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Resolution No. 2021-001RESOLUTION NO. 2021-01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM FUNDS SECTION 1. Recitals. A. Pursuant to Health and Safety Code 50515 et. seq, the Department of Housing and Community Development (“Department”) is authorized to issue a Notice of Funding Availability (“NOFA”) as part of the Local Government Planning Support Grants Program (hereinafter referred to by the Department as the “Local Early Action Planning, or “LEAP”, Grants program”); and B. The City Council of the City of Vernon desires to submit a LEAP Grant application package (“Application”), on the forms provided by the Department, for approval of grant funding for projects that assist in the preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing needs assessment; and C. The Department issued a NOFA and Application on January 27, 2020, in the amount of $119,040,000 for assistance to all California jurisdictions. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 3. The City Council hereby authorizes and directs the Director of Public Works to apply for and submit to the Department the Application package. SECTION 4. In connection with the LEAP grant, if the Application is approved by the Department, the City Council hereby authorizes the Director of Public Works, to enter into, execute, and deliver on behalf of the City of Vernon, a State of California Agreement (“Standard Agreement”) for the amount of sixty-five thousand dollars ($65,000.00), and any and all other documents required or deemed necessary or appropriate to evidence and secure the LEAP Grant, the City of Vernon’s obligations related thereto, and all amendments thereto. SECTION 5. The City of Vernon shall be subject to the terms and conditions as specified in the NOFA, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in        Resolution No. 2021-01 Page 2 of 2 _______________________ full as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement. Pursuant to the NOFA and in conjunction with the terms of the Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Application. SECTION 6. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions. APPROVED AND ADOPTED this 16th day of February, 2021. ______________________ LETICIA LOPEZ, Mayor ATTEST: LISA POPE, City Clerk (seal) APPROVED AS TO FORM: _________________________________ ARNOLD M. ALVAREZ-GLASMAN, Interim City Attorney I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2021-01 was passed and adopted by the City Council of the City of Vernon at the regular meeting on February 16, 2021 by the following vote: AYES: 5 Council Members: Davis, Gonzales, Menke, Ybarra, Lopez NOES: 0 ABSENT: 0 ABSTAIN: 0 ________________________________ LISA POPE, City Clerk (seal)        City Council Agenda Item Report Agenda Item No. COV-491-2021 Submitted by: Jazmine Hooks Submitting Department: Public Works Meeting Date: February 16, 2021 SUBJECT Local Government Planning Support Grants Program Recommendation: Adopt Resolution No. 2021-01 approving and authorizing the submittal of an application to the Department of Housing and Community Development for, and receipt of, local government planning support grant program funds. Background: The Department of Housing and Community Development (HCD) has issued a Notice of Funding Availability (NOFA) as part of the Local Early Action Planning (LEAP) Support Grants Program in the amount of $119,040,000 to provide assistance to all California Jurisdictions. The City of Vernon is eligible to receive up to $65,000 of LEAP funds. This funding is provided to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and to facilitate compliance in implementing the sixth cycle of the regional housing needs assessment, as provided by the HCD. The HCD has been an accessible, informative resource for the City, and staff was advised to submit a "placeholder" application by the January 31, 2021 deadline. As such, an incomplete application was delivered to the HCD to ensure that the City would remain eligible and be considered for a grant award in this round of funding. With the adoption of the proposed resolution, the grant application will be complete, and the City will formally submit the application in its entirety to the HCD. Resolution No. 2021-01 will approve and authorize the Director of Public Works to apply for LEAP funding and, if awarded, will allow the Director to enter into, execute, and deliver a Standard Agreement with the State of California and any and all other documents required to evidence and secure the LEAP grant. Fiscal Impact: If the City is awarded a LEAP Program grant, the funding will offset the cost of the Housing Element update currently being performed by The Arroyo Group as part of the Westside Specific Plan Project. Attachments: 1. Resolution No. 2021-01 2. LEAP Application Local Early Action Planning Grant Application State of California Governor Gavin Newsom Alexis Podesta, Secretary Business, Consumer Services and Housing Agency Doug McCauley, Acting Director Department of Housing and Community Development Zachary Olmsted, Deputy Director Department of Housing and Community Development Housing Policy Development 2020 West El Camino, Suite 500 Sacramento, CA 95833 Website: https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml Email: EarlyActionPlanning@hcd.ca.gov January 27, 2020 LEAP NOFA Application Rev. 6/1/2020 Page 2 of 14 LEAP Application Packaging Instructions The applicant is applying to the Department of Housing and Community Development (Department) for a grant authorized underneath the Local Early Action Planning Grants (LEAP) provisions pursuant to Health and Safety Code Sections 50515 through 50515.05. LEAP provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production and facilitate compliance in implementing the sixth cycle of the regional housing need assessment. If you have questions regarding this application or LEAP, email earlyactionplanning@hcd.ca.gov. If approved for funding, the LEAP application is incorporated as part of your Standard Agreement with the Department. In order to be considered for funding, all sections of this application, including attachments and exhibits if required, must be complete and accurate. All applicants must submit a complete, signed, original application package and digital copy on CD or USB flash drive to the Department and postmarked by the specified due date in the NOFA. Applicants will demonstrate consistency with LEAP requirements by utilizing the following forms and manner prescribed in this application. o Pages 3 through 14 constitute the full application (save paper, print only what is needed) o Attachment 1: Project Timeline and Budget: Including high-level tasks, sub-tasks, begin and end dates, budgeted amounts, deliverables, and adoption and implementation dates. o Attachment 2: Nexus to Accelerating Housing Production o Attachment 3: State and Other Planning Priorities o Attachment 4: Required Resolution Template o Government Agency Taxpayer ID Form (available as a download from the LEAP webpage located at https://www.hcd.ca.gov/grants-funding/active-funding/leap.shtml o If the applicant is partnering with another local government or other entity, include a copy of the legally binding agreement; and o Supporting documentation (e.g., letters of support, scope of work, project timelines, etc.) Pursuant to Section XII of the LEAP 2020 Notice of Funding Availability (NOFA), the application package must be postmarked on or before July 1, 2020, and received by the Department at the following address: Department of Housing and Community Development Division of Housing Policy Development 2020 West El Camino Ave, Suite 500 Sacramento, CA 95833 LEAP NOFA Application Rev. 6/1/2020 Page 3 of 14 A. Applicant Information and Certification Applicant (Jurisdiction) City of Vernon Applicant’s Agency Type Municipal government agency Applicant’s Mailing Address 4305 S. Santa Fe Avenue City Vernon State California Zip Code 90058 County Los Angeles Website Cityofvernon.org Authorized Representative Name Daniel Wall Authorized Representative Title Director of Public Works Phone 323-583-8811 Ext. 305 Fax 323-826-1435 Email dwall@ci.vernon.ca.us Contact Person Name Jazmine Hooks Contact Person Title Administrative Analyst Phone 323-583-8811 Ext. 321 Fax 323-826-1435 Email jhooks@ci.vernon.ca.us Proposed Grant Amount $ 65,000 Pursuant to Health and Safety Code Section 50515.03 through (d) of the Guidelines, all applicants must meet the following two requirements to be eligible for an award: 1. Does the application demonstrate a nexus to accelerating housing production as shown in Attachment 2? Yes No 2. Does the application demonstrate that the applicant is consistent with State Planning or Other Priorities shown in Attachment 3? Yes No Is a fully executed resolution included with the application package? Yes No Does the address on the Government Agency Taxpayer ID Form exactly match the address listed above? Yes No Is the applicant partnering with another eligible local government entity? If Yes, provide a fully executed copy of the legally binding agreement. Yes No As the official designated by the governing body, I hereby certify that if approved by HCD for funding through the Local Early Action Planning Program (LEAP), the City of Vernon assumes the responsibilities specified in the Notice of Funding Availability and certifies that the information, statements and other contents contained in this application are true and correct. Signature: Name: Daniel S. Wall Date:1/28/2021 Title: Director of Public Works LEAP NOFA Application Rev. 6/1/2020 Page 4 of 14 B. Proposed Activities Checklist Check all activities the locality is undertaking. Activities must match the project description. 1 Rezoning and encouraging development by updating planning documents and zoning ordinances, such as general plans, community plans, specific plans, implementation of sustainable communities’ strategies, and local coastal programs 2 Completing environmental clearance to eliminate the need for project-specific review 3 Establishing housing incentive zones or other area based housing incentives beyond State Density Bonus Law such as a workforce housing opportunity zone pursuant to Article 10.10 (commencing with Section 65620) of Chapter 3 of Division 1 of Title 7 of the Government Code or a housing sustainability district pursuant to Chapter 11 (commencing with Section 66200) of Division 1 of Title 7 of the Government Code 4 Performing infrastructure planning, including for sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents 5 Planning documents to promote development of publicly owned land such as partnering with other local entities to identify and prepare excess or surplus property for residential development 6 Revamping local planning processes to speed up housing production 7 Developing or improving an accessory dwelling unit ordinance in compliance with Section 65852.2 of the Government Code 8 Planning documents for a smaller geography (less than jurisdiction-wide) with a significant impact on housing production including an overlay district, project level specific plan, or development standards modifications proposed for significant areas of a locality, such as corridors, downtown or priority growth areas 9 Rezoning to meet requirements pursuant to Government Code Section 65583(c)(1) and other rezoning efforts to comply with housing element requirements, including Government Code Section 65583.2(c) (AB 1397, Statutes of 2018) 10 Upzoning or other implementation measures to intensify land use patterns in strategic locations such as close proximity to transit, jobs or other amenities 11 Rezoning for multifamily housing in high resource areas (according to Tax Credit Allocation Committee/Housing Community Development Opportunity Area Maps); Establishing Pre-approved architectural and site plans 12 Preparing and adopting housing elements of the general plan that include an implementation component to facilitate compliance with the sixth cycle RHNA 13 Adopting planning documents to coordinate with suballocations under Regional Early Action Planning Grants (REAP) that accommodate the development of housing and infrastructure and accelerate housing production in a way that aligns with state planning priorities, housing, transportation equity and climate goals, including hazard mitigation or climate adaptation 14 Zoning for by-right supportive housing, pursuant to Government Code section 65651 (Chapter 753, Statutes of 2018) 15 Zoning incentives for housing for persons with special needs, including persons with developmental disabilities 16 Planning documents related to carrying out a local or regional housing trust fund 17 Environmental hazard assessments; data collection on permit tracking; feasibility studies, site analysis, or other background studies that are ancillary (e.g., less than 15% of the total grant amount) and part of a proposed activity with a nexus to accelerating housing production 18 Other planning documents or process improvements that demonstrate an increase in housing related planning activities and facilitate accelerating housing production 19 Establishing Prohousing Policies LEAP NOFA Application Rev. 6/1/2020 Page 5 of 14 C. Project Description Provide a description of the project and each activity using the method outlined below, and ensure the narrative speaks to Attachment 1: Project Timeline and Budget. a. Summary of the Project and its impact on accelerating production b. Description of the tasks and major sub-tasks c. Summary of the plans for adoption or implementation Please be succinct and use Appendix A or B if more room is needed. The Housing Element (HE) will be prepared to meet requirements from the state Housing and Community Development Department (HCD). Housing Element law has been strengthened considerably since the previous cycle; and although, the City of Vernon (City) has a very low allocation of housing units due to its unique character, the City seeks to revise its housing goals to align with its other planning efforts. The City has hired a consultant to provide expertise and develop a detailed timeline of work that will enable the prescriptive portions of the Housing Element to be developed based on the development of a Mixed-Use Specific Plan for the City’s west side. This is the ideal opportunity to review the different options available to best accommodate the eight (8) additional housing units prescribed in the City’s RHNA allocation. During the background analysis of the HE updates, our consultants will conduct a document review, evaluate our current HE, and assess housing needs, constraints, and resources for the City of Vernon. Next, consultants will work with various stakeholders to identify potential housing sites in the Mixed-Use Specific Plan, identifying necessary rezoning or General Plan Amendments that may be needed. Among the sites identified, we will specifically identify and discuss sites or types of sites appropriate for housing to serve the area’s unhoused population. The consultant will prepare a programmatic-level analysis of environmental constraints and adequate infrastructure per Government Code Section 65583.2(b)(4). As a result of the previous analyses, our consultant will work with the City to develop goals and policies to clarify the City’s housing vision in balance with the other elements of the General Plan. In addition, our consultant will prepare a matrix displaying the quantitative objectives of the Housing Element by income level and type of housing (i.e. new construction, rehabilitation, or conversion) based on their analysis of sites, implementation resources, and housing programs. The consultant will prepare a draft Housing Element to be reviewed by City staff, the general public, and HCD. Following review by HCD, The consultant will revise the appropriate sections of the HCD Review Draft Housing Element. After adoption, the document will be packaged into a final Housing Element and sent for final certification by HCD. The City will work closely with our consultant to develop materials that include information about the Housing Element. Next, they will lead a study session with the Vernon City Council to familiarize decision-makers with the requirements and potential recommendations of the Housing Element and receive feedback. We will also conduct at least one (1) public hearing on the intended HE updates. We will also prepare a focused General Plan Amendment that will ensure compliance between the Mixed-Use Specific Plan, Housing Element and City’s General Plan. We anticipate minor changes to the General Plan Land Use Element, Circulation Element and other adopted elements. (Continued on Appendix A) LEAP NOFA Application Rev. 6/1/2020 Page 6 of 14 D. Legislative Information District # Legislator Name Federal Congressional District 40 Lucille Roybal-Allard State Assembly District 53 Miguel Santiago State Senate District 33 Lena Gonzalez Applicants can find their respective State Senate representatives at https://www.senate.ca.gov/, and their respective State Assembly representatives at https://www.assembly.ca.gov/. Attachment 1: Project Timeline and Budget: (if more room is needed, duplicate Attachment 1 or add attachment labeled Attachment 1A) Task Est. Cost Begin End Deliverable Notes Background analysis $17,460 October 2020 December 2020 Data request to City staff; review of the past performance matrix; text and tables for Administrative draft of the Housing Element. Site inventory and analysis $10,300 January 2021 March 2021 Review past performance matrix. Goals, policies, and programs $7,610 January 2021 March 2021 Develop goals and policies to clarify the City’s housing vision. Housing Element updates $7,740 April 2021 June 2021 Administrative-, Public Review-, and HCD Review Draft Housing Element; transmittal letter; Completeness Review Checklist; final Housing Element. Community engagement 6,390 October 2020 September 2021 Developer interview summary; one (1) study session with a presentation; one (1) City Council Public Hearing with a presentation. Housing Element adoption $0 July 2021 September 2021 Adopt Housing Element at City Council meeting. General Plan amendment introduction/history $1,020 October 2020 March 2021 History of Vernon land use and General Plans. Land Use Element update $2,880 April 2021 June 2021 Add new land use category or overlay district; update land use maps; add and refine goals and policies of Land Use Element. Circulation and Infrastructure Element update $3,790 April 2021 June 2021 Propose changes to street classifications as required by the Mixed-Use Specific Plan; update Circulation Element to include multimodal circulation needs. General Plan amendment $2,310 April 2021 June 2021 Administrative-, Public Review-, and City Council draft General Plan Amendment; final General Plan Amendment. General Plan amendment adoption $0 July 2021 September 2021 Adopt General Plan amendments at City Council meeting. Hire COG staff position on LEAP subject matter $650 July 1, 2020 June 30, 2021 Onboarding contract with staff hired. See COG JPA attachment. Housing Element Implementation $1,100 September 2021 Ongoing Project administration $3,250 January 2021 September 2021 Submit requirements to HCD timely. Total Projected Cost $ $65,000 Include high-level tasks, major sub-tasks (Drafting, Outreach, Public Hearings and Adoption), budget amounts, begin and end dates and deliverables. If other funding is used, please note the source and amount in the Notes section. LEAP NOFA Application Rev. 6/1/2020 Page 7 of 14 LEAP NOFA Application Rev. 6/1/2020 Page 8 of 14 Attachment 2: Application Nexus to Accelerating Housing Production Applicants shall demonstrate how the application includes a nexus to accelerating housing production by providing data regarding current baseline conditions and projected outcomes such as a reduction in timing, lower development costs, increased approval certainty, increases in number of entitlements, more feasibility, or increases in capacity. An expected outcome should be provided for each proposed deliverable. If necessary, use Appendix B to explain the activity and its nexus to accelerating housing production. Select at least one *Baseline **Projected ***Difference Notes Timing (e.g., reduced number of processing days) Development cost (e.g., land, fees, financing, construction costs per unit) Approval certainty and reduction in discretionary review (e.g., prior versus proposed standard and level of discretion) Entitlement streamlining (e.g., number of approvals) Feasibility of development Infrastructure capacity (e.g., number of units) 60 units 70 units +10 units 8 additional units are prescribed in the City’s RHNA allocation Impact on housing supply and affordability (e.g., number of units) * Baseline – Current conditions in the jurisdiction (e.g. 6-month development application review, or existing number of units in a planning area) **Projected – Expected conditions in the jurisdiction because of the planning grant actions (e.g. 2-month development application review) ***Difference – Potential change resulting from the planning grant actions (e.g., 4-month acceleration in permitting, creating a more expedient development process) LEAP NOFA Application Rev. 6/1/2020 Page 9 of 14 Attachment 3: State and Other Planning Priorities Certification (Page 1 of 3) Applicants must demonstrate that the locality is consistent with State Planning or Other Planning Priorities by selecting from the list below activities that are proposed as part of this application or were completed within the last five years. Briefly summarize the activity and insert a date of completion. State Planning Priorities Date of Completion Brief Description of the Action Taken Promote Infill and Equity Rehabilitating, maintaining, and improving existing infrastructure that supports infill development and appropriate reuse and redevelopment of previously developed, underutilized land that is presently served by transit, streets, water, sewer, and other essential services, particularly in underserved areas. Seek or utilize funding or support strategies to facilitate opportunities for infill development. Other (describe how this meets subarea objective) Promote Resource Protection Protecting, preserving, and enhancing the state’s most valuable natural resources, including working landscapes such as farm, range, and forest lands; natural lands such as wetlands, watersheds, wildlife habitats, and other wildlands; recreation lands such as parks, trails, greenbelts, and other open space; and landscapes with locally unique features and areas identified by the state as deserving special protection. Actively seek a variety of funding opportunities to promote resource protection in underserved communities. Currently Staff are currently applying for the 2020 Growth Award with the Arbor Day Foundation. Other (describe how this meets subarea objective) Encourage Efficient Development Patterns Ensuring that any infrastructure associated with development, other than infill development, supports new development that does the following: (1) Uses land efficiently. September 2021 Our consultant will make recommendations as to how to best protect, upgrade, or abandon the existing infrastructure facilities that feed the Specific Plan area. LEAP NOFA Application Rev. 6/1/2020 Page 10 of 14 Attachment 3: State and Other Planning Priorities Certification (Page 2 of 3) (2) Is built adjacent to existing developed areas to the extent consistent with environmental protection. (3) Is located in an area appropriately planned for growth. (4) Is served by adequate transportation and other essential utilities and services. (5) Minimizes ongoing costs to taxpayers. Other (describe how this meets subarea objective) Other Planning Priorities Affordability and Housing Choices Incentives and other mechanisms beyond State Density Bonus Law to encourage housing with affordability terms. Efforts beyond state law to promote accessory dwelling units or other strategies to intensify single- family neighborhoods with more housing choices and affordability. Upzoning or other zoning modifications to promote a variety of housing choices and densities. Utilizing surplus lands to promote affordable housing choices. Efforts to address infrastructure deficiencies in disadvantaged communities pursuant to Government Code Section 65302.10. Other (describe how this meets subarea objective) LEAP NOFA Application Rev. 6/1/2020 Page 11 of 14 Attachment 3: State and Other Planning Priorities Certification (Page 3 of 3) Conservation of Existing Affordable Housing Stock Policies, programs or ordinances to conserve stock such as an at-risk preservation ordinance, mobilehome park overlay zone, condominium conversion ordinance and acquisition and rehabilitation of market rate housing programs. Policies, programs and ordinances to protect and support tenants such as rent stabilization, anti- displacement strategies, first right of refusal policies, resources to assist tenant organization and education and “just cause” eviction policies. 12/12/2018 The Vernon Housing Commission enacted policies to limit rent increases to the lesser of the Consumer Price Index for the region or 3% and to limit the initial rental rate of vacated units to HUD’s Fair Market Rate for Vernon. Other (describe how this meets subarea objective) Climate Adaptation Building standards, zoning and site planning requirements that address flood and fire safety, climate adaptation and hazard mitigation. 11/5/2019 Vernon adopted code amendments to the 2019 editions of the California Building Code, California Residential Code, and the California Green Building Standards to address hazard mitigation. Long-term planning that addresses wildfire, land use for disadvantaged communities, and flood and local hazard mitigation. Community engagement that provides information and consultation through a variety of methods such as meetings, workshops, and surveys and that focuses on vulnerable populations (e.g., seniors, people with disabilities, homeless, etc.). Other (describe how this meets subarea objective) Certification: I certify under penalty of perjury that all information contained in this LEAP State Planning and Other Planning Priorities certification form (Attachment 2) is true and correct. Certifying Officials Name: Daniel Wall Certifying Official’s Title: Director of Public Works Certifying Official’s Signature: Date: January 28, 2021 LEAP NOFA Application Rev. 6/1/2020 Page 12 of 14 Attachment 4: Required Resolution Template RESOLUTION NO. [insert resolution number] WHEREAS, pursuant to Health and Safety Code 50515 et. Seq, the Department of Housing and Community Development (Department) is authorized to issue a Notice of Funding Availability (NOFA) as part of the Local Government Planning Support Grants Program (hereinafter referred to by the Department as the Local Early Action Planning Grants program or LEAP); and WHEREAS, the City Council of City of Vernon desires to submit a LEAP grant application package (“Application”), on the forms provided by the Department, for approval of grant funding for projects that assist in the preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing need assessment; and WHEREAS, the Department has issued a NOFA and Application on January 27, 2020 in the amount of $119,040,000 for assistance to all California Jurisdictions; Now, therefore, the City Council of City of Vernon (“Applicant”) resolves as follows: SECTION 1. The Director of Public Works is hereby authorized and directed to apply for and submit to the Department the Application package; SECTION 2. In connection with the LEAP grant, if the Application is approved by the Department, the Director of Public Works of the City of Vernon is authorized to submit the Application, enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement (Standard Agreement) for the amount of sixty-five thousand dollars, and any and all other documents required or deemed necessary or appropriate to evidence and secure the LEAP grant, the Applicant’s obligations related thereto, and all amendments thereto; and SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the NOFA, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement. Pursuant to the NOFA and in conjunction with the terms of the Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Application. ADOPTED ON [insert the date of adoption], by the City Council of City of Vernon by the following vote count: AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED AS TO FORM: [Signature of Attesting Officer] APPROVED [Signature of approval] LEAP NOFA Application Rev. 6/1/2020 Page 13 of 14 Appendix A (Continued) The City of Vernon is located in the Gateway Cities region of Southeast Los Angeles County. The Gateway Cities are a collection of 27 cities and various unincorporated communities with a population of 2.1 million people, including 16 cities with a higher population density than the City of Los Angeles. Housing expertise is needed at the regional level to help reconcile state policies and priorities with local jurisdiction concerns, identify and remove barriers to housing development, and assist cities in meeting housing production goals for the 6th cycle. In recognition of these needs, the City of Vernon will allocate 1% of its maximum eligible LEAP funds to the Gateway Cities Council of Governments (GCCOG), a Joint Powers Authority of the Gateway Cities region, to help continue the regional housing planning efforts begun in 2019 by a similar allocation of SB2 Planning Grant funds. Funding will pay for a COG staff member to focus solely on helping cities accelerate housing production, by organizing region-wide housing workshops, creating shared informational resources, and identifying and promoting best practices from inside and outside the region. The funded COG staff position provides necessary housing expertise, and helps Gateway Cities staff better understand affordable housing production, tax credits, land acquisition policies and practices, options for funding, and other relevant topics related to planning and process improvements to accelerate housing production and facilitate compliance with the 6th cycle housing element. Please see the Joint Powers Agreement supporting the establishment of the COG attached to this application. EXECUTION COPY JOINT EXERCISE OF POWERS AGREEMENT OF THE GATEWAY CITIES COUNCIL OF GOVERNMENTS (A JOINT POWERS AUTHORITY) October 2007 EXECUTION COPY TABLE OF CONTENTS 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………………………………………..2 C. Exercise of Powers……………………………………...4 D. Restrictions on Exercise of Powers…………………...4 Section 5. Creation of Board of Directors…………………………………………….5 A. Designation of Board of Directors Representatives…5 B. Designation of Alternate Board Representatives……5 C. Eligibility………………………………………………….5 Section 6. Use of Public Funds and Property………………………………………..5 Section 7. Functioning of Board of Directors…………………………………………6 A. Voting and Participation………………………………...6 B. Proxy Voting……………………………………………..6 C. Quorum…………………………………………………..6 D. Committees……………………………………………...6 E. Actions……………………………………………………6 -i- EXECUTION COPY Section 8. Duties of the Board of Directors…………………………………………..6 Section 9. Roberts Rules of Orders…………………………………………………...6 Section 10. Meetings of Board of Directors…………………………………………..7 Section 11. Election of President and Vice-President……………………………….7 Section 12. Creation of Executive Committee of Board of Directors………………7 Section 13. Executive Director…………………………………………………………7 Section 14. Creation of City Managers Policy Advisory Committee……………….8 A. Designation of City Managers Policy Advisory Committee Representatives……………………………8 B. Eligibility…………………………………………………..8 Section 15. Creation of City Managers Policy Advisory Steering Committee…….8 A. Designation of Southeast Los Angeles County City Managers Group Chair…………………………….8 B. Election of Additional City Managers Policy Advisory Steering Committee Members……………….8 Section 16. Designation of Treasurer and Auditor……………………………………9 Section 17. Council of Treasurer and Council Auditor……………………………….9 Section 18. Designation of Other Officers and Employees………………………….9 Section 19. Obligations of Council……………………………………………………..9 Section 20. Control and Investment of Council Funds………………………………9 Section 21. Implementation Agreements……………………………………………..9 -ii- EXECUTION COPY Section 22. Term…………………………………………………………………………9 Section 23. Application of Laws to Council Functions……………………………...10 Section 24. Members…………………………………………………………………..10 A. Withdrawal………………………………………………………10 B. Non-Payment of Dues…………………………………………10 C. Admitting Eligible Members…………………………………...11 D. Admitting New Members………………………………………11 Section 25. Interface With Function of Members……………………………………11 Section 26. Dues of Members…………………………………………………………11 Section 27. Disposition of Assets……………………………………………………..11 Section 28. Amendment……………………………………………………………….11 Section 29. Effective Date…………………………………………………………….11 -iii- EXECUTION COPY 1 JOINT EXERCISE OF POWERS AGREEMENT OF THE GATEWAY CITIES COUNCIL OF GOVERNMENTS (A JOINT POWERS AUTHORITY) This Joint Exercise of Powers Agreement of the Gateway Cities Council of Governments (“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 et seq. of the Government Code and other applicable law: W I T N E S S E T H: 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 cities in Southeast Los Angeles County have worked together on an as needed basis to address area wide problems and issues, ranging from flood control, groundwater contamination, transportation, solid waste, air quality and through numerous professional groupings of city officials to address legislative changes and other issues. However, the growing need for the cities in Southeast Los Angeles County to develop and implement their own sub-regional policies and plans and voluntarily and cooperatively resolve differences among themselves requires a more representative and formal structure. B. There is further a growing need for the cities in Southeast Los Angeles County to involve the unincorporated areas of Los Angeles County (the “County”) located in the Southeast Los Angeles County in the development and implementation of sub-regional policies and plans and in the voluntary and cooperative resolution of differences between the cities and the unincorporated areas. C. 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 sub-regional basis through the establishment of a council of governments; D. The public interest requires that an agency explore areas of intergovernmental cooperation and coordination of government programs and provide recommendations and solutions to problems of common and general concern to its Members; EXECUTION COPY 2 E. 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 implement any plans or strategies that they do not wish to undertake (except for the payment of dues); F. Each Member is a governmental entity established by law with full powers of government in legislative, administrative, financial, and other related fields; G. Each Member, by and through its legislative body, has determined that a sub-regional organization to assist in planning and voluntary coordination among the cities in Southeast Los Angeles County is required in furtherance of the public interest, necessity and convenience; and H. 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 Legal 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 power 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 Gateway Cities 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 Southeast Los Angeles County. B. Common Powers. The Council shall have, and may exercise, the following powers: (1) Serve as an advocate in representing the Members of the Gateway Cities Council of Governments at the regional, state and federal levels on issues of importance to Southeast Los Angeles County; EXECUTION COPY 3 (2) Serve as a forum for the review, consideration, study, development and recommendation of public policies and plans with regional significance, including but not limited to the following: (a) Promote the economic development of the sub-region by maximizing the sub-region’s competitive advantage, to overcome influences that are eroding the sub-region’s economy and to work cooperatively with the private sector; (b) Assume responsibility for the sub-regional transportation planning process, to advocate for maximum public sector funding for the sub-region’s transportation needs, to create an open process for determining the sub-region’s transportation priorities, to elevate the decision making process to the elected officials upon the recommendations of the City Managers of the sub-region; (c) To be sufficiently involved in the activities of the South Coast Air Quality Management District so as to respond to District Actions affecting the best interests of the members of the Council of Governments; (d) To be sufficiently involved in the oversight and management of the data base of the sub-region, including but not limited to the areas of population, employment, and housing so as to avoid manipulation of the data base by others that is not in the best interest of the sub-region; and to strive for accurate and true measures of the needs of the sub-region when judged on a statistical measure for funding, representation or any other purpose; (e) To perform the Southern California Association of Governments (SCAG) sub-regional planning process; (f) Work with the sub-region’s State and federal elected representatives for the benefit of the members of the Council of Governments; (g) Seek to maximize and protect the sub-region’s fair share of all State and Federal funding; EXECUTION COPY 4 (h) Serve as a mechanism for obtaining state, federal or regional grants to assist in financing the expenditures of the Council of Governments; (3) Assist in resolving conflicts among the cities in Southeast Los Angeles County as they work to achieve common goals; (4) Explore practical areas for voluntary intergovernmental cooperation in improving the administration or efficiency in the delivery of government services; (5) Work toward building consensus among the cities of Southeast Los Angeles County as they strive for common goals for themselves or the sub-region; (6) Make and enter into contracts, including contracts for the services of engineers, consultants, planners, attorneys, and single purpose public or private groups; (7) Employ agents, officers and employees; (8) Apply for, receive and administer a grant or grants under any federal, state or regional programs; (9) Receive gifts, contributions and donations of property, funds, services and other forms of financial assistance from person, firms, corporations and any governmental entity; (10) Lease, manage, maintain, and operate any buildings, works or improvements, and (11) 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. D. Restrictions on Exercise of Powers. In accordance with Government Code Section 6509, the powers of the Council shall be exercised in the manner prescribed in the Joint Exercise of Powers Act, Government Code Sections 6500 et seq., as EXECUTION COPY 5 that Act now exists and may hereafter be amended, and shall be subject to the restrictions upon the manner of exercising such powers that are imposed upon the City of Paramount, a general law city, in the exercise of similar powers, provided, however, that if the City of Paramount shall cease to be a member, then the Council shall be restricted in the exercise of its power in the same manner as the City of Pico Rivera, a general law city. Section 5. Creation of Board of Directors. There is hereby created a Board of Directors for the Council (“Board”) to conduct the affairs of the Council. The Board shall be constituted as follows: A. Designation of the Board of Directors Representatives. Except with regard to the County, one person shall be designated as a representative of the Board of Directors by the legislative body of each of the Members (“Board Representative”). The County, in its sole discretion, but subject to the requirement that it shall pay dues and assume all obligations under this Agreement in proportion to the number of its Representatives, shall have one, two or three Board Representatives. The Board Representative(s) for the County shall reside in and/or represent one of the First, Second or Fourth Supervisorial Districts and shall be selected by the respective County Supervisor for said District. The Mayor of the City of Long Beach shall be a Board Representative in addition to one person designated by the city’s legislative body. B. Designation of Alternate Board Representatives. Except with regard to the County, one person shall be designated as an alternate representative of the Board by the legislative body of each of the Members (“Alternate Board Representative”). The County shall have one, two or three Alternate Board Representatives, each acting as an alternate for only one of the First, Second and/or Fourth Supervisorial Districts. The Alternate Board Representative(s) for the County shall be selected by the respective County Supervisor(s) for the First, Second or Fourth Supervisorial Districts and shall reside in and/or represent that same Supervisorial District. C. Eligibility. No person shall be eligible to serve as a Board Representative or an Alternate Board Representative unless that person is, at all times during the tenure of that person as a Board Representative or Alternate Board Representative, a member of the legislative body of one of the appointing Members. Should any person serving on the Board fail to maintain the status as required by this Section 5, that person’s position on the 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 Board of Directors of the Council, the Members shall participate in the EXECUTION COPY 6 funding of the Council in such a manner as the Board shall prescribe, subject to the provisions of Section 26 of this Agreement. Where applicable, the 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 Board of Directors. A. Voting and Participation. Each Member may cast only one vote for each issue before the Board through its representatives. An Alternate Board Representative may participate or vote in the proceedings of the Board only in the absence of that Member’s Board Representative. Board Representatives and Alternate Board Representatives seated on the Board of Directors shall be entitled to participate and vote on matters pending before the Board only if such person is physically present at the meeting of the Board of Directors and if the Member which that Board Representative or Alternate Board Representative represents has timely and fully paid dues as required by this Agreement and the Bylaws. B. Proxy Voting. No absentee ballot or proxy shall be permitted. C. Quorum. A quorum of the Board of Directors shall consist of not less than fifty percent (50%) plus one (1) of its total voting membership. D. Committees. As needed, the Board may create permanent or ad hoc advisory committees to give advice to the Board of Directors on such matters as may be referred to such committee by the 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 Board. Qualified persons shall be appointed to such committees by the Board and each such appointee shall serve at the pleasure of the Board. Committees, unless otherwise provided by law, this Agreement, the Bylaws or by direction of the Board, may be composed of representatives to the Board and non-representatives to the Board. E. Actions. Actions taken by the Board shall be by not less than fifty percent (50%) plus one (1) of the voting representatives of the 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 Board of Directors, a higher number of votes is required to carry a particular motion. Section 8. Duties of the Board of Directors. The 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 Board, shall be exercised by and through the Board. Section 9. Roberts Rules of Order. The substance of Roberts Rules of Order shall apply to proceedings of the Board, except as may otherwise be provided by provisions of applicable law, this Agreement, the Bylaws or by direction of the Board. EXECUTION COPY 7 Section 10. Meetings of Board of Directors. The Board shall, by means of the adoption of Bylaws, establish the dates and times of regular meetings of the Board. The location of each such meeting shall be as directed by the Board. Section 11. Election of President and Vice-President. The President shall be the chairperson of the Board, shall conduct all meetings of the Board and perform such other duties and functions as required of such person by provisions of applicable law, this Agreement, the Bylaws or by the direction of the Board. The Vice-President shall serve as chairperson 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 of the Board or the President. At the first regular meeting of the Board, a Board Representative shall be elected to the position of Chair by the Board, and a different Board Representative shall be elected to the position of Vice-Chair of the Board. The terms of office of the Chair and Vice-Chair elected at the first regular meeting of the Board shall expire at the regular meeting of the Board held in June 1998, or upon election of replacements. Thereafter, a Board Representative shall be elected annually to the position of President, and a different Board Representative shall be elected to the position of Vice-President of the Board at the regular meeting of the Board held in June of each calendar year. Thereafter the terms of office of the President and Vice-President shall commence and expire at the regular meeting of the Board held in June of each calendar year. If there is a vacancy, for any reason, in the position of President or Vice- President, the Board shall forthwith conduct an election and fill such vacancy for the unexpired term of such prior incumbent. Section 12. Creation of Executive Committee of the Board of Directors. A. An Executive Committee of the Board of Directors (“Executive Committee”) is created to act on behalf of the Board of Directors, between meetings of the Board, within the scope of the adopted budget and within basic policies of the Board. B. Members of the Executive Committee shall be the President, First Vice- President, Second Vice President and Immediate Past President of the Board of Directors and shall serve as the President, First Vice-President, Second Vice President and Immediate Past President of the Executive Committee. Eight additional Board representatives shall be elected by the Board of Directors from city Members to serve as members of the Executive Committee. Additional positions on the Executive Committee shall be the Mayor of the City of Long Beach and one, two or three members of the Board of Supervisors of the County of Los Angeles, as selected by the Board of Supervisors of the County of Los Angeles. The Board of Directors shall encourage geographic equity with respect to Executive Committee membership. Section 13. Executive Director. The Executive Committee shall appoint an Executive Director upon concurrence by fifty percent (50%) plus one (1) of the total voting membership of the Board of Directors, a qualified person to be Executive Director on any basis the Executive Committee desires including, but not limited to, a contract or EXECUTION COPY 8 employee basis. The Executive Director shall be neither a Board Representative, nor an Alternate Board Representative, nor an elected official of any Eligible Public Entity (as defined in Section 24(c) of this Agreement). The Executive Director shall be the chief administrative officer of the Board. The Executive Director shall receive such compensation as may be fixed by the Executive Committee with the concurrence of the Board of Directors. The Executive Director shall serve at the pleasure of the Board of Directors and may be relieved from such position at any time, without cause, by a vote of fifty percent (50%) plus one (1) of the total voting membership of the Board of Directors taken at a regular, adjourned regular or special meeting of the 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 Executive Committee. Section 14. Creation of City Managers Policy Advisory Committee. There is hereby created a City Managers Policy Advisory Committee (“Policy Advisory Committee”) to advise the Board. The Policy Advisory Committee shall be constituted as follows: A. Designation of City Managers Advisory Committee Representatives. The City Manager (or person holding the equivalent position, which position differs only in title) of each of the Members shall be designated as a representative of the City Managers Policy Advisory Committee (“Policy Advisory Committee Representative”) B. Eligibility. No person shall be eligible to serve as a Policy Advisory Committee Representative unless that person is, at all times during the tenure of that person as a Policy Advisory Committee Representative, a city manager (or a person holding the equivalent position, which position differs only in title) of one of the appointing Members. Should any person serving on the Policy Advisory Committee fail to maintain the status as required by this Section 14, that person’s position on the Policy Advisory Committee shall be deemed vacated as of the date such person ceases to qualify pursuant to the provisions of this Section 14 and the Member shall be entitled to appoint a qualified replacement. Section 15. Creation of City Managers Policy Advisory Steering Committee. There is hereby created a City Managers Policy Advisory Steering Committee (“Steering Committee”) to advise the Executive Committee. The Steering Committee shall be constituted as follows: A. Designation of Southeast Los Angeles County City Managers Group Chair. The Chair of the Southeast Los Angeles County (“SELAC”) City Managers Group shall be a member of the Steering Committee regardless if he or she is employed by a city that is not a Member of the Council. B. Election of Additional City Managers Policy Advisory Steering Committee Members. Five additional Policy Advisory Committee EXECUTION COPY 9 Representatives shall be elected by the Policy Advisory Committee to serve as members of the Steering Committee. Section 16. Designation of Treasurer and Auditor. The Board of Directors 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. The compensation, if any, of a person or persons holding the offices of Treasurer and/or Auditor shall be set by the Board of Directors. Section 17. Council Treasurer and Council Auditor. 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 Board of Directors. 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 Board of Directors. Section 18. Designation of Other Officers and Employees. The Board may employ such other officers or employees as it deems appropriate and necessary to conduct the affairs of the Council. Section 19. 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 20. Control and Investment of Council Funds. The Board of Directors 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 21. Implementation Agreements. When authorized by the Board of Directors, 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 22. 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 (50%) plus one (1) of the then total voting membership of the Board of Directors. EXECUTION COPY 10 Section 23. 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 et seq., of the Government Code.) Section 24. Members. A. Withdrawal. A Member may withdraw from the Council by filing its written notice of withdrawal with the President of the Board of Directors 60 days before the actual withdrawal. Such a withdrawal shall be effective at 12:00 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 of the withdrawn Member in existence as of the effective date of its withdrawal. Withdrawal of a Member shall not affect the remaining Members. A withdrawn Member shall not be entitled to the return of any funds or other assets belonging to the Council, until the effective date of termination of this Agreement, except that 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. In addition to being entitled to completely withdraw from the Council, the County may also partially withdraw and reduce its annual dues with a corresponding reduction in its ability to participate in and vote on matters before the Board by filing a written notice of partial withdrawal with the President of the Board of Directors 60 days before the actual partial withdrawal. Such partial withdrawal shall indicate which Supervisorial District(s) shall remain active in the Council and which are being withdrawn and shall be effective at 12:00 o’clock am on the last day of that 60-day period. Partial withdrawal shall not change the rights and obligations of the County under this Agreement except that the County’s annual dues shall be adjusted, on a pro rata basis, using the effective date of any Supervisorial District withdrawal and the County shall be entitled to the balance of the annual dues paid for the fiscal year by the County which were intended for the remaining part of that fiscal year for the Supervisorial District(s) being withdrawn from participation and the County shall no longer be able to participate in or vote on behalf of the withdrawn Supervisorial District(s) on any matter before the Board or Council committees. B. Non-Payment of Dues. If a Member fails to pay dues within three months of the annual dues assessment as required under Section 26 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 Board of Directors. 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. In the case of the County, if the County fails to pay dues for one or more of its Supervisorial Districts within three months of the County’s annual dues assessment as required under Section 26 of this Agreement and the Bylaws, and after a 30-day written notice is provided to the County, no representative of the delinquent Supervisorial District(s) shall participate or vote on the Board. The delinquent Supervisorial District(s) shall be able to resume participation and voting on the Board only upon the payment of all dues then owed by the County on behalf of the delinquent EXECUTION COPY 11 Supervisorial District including dues incurred prior to and during the period of non- payment by the County. 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 a majority vote of the legislative body of the Eligible Public Entity and 2) properly signing this Agreement, and 3) paying in full all dues owed for then current fiscal year. Since County may be admitted to the Council with voting representatives from one, two or three Supervisorial Districts, the dues to be paid by County will be based upon the number of Supervisorial Districts that will represent the County in the Council. County, in its sole discretion, may be admitted to the Council with representation from fewer than three Supervisorial Districts and may subsequently increase County’s representation by one or more additional Supervisorial Districts contingent only on payment in full at the time that any additional Supervisorial District commences representation of the County of all dues for the then current fiscal year for said Supervisorial District. 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 29 of this Agreement). No vote of the Board of Directors 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 Board provided that such a proposed new Member is a city whose jurisdiction, or part thereof, lies within and/or immediately adjacent to, Southeast Los Angeles County. Admission shall be subject to such terms and conditions as the Board of Directors may deem appropriate. Section 25. Interference With Function of Members. The Board of Directors shall not take any action which constitutes an interference with the exercise of lawful powers by a Member of the Council. Section 26. Dues of Members. The Members of the Council shall be responsible for the payment to the Council, annually, of dues in amounts periodically budgeted by the Board, as and for the operating costs of the Council (“Dues”) as provided in the Bylaws. Section 27. 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 26 hereof. Section 28. Amendment. This Agreement may be amended at anytime with the consent of fifty percent (50%) plus one (1) of all of the legislative bodies of the then parties hereto. Section 29. Effective Date. The effective date (“Effective Date”) of this Agreement shall be the first date on which fifty percent (50%) plus one (1) of the Eligible Public Entities adopt and sign this Agreement. EXECUTION COPY 13 EXHIBIT A Artesia Lakewood Avalon Long Beach Bell Lynwood Bell Gardens Maywood Bellflower Montebello Cerritos Norwalk Commerce Paramount Compton Pico Rivera Cudahy Santa Fe Springs Downey Signal Hill Hawaiian Gardens South Gate Huntington Park Vernon La Habra Heights Whittier La Mirada County of Los Angeles EXECUTION COPY 14 Revisions 1999 Section 11. Election of Chair and Vice-Chair 1999 Section 12. Creation of Executive Committee of the Board of Directors 2007 Section 5A. Designation of Board of Directors Representatives 2007 Section 5B. Designation of Alternate Board Representative 2007 Section 11. Election of President and Vice-President 2007 Section 12. Creation of Executive Committee of the Board of Directors 2007 Section 24A. Withdrawal 2007 Section 24B. Non-Payment of Dues 2007 Section 24C. Admitting Eligible Members LEAP NOFA Application Rev. 6/1/2020 Page 14 of 14 Appendix B This page intentionally left blank.