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HomeMy WebLinkAboutNB07-Council Office .. CICt OF SAN BERNARDCJO - REQUOT FOR COUNCIL Ac,JON From: Councilman Dan Frazier Subject: u. S. Department of Conunerce letter Dept: Council Office One: December 2, 1985 Synopsis of Previous Council ection: Recommended motion: That floor be opened for discussion of letter received from the U.S, Department of Conunerce, Economic Development Administration, Re: EDA Project 07-l9--2435, Five Cities Economic Development Authority, Operation Second Chance, Inc. -w Q~~ ,~_ \='1.:<\ ~ (...; j Sign tLre , Contact person: Phil Arvizo Phone: 383-5188 Supporting data attached: Yes Ward: N/A FUNDING REQUIREMENTS: Amount: N/A Source: Finance: Council Notes: 75-0262 Agenda Item No.New Business '1.\12,." .,- ~ c ~) iJ' .~ ~. ~ . u.., DEPARTMENT ~ COMMERCE ~(' ...~ a~....la.....J._,* Adf'l,Jni.crw~ 1700 VIII.- . ...e..-u. I'I.Ii:lI"'l:M -. .b... \I\~ _ w...cn EIB'C& November 22, 1985 (206) 442-0596 Honorable Evlyn Wilcox Kayor of San Bernardino City of San Bernardino City HAll 300 North D Street San Bernardino, CA 9241B ;-: ~ "1 L.' <~ i ; -...: '-, ,.~ ~) " -- ; I':-) '"! , .z:- ~- , CD "' Re: EDA Project 07-19-02435 . Five Cities Economic Development'Authority Operation Second Chance, Inc. Dear Kayor Wilcox: On September 26, 1980, EDA granted .2,957,OBB to the Five Cities Economic Develop.ent Authority which in turn was subgranted to Operation Second Chance, Inc. for construction of a jab training facil i ty. In accepting these federal grant funds, the Five Cities Economic Development Authority and Operation Second Chance agreed to conform to the Seneral and Special Terms and Conditions of their respective grant contracts. Among these Mere stipulations that the project be adequately operated and maintained and that the EDA and other Federal Property Kanagement regulations would adhered to. EDA has become aware that Operation Second Chance, Inc. has mortgaged its facility without EDA approval and in violation of EDA property management regulations and is now threatened with foreclosure by Sank of America. EDA.s interest at this point is twofold: 1. to avoid loss of the facility through foreClosure, and 2. to address the failure of Operation Second Chance management which has led to these circumstances. In placing the mortgage on the facility, Operation S Inc. has also jeopardized the contract between EDA Cities Economic Development Authority. 9 ,.- . '-,- " c "'''''\ V :) "ayor Evlyn Wilcox November' 22, I.,S5 Page 2 I have scheduled a meeting ~etween .yself and several of .y staff and the Board of Directors of Operation Second Chance, Inc. to be held on Tuesday, December 3, 1985, at 1100 p.m. at the Operation Second Chance facilit . this time that your city"s member of the Five Cities Economic DRvelo men or y also participate i IS mee lng. Prior to the general .eeting at Operation Second Chance, Inc. I would also like to meet separately Mith the Five Cities Economic Development Authority board members to discuss the current status of the project. This will be held an Tuesday, December 3, 1985, in the "ayor"s Conference Room, City of San Bernardino City Hall, Sixth Floor at 11100 a.m. I would appreciate your providing "s. Nilliams, EDA field representative in Los Angeles with the name and phone number of your city"s member of the Five Cities Economic Development Authority Board. "5. Nilliams .ay be reached at (213) 2"0-7286. Enclosed for your information is a copy of the Joint Powers Agreement by which the Five Cities Economic Development Authority. s;n<or.,y,~ ~~. ~ward Regional Director Enclosure c o J e :(( c. ( ., , " , Five original counterparts one nch to " . Rialto. Colton, fDntana. Redlands. San ~rnaf dino, .JOINT Po.4ERS AGREEMENT fOR .IMPLE.ENT AT! OIl OF (CONOItlC DEI'ELOPlEllT ACTltlS PROGR~M THIS JOINT PMRS AGREEMENT. is Dade and entered into this -;l!O day Df October. 1978. by a~d between the CITY OF fOOAl'IA, a ""icipal corporation, herelnafur referred to as "fONTA.~A.. the CITY OF RIALTO. a lIuniclpal corpora- tion. hereinafter referred to as oRlALTO". the CITY Of m~TON. a IIlInlcip~l. corporation, hereinafter referred to as "COLTON", and CITY OF SA.~ BERNARDiNO. a chamr "city. hereinafter referred to as "SAI'lJ!EP.NAROINO.. and the CITY OF REOLA.1IlS, a IllUniclpal corporation. hereinafter referred to as .REOLAI'IDS". and hereinafter collectively referred to as "the parties hereto." RECITALS: TMs A9rel!llPnt Is lIade with knowledge of and in reference t. the following facts: Ie) The Congress of the United States has heretofore e~acted the PUBLIC WORKS A.~D ECONOMIC DEVELOp~~rlT ACT OF 1965. and particularly TITLE IX thereof. which provides for the Special Economic [)evelopllEr.t and Adjust""nt Assistance Program. the purpose of Which Is to establish new, and more effec- tive. dOOlestic aid programs for areas of high unemploynl!nt and limited indus- trial developments in which local funds for development are limited. . b) Recognizing the fact federal programs under the said Title IX are legally and administratively complex and Impose substantial demands on local leadership and staff resources; and a ...ore area-wide coordinated and united organizational structure is needed to ~ke the most effective use of such federal domestic aid programs and particularly to implement and c.rry out this area's propnsed Title IX projects, the parties hereto, on J~'y 28, 197&, entel-ed into a Uemorandum of Ik1derstanding for the purposes of pooliog their r( sourct's to apply for a planning g..ant under said Title IX. lc) The nect'ssity for additional and improved pu~1ic facilities and' - 1 - . .c. . . . . ~ . 1 2 , 4 5 , ., I , 10 11 12 13 14 ~ 15 16 17 II 19 20 21 22 23 24 2S 26 27 28 c :) -= o (( ( ( ,ervlces, stl.ulatlon of public and private economic development actlvltl!s. initiating nl!W and IIDre effective financial assfstance procedures and ftchan- isms. as required for further public and private economic developoent programs and projects, presents problem,.vhlch, on the basis of past experience, cannot be adequately ftt by individual public agencies in this area acting alone, (d) Pursuant to the joint effort arising from the tleJnorandum of I.-.der- standing of July 28. 1978, the U,S, Department of Colllll!rce. Economic Developmen has offered to the parties (represented by Fontana), EcollOllllc Adjustment ~rant No. 07-09-02069 Oto enable the Grantee to carlX.!'ut the olIjective of the Act by developing a co,""rehenslve economic adjustment program to redress an actual or threatened economic dfslocation or other adjustment problem for the area of Fontana, Rialto. Colton. San Bernardino and Redlands, California,. (e) The parties hereto have the COllllOn p_r to perform the kind of . functions and services as hereinafter described within their respective juris- dictions. (f) The parties hereto recognize that the economic problems in this area. and within their respective jurisdictions, require that the said parties coordinate their efforts in solving such economic problems by entering into this Agreement to,provide for the joint exercise of their said powers In I~le' menting the Title IX planning project described in subparagraph (d) above, and the comprehensive economic adjustment program, all in accordance with the afore ,aid Special Economit Development and Adjustment Assistance Program enacted by Congress in 1974, In carrying out these stated objectives, it is'necessary to officially establish the Joint Powers Authority pursuant to the July 28, 1976 '.lenorandum of Understanding, and to establish the structure pf the COVERIIING ROAnn of said joint powers authority by entering into this Joint Po~ers Agree- ment, - 2 - c , . 1 ~ 2 S 4 5 6 7 I , 10 II 12 l' 14 15 16 17 1& 19 20 21 22 23 24 2S 26 27 28 . o """,,", ,..; -= {', "'--' :(( l ( L: (g) This Joint Powers Agre....nt is authorized by the provisions of Titl. 1. Division 7, Ch'Pter 5 (c_ncing with Section 6500) of the Gov.rnment , Code of the St.ie of California which .uthorizes the joint exercise by .gree- ment of tWo or lOre public .genci.s of any power conrnon to them; 1lDIl. lHEREFDRE, IT IS AGREED AS fOllD:lS: ARTiClE 1 - DEFINITIONS SECTll1.l1.01. GENERAl. U11ess the context otherwise requires. the words .nd tems defined in this 'ARTlClE sh.ll. for the purposes he",of, ~.ve , the Ranings herein specified, SECTION 1.02. B. ACT ..ns Title I~Dlvision 7, Ch.pt.r 5 (COlr.n:enc- ing with Section 6500) of the Govel'l1llent-tode of the State of California. SECTION 1.03. AllIIlNISTRATlYE EXPHISE. . Administrative .xpense ....ns those sums of IIIOney required to be expended by the joint powers authority hereby created (.nd h.rein.fter c,"ed the AUTHORITY) from .n .dministr.tive expense fund to be est.blished .nd maint.ined by the AUTHORITY to fin.nce thosE costs of administering this Agree~ant .nd for c.rrying out the powers and functions authorized in this Agreement. SECTION 1.04. AUTHORITY. Al/THORITY ....ns the FIVE CITY ECONmilC DEVElOPHEIIT AUTHORITY cre.ted pursu.nt to this Agreement, SECTlo.~ 1,05, FISCAL YEAR. Fisc.l ye.r ....ns the period from July 1 to .nd including the following June 30. SECTION 1.e6. GOVERNING BOARO. GOVERNING BOARO means the GOVER.~ItIG BOARO of the AUTHORITY established pursu.nt to this Agree~.nt. SECTlll.'l 1.07. m. State ....ns the State of C.'ifornia. SECTIO~ 1.08. PROJECT PROGRESS. PROJECT PROGRESS means the Econo~ic Developmont Action Plan .nd Str.tegy for the five cities wh\ch "~ parties hereto, to be described in the Plan .nd Report to be prepared by means of the above mentioned o.velOpll'ent Grant from the Economic IIevelop"..nt Ad~in;stratior - 3 - ... ,-.-. ....~ ..c . ~ 1 2 , 4 5 6 ., I , .0 11 12 13 14 .. 15 16 17 II 19 20 21 22 23 24 2S 26 27 28 - c :) E o :(( y and including the further detailed planning. de.igning. engineering, contruc~ tion. 1euing. selling. operation and ..intenance of the specific facllltles and projects described in said Plan and Report, Dr that portion of such functjons. services and activities u are within the ll!!Jal power and authority' , I of one Dr all of ~he parties hereto. and further including all legal. allmlnis- ' trathe. financial and technical services and activities connected therewith, SECTION 1,09. DIRECTOR, A -Director ..y be .dul,- appointed by the" Gover , nlng Board 'of the'Authority and shaU'lI/lt .be a"lIeIIIber of the Governing Board. ARTIClE 11 - PURPOSE SECTlttl 2.01, PURPOSE. It is the purpo.e of tMs Agree..,nt to provide a united. coordinated. orderly. positive and effective Rans for IqllelT.enting and carrying into execution an Economic Development Action Plan and Strategy for the general benefit of all of the people of the five cities which are parties hereto. as such Plan and Strategy is I!lOre particularly described in tMs area's PROJECT PROGRESS program outlined in said Economic Development Action Plan and Strategy to be prepared with federal financial assistance provided by the Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965. This AUTHORITY is vested with power (1) to effectively i~lement. coordinate and administer the Economic Development Action Plan and Strategy above referred to, in accordance with the J'urpo.e and intent of the Special Economic Development and Adjustment Assistance Program enacted by tongre.. in 1974 a. Title IX of the Public Works and Economic Development Act of 1965. as amended; and (2) to e.tablish appropriate operating committee. and special cornmi..lon. to'assist the AUTHORITY in carrying out the foregoing purpo.e. and to assist the AUTHORITY in iqllementing economic development projects and programs to Improve the quality of life in the area. - 4 - . c c ,.-., :> '- e . ~ (" ~.I ( ',. , , .' .1 2 , 4 5 6 ., I , 10 11 12 13 14 IS 16 17 II III 20 ARTICLE III, FORMATION AND ORGANIZATION 'EClION 3.01. CREATION OF AUTHORITY. Pur,uant to the ACT. there " hereby created a pubHc entity to be known n the oFIVE CITY ECOnO:.nc DEVELOP. ME'IT AUTHORITY". heretli called "AUTHORITY". The AUTHORITY b a public entity "parate and apart from any Dr all of the component Cities arid Shall .....inist. this Agreement, SEClION 3.02, GOVERNING BOARD. .The AUTHORITY ihill be a~iniste;ed by a GOVERNING BOARD of five (5) lIIeIIlbers. One (1) IIIeIIlber shall be appointed by -- the ~or and City Council of each of the five cities which are parties heretc and each member shaTI be the Hayor or a ~mber of the City Council of the Cit) such lIleIIlber represent" provided, however. that any ~mber may appoint ~'.depul to repre,ent such member at !leetings of the GOVERnING BOARD. The GOVERNItlG 21 . ' BOARD .hall be caT led the oGOVERNING BOARD OF THE FIVE CITY ECOnOMIC DEVELOP. MENT AUTHORITY", An voting power of the 'AUTHORITY.ShaU resi de .in the GOVERN. ING BOARD. but .ay be exercised on benalf of any member by such member's duly appointed deputy. Each JleIIlber of the GOVEP.HItlG BOARD shaU serve at the pleasure of the authority that appointed him. Each member shall cease to be a ~ber of the GOVERNING BOARD Vhen he ceases to hoTd office on the governing board of the authority that appointed him. Vacancie, on the GOVERNING BOARD shall be fill, by the res~ctive .ppointing ..parties. Any member of the GOVER~nNr, BOARD of the AUTHORITY may be removed at any time in the same .onner as he was appoint, A. The members of the GOVERNING BOARD thot will take office 22 23 24 25 26 iPmediately upon the execution of this Agreement by the c\ties which are port hereto, and ~lose selection end appointment is made and confirmed by the respective governing bodies of the ,everal cities by execution of this Agre.- .~nt, are as follow,: :n 21 - 5 - c . , .. o -.J e:: /"""" ~ :<( c. ( ". , I 2 S 4 5 6 7 I , 10 , II 12 13 14 15 16 17 18 l' 20 21 22 23 24 FOIITNIA RIALTO GERALD R, EAVES.. COuncilman COlTON FRANK A. GDtliALES. Mayor SAIl IERNARDItIO E!'l4A~ !'. ~. J't.. r.auncilPtan REDlANDS , -. I B. A llemller of the City Council of any city wbich is a party here- to lilY be appointed and serve simultaneously as a member of the GOVERlIltIG BOARD of the AUTHORITY. C. No person, while serving es a IIleIIlber of the GOVER!lltlG BOARO of the AUTHORITY. shall be eligible to be appointed to any salaried office or employment in the service of the AUTHORIT'(. nor sha" such person become eligible for such appointment within one year after he has ceased to be a member of the GOVER~J/IG BOARD of the AUTHORITY. D. The IEmbPrs of the GOVER.~ING BOARD of the AUTHORITY shall serve without compensation. This shall not Iffect in any way remuneration received by a local public official who, in addition to his responsibilities IS I local publiC official, serves as I Ilember of the GOVEPJIIlIG BOARD of the AUTHORITY. or IS a deputy to I ...mb.r. All Ilembers of the GIlVER:lING BOARD of the AUTHORITY, or their duly Ippointed deputies, lilY be reimbursed for reasonable and neces- sary expenses incurred in the performance of their duties IS such IEmbers. Re- imburse"",nt of expenses shall be subject to approval of the 'GOVERNIIIG BOARD of the 1.UTHDRITY. SECTION 3.03. REGULAR .IEETHIGS. The OOVERrHNG BOARD shall provide for 2S 26 27 28 - 6 - . ....... .......,... " ,....~ :_ ~_....._:--..._.......__ ~._ _,._:_.,.. .~ ._:_:__:........_....._"':.._. . r__ '"~''''''' .c .. , I 2 S 4 5 6 , I , 10 11 12 13 14 ~ IS 16 17 II III 20 21 22 23 24 2S 26 27 28 ... o ","" ....... ...) e ~ :(r r c " its re9ular I!leetings; provided, however. that at least one regubr lleeting shan be held once each ..nth. The date. hour and ",bce of the holding of M!gubr lleetings shan be fixed by resolution of the GOVEllIllNG BOARD, and a copy of such resolution shan be filed with each party hereto. SECTION 3,04, RALPH M. IR(y'.1:'l ACT, An llleetings of the GOVERNING BOAR including. without limitation. regular, adjourned' regular and special llleetings shan be caned, noticed, held and conduc~d in accordance with the provisions of the RAlPH M. BROliN ACT (co_ncing with Section 54950 of the Government" Cod of the State of California). "- . SECTION 3,05. III NlJTES. The Sec'!ta!')' of the AUTHORITY shall cause to be kept minutes of the lI!etings of the GOVERNING BOARD and shan. as soon as possible after each meeting. cause a copy of the minutes to be forwarded to each lller.t>er of the GOVERNING BOARD and to "ach lllember city. ':. '.' SECTION 3.06. QOORUM. Three (3) lllernl>ers of the GOVER:HtIG BOARD shall constitute a quorum for the transaction of business. except that less than a quorUl!l lilY adjourn. from time to tile; provi ded that the affi nnati ve vote of at least two (2) ...mbers of the 9.lVERNING BOARD shall be necessary for the approval of any action of the GOVERNING BOARD. SECTION 3.07. .!!!!ill. n.e GOVERNING BOARD of the AlJTHORITY may adopt. from time to time, such rules and regubtions for the .conduct of its llleetings and affai rs as are necessa!')' for the purposes hereof, SECTION 3.08. OFFICE. The GOVER/liNG BOARD of the AUTHORITY may estab .lish and maintain an office within the area as it deems will best facilitate the accomplishlf.ent of the objectives and purposes of the AlJTIJORITY. SECTION 3.09. BOU'lOARIES. The FIVE elTY EeONOme I\EVELOPI':ENT AUTHORl' shall encompass an of the territory within the geographical bOllnduies of the .member cities provided, h~.<!ver. that such boundaries may be e~tended to inclu. unincorporated territory by unanimous consent of the GOVE~~JN~ nO^RD. - 7 - - ~_.. .~.. -- <>6...... .- ..... - ; ........ .' '. . I 2 :s 4 5 6 7 I , 10 II 12 13 14 IS 16 17 II 19 20 21 2;1 23 24 2.5 26 21 28 . - V .- V .:) e :(( (( ARTICLE IV - OFfiCERS A."I0 E'PLOYEES SECTION 4,01. OIAIR!-IA'I, VICE-CHAIRHA~ A"lO SECRETARY. The 6OVEI1:'IltlG BOARD shall elect a Chainnan and Vice-thainnan and shall appoint a Secretary who NY, but need not, be a amber of the 6OVER:lING BOARD. The officers shall perfo"" the duties nonnal to said offices; and A, The Chai,..n shall sign all contracts on behalf of the AUTHORITY end perfonn such other duties as NY be i....osed by the 6OVEPmN.G BOARD, ' 8. The Yice-thainnan shall act. siS!!. contracts, and perfonn all of the Chainnan's duties in the absence of the Ohainnan; and C, The Secretary shall countersign all contracts on behalf of the AUTHORITY. perfom such other duties as NY be ia;>osed by the GOVERl'IING BOARD, and keep _inutes of all lIII!elings and cause a co~y of the _inutes to b. fon..rd- ed to each of the lIII!r.t>ers of the GOVER."IIl1G BOARD and to each member CITY. SECTION 4.02. TREASURER. The Treasurer of rity nf Fnnt.n. is hereby designated as the Treasurer of the AlITHORITY and as the depositary to have custody of all the IIlney of the AUTHORITY from whatever source, The Oirector of Finance of Nty n. Fnnton. is hereby designated as the Audi tor-Controller of the AlITHORITY. The Treasurer and the Auditor-Controller shall have the duties and obligations set forth in Sections 6505 and 6505.5 of the ACT and shall assure that there shall be stric~ accountabili ty of all funds Mnd report of all receipts and dhbursements of the AlITHORITY. The City Council of the CitYllhose Treasurer is serving as Treasurer of of the AlITHORITY shall determine the reasonable charges to be made against the AUTHORITY for the services of the Treasurer and Auditor-Cont~oller. SECTION 4,03. BONDING PERSO:IS HAVING ACCESS TO PROPERTY. Fron time to . ti,"", the parties h.,."to shall designate the pUblic officers ~r persons, In . addalon to the Treasurer and Auditor-Controller, having charge of han~ling or - 8 - c o' 1 2 3 4 5 6 7 8 , 10 11 12 13 i4 _. IS 16 17 18 .19 '20 21 22 23 24 2S 26 27 28 c ,......., -.....) :J e: (( r ( :,: hiving Iccess to Iny property of the AUTHORITY. Ind the resPect;.e lmounts of the officill bonds of the Trelsurer Ind Auditor-Controller Ind such other . ~ . persons pursulnt to Section 6506.1 of the ACT. SECTION 4.04, LEGAl ~VISOR. The GOVERNING BOARD shll) ~'ect. Ippolnt e"",loy end retein the 'egll Idvlsor of the AUTHORITY. who shl" perform such duties IS ~y be prescribed by the GOVERNING BOARD. SECTION 4.05, OTHER EMPLOYEES. The GOVERNING BOARD shl" hive the pow er to Ippoint Ind employ such other officers. employees. consultants. edvlsors , end independent contrlctors es ...y be necesslry for the purposei hereof, ,SECTION 4.06. COl1PENSATlON. The GOVERmNG BOARD shall determine the cOmpensation of. end pay from AUTHORITY funds (including payment from funds which the AUTHORITY ...y retei ve from time to time in the form of federal and state grants) the salaries. wages. fees and other compensation of such plannln I engineering. legal. financial. or other techincIl end professional personnel, consultlnts. end other employees of the AUTHORITY. SECTION 4.07. NON-CIVIL SERVICE. Nothing herein contained shall be co strued as ...king the AUTHORITY I deplrtment of Iny city. or as pllclng Iny of the officers. counsel. personnel. or employees of the AUTHORITY under any for" of Civil Service or merit system or under Iny other form of specially protect, employment right or StltuS; excluding member city employees used IS in-kind servi ces. ARTICLE V - P~~ERS SECTION 5.01. GENERAL POWERS. The AUTHORITY created by this Agreement shill exercise in the manner hereinafter provided the powers common to each 01 the entities to this Agreement. As provided in the ACT. the AUTIlORITY shall be I public ent ity separat' from the parties hereto. The AUTIIORITY shall hive the po".r to administer.. carry out and implement an Economic Development Action Plan and Strate9Y for .9- ,'--'" .....,..........-. ......,....... .-...,-.-....... c c ."'"' v :J e C( r ( the taember citie$ as such plan and stratellY is hereafter designed under the planning grant descri....d above. and to further administer. coordinate, promote carry out and i",l_nt the purposes of this Agre_nt as referred to in Sectl 2,01 of ARTICLE II hereof, and. In connection therewith. the AUTHORITY shall have the power to flnallce. acquire, construct. lease. operate and ...intain . . project structures. buildings and facilities; all subject to the provisions of this Agreement, SECTION 5,02, REYEtlUE BONDS. The AUTHORITY. as a separate publfc.' enti~, shall have the power to Isslll! revenue bonds pursuant to the' laws of "- the State of Ca 11 fornla as the same now ~ads or .oay be hereafter amended. and to provide for the repa.Yll1l!nt thereof, The AlITHORITY shall also have all the powers provided for In Article 2 of the ACT (COI!IIII!ncing with Government Code Section 6540), as said ACT now reads or...y .... hereafter amended. SECTI~I 5.03.' SPECIFIC P~AERS. The AlITHORITY Is hereby authorized, In its own name, to do all acts necessary for theexerelse of the foregoing powers for the purposes of this Agreement Including, but not limited to, any or all of the following: . A. To IIlke and enter lnw contracts; B. To employ agents. employees. consultants, and independent contractors ; t, To acquire. constrllCt, nnage. ..Intain or operate any build- ings, works, or imprDvements; D. To acquire. hold or dispose of real and persona' property, Dr any interest therein, by deed, purchase, 'lease. contract, gift, devise, or othen,ise. E. To sue and be sued in its own name, except as othe~/Ise prov;, ed by law. The exercise by the AlITlIORITY of the ",",er to sue. or be sued in its own name shall be subject to the restrictions on the exercise of such - 10 - ._..._---.--..---~.....~ ._. . .....,'''~:.,--:'._~; _._.....:....~.-: .......-.,-~~""':",...,--:-,~._- c I 2 J 4 5 6 7 I II 10 11 12 13 14 -- IS 16 17 It 19 2D 21 22 23 24 2S 26 27 28 c o ,) -= {f ( " ( power applicable to the'five cities signatory he~to. An ac~ion to determine the validity of.a~ Contract may be brought pursuant to Chapter II (COClllencing with Sectlon 850), Title 10. Part Z of the Code of Civil Procedu~ of the State of California, F. To incur ~bts. liabilities or obligations, provided that no debt. liability or obligation shall constitute a debt. liability or obligation of any or an of the cities signatory he~to, G. .To apply for, accept. .receive IIIId disburse grants. loans .nd other financial assistance fl'lllll any agency of the United States of America or - of the State of California, or from IIIIY other public agency or from other sources. public or private, and expend such funds for the purposes set forth In thi s AgreeJ!lent; H. To delegate portions of its functions to an advisor.!' body or administrative entity for the purposes of program development, policy fonnula- tion or program iq>lemenhtlon; provided, however, that any annual budget of the agency to which the delegation is ..de must be approved by the GOVERlilNG BOARD of the AUTHORITY; J. To invest any IIOney in the treasury', pursuant to Section 6505.5 i . of the ACTo' as.the" AUTHORITY determines is advisable. in"the'samP.rnanner and upon the same conditions as local agencies, pursuant to Section 53601 of the Government Code of the State of California. J. To carry out and enforce all the provisions of this Agreement; K. To contract for and obtain insurance against any insurable risk reasonably anticipated to result from the exercise of any powers or functions of the AUTHORITY or the performance of any duties by the officers and employees of the AUTIIORITY; L. 10 make, adopt. amend, and repeal its bylaws, rules. ordinances, rcsol utions, and procedural reguht ions "at incons istent ,.,Ith, and to carry into - - 11 - .c . .' '. I 2 , 4 5 6 ., I , ~O II 12 13 . 14 IS 16 17 18 .19 20 21 22 23 24 2S 26 27 28 ... ,-,. '-" :.J E ./',,\ V {(: r r effect, the powers granted in and purposes of this Ag....""",nt; M. To ""rfonn such duties and functions as 11I,)I be necessary or appropriate for t"" administration and coordination of federal or state assis,ted ecollOlllic planning and developn:ent progrll!lS and projects within the geographical bo~daries of this joint JlOlI"rs authority as he....inbefo.... de- fined. I. To do and perform any and all acls necessary to participate in , federal or state assisted econOlllic developn:ent projects within i"" jurisdic- tional boundaries of the A\J1lIORITY. including~wUhout limitation, applying for, accepting and administering grants or other financial assistance from the federal govennent, the state. or other public agencies. or from any other sources. public or private. for such economic developn:ent projects; to use and expend such funds for any of the purposes as described or refer....d ~ in this Agre""",nt; and to enter into and carry out contracts or agreements in connec- tion therewith which are not inconsistent with the purposes and powers of t"" AUTHORITY as set forth in this Agreement; and O. To adopt a seal and alter it at its pleasure. SECTJON 5,04. ~. All claims and actions fOr money or damages against t"" AIlTHORITY and its officers and employees are governed by Division 3,6 (CXIIIIlI!ncing with Section 810) ..f Title J of the Government Code of the State of California. .The AUTHORITY shall be deemed a .public entHy" within the meaning of Division 3,6 of Title I of said Government Code. SECTJON 5,05. INTERESTS IN CO~Tr~CTS. The provisions of Article 4 (commencing with Section 1090). Article 4,5 (commencinp with Section 1100) and Article 4.6 (commencing with Section 1120). Chapter 1. Division 4, Title " of the Government Code of the State of California prohibiting certain finan- cial interests in public contracts shall apply to the officers. directors and em.~ 1 oyees of the AUTHORITY. - 12 - c '- . , , . , ' , -. J 2 S 4 5 6 ., . \I JO 11 J2 J3 , J4 -- JS 16 J7 J8 III 20 21 22 23 24 2S 26 27 2& . - o :J e o (: ~. :. ~ , SECTION '5.06, ENFORCEHEtlT BY AUTIIORITY. The 1IUT1I0RITY b hereby .uthorlnd to take .ny or .n legal .ctions necess~ry .nd permitted by law to enforce this Agrel!lllent, ARTICLE VI - tElHOO OF PROCEDURE SECTION 6.01, ASSUriPTlON OF RES~'SlnILITIES. Upon completion of the lnitl.l organlzation of the GOVERNING BOARD and the appointment of the Secre- t.ry .nd Legal IIdvlsor, the AUTHORITY shan proceed to carry out lts dutjes , and responsibilities .s set forth 1n this Agreement. lncluding, 'primarlly, the implementation of the Economic DeveloJl'!ll!nt Actien Plan and Strategy to be prepared as hereinabove provided. SECTION 6.02, F1tIANCIHG ACTIVITIES PRECEOIfIG CONSTRUCTlCl'I. The AUTHORITY shall secure funds or . firm commitment of funds .dequate to finance the actlvl ties necessary to be carried out prior to the ...ard of a contract for the construction of .ny public project portion of PROJECT PROGRESS, which Includes, but is not limited to. the preparation of construction plans and specifications. and the acquisition of permits. rights-of-way and land neces- sary for the construction. The AunlDRITY shall secure such funds through federal and state grants. the issuance of bonds. .dvances from the parties hereto. or from any other pro~er source or sources. or by any combination thereof, SECTION 6.03. ACTIVITIES PIHEDIlIG CmISTRUCTlON. Upon securing funds (or a firm commltr.lCnt of funds) deemed adequate by the GOVERtlHlG BO.~RD to finance the cost of the activities necessary to be carried Ollt prior to the award of a contract for the construction of any public proj;ct portion of PROJECT PIlOGP.ESS. the AUTHORITY shall proceed to contract with one or ""re engineering and/or architectural firms for the preparation of construction plans Rnd specifications. to acquire said necessary permits. rights-of-way and land, and to corry out all other .citivies ,.hich are.nece"ary to be - 13 - . - .c 0 0 :J Ir (( ~. ., .. I 2 , 4 5 6 '1 .. II 10 II 12 13 "; 14 15 16 1'1 II 19 20 21 22 23 24 25 26 27 28 perfonned prior .to the IWlrd of I contrlct for the con~truction of II1.V pubHc work~ portion of PROJECT PROGRESS. lIothing conhined in this Agreement shill be con~trued IS limiting or re~trictlng the timing ~r procedure to be followed by the AUTHORITY in obtain- ing financing required for illlplementation of PROJECT PROGRESS if some other or different procedure or timing is required by an,y federal or state agency providing financial .~~istance to the AUTHORITY, . \ SECTIlltl 6,04, PROJECT FINANCIIIG. Prior to, or upon c~letion of the preparation of construction plans and specificlltions. the AUTHORITY shall secure funds (or a finn conmitment of fuii'ds) ldequate to finance the cost of constructing any public portion of PROJECT PROGRESS. The Al1THORITY shall se- cure such funds or finn comnitClent of such funds through federal and state grants and from the issuance of revenue bonds and from other availab~e sou':'ce~. Said funds shall be adequate, with the proceed~ of prior bond issues, if any. to finance the entire cost of that portion of the public project for which said plans and specifications have been co~leted. including, but not limited to. the cost~ of repaying Idvances IIIlId. to the AUTHORITY by the parties hereto and for which repayment was a condition of such Idvanc.. the cost of all actlvities necessarily carried out by tho AUTHORITY prior to the award of a contract for the construction. interest expenses estimat.d to accrue prior to the completion of construction. and the e~timated co~t of the construction and all costs incidental thereto. SECTION 6.05. mIISTRUCTlD:1. Upon securing fund~ (or a fim co"",it- mont of funds) deemed adequate by the GOVEP~ING IOARD to fi~ance the entire co~t of con~tructing any public portion of PROJECT PROGRESS. the AUTHORITY shall proceed to contract with one or IIlre fi",,~ for the construction of each such public portion of said PROJECT PROGRESS. SrCTlO:i 6.06. OPERATlO:I A:IO r.lAlfITWAlICE. Upon tp""letion of - 14 - c 1 2 3 4 S 6 7 . , 10 II 12 13 14 - lS 16 17 II I' 20 21 22 23 24 2S 26 27 28 - - o o :) II: .f . . { C :,,: construction of eath puhlit portion of PROJECT PROGR~SS and final acceptante thereof by the GllVER~ING BOARD. the AlITIlORITY lilY operate and ...intain said l' 1 ic projett. with its own personnel. by contract with one or IIOre of the part thereto. or by contract with a third party. as delerDined by the GOV~R:llNG BO or transfer the owners.hip. operation and ...intenance to one of the parties he as IlIlY be IIOSt. consistent with the power and jurisdiction of suth party- . Pro vided. hoWever. that no such transfer shall be IIIde by the AUTHORITY in "i01o - , of an,y grant condition or regulation illlposed by any federal or state agericy t provided financhl assistante for said project..... However, AUlHO.RITY agrees to , quest approval and consent to IIIke such-transfer in those instances where it deemed to be consistent II1th the long range purpose and intent of this Aorel!'i and llhere suth transfer lIOuld be in the best public interest. ARTICLE VII - FINANCIAL PRDVISIOHS SECTIO~ 7.01. FISCAL YEAR. The fiscal year of the AUTHORITY shall be from July 1 of eath year to and including June 30 of the following year. SECTION 7.02. CONTRIBUTIONS. The several cities signatory hereto sha each contribute to the AUTHORITY the sum of one-twentieth (1/20) of the total Planning Grant amount in cash or in in-kind servites on or before completion of said Planning Grant phase. Any financial contributions other than set for above shail be mode only upon official action by the governing board of such party hereto as lilY desire to ..ke any ferther or additional contribution to the AUTHORITY. The expenditure of funds contributed to the AUTHORITY by the parties hereto shall be used only for ordinary administrative and operating expenses the AUTHO~ITY, as referred to in the Economic adjust"",nt Grant Terms and Cone tions, and for payment of fees and costs inturred or to be' incurred by the A~ ORIiY in connettion with the prepa,'ation, filinO and processing of one or ",or - 15 - .c . , -. , , I 2 , 4 5 , 7 .. I II 10 11 12 13 14 - IS 16 17 II III . 20 21 22 23 24 2S 26 27 28 - o ..."'" V :J e: :C. r applications for feelerill financial assistance requi~d for the i...lt!llltntation ' the Ec_ic Development Action Plan and Strategy as referred to hereinabove i this Agreement, SECTION 7.03, ADVANCES. In addition to the financial contributions ~e- quired to IN! _de by e~h party hereto as set forth in SECTION 7;OZ above. eac of the parties to this AgrHment ..y ad.ance to the AUTHORITY money in such suo as IllI1 be mutua"y agreed upon by such party and the r.oVERtIlNG BOARD of the AUTHORITY, An 8IIOunt equal to all advances so IIllde by each party. plus I~tere thereon at a rate to be IIUtilal1y agreed upon by the. AUTHORITY 'and:the"party'.ma - . . ." .' . .nif sucli advance. shall be repaid by the -AUTHORITY in cash, but only (rOm the proceeds of federal grants. state grants. the sale of revenue bonds of the AUT ORITY. or such other construction funds as the AUTHORITY designates. Repaymen 511.11 be lllade by the AUTHORITY at such time or times as the AUTHORITY and the porty making such advance shall mutually agre~ at the time such advance is mad SECTION 7.04. ANllUAl BUDGET. A. The GOVERNING BOARO of the AUTHORITY shall, on or before ~l.rch of each year. prepare and submit to each party hereto a budget estimate of the expense of conducting the AUTHORITY for the ensuing year. B, The budget estlmilte Shall be:in such' form as.the GOVERNING .BOA _y prescribe using the guidelines of the California State Controller, The bu get estimate shall contain a summary of the fiscal policy of the AUTHORITY for the budget yeilr and !.hall Inclu.de dilh showing the relation bet"een the tobl proposed expenditures and the total anticipated income or other means of finan cing the budget for the ensuing year. contrilsted with the corresponding dato f the current yeilr. The budget..y be published. The budget, esttmate may in- clude the unappropriated balance item to be available for ilpproprlation in the ensuing fisCill yeilr to ..et contingencies other than continge~cies resulting from teq>orary insufficiencies in the ~venues of the AlITHORITY. - 16 - - - . t~"""'" . . \.....-. o 1"+..... U :) << Cr. ~ " ( ( \ C. lifter submission of the budlJet estimate, the GOVEJUIttNG BOAlUl shall fix a time ana a place for hearinlJ by the GC1\IEItNING BOARD th~reon. The GOVERNING BOAIUl shall cause notic of such hearinlJ to be publishec! at l.east ten (10) clays prior to the 4at.. set for hearinlJ in a n....spaper of general circula~on , the area pursuant to Sections 6060 and 6061 of tbe Goverlllllent C' of the Stat'; of California, and shall"ilive lIlllil';a notice of sue: . . hearinlJ to each party to this IIlJreement. lit the budlJet hearinlJ the GOVEItNIllG BOARD may increas, or decrease any item in the budlJet estimate and Dlay elelete any item therefrom or add any new item thereto. V,pon the conclusion of the budget hearing and not lat, than May 1 of each year the GOVERNING BOARD shall ap?rove the budget estimate as submitteel to the parties hereto or as revisec by the GOVERNIllG BOARD, and thereupon the same shall constitute the final budlJet for the ensuing fiscal year. The several ~tems of the final budget shall be aeeJiled appropriateel for the ensuing fiscal year in the emo:.:r.ts and for . the purposes spec:ifieel in the final budget- SECTION 7.05. JmCORDS "NO ACCOm.-rs, The AUTlIORIT'.l shall cause to be kept accu~ate and correct bOOKS of Account, sho~in9 de~nil the costs of administration, bond interest, bond xed~~ptil operation and maintenance, and all financial trans~ctions of the ^UTEORrTY. Said books of eccount shell be open to inspection at nil times by any :-cp::-csentiltive of any of the pArties hereto,. or - 17 - - . .c ,-.. 0 :) e V . (c. l C .. , ,. , . ..... '. .- 1 2 3 .c 5 , 7 . , 10 11 12 13 .. 14 15 16 17 18 19 20 21 22 23 24 25 ,,, ( ( , by any accountant or other person authorized by any party hereto inspect sald'bool<s of account, 'J'he Auditor-Controller shall, in . cordance with Section 6:i05 of the ACT. cause the bool<s of accoun and other financial, records of the AU:rHORITY to be audited annua: . . AATI7LE VHI - A!U1ITRATION SECTION 8.01. JIR!lITRATION OF DISPUTES AND CONTROVERSIES. . . All cDnaoversies and disputes between the parties hereto arisin! - . out of an actio!, or decision of the AtlTHORITY shall be settled b) arbitration in accordance with the provisions of this ARTICLE VI] Within ten (10) days after the action or decision has been taKen. the agsrieved entity shall sive written notice to the GOVERNING BOARD of the AU:rHORITY and the other entities that it desires arbiaation, stating the controversy to be arbitrated, Within ten (10) days thereafter, the aggrieved entity and the GOVERNI~G BOA1l shall each select one arbitrator, and within ten (10) additional days after their selection, the two (2) aribtrators shall select a third arbitrator. The hearing shall be conducted within fiftee (15) days after the nOlllinati.on of the third arbi aat~r and shall be resaicted to matters relative to that stated in the notice requesting arbitration. Each entity shall be given an Opp:>rtunit; to be heard and to present evidence. Within ten (10) days after the conclusion of ~he hearing or bearings, the ~bitrato:s shall . . state ~~eir findings of fact. conclusions o~ law and decision in writing, and shall sign the same anc deliver one signee copy thereof to each entity, Such decision Or award shall be final and binding upon the GOVElU'IIING DO!\..'U>, a"cJ upon eacl, entity, 11 major1t~ . , - '16 -. c , . ..' ~ . I 2 , 4 5 , ., B , 10 II 12 13 . 14 -- IS 16 17 IS 19 20 21 22 23 24 25 26 27 2B c ,,-.... V '\ -.J E t. ~ ~: finding shall govern ff the arbitrators' .tel'lllnatlon is not unanimous. The aggrieved entity, and the GOVERNING BOARD. shall each pay the expenses of their respective arbitrators, The costs and expenses of the third arbitrator, and the administrative costs of arbitration shall be shared equally between the aggrieved entity art<! the GOVER.'lIN~ BOARD. Each party shall pay Its own attorney fees. ARTICLE IX - lIRHINATlON \ SECTION 9,01. l!.!!!!. This Ag.......nt shall be dated the'date of execu- tion of this Agreement by the last of the .fi.....parties hereto that executed this Agreement and shall be effective on-the date hereof and shall continue until rescinded or terminated by agr.e...nt of all of the parties hereto. SECTION 9.02. DISPOSITlO,'1 OF ASSETS. On the termination of this Agreement. all surplus IIlOney of the AlITHORITY shall be returned to the res~ pective parties hereto in the same proportion that the total of all a,,',unts paid by each party hereto. pursuant to ARTICLE VII hereof. during the term of this Agreement, bears to the total of such amounts paid by all the parties hereto. On theLtermination of this Agreement, all property of the AlJTHORITY. both real and personal. shall be divided among the parties hereto in such termination manner as shall be agreed upon by the p~rties hereto upon/Of this Agreement or as c1etennined by arbitration as herein provldea. and. until such division is agreed upon or othen/ise detennined by arbitration, shall be held In trust by the Treasurer for all the parties hereto. ARTICLE X - HISCEllA~EOUS PROVISIO~S S[CTIO~ 10.01. NOTICES. Notices hereunder shall be sufficient if delivered to: . 19 - a. ...._.._ ..._.._.._... -.. - _.~....., "......... ...... .... "-'.-'.'- .......-.........----.... c . c :> o -= (( ~ CITY OF FONTANA City Hall 8353 Sierra Avenue Fontana. California CITY OF RIALTO City Hall 150 S. Palm Aytnue Rialto. California 92376 CITY OF CO!. TON City Hall 650 N. LaCadena Drive Colton, California' CITY OF SAN BERNAROIIIO City Hall 300 N, 00" Street . San J1ernardino. California .. \ -- CITY OF REOLA.~OS City Hall Iledlands. California 92373 . SECT10I1lO.02, Ai-lEIl!JlENT OF AGREHlEtlT. This A9ree...ent may be amended by an agl'ftlllent approved by all of the entities hereto, A;>proval of the GOVERNING BOARD of the AUTHORITY shall not be required for amendment of this Agreement. SECTIIJI10.03. PARTIAL INVALIDITY. If anyone or DlDre of the terns, provisions. secti~ ~romises. covenants or conditions of ~his Agreement shall to any extent be adjudged invalid, unenforceab.le. void or voidable for any reason ""atsoever. by a court of competent jurisdiction, each and all of the remaining tems. provisions. promises, covenants and conditions of this Agree- m.ntshall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law, SECTION 10.04. HEADINGS. The section headings in ~his Agreelrent are for convenience only and are not to be construed as modifying or governing the language in the section referred.to. SECTION 10.05. CO~ISErlT. llhenever in this Agreenll'nt any consent or approval is re'luired, the $Arne shall not be unreasonably.withheld. - 20 - . , /'"" 1.....,. ." t. ., , . . . . ' ' . '. ,~:". . c. ..' .".- , "- I 2 S .4 5 6 7 B , 10 11 12 13 14 ." 15 16 17 IS lp. . 20 21 22 23 24 2S 26 27 28 o o - ...) -= (( ~ \ '. SECTION 10,06. LIlY GOVERNIlIG. This Agreetllent is ..de In the State of California under the constitution and laws of such State and h to be SO construed, SECTIOI110,07. SIItCESSOP.S. ThfsAgreement shall be binding upon and shall inure to the bene,fit of the successors of the parties, IN WITNESS IIllEREOF. the parties hereto have call5ed thh Agreement to be executed and Ittested by their proper officers thereunto duly lothorlzed. , ' IIld their officlll sells to be hereto Iffixed, IS. of the day In~ year first lbove written. - , .., ?~T":"(j '. 7' . ) -n .. ,-.{ '. . ( .' . .' - .....{.~.l"I.~i..'~ )" .', hT...~.I'~ . Patricia H. Hurray~ City Clerk , (SEAl) '. ~ .'. , :ZHA f.ra!lk Horzon, , . ~.. tIT;!,F R~ ALTO ~ By df2 J;/A /....- CITY !IF COLTON ~p_/u 6~4d FRAfIK A. ~AlE , Mayor . (SEAL) ATTEST: ".V, I? _ J c. 71f:....-J HELElI A, R^,"OS. City Clerk (SEAL) ATTEST: /~~u.u. '~4"'f ~ (SEAL) ATTEST: 4 (2 ~7 /1 "7~' ~ (SEAL) CITY OF REDL'.ND~ .' ,/ '!( r.,-H, By.~/.t1tw:.. . c...l.l....~l.l. . B.y - 21 - .-...._.._...~. . -.' '-' - ..-..~..._- ..~. ,'-' .' ........~..-~-- .......'.-~---......~........... . -.._......-:-._.....,._.........,.~_....__......-