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Newport Council offers shelter to ousted foundation

January 26, 2000

Noaki Schwartz

NEWPORT BEACH -- The City Council has taken the disowned Library

Foundation under its wing and offered to find the group temporary space

somewhere in City Hall.

The action comes on the heels of a move by the Newport Beach Library

board of trustees to disband the fund-raising group and evict it from its

office in the Central Library. The trustees are disputing the

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foundation's fund-raising practices.

But council members urged the two groups to meet with a professionally

trained facilitator after heated emotions cool down.

While foundation chair Dave Carmichael eagerly embraced the idea,

frustrated trustee chairman Jim Wood said too much time had already been

spent on the issue.

"[The trustees' responsibility] is to look after the good name of the

library," Wood said, tapping the podium to underscore his words.

The City Council found itself in the uncomfortable position of getting

involved in the dispute after Councilwoman Norma Glover brought the

matter before the study session. She wanted city staff to outline the two

library bodies' respective roles.

The council members were clearly disappointed with Wood's decision to

reject professional mediation. And although Mayor John Noyes urged him to

bring the matter to a board vote, Wood stood his ground.

"What started as a tempest in a teapot is now a barroom brawl," Wood

said.

The dispute over control over the foundation's savings has been festering

for more than a year. While the foundation has attempted to build an

endowment fund to help the library weather bad financial times, the

trustees rejected the idea and wanted the $1.5 million for more immediate

uses.

Frustration on either side escalated to such an extent that the trustees

sent a letter to the foundation on Jan. 18 demanding that unless

foundation members signed a cooperating agreement, they would have to

move out of the library office and turn over the endowment fund. Wood

also wanted the nonprofit group to change its name.

While the trustees can demand the foundation leave the premises, City

Atty. Bob Burnham pointed out they cannot control the foundation and do

not have exclusive rights to the library's name.

The foundation must remain legally independent of the trustees in order

to operate as a private nonprofit, Burnham said. Therefore, the trustees

cannot gain the financial control they seek.

In addition, the foundation has already decided that should it disband,

the money would go to the Orange County Community Foundation, which would

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