OFFICE of the ATTORNEY GENERAL
GREG ABBOTT
August 27, 2009
Mr. Thomas P. Perkins, Ir By Fax Transmission: 214.670.0622
Dallas City Attorney
Mr. Chris Bowers
Assistant City Attomey
City Attomney’s Office
1500 Marilla, 7BN
Dallas, TX 75201
Re: Memorandum of Agreement/Samuell Charitable Trust
Dear Messrs. Perkins and Bowers:
T write to inform you that the City of Dallas is in breach of the April 10, 2009, Memorandum of
‘Agreement (“MOA”), between the Office of the Attorney General (“OAG"”), the City of Dallas, and
the Park and Recreation Board of the City of Dallas, (“Park Board”), The City must remedy this
breach by 5:00 p.m. on September 11,2009. Ifthe City fails to do so, the OA Gis left with no choice
but to take legal action to enforce the MOA. Among the legal remedies available to this office is an
action to remove the Park Board as trustee of the Samuell Trust, Because of the City’s failure to
comply with the MOA, a substitute trustee may be necessary.
‘As you know, Paragraph Twelve (12) of the MOA requires thet: “No later than July 15, 2009, the
Park Board shall review the following written reports by the Park Department: 1) current operations
of all Samuell Park Properties; and 2) a future plan for the Samuell Park Property known as Samuell
Farm, These reports shall be provided contemporaneously to the OAG.”
The City and the Park Board failed to produce the aforementioned report by July 15, 2009, as
required. Further, the City did not seek an extension of the date for receipt not of the date for review
by the Park Board, After the City failed to produce the reports, we contacted the City. It took until
August 3, 2009 to make contact. We advised of the missed deadline, and it became immediately
apparent that the City was not aware of the existence of the deadline, nor focused on the preparation
of the required reports, Nevertheless, the OAG was assured the reports would be forthcoming. In
later conversation, we were subsequently informed that the Park Board did not meet in July-a fact
that should have been apparent to the City at the time it signed the MOA, The City of Dallas Park
and Recreation Department (“Park Department”) finally transmitted a single report, (incorporating
both of the reports delineated in Paragraph Twelve), on August 21, 2009. However, the report is
little more than a limited Power Point presentation that provides a simplistic, elementary overview
of the operations of the Samuell Park Property operations. Importantly, the report is not even
scheduled to be presented to the Park Board until September 3, 2009.
ost Orrics Box 12548, Austin, Toxas 78711-2568 TEL: (512)463-2100 wep: WWW.OAO STATE.TH.US
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‘August 27, 2009
Ina telephone conversation with the City prior to the report’s production, the OAG reiterated that
a report of “current operations” should include detailed information about the current use of each.
park, operational costs, and other budgetary information which would adequately educate the Park
Board about the use of the properties for which it currently serves in a fiduciary capacity as trustee.
‘Moreover, the City failed to provide supporting documentation, or a financial overview in the report,
Finally, your report does not include the data necessary to inform the Park Board of its options for
the future of Samuell Farm. For example, you failed to include information that would support the
Park Department’s current recommendation that a contract be entered into with the City of
Sunnyvale.
Put simply, the August 21, 2009, report does not satisfy the requirement that the City provide the
Park Board with a report of current operations. ‘The report also lacks the required future plan for
Samuell Farm,
‘The OAGs initial review of the Samuell Charitable Trust focused, in large part, on the City’s failure
to adequately provide the Park Board information that is relevant to the proper exercise of its duty
as trustee, ‘The reporting requirements included in the MOA were intended to assure that such
information would be provided in the future. It is well established that.a trustee—in this case the Park
Board-cannot satisfy its fiduciary duty if it is not adequately informed. In this case, the Park Board
must be apprised of all factors relevant to the Samuel! Park Properties in order to competently
execute its duty as steward over the public’s property
‘The City of Dallas’s failure to comply with the requirements of Paragraph Twelve further evidences
its deficient exercise of proper stewardship over the Samuell Charitable Trust.
Sincerely,
Paul D, Carmona, Chief
Consumer Protection and Public Health Division
ce: Christine Lanners By Fax Transmission: 214.670.0622
Assistant City Attomey
Post Orrice Box 12548, Austin, TEXAS 78711-2548 TEL:(S12)463-2100 WEB: WWW.OAG.STATE.TX.US
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