the Museum on Main can be grant funded from the State, but the money must be spent in advance, then the grant is received as a reimbursement. Putting a City approval process into the middle of that grant funding process could slow the project down, or forfeit the grant funding opportunity. The success of civil society requires independent institutions with voice and resources. The Jean Jones Endowment would give the Historical Society that voice and resources, and the independence to speak out for Jean Jones' goal of historic preservation. But, as merely a City sub-contractor, that voice could be silenced. S' cerely, (At,004 Peter MacDonald Executor, Estate of Jean Jones Cc: Conservators: Heidi Bailey and Laurie Riddle Amador Livermore Valley Historical Society Pleasanton Heritage Association