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City Council - Item 3B - Resolution Of City Councilstaf epor TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DATE: NOVEMBER 20, 2000 RE: RESOLUTION NO. 00 -61 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPROVING AND ADOPTING THE SECOND AMENDMENT TO THE SAN GABRIEL VALLEY COUNCIL OF GOVERNEMNTS JOINT POWERS AUTHORITY AMENDED AND RESTATED JOINT EXERCISE OF POWER AGREEMENT Resolution No. 00 -61 approves and adopts an amendment to the San Gabriel Valley Council of Governments Joint Powers Authority Amended and Restated Joint Exercise of Powers Agreement by adding the power to borrow money, incur indebtedness and /or issue bonds for the benefit of the Alameda Corridor East Project and to be repaid exclusively from Hinds pledged or designed for the Alameda Corridor East Project and relieving the City from any liability whatsoever arising from such borrowing. BACKGROUND A Joint Powers Agreement (the Agreement) entered into as of March 1, 1994 established the San Gabriel Valley Council of Governments ( SGVCOG). The City is a party to the Agreement and a member of the SGVCOG. The membership of the SGVCOG amended the Agreement effective September 17; 1998, creating the Alameda Corridor East Construction Authority (Authority) for the purpose of implementing the Alameda Corridor East Project (ACE Project); consisting of Improvements at 55 grade crossings on Union Pacific Railroad routes through the San Gabriel Valley. The Authority is proceeding to implement the ACE Project. To date, the ACE Project funding requirements have been fairly modest and primarily, addressed by a loan from the City of Industry and by MTA grants that are disbursed on a reimbursement basis as debts come due. However, by the beginning of the new year, the rate of expenditures will increase as the project moves forward and Federal and State grants will become the predominant source of funds. Federal and State funding is reimbursed in arrears after invoices have been paid. Thus, the Authority staff has determined that the Authority will experience cash flow difficulties by early 2001 as it lets more contracts to implement the ACE Project. The Authority has retained financial advisors and bond counsel to advise it with respect to financial alternatives. The advisors in consultation with Authority staff have determined that a short -term borrowing will be the best course of action to solve the cash flow concerns. ` COUNCIL A qn a NOW 2 8_20U0 PAGE 2. The first step in authorizing the short -term borrowing is to amend the SGVCOG Agreement to provide for the power to borrow, incur indebtedness and /or issue bonds. The short term borrowing that is contemplated is a tax - exempt commercial paper issue, which is essentially a short -term bond issue. The interest and principal on the issue will only be payable from monies pledged or otherwise designated for the ACE Project. If the amendment authorizing borrowing is not expeditiously approved by the Members of the SGVCOG, the Authority will experience a cash shortfall and will have to curtail Project progress until an alternate means of cash }low financing is in place. There is one major issue identified and that has been adequately addressed in the JPA and the proposed amendment. That issue is whether the City is exposed to any liability as a result of the amendment. Section 16 of the Agreement, adopted pursuant to the express authorization of Government Code Section 6508.1; provides that: "(the debts, liabilities and obligations of the Council shall be the debts, liabilities or obligations of the Council alone. No Member of the Council shall be responsible, directly or indirectly, for any obligation, debt or liability of the Council, whatsoever." (The term "Member of the Council" refers to the member cities of the San Gabriel Valley Council of Governments.) Moreover, the proposed amendment states that any borrowing there under shall be for the purpose of financing the ACE Project and shall be repaid solely from funds pledged or otherwise designated for the ACE Project. Accordingly, the adoption of the amendment to the JPA and subsequent issuance of debt by the SGVCOG will have no effect whatsoever on the City's liability, creditworthiness or its own ability to issue debt. The financing transaction will take several months to complete. The Authority estimates that it will encounter cash flow difficulties by February 2001. Accordingly, adoption of the amendment to the SGVCOG Agreement by at least 16 members as soon as possible is essential to complete the financing and provide the necessary cash flow to the Authority by late January 2001. There is no financial impact on the city in connection with the approval of the Resolution amending the SGVCOG Joint Exercise of Powers Agreement. Also attached are the following: Resolution No. 00 -61, a letter from the Executive Director of the SGVCOG Nick Conway, and the amended agreement approved by the Council on August 25, 1998. RECOMMENDATION It is recommended that the Rosemead City Council adopt Resolution No- 00 -61. RESOLUTION NO. 00 -61 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPROVING AND ADOPTING THE SECOND AMENDMENT TO THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS JOINT POWERS AUTHORITY AMENDED AND RESTATED JOINT EXERCISE OF POWER AGREEMENT WHEREAS, the San Gabriel Valley Council of Governments ( SGVCOG) was established by that certain Joint Powers Authority Agreement (the "Agreement ") entered into as of March 1, 1994; and WHEREAS, the City is a party to the Agreement and a member of the SGVCOG; and WHEREAS, the membership of the SGVCOG amended the Agreement, effective September 17, 1998, creating the Alameda Corridor East Construction Authority ( "Authority ") for the purpose of implementing the Alameda Corridor East Project ( "ACE Project "); and WHEREAS, the Authority is proceeding to implement the ACE Project; and WHEREAS, the Project is being funded by Federal, State and local agency grants that are disbursed on a reimbursement basis; and WHEREAS, the Authority has determined that to responsibly manage the ACE Project and meeting its cash flow requirements, the SGVCOG needs to express power to borrow money; and WHEREAS, the SGVCOG may obtain the power to borrow money to resolve the cash Bow needs of the Authority only by amending the Agreement; and WHEREAS, unless the authority to borrow money as set forth below, is granted by adoption of this Resolution by the Members of the SGVCOG, the Authority will experience a cash shortfall thereby negatively impacting continuing progress on the ACE Project; and WHEREAS, adoption of this Resolution will not result in any additional liability for the City, nor affect the City's creditworthiness in any manner whatsoever. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That Paragraph B, entitled "Common Powers" of Section 4, entitled "Purpose and Powers of the Council" of the Agreement is hereby amended by adding subparagraph 15 to read as follows:' (15) Borrow money, incur indebtedness and /or issue bonds pursuant to the Constitution of the State of California and any of the laws of the State of California and to exercise any implied power necessary to exercise the express powers provided for in this subparagraph 15, provided, however, that any borrowing hereunder shall be for the purpose of financing the Project, as defined in Section 27 of this Agreement and shall be repaid solely from funds pledged or otherwise designated for the Project. Borrowings authorized hereunder shall be subject to Section 16 of this Agreement. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall transmit a certified copy of it immediately upon its adoption to the San Gabriel Valley Council of Governments. PASSED, APPROVED AND ADOPTED this 28 ° ' day. of November, 2000. MAYOR ATTEST: CITY CLERK San Gabriel Valley Council of Governments ! >C4 a na ,;_ ^6 ;(I. ! 116 E -Pr, I `.'E,V 4 ;rmlq.org t� L'tCk:kS .. esid,mr ia: r y 1,.. 45aldwi! October 20, 2000 !'rr Yra.irirru - _ Lara L. Blakely 7 reosurerlAudilur . Bartou Do* Mr. Frank Tripepi City of Rosemead 8838 E. Valley Blvd. s�.,l;Lks Rosemead, CA 91770 Re: Amendment to the SGV OG joint Exercise of Powers Agreement .;rrndic _ r - <iliJ Qju' Dear Mr. peps: Sa!d,rin Park � .. `` aanurr I am writing to you to request your assistance in moving the Alameda Corridor East .erarr,aJn Project (the "ACE Project ") forward by your City's adoption of the enclosed amendment euvinJ to the San Gabriel Valley Council of Governments ( "SGVCOG ") Joint,Powers ;,ia :ond liar Agreement ( "JPA "). The Alameda Corridor East Construction Authority (the t)Jark "Authority ") has determined that the ACE Project will require the issuance of short term E'l Ample debt by January 2001 due to increasing reliance on State and Federal funding that will be a�i, nr1 „rJ paid to the Authority only on a reimbursement basis. The Authority has retained the law firm of Burke, Williams & Sorensen, L.LP to represent it as bond counsel. Burke, des: n' .Williams &Sorensen has completed its initial review of the relevant documents and Ire. indare concluded that the SGVCOG JPA requires an amendment to add the power to borrow money prior to proceeding with the debt issuance. If the amendment authorizing y 'r rnr borrowing is not expeditiously approved by the Members of the SGVCOG, the Authority anr< will experience a cash shortfall and will have to curtail progress on the Project until after a- lJJI.belr. alternative means of providing working capital are obtained. 31anlerer Park _ t We have prepared, for your review and use, a model council agenda staff report and resolution approving and adopting an amendment to the SGVCOG JPA by adding the power to borrow money, incur indebtedness and/or issue bonds for the benefit of the ACE Project and to be repaid exclusively from funds pledged or designated for the ACE Project aan ntnri„J Approval of the amendment by the City will not result in any additional liability for the xirr,J nsJdrr City nor will it impact the City's creditworthiness Section 16 of the JPA, adopted pursuant to the express authorization of Government Code section 6508.1 provides that: "[t]he debts, liabilities and obligations of the Council Wrst Uovi ... Z shall be the debts, liabilities or obligations of the Council alone. No Member of the Council shall be responsible, nF�.u' n, -�! note i oar Sr.;[u i ±rnAv Mtlnol: -i, coo +vx•: Ano}c Ass,Kiales, Lr. October 20, 2000 Page 2 directly or indirectly, for any obligation, debt or liability of the Council, whatsoever." (The term "Member of the Council" refers to the member cities of the San Gabriel Valley Council of Governments.) Moreover, the proposed amendment provides that any borrowing thereunder shall be for the purpose of financing the ACE Project and shall be repaid solely from funds pledged or otherwise designated for the ACE Project. Accordingly, the adoption of the amendment'to the JPA and subsequent issuance of debt by the SGVCOG will have no effect whatsoever on the City's liability, creditworthiness or its own ability to issue debt. Timely action is necessary, as the financing transaction will take several months to complete. The Authority estimates that, if current Project progress is maintained, it will encounter cash flow difficulties beginning in February 2001. Accordingly, adoption of the amendment to the SGVCOG Agreement by at leant 16 members as soon as possible is essential to complete the financing and provide the necessary cash flow to the Authority by late January 2001. Please call me at 626 564 -9702 if you have any questions. Thank you for your attention to this matter. Sincerely, *�4 Nicholas T. Conway Executive Director c: M. Clark NOU -22 -1999 11:55 BURKE,WILLIANS LA. 213 235 2700 P.02 SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS A JOINT POWERS AUTHORITY AMENDED AND RESTATED JOINT .EXERCISE OF POWERS AGREEMENT EFFECTIVE SEPTEMBER 17, 1998 Doc 1993 v2 NOU -22 -1999- 11:55, BURKE,WILLIRMS LA. 213 236 2706 P.03 TABLE OF CONTENTS Doc 1993 �2 . PAGE Section 1. Recitals . . . . . . . . . . . . . 1 Section 2. Creation of Separate Legal Entity . . . . .2 Section 3. Name . . . . . . . . . . . . . . . . . . . 2 Section 4. Purpose and Powers of the Council . . . . .2 a. Purpose of Council .2 b. Common Powers . . . . . . 3 C. Exercise of Powers. . . . . . . . . . 4 Section 5. Creation of the Governing Board . . . . . .4 a. Designation of Governing Board Representatives . . _ 4 b. Designation of Alternate Governing Board Representatives . . . 5 C. Eligibility . . . . . . . 5 Section -6. Use of Public Funds and Property . . . . . 5 Section 7. Functioning of Governing Board . . . . . 5 a. Voting and Participation . . . . . . .5 b. Proxy voting .. . . . . . . .6 C. Quorum • . . . . . . . . . . . . . . . . 6 d_ Committees . . . . . . . . . . . . . 6 e. Actions . . . . . . . . . . . . . . . 6 Section S. Duties of the Governing Board . . . . . . .6 Section 9. Roberts Rules of Order . . . . . . . 6 section 104 Meeting of Governing Board . . . . . . . . 7 Doc 1993 �2 . NOU -22 -1999 11:55 BURKE,WILLIAMS LA. 213 236 2700 R.04 Section 11. Election of President and vice - President 7 Section 12. Executive Director _ . . . . . . . . . . . 7 Section 13. Designation of Treasurer and Auditor . . . 8 Section 14.. Council Treasurer . . . . . . . . .8 Section 15. Designation of Other Officers and Employees . . . . . 8 Section 16. Obligations of Council . . . . . . . 9 Section 17. Control and Investment of Council Funds .9 Section 18. Implementation Agreements . . . . . .. . . .9 Section 19. Term . . . . . . . . . ... . . . . . . . . 9 Section 20. Application of Laws to Council functions . 9 Section 21. Members . . . . . . . . . _ . . . . . .9 a. Withdrawal . _ . _ . . . . . . . . .9 b. Non - Payment of Dues . . . . . . . . .10 C. Admitting Eligible Members . . . _ _ 10 d. Admitting New Members . . . _ . .10 Section 22. Interference With Function of Members 10 Section 23. Dues of Members . . . . . . . . . . 11 Section 24. Disposition of Assets . . . . . . . . . 11 Section 25. Amendment . . . . . . . . _ _ . . . 11 Section 26. Effective Date . . . . . . . . . . .11 Section 27. Alameda Corridor —East, Gateway to America Construction Authority. . . . . ..11 S3 DOC ,993 v2 NOV -22 -1909 11 :55 BURKE,WILLIAMS LA. 213 236 2790 P.05 AGREEMENT "SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS" (A.JOINT POWERS AUTHORITY) This Agreement ( "Agreement ") is made and entered into by and between the public entities (Collectively, "Members. ") whose names are set forth on Exhibit A, attached hereto and incorporated herein by this reference, pursuant to Section 6500 at se q. of the Government Code and other applicable law: WITNESSETH The parties hereto do agree as follows: Section 1. Recitals This Agreement is made and entered into with respect to the following facts: a. Historically, the San Gabriel Valley Association of Cities, an unincorporated association, has played a valuable role in serving as a forum for the exchange of ideas and information among its Member cities; however, the "growing need for the cities in the San Gabriel Valley to develop and implement their own subregional policies and plans and voluntarily and cooperatively resolve differences among themselves requires a more representative and formal structure; b,. The public interest requires a joint powers agency to conduct studies and projects designed to improve and coordinate the common governmental responsibilities and services on an area -wide and subregional basis through the establishment of a council of governments; c. The public interest requires that an agency explore areas of inter - governmental cooperation and coordination of government programs and provide recommendations and solutions to problems common and general concern to its Members; d. The public interest requires that an agency with the aforementioned goals not possess the authority to compel any of its Members to conduct any activities or Doc 0993 v1 NOU -22 -1999 i1:55 BWRKE,WILLIANS LA. 213 236 2763 RIOS implement any plans or strategies that they do not wish to undertake (except for the payment.of dues); e. Each Member is a. governmental entity. established by law with full powers.of government in legislative, administrative, financial, and other related fields; - f. Each Member,'by and through.its legislative body, has determined that subregional organization'to assist in planning and voluntary coordination among the cities in the San Gabriel valley is required in furtherance of the public interest, necessity and convenience; and g. Each Member, by and through its legislative body; has independently determined that the public interest, convenience and necessity requires the execution of this Agreement by and on behalf of each such Member. Section '2. Creation of Separate Leval Entity It is the intention of the Members to create, by means of this Agreement, a separate legal entity within the meaning of Section 6503.5 of the Government Code. Accordingly, there is hereby created a separate legal entity which shall - exercise its powers in.accordance with the provisions of. this Agreement and applicable law_ Section 3. Name The name of the said separate legal entity shall be the San Gabriel Valley Council of Governments ( "Council "). Section 4. Purpose and Powers of the Council a. Purpose of Council The purpose of the creation of the Council is to provide a vehicle for the Members to- voluntarily engage in regional and cooperative planning and coordination of government services and responsibilities to assist the Members in the conduct of their affairs. It is the clear intent among cities that the Council shall not possess the authority to compel any of its Members to conduct any activities or implement any plans or strategies that they do not wish to undertake (except for the payment of dues). The.goal and intent of the Council is one of voluntary cooperation among cities for the collective benefit of cities in the San Gabriel Valley. . z Doc 1953 vz 14OV -22 -1999 11:56 BURKE,WILLIAMS LA. 213 236 2760 F.07 b. Common Powers The Council shall have,'and may exercise, the following powers: (1) Serve,as an advocate in representing the Members of the San Gabriel Valley at the regional, state and federal levels on issues of importance to the San Gabriel valley; (2) Serve as a forum for the review, consideration, study, development and recommendation of public policies and plans with regional significance; (3) Assemble information helpful in the consideration of problems peculiar to - the Members; (9) Utilize Member resources or presently existing single purpose public and public /private groups to carry out its programs. and projects; (5) Explore practical avenues for voluntary intergovernmental cooperation, coordination and action in the interest of local public welfare and.improving the administration of governmental services; (6) Assist in coordinating subregional planning efforts and in resolving conflicts among the cities in the San Gabriel Valley as they work toward achieving planning goals; (7.) Build a consensus among the Members on the implementation of policies and programs for addressing subregional and regional issues; (8) Serve as a mechanism for obtaining.. state, federal and regional grants to assist in financing the expenditures of the Council; 3 Doc 1993 v2 -'� NDQ -22 -1999 11:56 BURKE,WILLIPMS LA. 213 236 27ee P.aB (9) Make and enter into contracts, including "contracts for the services of engineers, consultants, planners, attorneys and single purpose public /private'groups; (10). Employ agents, officers and employees; (11) Apply for, receive and administer a grant or grants under any federal, state, or regional programs; (12) .Receive gifts, contributions and donations of property, funds, services and other.forms of financial assistance from persons, firms, corporations and any governmental entity; (13)-Lease, manage, maintain, and operate any buildings, works, or improvements; and (14) Delegate some or all of its powers to the Executive Director as hereinafter Provided. C. Exercise of Powers The Council shall, in addition, have all implied powers necessary to perform its functions, It shall exercise its powers only in a manner consistent with the provisions of applicable law, this Agreement and the Bylaws. For the purposes of determining the restrictions to be imposed on the Council in its manner of exercising its powers pursuant to Government Code section 6509, reference shall be made to, and the Council shall observe, the restrictions imposed upon the City of West Covina. Section 5. Creation of Governing Board There is hereby a Governing Board for the Council ("Governing Board ") to conduct the affairs of the Council. The Governing Board shall be constituted as follows: a. Designation of Governing Board Renresenta*_ives One person shall be designated as a representative of the Governing Board by the legislative Doc 1993 v2 \ NOV -22 -1999 11:56 BURKE,WILLIAMS LA. 213 236 2700 P.09 body of each of the Members ( "Governing Board Representative "). b. Designation of Alternate Governing Board Representatives One person shall be designated as an alternate representative of the Governing Board by the legislative body of each of the Members ("Alternate Governing-Board Representative "). C. Eligibility No person shall be eligible to serve as a Governing Board Representative or an Alternate Governing Board Representative unless that person is, at all times during the tenure of that person as a Governing Board Representative or Alternate Governing Board Representative, a Member of the legislative body of one of the appointing Members. Should any person serving on the Governing Board fail to maintain the status as required by this Section 5, that person's position on the Governing Board shall be deemed vacated as of the date such person ceases to qualify pursuant to the provisions of this Section 5 and the Member shall be entitled to appoint a qualified replacement_ Section 6. Use of Public Funds and Property The Council shall be empowered to utilize for its purposes, public and /or private funds,_property and other resources received from the Members and /or.from other sources. Subject to the approval of the Governing Board of the Council, the Members shall participate in the funding of the Council in such a manner as the Governing Board shall prescribe, subject.to the provisions of Section 23 of this Agreement. Where applicable, the Governing Board of the Council may permit one or more of the Members to provide in kind services, including the use of property, in lieu of devoting cash to the funding of the Council's activities. Section 7. Functioning of Governing Board a. voting and Participation Each Member may cast only one vote for each issue before the Governing Board through its representatives.. An Alternate Governing Board Representative may participate or vote in the proceedings of the Governing Board only in the absence of that Member's Governing Board Representative. Governing Board Representatives and Alternate Governing Board Representatives seated on the Governing Board shall be entitled to participate and vote on matters pending before s Doc 0993 vZ \ NOU -22 -1999 11 :5? BURKE,WILLIANS LA. 213 236 2700 °.SO the Governing Board only if such person is physically present at the meeting of Governing Board and if the Member which that Governing Board Representative or Alternate Governing Board Representative represents has timely and fully paid dues as required by this Agreement and the Bylaws. b. Proxy Voting No absentee or proxy shall be permitted. C. Quorum A quorum of the Governing Board shall consist of not less than fifty percent (50%) plus one (1) of its total voting membership. - d. Committees As needed, the Governing Board may create permanent or ad hoc advisory committees to give advice to the Governing Board on such matters as may be referred to such committees by the Governing Board. All committees shall have a stated purpose before they - are formed. Such a committee shall remain in existence until it is dissolved by the Governing Board. Qualified persons shall be appointed to.such committees by the pleasure of the Governing Board. Committees, unless otherwise provided by law, this Agreement, the Bylaws or by direction of the Governing Board, may be composed of representatives -to the Governing Board and non - representatives . to th'e Gbverning Board. e. Actions Actions taken by the Governing Board shall be by not less than fifty percent (50 %) plus one (1) of the voting representatives of the Governing Board which.are present with a quorum in attendance, unless by a provision of applicable law, this Agreement, the Bylaws or by direction of the Governing Board, 'a higher number of votes is required to carry a particular motion. Section 6. Duties of the Governing Board The Governing Board shall be deemed, for all purposes, the policy making body of the Council. All of the powers of the Council, except as may be expressly delegated to others pursuant to the provisions of applicable law, this Agreement, the Bylaws or by direction of the Governing Board, shall be exercised by and through the Governing Board. Section 9. Roberts Rules of Order The substance of Roberts Rules of Order shall apply to proceedings of the 6 Goc 6993 v2 NOU -22 -1999 11:5? BURKE,WILLIRMS LA. - 213 235 2700 F.il Governing Board, except as may otherwise be provided by provisions of applicable law, this Agreement, the Bylaws or by direction of the Governing Board. Section 10. Meetings of Governing Board The Governing Board shall, by means of the adoption of Bylaws, establish the dates and times of regular meetings of the Governing Board. The location of each such meeting shall be as directed by the Governing Board. Section 11. Election of President and Vice - President The President shall be the chairperson of the Governing Board, shall conduct all meetings of the Governing Board and perform such other duties and functions as required of such.person by provisions of applicable this Agreement, the Bylaws or by the direction of the Governing Board. The Vice - President shall serve as President in the absence of the President and shall perform such duties as may be required by provisions of applicable law,.this Agreement, the Bylaws, or by the direction o£ the Governing Board or the President. At the first regular meeting of the Governing Board, a Governing Board Representative shall be elected to the position of President by the Governing Board, and a different Governing Board Representative shall be elected Vice - President of the Governing Board. The terms of office of the President and Vice - President elected at the first regular meeting of the Governing Board shall continue - through . the first July 1 of their terms and expire on the second July 1, and elections to determine their successors shall not be held until the first regular meeting of the May preceding the second July 1. Thereafter, a Governing Board Representative shall be elected to the position of Vice- President of the Governing Board at the first regular meeting of the Governing Board held in May of each calendar year. The terms of office of the President and Vice - President shall commence and expire on July 1. If there is a vacancy, for any reason, in the position of President or Vice - President, the Governing Board shall forthwith conduct an election and fill such vacancy for the unexpired term of such prior incumbent. Section 12. Executive Director The Governing Board may appoint by a vote of fifty percent, (50%) plus one' (1) of the total voting membership a qualified person to be \ DOC 0993 �3 14OU -22 -1999 11:57 BURKE,WILLIAMS LA. 213 23G 2790 F.12- Executive Director on any basis it desires including, but not limited to, a contract or employee basis. The Executive Director shall be neither a Governing Board Representative, nor an Alternate Governing Board Representative, nor an elected official of any Eligible Public Entity (as defined in Section 21 (c) of this Agreement). The Executive Director'shall be the chief administrative officer of the Council_ The Executive Director shall serve at the pleasure of the Governing Board and may be relieved from such position at any time, without cause, by a- vote of fifty percent (508) plus one (1) of the total voting membership of the Governing Board taken at a regular, adjourned regular or special meeting of the Governing Board. The Executive Director shall perform such duties as may be imposed upon that person by provisions of applicable law, this Agreement, the Bylaws, or by the direction of the Governing,Board. Section 13. Designation of Treasurer and Auditor The Governing Board shall, in accordance with applicable law, designate a qualified person to act as the Treasurer for the Council and a qualified person to act as the Auditor of the Council. If the Governing Board so_ designates, and in accordance with provisions of applicable law, a,qualified person may hold both the office of Treasurer and the office of Auditor of the Council. The compensation, .if any, of a person. or persons holding the offices of Treasurer and /or Auditor shall be set by the Governing Board. Section 14. Council Treasurer The person holding the position of Treasurer of the Council shall have charge of the depositing and custody of all funds held by the Council. The Treasurer shall perform such .Other duties as may be imposed by provisions of applicable law, including those duties described in Section 6505.5 of the Government Code, and such duties as may be required by the Governing Board. The Council's Auditor shall perform such functions as may be required by provisions of applicable law, this Agreement,, the Bylaws and by the direction of the Governing Board. Section 15. Designation of Other Officers and Employees The Governing Board may employ such other officers or employees as it deems appropriate and necessary to conduct the affairs of the Council. e Doc 0993 v] NOV -22 -1999. 11 58 BURKE,WILLIRMS LA. 213 236'270CI P.13 Section 16. Obligations of Council The debts, liabilities and obligations of the Council shall be the debts, liabilities or obligations of the Council alone. No Member of the Council shall be responsible, directly or indirectly, for any obligation, debt or liability of the Council, whatsoever. . Section 1'7. . Control and Investment of Council Funds The Governing Board shall adopt a policy for the control and.investment of its funds and shall require strict compliance with such policy. The policy shall comply, in all respects,.with all provisions of applicable law. Section 18. Implementation Agreements when authorized by the Governing Board, affected Members may execute an Implementation Agreement for the.purpose of authorizing the Council to implement, manage and administer area -wide and regional programs in the interest of the local public welfare. The costs incurred by the Council in implementing a program, including indirect costs, shall be assessed only to those Members who are parties to that Implementation Agreement. Section 19. Term The Council created pursuant to this Agreement shall continue in existence until such time as this Agreement is terminated. This Agreement may not be terminated except by an affirmative vote of not less than fifty percent (504) plus one (1) of the then total voting membership of the Governing Board. Section 20. Application of Laws to Council Functions The Council shall comply with all applicable laws in the conduct of its affairs, including, but not limited to, the Ralph M. Brown Act. (Section 54950 at seq., of the Government Code.) Section 21. Members a. Withdrawal A Member may withdraw from the Council by filing its written notice of withdrawal with the President of the Governing Board 60 days before the actual withdrawal. Such a withdrawal shall be effective at 12:DD o'clock a.m. on the last day of that 60 -day. period. The withdrawal of a Member shall not in any way discharge, impair or modify the voluntarily - assumed obligations for the withdrawn Member in existence as of the effective date 9 Doc 0993 V. IAOU -22 -1999 11:58 BURKE,WILLIRMS LA. 213 236 2700 P.14 of its withdrawal. Withdrawal of a Member shall not affect the remaining Members. A withdrawn Member shall be entitled to the balance of the annual dues paid for the year by that Member which were intended for the remaining Part of that year. withdrawal from any Implementation - Agreement shall. not be deemed withdrawal from the Council. b. Non - Pavment of Dues If a Member fails to Pay dues within three months of the annual dues assessment as required under Section 23 of this Agreement and the Bylaws, and after a 30 - day written notice is provided to that Member, the Member shall be deemed to be.suspended from this Agreement and the Council. When a Member is suspended, no representative of that Member shall participate or vote on the Governing Board_ Such a Member shall be readmitted only upon the payment of all dues then .owed by the Member, including dues incurred prior to the suspension and during the suspension. C. Admitting Eligible Members Eligible public entities whose names are set -forth on Exhibit A to this Agreement ( "Eligible Public Entities ") shall be admitted to the Council by 1) adopting this Agreement by majority vote of the legislative body of the Eligible Public Entity,and 2) properly signing this Agreement. An Eligible Public . - Entity may be admitted regardless of whether it adopted and signed this Agreement before or after the Effective Date (as- defined in Section 26 of this Agreement). No vote of the Governing Board shall be required to admit an Eligible Public Entity. d.. Admitting New Members New Members who are not Eligible Public Entities may be admitted to the Council upon an affirmative vote of not less than fifty percent (50 %) plus one (1) of the total voting membership of the Governing Board provided that such a proposed new Member is a city whose jurisdiction, or part thereof, lies within and /or immediately adjacent to, the San Gabriel Valley. Admission shall be subject to such terms and conditions as the Governing Board may deem appropriate. Section 22. Interference With Function of Members The Governing Board shall not take any action which constitutes an interference with the exercise of lawful powers by a Member of the Council. 10 Doc 4993 v: IAOU -22 -1999 11:59 HURKE,WILLIRMS LA. 215 236 2700- P.15 Section 23. Dues of Members The Members of the Council shall be responsible for the payment to the Council, annually, of dues 'in the amounts periodically budgeted by the Governing Board, as and for the operating costs of the Council ( "Dues ") as provided in the Bylaws. Section 24. Disposition of Assets Upon termination of this Agreement, after the payment of all obligations of the Council, any assets remaining-shall be distributed to the Members in proportion to the then obligation of those Members' obligation to,participate in the funding of the Council as provided in Section 23 hereof. Section 25. Amendment This Agreement may be amended at anytime with the consent of fifty percent (504) plus one (1) of all of the legislative bodies of the then parties hereto. Section 26. Effective Date The effective date - ( "Effective Date ") of this Agreement shall be March 1, 1994 if fifty,percent (504) plus one (1) of the Eligible Public Entities adopt this Agreement by a majority vote of the legislative body of each Eligible Public Entity and sign this Agreement. If fifty percent (504) plus one (1) of the Eligible Public Entities have not signed this Agreement by March 1, 1994, then the Effective Date of the Agreement shall be the first date on which fifty percent (504) plus one (1) of the Eligible Public Entities adopt and sign this Agreement. Section 21. Alameda Corridor - East, Gateway to America Construction Authority. a. In addition to the Governing Board of the Council, there shall be an Alameda Corridor - East, Gateway. to America Construction Authority (the "ACE Construction Authority "). The ACE Construction Authority shall have responsibility for the day -to -day implementation of the Alameda Corridor - East, Gateway to America Project (the "Project ") as ultimately adopted and approved by the Governing Board pursuant to Federal, State and local regulations, To facilitate such 'implementation of the Project, the ACE Construction Authority, upon the assignment of funds to it and subject to such restrictions imposed by Federal, State and local governmental entities and by the SGVCOG Governing Board, shall have the following 31 boc 0993 vZ \ NDU -22 -1999 11:59 BURKE,WILLIRMS LR. - _ 213 236 2700 F'. 16 powers to act on behalf of the San Gabriel Valley Council of Governments: (1) To make and enter into contracts, including public works contracts and contracts for design, materials and construction, and for the services of engineers, consultants, planners, and .single purpose public or private groups, on behalf of and in the .name of the SGVCOG; (2) To employ agents, officers and employees; (3) To acquire, by purchase or eminent domain, construct, 'reconstruct, rehabilitate, maintain in whole or in part, on behalf of and in the name of the SGVCOG, land, facilities and appurtenances necessary or convenient for the completion of the Project; (4) To lease, manage, maintain, and operate on behalf of and.in the name of the SGVCOG any buildings, works or improvements; and (5) To provide for or obtain insurance for the SGVCOG and Members of the ACE Construction Authority, and their agents, officers, and employees. b. The powers of the ACE Construction Authority shall be exercised only in furtherance of the Project and may be further limited and /or expanded by the SGVCOG Bylaws, as adopted or amended by the Governing Board. C. The ACE Construction Authority shall be comprised,of nine (9) Members, the qualifications for which shall be set forth in the Bylaws. The ACE Construction Authority shall consist of one Member from each municipal jurisdiction within which the Project, or any phase thereof, will be constructed; one Member from each non - Member jurisdiction: (the City of Los Angeles, the County of Los Angeles and the City of .Pico Rivera); and the President of the SGVCOG, or his or her delegatee. For non - SGVCOG Member jurisdictions, participation on the Committee 12 Doc 1993 Q NOU -22 -1999 11:59 shall require jurisdiction jurisdiction SGVCOG Bylaws BURKE,WILLIANS LA. 213 236 2700 ?.17 an Agreement between the non - Member and the SGVCOG by which the non - Member agrees to be bound by this Amendment and the governing the ACE Construction Authority. d. It is contemplated that the SGVCOG will receive funds to be used for the Project from various federal, state and local funding sources and that the receipt of such funds will be conditioned by regulation, law or agreement. The Governing Board shall have control of all such funds until such time as responsibility for management and /or use of the funds is transferred to the ACE Construction Authority by the Board by appropriate Board. Action. Such Action, in additional to the delegation of annual budgeting authority, may.contain restrictions on the use of such funds and on the ACE Construction Authority, in addition to any found in the Board - adopted Bylaws, and as is required by Federal, State and local entities and the SGVCOG. e.' The ACE Construction Authority may be dissolved by the Board upon a majority (50% + 1) vote. In the event that the ACE Construction Authority dissolved by the Board, the Board shall succeed to the rights, responsibilities, obligations and duties of the ACE Construction Authority. Doc 0993 v2 13 NOU -22 -1999 11:59 BURKE,WILLIAM5 LA. 213 236 2 ?00 P.16 That the Members of this Joint Powers Agreement have caused this Agreement to be executed on their behalf, respectively, as follows: City of ATTEST: Mayor City Clerk Effective September 17, 1998, as amended by the First Amendment to. the San Gabriel Valley Council of Governments Joint Powers_ Authority Agreement. Dot 1993 �2 14 NOU -22 -1999 11:59 HURKE,WILLIRMS LP. 213 236 2776 P.19 EXHIBIT A Eligible Public Entities Doc 0993 v2 Alhambra La Verne Arcadia Monrovia Azusa Monterey Park Baldwin Park Pasadena Bradbury Pomona Claremont Rosemead Covina San Dimas Diamond Bar San Gabriel Duarte San Marino E1 Monte Sierra Madre Glendora South £1 Monte Industry South Pasadena Irwindale Temple City La Puente Walnut West Covina NOU -22 -1999 11:59 BURKE,WILLIRM5 LA. 213 236 2700 P.20 SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS A JOINT POWERS AUTHORITY AMENDED AND RESTATED BYLAWS EFFECTIVE SEPTEMBER 17, 1998 Doc #996 vl N0 -1999 12:00 HURK" WILLIRMS LA. 213 236 2702 F.21 BYLAWS SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS The San Gabriel Valley Council of Governments (the "-Council ") is an agency voluntarily established by its Members pursuant to a Joint Powers Agreement ( "Agreement ") for the purpose of providing a vehicle . for the Members to engage in regional and cooperative planning and coordination of government services and responsibilities to assist the Members in the conduct of their affairs. In addition, the Council will provide a regional organization for the review of federal, state, and /or regional projects and studies which involve the use of federal, state and /or regional funds, in various forms. It is the clear intent among cities that the Council shall not possess the authority to compel any of its Members to conduct any activities or implement any plans or strategies that they do not wish to undertake (except for the payment of dues). The goal and intent of the Council is one of voluntary . cooperation among cities for the collective benefit of cities in the San Gabriel valley. Article I — Definitions The terms "Agreement," "Alternate Governing Board Representative," "Council," "Governing Board," and "Governing Board Representative," as used in these Bylaws are defined in the Agreement and said definitions are incorporated herein by reference. Article II — Membership and Representation A. Membership. Members shall withdraw from or be admitted to the Council in accordance with Section 21 of the Agreement. B. Representation. 1. The Governing Board Representative and Alternate Governing Board Representative for a city shall be designated by a resolution of that city's legislative body. Governing Board Representatives and Alternate Governing Board Representatives shall be appointed for one year. i Doc 1996 v1 NOU -22 -1999 12:00 BURKE,WILLIRMS LA. 213 236 2700 P.22 2. Names of Governing Board Representatives and Alternate Governing Board Representatives shall be communicated to the Governing Board by the appointing city in writing. 3. Governing Board Representatives and Alternate Governing Board Representatives shall serve until a successor is appointed.. Article III — Govarning Board A. Powers and Duties. The powers and duties of the Governing Board, subject to the'limitations of applicable law, the Agreement and these Bylaws, shall include: 1. All of the powers of the Council provided in Section 4 of the Agreement, except as may be expressly delegated to others pursuant to the provisions of the Agreement, these Bylaws or by the direction of the Governing Board shall be exercised by and through the Governing Board. 2. Making policy decisions and determining policy matters for the Council. 3. Conducting the affairs of the Council. 4. Appointing, fixing the compensation of and removing an Executive Director and other staff of the Council. 5- Annually reviewing the proposed Council budget and assessment schedule submitted by the Executive Director and adopting an annual budget and an assessment schedule. . 6. Appointing a Technical Advisory Committee, Standing Committees and, if necessary,'committees to study specific problems, programs, or other matters which it has approved for study. 7. Acting upon policy recommendations including policy recommendations from committees. B. Meetings. 1. Regular meetings of the Governing Board shall be held monthly. Special meetings of the Governing Board may be called by the President. All meetings of the Council shall be called by the President. All meetings of the Council shall be z Doc 0996 V1 NOU -22 -1999 12:00 BURKE,WILLIAMS LA. 213 236 2706 - P.23 called and conducted, and an agenda posted, in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq., as it now exists or may hereafter be amended. Members shall direct their Clerks to comply with all notice and agenda posting requirements deemed necessary by the Governing Board. 2,. The time and date of regular meetings of the Governing Board shall be 6 :00 p.m. on the third Thursday of the month. The location of each meeting shall be determined the preceding month by the Governing Board. 3. Council committees shall meet on the call of their chairperson or as otherwise provided herein and in compliance with applicable law.. C. Voting. voting on the Governing Board shall be conducted as prescribed in the Agreement. Further, voting may be either by voice or roll call vote. A roll call vote shall be .,_conducted upon the...demand of five participating representatives, or at the discretion of the presiding officer. Article IV - 'Executive Director The powers and duties of the Executive Director are: A. Subject to the authority of and as directed by the Governing•Board, to administer the affairs of the Council. B. Subject to the authority of and as.directed by the Governing Board, to, appoint, direct and remove all.emplovees of the Council and to retain consultants. C. Annually to prepare and present a proposed budget to the Board of Directors and to control the approved budget. D. To serve as the Secretary of the Council. E. To attend the meetings of the Governing Board. F. To perform such other and additional duties as the Governing Board, these Bylaws, the Agreement or applicable law may require. Article V - Other Officers and Employees A. Secretary. The Executive•Director shall be the Secretary of the Council and shall have no vote on the Governing 3 Doc 1996 vI NOU- 22 -19 0 19 12:90 BURKE,WILLIRMS LA. 213 235 2700 P.24 Board. The Secretary shall keep a record of all proceedings and perform-the usual duties of such office_ B. Treasurer and Auditor. Pursuant to Government Code Section 6505.6, the Treasurer of the Council and the Auditor of the Council shall be the same person. Any Governing Board Representative who does not already hold an office may be appointed to be the Treasurer /Auditor.of the Council. The Treasurer /Auditor shall possess the powers of, and shall perform those functions required by, Government Code Sections 6505, 6505.5 and 6505.6, and all other applicable laws and regulations, including any'subsequent amendments thereto. The Treasurer /Auditor shall have custody of all funds and shall provide for strict accountability thereof in accordance with Government Code Section 6505.5 and other applicable laws. The Treasurer /Auditor.shall annually cause aii independent audit to be made by a certified public accountant, or public accountant, in accordance with Government Code Sections 6505 and 6505.6. The Treasurer /Auditor shall perform all of the duties required in Government code Section 6505 and following, and such other duties as may be prescribed by provisions of applicable law, the Agreement, these Bylaws or by the direction of the Governing Board. C. Additional Officers and Employees. The Governing Board shall have the power to authorize such additional officers and employees as may be appropriate. Such officers and employees may also be, but are not required to be, officers and employees . of the individual Members. None of the officers, agents, or employees appointed by the Governing Board shall be deemed, by reason of their employment by the Governing Board, to be employed by any of the Members or, by reason of their employment, by the Governing Board, to be subject to any of the requirements of such Members. D. Bonding Requirement. The officers or persons who have charge of, handle, or.have access to any property of the Council shall be persons designated as such by the governing board. Each such designated officer or person shall be required to file an official bond with the Governing Board, at the exaense of the Governing Board, in an amount which shall be established by the Governing Board. Should the existing bond or- bonds of any such officers be extended to cover the obligations provided herein, said bond.shall be the official bond required herein. The premiums of any such bonds attributable to the coverage.required herein shall be appropriate expenses of the Council. Doc 1996 vl NOO -22 -1999 12:01 HURKE,WILLIAMS LA. 213 236 2700 P.25 r E. Status of Members' Officers and Employees. As provided in Government Code Section 6513, all of the privileges and immunities from liability and other benefits which apply to the activities of officers, agents, or employees of any of the ,Members when performing their respective functions within the territorial limits of their respective public agencies shall apply to them while engaged in the performance of any of their functions and duties extraterritorially under the Agreement. Article VI — Technical Advisory Committeo The Governing Board shall establish a Technical Advisory Committee ( "TAC") at'its first regular meeting._ The TAC shall be established for the purpose of making recommendations to the Governing Board. The TAC shall be composed of one city manager (or person holding the equivalent position, which position differs only in title), or that city manager's designee, from each Member city. Each Member's designee to the TAC.shall be- -designated by a letter of that - agency sent to the Governing Board. The President of the TAC shall be a city manager (or person holding the equivalent position, which.position differs only in title) of any Member and shall be elected by a majority vote of the city managers(or persons holding the equivalent position, which position differs only "in title) in a forum of their choosing. The President of the TAC shall sit as an ex officio Member of the Governing Board and will make recommendations directly to the Governing Board. A quorum of the TAC shall be one -third (1/3) of its membership. The meetings of the TAC shall be held in accordance with the Ralph M. Brown Act (Government Code Section 54950 et seq Article VII - Standing and Ad Hoc Committees - The Governing Board may establish Standing and Ad Hoc Committees. The Standing and Ad Hoc Committees shall be for the purpose of developing recommendations to the Governing Board or TAC, as appropriate. All Standing and Ad Hoc Committees shall have a written statement of purpose, and the Ad Hoc Committees shall in addition have a written statement of charges, before they are formed. The President shall recommend, and the Governing Board shall appoint by a vote of fifty percent (50% plus one (1), the Members of.the Standing and Ad Hoc Committees. Members to the Standing and Ad Hoc Committees shall be appointed for one year terms. In making recommendations for Members to . the Standing and Ad Hoc Committees, the President shall consider regional representation. A quorum of a Standing or Ad Hoc . Committee shall be a majority of its membership. All Standing 4 Doc 4996 �I \ NOU -22 -1999 12:01 BURKE,WILLIRMS LR. 2.13 236 2700 F.26 or Ad Hoc Committees (except TAC) shall be chaired by a Governing.Board Representative. All meetings of the Standing and Ad Hoc Committees shall be held in accordance with the Ralph M. Brown Act. (Government Code Section 54950 et-,seS.) Article VIII — General Assembly 'A General Assembly may be called by the President of the Governing Board at any time to discuss issues and make recommendations to the Governing Board. All elected officials O f the legislative bodies of all Members shall be Members of the General Assembly. The General Assembly is not required to meet. The President of the Governing Board shall be the President of the General Assembly. Article IX - Budgets, Dues and Disbursements A. Annual Budget. The Governing Board shall adopt a Budget prior to July 1 or each ca- lendar year. B. Budget Amendments. :The Governing Board may at any time amend the budget to incorporate additional income and disbursements that might become available to the Council for its purposes during a fiscal year. C. Fiscal Year. The Council shall be operated on a fiscal year basis beginning on July 1 of each year and . continuing until June 30. D. Accounts. All funds shall be placed in appropriate accounts and the receipt,.transfef,' or disbursement of such funds shall be accounted for in accordance with generally accepted accounting principles applicable to governmental entities and pursuant to Government Code Section 6505 and any other applicable laws. There shall be strict accountability of all funds. All revenues and expenditures shall be reported to the Governing Board. E. Expenditures Within Approved.Annual Budget. All expenditures shall be made within the approved annual budget, No expenditures in excess of those budgeted shall be made without the approval of a majority of a quorum of the Governing Board. F. Audit. The records and accounts of the Council shall be audited annually by an independent certified public. accountant, or public accountant, in compliance with Government 6 Doc 1996 vl NOU -22 -1999 12:01 BURKc,WILLIRMS LA. 213 235 2700 P.27 Code Sections 6505.5 - 6505.6, and copies of such audit report shall be filed with the State Controller and each party to the Council no later than fifteen (15) days after receipt of said audit by the Governing Board. G. Dues. The Members of the Council shall be responsible for payment to the Council, annually, of dues in the amounts periodically budgeted by the Governing Board, as and for the operating costs of the Council ( "Dues "). Sixty (60) days notice shall be provided to Members of the date of the meeting at which Dues .are to be determined for the following year. H. Uses of Funds. Grant funds received by the Council from any federal, state, or regional agency to pay for budgeted expenditures for which the Council has received all or a portion of said funds from the parties hereto shall be used as determined by the Governing Board. Article X - Amendments Amendments to these Bylaws may be proposed by a Governing Board Representative. The Amendment shall be submitted to the Governing Board at a meeting at least one month prior to the meeting at which the Amendment is voted upon. A vote of fifty percent (50 %) plus one (1') of the total voting membership of the Governing Board is required to adopt an Amendment. Article XI - Alameda Corridor - East, Gateway to Amari.ca Construction Authority A. Purpose and Powers. The Alameda Corridor - East, Gateway to America Construction Authority (the "ACE Construction Authority ") shall exist solely to implement the Alameda Corridor - East, Gateway to America Project (the "Project "), all as described in the First Amendment to the SGVCOG JPA. B. Compliance with Applicable Laws; Permits and Licenses. The Construction Authority shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules governing the implementation of the Project. C. Brown Act. , The ACE Construction Authority shall comply with all applicable laws in the conduct of its affairs, including, but not limited to, the Ralph M. Brown Act. (Government Code Section 54950 et seq.) I Doc 4996 v: NDU -22 -1999 12 :02 BURKE,WILLIAMS LA. 213 236 2790 P.2e . D. Composition of the ACE Construction Authority. The ACE Construction Authority shall be constituted as follows: 1. Desi4_nation of ACE Construction Authority Members and Alternates The ACE Construction Authority shall be comprised of representatives from the following jurisdictions: the City of E1 Monte, the City of Industry, the City of Montebello, the City of Pomona, the City of Los Angeles, the County of Los Angeles,. the City of Pico Rivera and the City of San Gabriel (the - Project Participants "). Each Project Participant shall designate a'Construction Authority Member and an Alternate.. For those jurisdictions.that are Members of the SGVCOG, the Member and Alternate on the Construction Authority shall be.the city's Member and Alternate to the SGVCOG Governing Board. For Project Participants that are not Members.of the SGVCOG, each Project Participant shall designate an eligible person (as defined herein) as a Member and another eligible person as an Alternate, subject to SGVCOG Governing Board approval. The President of the SGVCOG shall be a Member of the ACE Construction Authority. In the event the President of the SGVCOG is a Councilperson of any jurisdiction represented on the ACE Construction Authority, the President shall designate a SGVCOG Governing Board Member to represent the Governing Board on the Construction Authority, subject to Governing Board approval. 2. Eligibility No person shall be eligible to., serve as an ACE Construction Authority Member unless that person is, at all times during that person's tenure as an ACE Construction Authority Member, a Member of the legislative body of one of the Project Participants., Should any person serving on the ACE Construction Authority fail to maintain this elected official status,' that person's position on the ACE Construction Authority shall be deemed vacated as of the date such person ceases to qualify pursuant to this paragraph and the appointing jurisdiction shall be entitled to appoint a qualified replacement.. 3. Non- SGVCOG Member ACE Construction Authority Members For those Project Participants that are not Members of the SGVCOG, participation on the ACE Construction Authority and the ability to recommend for appointment an ACE Construction Authority Member and Alternate shall be conditioned on the execution of an agreement, approved by the Governing Board, between such jurisdiction and the SGVCOG, which agreement shall reflect the non- SGVCOG Member's agreement to be bound by these By -Laws, as approved and amended from time to time by the Doc 1996 V11 14OU -22 -1999 12:02 BURKE,WILLIAMS LA. 213 235 2700 P. 29. Governing Board, lawful action of the SGVCOG Board'and the First Amendment to the SGVCOG JPA. 4. Removal of ACE Construction Authority Members . The Governing Board shall have the authority at any time to remove any individual Member of the ACE Construction Authority. Grounds for such removal shall be: misfeasance - or malfeasance in office; violation of the SGVCOG Joint Powers Authority Agreement, and any amendments thereto; the bylaws of the SCVCOG, and any amendments thereto; and /or violation of any Standards of Conduct and amendments thereto adopted by the SGVCOG. E. ACE Construction Authority Procedures. The ACE Construction Authority shall be governed by the "following procedures: 1. Voting and Participation Each ACE Construction Authority Member may cast only one vote for.each issue the ACE Construction Authority. Members seated on the ACE Construction Authority shall be entitled to participate and vote on matters pending before it only if such person is physically present at the meeting of the ACE Construction Authority. 2. Proxy Voting No absentee ballot or proxy.shall be permitted. 3: Quorum A quorum of the ACE Construction Authority shall consist of not less than five (5) of its total voting membership. 4. Sub Committees As needed, the ACE Construction Authority may create ad hoc or advisory committees to give advice the ACE Construction Authority on such matters as may be referred to such committee by the ACE Construction. Authority. All committees shall have a stated purpose before they are formed and shall be formed by resolution. Such a committee shall remain in existence'until it is dissolved by the ACE Construction Authority or the Governing Board. Qualified persons shall be appointed to such committees by the ACE Construction Authority and each such appointee shall serve at the pleasure of the ACE Construction Authority. Committees, unless otherwise provided by law, the Agreement or the Bylaws, may be composed of Members and non - Members of. the ACE Construction Authority. 9 Doc 1996 vl NDV -22 -1999 12:02 BURKE,WILLIRMS LR. - 213 230 2708 P.30 5. Actions Actions taken by the ACE Construction . Authority shall be by not less than fifty percent (508) plus one (1) of the ACE Construction Authority Members present with a quorum -in attendance, unless by a provision of applicable law, the Agreement or the Bylaws, a higher number of votes is required to carry a particular motion. G. Meetings of ACE Construction Authority. The ACE Construction Authority shall, - by resolution, establish.the dates and times of regular meetings of the ACE Construction Authority. .The location of each such meeting shall be as directed by the ACE Construction Authority. Minutes shall be kept of each meeting and shall, as soon as possible after each meeting, be forwarded to each ACE Construction Authority Member. H. Compensation of ACE Construction Authority. .ACE Construction Authority Members shall be entitled to compensation for attendance at each Construction Authority meeting, and shall_ be entitled to reimbursement for travel expenses, as authorized by the SGVCOG Governing Board. I. Election of Chair and Vice Chair. The Chair shall be the chairperson of the ACE Construction Authority, shall conduct all meetings of the ACE - Construction Authority and perform such ,other.duties and functions as required of such person -by provisions of applicable law, the JPA Agreement, the Bylaws or by the direction of the ACE Construction Authority., The Vice Chair shall serve as Chair in the absence of the Chair and shall perform such duties as may be required by provisions of applicable law, the JPA Agreement, the Bylaws, or by the direction of the ACE Construction Authority or the Chair. At the .first regular meeting of the ACE Construction Authority, an ACE Construction Authority Member shall be elected to the .position of Chair by the ACE Construction Authority, and a different ACE Construction Authority Member shall be elected to the position of vice Chair of the ACE Construction Authority. The.terms of office of the Chair and Vice Chair elected at the first regular meeting of the ACE Construction Authority shall be for one year. Thereafter, an ACE Construction Authority Member shall be elected annually to the position of Chair, and a different ACE Construction Authority Member shall be elected annually to the position of Vice Chair of the ACE Construction Authority. If there is a vacancy, for any reason, in the position of Chair or Vice Chair, the ACE Construction Authority shall io Doc 4596 vl N00 -22 -1999 12:03 SURKE,WILLIRMS LA. 213 236 2790 P.31 forthwith conduct an election and fill such vacancy for the unexpired term of such prior incumbent. J. Finance. The ACE Construction Authority shall report to and be subject to review by the Treasurer and /or Auditor for the SGVCOG, and by the SGVCOG Governing Board and its Executive Director and all funds shall be managed and administered through the Treasurer of the SGVCOG. The Treasurer of the SGVCOG shall have charge of the depositing and custody of all funds held by the ACE Construction Authority. The Treasurer shall perform such other duties as may be imposed by provisions of applicable law, including those duties described in Section 6505.5 of the Government Code, and such duties as may be required by the ACE Construction Authority. The SGVCOG's Auditor shall perform such functions as may be required by provisions of applicable law, the Agreement, and by the direction of the ACE Construction Authority or the _ Governing Board. The books and records of'the ACE Construction Authority shall be open to inspection at all reasonable times-by representatives of the Members of the SGVCOG, the ACE Corstruction'Authority Project Participants and Members and the officers and directors and agents and employees of the entity they represent and any state or federal or local agency providing funding for the Project. Within 90 days after the close of each fiscal year, the SGVCOG Auditor shall give a complete written report of all financial activities for such fiscal year to the SGVCOG Board and the ACE Members. K. Control and Investment of ACE Construction Authority Funds. The control and investment of ACE Construction Authority funds shall be subject to the Investment Policy adopted by the SGVCOG Governing Board. The Treasurer of the SGVCOG shall strictly comply with,such policy. L. Liability Insurance. The .ACE Construction Authority shall obtain adequate liability coverage and /or insurance for its activities and shall require parties with whom the ACE Construction Authority contracts to agree to defend, hold harmless and indemnify; and name as additional insureds, the SGVCOG and,the.ACE Construction Authority and the officers, directors, agents and employees of the entity they represent. M. Implementation Agreements. When authorized by the ACE Construction Authority, affected Project Participants may u Doc f996 vi NOU -22 -1999 12 :e3 BURKE,WILLIANS LA. 213 23E 2700 P.32 execute Implementation Agreements for the purpose,of authorizing the'ACE Construction Authority to implement; manage and administer area -wide and site-specific Projects within each Project Participant's jurisdictional boundaries. The ACE Construction Authority may also enter into Implementation Agreements with Project Participants authorizing individual Project Participants to undertake and implement site - specific improvements. 12 TOTAL P.32