D.4 - Staff Report - JPA formation North San Gabriel River

North San Gabriel River Open Space and Recreation JPA (Lario Park) July 20, 2026

Page 1 ends

SCHEDULED ITEM
D-4

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: LUCY DEMIRJIAN, SENIOR PROJECT MANAGER
DATE: JULY 20, 2026
SUBJECT: CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING A

JOINT EXERCISE OF POWERS AGREEMENT BETWEEN THE CITIES OF

AZUSA, DUARTE, AND IRWINDALE ESTABLISHING THE NORTH SAN

GABRIEL RIVER OPEN SPACE AND RECREATION JOINT POWERS

AUTHORITY TO PURSUE THE LEASE, MANAGEMENT, OPERATION,

AND REVITALIZATION OF LARIO PARK
BACKGROUND:

In September 2020, the Cities of Azusa, Duarte, and Irwindale established the North San Gabriel River Working Group (NSGRWG) to address growing public safety, environmental, and qualityof-life concerns associated with the North San Gabriel River corridor and surrounding federally owned properties.

The Working Group was formed in response to increasing homelessness, illegal encampments, wildfire risks, environmental degradation, public safety concerns, and emergency response challenges affecting all three communities. Since its formation, the NSGRWG has coordinated public safety operations, homeless outreach efforts, environmental cleanups, encampment abatement projects, emergency response activities, and grant funding opportunities in partnership with the United States Army Corps of Engineers, Los Angeles Homeless Services Authority, law enforcement agencies, and other regional stakeholders.

In November 2023, the Cities formalized their partnership through a Memorandum of Understanding (MOU) establishing a framework for joint planning, resource sharing, public safety coordination, grant administration, environmental stewardship, wildfire mitigation, and restoration of recreational open space within the North San Gabriel River corridor. While the MOU has provided an effective framework for interagency coordination, it does not establish a separate public entity with the legal authority to own or lease property, enter into contracts, administer grant funds, procure insurance, or independently manage long-term operations and maintenance.

North San Gabriel River Open Space and Recreation JPA (Lario Park) July 20, 2026

Page 2 ends

A primary focus of the NSGRWG has been the long-term restoration, management, and activation of Lario Park, a 26-acre portion of the Santa Fe Dam Recreation Area located within the Santa Fe Flood Control Basin and owned by the U.S. Army Corps of Engineers. For almost 50 years, the property was managed by the County of Los Angeles (LA County) pursuant to a lease between the Secretary of the Army and the LA County for public park and recreational purposes.

During a recent meeting of the Los Angeles County Board of Supervisors, a motion was passed in support of having the Cities of Azusa, Duarte, and Irwindale pursue future lease opportunities associated with Lario Park. In response, staff has worked collaboratively with the partner agencies to develop a Joint Exercise of Powers Agreement establishing the North San Gabriel River Open Space and Recreation Joint Powers Authority as the long-term governance and management entity for the property.

Formation of the Authority establishes the legal and administrative framework necessary to implement the long-term governance, management, and stewardship of Lario Park and the broader North San Gabriel River corridor through a separate public entity empowered to administer funding, enter into contracts, procure insurance, adopt annual budgets, and carry out the purposes of the Joint Exercise of Powers Agreement. Accordingly, staff recommends approval of the Joint Exercise of Powers Agreement and authorization for the City of Azusa to participate as a founding member of the North San Gabriel River Open Space and Recreation Joint Powers Authority.

RECOMMENDATIONS:

Staff recommends that the City Council take the following actions:
1) Adopt Resolution 2026-C44 approving the Joint Exercise of Powers Agreement (Agreement) establishing the North San Gabriel River Open Space and Recreation Joint Powers Authority (JPA) and determining the Agreement exempt from CEQA; 2) Authorize the City Manager, or designee, to negotiate, finalize, and execute the Agreement, including the authority to approve and incorporate non-substantive revisions and administrative modifications, subject to approval as to form by the City Attorney, provided such revisions do not materially alter the rights, obligations, governance structure, or financial commitments of the City as approved by the City Council, and to take all actions necessary to implement the City's participation in the formation and initial organization of the Joint Powers Authority, which may include facilitating the Authority’s initial organizational meeting and commencement of operations, consistent with this approval and applicable law; and
3) Authorize the City’s participation in pursuing a lease, license, or other management agreement with the United States Army Corps of Engineers (USACE) for Lario Park and related recreational assets within the Santa Fe Dam Recreation Area, provided that nothing herein authorizes execution of any lease, license, or management agreement beyond the authority delegated by this action or otherwise required by applicable law.

North San Gabriel River Open Space and Recreation JPA (Lario Park) July 20, 2026

Page 3 ends

ANALYSIS:

Given the regional nature of the North San Gabriel River corridor, the shared public safety impacts experienced by all three communities, the existing interagency partnership, and the opportunities for regional grant funding, staff believes a Joint Powers Authority provides the most effective and equitable governance structure.

The proposed JPA represents the next logical evolution of the successful regional collaboration established through the North San Gabriel River Working Group and the 2023 Memorandum of Understanding, transitioning the partnership from a collaborative planning framework to a permanent public entity capable of providing long-term governance and management of regional assets.

While the MOU provides a framework for cooperation among the participating cities, it does not create a separate legal entity capable of entering into lease agreements, obtaining insurance, administering funding, hiring consultants, entering into contracts, or implementing large-scale capital projects. Formation of a JPA will establish an independent public entity with the authority necessary to undertake those responsibilities.

The proposed governance structure also enables the member agencies to share resources, coordinate capital improvements, allocate maintenance responsibilities, and pursue regional funding opportunities that may not otherwise be available to a single agency acting independently.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The proposed action is not a "project" under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it constitutes an organizational and administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment. Alternatively, and to the extent CEQA may apply, the proposed action is exempt pursuant to CEQA Guidelines Section 15061(b)(3), the commonsense exemption.

FISCAL IMPACT:

The proposed JPA will be established as a separate legal entity responsible for maintaining its own budget, financial records, insurance coverage, contracts, and operational structure.

Initial organizational and planning activities will be supported through $2 million in State funding secured through the efforts of Senator Susan Rubio for the establishment of the Joint Powers Authority and the planning of future improvements to Lario Park. These funds have already been awarded and will be utilized by the Authority to support organizational development, lease negotiations, planning, grant administration, and other initial implementation efforts associated with the long-term revitalization and management of Lario Park.

Pursuant to the Joint Exercise of Powers Agreement, the City of Azusa will serve as the Authority's Fiscal Agent and will receive an annual administrative retainer equal to five percent North San Gabriel River Open Space and Recreation JPA (Lario Park) July 20, 2026

Page 4 ends

(5%) of the Authority's annual operating budget to provide fiscal and administrative services to the Authority.

Following execution of the Joint Exercise of Powers Agreement by all participating member agencies, the Authority Board is expected to convene its initial organizational meeting to appoint officers, establish administrative procedures, adopt its initial operating budget, and undertake other actions necessary to commence Authority operations. Thereafter, the JPA will pursue additional grant funding opportunities to support long-term operations, capital improvements, ongoing maintenance, and public safety initiatives.

At this time, the full long-term fiscal impact to each participating member agency has not yet been determined. It is anticipated that the City of Azusa's initial contribution will primarily consist of staff time and other in-kind administrative support necessary to assist with the Authority's formation and early operations. Any future member agency financial contributions, cost-sharing arrangements, or in-kind service commitments beyond those contemplated by the Joint Exercise of Powers Agreement shall remain subject to approval by each participating member agency through its annual budget process and other required governing body actions.

The Authority will maintain its own annual budget, financial records, independent audit, insurance program, and internal financial controls in accordance with the Joint Exercise of Powers Agreement and applicable provisions of California law.

The Authority will obtain and maintain insurance coverage appropriate to its operations, assets, facilities, volunteers, and activities, with associated costs incorporated into future Authority budgets.

Prepared By: Reviewed By:

Lucy Demirjian Talika M. Johnson
Senior Project Manager Director of Administrative Services Reviewed and Approved:

Sergio Gonzalez
City Manager
Attachments:

1. Resolution No. 2026-C44

2. Exhibit A - JPA Agreement – Substantive Draft June 30, 2026

3. Map of North San Gabriel River, Reach 12
RESOLUTION NO. 2026-C44

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA

APPROVING A JOINT EXERCISE OF POWERS AGREEMENT

BETWEEN THE CITIES OF AZUSA, DUARTE, AND IRWINDALE

ESTABLISHING THE NORTH SAN GABRIEL RIVER OPEN SPACE

AND RECREATION JOINT POWERS AUTHORITY TO PURSUE THE

LEASE, MANAGEMENT, OPERATION, AND REVITALIZATION OF

LARIO PARK
WHEREAS, the Cities of Azusa, Duarte, and Irwindale share common interests in protecting, enhancing, and restoring the North San Gabriel River corridor and improving regional public safety, environmental stewardship, recreational opportunities, and quality of life; and WHEREAS, in September 2020, the Cities established the North San Gabriel River Working Group to coordinate regional efforts addressing homelessness, illegal encampments, wildfire risks, environmental degradation, emergency response, and related issues affecting the North San Gabriel River corridor; and
WHEREAS, in November 2023, the Cities entered into a Memorandum of Understanding establishing a framework for cooperative planning, public safety coordination, grant administration, environmental stewardship, and restoration of recreational open space within the North San Gabriel River corridor; and
WHEREAS, the Memorandum of Understanding has provided an effective framework for collaboration but does not establish a separate public entity with the legal authority to own or lease property, enter into contracts, administer grants, procure insurance, retain professional services, adopt annual budgets, or independently manage long-term operations and maintenance; and WHEREAS, Lario Park, consisting of approximately twenty-six (26) acres within the Santa Fe Dam Recreation Area, is owned by the United States Army Corps of Engineers and has historically been managed for public recreational purposes; and WHEREAS, the Los Angeles County Board of Supervisors has expressed support for the Cities of Azusa, Duarte, and Irwindale pursuing future lease opportunities associated with Lario Park; and
WHEREAS, the City Council finds that establishing the North San Gabriel River Open Space and Recreation Joint Powers Authority will provide an effective governance structure to coordinate regional planning, operations, maintenance, grant administration, environmental stewardship, public safety initiatives, and recreational improvements within the project area; and WHEREAS, the City Council has reviewed the proposed Joint Exercise of Powers Agreement attached hereto as Exhibit A and finds that participation in the Joint Powers Authority is in the best interests of the City of Azusa and the public.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Azusa does hereby take the following actions:

SECTION 1. Incorporation of Recitals. The City Council hereby finds the above recitals to be true and correct.

SECTION 2. Approval of Joint Exercise of Powers Agreement. The City Council hereby approves the Joint Exercise of Powers Agreement establishing the North San Gabriel River Open Space and Recreation Joint Powers Authority, attached hereto as Exhibit A, authorizes the City of Azusa to enter into the Agreement and participate as a founding member of the North San Gabriel River Open Space and Recreation Joint Powers Authority, and authorizes the City Manager, or designee, to carry out the actions authorized by this Resolution.

The City Manager, or designee, is authorized to negotiate, finalize, and execute the Agreement, including the approval and incorporation of non-substantive revisions and administrative modifications, subject to approval as to form by the City Attorney, provided such revisions do not materially alter the rights, obligations, governance structure, or financial commitments of the City as approved by the City Council.

The City Manager, or designee, is further authorized to take all actions necessary to implement the City's participation in the formation, initial organization, and commencement of operations of the Joint Powers Authority, including facilitating the Authority's initial organizational meeting, consistent with this Resolution and applicable law.

SECTION 3. United States Army Corps of Engineers. The City Council authorizes the City Manager, or designee, on behalf of the City, to participate in discussions, negotiations, and coordination activities relating to a lease, license, or other management agreement with the United States Army Corps of Engineers for Lario Park and related recreational assets within the Santa Fe Dam Recreation Area, provided that nothing herein authorizes execution of any lease, license, or management agreement except as otherwise authorized by this Resolution or applicable law.

SECTION 4. California Environmental Quality Act. The City Council finds that adoption of this Resolution is not a "project" under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section 15378 because it constitutes an organizational and administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment. Alternatively, and to the extent CEQA may apply, the action is exempt pursuant to CEQA Guidelines Section 15061(b)(3), the common sense exemption.

SECTION 5. Filing of Agreement. Within thirty (30) days after the effective date of the Joint Exercise of Powers Agreement, the City Clerk shall cause a notice of the Agreement to be prepared and filed with the California Secretary of State in accordance with Government Code Section 6503.5.

SECTION 6. Effective Date. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED and ADOPTED this 20th day of July, 2026. ____________________________________
Edward J. Alvarez
Mayor
ATTEST:
____________________________________
Jeffrey Lawrence Cornejo, Jr.

City Clerk

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2026-C44 was duly adopted by the City Council of the City of Azusa at a regular meeting held on the 20th day of July, 2026, by the following vote of the Council:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
___________________________________
Jeffrey Lawrence Cornejo, Jr.

City Clerk
APPROVED AS TO FORM:
___________________________________
Burke, Williams & Sorensen, LLP
City Attorney
“EXHIBIT A”

NORTH SAN GABRIEL RIVER

OPEN SPACE AND RECREATION AUTHORITY

JOINT EXERCISE OF POWERS AGREEMENT
Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 1 of 18

NORTH SAN GABRIEL RIVER

OPEN SPACE AND RECREATION AUTHORITY

JOINT EXERCISE OF POWERS AGREEMENT
This Joint Exercise of Powers Agreement (“Agreement”) is made and entered into by and between the City of Azusa (“Azusa”), the City of Duarte (“Duarte”), and the City of Irwindale (“Irwindale”), each a municipal corporation organized under the laws of the State of California (collectively, the “Member Agencies” or the “Parties”). This Agreement is entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500 et seq.) of the Government Code relating to the joint exercise of powers.

RECITALS
WHEREAS, the Member Agencies share geographic boundaries and areas of mutual interest along and near the North San Gabriel River corridor from and including the Santa Fe Dam and then north to the Angeles National Forest boundary (“JPA Area”), including adjacent open space, flood control corridors, and public rights-of-way; and WHEREAS, the JPA Area presents significant opportunities for passive and active recreation, including trails, greenways, environmental education, and community programming; and
WHEREAS, coordinated public management of the JPA Area can enhance public safety, reduce nuisance and illegal activity, improve emergency access, and support environmental stewardship; and
WHEREAS, each of the Member Agencies has the authority to acquire, develop, maintain, and manage public lands for the public benefit and for public recreation use and enjoyment; and WHEREAS, per Title 1, Division 7, Chapter 5, Article 1 of the California Government Code, Government Code Sections 6500 et seq., commonly known as the Joint Exercise of Powers Act, two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and
WHEREAS, the Member Agencies desire to jointly exercise their common powers per the Joint Exercise of Powers Act to efficiently lease, plan, program, operate, maintain, and improve the JPAArea for recreational and public purposes; and
WHEREAS, the formation of a Joint Powers Authority will promote regional cooperation, leverage funding opportunities, and provide a unified framework for long-term planning and public benefit; and
Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 2 of 18 WHEREAS, the parties desire, by means of this Agreement, to establish an organization called the North San Gabriel River Open Space and Recreation Authority (“Authority”) for such joint exercise of power and authority, and to provide for the organization’s powers and procedures; NOW, THEREFORE, in consideration of the above Recitals and of the mutual promises and agreements contained herein, the Member Agencies agree as follows:

ARTICLE I: DEFINITIONS

1.1. “Act” or the “Joint Exercise of Powers Act” means Articles 1 through 4, Chapter 5, Division 7, Title 1 of the Government Code of the State of California (commencing with Section 6500) relating to the joint exercise of powers common to public agencies.

1.2. “Agreement” means this Joint Exercise of Powers Agreement.

1.3. “Annual Budget” means the budget adopted pursuant to Section 6.8 of this Agreement.

1.4. “Authority” or “JPA” means the North San Gabriel River Open Space and Recreation Authority, which is created by this Agreement.

1.5. “Board” or “Board of Directors” means the Board of Directors referred to in Article IV of this Agreement, which is the governing body of the Authority.

1.6. “Director” means a member of the Board appointed to the Board pursuant to Section 4.1 of this Agreement.

1.7. “Effective Date” means the last date on which all Parties to this Agreement executed the Agreement.

1.8. “JPAArea” means the reach and corridor of the northern San Gabriel River, including the Santa Fe Dam and extending northwards along the San Gabriel River and corridor and terminating at the boundary between the City of Azusa and the Angeles National Forest, as depicted in the boundary map found in Exhibit A

1.9. “Member Agency(ies)” means the City of Azusa, the City of Duarte, the City of Irwindale, and any other entity added to this Agreement by subsequent amendment.

1.10. “Member of the Board” or “Board Member” means a Director.

1.11. “Party(ies)” means those entities who have executed this Agreement or any Amendment to this Agreement and who have not withdrawn from the Authority.

ARTICLE II: FORMATION OF JOINT POWERS AUTHORITY

2.1. Creation. There is hereby created a Joint Powers Authority known as the North San Gabriel River Open Space and Recreation Authority (“Authority”).

Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 3 of 18

2.2. Legal Status. The Authority shall be a public entity separate and distinct from the Member Agencies, as provided under Government Code Section 6507.

2.3. Term. The Authority shall commence upon the Effective Date. This Agreement shall be effective for as long as necessary to carry out the purpose and functions of Authority and may be terminated per Section 12.5 of this Agreement.

ARTICLE III: AUTHORITY PURPOSE AND POWERS

3.1. Purpose. The purpose of the Authority is to jointly plan, lease, program, operate, maintain, enhance, and protect open space and recreational areas located along and near the North San Gabriel River corridor within the JPA Area, in order to promote the following public purposes:
(a) Promote recreational access and community use.
(b) Enhance public safety and visibility.
(c) Improve environmental quality and stewardship.
(d) Coordinate regional recreational planning and funding. (e) Support equitable access to open space.

3.2. Powers. The Authority shall have the power to exercise any power common to the Member Agencies, and is hereby authorized, in its own name, to do all acts necessary, convenient and appropriate for the exercise of the foregoing powers for the purposes set forth in this Agreement, including the power to do any or all of the following:
(a) To enter into agreements, including for agents, officers, employees, consultants, services, goods, and property.
(b) To employ agents, officers, and employees, and to prescribe the duties, compensation and other terms and conditions of employment of such agents, officers, and employees.
(c) To acquire, lease, license, obtain, hold, or dispose of interests in real property. (d) To incur debts, liabilities, or obligations, which shall not constitute a debt, liability, or obligation of any Member Agency.
(e) To invest money in the treasury, per California Government Code section 6505.5, that is not required for the immediate necessities of the Authority, as the Authority determines advisable, in the same manner and on the same conditions as local agencies, per Section 53601 of the Government Code.

Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 4 of 18 (f) To plan, design, construct, operate, and maintain recreational facilities and trails, including associated buildings, works, and improvements. (g) To receive gifts, contributions and donations of property, funds, services, and other forms of assistance from persons, firms, corporations, and governmental entities, provided that the Authority consents to such gifts, contributions and donations. (h) To adopt reasonable policies, rules, and regulations for the conduct of the day-today operations of the Authority and to effectuate its purpose. (i) To apply for, receive, administer, and disburse grants and other aid from any agency of the United States of America or of the State of California. (j) To sue and be sued in its own name.
(k) To implement programming, events, and community activities. (l) To coordinate public safety efforts with law enforcement and emergency services. (m) To carry out and enforce all provisions of this Agreement. (n) To exercise any and all common powers which are provided for in the Joint Exercise of Powers Act and in Section 6588 of the Government Code, as they exist on the Effective Date of this Agreement or may hereafter be amended.

3.3. Limitation of Powers.
(a) The Authority shall have no power to impose or levy general or special taxes, special benefit assessments upon property, or property-related fees. However, the Authority may establish the following:
(i) A fee for a specific Authority benefit conferred or privilege granted directly to the payor that does not exceed the Authority’s reasonable costs of providing the benefit or privilege;
(ii) A fee for a specific Authority service or product provided directly to the payor that does not exceed the reasonable costs of providing the service or product;
(iii) A charge for the Authority’s reasonable regulatory costs for issuing licenses and permits; for performing investigations, inspections, and audits; and for administrative enforcement and adjudication thereof; and (iv) A charge for entrance to or use of Authority property, or the purchase, rental, or lease of Authority property.

Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 5 of 18 (b) For the purpose of Section 6509 of the Joint Exercise of Powers Act, the Authority’s power is subject to the restrictions upon the manner of exercising the powers as are imposed upon each City.

ARTICLE IV: BOARD OF DIRECTORS

4.1. Board of Directors. The Authority shall be governed by a Board of Directors that shall be known as the “Board of Directors of the North San Gabriel River Open Space and Recreation Authority.” The Board of Directors shall consist of seven (7) members, who shall be appointed as follows:
(a) One (1) appointed representative from each Member Agency’s City Council, resulting in three (3) Directors;
(b) One (1) appointed representative as designated by the City Manager of each Member Agency, resulting in three (3) additional Directors; and (c) One (1) additional representative from the City of Azusa, as the fiscal agent for the Authority, resulting in one (1) additional Director.

4.2. Membership Term. Each Director shall serve a two-year appointment and may be reappointed. Member agencies may designate alternates. Adding, removing or replacing appointees will require formal action from each member agency.

4.3. Compensation. Board members shall serve without compensation from the Authority.

4.4. Powers of the Board. All the power and authority of the Authority shall be exercised by the Board of Directors.

4.5. Officers.
(a) Chair. The Board of Directors shall elect one of its members as Chair of the Board.

The term of office for the Chair of the Board shall be one year. The Chair of the Board shall preside at all meetings and shall perform such other duties as are specified by the Board of Directors.
(b) Vice-Chair. The Board of Directors shall elect one of its members as Vice-Chair.

The term of office for the Vice-Chair shall be one year. The Vice-Chair shall perform all the duties of the Chair of the Board in the absence of the Chair of the Board, or in the event the Chair of the Board is unable to perform such duties, and shall perform such other duties as are specified by the Board of Directors. (c) Secretary. The Board of Directors shall elect a Secretary who shall serve at the pleasure of the Board. The Secretary may, but need not be, a Member of the Board of Directors. The Secretary shall be responsible for certifying the minutes and other records of the proceedings of the Board of Directors and shall perform such other duties as the Board of Directors specifies.

The Fiscal Agent shall manage the Authority’s funds and provide financial and administrative services in accordance with California Government Code Sections 6505 and 6505.5. The duties of the Fiscal Agent are further described in Section 6.6 of this Agreement.
(e) Authority Attorney. The Board of Directors shall elect or appoint an Authority Attorney who shall serve at the pleasure of the Board, who shall not be a member of the Board or an elected official or employee of any Party. The Authority Attorney or a designated deputy may attend all meetings of the Board of Directors; provided, however, that the absence of the Authority Attorney shall not affect the validity of any meeting. The Authority Attorney shall perform such other duties the Board of Directors specifies.
(f) Additional Officers. The Board shall have the power to appoint additional officers as may be appropriate.
(g) Official Bond. Per Government Code section 6505.1, the public officer, officers or persons who have charge of, handle or have access to any property of the Authority shall file an official bond in an amount to be fixed by the Parties to this Agreement.

When deemed appropriate by the Authority, a master bond may be utilized as referred to in Government Code Section 1481, and the bond shall also comply with the requirements of Title 1, Division 4, Chapter 3 of the Government Code, with those sections being deemed applicable to the Authority to the extent the Parties deems appropriate. The premium shall be paid by the Authority.

4.6. Bylaws. The Board may cause to be developed and may adopt and amend, from time to time, such bylaws for the Authority to govern its day-to-day operations. Each Member Agency shall receive a copy of any bylaws developed and adopted under this Section.

4.7. Committees. The Board of Directors, by a majority vote, may form committees for any purpose. Such vote shall designate the method for appointing committee members, the scope of the duties and responsibility of the committee, whether the committee is a standing or ad hoc committee, and such other matters as the Board may deem appropriate. No compensation shall be payable to committee members unless approved by the Board.

4.8. Meetings of the Board and Voting.
(a) Regular Meetings. The Board shall conduct regular meetings; provided, however, that at least one regular meeting shall be held each fiscal quarter. The date, hour, and place of regular meetings shall be fixed by Resolution of the Board and filed with the governing body of each Member Agency. The Board may meet in joint session with other public agencies and advisory bodies in accordance with state law.
(b) Ralph M. Brown Act. All meetings of the Board, including without limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held, and Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 7 of 18 conducted in accordance with the provisions of the Ralph M. Brown Act, commencing with section 54950 of the California Government Code. (c) Voting. Except as otherwise provided by law or by this Agreement, all actions of the Board shall be approved on the affirmative vote of a majority of the Members of the Board. A supermajority approval will be required for approval of the budget, debt issuance, property acquisition and disposition, cost sharing changes, litigation authorization, Executive Officer hiring/termination.
(d) Quorum. A majority of the Members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.
(e) Minutes. The Secretary of the Authority shall cause minutes of regular, adjourned regular, and special meetings to be kept and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Member of the Board and to each Member Agency.
(f) Rules. The Board may adopt from time to time such rules and regulations for the conduct of its affairs as may be required.

ARTICLE V: AUTHORITY EMPLOYEES

5.1. Executive Officer. The Board shall appoint an Executive Officer for the Authority, who shall be responsible for the day-to-day operation and management of the Authority. The Executive Officer may be an employee of a Member Agency designated by that Member Agency and appointed by the Board, provided that the Executive Officer shall not simultaneously serve as that Member Agency's voting representative on the Board. The Board may appoint an Executive Officer from any Member Agency and may change such appointment from time to time, as determined to be in the best interests of the Authority..

The Executive Officer may exercise all powers of the Authority, except those powers reserved to the Board by this Agreement or the Authority's bylaws, or those powers which by law must be exercised by the Board. The Executive Officer may enter into and execute agreements and other contracts, in accordance with criteria, regulations, and policies established by the Board.

5.2. Additional Employees and Agents. The Board and the Executive Officer shall have the power to employ or retain additional employees, assistants, contractors, consultants and others as may be appropriate, and in accordance with all applicable laws and regulations.

5.3. Loan of Employees. To implement this Agreement the Parties may loan employees to the Authority on terms mutually agreed to between the Authority and the loaning Party. No Member Agency is obligated, however, to loan any employees to the Authority. Loaned employee remains an employee of that City for payroll, benefits, and workers’ compensation purposes.

Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 8 of 18

5.4. Compliance with the Political Reform Act and Government Code Section 1090. The Authority and its officers and employees shall comply with the Political Reform Act (Government Code Section 81000 et seq.) and Government Code Section l 090 et seq. The Board shall adopt a Conflict of Interest Code pursuant to Government Code Section 87300.

The Board may adopt additional conflict of interest regulations as necessary.

5.5. Privileges and Immunities from Liability. All of the privileges and immunities from liability, exemption from laws, ordinances and rules, all pension, relief, disability, workers' compensation and other benefits which apply to the activities of officers, agents, or employees of a public agency when performing their respective functions shall apply to the officers, agents, or employees of the Authority to the same degree and extent while engaged in the performance of any of the functions and other duties of such officers, agents, or employees under this Agreement. None of the officers, agents, or employees directly employed by the Board shall be deemed, by reason of their employment by the Authority to be employed by the Parties or by reason of their employment by the Authority, to be subject to any of the requirements of the Parties.

ARTICLE VI: FINANCIAL PROVISIONS

6.1. Fiscal Year. The Fiscal Year of the Authority shall be the period commencing on July 1 of each year and ending on and including the following June 30.

6.2. Sources of Funds. The sources of funds available to the Authority may include, but are not limited to, the following:
(a) Member Agency Contributions and Cost-Sharing. Annual contributions from each of the Member Agencies per a cost-sharing formula adopted by the Board and approved by each Party’s governing body. The cost-sharing formula shall consider factors including, but not limited to:
(i) Proximity to facilities.
(ii) Level of use.
(iii) Populations served.
(iv) Project-specific benefits.
(b) Grants, Donations, and Sponsorships. Grants, donations, and sponsorships received by the Authority from local, State, or Federal agencies, or from individuals or businesses.
(c) Disaster Relief Funding. Funds received from State and Federal disaster relief agencies.

Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 9 of 18 (d) In-Kind Funding. “In kind” contributions from Member Agencies, individuals, and corporations. No Member Agency is obligated, however, to provide any “in-kind” contributions to the Authority
(e) Fees and Charges. Funds for lease revenues, program fees, and property rentals.

6.3. No Debt Without Approval. The Authority shall not incur debt payable by a Member Agency without that Agency’s express approval by a supermajority vote.

6.4. Receipt of Funds. The Authority shall arrange for the receipt of such funds from the above sources as are available to the Authority and as are necessary for the conduct of the Authority’s activities.

6.5. Accounts. There shall be strict accountability of all funds and reporting of all receipts and disbursements. Revenues or funds received or made available to the Authority from any source whatsoever, shall be deposited into accounts that may be established by the Authority, and may be expended by the Authority in any legal manner, subject to such reservations as may be imposed by the Authority from time to time.

6.6. Fiscal Agent. The City of Azusa is designated as the Fiscal Agent for the Authority. The Fiscal Agent shall manage, serve as depository, and have custody of all funds and money of the Authority, from whatever source, and shall have all of the duties and obligations set forth in Government Code Sections 6505 and 6505.5.
(a) Fiscal Agent Responsibilities and Administrative Services. The Fiscal Agent shall perform the following financial responsibilities and administrative services on behalf of the Authority:
(i) Receive, hold, and disburse Authority funds as directed by the Board. (ii) Maintain accounting records and internal controls. (iii) Prepare all financial reports for the Board.
(iv) Ensure Authority compliance with applicable public finance and audit laws. (v) Arrange for audits of Authority funds as required per Section 6.9 of this Agreement or per other applicable regulations.
(vi) Budget preparation and financial management.
(vii) Processing payments and contracts.
(viii) Grant administration.
(ix) Financial recordkeeping and required filings.
(b) Administrative Retainer. The Authority shall pay the Fiscal Agent an annual administrative retainer equal to five percent (5%) of the Authority’s annual Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 10 of 18 operating budget in consideration of the Fiscal Agent’s fiscal and administrative services.
(c) Fiscal Agent Liability. The Fiscal Agent’s role is administrative and fiduciary only.

The Fiscal Agent is not responsible or liable for Authority policy decisions, or obligations not approved by the Board.

6.7. Annual Reports. The Fiscal Agent shall, within 90 days after the close of each Fiscal Year, give a complete written report of all financial activities for such fiscal year to the Board of Directors and to each Member Agency. The Authority’s books and records shall be open to inspection at all reasonable times by representatives of each Member Agency.

6.8. Annual Budget. The Board of Directors shall adopt interim and annual budgets as described below:
(a) Interim Budget. The Board shall, within sixty (60) days of the Effective Date of this Agreement, approve an interim budget, which shall constitute the operating budget until the Annual Budget is adopted.
(b) Annual Budget. Annually, prior to July 1 of each year, the Board shall adopt a budget for all expenses to be made by the Authority during the ensuing Fiscal Year and an allocation of contributions from the Member Agencies. The Authority shall conduct a public budget study session no later than April 30 of each year to review the proposed Annual Budget and projected Member Agency contributions for the ensuing Fiscal Year. The proposed contribution amountsshall be transmitted to each Member Agency no later than May 1 to allow incorporation into each Member Agency’s municipal budget process. Public funds may not be distributed by the Authority except pursuant to a budget adopted by the Board in accordance with this Agreement, compliance with procurement procedures and policies and all receipts and disbursements shall be in strict conformance with the adopted budget. (c) Budget Amendments and Revisions. No expenditures in excess of those budgeted shall be made without approval of a revised or amended budget, which may from time to time be submitted to and approved by the Board of Directors.

6.9. Audit. The Fiscal Agent shall cause an annual independent audit of the accounts and records of the Authority to be made and reported in accordance with Sections 6505 through 6505.6 of the Government Code. The audit shall conform to generally accepted auditing standards. The cost of the annual independent audit shall be considered an administrative expense of the Authority and shall be funded by the Member Agencies in accordance with the cost-sharing formula adopted pursuant to this Agreement. Such report shall be filed by December 31 following the close of the Fiscal Year under examination.

6.10. Procurement Methods. The purchasing regulations of the City of Azusa are hereby adopted as the policies relating to procurement of services, equipment, supplies, and other materials needed to accomplish the purposes of this Agreement.

7.1. Real Property Ownership. Nothing in this Agreement shall transfer ownership of real property unless expressly authorized by the affected Member Agency.

7.2. Use of Open Space. The Authority may manage open space and facilities located within the JPAArea consistent with the purposes of this Agreement and subject to applicable laws, regulations, permits, and flood control requirements.

7.3. Property Maintenance Standards. Facilities and open space shall be maintained in a manner consistent with public safety, environmental regulations, and community standards.

ARTICLE VIII: PUBLIC SAFETY

8.1. Public Safety Coordination. The Authority shall work collaboratively with Member Agency police, fire, and public works departments to improve visibility and access, reduce illegal activity, and support emergency response efforts and personnel.

ARTICLE IX: INSURANCE

9.1. Insurance. The Authority shall maintain types and levels of insurance coverage for the Authority as the Board of Directors determines to be reasonably adequate and as is necessary to protect the interests of the Authority and the Parties. Notwithstanding the above, the Authority shall maintain comprehensive general liability limits of no less than $1,000,000 per occurrence for bodily injury (including death), personal injury, and property damage. If general liability insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit. The Authority may self-insure in order to satisfy this requirement. Each Member Agency shall be named as an additional insured on all liability insurance policies maintained by the Authority.

ARTICLE X: LIABILITY AND INDEMNIFICATION

10.1. Liability of Authority, Board, Officers, and Employees. Each Member Agency shall be responsible for its own acts and omissions. The debts, liabilities, and/or obligations of the Authority shall not be the debts, liabilities, and/or obligations of any of the Member Agencies or any of their respective members, officers, directors, employees, or agents. In no event shall any Member Agency be liable for any debts, liabilities, obligations, claims, or judgments of the Authority in excess of that Member Agency’s approved annual financial contribution to the Authority as adopted pursuant to this Agreement. The Authority, its Directors, officers, employees, staff, and agents shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No Member Agency, its officer, director, or employee shall be responsible for any action taken or omitted by any other Member Agency, or its officers, or employees.

Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 12 of 18

10.2. Indemnification. The Authority shall indemnify, defend, and hold harmless a Director, the Board of Directors, the individual Member Agencies, their members, officers, directors, employees, and agents from and against any and all claims, losses, damages, deductibles or self-insured retentions, costs (including, without limitations, costs and fees of litigation or arbitration), fines, penalties, injuries, and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, errors, omissions, or negligence of the Authority or its officers, employees, agents, contractors, licensees, or volunteers related to this Agreement, except such loss or damage which was caused by the gross negligence or willful misconduct of a Director, the Board of Directors, or any individual Member Agency. The obligations of the Authority under this Section shall be payable solely from the funds and insurance coverage of the Authority, and no Member Agency shall be jointly or severally liable for any claim, loss, or liability of the Authority if the Authority’s insurance or assets are insufficient to satisfy such obligation. The Authority’s duty to indemnify each Member Agency pursuant to this Agreement shall survive that Member Agency’s withdrawal from the Authority and termination of the Authority.

ARTICLE XI: AMENDMENTS TO AGREEMENT

11.1. Amendments to Agreement. This Agreement may be amended at any time by the written consent of the governing bodies of all the Member Agencies, including for the purpose of adding new Member Agencies to the Authority. The Executive Officer shall provide a fully executed copy of the amended Agreement to the Board of Directors and to each Member Agency after each Member Agency has approved and executed the amendment.

ARTICLE XII: ADMISSION, WITHDRAWAL, AND TERMINATION

12.1. Admission of New Member Agencies. Additional public agencies may join the Authority upon approval of the Board and execution of an amendment to this Agreement per Article XI of this Agreement.

12.2. Withdrawal of Member Agencies.
(a) Notice of Withdrawal. Notwithstanding any other provision of this Agreement, any Member Agency may withdraw from the Authority by providing the Authority with written notice of its intent to withdraw at least twelve (12) months in advance of the withdrawal date. The Board, in its discretion, may approve a shorter notice period on a case-by-case basis.
(b) Governing Body Approval. Withdrawal of a Member Agency shall require an affirmative vote of the Member Agency’s Governing Body. (c) Withdrawal from Board of Directors. A withdrawal from the Authority constitutes a withdrawal of that Member Agency’s representatives from the Board of Directors. (d) Amendment to Agreement. Withdrawal of a Member Agency from the Authority shall be effected by an amendment to this Agreement per Article XI of this Agreement after the notice period in Section 12.2(a) has expired.

Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 13 of 18 (e) Withdrawing Party’s Obligations. The withdrawal of a Member Agency shall not terminate that Member Agency’s continuing obligations as described in Section

12.4, below.

12.3. Involuntary Termination.
(a) Material Non-Compliance. A Party to this Agreement may be terminated from this Agreement and the Authority for material non-compliance with provisions of this Agreement or Authority policies and regulations upon a two-thirds vote of the entire Board, excluding the vote of the Party subject to possible termination. (b) Notice and Hearing. Prior to any vote to terminate this Agreement with respect to a Party, written notice of the proposed termination and the reason(s) for such termination shall be delivered to the Party whose termination is proposed at least 30 days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item. The written notice of proposed termination shall specify the particular provisions of this Agreement or Authority policies and regulations that the Party has allegedly violated. The Party subject to possible termination shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination.
(c) Terminated Party’s Obligations. A Party that has had its membership in the Authority terminated shall not be relieved of that Party’s continuing obligations as described in Section 12.4, below.

12.4. Continuing Obligations. Upon withdrawal or involuntary termination of a Party, the Party shall be responsible for continuing obligations as follows:
(a) Upon withdrawal or involuntary termination of a Party, the Party shall be responsible for any claims, demands, damages, or liabilities attributable to the Party through the effective date of its withdrawal or involuntary termination, including for its share of budgeted expenses for the Fiscal Year in which withdrawal or termination was effected, and for any damages, losses, or costs incurred by the Authority which result directly from the Party's withdrawal or termination. The liability of the withdrawing or terminated Party shall be based on actual costs or damages incurred by the Authority and shall not include any penalties or punitive charges imposed by the Authority.
(b) The withdrawing or involuntarily terminated Party shall not be responsible for any claims, demands, damages, or liabilities commencing or arising after the effective date of the Party's withdrawal or involuntary termination. (c) The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority, to cover the Party's liability for the costs described above. The withdrawing or terminated Party agrees to pay any such deposit determined by the Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 14 of 18 Authority.Any amount of the Party'sfunds held on deposit with theAuthority above that which is required to pay any liabilities or obligations shall be returned to the Party.
(d) From and after the date a Party provides notice of its withdrawal or is terminated, the Authority shall reasonably and in good faith seek to mitigate any costs and obligationsto be incurred by the withdrawing or terminated Party under this Section through measures reasonable under the circumstances, provided that this obligation to mitigate does not impose any obligation on the Authority to transfer any cost or obligation directly attributable to the membership and withdrawal or termination of the withdrawing or terminated Party to the remaining Parties.

12.5. Termination of Authority.
(a) Dissolution Agreement. This Agreement and the Authority may be terminated by the mutual written consent of the governing bodies of all the Member Agencies in the form of a dissolution agreement. However, this Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, distribution of assets, and all other functions necessary to conclude the affairs of the Authority. (b) Remaining Assets. Upon termination of this Agreement and the Authority by all Parties, and after payment of all obligations of the Authority, the Board may sell or liquidate Authority property and shall distribute any remaining assets to the Parties in proportion to the contributions made by the existing Parties. Any assets provided by a Party to the Authority shall remain the asset of that Party and shall not be subject to distribution under this section.

12.6. Five-Year Performance Review. Commencing five (5) years after the Effective Date of this Agreement, and every five (5) years thereafter, the Board shall conduct a formal review of the Authority’s performance, financial sustainability, governance structure, and continued public benefit. The results of such review shall be presented to the governing body of each Member Agency, and the Board may recommend amendments to this Agreement as appropriate based upon the findings of the review.

ARTICLE XIII: DISPUTE RESOLUTION

13.1. Dispute Resolution. The Parties and the Authority shall make reasonable efforts to settle all disputes arising out of or in connection with this Agreement. (a) Mediation. Before exercising any remedy provided by law, a Party or the Parties and the Authority shall engage in non-binding mediation in the manner agreed upon by the Party or Parties and the Authority. The Parties agree that each Party may specifically enforce this section.
(b) Legal Remedies Preserved. In the event that non-binding mediation is not initiated or does not result in the settlement of a dispute within 60 days after the demand for Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 15 of 18 mediation is made, any Party and the Authority may pursue any other remedies provided by law.

ARTICLE XIV: MISCELLANEOUS PROVISIONS

14.1. Severability. If any section, clause or phrase of this Agreement or the application thereof to any Party or any other person or circumstance is for any reason held to be invalid by a court of competent jurisdiction, it shall be deemed severable, and the remainder of the Agreement or the application of such provisions to the other Party or to other persons or circumstances shall not be affected thereby. Each Party hereby declares that it would have entered into this Agreement, and each subsection, sentence, clause and phrase thereof, irrespective that one or more sections, subsections sentences, clauses or phrases or the application thereof might be held invalid.

14.2. No Third-Party Beneficiaries. The provisions of this Agreement are for the sole benefit of the Parties and the Authority and not for the benefit of any other person or entity. No third party beneficiary shall be created by or arise from the provisions of this Agreement.

14.3. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto.

14.4. Assignment. The rights, titles and interests of any Party to this Agreement shall not be assignable or transferable without the consent of the governing bodies of the Member Agencies. This section does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regarding the financing of that Party's contributions to the Authority, or the disposition of the proceeds which that Party receives under this Agreement, so long as such independent agreement does not affect, or purport to affect, the rights and duties of the Authority or the Parties under this Agreement.

14.5. Required Filings. Upon execution of this Agreement, the Authority shall cause a notice of this Agreement and any other filings required pursuant to Government Code Sections 6500 et seq., including Sections 6503.5 and 53051, to be filed with the office of the Secretary of State and the State Controller. The Authority shall be responsible for maintaining compliance with all reporting and filing requirements applicable to joint powers authorities under California law.

14.6. Notices. 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 the respective Parties, as follows:
(a) City of Azusa
Attn: City Manager
213 E. Foothill Blvd.

Azusa, CA 91702
Rachel Richman, City Attorney
Burke, Williams & Sorensen, LLP
Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 16 of 18 444 South Flower Street, 40th Floor,
Los Angeles, CA 90071
[email protected]
(b) City of Duarte
Attn: City Manager
1600 Huntington Dr.

Duarte, CA 91010
Thai Viet Phan, City Attorney
Rutan & Tucker, LLP
18575 Jamboree Road, 9th Floor
Irvine, CA 92612
[email protected]
(c) City of Irwindale
Attn: City Manager
5050 N. Irwindale Ave.

Irwindale, CA 91706
[INSERT COUNSEL]
[INSERT FIRM]
[INSERT ADDRESS]
[INSERT ADDRESS]
[INSERT EMAIL]

14.7. Governing Law. 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 such State.

14.8. Integration. This Agreement constitutes the full and complete Agreement of the Parties.

14.9. Counterparts/Electronic Signatures. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement. This Agreement may be signed digitally/electronically with the same force and effect as original ink signatures.

Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 17 of 18

SIGNATURES TO FOLLOW

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Substantive Draft July 2026
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 18 of 18 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized on the day and year set forth below, making the same effective on the date signed by the last of all Parties hereto.

CITY OF AZUSA CITY OF DUARTE
City Manager City Manager
Dated: ____________________________ Dated: ____________________________ ATTEST: ATTEST:

City Clerk City Clerk
Dated: ____________________________ Dated: ____________________________ APPROVED AS TO FORM: APPROVED AS TO FORM:

City Attorney City Attorney
Dated: ____________________________ Dated: ____________________________

CITY OF IRWINDALE
City Manager
Dated: ____________________________
ATTEST:

City Clerk
Dated: ____________________________
APPROVED AS TO FORM:

City Attorney
Dated: ____________________________
Lario Park
Ariel Photos
June 30, 2026

Page 1 of 9 ends