Agenda — Avalon City Council, March 7, 2023

AMENDED

AVALON CITY COUNCIL MEETING
TUESDAY, MARCH 7, 2023 — 5:00 P.M.
410 AVALON CANYON ROAD
THIS VIRTUAL MEETING IS HELD PURSUANT TO AB 361
AGENDA
In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office (310) 510-0220, Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35. 102-35.104 ADA Title II). All public records relating to an agenda item on this agenda are available for the public inspection at the time the records are distributed to all, or a majority of all, members of the City Council. Suchrecords shall be available at City Hall located at 410 Avalon Canyon Rd.

Due to social distancing recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (Cal/OSHA) and the County of Los Angeles, and pursuant to findings made under AB 361, the CITY OF AVALON’S CITY COUNCIL SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancing requirements. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.

Council Chambers are open to a maximum 30 members of the general public. Once the Council Chambers reach maximum occupancy, the general public may participate in OralCommunication and address the City Council on an agenda item in person by waiting in the City Hall Court Yard and entering the Chambers one at a time at the appropriate time. No one will be admitted into the Council Chambers who is ill or exhibiting symptoms of COVID-1 9. Additionally,the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments toaskcityofavalon.com.

The meeting can be viewed:

On local cable: Catalina Broadband Solutions channel 3
Streaming Online: www.cityofavalon.com/meetings *Streaming on Facebook Live: www.facebook.com/CityOfAvalonOfficial Streaming on YouTube: https:l/www.youtube,com/CityofAvalonCA To submit comments live using ZOOM, please register in advance for this meeting: https:I/uso6web.zoom.uslj/84531231 381 ?pwthSl NMUDE4cENmKytaZOZvb2tIOURTdzO9

ZOOM PUBLIC PARTICIPATION
If you wish to speak on any item on the agenda, please register in advance by clicking the following link: https:/Jus06web.zoom.us/i/84531 231381 ?pwd=S1 NMUDE4cENmKyIaZOZvb2tIQURTdzO9 even when submitting this request you will need to use the “raise hand” feature via Zoom during the presentation of that Agenda Item in order to confirm with the City Clerk’s Office that you wish toprovide comments.

CITY COUNCIL AGENDA
MARCH 7, 2023PAGE 2
1) Join Zoom Meeting via the internet:

URL: https://usO6web.zoom.us/j/84531 231381 ?pwdSl NMUDE4cENmKytaZOZvb2tIQURTdzO9 Meeting ID: 645 3123 1381During the meeting you will need to use the “raise hand button through Zoom at the time the Agenda Item is being presented for City Council consideration. 2) Join Zoom Meeting via Phone Conference (Voice Only):

Phone Number: (669)444-9171,
Meeting ID: 845 3123 1381
When you would like to comment during the meeting enter *9 on the phone’s key pad to activate the “raise hand” button at the time the Agenda Item is being presented for CityCouncil consideration.

Please note, the City is not responsible for the public’s use of Zoom as it relates to the software, configuration, and setting on a personal device. The public is encouraged to visit the Zoom website for information on use of this software.

CALL TO ORDER I PLEDGE OF ALLEGIANCE I INVOCATION I ROLL CALL

ANNOUNCEMENTS I WRITTEN COMMUNICATIONS

DEPARTMENT HEAD REPORTS
CITY MANAGER REPORT! CITY ATTORNEY REPORT

COUNCILMEMBER REPORTS I MAYOR REPORTORAL COMMUNICATION
Members of the public may address the City Council at this time. No action will be taken on nonagenda items at this meeting. Speakers should limit comments to two (2) minutes each.

PRESENTATION — Finance Director Matthew Baker will present the FY 2021-2022 Annual Comprehensive Financial Report audited by Davis Farr LLP.

CONSENT CALENDAR

1. Minutes
Although the live recording is the official record of public meetings, actions are preparedfor the Council’s approval.

Recommended Action
Approve minutes from the February 7, 2023 and February 21, 2023 regular City Council Meetings.

CITY COUNCIL AGENDA
MARCH 7, 2023
PAGE 3

2. Warrants
Expenditures Submitted for Approval
o Warrants in the amount of $1028075.87.o One payroll in the amount of $207316.18. o Fourelectronicfund transfers totaling $135,165.52.

Recommended Action
Approve the disbursements for February 13, 2023 through February 24, 2023 totaling $1,370,577.57.

3. Findings to Continue to Hold Remote TeleconferenceNirtual City Council Meetings Pursuant to Assembly Bill 361
As the State of Emergency has ended, the City Council can continue to hold virtual meetings without providing notice of the City Council’s teleconference location if the City Council makes the following two findings: 1. State or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and

2. The City Council reconsiders the circumstances of the state of the emergency and danger presented by COVID-1 9; Having made the findings, the City Council can continueevery 30 days to authorize meetings under AB 261 to protect the health or safety of attendees.

Recommended Action
Reconsider the circumstances of COVID-19 state of emergency proclaimed by the Governor and COVID-19’s continued impact and determine that state or local officialshave imposed or recommended measures to promote social distancing in connection with COVID-19, and as such, that continuing to utilize the protections of Assembly Bill 361 will protect the health and safely of attendees.

4. Membership in the Gateway Cities Affordable Housing Trust, a Joint Powers Authority The Gateway Cities Affordable Housing Trust (Trust), a Joint Powers Authority (JPA) provides funding to preserve and produce affordable housing. These funds improve the financial viability of individual housing projects and programs.

Recommended Action

1. Adopt a resolution approving City execution of the Joint Exercise of Powers Agreement relating to membership in the Gateway Cities Affordable Housing Trust; and 2. Authorize the City Manager to execute the Gateway Cities Affordable Housing Trust Joint PowersAuthority (JPA) Agreement.

5. Surplus and Excess Land Inventory Report
Government Code section 54230 mandates that all California cities and counties prepare an inventory of all “surplus land,” as that term is defined in the Surplus Land Act.

Recommended Action
Adopt a resolution adopting an inventory report of the City’s surplus and excess land, pursuant to Government Code section 54230.

CITY COUNCIL AGENDA
MARCH 7, 2023PAGE 46. Island Express Helicopter Services, Inc. Lease Transfer On December 22, 2022, City Staff received a request from Island Express HelicoptersServices. Inc. to transfer the lease for the city-owned property at 300-C Pebbly Beach Road to Maverick Express, LLC.Recommended Action
Authorize the City Manager to amend and transfer the lease with Island Express Helicopter Services, Inc., for the city-owned property at 300-C Pebbly Beach Road, to Maverick Express, LLC. Authorize the City Manager use his discretionary authority to assess a Transfer Fee as established in the lease agreement.

GENERAL BUSINESS

7. Federal Emergency Management Agency Staffing for Adeguate Fire and Emergency Response Grant
City Staff have identified a funding opportunity through the Federal EmergencyManagement Agency to provide additional Staff support for the Fire Department. TheStaffing for Adequate Fire and Emergency Response Grant is a competitive grant created to provide funding directly to fire departments to increase or maintain the number oftrained, “front line” firefighters available to the community.

Recommended Action
Authorize the City Manager or his designee to submit an application for the Federal Emergency Management Agency Staffing for Adequate Fire and Emergency Response Grant.

ADJOURN

NOTICE OF POSTING
I. Devin Elise Hart, declare that the City Council Agenda for Tuesday, March 7, 2023 was posted on Friday, March 3, 2023 on the City’s website www.cityofavalon.com. and at City Hall, 410 Avalon Canyon Road.

Devin Elise Hart, Management Analyst

35.104 ADA Title II). All public records relating to an agenda item on this agenda are available for the public inspection at the time the records are distributed to all, or a majority of all, members of the City Council. Such records shall be available at City Hall located at 410 Avalon Canyon Rd.

Due to social distancing recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (Cal/OSHA) and the County of Los Angeles, and pursuant to findings made under AB 361, the CITY OF AVALONS CITY COUNCIL SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancingrequirements. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.

Council Chambers are open to a maximum 30 members of the general public. Once the Council Chambers reach maximum occupancy, the general public may participate in OralCommunication and address the City Council on an agenda item in person by waiting in the City Hall Court Yard and entering the Chambers one at a time at the appropriate time. No one will be admitted into the Council Chambers who is ill or exhibiting symptoms of CCVI D-19. Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments toask(ãcityofavalon .com.

The meeting can be viewed:

On local cable: Catalina Broadband Solutions channel 3
Streaming Online: www.cityofavalon.com/meetings *Streaming on Facebook Live: wwwfacebook.com/CityOfAvalonOfficial Streaming on Youjube: https://www.youtube.com/CityofAvalonCA To submit comments live using ZOOM, please register in advance for this meeting; https:Iluso6web.zoomus/i/84531 231 381 ?pwdSl NMUDE4cENmKytaZOZVb2tIQURTdzO9

ZOOM PUBLIC PARTICIPATION
If you wish to speak on any item on the agenda, please register in advance by clicking the following link: https://uso6web.zoom.us/i/84531 231381 2pwd=S1 NMUDE4cENmKytaZOZvb2tIQURTdzO9 evenwhen submitting this request you will need to use the “raise hand” feature via Zoom during the presentation of that Agenda Item in order to confirm with the City Clerk’s Office that you wish to provide comments.
1) Join Zoom Meeting via the internet:

URL: https://uso6web.zoom.us/i/84531 231381 ?pwdzSl NMUDE4cENmKVtaZOZvb2tIQURTdzO9Meeting ID: 845 3123 1381

CITY COUNCIL AGENDA
MARCH 7, 2023PAGE 2
During the meeting you will need to use the “raise hand” button through Zoom at the time the Agenda Item is being presented for City Council consideration. 2) Join Zoom Meeting via Phone Conference (Voice Only):

Phone Number: (669)444-9171,Meeting ID: 845 3123 1381
When you would like to comment during the meeting enter 9 on the phone’s key pad toactivate the “raise hand” button at the time the Agenda Item is being presented for CityCouncil consideration.

CALL TO ORDER I PLEDGE OF ALLEGIANCE I INVOCATION I ROLL CALL

ANNOUNCEMENTS I WRITTEN COMMUNICATIONS

DEPARTMENT HEAD REPORTS

CITY MANAGER REPORT I CITY ATTORNEY REPORTCOUNCILMEMBER REPORTS I MAYOR REPORTORAL COMMUNICATION Members of the public may address the City Council at this time. No action will be taken on nonagenda items at this meeting. Speakers should limit comments to two (2) minutes each.

PRESENTATION — Finance Director Matthew Baker will present the FY 2021-2022 AnnualComprehensive Financial Report audited by Davis Farr LLP.

CONSENT CALENDAR

1. Minutes
Although the live recording is the official record of public meetings, actions are preparedfor the Council’s approval.

Recommended Action
Approve minutes from the February 7, 2023 and February 21, 2023 regular City Council Meetings.

2. Warrants
Expenditures Submitted for Approval
o Warrants in the amount of $1,028,075.87.o One payroll in the amount of $207,316.18. o Four electronic fund transfers totaling $135,165.52.

CITY COUNCIL AGENDA
MARCH 7, 2023PAGE 3
Recommended Action
Approve the disbursements for February 13, 2023 through February 24, 2023 totaling $1,370,577.57.

3. Findings to Continue to Hold Remote Teleconference/Virtual City Council Meetings Pursuant to Assembly Bill 361
As the State of Emergency has ended, the City Council can continue to hold virtual meetings without providing notice of the City Council’s teleconference location if the CityCouncil makes the following two findings: 1. State or local officials have imposed orrecommended measures to promote social distancing in connection with COVID-19; and 2, The City Council reconsiders the circumstances of the state of the emergency anddanger presented by COVID-1 9; Having made the findings, the City Council can continue every 30 days to authorize meetings under AB 261 to protect the health or safety of attendees.

Recommended ActionReconsider the circumstances of COVID-19 state of emergency proclaimed by the Governor and COVID-19’s continued impact and determine that state or local officialshave imposed or recommended measures to promote social distancing in connection withCOVID-19, and as such, that continuing to utilize the protections of Assembly Bill 361 willprotect the health and safely of attendees.

Recommended Action

5. Surplus and Excess Land Inventory Report
Government Code section 54230 mandates that all California cities and counties preparean inventory of all surplus land,” as that term is defined in the Surplus Land Act.

Recommended Action
Adopt a resolution adopting an inventory report of the City’s surplus and excess land, pursuant to Government Code section 54230.

6. Island Express Helicopter Services, Inc. Lease Transfer On December 22, 2022, City Staff received a request from Island Express HelicoptersServices, Inc. to transfer the lease for the city-owned property at 300-C Pebbly Beach Road to Maverick Express, LLC.Recommended Action
Authorize the City Manager to amend and transfer the lease with Island Express Helicopter Services, Inc., for the city-owned property at 300-C Pebbly Beach Road, to

CITY COUNCIL AGENDA
MARCH 7, 2023PAGE 4Maverick Express [[C. Authorize the City Manager use his discretionary authority to assess a Transfer Fee as established in the lease agreement.

ADJOURN

NOTICE OF POSTING
I, Devn Elise Hart, declare that the City Council Agenda for Tuesday, March 7, 2023 was posted on Friday, March 3, 2023 on the City’s website www.cityofavalon.com, and at City HaIl, 410 Avalon Canyon Road.
yin Elise Hart, Management Analyst

CITY OF AVALON CITY COUNCIL
MEETING DATE: March 7, 2023 AGENDA ITEM:

ORIGINATING DEP: City Clerk CITY MANAGER: 04(41L{
PREPARED BY: Gabrielle Morones, Deputy City Clerk
SUBJECT: City Council MinutesRECOMMENDED ACTION(S): Approve minutes from the February 7, 2023 and February 21, 2023 regular City Council Meeting.

REPORT SUMMARY: Although the live recording is the official record of publicmeetings, minutes are prepared for the Council’s approval.FISCAL IMPACTS: N/A.

GOAL ALIGNMENT: Not Aligned.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A.

FOLLOW UP ACTION: File minutes in the City Clerk’s office.

ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed onthe posted agenda pursuant to the Brown Act.ATTACHMENTS:
• February 7, 2023 Minutes• February 21, 2023 Minutes

AVALON CITY COUNCIL MEETING
TUESDAY, FEBRUARY 7, 2023 — 5:00 P.M.
410 AVALON CANYON ROAD
THIS VIRTUAL MEETING IS HELD PURSUANT TO AB 361

COMMISSION MEETINGS SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The genera! pub!ic may attend the meeting in the Council Chambers however must adhere to social distancing requirements. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.

Council Chambers are open to a maximum 30 members of the general public. Once theCouncil Chambers reach maximum occupancy, the general public may participate inOral Communication and address the City Council on an agenda item in person by waiting in the City Hall Court Yard and entering the Chambers one at a time at the appropriate time. No one will be admitted into the Council Chambers who is ill or exhibiting symptoms of COVID-19. Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments to askcityofavalon.com.CALL TO ORDER-5:00 p.m.

ROLL CALL- Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Lisa Lavelle, Michael Ponce, Mary Schickling and Yesenia De La Rosa. Also present: City Manager David Maistros, City Attorney Scott Campbell andManagement Analyst Devin Hart.

WRITTEN COMMUNICATIONS-None.

PRESENTATIONS

1. Public Works Director Robert Greenlaw presented an overview of the completed Via Casino Way Arch project.

CONSENT CALENDAR-There were 6 Items on the Consent Calendar. Motion toapprove Items #1-6 made by Michael Ponce, seconded by Yesenia De La Rosa. (All Ayes)

1. Minutes
Approved minutes from the December 20, 2022 regular City Council Meetings.

CITY COUNCIL MINUTES
FEBRUARY 7, 2023PAGE 2

2. Warrants
Approved warrants in the amount of $390,022.33, two payrolls in the amount of $424,897.75, two electronic fund transfers totaling $40,152.61 for a total of$855,072.69 for January 9, 2023 through January 27, 2023.

3. Findings to Continue to Hold Remote TeleconferenceNirtual City Council Meetings Pursuant to Assembly Bill 361
Determined that the COVID-19 state of emergency proclaimed by the Governor still exists and has been considered by the City Council in deciding to continue to have teleconference meetings and that state or local officials have imposed orrecommended measures to promote social distancing in connection with COVID 19, and that as a result of the COVID-19 emergency, meeting in person would present imminent risks to the health or safety of attendees.

4. Fiscal Year 2022-2023 First Quarter Treasurer’s Report /Fiscal Year 2022-2023 Second Quarter Treasurer’s Report
Adopted Resolution No. SA 23-02 of the City of Avalon/Successor Agency to theAvalon Community Improvement Agency adopting the Treasurer’s Investment Report for Fiscal Year 2022/2023 First and Second Quarters.

5. Purchase of a Skid Steer for the Wastewater Treatment Plant Authorized City Manager, or their designee, to procure a used skid steer that meets the required specification outlined by Staff, for a total not-to-exceed$66,500 per the City’s purchasing policy.

6. Harbor Patrol Boat Volvo D3 Engine replacement
Authorized the City Manager to approve an expenditure for purchase of a newVolvo D3-200A Engine package for Patrol Boat 1 per the City of Avalon’s purchasing policy.

GENERAL BUSINESS7. FY23 Mid-Year Financial Results and Proposed Budget Amendments (1) Received the report of the Mid-Year Financial Results for FY22-23; and (2) Authorized the proposed budget amendments as outlined in Exhibit A to this report.Motion to approve made by Michael Ponce, seconded by Anni Marshall.(All Ayes)

CITY COUNCIL MINUTES
FEBRUARY 7, 2023
PAGE 3

8. Vehicle Citation Amnesty Program
Adopted Resolution No. 23-03 of the City of Avalon establishing guidelines for a one-time Amnesty Program in the City of Avalon reducing fines for outstanding Vehicle Code Violations.

Motion to approve made by Anni Marshall, seconded by Mary Schickling.(All Ayes) Mayor Marshall adjourned the meeting at 6:39 p.m.I, Gabrielle Morones Deputy City Clerk, do hereby certify that the DVD videotape of theRegular City Council Meeting on February 7, 2023, is the official record of the CouncilMeeting and is on file and maintained in City Hall.

Gabrielle Morones, Deputy City Clerk I Sr. Administrative Assistant

AVALON CITY COUNCIL MEETING
TUESDAY, FEBRUARY 21, 2023— 5:00 P.M.
410 AVALON CANYON ROAD
THIS VIRTUAL MEETING IS HELD PURSUANT TO AB 361

MINUTES
Due to health recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (Cal/OSHA), and the declared state of emergency wherein social distancing measures have been imposed or recommended, the CITY OF AVALON’S CITY COUNCIL and PLANNING COMMISSION MEETINGS SHALL GENERALLY BE AVAILABLE TO THE PUBLICREMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancing requirements. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.

Council Chambers are open to a maximum 30 members of the general public. Once the Council Chambers reach maximum occupancy, the general public may participate in Oral Communication and address the City Council on an agenda item in person by waiting in the City Hall Court Yard and entering the Chambers one at a time at the appropriate time. No one will be admitted into the Council Chambers who is ill or exhibiting symptoms of COVID-19. Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments to askcityofavalon.com.

ROLL CALL-Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Yesenia De La Rosa, Lisa Lavelle, Michael Ponce and Mary Schickling. Also present: City Attorney Scott Campbell, City Manager David Maistros and Deputy City Clerk Gabrielle Morones.

WRITTEN COMMUNICATIONS-None.

PRESENTATIONS

1. A representative from Southern California Edison provided an update regarding Phase I Mandatory Water Conservation. Council member Shickling recused herself due to a Conflict of Interest.

2. Public Works Director Robert Greenlaw presented an overview of the completed Via Casino Way Arch project.

CONSENT CALENDAR-There were five items on the Consent Calendar. Mary pulled Item #4 for further discussion. Motion to approve Items #1, #2, #3, #5 made by Michael Ponce, seconded by Lisa Lavelle. (All Ayes)

1. Minutes
Approved minutes from the January 17, 2023 regular City Council Meeting.

CITY COUNCIL MINUTES
FEBRUARY 21, 2023
PAGE 2

2. Warrants
Approved warrants in the amount of $318,773.88, one payroll in the amount of $292,532.78, three electronic fund transfers totaling $122,146.24 for a total expenditure of $733,452.90 for January 30, 2023 through February 10, 2023totaling.

3. Catalina Island Mortuary Lease Agreement
Authorized the City Manager to execute a lease agreement with Catalina Island Mo rtu a ry.

5. Purchase of a New Skid Steer for Public Works
Authorized City Manager, or their designee, to procure per the City’s purchasing policy, a new skid steer, with several attachments, that meets the requiredspecification outlined by Staff, for a total not-to-exceed $126,500, and amended the budget to increase the vehicle replacement account by $126,500 (13825-6781).

PULLED ITEM

4. Transportation Concepts Contract Amendment
Authorized the City Manager to execute a contract amendment withTransportation Concepts for a one-year extension of the existing contract terms.

Motion to approve made by Anni Marshall, seconded by Mary Schickling. (All Ayes)
GENERAL BUSINESS6. CalRecycle CRV Redemption Pilot Program Amendments Authorized the City Manager to submit an application and letter of interest to CalRecycle to form a Pilot Project Jurisdiction with SoCal Recycling and the City of Long Beach.

Motion to approve made Michael Ponce, seconded by Lisa Lavelle. (All Ayes)

7. Avalon Mode Shift Feasibility Study
City Council heard a presentation regarding the findings of the Avalon Mode Shift Feasibility Study. Consensus was to receive and file the report and toincorporate and prioritize action in the next fiscal year budget in the following project areas:
1) TransitNehicles
2) Vehicle Electrification3) Wayfinding Signage

CITY COUNCIL MINUTES
FEBRUARY 21, 2023PAGE 3
4) Corner of Crescent and Clarissa Ave. (in between ATM and the Pancake Cottage)

8. In-Person and Teleconferencing Meeting Options under the Ralph M. Brown Act and Assembly Bills 361 and 2449
Received a report regarding the following in-person and teleconference meeting options available to the City Council of the City of Avalon (City”) pursuant to the Brown Act and Assembly Bills 361 and 2449.

Consensus was to proceed with Option 1 until the end of the year. Option 1 states City Council will continue to make the requisite findings under Assembly Bill 361 to hold City Council meetings remotely in the absence of a declared statewide emergency in response to the COVID-19 pandemic.City Council will only be able to continue using AB 361 for teleconference meetings if the City Council makes the findings below by majority vote at theMarch 7 meeting, and going forward continues to meet at least every 30 days tomake such findings. The City Council must make the following findings: a.) TheCity Council has reconsidered the circumstances of the state of emergency; andb.)State or local officials continue to impose or recommend measures to promote social distancing, such rules being the Non-Emergency Rules issued byCal/OSHA or rules imposed by the County of Los Angeles.

Mayor Marshall adjourned the meeting at 7:02 p.m.

I, Gabrielle Morones, Deputy City Clerk, do hereby certify that the DVD videotape of the Regular City Council Meeting on February 21, 2023, is the official record of the Council Meeting and is on file and maintained in City Hall.

Gabrielle Morones, Deputy City Clerk I Sr. Administrative Assistant

CITY OF AVALON CITY COUNCIL
MEETING DATE: March 7. 2023 AGENDA ITEM: 2-
ORIGINATING DEP: Finance CITY MANAGER: WWL6A
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve the disbursements for February 13, 2023 through February 24, 2023 totaling $1,370,577.57.

REPORT SUMMARY: These disbursements through February 24 are comprised of warrants totaling $1028075.87, one payroll totaling $207,316.18, and other electronic fund transferstotaling $135,165.52.

ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 35592-35659 $ 1,028,075.87 02/21/23 PAYROLL 207,316.18 02/24/23
EFT-CALPERS RETIREMENT 37,800.18 02/13/23EFT -CALPERS RETIREMENT 33,675.23 02/23/23 EFT -BOOM & BUCKET INC (SKID STEER FOR WWTP) 63,244.50 02/16/23 EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 445.61 02/24/23 TOTAL DISBURSEMENTS $ 1,370,557.57
GOAL ALIGNMENT: Ongoing meeting of City obligations.

FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in the FY22-23 Budget.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown ACt.

ATTACHMENTS: Audit Certificate, Warrant List

CITY OF AVALON
FEBRUARY 13, 2023 - FEBRUARY 24, 2023 DISBURSEMENTS
March 7,2023

ITEM DESCRIPTION AMOUNT DATE
C-F US BANK WARRANTS CK# 355g2-35659 $ 1,028,075.87 02/2 1/23 PAYROLL 207,316.18 02/24/23
[FT -CALPERS RETIREMENT 3180018 02/13/23EFT -CALPERS RETIREMENT 3367523 02/23/23 Eli - BOOM & BUCKET INC (SKID STEER FOR WWTP) 6324450 02/16/23 EFT- HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 445.51 02/24/23 TOTAL DISBURSEMENTS $ 1,370,557.57

CERTIFICATE
IN ACCORDANCE WITH SECTION 32702
OF THE GOVERNMENT CODE. I CERTIFYTHAT THE ABOVE DEMANDS ARE ACCURATE

AND THAT FUNDS ARE AVAILABLE FOR
PAYMENT.

APPROVED AND ALDITED THIS
7TH DAY OF MARCH 2023 I CERTIFY UNDER PENALTY OF PERJURY

THAT THE FOREGOING IS TRUE AND
CORRECT.

AUDIT COMMITTEE -LISA LAVELLE EXECUTED THIS 7TH DAY OF MARCH 2D23

AUDIT COMMIEFEE - MARY SCHICKLING FINANCE DIRECTOR -MATFHEW BAKER

CITY OF AVALON
FEBRUARY 13, 2023 - FEBRUARY 24, 2023 DISBURSEMENTS
March 7, 2023

DION & SONS MARINE FUELS INC
ACTION SALES & METAL CO.AIR SOURCE INDUSTRIES
AMAZON CAPITAL SERVICES, INC.AVALON ENVIRONMENTAL SVCSAVALON FREIGHT SERVICES, LLC

BEST, BEST & KRIEGER, LLPBEYOND SOFTWARE SOLUTIONS

CAFE METROPOLE

CAMPBELL STEPHANIE

CATALINA BEVERAGE COCATALINA CHAMBER OF COMMERCECATALINA COASTAL TOURS & FISHINGCATALINA EXPRESSCATALINA ISLANO COMPANY

CATALINA ISLAND MEDICAL CENTERCDW GOVERNMENT

COMMERCE HOSE & INDUSTRIAL PRODUCTS
DANGELO CODE LA ROSA, YESENIADELL MARKETING L.P,

DEPT OF HEALTH CARE SERVICESDEWEY PEST CONTROLDION & SONS MARINE FUELS INC

EDISONEDWARDS, TRECIA

ESG ENGINEERINGESG ENGINEERINGESG ENGINEERINGESG ENGINEERINGESG ENGINEERING

ESG ENGINEERINGESG ENGINEERINGESG ENGINEERINGESG ENGINEERING

ESG ENGINEERING

ESG ENGINEERINGESG ENGINEERINGESG ENGINEERING

GALLS, LLCGRAINGER

HOME DEPOT CREDIT SERVICES

ISLAND EXPRESS

JORDAHL CONSTRLCTION
LA COUNTY EMS AGENCYLA REGIONAL WATER QUALITY CONTROLLEAGUE OF CALIFORNIA CITIESLINDE GAS & EQUIPMENT INC.

DESCRIPTION

VOID - LOST IN MAILSUPPLIES - HARBORSUPPLIES - FIRE

SUPPLIES
- ALL DEPARTMENTS
CONTRACT SERVICES, SWEEPER - 12/22-01/23

FREIGHT - ALL DEPARTMENTS
LEGAL FEES - 12/2022
CONTRACT SERVICES - ITSENIOR MEALS - 12/22-01/23
REIMB 0/P COSTS

SUPPLIES - ALL DEPARTMENTS
TOT -03/2023
CONTRACT SERVICES - 03/20232N0 HALF 01/2023, TRAVEL -AOMIN/COUNCILRENT - 02/2023

EMPLOYEE SCREENING

SUPPLIES - ITSUPPLIES - HARBORSUPPLIES - HARBOR
REIMB 0/P COSTS

SUPPLIES - IT
DUES - Q4 2022

SERVICE -ADMIN/PUBLIC WORKS/CEMETERY
REISUE CHECK 35499, FUEL HARBOR
UTILITIES -ALL DEPARTMENTSREIMB 0/P COSTS

SERVICE - PUBLIC WORKSSERVICE - PUBLIC WORKS

SERVICE - PUBLIC WORKSSERVICE - PUBLIC WORKSSERVICE -PUBLIC WORKSSERVICE -PUBLIC WORKSSERVICE -PUBLIC WORKS

SERVICE -PUBLIC WORKSSERVICE -PUBLIC WORKSSERVICE -PUBLIC WORKSSERVICE -PUBLIC WORKSSERVICE -PUBLIC WORKS

SERVICE - PUBLIC WORKS

UNIFORMS - FIRE

SUPPLIES - PUBLIC WORKS

FREIGHT - GARAGEHHW DISPOSALEMT RECERTIFICATION
PERMIT FEES - HARBORMEMBERSHIP 2023

SUPPLIES - HARBOR

AMOUNT NAME

CHECK DATE

NUMBER ISSUED
35499 02/14/2023 (514.12)35592 02/17/2023 648.24
35593 02/17/2023 8S.70
35594 02/17/2023 4,095.88
35595 02/17/2023 303,224.9635596 02/17/2023 1,236.2035597 02/17/2023 16,084.56 35598 02/17/2023 4,854.0035599 02/17/2023 1,399.2035600 02/17/2023 116.3035601 02/17/2023 679.93 35602 02/17/2023 104,500.00
35603 02/11/2023 24,083.33
35604 02/11/2023 46,794.60
3560S 02/11/2023 8,687.0035606 02/17/2023 546.00
35607 02/17/2023 164.2135608 02/17/2023 2,278.39
35609 02/17/2023 3,102.2635610 02/17/2023 1SS.6535611 02/17/2023 3,001.283S612 02/17/2023 4,184.46 35613 02/17/2023 758.0035614 02/17/2023 734.9435615 02/17/2023 52,14288 35616 02/17/2023 113,923S617 02/17/2023 50.8835618 02/17/2023 2,939.6335619 02/17/2023 360.00 35620 02/17/2023 8,813,73
35621 02/17/2023 180.00
35622 02/17/2023 3,048.3835623 02/17/2023 360.0035624 02/17/2023 180.0035625 02/17/2023 720.0035626 02/17/2023 4,417.50 3S627 02/11/2023 1,440.0035628 02/17/2023 1,76000
35629 02/17/2023 27,88S.12
35630 02/17/2023 173.2935631 02/17/2023 1,619.10
35632 02/17/2023 553.0435633 02/17/2023 138.003S634 02/17/2023 68.2535635 02/17/2023 120.0035636 02/17/2023 2,134.00 35631 02/17/2023 2,786.00
35638 02/17/2023 22431

Page 1 of 2 ends

CITY OF AVALON
FEBRUARY 13, 2023- FEBRUARY 24, 2023 DISBURSEMENTS
March 7, 2023
MAXINIS PASTERIESMCMASTER-CARRMM INTERNET, INC.MONTROSE ENVIRONMENTAL SOLUTIONS NAPA AUTO PARTSPOLYDYNE, INCQUIlt CORPRICOH USA, INC.RIOS, DIANAROSENOW SPEVACEK GROUP, INC SCHICKLING, MARYSIRIA’S CLEANING SERVICESIRIA’S CLEANING SERVICESO. CALIF. ASSOC. OF GOVERNMENTSPAR<INC CONCEPTS, INC.U LINEUNDERGROUND SERVICE ALERT/SC

VEGA, EDMUNDOVERIZON WIRELESSW TRANSCATALINA ISLAND MEDICAL CENTER

DESCRIPTION

SERVICE - ADMINISTRATIONSUPPLIES-HARBOR, PUBLIC WORKSSERVICE-IT MAINTENANCE-12/2D22
SUPPLIES-GARAGESUPPLIES - WWTPSU PP LiES FIR ECOPIER LEASE -PLANNINGREIMB 0/P COSTSSERVICE -SUCCESSOR AGENCYREIMB 0/P COSTS1ST HALF 02/2023 SERVICE- RECREATIONDUES- FY23
CONTRACT SERVICES -01/2023SUPPLIES -PUBLIC WORKS
SERVICE -PUBLIC WORKSCONTRACT SERVICES - 02/2023COMMUNICATIONS -ALL DEPARTMENTSSERVICE -PLANNINGSALES TAX PASS THRU

ISSUED AMOUNT NAME

CHECK DATE
NUMBER
35639 02/17/2D23 2S0.0035640 D2/17/2D23 1,756.5035641 D2/17/2023 688.20 35642 D2/17/2023 2D,913.7235643 02/17/2023 1,217.0135644 02/17/2023 4,32D.7335645 02/17/2023 119.8535646 02/17/2023 2D.5735647 02/17/2023 76.44 35648 02/17/2023 1,132.5035649 02/17/2023 918.1335650 02/17/2023 9,3S7.9]35651 02/17/2023 35.00 35652 02/17/2023 52900
35653 02/17/2023 69,4003635654 02/17/2023 4343535655 02/17/2023 345035656 02/17/2023 1S,20R3335657 02/17/2023 1,7172935658 02/17/2023 30,2398335659 02/21/2023 225,9171-I 1028,075.87
Psee 2 of 2

CITY OF AVALON CITY COUNCIL
MEETING DATE: March 7, 2023 AGENDA ITEM: 3
ORIGINATING DEP: City Attorney CITY MANAGER: a44g
PREPARED BY: Scott Campbell, City Attorney
SUBJECT: Findings to Continue to Hold Remote TeleconferenceNirtual City Council Meetings Pursuant to Assembly Bill 361
RECOMMENDED ACTION(S): Reconsider the circumstances of COVID-1 9 state of emergencyproclaimed by the Governor and COVID-1 9’s continued impact and determine that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and as such, that continuing to utilize the protections of Assembly Bill 361 will protect the health and safely of attendees.

REPORT SUMMARY: Traditionally, the Brown Act allows for teleconference or virtual meetings, provided that the physical locations of the legislative body’s members joining by teleconference are posted on the agenda, that those locations are open to the public and that a quorum of the members is located within its jurisdiction. AB 361 provides an exception to these procedures in order to allow for fully virtual meetings during proclaimed emergencies, including the COVID-1 9 pandemic.

Since March of 2020 and the issuance of Governor Newsom’s Executive Order N-29-20, whichsuspended portions of the Brown Act relating to teleconferencing, the City Council has had virtual meetings without having to post the location of the legislative body members affending virtually.Most public agencies have been holding public meetings using virtual platforms since this time.

In June of 2021, Governor Newsom issued Executive Order N-08-21, which provided that the exceptions contained in EO N-29-20 would sunset on September 30, 2021.

On September 10, 2021, the Legislature adopted AB 361, which allows public agencies to hold fully virtual meetings under certain circumstances without the posting of the agenda from each location a legislative body member is attending. Governor Newsom signed the bill into law onSeptember 16, 2021. Because it contained an urgency provision, it took immediate effect.

Specific Findings Required underAB 361
As the State of Emergency has ended, the City Council can continue to hold virtual meetings without providing notice of the City Council’s teleconference location if the City Council makesthe following two findings:

1. State or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and

2. The City Council reconsiders the circumstances of the state of the emergency and danger presented by COVID-19;
65059.000(IO\3452048 1.1
Having made the findings, the City Council can continue every 30 days to authorize meetings under AS 261 to protect the health or safety of attendees.

COVID-19 continues to present an imminent threat to the health or safety of members of the public. Although vaccines are now widely available, many people in the State and County are still not fully vaccinated and remain susceptible to infection. The disease can still spread rapidly through person-to-person contact and those in close proximity. During the week of February 24, 1,418 news cases of CDVID-1 9 were reported, COVID-1 9 deaths in the County are still occurring and hundreds of people are hospitalized with COVID-19 in the County The County of Los Angelescontinues to impose and recommend social distancing measures and the County’s state of emergency still exists. Additionally, Cal/OHSA has implemented COVID-19 Prevention NonEmergency Regulations that will remain in effect until February 3, 2025. The City’s economy is dependent upon visitors to the island, the presence of which, increases the likelihood of transmission of the disease. Also, having members of the public attend council meetings at locations where council members are in attendance due to their desire to avoid exposure toCOVID-1 9 poses a risk to the health or safety of attendees.

Re-Authorization is Required Within 30 Days
The City Council made the required findings at its February 7, 2023 City Council meeting.

Consistent with the provisions of AB 361, the new findings must be made every 30 days. At the February 21, 2023 City Council meeting, the City Council considered its options and directed staff to bring forth staff reports each month to continue to make the findings under AB 361 to continueto promote the health and safety of persons attending City Council meetings.

Thus, if the City Council desires to continue to meet remotely without having to post the locationof each teleconference location, the City Council reconsider the facts of the state of emergencyand continued impact of COVID-19, find that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and therefore, that remote meetings under AS 361 should continue in order to protect the health or safety of attendees.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City Council will have to follow the Brown Act provisions that existed prior to the COVID-1 9 pandemic.

FOLLOW UP ACTION: That the City Council make the findings under AB 361 at its April 4, 2023City Council meeting.GOAL ALIGNMENT: N/A FISCAL IMPACTS: None.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.ATTACHMENTS: None.
65059.00000\34520481 .1

CITY OF AVALON CITY COUNCIL
MEETING DATE: March 7, 2023 AGENDA ITEM:

ORIGINATING DEP: City Attorney CITY MANAGER: fJMAPREPARED BY: David Maistros, City Manager SUBJECT: Membership in the Gateway Cities Affordable Housing Trust, a Joint Powers Authority
RECOMMENDED ACTION(S): 1. Adopt a resolution approving City execution of the Joint Exercise of Powers Agreement relating to membership in the Gateway Cities Affordable Housing Trust; and 2. Authorize the City Manager to execute the Gateway Cities Affordable Housing Trust Joint Powers Authority (JPA) Agreement.

EXECUTIVE SUMMARY: Staff recommends that the City of Avalon join the Gateway Cities Affordable Housing Trust (Trust), a Joint Powers Authority (JPA) formed among the cities withinthe Gateway Cities region. The Trust provides funding to preserve and produce affordable housing. These funds improve the financial viability of individual housing projects and programs.

This funding can also increase each project’s competitiveness for additional state and federalfunding sources. Additionally, the Trust works with a variety of government and philanthropy groups to attract more housing funds to the Gateway Cities region. Joining the Trust wouldsupport the City to achieve the stated goals and objectives of the 6th Cycle Housing Element andsupport the region as a whole to bring new dollars to help fund more affordable housing development. To become a member, the City Council would adopt a resolution and authorizethe City Manager to execute the JPA with Trust.

BACKGROUND: The Gateway Cities region of Los Angeles County includes 27 cities located along the 1-710 corridor in eastern Los Angeles County. Early in 2021 the Gateway Cities Council of Governments (GCCOG) obtained State funding from the Southern California Association of Governments (SCAG) to explore the formation of an affordable housing trustwithin the region.

Since then, GCCOG and their consultant conducted the following activities:
• Interview the GCCOG cities to determine their housing needs and priorities, explain the concept of the Trust, and investigate their interest in being a member. • Interview other stakeholders in the region in the same fashion, including the County of Los Angeles, affordable housing developers, financing entities, advocates, research organizations, and other related entities to gain their perspectives. • Provide an overview of best practices from other local housing trust fund studies, as well as a comparative review of the range of organizational and governance structures. • Conduct a study of the overall housing needs in the region, determine the existing sources of support to meet these needs, and estimate how much additional funding support willbe needed for cities to meet these needs and satisfy their Regional Housing Needs Assessment obligations.
• Identify affordable and homeless housing developments planned within the Gateway Cities, including those in construction and those in the entitlement and pre-developmentphases. Compare the number of units to be provided and the populations to be servedby these units to the housing need report. • Form a Steering Committee of Gateway COG City Managers and others to work with the Gateway Cities COG and the consultants to make the initial recommendations for how a Trust might be formed and explore the initial sources of funding to support this effort. • Based on dialogue with the Trust Steering Committee, create and support the negotiation of a Joint Powers Agreement for the Trust, develop an Administrative Plan, GovernanceStructure, and Bylaws for the Trust. • Prepare a draft strategic plan for the new Trust, for review and acceptance by the Gateway Cities COG Board and final adoption by the new Board of Directors of the Trust when that Board is in place.
• Develop an operational plan for the first full year of operations of the Trust, proposed as fiscal year July 1st, 2023, to June 30th, 2024.
• Create a draft capital and administrative budget for the first year of Trust operations.

In late summer 2022, a Trust Steering Committee was formed including representatives from member cities, Los Angeles County, developers, and financing entities. The Trust SteeringCommittee met on three occasions and accomplished a variety of detailed analysis including, areview of other housing trusts best practices, examined potential funding sources for capital and administrative funding, discussed potential housing programs/projects, identify the keycomponents to the Trust Strategic Plan, and helped draft the Joint Powers Agreement.

The Steering Committee unanimously recommended the formation of an affordable housing trustfor the Gateway Cities sub-region. In addition, presentations were made to the GCCOG Committee on Homelessness, Gateway Cities City Managers and Planning DirectorsCommittee. All groups expressed unanimous support for the formation of a Trust.

As outlined in the JPA, the Trust does not build, own, or manage housing projects. Trust cannot require that housing projects be located in specific cities, require member cities to take an allocation of supportive housing units, or require that cities provide a local funding match. The Trust Board of Directors determines whether a funding application meets the Notice of Funding Availability criteria. Each local jurisdiction maintains land use control and processes the entitlement consistent with its zoning and municipal code requirements.The JPA contains a provision that requires members to contribute towards administrative expenses of Trust. Member cities are not required to contribute funding until July 1, 2024. Prior to this period the Gateway Cities Council of Governments has secured administrative formationfunding for the Trust. The annual membership fees are based upon city population:
• Up to 30000 = $7,500
• 30,001 to 60,000 = $15,000
• 60,001 to 100,000 = $32,500
• Greater than 100,000 = $47,500
This amount will increase annually in an amount equal to the U.S. Bureau of Labor Statisticsconsumer price index for Los Angeles-Long Beach-Anaheim area for the 12-month period preceding the year the fees are assessed.

The City would maintain the right to withdraw from the JPA subject to an approved resolution and by providing a six-month notice.

The Trust will be a public government entity established by joint powers authority and in accordance with the Joint Exercise of Powers Act, as codified in California Government Codesection 6500 et seq. The Trust will be organized to receive public and private capital and administrative funds to address local housing needs. The Trust will have an ongoing administrative revenue source from city membership fees as specified in the Trust Joint Powers Agreement (JPA) (see Attachment 2) to be signed by each city that is a member of the Trust.

The Trust is governed by a nine-member Board of Directors (Board). Pursuant to the JPA By Laws, the Board is comprised of seven elected officials whose governing body is a member of Trust and appointed by the Gateway Cities Council of Governments Board. A Trust member city will be represented on the Board by each population category specified in the Trust Membership fee calculation. Two additional Board members are experts in homelessness or housing policy and approved by the Gateway Cities Council of Governments City Managers Committee. A list of current Trust Board Members will be provided.

The Trust will help cities in the Trust subregion address their Regional Housing Needs Assessment (RHNA) which is mandated by State Housing Law as part of the periodic process of updating local housing elements of the General Plan for each city. RHNA quantifies the need for housing within each jurisdiction during specified planning periods.

In the past eight-year planning period, from 2013 through 2021, the GCCOG subregion received tax credit funding for 58 projects totaling nearly 6,000 housing units.

A 2022 survey of GCCOG cities revealed that there are 38 affordable housing projects currently in the pipeline that have not yet started construction. Most of these projects need critical gap subsidy funding to start construction. These 38 pipeline projects would benefit from additional funding provided by the Trust which could accelerate and facilitate the creation of an additional 4,000 affordable housing units in the COG subregion.

GOAL ALIGNMENT: Affordable housing.

FINANCIAL IMPACTS: No financial impact is expected until July 1, 2024. Future financial impact, beginning July 1, 2024, is estimated at $7,500.00 annually.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City of Avalon will not become a member of the Trust and will not have access to other potential financing sources for housing projects.

FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:

1. Resolution

2. Trust Joint Powers Agreement3. Trust Joint Powers Authority By-Laws RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OFAVALON, CALIFORNIA, APPROVING, AUTHORIZINGAND DIRECTING CITY EXECUTION OF THE JOINT

EXERCISE OF POWERS AGREEMENT RELATING TO

MEMBERSHIP IN THE GATEWAY CITIES AFFORDABLE

HOUSING TRUST
WHEREAS, The Gateway Cities Affordable Housing Trust (GCAHT) will be formed upon the approval of at least three qualified members as a joint powers authority between cities throughout the Gateway Cities subregion; and
WHEREAS, GCAHT was created for the purpose of funding housing specifically assisting persons and families of extremely low, very low, low and moderate incomewithin the County of Los Angeles; and WHEREAS, the City of Avalon has determined through its 6th Cycle Housing Element Update that there is great need for more affordable housing in the City; and WHEREAS, the City of Avalon has determined that there are limited financial resources for affordable housing development and that additional local financing increases the competitiveness of individual projects for the State and Federal resources; and
WHEREAS, the City of Avalon has determined that it is in the public interest and for the public benefit that the City become a member of the GCAHT in order to furtherfacilitate the development of affordable housing in the City and throughout the region, including the financing of projects therefore by the GCAHT; and WHEREAS, the City of Avalon will be joining other cities that are members of the GCAHT in efforts to increase State and Federal resources for affordable housing directed to GCAFT; and
WHEREAS, the Agreement has been filed with the City, and the members of the City Council of the City, with the assistance of its staff! have reviewed said document;and WHEREAS, the GCAHT is authorized to issue grants and loans to developers for the purpose, among others, of financing or refinancing the construction, acquisition and rehabilitation of affordable housing; and
WHEREAS, the City anticipates that there will be affordable housing projects in need of financing located in the City of Avalon; and
NOW, THEREFORE, the City Council of the City of Avalon DOES HEREBY RESOLVE as follows:

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The City Council hereby authorizes the City’s membership in the Gateway Cities Affordable Housing Trust (GCAHT).

SECTION 3. The City Council has reviewed and approves the Joint Exercise of Powers Agreement substantially in the form attached (Exhibit 1).

SECTION 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire, construct or operate any Projector any refinancing of any Project; (ii) approve any application or request for or take anyother action in connection with any planning approval, permit or other action necessary for the acquisition, improvement, rehabilitation or operation of any Project; (Hi) require any contribution or advance any funds whatsoever to the GCAHT other than membership fees for administrative costs; or (iv) except as provided in this Resolution, take any further action with respect to the GCAHT or its membership therein.

SECTION 5. The City Manager, the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute the Joint Exercise of Powers Agreement and to perform such other acts and deeds, as may be necessary or convenient to affect the purposes of this Resolution and the transactions hereinauthorized.

SECTION 6. The City Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the GCAHT:

Gateway Cities Affordable Housing Trust
Attn: Melani Smith
16401 Paramount Blvd
Paramount, CA 90723
SECTION 7. This resolution shall take effect immediately upon its passage.

APPROVED AND ADOPTED by the City Council of the City of Avalon at a regular meeting held on the 7th day of March 2023.

Ann H. Marshall, Mayor
ATTEST:

Gabriefle Morones, Deputy City Clerk/Senior Administrative Assistant

JOINT EXERCISE OF POWERS AGREEMENT
THIS JOINT EXERCISE OF POWERS AGREEMENT (this “Agreement”) is made this 7th day of March, 2023 (the “Effective Date”), by and between the following public entities (each a “Party” and, collectively, the “Parties”):
and

RECITALS
A. The Parties have a strong interest in promoting the health, safety, and welfare of the residents within their geographic boundaries.

B. Each Party has the individual power to implement affordable housing projects and programs generated within its jurisdictional boundaries, as well as, to create and issuedevelopment agreements for such activities.

C. The Parties find it in their mutual interest to address affordable housing issues on a regional level.

D. An adequate supply of housing throughout the Gateway Cities subregion will provide social and economic benefits to residents and taxpayers of the Parties.

E. The Parties desire to act in the public interest to lessen the burden of government by reducing the need for each Party to act individually, and to provide charitable support for affordable housing in the Gateway Cities subregion of Los Angeles County (the “County”).

F. California Government Code section 6500 et seq. (“Joint Exercise of Powers Act” or “Act”) permits two or more public agencies to create joint powers authorities for the purposes cited herein and permits the agencies to exercise jointly any power that thepublic agencies could exercise separately, and further grants certain additional powersto such joint powers authorities.

G. Local land-use decisions remain solely with each Party. Nothing in this Agreement deprives any Party of its sovereign powers with respect to land-use or transfers such powers to the joint powers authority.NOW, THEREFORE, in consideration of the mutual promises set forth below, the Parties agree as follows:

Section 1. Creation and Purpose.
(a) Creation of GCAHT. Pursuant to the Joint Exercise of Powers Act, there is hereby created a public entity to be known as the “Gateway Cities Affordable Housing Trust” (“GCAHT”). GCAHT shall be a public entity separate and apart from the Parties and shall administer this Agreement.
1 I P g e
(b) Purpose. This Agreement is made pursuant to the Joint Exercise of Powers Act for the purpose of creating the GCAHT as a public entity separate from the Parties to: (i) exercise common powers with respect to receiving public and private financing and funds; and (ii) fund the planning and construction of housing of all types and tenures for persons and families of extremely low-, very low-, low- and moderate-income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to,permanent supportive housing. The purpose of this Agreement shall be accomplished, and common powers exercised in the manner set forth in this Agreement. Nothingcontained in this Agreement shall preclude the Parties form establishing, maintaining, or providing social programs or services to its residents as each deems proper and necessary.

Section 2. Term and Termination
(a) Term. This Agreement shall become effective, and GCAHT shall come into existence, on the Effective Date, and this Agreement shall thereafter continue in full force and effect until terminated pursuant to subdivision (b) of this section. (b) Termination. This Agreement may be terminated by agreement of the Parties. Upon termination of this Agreement, GCAHT shall be dissolved and, after payment of or provision for payment of all liabilities, the assets of GCAHT shall be distributed to theParties in proportion to the contribution of each Party to GCAHT and the amounts paid by each Party in connection with GCAHT’s activities.

Section 3. Powers and Duties of GCAHT.
(a) General Powers. GCAHT shall have all the powers common to the Parties to this Agreement necessary or convenient, specified, or implied, to accomplish the purpose of this Agreement as set forth in Section 1, subject to the restrictions set forth in Section 3,subdivision (c) below. Said powers shall be exercised in the manner provided in the Joint Exercise of Powers Act and, except as expressly set forth herein, subject only to such restrictions upon the manner of exercising such powers as are imposed upon the Parties in the exercise of similar powers.
(La) Specific Powers. Without limiting the generality of the powers conferred in subdivision (a) of this Section 3, GCAHT is hereby authorized, in its own name, to do all of the acts necessary or convenient to the accomplishment of the purposes of this Agreement and the full exercise of the powers conferred in subdivision (a) of this Section 3, including but not limited to the following:

1. to make and enter into contracts;

2. to contract for staff assistance;3. to sue and be sued in its own name; 21 Page

4. to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States of America, the State of California, Los Angeles County, Party to this Agreement, or any other agency providing funding related to the purposes of this Agreement;

5. to invest any money in the treasury pursuant to Section 6505.5 of the Joint Exercise of Powers Act that is not required for the immediate necessities of GCAHT, asGCAHT determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code;

6. to apply for letters of credit or other forms of financial guarantees in order to enter into agreements in connection therewith;

7. to carry out all the provisions of this Agreement;

8. to purchase obligations of any Party;

9. to engage the services of private consultants to render professional and technical assistance and advice in carrying out the purposes of this Agreement;

10. to employ and compensate legal counsel determined appropriate by GCAHT in accomplishment of the purposes of this Agreement;

11. to contract for engineering, construction, architectural, accounting, environmental, land use, or other services determined necessary or convenient by GCAHT in connection with the accomplishment of the purposes of this Agreement;

12. for the purposes of enforcing affordable housing covenants or holding security interests for loans, to take title to, and transfer, sell by installment sale or otherwise, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which GCAHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement;

13. for the purposes of renting space for GCAHT to operate, to lease to, and to lease from, a Party or any other person or entity, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real orpersonal property which GCAHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement;

14. to solicit charitable contributions from private sources;15. to propose amendments to this Agreement; and

16. to exercise any and all other powers as may be provided for GCAHT in the Joint Exercise of Powers Act or any other applicable law.
(c) Limitation on Powers. This Agreement does not authorize GCAHT do any of the following:
3Page

1. Regulate land use in cities or in the unincorporated area of the County;

2. Serve as an owner or operator of housing units;3. Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation or tax assessment, as a condition of approval of adevelopment project;

4. Require or incentivize inclusionary zoning requirements;

5. Require the Parties to dedicate or assign funding for any GCAI-IT obligations or programs;

6. Approve a housing project or program that is not supported by the governing body of the jurisdiction (a city or the county) in which the proposed project is sited; or

7. Require the Parties to accept or provide any member of housing units as a prerequisite to joining or remaining a member of GCAI-IT.

Section 4. MembersThe members of GCAHT shall be the Parties who have not withdrawn from GCAHT, and suchother Parties as may join GCAHT after execution of this Agreement. New members may join onthe terms and conditions set forth in Section 10 hereof. Only cities within the County of LosAngeles and within the Gateway Cities subregion may be a party to this Agreement and a member of GCAHT.

Section 5. Board of Directors
(a) Selection of Directors. GCAHT shall be governed by a Board of Directors consisting of nine Directors selected as follows:

1. Seven Directors who are members of the Gateway Cities Council of Governments (GCCOG) Governing Board (“GCCOG Board”), or any elected official serving within the GCCOG jurisdiction that is also a Party and appointed by the GCCOG Board.

2. Two Directors that are experts in homelessness or housing policy appointed by the Gateway Cities Council of Governments City Managers Committee.

3. Alternates for each Director position may be established by the appointing entity. (b) Board Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of GCAHT shall be vested in and exercised by, and its propertyand its affairs administered by, the Board of Directors. (c) Advisory Board. The Board of Directors may appoint advisory boards that may include such persons as designated by the Board of Directors. The Board of Directors shall adopt bylaws that govern the appointment of advisory boards should it determine in itsdiscretion to appoint such advisory boards. 41 Page
(d) Compensation. Members of the Board shall serve without compensation but shall be entitled to reimbursement for any expenses actually incurred in connection with servingas Director; provided such expenses have been previously approved by the Board ofDirectors and incurred in accordance with any GCAHT policies or procedures governing the same.
(e) Term. Members of the Board shall serve for a two-year term. There are no term limits.

The initial Board will serve a term staggered between one-year and two-year terms.Three of the seven Directors who are members of the GCCOG Board or are appointed bythe GCCOG Board in accordance with Section 5(a) shall have an initial term of one year.

One of the two Directors that are experts in homelessness or housing policy shall havean initial term of one year. The initial one-year terms will be determined through thedrawing of lots. (f) Meetings of the Board of Directors.

1. Call, Notice and Conduct of Meetings. All meetings of the Board of Directors, including without limitation, regular, adjourned regular, special meetings and adjourned special meetings, shall be called, noticed, held and conducted inaccordance with the provisions of the Ralph M. Brown Act, Government Code sections 54950 etseq.

2. Regular Meetings. Regular meetings of the Board of Directors shall be held at such dates and times as the Board may fix by resolution from time to time. If any day so fixed for a regular meeting shall fall upon a legal holiday, then such regular meeting shall be held on the next succeeding business day at the same hour. No notice ofany regular meeting of the Board of Directors need be given to the individual Directors.

3. Special Meetings. Special meetings of the Board of Directors shall be held whenever called by the Chairperson of the Board or by a majority of the Directors. Notices ofall special meetings shall be provided to all Parties.

4. Quorum. A majority of the seated members of the Board of Directors shall constitute a quorum at any meeting of the Board except that less than a quorummay adjourn a meeting to another time and place. Every act or decision done ormade by a majority of the Directors present at any meeting at which a quorum ispresent shall be the act of the Board of Directors.

5. Minutes. The Board of Directors shall keep minutes of all regular, adjourned regular, and special meetings, and shall, as soon as possible after each meeting, cause a copyof the minutes to be forwarded to each Director and to the Parties.

6. Officers. The Board of Directors shall elect a chairperson and a vice chairperson from among its Directors at the first meeting held in each fiscal year. In the eventthat the chairperson or vice chairperson so elected ceases to be a Director, the 5Page
resulting vacancy shall be filled at the next regular meeting of the Board of Directors held after such vacancy occurs or at a special meeting called for that purpose. In the absence or inability of the chairperson to act, the vice chairperson shall act aschairperson. The chairperson, or the chairperson’s absence, the vice chairperson,shall preside at and conduct all Board of Director’s meetings.

7. Rules and Regulations. The Board of Directors may adopt, from time to time, by resolution, such rules, regulations, and bylaws for the conduct of its meetings andaffairs as the Board determines is necessary or convenient.

Section 6. Additional Officers and Employees
(a) Officers and Contract Staff

1. GCAHT may contract with a Party or the GCCOG, for officers and staff pursuant to Section 6(d), or retain independent contractors, agents, or volunteers as the Boardof Directors may deem necessary to carry out any of GCAHT’s powers, upon such terms and conditions as the Board may require, including the retaining of professional and technical assistance, provided that adequate funds are available in GCAHT’s budget and are appropriated by GCAHT therefor.

2. None of the officers, agents, or staff, if any, directly contracted by GCAI-IT shall be deemed, by reason of their roles or duties or contracted status, to be employed by the Parties.
(b) Treasurer and Auditor/Controller. Pursuant to Government Code Sections 6505.5 and 6505.8, the Board of Directors shall appoint an officer or employee of GCAHT, or an officeror employee of a public agency that is a Party, or a certified public accountant to hold theoffices of treasurer and auditor for GCAHT. Such person or persons shall possess the powers of and shall perform the treasurer and auditor functions for GCAHT required by Sections 6505, 6505.5 and 6505.6 of the Government Code, including any subsequent amendments thereto. Pursuant to Government Code Section 6505.1, the auditor and treasurer shall have charge of certain property of GCAI-IT. The treasurer and auditor shall assure that there shall be strict accountability of all funds and reporting all receipts anddisbursements of GCAI-IT. The treasurer and auditor of GCAHT shall be required to file and official bond with the Board of Directors in an amount, which shall be established by the Board. Should the existing bond or bonds or any such officer be extended to cover the obligations provided herein, said bond shall be the official bond required herein. The premiums on any such bonds attributable to the coverage required herein shall be anappropriate expense of GCAHT. (c) Attorney. The Board of Directors shall have the power to appoint one or more legal advisors to GCAHT who shall perform such duties as may be prescribed by the Board. 61 Page
(d) Administrative Services and Reimbursement of Costs.

1. The Board of Directors may contract with a Party to provide necessary administrative services to GCAHT, including the services described in Section 6(a), (b) and (c). Theamount charged by the Party to provide such services to GCAHT shall be fixed by agreement between the Board of Directors and the governing board of the Partyproviding such services. In the absence of an agreement on costs, the Party providing services to GCAHT under this Section 6 may charge GCAI-IT the amounts necessary to recover the direct and indirect costs of such services.

2. If GCAHT contracts with a Party to provide GCAHT with administrative services through persons who are employees and officers of the Party, then any retirement liabilities associated with that Party’s employees and officers shall not constitute a liability ofGCAHT or any other Party. This Section 6(d)(2) shall not preclude a Party providing administrative services to GCAHT pursuant to a contract with GCAHT from accounting for such salary and benefit costs when negotiating the rates that the Party will charge GCAHT for providing such services.

Section 7. Financial Provisions
(a) Fiscal Year. The Fiscal Year of GCAI-IT shall, unless and until changed by the Board of Directors, commence on the Pt day of July of each year and shall end on the 30th day of June of the next succeeding year except that the initial Fiscal Year of GCAHT shall commence on the Effective Date and end on the immediately following 30tb day of June. (b) Budget.

1. General Budget. Within one hundred and twenty days (120) after the first meeting of the Board of Directors, a general budget for the first fiscal year shall be adopted by thevote of a majority of all the Directors. The budget shall distinguish between administrative costs (i.e.) the cost of operating GCAHT) and Program costs (i.e., the financing of the programs funded or sponsored by GCAHT). Thereafter, at or prior to the last meeting of the Board of Directors for each fiscal year, a general budget shall be adopted for the ensuing fiscal year or years by a vote of at least a majority of all Directors of the Board.

2. Expenditures for the Approved Budget. The payment of all GCAHT obligations is limited to the amount of appropriations allowed in GCAHT’s approved budget, except as it may be revised with the approval of a majority of all of the Directors of the Board ofDirectors. (c) Contributions by the Parties.

1. Administrative Cost Contributions. The GCCOG shall be responsible for GCAHT’s administrative costs until June 30, 2024. After this initial period, and in consideration of the mutual promises contained herein, the Parties agree that they shall make annual 71P age
contributions (each a “Fee” and collectively the “Fees”) towards the budgeted administrative costs of GCAHT in accordance with a cost allocation formula as outlined below:

POPULATION ANNUAL ADMINISTRATIVE FEE
Up to 30,000 $7,500
30,001— 60,000 $15,000
60,001 — 100,000 $32,500
>100,000 $47,500
The Fees shall be assessed annually. After the first fiscal year, the Fees shall increase annually in an amount equal to the U.S. Bureau of Labor Statistics consumer price index for all urban consumers in the Los Angeles-Long Beach-Anaheim area for the 12-month period preceding the year the Fees are assessed. Payment of the Fees shall be due within 30 days of receipt of an invoice from the GCAHT. The invoice shall indicate how the Fees were calculated. A Party’s contribution to GCAHT’s administrative costs shall be in the form of money, unless the Board of Directors approves another form of contribution such as services, personal property or use of real or personal property, orother in-kind contributions. The acceptance and valuation of any such non-monetarycontributions may be used to offset in whole or part a Party’s contribution asdetermined in the sole and absolute discretion of the Board of Directors.

Notwithstanding the above, after the first fiscal year the Board of Directors may establish Fees in an amount the Board of Directors deems financially prudent; providedit shall roughly be proportional as to each Party in the amounts reflected in the tableabove.

2. Program Cost Contribution. The particular programs and program budget, funded, sponsored or operated by GCAI-IT, as well as the level of, and mechanisms for, the involvement of GCAI-IT and each Party, in such programs and program budget, shall be determined and approved by the Board of Directors.
(d) Accounts and Reports.

1. Books and Records. There shall be strict accountability of all GCAHT funds and accounts and report of all GCAHT receipts and disbursements. Without limiting the generality of the foregoing, GCAI—IT shall establish and maintain such funds and accounts as may be required by good accounting practice. The books and records of GCAHT shall be open toinspection at all reasonable times by each Party and its duly authorized representatives.

2. Annual Audit. The person appointed by the Board of Directors to perform the auditor function for GCAHT shall cause an annual independent audit of the accounts and 81 Page
records of GCAHT and records to be made by a certified public accountant or firm of certified public accountants in accordance with Government Code section 6505. Suchaudits shall be delivered to each Party and shall be made available to the public.

3. Annual Financial Report. Pursuant to section 6539.5 of the Government Code, GCAHT shall publish an Annual Financial Report that shall describe the funds received by GCAHTand the use of such funds by GCAHT. The Annual Financial Report shall describe how the funds received by GCAHT have furthered the purposed of GCAHT. (e) Funds. Subject to the applicable provisions of any instrument or agreement which GCAHT may enter into, which may provide for a trustee or other fiscal agent to receive, have custody of and disburse GCAHT funds, the person appointed by the Board of Directors to perform the treasurer function for GCAHT shall receive, have the custody of and disburse GCAHT funds as nearly as possible in accordance with generally accepted accounting principles, shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement.

Section 8. Amendments and Additional Parties.
(a) This Agreement may not be amended or modified except by a vote of two-thirds of alt the Parties through formal action approving such an amendment by the Parties’ respective governing bodies.
(b) No addition to, or alteration of, the terms of this Agreement, whether by written or oral understanding of the parties, their officers, employees or agents, shall be valid or effectiveunless made in the form of a written amendment which is formally adopted and executedby the Parties in the same manner as this Agreement.

Section 9. Non-Liability for Obligations of GCAHT.
(a) The debts, liabilities, and obligations of GCAHT shall not be the debts, liabilities and obligations of any of the Parties or personal debts, liabilities and obligations or the Directors, officers or employees of GCAHT; provided that a Party may, by an agreement separate from this Agreement, contract for, or assume responsibility for, specific debts, liabilities, or obligations of GCA[-IT.

1. Indemnification. The GCAHT shall defend, indemnify and hold harmless each Party, its officers, agents, employees, representatives and volunteers (the “Indemnitees”) fromand against any loss, injury, claim, lawsuit, liability, expense, or damages of any kind or nature (collectively, “Claims”) brought by a third party which arises out of or in connection with GCAHT’s administration of this Agreement, including such third partyclaims arising out of or in connection with any Indemnitees acting within theirauthorized capacity as an officer, agent, employee, representative or volunteer ofGCAHT. The GCAHT’s duty to defend and indemnify under this Section shall not extend to Claims otherwise arising out of the Indemnitees’ own active negligence, omissions orwillful misconduct, whether in whole or part. The GCAHT shall finance its obligation 91 Page
pursuant to this Subsection by establishing a liability reserve fund, and/or by purchasing commercial insurance, and/or by joining a joint powers insurance authority (JPIA) asdetermined by the Board. In the event the GCAHT’s financial obligations to indemnify,defend and hold harmless, pursuant to this Subsection, exceed the liability reserve fundand/or the proceeds from any applicable insurance and/or JPIA coverage maintained by the GCAHT (hereinafter “Unfunded Liability”), a Party or Parties may meet and conferwith GCAHT in good faith to negotiate alternative means or mechanisms by whichGCAHT may fund such Unfunded Liability; however, in no event shall the event of an Unfunded Liability relieve, limit or waive GCAHT’s obligations of indemnity or defense to each Party as first set forth above in this Section. Nothing herein shall obligate any Party to indemnify or hold harmless GCAHT for any Unfunded Liability.

2. Assignment. Each Party shall assign to the GCAHT its rights, title, and interest to recover damages from any third party for Claims arising out of this Agreement, to the extent that the GCAHT has met its obligations to defend and indemnify such Party pursuant tothis Section.

3. Survival. GCAHT’s duty to defend, indemnify and hold harmless shall survive and continue in full force and effect after withdrawal of any Party from this Agreement, including as to the withdrawing Party, or termination of this Agreement for any reason with respect to any Claims that occurred before the date of such withdrawal or termination.

Section 10. Admission and Withdrawal of Parties.
(a) Admission of New Parties. It is recognized that additional Parties other than the original Parties, may wish to join GCAI-1T. Any city within the Gateway Cities subregion may become a Party to GCAHT upon such terms and conditions as established by the Board of Directors.

As a condition precedent to becoming a Party more than six months after the Effective Date, an eligible entity may thereafter become a Party to this Agreement; provided that (1) this Agreement is adopted by its governing body and (2) the eligible entity pays a late joining fee. The late joining fee shall be calculated by totaling the annual fee the eligible entity would have paid under this Agreement had it been a Party in all years prior and up until the Effective Date. Notwithstanding the foregoing, an eligible entity’s late joining fee shall not exceed two times the amount of the applicable annual administrative fee existingat the time it becomes a Party. Payment shall be due within 30 days of receipt of an invoice from GCAI-IT.
(b) Withdrawal from GCAHT. Parties may withdraw from GCAHT at any time upon their governing board’s adoption of a resolution that so states the Party’s intent to withdrawfrom GCAHT. The withdrawal of any Party, either voluntarily or involuntarily, unless otherwise provided by the Board of Directors, shall be conditioned as follows:
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1. In the case of a voluntary withdrawal, written notice shall be given to GCAHT six months prior to the effective date of withdrawal; and

2. Unless otherwise provided by a unanimous vote of the Board of Directors, withdrawal shall result in the forfeiture of that Party’s rights and claims relating to distribution of property and funds upon termination of GCAHT as set forth in Section 2 above.

Withdrawn members shall not be entitled to any reimbursement of Fees.

Section 11. Notices.
(a) Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to thepersons and entities listed herein at the following addresses, or to such other address as may be designated to GCAHT on the Parties signature page for formal notice:

Section 12. Miscellaneous.
(a) Section Headings. The section headings herein are for convenience only and are not to be construed as modifying or governing or in any manner affecting the scope, meaning or intent of the provisions or language of this Agreement. (b) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all together shall constitute but one andthe same Agreement. (c) Laws Governing. This Agreement is made in the State of California under the Constitution and laws of such State and shall be construed and enforced in accordance with the laws of California.
(d) Severability. Should any part, term, portion or provision of this Agreement, or the application thereof to any person or circumstance, be held to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual it shall be deemed severable, and the reminder of this Agreement or theapplication thereof to other persons or circumstances shall continue to constitute the Agreement the Parties intended to enter into in the first instance. (e) Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Parties. No Party may assign any right or obligationhereunder without the written consent of a majority of the other Parties.

IN WITNESS THEREOF, the Parties hereto have caused this Agreement to be executed and attested by their duly authorized officers as follows:
il Page
City of Avalon
BY: David M. Maistros, City Manager
Dated:

AHEST:Gabrielle Morones, Deputy City Clerk DateNOTICE TO CITY TO BE GIVEN TO:David M. Maistros, City Manager City of Ava Ion
410 Avalon Canyon Road
P0 Box 707
Ava Ion, CA 90704
310.510.0220
APPROVED AS TO FORM:

By:

Scott H. Campbell, City Attorney Date
12 I P a g e
Gateway Cities
Affordable Housing Trust
Bylaws
Approved by the
Gateway Cities Affordable Housing Trust Board of Directors On 2023
Table of Contents
Part I — introduction to the Gateway Cities Affordable Housing Trust 1 Establishment 1
GCAHT Guiding Vision and Mission 1
GCAHT Guiding Principles 1
Part 2— Bylaws of the Gateway Cities Affordable Housing Trust 2 ARTICLE I -Name 2
ARTICLE 11 — Board of Directors 2
Section A: GCAHT Board of Directors 2Section B: Selection of Advisory Board Members Section C: Terms and Vacancies 3
ARTICLE Ill — Duties of Officers and Board Members 3
Section A: Duties of the Board of Director Members 3Section B: Formation of Subcommittees 4 ARTICLE IV -Meetings 4
Section A: Regular Meetings 4Section B: Special Meetings 4 Section C: Voting on Project Funding 4Section D: Voting on Amending GCAHT’s Bylaws, Principles, or Procedures 4 Section E: Minutes 4Section F: Meeting Procedure 4Section 6: Location of Meetings ARTICLE V -CCAHT Board Code of Conduct 5
Section A: Compliance with Policies SSection B: Conflicts of Interest 5Section C: Confidentiality 5 Section D: Gifts or Honoraria 6Section E: Harassment 6
Section F: Laws and Regulations 6
Part I — Introduction to the Gateway Cities Affordable Housing Trust
E sta hi is h men
On January 4, 2023, the Gateway Cities Council of Governments approved the formation of theGateway Cities Affordable housing Trust (“GCAHT’ or “Trust’). The Trust is a joint powersagency. which may do any of the following: (I) fund the planning and construction of affordablehousing of all types and tenures for persons and families of extremely low-, very low-, low-, andmoderate-income as defined in Section 50093 of the Health and Safety Code: (2) receive publicand private financing and funds: and (3) authorize and issue bonds, certificates of participation. or aily other debt instrument repayable from funds and financing received and pledged by the Trust. 11w Trust may consist of any of the cities within the Gateway Cities Council of Governments. which is a joint powers agency representing a subregion of Los Angeles County.

The GCA[-1’[’ was established on
by the execution of the Joint Exercise ol’
Powers Agreement (the “Agreement”) by and between thc Cities of (collectively, the “Cities”). These Bylaws were
adopted by (ICAHJ’s Board of Directors and provide for the organization and administration ofGCj-\HT. These Bylaws supplement the Agreement.

C;CAIIT Guiding Vjsjon and Mission
A Steering Committee consisting of staff from various cities within the boundaries of the Trustalong with individuals representing Los Angeles County. affordable financing, and affordablcdevelopers met on three separate occasions to discuss and recommend various governance.policy, and a guiding vision and mission as follows:

The vision ofthe Gateway Cities Affordable Housing Trust is to securefundingfor the region that will increase (lie production of affordable housing and provide safe and quality homesforlower— and moderate—income individuals andfamilies.

The mission ofthe Gateway Cities Affordable Housing Trust is to finance the development of affordable housing in (lie region and thereby increase (lie supply of housing to lower— and moderate—income individuals andfamilies.

UCAIIT (;uiding Principles
The guiding principles of the GCAHT:

I. Implement the findings and declarations of the Agreement.

2. Provide funding based on principles of fiscal responsibility and demonstrated value to the taxpayer and funder.
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3. Retain local control and the ability for local governments to use GCAH’l’ funding for housing solutions when needed, or to participate within the region as a whole.

4. Demonstrate accountability and transparency for parties to the Agreement and the public.

5. Promote public-private partnerships, nonprofit collaborations, and community building to maximize sources of public and private funds. when available, and to efficientlyaccelerate housing for moderate-. low-, very low- and extremely low-income individualsand families.

6. Provide opportunities to strengthen local partnerships and increase capacity of local cities and agencies engaged in fulfilling housing goals.

7. Commit to innovation and best practices in financing. production, and service delivery in supportive housingS

8. Serve the region’s needs geographically by (1) extremely low-, very low-, low-, and moderate-income, and supportive housing types and (2) population.

9. Foster collaborative planning to allow for project prioritization and establish a pipeline of projects.

10. Provide access to funding to ensure that the Gateway Cities subregion receives the maximum benefit for the resources provided.

11. Incorporate County’s Coordinated Entry System in conjunction with the cities’ locally driven protocols to ensure that the developed housing resources has appropriatelytargeted and prioritized eligible homeless populations for each project.

Part 2 — Bylaws of the Gateway Cities Affor(IabIe Housing Trust ARTICLE I -Name
The name of this emit shall he the “Gateway Cities Affordable Housing Trust” or “GCAI-l’F” inthese Bylaws.

ARTICLE II — Board of Directors
Section A: CCAHT Board of Directors
I. All members of the Board of Directors must be from a city that is a party to the Agreement and shall be appointed as set forth in the Agreement.
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2. Each of the nine (9) voting members of the Board of Directors ofGCAI-IT shall be entitled to one (1) vote on the Board.

Section B: Selection of Advisory Board N embers
An Advisory Board may be appointed by the Trust Board consisting of various government stall.persons with housing development, housing services, finance, and development expertise.

All Advisory Board members are entitled to attend all GCAHT regular and special meetings andto fully participate in such meetings hut shah not constitute voting memhcrs of the Board.Advisory Board members need not he elected officials.Section C: ‘lernis and Vacancies

1. Board of Directors: As set forth in the Agreement. terms of office for members of the Board of Directors shall generally be for two (2) years. subject to initial one (1) year terms forcertain members as. set forth in the Agreement. A Board of Director’s seat shall be deemedvacant if he or she leaves elected office. or if his or her appointing body removes him or her.

Upon a vacancy, the appointing body shall he notified and shall attempt to fill the vacancy within sixty (60) days of the vacancy occurring.

2. Advisory Board: Terms of office for members of the Advisory Board shall he for two (2) years. An AdvisorN Board member’s seat shall automatically be deemed vacant if thai member fails to attend three consecutive regular or special meetings. Upon a vacancy, theTrust Board shall be notified and shall attempt to fill the vacancy within sixty (60) days ofthe vacancy occurring.

ARTICLE Ill — Duties of Officers and Board Members
Section A: Duties of the Board of Director Members:

I. Meet when called by the Chair to plan and coordinate the business and proposed activities of GCAHT:

2. Review and consider applications for project funding;3. Review and consider (ICAI-IT’s financial information, including the Annual Financial Report. any related independent audit, and the GCAHT’s annual budget: and

4. Serve on subcommittees or task forces when appropriate. 31 Page
Section B: Formation of Subcommittees
The Board may create subcommittees or task forces to accomplish thc goals and purposes ofGCAHT.

ARTICLE IV— Meetings
Section A: Regular MeetingsRegular meetings of GCAF iT’s Board shall be held once every two (2) months, unless otherwise called by the Chair. Meeting notice. agenda. and public comment procedures shall comply withthe provisions of the Ralph M Brown Act. The Clerk of the Board shall prepare meeting agendas and handle noticing requirements.

Section B: Special Nice1ins
Special meetings of GCAHT may be held at any time upon call of the Chair, provided that the special meetings noticing. and agenda complies with the Ralph M. Brown Act.Section C: Voting on Project Funding As set forth in the Agreement. cvcrx act or decision done or made by a majority of the Directors present at any meeting at which a quorum is present shall be the act of the Board of Directors.

However, the Board should strive to attain a unanimous decision on all projects which receivefunding from GCAI-iT.

Section D: Voting on Amending CCAHT’s Bylaws, Principles, or Procedures

1. Amendments to 1iCAllTs Bylaws. Principles or Procedures shall he considered at a regular meeting and shall comply with the Ralph M. Brown Act.

2. An amendment to these Bylaws must be approved by a majority vote of the Board of Di rectors.

Section F: Minutes
The Clerk of the Board shall take minutes for (JCAIIT. A previous meeting’s minutes shall beconsidered and approved at a subsequent meeting by a majority vote of the Board of Directors.

Section F: Meeting Procedure
The conduct of meetings shall be guided by Roberts Rules of Order (most recent publishededition) where the question at issue is not determined by these Bylaws. 41 Page
Section 6: Location of Meetings
The Board must meet in publicly accessible places typical for hosting public meetings, such asCouncil Chambers or city community rooms.

ARTICLE V—CCAHT Hoard Code of Conduct
This GCAHT Board Code of Conduct represents GCAHT’s commitment to high standards ofethics, public service, collegiality, and transparency. The following standards should be regarded as minimum expectations for conduct. GCAHT Board Members will act in accordancewith and maintain the highest standards of professional integrity. impartiality, diligence.creativity, and productivity. GCAHT will act in accordance with applicable federal, state, and local laws and regulations.Section A: Compliance with PoliciesMembers of the Board of Directors and Advisory Board will conduct the 0CM-IT business in accordance with the Agreement. these Bylaws, and all adopted policies. including conflict of interest policies.

Section 8: Conflicts of Interest

1. The Board of Directors may not have a conflict of interest as determined by the California Political Reform Act (the “Act”). inclusive of the Levine Act. California Government Codesection 81000. et. seq., and the regulations promulgated to effectuate the Act. Nor shall theBoard of Directors have a conflict of interest under California Government Code section 1090.

2. Members of the Board of Directors are required to file a Statement of Economic Interest (Form 700) in the disclosure category as designated on the GCAI-IT Conflict of InterestCode.

Section C: ConfidentialityMembers of the Board of Directors and Advisory Board must maintain the highest standards ofconfidentiality regarding information obtained directly or indirectly through their involvementwith the GCAI-IT. This includes but is not limited to information about applications for funding.GCAI-IT parties and their organizations and funded agencies. Members must also avoid inadvertent disclosure of confidential information through casual public discussion, which may he overheard or misinterpreted. Notwithstanding the foregoing. the GCAHT recognizes thatexccpting such confidential information which must be carefully preserved, the conduct of itsbusiness shall be open and transparent in accordance with the Ralph M. Brown Act and the California Public Records Act.
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Section D: Gifts or Honoraria
It is not permissible for members of the Board of Directors and Advisory Board to offer or accept gifts, gratuities, excessive favors, or personal rewards intended to influence GCAHT decisions or activities.

Section F: l-larassmcnt
Harassment. interpreted as unwelcome conduct. comment. gesture, contact, or intimidating and offensive behavior likely- to cause offense or humiliation, will not be tolerated and may iesult indisciplinary measures up to and including removal from GCAIIT Board.

Section F: Laws and Regulations
GCAHT business will be conducted in a manner that reflects the highest standards and in accordance with all applicable federal, state. and local laws and regulations. 61 Page

CITY OF AVALON CITY COUNCIL
MEETING DATE: March 7, 2023 AGENDA ITEM:

ORIGINATING DEP: City Attorney CITY MANAGER: Diii]
PREPARED BY: Scott H. Campbell, City Attorney
SUBJECT: Surplus and Excess Land Inventory Report
RECOMMENDED ACTION(S): Adopt a resolution adopting an inventory report of the City’ssurplus and excess land, pursuant to Government Code section 54230.

REPORT SUMMARY: Government Code section 54230 mandates that all California cities and counties prepare an inventory of all surplus land,” as that term is defined in the Surplus Land Act (Gov. Code, § 54220 et seq.) , and all ‘lands in excess of its foreseeable needs,” as that phrase is used in Government Code § 50569. The California Department of Housing andCommunity Development (“HCD”) provides the practical difference between these two categories of land is essentially one of timing. “Surplus land” is land that is no longer necessary for an agency’s use and has been officially declared surplus” by the local agency’s governing body. “Excess land” is land that is beyond an agency’s foreseeable needs but has not yet been declared surplus.

To be “necessary for [an] agency’s use,” land must be “used, ... planned to be used pursuantto a written plan adopted by the local agency’s governing board for, or ... disposed [ofl to support ... agency work or operations, including, but not limited to, utility sites, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes, related to greenhouse gas emissions, and buffer sites near sensitivegovernmental uses, including, but not limited to, wastewater treatment plants.” (See Gov.

Code, § 54221 subd. (c)(1).)Staff has determined that the City does not have any surplus or excess land, as noted in the Inventory Report attached as Exhibit “A” to the proposed Resolution.Staff recommends adopting the proposed Resolution adopting the Inventory Report, asrequired under Government Code section 54230.

GOAL ALIGNMENT: Compliance with state law.

FISCAL IMPACTS: None.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Failure to adopt the Inventory Report will put the city out of compliance.

FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS: Resolution of the City Council of the City of Avalon Adopting an Inventory Report of the City’s Surplus and Excess Land, Pursuant to Government Code Section 54230 RESOLUTION NO. -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVALON
ADOPTING AN INVENTORY REPORT OF THE CITY’S SURPLUS AND
EXCESS LAND, PURSUANT TO GOVERNMENT CODE SECTION 54230
WhEREAS, the City of Avalon (“City”) is a municipal corporation and is a “local agency” within the meaning of the Surplus Land Act. Government Code sections 54220 ci seq. (as amended, the “Act”): and
WHEREAS. Government Code section 54230 requires that each local agency make an inventory of all surplus and excess lands held, owned, or controlled by it or by any of its departments, agencies or authorities (the “Inventory List”). and that such Inventory List be made a matter of public record and be made available to any citizen, limited dividend corporation. housing corporation. or nonprofit corporation at no charge: and WHEREAS. “surplus land” is defined in the Act as land owned in fee simple by any local agency for which the local agency’s governing body takes formal action in aregular public meeting declaring that the land is surplus and is not necessary ftr theagency’s use”; and WHEREAS. “excess land” is defined in the Act as land that Is in excess of its foreseeable needs”: and
WHEREAS. Government Code section 54230 specifies that the following information must he provided for each property included in the Inventory List: (1) the street address or similar location information; (2) the assessor’s parcel number; (3) the existing use; (4) whether the site is surplus land or exempt surplus land; and (5) the size of the sitein acres; and WHEREAS. the Inventory List. in compliance with Government Code section 54230. is attached hereto as Exhibit A and incorporated herein by this reference.

NOW THEREFORE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AVALON AS FOLLOWS:Section 1. The City Council hereby flnds and determines that the Recitals are true and correct and are incorporated herein,
Section 2. The City Council hereby finds that the City has no surplus or excess lands as ofthe adoption date of this Resolution.Section 3. Based on the true and correct written findings in this Resolution and incorporated herein by reference, the City Council hereby adopts the Inventory List created by City staff pursuant to and in compliance with Government Code section 54230 andattached hereto as Exhibit A. 65059.00002\40991300. I I
Section 4. The City Council hereby finds that adoption of the Inventory Lisi is exempt from environmental review under the California Environmental Quality Act (“CEQA”). pursuant to CEQA Guidelines § 15378, because it has no potential for resulting in physicalchange in the environment, directly or indirectly as the Inventory List does not include any surplus or excess lands.

Section 5. If any section. subsection, paragraph. sentence. clause, or phrase of thisResolution is declared by a court of competent jurisdiction to he unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions ofthis Resolution.

Section 6. This Resolution shall take effect immediately upon its adoption by the City Council.

Section 7. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED by the City Council of the City of Avalon. California. held on the day of
2023 by the following vote:

Ayes:Noes:

Absent:

Abstain:

Ann H. Marshall. Mayor
ATTEST:

Gabrielle Morones. Deputy City Clerk
65059(J0002\40991 3OO I 2

EXHIBIT A

INVENTORY LIST
Property APN Existing Use Surplus, SizeAddress Exempt
Surplus, orExcess Land?
None
65059.00002\40991 300.1 3

CITY OF AVALON CITY COUNCIL
MEETING DATE: March 7, 2023 ADENDA ITEM:

ORIGINATING DEP: Administration CITY MANAGER: i.ttM..PREPARED BY: David Maistros, City Manager Devin Hart, Management Analyst
SUBJECT: Island Express Helicopter Services, Inc. Lease Transfer RECOMMENDED ACTION(S): Authorize the City Manager to amend and transfer the lease with Island Express Helicopter Services. Inc., for the city-owned property at 300-C Pebbly Beach Road, to Maverick Express. LLC. Authorize the City Manager use his discretionary authority to assess a Transfer Fee as established in the lease agreement.

REPORT SUMMARY: On December 22, 2022, City Staff received a request from IslandExpress Helicopters Services, Inc. to transfer the ease for the city-owned property at 300-CPebbly Beach Road to Maverick Express, LLC.

Per the current lease agreement:
- The initial term is from January 1, 2015 to December 31, 2025. - The property is comprised of 66.42 square feet of interior space. - Use of the property is limited to operations, ticketing, and information services for helicopter services.
- The business occupying the property is required to be open a minimum of 9 months a year with the Lessee determining their own hours and days of operation. - Lease fee is calculated on square footage or percentage of total sales basis — whichever is greater. o The square footage rate is subject to CPI and is currently $295.51 a month.o Percentage rate is based on 8% of all gross receipts.

The process to transfer the lease is outlined (Section 16 (e)):

Lessee may transfer this lease upon the sale or transfer of substantially all of the assets of the Lessee, provided the Lessee first obtains written consent, which shall not be unreasonably withheld and provided the Lessee pays the Lessor a lease transfer fee equal to (3%) of the sale price with a cap of $30,000 of Lessee’s business (“Transferfee’). The Transfer Fee shall not apply to a transfer of this Lease upon the transfer of acontrolling interest in the Lessee’s business to a member of the immediate family ofsuch controlling person, or to a transfer of the controlling interest to an inter vivos trustin which such controlling person is the trustee of the trust. In the event Lessee’sbusiness has multiple locations and Lessee assigns, sublets, or transfers the Lease for one location without assigning or transferring the business as a whole, the Transfer Fee shall be a flat $5,000 or a lower amount at the discretion of the City Manager.

The lessee has requested that the Transfer Fee — to be assessed at $30,000 per the terms of the lease — be adjusted due to the size and scale of the business’s operation compared to the nature of the leased property at 300-C Pebbly Beach Road. The lease allows a lower amount to be assessed at the City Manager’s discretion.

Per discussions with the lessee, the transfer of the lease will not interrupt operations of the business. The business plans to expand offerings to include more tours and will be utilizing the facility at the Cabrillo Mole significantly more.

City Staff recommend the City Council authorize the City Manager to determine an appropriate Transfer Fee and transfer the lease from Island Express Helicopter Services, Inc. to Maverick Express, LLC. The transferred lease will maintain all elements of the previous lease, including the initial lease term, set to expire on December 31, 2025, with two exceptions:
- Elimination of “Year-end Reconciliation” (Section 3(e)). - Amend “Use” (Section 4 (a)) to require the property to be open for business at least ten (10) months each year.

In the future, the City intends to remove the process outlined in Section 3(e)”Year-End Reconciliation” from all applicable City leases as well as increase the amount of time the business is required to stay open annually.FISCAL IMPACTS: Undetermined.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: None.

FOLLOW UP ACTION: Implement City Council direction.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENT:
- Current Lease Agreement for Island Express Helicopter Services, Inc. • ORIGINAL

LEASE AGREEMENT
This Lease Agreement (“Lease”), effective January 1, 2015 (Effective Date”), is entered into between the CITY OF AVALON, a municipal corporation (‘Lessor”), and Island Express Helicopter Services, Inc. (‘Lessee’), (each individually a “Party” and collectively the “Parties’)

RECITALS
A. Lessor is the owner of certain real property, including the improvements thereon, located in the City of Avalon referred to as the Cabrillo Mole, 300-C Pebbly Beach Road and more accurately described in Exhibit 1 (the ‘Property”) B. Lessee desires to lease from Lessor, and Lessor desires to lease to Lessee, a portion of the Property as described in more detail in the Lease on the terms and conditions set forth herein.

C. This Lease is based on a standard lease form that is used by the Lessor for all leases entered into by the Lessor. To the extent that Lessee believes that certain of the standard provisions of this Lease were not intended to apply to the Property because of the specific nature, intended use, or location of the Property, Lessee should notify the City of Avalon Lease Department. This Recital C in no way relieves Lessee of any of its obligations under this Lease.

LEASE
NOW THEREFORE, the Parties agree as follows:

1. Property. Lessor leases to Lessee, and Lessee leases from Lessor the Property, consisting of 6642 square feet of interior space. Lessor and Lessee agree that if Lessor makes additional space available to Lessee and Lessee accepts such space, that space shall automatically be included in the Property and the terms of this Lease shall automatically apply thereto, unless otherwise agreed by the Parties.

2. Term.
(a) Term. The term of this Lease shall be from January 1, 2015 to December 31, 2025 (‘Initial Term”). Lessor shall have the option to renew this Lease for erie five (5) year period provided Lessor gives Lessee written notice of intent to renew the Lease at least sixty (60) days prior to December 31, 2025, but no more than 180 days prior to December 31, 2025 and the Parties agree to the terms and conditions (“Renewal Term”). The Initial Term and Renewal Term are referred to collectively herein as the “Term”
(b) Termination. Lessee may terminate the Lease on sixty (60) days’ written notice to the Lessor.

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3. Rent.
(a) Calculated on Square Footage or Percentage of Total Sales Basis.

Lessee shall pay Lessor rent each month, the higher of either:
in the amount determined by multiplying the square footage of the Property by four dollars ($4.00) or;
ii. an amount equal to eight percent (8%) of all gross receipts at the Property, whichever is higher. Gross receipts shall mean the total amounts receivedfrom all revenue sources during the relevant period, except admission taxes, sales taxes, California redemption taxes, City of Avalon Use Taxes/fees, reasonable commissions which are paid to third parties and amounts received from activities upon which City Harbor and Use Fees and Admission Taxes are based. For purposes of calculating Gross Receipts, such commissions paid to third parties shall not exceed 20% of the price paid by the consumer/customer.

In the event that Lessor makes additional space available far Lessee’s use, that space shall automatically be included in the Property, as defined in Paragraph 1 of this Lease, and the square footage of the Property used in calculating the monthly rent amount shall be increased accordingly. Rent shall be calculated year-round on the total square footage of the Property. There shall be no reductions in square footage for the purpose of calculating rent during the off-season.

The amount charged per-square-foot shall be automatically increased each year on July 1 in an amount equal to any increase in the most recent Consumer Price Index released annually by the U.S. Bureau of Labor Statistics. In the event the Consumer Price Index decreases, no change in rent charged per-square-foot shall be made.
(b) Payment Procedures. Lessee shall remit its monthly rent by no later than the thirtieth day after the end of each month during the Term of this Lease to Lessor at the address stated herein. Each monthly payment shall be accompanied by an accounting of total sales for that month. Rent for any period shorter than one month shall be pro-rated on
a daily basis. There shall be no off-season period where rent is reduced or not due; rent shall be due on the thirtieth day of each month regardless of whether the Property was open for business during the month. Lessee is responsible for making the payments required by this section and Lessor will not and is under no obligation to send monthly invoices to Lessee regarding any such payments. (c) Under-Payment Penalties. In addition to the fate payment penalties described in Paragraph 19 of this Lease, if Lessor determines that Lessee has under reported its income resulting in
a rent payment of less than what it should have paid, the following penalties apply;
(i) If the under-reporting of total sales resulted in
a rent payment of
greater than 90% of the correct rental amount, Lessee shall immediately pay to Lessorthe difference, plus a penalty equal to 10% of the difference.
(B) If the under-reporting of total sales resulted in
a rent payment of

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less than or equal to 90% of the correct rental amount, Lessee shall immediately pay toLessor the difference, plus a penalty payment equal to the entirely of that month’s rent, for each month the under-reporting occurred.
(d) Disclosure. At the time that Lessee is required to pay rent each month pursuant to this Section 3, Lessee must provide Lessor with detailed information regarding the total gross receipts for each month, regardless of whether Lessee is required to pay the square footage price pursuant to Section 3(a)(i). (e) Year-end Annual Reconciliation. Within 30 days after the end of every calendar year during the Term, based on the information provided by Lessee and any independent audit of Lessor, Lessor shall determine: (1) the amount Lessee would have paid for the entire calendar year if Lessee paid the square footage rent in Section 3(a)(i) each month; and (2) eight percent (8%) of the Lessee’s total gross receipts as defined in Section 3(a)(U), for the entire calendar year. Lessee is responsible for paying Lessor the higher of the two amounts (“Higher Amount”). If Lessee’s monthly rent payments paid to Lessor for the entire year are less than the Higher Amount, Lessee shall pay Lessor the difference between what was paid and the Higher Amount within thirty days of receipt of such information from Lessor. If Lessee’s monthly rent payments paid to Lessor for the entire year equal more than the Higher Amount, Lessor shall reimburse Lessee the difference between what was paid and the Higher Amount within thirty days of making the determination in this Section 3(e).

4. Use.
(a) Use. Lessee shall occupy and use the Property only for operations, ticketing, and information services for helicopter service and for no other purposewhatsoever. The Property shall be open for business at least nine (9) months each year for the Term of the Lease and Lessee may determine their own hours and days of operation.
(b) Compliance with Law. Lessee shall, at all times and at Lessee’s expense, comply with all applicable federal, state and local laws, rules, regulations, andorders, and all covenants and restrictions of record regulating the Property and Lessee’s use of the Property. Lessee shall not use nor permit the use of the Property in any manner that will violate the same or disturb other property owners or tenants in the areas surrounding the Property or Property.
(c) Condition of Property Lessee has examined the Property and agrees to take possession in an “as is” condition. Lessee acknowledges and agrees that Lessor has made no representations, guarantees or warranties regarding the Property, or its fitness for any particular purpose, or regarding any common areas or improvements thereon, nor has Lessor made representations, guarantees or warranties regarding whether the Property and common areas and improvements thereon comply with applicable laws, rules, regulations, orders, or any covenants or restrictions of record ineffect at the Effective Date of this Lease. Lessee assumes all responsibility regarding the California Occupational Safety Health Act, the le9al use and adaptability of the Property and compliance with all applicable laws, rules, regulations, orders and covenants or PageS of 15
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record in effect during the Term of this Lease relating to the Property except as otherwise specifically stated in this Lease.

5. Hazardous Waste and Trash Disposal. Lessee shall not use, generate, store or dispose of any Hazardous Materials on the Property or permit the contamination of the Property by Hazardous Materials. For the purpose of this section, Hazardous Materials shall include, without limitation, substances defined as ‘hazardous substances,” “hazardous materials,” “toxic substances,” hazardous wastes,” “extremely hazardous wastes” or “restricted hazardous wastes” or stated to be known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. sections 9801, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. sections 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. sections 8901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, et seq.; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; or any
substances so defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time.

Notwithstanding any other provision of this Lease, Lessee agrees to comply promptly, and at Lessee’s sole cost, with all applicable federal, state and local laws, rules regulations, permits and orders gQverning the use, management, storage, handling, cleanup, removal, disposal and shipping of Hazardous Materials. Lessee shall dispose of all trash and waste generated at the Property in
a trash container at
a location designated by Lessor.

6. Special Conditions. Mole Renovation. Lessor will use its best efforts to relocate Lessee’s business during renovations of the Mole such renovations render the Property unfit for the operation of Lessee’s business. Lessor makes no guarantees regarding the size, location, fitness, or availability of any temporary alternalive premises.

Upon completion of the Mole renovations, lessees affected by the renovations will have first right of refusal to reopen their businesses in renovated space on the mole. In the event Lessor is unable to locate suitable alternative temporary space for Lessee’s business during the mole renovation, Lessee hereby releases Lessor from all liability related to the same, as further described in Paragraph 14 of this Lease.

7. Lessee’s Repair and Maintenance Obligations. Lessee shall keep in good order, condition and repair, and shall replace, if necessary, the Property and every part thereof, structural and nonstructural occupied or used by Lessee, whether or not the need for such repairs occurs as
a result of Lessee’s use, any prior use, the elements, or the age of such portion of the Property. This includes, but is not limited to, glazing, plumbing, heating, air conditioning, ventilation, electrical and lighting fixtures and facilities, all equipment within the Property, fixtures, walls (interior and exterior), ceilings, floors, windows, doors, plate glass, skylights, landscaping, tree-trimming, and all fences and signs located on the Property.
(a) To the extent that any such repairs, maintenance, or painting obligations imposed by this Section 7 involve, in the determination of the Lessor, the leased property of another tenant(s) of Lessor who leases space in the same building, such as a common roof, Lessee’s obligations under this Section 7 will be divided proportionately between Lessee and the other tenants of Lessor, if any, based on the number of square feet leased by each.

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8. Surrender. On the last day of the Term of this Lease, or on the date this Lease is earlier terminated, Lessee shall surrender the Property to Lessor in the same condition as when received, ordinary wear and tear and damage by casualty excepted, clean and free of debris. Lessee shall remove all trade fixtures, furnishings and equipment owned by Lessee and shall repair any damage to the Property occasioned by the installation or removal of Lessee’s trade fixtures, furnishings and equipment.

9. Lessor’s Right to Undertake Lessee’s Obligations. If Lessee fails to perform any of Lessee’s obligations under any paragraph of this Lease, Lessor may, at itsoption (but shall not be required to). enter upon the Property after ten (10) days’ prior written notice to Lessee (except in the case of an emergency, as determined by Lessor, in its sole discretion, in which case no notice shall be required), and perform such obligations on Lessee’s behalf. Any costs incurred by Lessor pursuant to this Paragraph, including interest thereon, shall become due and payable to Lessor together withLessee’s next rent installment.

10. Damage to Property. In the event that repairs are necessary to alleviate structural hazards because the Property is damaged by circumstances not caused by the negligence or willful misconduct of Lessee, its employees, contractors, agents, invitees or guests, Lessee shall inform Lessor in writing of such necessity. Lessor shall then have theoption, in its sole discretion, to either immediately terminate this Lease or to provide for the necessary repairs. In the event Lessor elects to terminate this Lease, no rent shall accrue or be payable to the Lessor after the date Lessor terminates the Lease. If repairs which are made by Lessor prevent the Lessee from occupying a portion of the Property,
but Lessee is able to operate on the Property during such repairs, Lessee snaIl be entitled to
a proportionate reduction in the monthly rent, based on the ratio the floor area which Lessee is unable to occupy, from the date such repairs are commenced until the date the entire Property is available for Lessee’s occupancy. If the damage prevents Lessee fromoperating on the Property, then no rent shall be due from the date of damage, as determined by Lessor in its sole discretion, until completion of repairs. Lessee expressly waives the benefit of any statute now or hereinafter in effect which would otherwise afford Lessee the right to make repairs at Lessor’s expense or to terminate this Lease because of Lessor’s failure to keep the Property in good order, condition and repair.

11. Alterations and Additions. Lessee shall not make any alterations, improvements, additions, Utility Installations exceeding $5,000 (Five Thousand Dollars) in value, hang or paint any signs visible from the exterior of the Property, or make any change to the exterior of the Property, without Lessor’s prior written consent- The term“Utility Installation” shall mean installation of carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning,plumbing, and structural changes. If Lessor authorizes any alterations, improvements,additions, or Utility Installations, all such improvements shall be Lessee’s sole responsibility and shall be installed and removed at Lessee’s sole cost and expense.Upon the removal of any improvement, alteration, addition or Utility Installation, Lessee shall restore the Property to its prior condition. Lessor may require Lessee to provide Lessor, at Lessee’s sole cost and expense,
a lien and completion bond in an amount
equal to one and one-half times the estimated cost of such improvements, Should Lessee make any alternations, improvements, additions or Utility Installations without the prior

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approval of Lessor, Lessor may require that Lessee immediately remove any or all of the same.

12. Release of Claim For Relocation Benefits. Lessee hereby acknowledges and agrees that Lessee has no claim or right to relocation benefits or compensation of any kind or nature upon termination of this Lease for any reason, even if such terminationwas made by the unilateral election of Lessor in its sole discretion Lessee expressly waives any and all claims or rights to receive relocation benefits or compensation of any kind or nature. Lessee acknowledges that Lessor would not enter into this Lease but for this acknowledgment and waiver by Lessee. During any period of repair or reconstruction by Lessor during the Term of this Lease that requires Lessee to vacate the Property, Lessor shall be under no obligation to provide alternative space to Lessee, but Lessee shall be relieved of the obligation to pay rent during such time that Lessee is unable toutilize the Property. Lessee shall vacate the Property within sixty (60) days’ written notice to vacate for such purpose and shall be solely responsible for all costs of vacating from and relocating to reconstructed or newly constructed space, if any is available.

13. lnsurance The Lessee shall provide the Lessor with a copy of insurance upon execution of the Lease and upon renewal of insurance as follows:
(a) Workers Compensation Insurance. The Lessee is required to provide evidence of workers’ compensation coverage as follows:

Workers’ Compensation insurance with statutory limits asrequired by the Labor Code of the State of California. ii. Employers Liability with limits of 1,000,000 per Accident; 1,000,000 Disease per employee; 1,000,000 Disease per
policy.
iU. The policy must include a written waiver of the insurer’s right to subrogate against the City of Avalon.
(b) Liability Insurance. For the Term of the Lease, Lessee shall maintain and keep in full force Commercial General Liability Insurance no less broad thanISO form CG 00 01 against any liability arising out of the ownership, use occupancy, or maintenance of the Property, and operation of Lessee’s business at the Property and all appurtenant thereto when used by Lessee. Such insurance be no less than the following:

Minimum Limits: 1,000,000 per Occurrence; 2,000,000
General Aggregate; the General Aggregate shall applyseparately to each location. ii. Prior written consent is required if the insurance has a deductible or self-insured retention in excess of $25,000.

Hi. The City of Avalon must be an additional insured for lability arising out the ownership, maintenance or use of that part of the premises leased to the TenantlLessee/Concessionaire (ISO form CO 20 11 or equivalent).

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iv. The insurance provided to the City of Avalon as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by the City of Avalon.
v. The policy must cover inter-insured suits and include a separation of lnsureds” or severability clause which treats each insured separately.
(c) Property Insurance.

Prior to Lessee’s entry upon the Property and for the Term of the Lease, Lessee shall obtain and keep in full force and effect a policy of insurance covering loss or damage to the Property, in the amount of the full replacement value thereof, against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, commonly known as “broadform coverage.” Lessee shall provide Lessor a copy of this insurance policy upon execution of this Lease.

Lessee shall also insure its fixtures, equipment and tenant improvements on the Property at its sole cost and expense. iii. The limits of said insurance shall not, however, limit the liability of Lessee hereunder
iv. Lessee must name the City as Loss Payee on its property policy.
(d) Restrictions; Endorsements.

Lessee shalt not do or permit to be done anything which shall invalidate the insurance policies during the Term of this Lease.

All policies of insurance shall be endorsed to: (1) name Lessor (and at Lessor’s option, any additional parties designated by Lessor) as an additional insured; (2) provide that such insurance is primary to any policy of Lessor, which shall not be called upon to contribute in any way: and (3) provide that the policy shall not be cancelled, terminated or modified without first providing thirty (30) days’ prior written notice to Lessor.

All insurance policies must be issued by an insurer with anA.M. Best rating of at least A:Vll. Lessee shall provide immediate written notice if (1) any of the required insurance policies are terminated; (2) the limits of any of the required policies are reduced; or (3) the deductible or self-insured retention is increased.

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14. Indemnification and Release.
(a) Indemnification. Lessee shall indemnify, defend and hold harmless Lessor from and against any and all claims, losses, damages or liabilities of any kind ornature, including claims for damage to property or persons, including wrongful death (‘Claim”), arising from or in connection with any act or omission of Lessee, including Lessee’s active and passive negligence or Lessee’s use of the Property or Properly under this Lease, including, without limitation, any activity, work or things done, permitted or suffered by Lessee in or about the Property or elsewhere on the Property and any breachor default by Lessee of this Lease. If any action or proceeding is brought against Lessor by reason of any such Claim, Lessee’s obligation to defend the same shall be done with counsel approved in advance by Lessor.
(b) Release. Lessee hereby agrees that Lessor shall not be liable for, and hereby waives and releases Lessor from, any injury to Lessee’s business or any lossof income therefrom or for damage to the goods, wares, merchandise or other properly of Lessee, Lessee’s employees, contractors, agents, invitees, guests, or any other person on the Property, nor shall Lessor be liable for injury to the person of Lessee, Lessee’semployees, agents, contractors, guests or invitees caused by any reason whatsoever,including without limitation, by fire, steam, electricity, gas, water, rain, the breakage,leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, airconditioning or lighting fixtures on the Property or Property, or from any other cause or condition arising upon the Property or upon other portions of the Property which the Property are a part, or from other sources or places and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Lesseeexcept to the extent such injury or loss is caused by Lessor’s sole gross negligence or willful misconduct. Lessor shall not be liable for any damages arising from any act or neglect of any other lessees or possessors, if any, of the Property.

15. Utilities. Lessee shall arrange and timely pay for all gas, heat, light, disposal, power, and any other utilities and services needed or supplied to the Property, together with any taxes thereon.

16. Assignment and Subletting.
(a) Except as otherwise provided below, Lessee shall not convey, assign, transfer, mortgage, pledge, sublet or encumber any interest in the Property during the Term of this Lease, nor allow any other person (the employees, agents, servants and invitees of Lessee excepted) to occupy or use the Property, or any portion thereot without Lessor’s prior written consent, which may be refused in Lessors sole discretion. (b) Any attempted conveyance, assignment, transfer, mortgage, pledge, sublet, or encumbrance shall be void where such consent has not been obtained, and theoriginal Lessee shall remain responsible for any unpaid rents, fines, fees, or otherliabilities arising from or related to the Property. (c) Any subletting approved by Lessor shall not relieve Lessee of any of its obligations or liabilities under this Lease, and both Lessee and any subsequent lessor(s) will be deemed to be bound by this Lease.

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(d) Any dissolution, merger, consolidation, or other reorganization of Lessee or sale which results in a change of controlling persons shall be deemed an assignment of this Lease. Any such assignment or subletting without advance writtenconsent of Lessor shall be void, and shall, at the option of the Lessor, constitute a default under the terms of this Lease.
(e) Lessee may transfer this Lease upon the sale or other transfer of substantially all of the assets of Lessee, provided Lessee first obtains Lessors writtenconsent, which shall not be unreasonably withheld and provided Lessee pays to Lessor a lease transfer fee equal to three percent (3%) of the sale price with a cap of $30,000 ofLessee’s business (“Transfer Fee”). The Transfer Fee shall not apply to a transfer of thisLease upon the transfer of a controlling interest in Lessee’s business to a member of the immediate family of such controlling person , or to a transfer of the controlling interest toan inter vivos trust in which such controlling person is the trustee of the trust. In the event Lessee’s business has multiple locations and Lessee assigns, sublets, or transfers theLease for one location without assigning or transferring the business as a whole, the Transfer Fee shall be a flat $5,000 or a lower amount at the discretion of the City Manager.

17. Defaults and Remedies.
(a) Defaults. In addition to those items already designated to be a breach or default of this Lease elsewhere in the Lease, the occurrence of any of the following events shall be a material breach of this Lease and shall constitute an event of default:

Abandonment, vacation, or surrender of the Property by
Lessee without Lessor’s prior written consent (failure to occupy and/or operate theProperty for ten (10) consecutive days shall be deemed an abandonment and vacation, unless at least ten (10) days before failing to occupy or operate the Property Lessee givesLessor written notice that Lessee intends to continue using the Property and will continue maintaining the Property while it is vacant, or the dispossession of Lessee from the Property (other than by Lessor by process of law or otherwise). ii. The failure by Lessee to make any payment of rent or any reimbursement or payment required to be made by Lessee, including applicable HarborUse Fees, Admission Taxes, or other fees and taxes to the City Associated with theoperation of the business or use of the leased facilities hereunder, as and when due, where such failure shall continue for a period of three (3) days after written notice thereoffrom Lessor to Lessee. iH. The failure by Lessee to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Lessee, if the failure has continued for a period of ten (10) days after Lessor demands in writing that Lessee cure the failure, provided however, that if the nature of Lessee’s default issuch that more than ten (10) days are reasonably required for its cure, in Lessor’s solediscretion, Lessee shall not be deemed to be in default if Lessee commenced such cure within s?id 10-day period and thereafter diligently prosecutes such cure to completion to the satisfaction of Lessor.

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iv. The making by Lessee of any general arrangement or
assignment for the benefit of any creditor, Lessee becoming a debtor” as defined in 11 U.S.C. 101; the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Property or of Lessee’s interest in this Lease, where possession is not restored to Lessee within 30 days; or the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Property or of Lessee’s interest in this Lease, where such seizure is not discharged within thirty (30) days.
(b) Remedies. In the event of any such material breach or default by Lessee, Lessor may at any time thereafter, with or without notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default or breach, do any of the following:

Terminate the Lease on sixty (60) days’ written notice to Lessee, in which case Lessee shall immediately surrender possession of the Property to Lessor on the termination date specified by Lessor In such event, Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessees default including, but not limited to, the cost of recovering possession of the Property, including all attorneys’ fees and court costs incurred, if any; expenses of reletting, including necessary renovation and alteration of the Property, reasonable attorneys’ fees, and any real estate commission actually paid in connection with such reletting; the value of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Lessor proves could not reasonably be avoided; and that portion of the leasing commission, if any, paid by Lessor for the unexpired Term of this Lease.
ii. Maintain Lessee’s right to possession in which case this Lease shall continue in effect whether or not Lessee shall have abandoned or vacated the Property. In such event, Lessor shall be entitled to enforce all of Lessor’s rights and remedies under this Lease, including the right to recover the rent as it becomes due hereunder.

Hi. Pursue any other remedy available to Lessor at law or in equity.

18. Possessow Interest Tax. Lessee hereby recognizes that this Lease may create a passessory interest subject to property taxation, and that Lessee may be subject to the payment of property taxes levied on such interest.

19. Late Charges. Lessee acknowledges that late payment of rent or any sums due under this Lease will cause Lessor to incur costs not contemplated herein, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any sum due from Lessee is not received by the day it is due, then without requirement for notice to Lessee,Lessee shall pay a late charge of ten percent (10%) per month, plus interest at the rate of Y2 of 1% (.005%) per month or portion thereof, from the date the rent becomes due. The Parties agree that such late charge represents a fair and reasonable estimate of the costsLessor will incur by reason of late payment. Acceptance of such late charge shall in no event constitute a waiver of Lessee’s default, nor prevent Lessor from exercising any of

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the other rights and remedies granted in this Lease. In the event that a late charge is payable for three (3) consecutive installments of rent, then the minimum monthly rent shall automatically become due and payable quarterly in advance, rather than monthly.

The quarterly advance payments of rent will continue until the Lessor notifies Lessee in writing.

20. Severability. If any portion of this Lease is ruled by a court of competent jurisdiction to be invalid, the remaining portions shall remain in full force and effect.

21. Entire Agreement: Amendments. This Lease contains all agreements of the Parties with respect to the Property. No prior agreement or understanding pertainingto any such mailer shall be effective, whether oral or in writing. This Lease may only be modified in writing, signed by the Parties.

22. Notices. Any notice required or permitted to be given under this Lease shall be in writing and given by personal delivery or by first class mail to the address and person below. Either Party may, by notice to the other, specify a different address fornotice purposes. Notice given by personal delivery shall be deemed received uponpersonal delivery. Notice given by mail shall be deemed received three (3) days after deposit in the U.S. Mail.

Lessor: City of Avalon
P.O. Box 707
Avalon, California 90704
Tele: (310) 510-0220
Fax: (310) 510-2478
Attention: Administration -Leases
Lessee: Island Express Helicopter, Inc.
1175 Queens Highway S.

Long Beach, CA 90802
(310) 510-2525
Attention: Phillip G. DiFiore

23. Waivers. The waiver or failure to enforce any provision of this Lease by Lessor shall not be deemed to be a waiver of any future breach of that same provision or of any other provision of this Lease. Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor’s consent to or approval of any subsequent act by Lessee. The acceptance of rent by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any provision of this Lease, other than thefailure of Lessee to pay the particular rent so accepted, regardless of Lessor’s knowledge of such preceding breach at the time of acceptance of such rent.

24. Holding Over. Lessee has no right to retain possession of the Property or any part thereof beyond the expiration or termination of this Lease. If Lessee, with

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Lessor’s consent, remains in possession of the Property or any part of the Property after the expiration or termination of the Term of this Lease, such occupancy shall be a tenancy
from month to month subject to all the provisions of this Lease.

25. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies available at law or in equity.

26. Binding Effect; Choice of Law. This Lease shall be binding upon and inure to the benefit of the Parties, their personal representatives, heirs, successors and assigns. This Lease shall be governed by and construed in accordance with the laws of the State of California. Venue shall be in Los Angeles County.

27. Attorneys’ Fees and Costs, If either Party brings an action to enforce the Terms of this Lease or declare the rights of the Parties under this Lease, the prevailing Party shall be entitled to recover all costs and expenses incurred in such action includingreasonable attorneys’ fees as fixed by the court or arbitrators.

28. Right to Enter Property. Lessor and Lessor’s agents shall have the right to enter the Property, at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Property or Property as Lessor may deemnecessary or desirable. Lessor may, at any time, place on or about the Property any “For Sale” signs and Lessor may, at any time, during the last 120 days of the Term of this Lease plara on or about the Property any “For Lease” signs.

29. Records; Audit. Lessee shall keep records, reports and books of account substantially in accordance with general accepted accounting principles to reflect accurately the gross receipts, expenditures and net income of Lessee concerned with and related to its operations and activities under this Lease. Lessor shall have the right to inspect and audit Lessee’s financial accounts, books and records to ensure Lessee’s compliance with this Lease, at any time during the Term of this Lease. Lessor will provide a minimum written notice of the request to audit forty-eight (48) hours in advance of the a ud it.

30. Nondiscrimination. Lessee covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the requirement that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the use, occupancy, tenure, or enjoyment of the Property, nor shall the Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of employees, contractors or vendors in the Property.

31. Quiet Possession. Upon Lessee’s payment of the rent for the Property and observing and performing all of the covenants, conditions and provisions to be observed and performed under this Lease, Lessee shall be entitled to have quiet possession of the Property for the Term of this Lease subject to all of the provisions of this Lease.

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32. Compliance with Lessor’s Rules for Use of Property. Lessee agrees that it will abide by, keep and observe all reasonable rules and regulations which Lessor may make from time to time for the management of the Property, including, without limitation, the delivery of supplies, the parking of vehicles and the preservation of the good order.The violations of any such rules and regulations shall be deemed a material breach of this Lease.

33. Third-Party Beneficiaries. There are no intended or incidental third-party beneficiaries of this Agreement.

34. Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument and a fully executed Lease.

35. Authority to Execute. The individuals executing this Lease on behalf of each Party represent and warrant that they are fully authorized and legally capable ofexecuting this Lease on behalf of that respective Party, and binding that Party thereto. [Signatures to Lease Agreement on Next Page]

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Signature Page to Lease Agreement
The Parties hereto have executed this ease on the date stated below:

Dated: )..)ISII7 Lessee
By: ¶jjkt.up •b )CIts: fl-&etb3T
By: Its:

Dated: C)j (t] City of Avalon
Denise Radde, Chief
Administrative Officer/City Clerk

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EXHIBIT I
to
Lease Agreement

LEGAL DESCRIPTION OF PROPERTY
[Insert behind this page]

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.
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.

H) Pebbly Beich Road
‘A. Scaplaxies Inc.

13. (‘alal ma Fxp1Arer
C. Island Hxprcss I iclicopier
I). Catal ia Passenger Set-viceIi (‘ULalina Express
)2 Pebbly Beach Road
A. Amloek Baggage ServiceB AIM Machine
C Catalina Adventure Tours 0111cc, Cl— Ticket Counler
I). Discovery Tours
Electrical Control Room, El— Video Surveillance Control Room F. Dockside Dcli
Ci. Restrooni
D
H/
300 PEBBLY BEACH HU.
302 PEBBLY BEACH RD.

CITY OF AVALON CITY COUNCIL
MEETING DATE: March 7, 2023 AGENDA ITEM: 1
ORIGINATING DEP: Administration CITY MANAGER: a
PREPARED BY: Michael Alegria, Fire Chief
Devin Hart, Management Analyst
SUBJECT: Federal Emergency Management Agency Staffing for Adequate Fire and Emergency Response Grant
RECOMMENDED ACTION(S): Authorize the City Manager or his designee to submit an application for the Federal Emergency Management Agency Staffing for Adequate Fireand Emergency Response Grant.REPORT SUMMARY: City Staff have identified a funding opportunity through theFederal Emergency Management Agency (FEMA) to provide additional Staff support for the Fire Department. The Staffing for Adequate Fire and Emergency Response Grant is a competitive grant created to provide funding directly to fire departments to increase ormaintain the number of trained, “front line” firefighters available to the community.

The program will distribute approximately $360 million to 300 agencies.

The Fire Department has a stated goal to increase full-time staffing by three firefighters.The funding provided by the SAFER grant would provide the baseline salary and benefitsfor the additional personnel for a three year period. After three years, the City would have the opportunity to absorb the costs of the additional personnel; or eliminate the positions.

The additional personnel would be distributed to each shift — creating four-man shift. TheCity currently utilizes a three-man shift. The advantage of a fourman shift is the fire engine will be able to operate without delays. A captain and engineer team wilt be available to staff the engine while the firefighters could staff the ambulance.Grant applications are due March 17, 2023 so time is of the essence to submit anapplication.

FISCAL IMPACTS: Dependent on potential grant funding.

GOAL ALIGNMENT: Emergency resource management.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Undetermined.

FOLLOW UP ACTION: Submit
a Adequate Fire and Emergency Response Grant
application to the Federal Emergency Management Agency Staffing.

ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS: None.

Avalon City CouncilMarch 7, 2023

Avalon City Council
March 7, 2023