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HomeMy WebLinkAbout31-City Attorney -.,...-... o o 1 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CERTAIN MEMBERS' SE'!"rLEMENT AGREEMENT AND A CERTAIN JOINT EXERCISE OF POWERS AGREEMENT CREATING AN AGENCY TO BE KNOWN AS THE SAN BERNARDINO REGIONAL AIRPORT AUTHORITY 2 3 4 5 6 7 charter 8 9 10 11 12 13 WHEREAS, the city of San Bernardino (the "City") is a city, duly created and existing pursuant to the Constitution and the laws of the state of california; and WHEREAS, the City is a memDer of the Inland Valley (the "Agency") which is a joint powers its members Development Agency authority formed by the legislative bodies of pursuant to section 6500, n DR., of the California Government 14 Code; and 15 16 WHEREAS, the Agency was formed for the purpose of 17 determining whether the redevelopment of Norton Air Force Base 18 ("NAFB") and properties adjacent and in proximity thereto is 19 feasible for the purposes of preserving and creating employment 20 opportunities necessitated by the announced closure of NAFB; and 21 22 WHEREAS, in connection with the formation of the Agency 23 and the undertaking of certain redevelopment actions, certain 24 legal actions were initiated by the City of Redlands; and 25 26 WHEREAS, in connection with the initiation of the 27 aforementioned legal actions by the city of Redlands, the City of 28 III - 1 - 43/ , o o 1 Highland and certain other parties made appearances on behalf of 2 their own interests; and 3 4 WHEREAS, the parties to the aforementioned legal 5 actions have been in negotiations in attempts to resolve their 6 differences and as a result of such negotiations the City of 7 Redlands and the city of Highland are now prepared to enter into 8 a certain settlement agreement with the Members of the Agency and 9 the East Valley Association entitled "Members' Settlement 10 Agreement", a copy of which is attached hereto as Exhibit "An and 11 incorporated herein by this reference; and 12 13 WHEREAS, in connection with the execution and approval 14 of the Members' Settlement Agreement, the parties thereto, with 15 the exception of the East Valley Association, have deemed it 16 desirable to seek the approval and execution of a certain "Joint 17 Exercise of Powers Agreement Creating an Agency to be Known as 18 the San Bernardino Regional Airport Authority (the "Airport 19 Authority Agreement"), a copy of which is attached hereto as 20 Exhibit "8" and incorporated herein by this reference; and 21 22 WHEREAS, the City at this time deems it desirable to 23 enter into the Members' Settlement Agreement and the Airport 24 Authority Agreement in order to accomplish the goals and 25 objectives as set forth therein. 26 III 27 III 28 III - 2 - o o 1 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 2 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 3 4 SECTION 1. The Mayor and Common Council of the City 5 (the "Council") hereby approves the Members' Settlement Agreement 6 as attached hereto as Exhibit "A" with any such non-substantive 7 changes as may be approved by the Mayor and city Attorney. 8 9 SECTION 2. The Council hereby approves the Airport 10 Authority Agreement as attached hereto as Exhibit "B" with any 11 such non-substantive changes as may be approved by the Mayor and 12 the city Attorney. 13 14 SECTION 3. The Mayor and city Clerk are hereby 15 authorized to execute the Members' Settlement Agreement and the 16 Airport Authority Agreement on behalf of the city and take all 17 such other actions as may be necessary in order to implement the 18 provisions of the Members I Settlement Agreement and the Airport 19 Authority Agreement. 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III - 3 - o o 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CERTAIN MEMBERS' SETTLEMENT 2 AGREEMENT AND A CERTAIN JOINT EXERCISE OF POWERS AGREEMENT CREATING AN AGENCY TO BE KNOWN AS THE SAN BERNARDINO REGIONAL 3 AIRPORT AUTHORITY 4 SECTION 4. This ReSOlution shall take effect upon 5 its adoption. 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly 8 adopted by the Mayor and Common council of the City of 9 San Bernardino at a meeting 10 thereof, held on the 11 12 13 14 15 16 17 18 19 20 21 day of , 1992, by the following vote, to wit: council Members: AIH BAn ABSTAIN ABSENT ESTRADA REILLY HERNANDEZ MAUDSLEY MINOR POPE-LUDLAM MILLER City Clerk The foregoing resolution is hereby approved this , 1992. day of 22 23 Approved as to form and legal content: 24 25 26 27 28 Mayor of the city of San Bernardino JAMES F. PENMAN city Attorney B~/)~ CSBOIClOO7\DOCI" - 4 - o 0 1 EXHIBIT "A" 2 MEMBERS I SETTLEMENT AGREEMENT 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CSJl()IOOO7IDOC 04\1CM2 100 o o MEMBERS' SETTLEMENT AGREEMENT by and among County of San Bernardino city of San Bernardino city of Lama Linda city of Colton City of Redlands city of Highland and East Valley Association 0 0 TAIILB OJ' COIlTIOlTS 1. INTBRRBLATIOBSBIP OJ' AGllBBMDlTS Section 1.1 Members' settlement Agreement . 2 section 1.2 Agency Agreement . . . . . . . . . . . 2 Section 1.3 Authority Agreement . . . . . . . . . . . 2 2. POWBRS HI) COOPBIlATIOB Section 2.1 Authority powers Exclusive . . . . . . . 2 section 2.2 cooperation in Goals . . . . . . . 3 3. RBSOLUTIOB OJ' LBGAL ACTIOBS Section 3.1 stipulated Judgment . . . . . . . . . . . . . 3 Section 3.2 Release by Redlands, Highland and the Association . . . . . . . . . . . . . . 3 Section 3.3 Release by Agency and Members . . . . . . 3 section 3.4 No Admissions . . . . . . . . . . . . . . . 3 section 3.5 prior Attorneys' Fees and Costs . . . . . . . . 4 4. llp1l!n,[B8 Section 4.1 All Legally Available Remedies . . 4 Section 4.2 JuriSdiction . . . . . . 4 Section 4.3 Attorneys' Fees . . . . . . . . . . . . 4 5. GBBBRAL PR0VI8IOB8 Section 5.1 Scope of Agreement; Successors in Interest . . 4 section 5.2 Amendments and Assignments . . . . . . . 5 Section 5.3 California Law . . . . . . . . . . . 5 Section 5.4 Indemnification . . . . . . . . . . . . 5 section 5.5 waiver . . . . . . . . . . . . . . . . . . 5 Section 5.6 severability . . . . . . . . . . . 6 section 5.7 Execution in Counterparts . . . . . . . . . 6 section 5.8 Effective Date of Agreement . . . . . 6 EXHIBIT "A" - AGENCY AGREEMENT EXHIBIT "B" - AUTHORITY AGREEMENT EXHIBIT "C" - STIPULATION FOR SETTLEMENT AND ENTRY OF JUDGMENT EXHIBIT "D" - JUDGMENT CSIIO\lIOO1\DOC lMIIO\92 100 (i) o o HBMBBlUI' SBftLBIDD1T AGllBBIUDIT This Aqreement is entered into this day of 1992, by and amonq the COUNTY OF SAN BERNARDfiiO ("County"), the CITY OF SAN BERNARDINO ("City"), the CITY OF LOMA LINDA ("Lema Linda"), the CITY OF COLTON ("Colton"), the CITY OF REDLANDS ("Redlands"), the CITY OF HIGHLAND ("Hiqhland") and the EAST VALLEY ASSOCIATION (the "Association"). RECITALS WHEREAS, in January and February of 1990, the County of San Bernardino and the cities of San Bernardino, Colton and Lema Linda (collectively, the "Members") entered into an aqreement (the "Aqency Aqreement") to form the Inland Valley Development Aqency (the "Aqency"), a joint powers authority with certain powers of a redevelopment aqency under the authority of Health and Safety Code Section 33320.5: WHEREAS, in March of 1990, Redlands filed case No. 255222 in the San Bernardino superior Court, a complaint to invalidate the formation of the Aqency: WHEREAS, in April of 1990, the Aqency filed a cross- complaint in Case No. 255222 seekinq to validate the formation of the Aqency: WHEREAS, appearances were also made in case No. 255222 by Redlands Unified School District, San Bernardino City unified School District, San Bernardino County superintendent of Schools, Colton Unified School District and San Bernardino Community Colleqe District (COllectivelY, the "Schools") , Hiqhland and the Association: WHEREAS, in June of 1990, Redlands filed Case No. 256889 in the San Bernardino Superior Court, a petition for writ of mandate challenqinq the environmental analysis of the formation of the Aqency: in Auqust of 1990, Redlands amended the petition to challenqe the environmental analysis of the Plan and to include a complaint to invalidate the Plan and the proceedinqs related thereto, a complaint for declaratory relief and a complaint for injunctive relief: and, in March of 1991, Redlands filed a Second Amended Complaint and Petition: WHEREAS, appearances were also made in Case No. 256889 by the Association, the Schools and Hiqhland: ClIIIO\OlI01\Il 04\111\92 100 -1- o o WHEREAS, the Schools have resolved the disputes with the Agency and have filed stipulated judgments to that effect; and WHEREAS, the parties desire to resolve the disputes between them that are eDlJ'v'w'ied in Case No. 255222 and 'Case No. 256889 (both of which cases have been consolidated and transferred to orange County superior Court as Case No. 680255, but which will be referred to herein by their San Bernardino superior Court case numbers) by the terJlls and conditions in this Settlement Agreement. NOW, THEREFORE, the parties agree as follows: 1. IIlTBllRBLATIORSBIP 01' AGllBBllDTS Section 1.1 Members' Settlement Aareement. T his Settlement Agreement shall be referred to hereinafter as the "Members' Settlement Agreement." section 1.2 Aaencv Aareement. cont~aneously with this Settlement Agreement, the Agency is entering into a Settlement Agreement by and among the Inland Valley Development Agency, the City of Redlands, city of Highland and East Valley Association (the "Agency Settlement Agreement"). The Agency Settlement Agreement shall be in the form attached hereto as Exhibit "A" and incorporated herein by reference. Neither the Agency Settlement Agreement nor the Members' Settlement Agreement shall be of any force or effect until the other Agreement has been executed in full and the requirement of section 1. 3 below has been satisfied. section 1.3 Authoritv Aareement. It is contemplated by the parties to this Members' Settlement Agreement that the parties hereto, with the exception of the Association, shall enter into that certain agreement entitled "Joint Exercise of Powers Agreement creating an Agency to be Known as the San Bernardino Regional Airport Authority" (the "Authority Agreement"). The Authority Agreement shall be in the form attached hereto as Exhibit "B" and incorporated herein by reference. This Members' Settlement Agreement shall only bec01lleeffective upon the successful formation of the Authority as set forth in the Authority Agreement, and upon compliance with section 1.2 above. 2 . P01fBRS AND COOPBRATIOII section 2.1 Authoritv Powers Exclusive. The Authority's powers set forth in the Authority Agreement shall be exclusive. The Authority's inherent powers are restricted by the Authority Agreement and the Authority shall have no legal authority to act, except as set forth therein, and except as otherwise provided by law. The Members shall not own, develop, operate or maintain, or exercise any form of control with respect to, the Airport Facility (as defined in the Authority Agreement) except as CSIIO\OlllI7\II92 0I11ll\92 100 -2- o o specifically provided in the Authority Aqreement and under the cirCUJllstances set forth therein or otherwise as may be agreed to by the Authority. The Members shall take no steps, nor shall they cause steps to be taken, that would be contrary to the provisions of this section, such as, but not limited to, seeking or causing to be sought the transfer of the Airport Facility to any entity other than the Authority, except for a transfer to the county of the operational control of all or a portion of the Airport Facility under the conditions described in Section 12(b} of the Authority Aqreement, unless the Authority is terminated pursuant to the Authority Aqreement. Section 2.2 Cooneration in Goals. The parties to this Agreement aqree to cooperate in the furtherance of the goals and objectives of the Agency settlement Aqreement and the Authority Aqreement. In addition, the county aqrees to abide by the provisions of sections 5.2 and 6.1 of the Agency settlement Agreement. 3. RESOLUTZOII OF LEGAL AC'J!ZOIlS section 3.1 stinulated .Tudament. U P 0 nth e execution by all parties of this MemberS' settlement Aqreement, and the Agency Agreement and the Authority Aqreement in the forms attached hereto, the parties will execute and file a "stipulation for Settlement and Entry of Judgment" in Case No. 255222 and Case No. 256889 as attached hereto as Exhibit "C" and incorporated herein as if set forth in full, seeking a "Judgment" in the form attached hereto as Exhibit "0" and incorporated herein as if set forth in full. Both Exhibit "C" and Exhibit "0" are with regard to judgment on the Complaint and judgment on the cross-Complaint. Section 3.2 Release bv Redlands. Hiahland and the Association. Redlands, Highland and the Association hereby release and discharge the Members and their agents, representatives, attorneys, principals, predecessors, successors, assigns, and each of them, from any and all claims and causes of action contained in Case No. 255222 or Case No. 256889. Section 3.3 Release bv the Members. The Members hereby release and discharge Redlands, Highland and the Association and their agents, representatives, attorneys, principals, predecessors, successors, assigns, and each of them, from any and all claims and causes of action contained in Case No. 255222 or Case No. 256889. Section 3.4 No Admissions. The parties aqree that nothing contained in this Members' Settlement Aqreement shall be construed as an admission against the interest of either party, and aqree that this Members' Settlement Aqreement releases the parties CSIIOIOlI07\IlO204\ICl\92 100 -3- ..1 o o from any guarantees and warranties, of every nature, whether expressed or implied, which may have been given by one party to another except as expressly set forth herein. The execution of this Members' Settlement Agreement effects a settlement of claims which are contested and denied. There are no admissions of 11abi11 ty. Section 3.5 Prior Attornevs' Fees and Costs. All parties to this Members' settlement Agreement shall each be responsible for their own attorneys fees, costs and expenses and all other costs and expenses incurred in connection with the actions filed by Redlands as Case No. 255222 and Case No. 256889, and the cross-actions filed by the Agency and its Members in Case No. 255222, and the settlement thereof. 4 . llBKBDl:BS The remedies for breach or threatened breach of this Members' Settlement Agreement are as follows: section 4.1 All Leaallv Available Remedies. In the event any party breaches this Members' Settlement Agreement, or such a breach is threatened, any other party to this Members' Settlement Agreement together or separately or in any combination, shall each have the right to pursue any and all available remedies, at law or in equity, on a non-exclusive basis, including, without limitation, enjoining any such breach or threatened breach and seeking specific performance of this Members' settlement Agreement. section 4.2 Jurisdiction. Any legal action regarding this Members' Settlement Agreement shall lie in the superior Court of the state of California in the County of San Bernardino or, if applicable, in the united States District Court of the Central District of California, provided that any party shall have the right to petition the court for a change of venue as provided by california law. At their option, any party to this Members' settlement Agreement may seek specific enforcement of a provision of this Members' Settlement Agreement before, contemporaneously with, or after giving the defaulting or adverse party notice of the violation of such provision. section 4.3 Attornevs' Fees. In the event a legal action is initiated under this Members' settlement Agreement, the prevailing party shall be entitled to collect its reasonable attorneys' fees and costs. 5. GENERAL PROVISl:OHS CSIIOIlJ(I07IDO 04\10\92 100 -4- o o Section 5.1 SCODe of Aareement: Successors in Interest. This Members' Settlement Agreement binds the parties individually, collectively, jointly and severally. This Members' Settlement Aqreement shall be bindinq upon and shall inure to the benefit of the officers, aqents, successors, assiqns and transferees of the parties. Section 5.2 Amendments and Assianments. This Members' Settlement Aqreement may only be altered, amended or modified by an instrument in writinq that is executed and approved by all of the parties. No party may transfer, assiqn or convey any riqht or obliqation it has under this Members' Settlement Aqreement without first obtaininq the written approval of all of the other parties. section 5.3 California Law. This M~s' Settlement Aqreement is subject to and shall be construed in accordance with the laws of the State of California. Section 5.4 IndeDlnification. a. The Members shall indemnify and hold Redlands, Riqhland and the Association hlU"lllless from, aqainst and in respect of any loss, liability or damaqe suffered or incurred by Redlands, Riqhland or the Association in connection with or as a result of any action taken (or not taken) by the Members pursuant to the terms of this Members' Settlement Aqreement. b. Redlands, Riqhland and the Association shall each indemnify and hold the Members harmless from, aqainst and in respect of any loss, liability or damaqe suffered or incurred by the Members in connection with or as a result of any action taken (or not taken) by Redlands, Biqhland or the Association, respectively, pursuant to the terms of this Members' Settlement Aqreement. c. If any action or claim shall be brouqht or asserted with respect to which indemnity may be souqht pursuant to this Members' Settlement Aqreement, the indemnified party or parties shall promptly notify the indemnifyinq party or parties in writinq and the indemnifyinq party or parties shall promptly assume the defense thereof. section 5.5 Waiver. The waiver by any of the parties of any breach of any term, covenant or condition of this Members' Settlement Aqreement shall not be deemed a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition of this Members' Settlement Agreement. Failure to act or subsequent acceptance of performance hereunder by any party shall not be deemed to be a waiver of any preceding breach of any term, covenant or condition of this Members' Settlement Agreement, regardless of the party's knowledge CSIIOIOOO7IDOCI 041\Cl\92 100 -5- o o of such preceding breach at the time of acceptance thereof, nor shall any failure on the part of any party to require or exact full and complete compliance with any of the covenants or conditions of this Members' Settlement Aqreement be construed as changing in any manner the terms hereof or preventing the party from enforcing in full the provisions herein. section 5.6 Severabilitv. If any part, term or provision of this Members' Settlement Aqreement is decided by the courts to be illegal or in conflict with any law of the united States of America or the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. section 5.7 Execution in countemarts. This Members' Settlement Agreement may be executed in counterparts and all counterparts so executed shall constitute but one aqreement. Section 5.8 Effective Date of Aareement. This Members' Settlement Aqreement shall not be effective or binding on any party hereto until such time as the Agency Settlement Agreement has been fully executed and the Authority has been formed in the form attached hereto as Exhibit "B". Formation of the Authority shall be deemed to have occurred at such time as the final public entity through its legiSlative body has approved the joint exercise of powers aqreement to establish the Authority. As soon as practicable after the effective date of this Members' Settlement Agreement, counsel for Highland, counsel for Redlands and the Association shall file with the Superior Court of San Bernardino County, the fully executed "StipUlation For Settlement and Entry of Judgment" and a "Judgment", and counsel for the Agency shall similarly file the fully executed "stipUlation for Settlement and Entry of Judgment" and a "Judgment", which Judgments shall be as attached hereto in executed and final form as Exhibits "C" and "0". CSBOIOlllIl\DOC92 04\ICl\92 100 -6- L o o Executed on the date first written above by the duly authorized representatives of the parties. COUNTY OF SAN BERNARDINO By: Title: Dated: (SEAL) ATTEST: Clerk of the Board of supervisors Approved as to Form: County Counsel CIIIIO\IIlI01\D 04\11Mn 100 -7- o (SEAL) ATTEST: city Clerk Approved as to Form: ~~ jCity Atto ey CSIIOIOOO'7\DOC 04\1C1192 100 o CITY OF SAN BERNARDINO, CALIFORNIA By: Title: Dated: -8- (SEAL) ATTEST: o City Clerk Approved as to Form: City Attorney CSIIO\IXlO7\DOC 04\111\92 100 o CITY OF LOMA LINDA, CALIFORNIA By: Title: Dated: -9- o (SEAL) ATTEST: city Clerk Approved as to Form: city Attorney C8Jl()IIIlIlll\ 04\10\92 100 o CITY OF COLTON, CALIFORNIA By: Title: Dated: -10- o (SEAL) ATTEST: city Clerk Approved as to Form: Attorney for Redlands CSIIO\llOl17IIl 04\\11\92 100 o CITY OF REDLANDS, CALIFORNIA By: Title: Dated: -11- o (SEAL) ATTEST: city Clerk Approved as to Form: city Attorney CSIIO\OOO7IDOCI 04\1Cl\92 100 Il:l II o CITY OF HIGHLAND, CALIFORNIA By: Title: Dated: -12- CSIlOIOlllIl\D092 04\111092 100 o o EAST VALLEY ASSOCIATION By: Title: Dated: -13- ~ o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .iIIIL 011 o EXHIBIT "B" AIRPORT AUTHORITY AGREEMENT L:J 1Sl o o JOINT EXERCISE OF POWERS AGREEMENT CREATING AN AGENCY TO BE KNOWN AS THE SAN BERNARDINO REGIONAL AIRPORT AUTHORITY This Agreement, dated for convenience as of , 1992, is made by and among the County of San Bernardino, City of Colton, city of Highland, city of Lama Linda, city of Redlands and city of San Bernardino (hereinafter sometimes collectively referred to as the "Parties"). WIT N E SSE T H WHEREAS, Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California pertaining to the joint exercise of powers authorizes the Parties by agreement to jointly exercise certain powers common to the Parties; and WHEREAS, the parties hereto recognize the importance of determining the value of the potential civilian aviation use of Norton Air Force Base and its resulting possible benefit to the entire East Valley region, all as may be determined by land use, aviation and environmental studies required to be undertaken by the Authority pursuant to the California Environmental Quality Act of 1970, as amended ("CEQA"); and WHEREAS, each of said Parties agrees that a regional approach is desirable to both (i) direct the policies and activities of a civilian aviation facility at Norton Air Force Base and (ii) acquire, own, maintain and operate the aviation related portions of Norton Air Force Base for all aviation uses as may be legally permitted upon such property, or such other uses as may be legally permitted and as may be determined by the Authority all in accordance with CEQA procedures to be hereafter complied with by the Authority; and acquire, facility; WHEREAS, operate, and each of the Parties hereto has the power to repair, maintain and administer an airport WHEREAS, it has been agreed by each of the Parties that the interests thereof, as well as of the public in general, may be served if those portions of Norton Air Force Base to be transferred by the federal government upon closure, namely the airfield and aviation support areas of Norton Air Force Base (herein sometimes referred to as the "Airport Facility," as is presently described in the Base Reuse Plan of the Inland Valley Development Agency and as further depicted on the map of Norton Air Force Base as attached hereto as Exhibit "A" and incorporated herein by reference, subject to expansion or reduction by determination of the federal government upon transfer thereof), is continued as a publicly- CSBOOOI2IDOCII 4\11\92 1130 -1- o o owned, operated and maintained airport, pursuant to the applicable federal and state of California laws, under the operational control of a joint powers authority created by the Parties in this Agreement; and WHEREAS, it is the intent and desire of the Parties to enter into an agreement to establish a public entity, separate and apart from the Parties hereto, as hereinafter described and set forth, which entity shall then set about the task of accomplishing the abov~ described general purpose in a manner most capable of promoting the greatest public good and welfare; and WHEREAS, the Parties hereto recognize the immediate necessity for planning for the scheduled closure of Norton Air Force Base and the need to determine the manner in which to utilize the aviation facilities of the Norton Air Force Base, as depicted on Exhibit "A", after closure to attract business, create jobs and improve the quality of life for the citizens of the East Valley; and WHEREAS, the Inland Valley Development Agency was previously formed by several of the Parties pursuant to Health and safety Code Section 33320.5, to have and exclusively exercise powers of a redevelopment agency within a previously designated redevelopment project area in furtherance of the redevelopment thereof, and the Inland Valley Development Agency shall act as the redevelopment agency, legislative body and planning commission with respect to all approvals and actions required in connection with the adoption of the Redevelopment Plan; provided, however, all land use, planning and development decisions with regard to the land within the redevelopment project area shall continue to be under the control and jurisdiction of each of the respective local legislative bodies or planning commissions, as applicable; and WHEREAS, the State Legislature enacted Health and Safety Code Section 33320.5 to assist communities within the County of San Bernardino in their attempt to preserve the military facilities and installations for their continued use as airports and aviation related purposes. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND CONDITIONS HEREINAFTER CONTAINED, THE PARTIES AND EACH OF THEM, DO AGREE HEREBY AS FOLLOWS: Section 1. PurDose. This Agreement is entered into pursuant to the provisions of Article 1, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code of the State of California (herein sometimes referred to as the "Act") relating to the joint CSBOOOI2\DOC\1 4\17\92 1130 -2- o o exercise of powers common to public agencies (in this case the parties to this Aqreement, each of which is authorized to contract with the other pursuant hereto) and is made for the purpose of enabling the Parties to exercise their powers jointly in a certain "project", described as the acquisition, operation, repair, maintenance and administration of the aviation related portions of the Norton Air Force Base as a public airport, as depicted on Exhibit "A", pursuant to applicable federal and state of California laws. Each of the Parties has the powers necessary to accomplish this Agreement. The foregoing purposes will be accomplished and the common powers exercised in the manner hereafter set forth. Section 2. Authoritv. A. creation of the Authority. Pursuant to the Act, there is hereby created a public entity, separate and apart from the Parties hereto, to be known as the "San Bernardino Regional Airport Authority" (hereinafter referred to as the "Authority"). The debts, liabilities and obligations of the Authority do not constitute debts, liabilities or obligations of the parties. B. commission of the Authority. (1) The Authority shall be governed by a Commission composed of seven (7) individual members, each serving in their individual capacity as a Member of the commission. The Commission shall be called the "San Bernardino Regional Airport Authority commission" (hereinafter sometimes referred to as the "commission"). (2) The Commission shall consist of two (2) elected officials from the City of San Bernardino and one (1) elected official from each of the County of San Bernardino and the cities of colton, Highland, Loma Linda and Redlands. The elected officials thus serving on the Commission shall be called "Members". Each such Member shall be appointed by the legislative body of each Party to serve as primary representatives and shall serve at the pleasure of each such legislative body. Each Party shall similarly desiqnate one (1) additional elected official of the Party to serve as an alternate representative for each Member allocated to each Party as a primary representative for the purpose of attending Commission meetings and to fully participate in such meetings and to cast votes in place of a primary representative for such Party. The term "Member" or "Members" shall specifically include both primary representatives and alternate representatives appointed in the manner provided in this Section 2.B.; provided that alternative representatives shall not participate in meetings as a Member or cast votes on any CSBOOOI2\IlOC\1 .\11\92 11]0 -3- o o Authority matter except if a Member is not present or is constituting a quorum. primary representative of a not otherwise considered as (3) Members shall hold membership on the commission during the term for which they were appointed by their respective legiSlative body and until their successors have been appointed and qualified; provided, however, that Members may be removed by and at the pleasure of the Party which appointed them; and provided, however, further that each Member shall automatically forfeit his or her membership on the Commission if he or she ceases to be an elected official of the party responsible through the legislative body thereof for appointing such Member. (4) In case of a vacancy in membership on the commission, the same shall be promptly filled by the Party which appointed the vacating member. The appointing Party shall, upon making an appointment, forthwith notify the Secretary of the commission of such appointment or appointments. C. Meetings of the Commission. (1) Regular Meetings and special Meetings. The commission shall provide for its regular meetings. The dates upon which and the hour and place at which regular meetings shall be held shall be fixed by resolution and a copy of such resolution shall be filed with each of the Parties; provided, however, the commission shall hold at least one (1) regular meeting in each Fiscal Year. Special meetings and adjourned meetings may be held as required or permitted by law. Meetings shall be held at such times and places as any of the parties hereto may reasonably request depending upon the nature of the business to be conducted. (2) Ralph M. Brown Act. All meetings of the Commission, including, without limitation, regular, special and adjourned meetings, shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the California Government Code). (3 ) Minutes. The secretary of the commission shall cause minutes of all regular, special and adjourned meetings to be prepared and maintained, and shall, as soon as possible after each meeting, CSBOOO\2\DOC\\ 4\17\92 1130 -4- . , o o cause a copy of the minutes to be forwarded to each member of the Commission and to each of the Parties. (4) QUorum. Except under the circumstances provided in Section 11 hereof, a quorum shall be deemed to be constituted at a commission meeting for conducting business of the Commission when four (4) Members are present who under California law are legally able to participate in such meeting and who represent at least four (4) Parties. No individual other than a duly appointed Member who has been appointed as either a primary representative or an alternate representative may sit on the commission and be considered for purPOses of determining a quorum, for participating in such meetings and for the casting of votes. A Member must be present at a meeting to have the power under this Agreement to cast a vote and to be considered as present for purposes of determining whether the requirement for a quorum has been met. (5) voting. Except as otherwise provided by law, any action taken by the commission shall require the affirmative vote of four (4) Members present and voting except as provided in Section 11 hereof. No Member, whether a duly appointed primary representative or alternate representative, shall vote unless present upon the casting of votes on any matter. In the event such Member is not present at the time that votes are cast on a matter, such Member shall be considered as not having voted on such matter. D. Officers. (1) President, Vice-President and Secretary. At the first meeting of the Commission after the effective date of this Agreement, the Commission shall elect from the Members a President, a Vice-President and Secretary, and, thereafter at the first meeting held in July of each succeeding calendar year commencing in July, 1993, and annually thereafter, the Commission shall elect or re-elect its President, a Vice- President and Secretary. In the event that the President, Vice- president or Secretary so elected resigns from such office or ceases to be a Member of the commission, the resulting vacancy shall be filled at the next regular meeting of the Commission held after such vacancy occurs. In the absence or inability of the President to act, the Vice-President shall act as President. The President, or in his or her absence the Vice-President, shall preside at and conduct all meetings of the Commission. The Secretary shall be responsible for the minutes and other records of the Authority and Commission and shall perform such other duties specified by the Commission. The commission may select an CSBOOO12IDOC\\ 4\\7\92 1130 -5- . o o Assistant Secretary to assist the Secretary in the performance of his or her duties, to certify copies of official documents of the Authority and to perform such other duties specified by the commission. (2) Treasurer. The Authority shall appoint a Treasurer who shall be: (1) the treasurer or chief financial officer of one of the Parties; (2) a certified public accountant; or (3) such other officer or employee of the Authority as the commission shall deem qualified to act as Treasurer of the Authority. The Treasurer shall perform such duties as are set forth in this Agreement and any other duties specified by the Commission; provided, however, that the person so appointed as Treasurer shall not concurrently be appointed and acting as Auditor. (3 ) Auditor. The Authority shall appoint an Auditor who shall be: (1) the treasurer, or chief financial officer of one of the Parties; (2) a certified public accountant; or (3) such other consultant, officer or employee of the Authority as the commission shall deem qualified to act as Auditor of the Authority. The Auditor shall perform such duties as are set forth in this Agreement and any other duties specified by the Commission; provided, however, that the person so appointed as Auditor shall not concurrently be appointed and acting as Treasurer. (4) Staff. The commission may employ, by contract or otherwise, an Airport Manager and such staff as may be necessary. Except as listed below in this paragraph, the Airport Manager shall appoint and remove all management level officers, subject to the approval of the commission. professional and expert services, inCluding, without limitation, legal counsel, financing consultants, accountants, engineers, architects and other consultants and advisors, may be contracted for by the Authority. (5) Rules and By-Laws. The Commission may adopt, from time to time, such rules and regulations and by-laws for the election of officers, appointment of other officials and staff and the conduct of its meetings and affairs as it may deem necessary provided that all such rules and regulations are consistent with the provisions of this Agreement. CSIIOOOI2IDOCI1 4\17W2 1130 -6- &. o o section 3. Powers and Duties of the Authoritv. The Authority shall have the powers common to the Parties to be exercised to acquire, operate, repair, maintain, improve and administer the Airport Facility, and in addition thereto, has all other powers enumerated in the Joint Exercise of Powers Act, Chapter 5, Division 7, Title 2 of the Government Code of the State of California (commencing with Section 6500) as the same now exists or may hereinafter be amended (herein sometimes referred to as the "Act"). The Authority is authorized to do all acts necessary or convenient to the exercise of the aforementioned powers, including, but not limited to,. the following: to make and enter into contracts; to employ agents and employees; to acquire, construct, manage, maintain or operate any buildings, works or improvements; to acquire, hold or dispose of property; to incur debts, liabilities or obligations (both long-term and short-term) pursuant to the exercise of these powers, which are not debts, liabilities or obligations of the Parties; and to sue and be sued in its own name. Said powers shall be exercised in the manner provided in the Act and, except as expressly set forth herein, subject only to such restrictions upon the manner of exercising such powers as are imposed upon the county of San Bernardino in the exercise of similar powers. The Authority may also issue revenue bonds pursuant to Article 2, Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6540 as the same now exists or may hereafter be amended (hereinafter referred to as the "Bond Act"), and any applicable laws of the State of California, whether heretofore or hereafter enacted or amended, and, without limiting the generality of the foregoing, the Authority is also authorized to incur other forms of indebtedness pursuant to Section 6547.1 of the Government Code, which is part of the Bond Act, and any other applicable laws of the state of California; provided, however, that such revenue bonds or other forms of indebtedness shall not constitute debts, liabilities or obligations of the Parties. The Authority shall, in its sole discretion, establish, maintain and enforce standards, as they may be amended from time- to-time, for the operation and maintenance of the Airport (the "Airport Standards"), as the proprietor of the Airport. It is the present intent of the Parties subject to further reports, studies and consideration of other facts and circumstances as may be conducted by or on behalf of the Authority, that such Airport Standards should address standards for the hours of operation and methods for regulating noise levels all as may be necessary to minimize noise impacts, consistent with the operation of the Airport Facility in an economically viable manner and in conformity with the rules and regulations of the Federal Aviation Administration. The Airport Standards should be adopted and in effect prior to conveyance of the Airport Facility and prior to the transfer of the operational control thereof to the Authority; CSBOOOI2IDOCI1 4\17\92 1130 -7- - 1 - . o o provided, however, that the Airport standards shall be established, in place and effective at such time or times and addressing such matters as may then be deemed appropriate by the commission. Notwithstanding any language to the contrary contained in this Agreement, the Airport standards shall be adopted so as to be consistent with all applicable federal and state laws, rules, regulations, interpretative opinions and other requirements of applicable governmental and regulatory bodies, and shall not in- and-of-themselves act to prevent conveyance of the Airport Facility or transfer of the operational control thereof to the Authority. Without limiting the generality of the foregoing, it is intended that the Authority will proceed to do all acts necessary or desirable to accomplish the purposes of this Agreement. Such acts may, but need not necessarily (except to the extent required or prohibited by state or federal law) include all or part of the following which may be exercised in whole or in part at the sole discretion of the commission: (a) Negotiating a price and method of acquiring the Airport Facility and such other property on or outside of Norton Air Force Base as may be required for aviation purposes and in furtherance of the operation of the Airport Facility, and authorizing the execution, and executing any and all documents necessary or desirable to accept the 'operational control of and transfer of the Airport Facility; (b) consistent with the requirements of state and federal laws, conducting any environmental impact studies and proceedings as are required by CEQA, the State of California and/or the federal government, making such improvements or taking such actions as such studies and proceedings may indicate in the determination of the Commission will mitigate the adverse effects reflected in such studies, including but not limited to those mitigation measures referenced in that certain settlement Agreement dated by and among the Parties, the Inland Valley Development Agency and the East Valley Association; (c) Granting of franchises, permits and licenses to, and entering into leases and contracts with, any person, firm or corporation, or agency of the State of California and/or the federal government, for the use of the Airport Facility or any part thereof, for the promotion and accommodation of air commerce and air navigation, or any use incidental thereto, together with a right or rights to use said Airport Facility in common with others as necessary to the right or rights granted; and likewise to enter into leases with any person, firm or corporation for purposes other than the promotion and accommodation of air commerce and air navigation covering any portion of the Airport Facility whenever the Commission shall CSBOOO\2\DOC\\ .,\7\92 1130 -8- A --1 ~ o o determine that the use of such portions of the Airport Facility are not necessary for the promotion and accommodation of air commerce and air navigation or for uses incidental thereto; (d) Subject to the powers of the. United States of America respecting commerce, establishing rules and regulations governing the use and control of the Airport Facility, or any of its properties, and the use of airways approximate thereto incidental to aerial navigation as shall be set forth in the Airport Standards; (e) Applying for and receiving any available State of California and/or federal grants, and in connection therewith, authorizing the execution of applications therefor, and grant agreements in connection therewith; (f) Issuing revenue bonds or other obligations and incurring other forms of indebtedness as provided in this Agreement, which are not debts, liabilities or obligations of the Parties although the Authority has no power of taxation; (g) Conducting the necessary studies to determine what repairs, if any, need be made to the Airport Facility, and making such repairs in any manner authorized by law; (h) Conducting any necessary noise studies, and making such improvements or taking such actions as such studies may indicate in the determination of the commission will mitigate the adverse effects of noise; (i) Continuing to operate, repair, maintain, improve and administer the Airport Facility after its acquisition; (j) Acquiring, constructing, managing, maintaining, operating or disposing of or donating land, building sites, buildings, works or improvements, whether to or from public or private persons or entities and whether on the Airport Facility or outside Norton Air Force Base if for aviation purposes and in furtherance of the operation of the Airport Facility, provided, however, that the Authority shall not exercise the powers of eminent domain to acquire property in the territorial jurisdiction of one of the Parties without first obtaining the consent of that party by a four-fifths (4/5) vote of the Party's legislative body, except in the case of an exercise of eminent domain required as a result of an operational or safety mandate by the Federal Aviation Administration; (k) suing or being sued in its own name; CSBOOOI2\DOC\1 .\17\92 1130 -9- . o o (1) Entering into and performing under lawful agreements with any of the Parties, the state of California, the United states of America, or any departments or agencies of any of the foregoing, or any other municipal or public corporation of any kind or nature whatever; (m) Making payment from surplus revenues to any of the Parties, or to public agencies whose boundaries (including in the case of a redevelopment agency and the Inland Valley Development Agency, redevelopment project area boundaries) encompass an area which overlaps the area included in the Airport Facility. The term "surplus revenues" as above referred to shall have whatever meaning is provided therefor in any resolution or trust indenture adopted by the Commission on behalf of the Authority, and the payments authorized by the preceding sentence shall be made only to the extent that such payments are not prohibited by any such resolution or trust indenture then in effect; (n) carrying out and enforcing all the provisions of this Agreement; and (0) carrying out and enforcing all Airport Standards as deemed appropriate by the commission. The listing of the above acts is not intended to indicate any priority of one act over another. Nor is such listing intended to be inclusive, and the commission may authorize other acts to be done in the accomplishment of the purposes of this Agreement. One or several acts may take place concurrently or in sequence as the commission shall direct. Title to the Airport Facility shall be acquired by the Authority directly from the United states Air Force in the event the Authority determines that such method of transfer would facilitate acquisition of the Airport Facility. The Parties hereby agree that the Airport Facility and the real property on which it is located are within the boundaries of the Authority. As of the time of the execution of this Agreement it is not known whether the acquisition, operation, repair, maintenance and administration of the Airport Facility by the Authority is feasible; however, some acts of the Authority will be accomplished in whole or in part prior to the Authority making any decision to acquire the Airport Facility and to assume the operational responsibility thereof. Financial negotiations, feasibility, economic and legal studies and other related studies must all be undertaken by or on behalf of the Authority so that it can determine whether to proceed or not. Nothing in this Agreement should be construed to commit the Authority at this time to any particular course of action of acquisition or non-acquisition of CSIlOOOI2IDOCII 4\17\92 1130 -10- o o the Airport Facility and assumption of operational responsibility thereof, other than the investiqation by the Authority. Section 4. Fiscal Year. For the purposes of this Aqreement; the term "Fiscal Year" shall mean the period from July 1 of each year to and includinq the followinq June 30. Section 5. Assistance to the Authoritv. The Parties may, except as prohibited by law and this Aqreement, in appropriate circumstances: (i) make contributions from their treasuries for the purposes set forth herein, (ii) make payments of public funds to defray the cost of such purposes, (iii) make advances of public funds for such purposes, such advances or payments to be repaid, as provided herein, or (iv) use their personnel, equipment or property in lieu of or in conjunction wi~ other contributions or advances. Such sums shall be paid to and disbursed by the Authority, and the method and manner of such payment, disbursement and repayment shall be as set forth in separate aqreements by and between the Authority and a party and approved by official action of the commission on behalf of the Authority and by the respective leqislative body on behalf of such Party. The provisions of Government Code section 6513 are hereby incorporated into this Aqreement. Section 6. Revenue Bonds. In order to pay for acquirinq, repa1r1nq, improvinq and financinq the Project referred to in section 1 hereof, includinq all facilities and improvements and any and all eXPenses incidental thereto or connected therewith, the Authority may authorize the issuance of revenue bonds pursuant to the provisions of the Bond Act, any applicable laws of the state of California, and, without limitinq the qenerality of the foreqoinq, the Authority is also authorized to incur other forms of indebtedness pursuant to section 6547.1 of the Government Code, which section is part of the Bond Act. Such revenue bonds or other forms of indebtedness shall not constitute debts, liabilities or obliqations of the parties. All fees and expenses of professional and expert services, includinq, without limitation, leqal counsel, financinq consultants, accountants, enqineers, architects and other consultants and advisors connected with the acquisition, operation, repair, maintenance, improvement and administration of the Airport Facility, which have been paid or incurred prior to the issuance of the revenue bonds or other forms of indebtedness (but after the effective date of this Aqreement) shall be paid, or repaid to the parties, as the case may be, without any preference beinq qranted to any party or Parties, at the earliest feasible time, to the CSBOOOI2IDOCII 4\17192 1130 -11- o o extent such payment or repayment is both lawful and deemed to be financially prudent in the sole discretion of the commission, from the proceeds of the revenue bonds, or other forms of indebtedness, or any other legally available source. section 7. Official Bonds. The Treasurer and the Auditor as the public officers designated in this Agreement who have charge of, handle or have access to any monies of the Authority are hereby also designated as responsible for all other property of the Authority. The Treasurer and Auditor shall each file an official bond with the Authority in the amount of not less than Two Hundred Fifty Thousand Dollars ($250,000). Each member of the commission shall file with the Authority an official bond in the amount of not less than Ten Thousand Dollars ($10,000). The Commission may in its discretion increase the official bond requirements set forth in this section. All bond premiums shall be paid by the Authority. Section 8. Accounts and Renorts. There shall be strict accountability of all funds and reporting of all receipts and disbursements. To the extent not covered by the duties assigned to any trustee appointed pursuant to a resolution or trust indenture adopted by the Commission pursuant to applicable law for the issuance of revenue bonds or other forms of indebtedness, the commission shall establish and maintain such procedures, funds and accounts as may be required by sound accounting practices or by the provisions of any resolution of the Authority authorizing the issuance of revenue bonds or other forms of indebtedness; provided that such procedure shall conform as nearly as possible to typical and customary procedures for the County of San Bernardino. The books and records of the Authority in the hands of the trustee or the Authority shall be available for inspection at all reasonable times by authorized representatives of the Parties. The Auditor, with the approval of the Authority, shall contract with an independent certified public accountant or firm of certified public accountants to make an annual audit of the accounts and records of the Authority, and a complete written report of such audit shall be filed as public records annually, within six (6) months after the conclusion of the Fiscal Year under examination, with each of the Parties and with the Auditor- Controller of San Bernardino county. Such annual audit and written report shall comply with the requirements of section 6505 of the Government Code of the State of California. The costs of the annual audit, including contracts with, or employment of, such independent certified public accountant or firm of certified public accountants, in making an audit pursuant to this Agreement shall be a charge against any unencumbered funds of the Authority available for such purpose. CSIIOOOI2IDOCII 4\11192 1130 -12- o o section 9. Funds. The Treasurer of the Authority shall have custody of Authority money and disburse Authority funds pursuant to the accounting procedures developed in accordance with the provisions of section 8; provided that the provisions of any resolution of the Authority authorizing th~ issuance of revenue bonds or other forms of indebtedness shall control regarding the custody and disbursement of the proceeds of any revenue bonds or other forms of indebtedness issued pursuant thereto or any revenues pledged to the payment of such bonds or other forms of i~debtedness. Additionally, and to the extent not covered by the duties assigned to any trustee, the Treasurer of the Authority shall assume the duties described in California Government Code section 6505.5, as follows: (a) Receive and receipt for all money of the Authority and place it in the treasury of the Treasurer of the Authority; (b) Be responsible upon his official bond for safekeeping and disbursement of all Authority money so held; (c) Pay, when due, from money of the Authority so held, all sums payable on outstanding bonds, or other forms of indebtedness, of the Authority; (d) Pay any other sums due from the Authority, from Authority money, or any portion thereof, only upon warrants of the Auditor of the Authority; (e) verify and report in writing to the Authority and to each of the parties on a monthly basis the amount of money then held for the Authority, the amount of receipts since the prior monthly report and the amount paid out since the prior monthly report. subject to applicable provisions of any trust indenture or financing agreement, which may provide for a trustee to receive, have custody of and disburse the Authority funds, the Treasurer of the Authority shall have the custody of and disburse Authority funds pursuant-to the accounting procedures developed in accordance with the provisions of section 8 hereof. The Auditor of the Authority shall draw warrants to pay demands against the Authority when the demands have been approved by the Airport Manager of the Authority or any other person authorized to so approve in accordance with the accounting provisions developed in accordance with the provisions of Section 8 hereof. CSBOOO12lDOC\1 4\17192 1130 -13- o o The Authority may invest any money in the treasury that is not required for immediate necessities of the Authority, as the Authority determines is advisable, in the same manner and upon the same conditions as local agencies pursuant to Section 53601 of the Government Code. Section 10. Interests. Non-Assianabilitv of ParticiDatina The rights, titles and interests of any Party herein shall not be assignable or transferable unless such assignment or transfer is required by law and is not within the control of the Party making the assignment or transfer. Section 11. Budaets: partv Loans. All parties shall loan to the Authority any and all/of the necessary annual budgeted expenditures of the Authority. The principal amount of such Party loans shall bear interest at a rate agreed upon by and among the Parties and the Authority for each Fiscal Year which rate of interest shall be applied to all principal amounts loaned in such Fiscal Year until repaid in full and shall be repaid proportionately to each Party from legally available surplus revenues as shall be determined from time-to-time by the Commission. Each Party shall be responsible for its respective percentage of all annual expenses of the Authority in an amount equal to the percentage produced when dividing (i) the number of Members allocated to a Party under this Agreement, by (ii) the total number of Members then in the membership under this Agreement. All such loan funds shall be advanced by each Party on a monthly basis not later than the first business day of each calendar month. Any Party that is then in arrears by three (3) monthly loan advances, shall have the rights of its Member or Members to vote and participate in commission meetings suspended until such time as all arrearages are then made current by such Party in whole, plus interest thereon, and the Authority shall not accept any partial payments of said amounts. During any period of time that a Party has not advanced its proportionate share of the annual expenses on a monthly basis, the other Parties shall each increase their percentage monthly advances commencing as of the month in which a default occurs by such Party by an amount equal to the dollar amount attributable to the defaulting party' s previously calculated percentage in the manner as provided above multiplied by the percentage produced when dividing (i) the number of Members allocated to a Party under this Agreement, by (ii) the total number of non-defaulting Members then in the memberShip under this Agreement. Each monthly payment not timely paid by a Party and received by the Authority by the date set forth above shall bear interest at a rate equal to one percent (1%) per calendar month (or such other maximum interest rate as may be permitted by applicable California law), or any portion thereof, accruing from the date CSBOOOI2IDOCI1 4\17\92 1130 -14- o o that the payment should have been made by such Party until the date that said Party remits the total balance of monthly payments then in arrears, plus applicable interest thereon. Upon payment of such arrearages in whole, plus interest thereon, the Authority shall distribute proportionately such amounts to the non-defaulting Parties. Upon any Party accumulating arrears on twelve (12) monthly loan advances, such party shall be automatically expelled as a Party to this Agreement without any further action by the Authority, the Commission or any other Party. Such expelled Party may be subsequently readmitted as a party to this Agreement only upon the approval of the legislative body to each party that is then a Party to this Agreement upon such terms and conditions as the then remaining parties may impose upon such readmittance. During any period of time that a Party has been either suspended or expelled and there exists on the Commission voting Members of Parties in a number less than the numbers set forth in Section 2.B. hereof, (i) the quorum requirement under Section 2.C.(4) shall be reduced, if applicable, to be a majority of the Parties not suspended or expelled who are represented by a majority of the Members then on the Commission, and (ii) the voting requirement under Section 2.C.(5) shall be reduced, if applicable, to a lesser number that continues to be represented by a majority of the Members then on the Commission. It is anticipated that such funding by the Parties may continue for an extended period of time which cannot now be determined both prior to and subsequent to the time when the Authority accepts the transfer of the Airport Facility or accepts the operational responsibility therefor. Prior to the time or times when the Parties adopt their annual budgets, such funding will be required to be made by the Parties from any legally available funds that may be allocated for such purpose. The Airport Manager shall prepare the Authority budget for whatever period of time is involved and submit it to the Commission for consideration and approval, and thereafter such Authority approved budget shall be submitted to the Parties for such action as they deem appropriate under the circumstances. The budgeting process required by this section for each Party to advance funds to the Authority shall be required of the Authority both prior to and subsequent to accepting the operational responsibility of the Airport Facility and until such time as the Authority is able to be financially self-supporting from Airport Facility derived revenue sources. Section 12. Term. Amendments. Termination. (a) This Agreement shall be effective when executed by all of the Parties designated on the signature pages hereof; may be amended by unanimous consent of the Parties to include other municipal corporations or for any other lawful purpose; and shall continue for so long as necessary to carry out the purposes of any CSBOOOI2IDOCI1 4\11192 \130 -15- o o agreement with the United states Government or until terminated by unanimous consent, whichever is later; provided, however, that: (i) This Agreement cannot be terminated until all revenue bonds or other forms of indebtedness issued pursuant hereto, and the interest thereon, shall have been paid or adequate provision for such payment shall have been made in accordance with the resolution of the Authority authorizing the issuance thereof; and (ii) This Agreement cannot be amended in any manner to the detriment of the holders of any such revenue bonds or other forms of indebtedness which are outstanding in accordance with any resolution of the Authority authorizing the issuance thereof; and (iii) No termination or amendment shall adversely affect the operation, repair, maintenance, improvement or administration of the Airport Facility; and (i v) No termination or amendment shall be made which is contrary to the language, spirit or intent of any contract and/or grant agreement entered into by the Authority with the United states of America, or any agreement entered into by the Authority with the state of California, or any department, administration or agency of either. (b) In the event the Authority for any reason whatsoever, (i) is or becomes unable to, or (ii) cannot legally or for any other reason, or (iii) the federal government or any agency thereof denies the Authority the right to, accept the transfer of the Airport Facility or assume the operational control and responsibility thereof by a date that becomes required for such transfer or assumption of the Airport Facility, then the County of San Bernardino may assume such operational control and responsibility and transfer of the Airport Facility. Upon the County of San Bernardino or any other governmental body accepting the transfer of the operational control of the Airport Facility and accepting conveyance of the Airport Facility, then under such circumstances the Authority and this Agreement shall be deemed to be terminated and the Parties shall take all necessary actions to evidence such termination. (c) If this Agreement is terminated, as provided in this Section 12, any property acquired as a result of the joint exercise of powers or the net sale proceeds (as used herein, "net sale proceeds" shall be those moneys or assets that remain after all indebtedness, loans and bonds, together with interest thereon, payable by the Authority, have been paid in full or provision for the payment thereof has been made and all moneys, to the extent applicable, have been disposed in such manner as may be required CS800012\DOC\1 4\17\92 1130 -16- o o pursuant to federal and state laws, rules and regulations then in effect) available upon a sale of any or all assets of the Authority shall be distributed or transferred in such manner as may be determined by the commission, and upon no action being taken to the contrary with regard to the disposition of property acquired and net sale proceeds, any and all such property acquired and net sale proceeds shall be transferred to the Inland Valley Development Agency. After completion of the purposes of this Agreement, and upon termination thereof, title to and possession of all real property interests in the Airport Facility and improvements thereon then owned by the Authority shall be disposed in such manner as may be determined by the then Members of the commission or as may be required by law or agreement to which the Authority is a party, and in the event no action is or can be taken by the commission such title and possession shall revert to the Inland Valley Development Agency. Any surplus moneys on deposit with the Treasurer if not required to support the Airport Facility shall be transferred to the Inland Valley Development Agency unless otherwise directed by the then members of the commission or unless otherwise required by law or agreement to which the Authority is a party. section 13. Notices. Notice hereunder shall be sufficient if delivered to the Secretary of the Authority or to the city Clerk or Clerk of the Board of Supervisors, as appropriate, of each of the Parties. Section 14. Miscellaneous. The section headings herein are for convenience only and are not to be construed as modifying or governing the language in the section referred to. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. This Agreement is made in the State of California under the constitution and laws of such State and is to be so construed. section 15. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto. Section 16. Severabilitv. Should any part, term or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the United States of America or the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. CSBOOOI2IDOCI1 4\17\92 1130 -17- o o section 17. Debts and Liabilities. The debts and liabilities of the Authority shall be those of the Authority and not of the Parties. The Authority shall save, keep, defend, indemnify and hold harmless all Parties, their officers and agents against and from all claims and liability for damage to property or personal injury received by reason of or in the course of development, construction, improvements or operations, whether aviation or otherwise authorized and approved by the Authority pursuant to its powers as stated in this Agreement, which may be occasioned by an act or omission on the part of the Authority, its agents or employees. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, their official seals to be hereto affixed, as of the date first above written. COUNTY OF SAN BERNARDINO By: Title: Dated: (SEAL) ATTEST: Clerk of the Board of supervisors Approved as to Form: County Counsel CSBOOO\2IDOC\\ (\\7\92 1130 -18- (SEAL) ATTEST: o city Clerk Approved as to Form: City Attorney CSIlOOOI2\DOC\1 4\17\92 11]0 o CITY OF COLTON, CALIFORNIA By: Title: Dated: -19- - o o CITY OF HIGHLAND, CALIFORNIA By: Title: Dated: (SEAL) ATTEST: City Clerk Approved as to Form: city Attorney \. CSBOOO12\DOC\1 4\17\92 1130 -20- (SEAL) ATTEST: o city Clerk Approved as to Form: city Attorney CSIIOOIII2\DOC\1 4\17192 1130 o CITY OF LOMA LINDA, CALIFORNIA By: Title: Dated: -21- o (SEAL) ATTEST: City Clerk Approved as to Form: Attorney for Redlands CSBOOOI2\DOC\1 4\17\92 1130 o CITY OF REDLANDS, CALIFORNIA By: Title: Dated: -22- (SEAL) ATTEST: o o CITY OF SAN BERNARDINO, CALIFORNIA By: Title: Dated: City Clerk Approved as to Form: ~~b~ ;:ity Attorney CSBOClOI2IDOC\1 .117\92 1130 -23-