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Item 6 - CONSIDERATION OF THE WEST COVINA COMMUNITY SERVICES FOUNDATION FISCAL YEAR 2021-2022 ANNUAL REPORTAGENDA ITEM NO.6 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: October 18, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF THE WEST COVINA COMMUNITY SERVICES FOUNDATION FISCAL YEAR 2021-2022 ANNUAL REPORT RECOMMENDATION: It is recommended that the Board of Directors of the West Covina Community Services Foundation receive and file this report. BACKGROUND: On February 1, 2005, the City of West Covina authorized the formation of the West Covina Community Services Foundation (Foundation), a California Public Benefit Corporation. According to the bylaws (Attachment No. 1), the Foundation was organized for charitable purposes to "provide services beneficial to the public interest by seeking to offer, improve, or expand services that enhance the quality of life for residents." The Foundation does this by receiving gifts of funds from donors for specific purposes (i.e., 4th of July Celebration, Summer Concerts, etc.). In addition, funds are raised to provide new recreational opportunities, increase public safety services, preservation of City equipment and facilities, and the pursuit of other benefits of public interest. The Foundation also allows the City to be more competitive when seeking grant funding to help provide such services. The Foundation's Board of Directors consists of the West Covina City Council, with the Mayor as the Chairperson of the Board and the Mayor Pro Tern as the Vice Chairperson of the Board. The City Manager serves as the Foundation's President, City Clerk as the Secretary, and Finance Director as the Chief Financial Officer. The Foundation received its Internal Revenue Service tax deductible 501(c)3 status on June 16, 2006 (Tax ID # 43-2085596). DISCUSSION: (1) Certify and keep at the principal office of the Corporation the original, or a copy of these Bylaws as amended or otherwise altered to date. (2) Keep at the principal office of the Corporation or at such other place as the board may determine, a book of minutes of all meetings of the directors, and, if applicable, meetings of committees of directors and of members, recording therein the time and place of holding, whether regular or special, how called, how notice thereof was given, the names of those present or represented at the meeting, and the proceedings thereof. (3) See that all notices are duly given in accordance with the provisions of these Bylaws or as required by law. (4) Be custodian of the records and of the seal of the Corporation and see that the seal is affixed to all duly executed documents, the execution of which on behalf of the Corporation under its seal is authorized by law or these Bylaws. (5) Keep at the principal office of the Corporation a membership book containing the name and address of each and any members, and, in the case where any membership has been terminated, he or she shall record such fact in the membership book together with the date on which such membership ceased. (6) Exhibit at all reasonable times to any director of the Corporation, or to his or her agent or attorney, on request therefore, the Bylaws, the membership book, and the minutes of the proceedings of the directors of the Corporation. (7) In general, perform all duties incident to the office of Secretary and such other duties as may be required by law, by the Articles of Incorporation of this Corporation, or by these Bylaws, or which may be assigned to him or her from time to time by the Board of Directors SECTION 7. DUTIES OF CHIEF FINANCIAL OFFICER Subject to the provisions of these Bylaws relating to the "Execution of Instruments, Deposits and Funds," the Chief Financial Officer shall: (1) Have charge and custody of, and be responsible for, all funds and securities of the Corporation, and deposit all such funds in the name of the Corporation in such banks, trust companies, or other depositories as shall be selected by the Board of Directors. 0 (2) Receive, and give receipt for, monies due and payable to the Corporation from any source whatsoever. (3) Disburse, or cause to be disbursed, the funds of the Corporation as may be directed by the Board of Directors, taking proper vouchers for such disbursements. (4) Keep and maintain adequate and correct accounts of the Corporation's properties and business transactions, including accounts of its assets, liabilities, receipts, disbursements, gains and losses. (5) Exhibit at all reasonable times the books of account and financial records to any director of the Corporation, or to his or her agent or attorney, upon request (6) Render to the Board of Directors, whenever requested, an account of any or all of his or her transactions as Chief Financial Officer and of the financial condition of the Corporation. (7) Prepare, or cause to be prepared, and certify, or cause to be certified, the financial statements to be included in any required reports. (8) In general, perform all duties incident to the office of Chief Financial Officer and such other duties as may be required by law, by the Articles of Incorporation of the Corporation, or by these Bylaws, or which may be assigned to him or her from time to time by the Board of Directors. ARTICLE 6 EXECUTION OF INSTRUMENTS, DEPOSITS AND FUNDS SECTION 1. EXECUTION OF INSTRUMENTS The Board of Directors, except as otherwise provided in these Bylaws, may by resolution authorize any officer or agent of the Corporation to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation, and such authority may be general or confined to specific instances. Unless so authorized, no officer, agent, or employee shall have any power or authority to bind the Corporation by any contract or engagement or to pledge its credit or to render it liable monetarily for any purpose or in any amount. SECTION 2. CHECKS AND NOTES Except as otherwise specifically determined by resolution of the Board of Directors, or as otherwise required by law, checks, drafts, promissory notes, 2 orders for the payment of money, and other evidence of indebtedness of the Corporation shall be signed by the Chief Financial Officer and countersigned by the Chairperson of the Board of Directors. SECTION 3. DEPOSITS All funds of the Corporation shall be deposited from time to time to the credit of the corporation in such banks, trust companies, or other depositories as the Board of Directors may select. SECTION 4. GIFTS The Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest, or devise for the charitable or public purposes of this corporation. Limitations on gifts to individual Directors shall comply with the Political Reform Act and the Fair Political Practices Commission. ARTICLE 7 CORPORATE RECORDS, REPORTS AND SEAL SECTION 1. MAINTENANCE OF CORPORATE RECORDS The Corporation shall keep at its principal office in the State of California: (1) Minutes of all meetings of directors, committees of the board and , indicating the time and place of holding such meetings, whether regular or special, how called, the notice given, and the names of those present and the proceedings thereof; (2) Adequate and correct books and records of account, including accounts of its properties and business transactions and accounts of its assets, liabilities, receipts, disbursements, gains and losses; (3) A copy of the corporation's Articles of Incorporation and Bylaws as amended to date, which shall be open to inspection by the members, if any, of the Corporation at all reasonable times during office hours. SECTION 2. CORPORATE SEAL The Board of Directors may adopt, use, and at will alter, a corporate seal. Such seal shall be kept at the principal office of the Corporation. Failure to affix the seal to corporate instruments, however, shall not affect the validity of any such instrument. 10 SECTION 3. DIRECTORS' INSPECTION RIGHTS Every director shall have the absolute right at any reasonable time to inspect and copy all books, records and documents of every kind and to inspect the physical properties of the Corporation. SECTION 4. RIGHT TO COPY AND MAKE EXTRACTS Any inspection under the provisions of this Article may be made in person or by agent or attorney and the right to inspection includes the right to copy and make extracts. SECTION 5. ANNUAL REPORT The Board shall cause an annual report to be furnished not later than one hundred and twenty (120) days after the close of the Corporation's fiscal year to all directors of the Corporation and, if this Corporation has members, to any member who requests it in writing, said report shall contain the following information in appropriate detail: (1) The assets and liabilities, including the trust funds, of the Corporation as of the end of the fiscal year; (2) The principal changes in assets and liabilities, including trust funds, during the fiscal year; (3) The revenue or receipts of the Corporation, both unrestricted and restricted to particular purposes, for the fiscal year; (4) The expenses or disbursements of the Corporation, for both general and restricted purposes, during the fiscal year; The annual report shall be accompanied by any report thereon of independent accountants, or, if there is no such report, the certificate of an authorized officer of the Corporation that such statements were prepared without audit from the books and records of the corporation. ARTICLE 8 FISCAL YEAR SECTION 1. FISCAL YEAR OF THE CORPORATION The fiscal year of the Corporation shall begin on July 1 and end on the June 30 in each year. 11 ARTICLE 9 AMENDMENT OF BYLAWS SECTION 1. AMENDMENT Subject to any provision of law applicable to the amendment of Bylaws of public benefit nonprofit corporations, these Bylaws, or any of them, may be altered, amended, or repealed and new Bylaws adopted as follows: (1) Subject to the power of members, if any, to change or repeal these Bylaws under Section 5150 of the Corporations Code, by approval of the Board of Directors unless the Bylaw amendment would materially and adversely affect the rights of members, if any, as to voting or transfer, provided, however, if this Corporation has admitted any members, then a Bylaw specifying or changing the fixed number of directors of the Corporation, the maximum or minimum number of directors, or changing from a fixed to variable board or vice versa, may not be adopted, amended, or repealed except as provided in subparagraph (2) of this Section; or (2) By approval of the members, if any, of this Corporation. ARTICLE 10 AMENDMENT OF ARTICLES SECTION 1. AMENDMENT OF ARTICLES BEFORE ADMISSION OF MEMBERS Before any members have been admitted to the Corporation, any amendment of the Articles of Incorporation may be adopted by approval of the Board of Directors. SECTION 2. AMENDMENT OF ARTICLES AFTER ADMISSION OF MEMBERS After members, if any, have been admitted to the Corporation, amendment of the Articles of Incorporation may be adopted by the approval of the Board of Directors and by the approval of the members of this Corporation. SECTION 3. CERTAIN AMENDMENTS Notwithstanding the above sections of this Article, this Corporation shall not amend its Articles of Incorporation to alter any statement which appears in the original Articles of Incorporation of the names and addresses of the first directors of this Corporation, nor the name and address of its initial agent, except to 12 correct an error in such statement or to delete such statement after the corporation has filed a "Statement by a Domestic Non -Profit Corporation" pursuant to Section 6210 of the California Nonprofit Corporation Law. ARTICLE 11 MEMBERS SECTION 1. DETERMINATION OF MEMBERS If this Corporation makes no provision for members, then, pursuant to Section 5310(b) of the Nonprofit Public Benefit Corporation Law of the State of California, any action which would otherwise, under law or the provisions of the Articles of Incorporation or Bylaws of this Corporation, require approval by a majority of all members or approval by the members, shall only require the approval of the Board of Directors. 13 WRITTEN CONSENT OF DIRECTORS ADOPTING BYLAWS We, the undersigned, are all of the persons named as the initial Directors in the Articles of Incorporation of the West Covina Community Services Foundation, Incorporated, a California Nonprofit Public Benefit Corporation, and, pursuant to the authority granted to the Directors by these Bylaws to take action by unanimous written consent without a meeting, consent to, and hereby do, adopt the foregoing Bylaws, consisting of fourteen (14) pages, as the Bylaws of this Corporation. Dated: `i q Jame Toma, Dir for Core arshaw, Director Director To Lloyd Johnsq , Director CERTIFICATE This is to certify that the foregoing is a true and correct copy of the Bylaws of the corporation named in the title thereto and that such Bylaws were duly adopted by the Board of Directors of said Corporation on the date set forth below. Dated: �I q R salia Conde, Secretary 14 ATTACHMENT NO. 2 West Covina Community Services Foundation, Inc. Balance Sheet June 30, 2022 Cash $ 232,397 Accounts Receivable 70,015 Prepaid Expenses 11,989 Interest Receivable - Total Assets $ 314,401 Accounts Payable $ 23,823 Fund Balance 290,578 Total Liabilities and Fund Balance $ 314,401 West Covina Community Services Foundation, Inc. Changes in Assets and Liabilities June 30, 2022 Cash Accounts Receivable Prepaid Expenses Interest Receivable Total Assets Accounts Payable Fund Balance Total Liabilities and Fund Balance Beginning Balance $ 309,260 Ending Balance $ 232,397 70,015 11,989 Change $ (76,863) 70,015 11,989 $ 309,260 $ 314,401 $ 5,141 $ 2,903 $ 23,823 $ 20,920 306,357 290,578 (15,779) $ 309,260 $ 314,401 $ 5,141 West Covina Community Services Foundation, Inc. Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 2022 Revenues Interest $ Charges for Services 60,530 Other Revenues 103,782 Total Revenues 164,312 Expenditures FN - Taxes filings 10 PD - Misc Exp 3,909 FIR - Explorer Program 1,875 PS - Events, supplies, etc. 145,733 PS - Summer Concerts 21,939 CS - Senior Center - Supplies, etc. 6,625 Total Expenditures 180,091 Net Change in Fund Balance (15,779) Fund Balance - Beginning of Year 306,357 Fund Balance - End of Year $ 290,578 Pursuant to the bylaws, the Board of Directors is required to cause an annual report to be furnished no later than one hundred and twenty (120) days after the close of the Foundation's fiscal year (June 30) to all Directors of the Foundation. The annual report is required to contain the following information: . The assets and liabilities, including the trust funds, of the Foundation at the end of the fiscal year; . The principal changes in assets and liabilities, including trust funds, during the fiscal year; . The revenue or receipts of the Foundation, both unrestricted and restricted to particular purposes, for the fiscal year; and . The expenses or disbursements of the Foundation, for both general and unrestricted purposes, for the fiscal year. The annual report must be accompanied by either a report of independent accountants or a certificate of an authorized officer of the Foundation that such statements were prepared without audit from the books and records of the Foundation. The Finance Department is responsible for monitoring and preparing the Foundation's Annual Report. The funds are also listed in the City's Adopted Budget each year. The FY 2021-2022 Annual Report is included as Attachment No. 2. LEGAL REVIEW: The City Attorney's Office has reviewed this report and approved it as to form. Prepared by: Kelly McDonald, Public Services Manager Additional Approval: Stephanie Sikkema, Finance Director Fiscal Impact FISCAL IMPACT: Attached to this report is a Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance for the Foundation for Fiscal Year 2021-22. (Attachment No. 2). The report shows that a cumulative total of $164,312 in revenues were collected and $180,091 in funds were expended. As of June 30, 2022, the Foundation has a fund balance of $290,578. The financial information included in this report is preliminary, unaudited and subject to revision upon completion of the City's closing and audit. Revenues have been collected in a variety of ways. Donations are received from businesses and residents wanting to donate for a special cause or program (i.e., Veterans Memorial, Police Wall of Honor, Fire Explorer Program, Senior Services, Special Events, etc.). Funds raised at community events are also set aside in the Foundation to offset the costs to offer those individual programs (i.e., sponsorships at Summer Concerts, Spring Festival, etc.). Donated funds are utilized for the projects and programs identified prior to any City General Fund dollars being utilized. Without these donations, many of these programs and events may not have happened, because of the impact to the City's General Fund. Attachments Attachment No. 1 - West Covina Community Services Foundation Bylaws Attachment No. 2 - Annual Report CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness Achieve Fiscal Sustainability and Financial Stability West Covina Community Services Foundation, Inc. Financial Certificate June 30, 2022 I, Stephanie Sikkema, certify that these statements were prepared without audit from the books and records of the corporation. Additionally, the financial information included in this report is preliminary, unaudited and subject to revision upon completion of the City's closing and audit. Chief Financial Officer West Covina Community Services Foundation, Inc. ATTACHMENT NO. 1 BYLAWS OF West Covina Community Services Foundation, Incorporated A CALIFORNIA PUBLIC BENEFIT CORPORATION ARTICLE 1 NAME The name of this corporation is "West Covina Community Services Foundation, Incorporated." ARTICLE 2 OFFICES SECTION 1. PRINCIPAL OFFICE The principal office of the Corporation for the transaction of its business is West Covina City Hall, 1441 West Garvey Avenue, West Covina, 91790 located in Los Angeles County, California. SECTION 2. OTHER OFFICES The Corporation may also have subordinate offices at such other places, within the city of West Covina, where it is qualified to do business, as its business may require and as the board of directors may, from time to time, designate. ARTICLE 3 PURPOSES SECTION 1. OBJECTIVES AND PURPOSES This Corporation is organized and operated exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. The primary objectives and purposes of this Corporation shall be: (1J To provide services beneficial to the public interest by seeking to offer, improve, or expand services that enhance the quality of life for residents including, but not limited to: a. Recreational opportunities for residents, i.e., hiking, walking, and equestrian trails, aquatics, sports, parks and open space, classes, etc.; b. Public safety services, i.e., police and fire services to residents; C. Social services, i.e., nutritious meals for seniors and youth, case management, counseling, etc., for residents; and d. Building and improving City facilities and infrastructure. (2) Preservation of buildings, structures, documents, etc., of historical significance to the community. (3) To qualify and be more competitive when seeking to acquire grant funding to help provide such services to residents and in this way mitigate the financial impact to the City government. (4) To receive gifts of funds for specific purposes. (5) To pursue any other opportunities available that would benefit the public interest. ARTICLE 4 DIRECTORS SECTION 1. NUMBER The Corporation shall have five (5) directors and collectively they shall be known as the Board of Directors. The Board of Directors shall consist of the members of the West Covina City Council. The number and requirement that the Directors be City Councilmembers may be changed by amendment of this Bylaw, or by repeal of this Bylaw and adoption of a new Bylaw, as provided in these Bylaws. ►��i[�P►l�Z�Iri9 �:�` Subject to the provisions of the California Nonprofit Public Benefit Corporation law and any limitations in the Articles of Incorporation and Bylaws relating to action required or permitted to be taken or approved by the members, if any, of this Corporation, the activities and affairs of this Corporation shall be conducted and all corporate powers shall be exercised by or under the direction of the Board of Directors. Unless otherwise provided pursuant to amendment of these bylaws, voting rights in this Corporation shall remain vested solely in the Board of Directors. 2 SECTION 3. DUTIES It shall be the duty of the Directors to: (1) Perform any and all duties imposed on them collectively or individually by law, by the Articles of Incorporation of this Corporation, or by these Bylaws; (2) Appoint and remove, employ and discharge, and, except as otherwise provided in these Bylaws, prescribe the duties, of all officers, agents and employees of the Corporation; (3) Supervise all officers, agents and employees of the Corporation to assure that their duties are performed properly; (4) Meet at such times and places as required by these Bylaws; (5) Register their addresses with the Secretary of the Corporation and notices of meetings mailed or telegraphed to them at such addresses shall be valid notices thereof. SECTION 4. DESIGNATION OF CHAIRPERSON AND VICE CHAIRPERSON. The Mayor shall serve as the Chairperson of the Board during his or her term as Mayor, or until he or she resigns or is otherwise disqualified to serve, whichever occurs first. However, should the Mayor wish that another Board Member replace him or her the as Chairperson, then the Board shall elect another Board Member as the Chairperson. The Mayor Pro-Tem shall serve as the Vice Chairperson of the Board during his or her term as Mayor Pro-Tem, or until he or she resigns or is otherwise disqualified to serve, whichever occurs first. However, should the Mayor Pro-Tem wish that another Board Member replace him or her the as Vice Chairperson, then the Board shall elect another Board Member as Vice Chairperson. At no time shall the same person serve concurrently as Chairperson and the Vice Chairperson of the Board. SECTION 5. DUTIES OF CHAIRPERSON OF THE BOARD The Chairperson shall supervise and manage/direct the affairs of the Corporation. He or she shall perform all duties incident to his or her position as Chairperson and such other duties as may be required by law, by the Articles of Incorporation or the Bylaws, or which may be prescribed from time to time by the Board of Directors. The Chairperson shall preside at all meetings of the Board. Except as otherwise expressly provided by law, by the Articles of Incorporation, or by these Bylaws, he or she shall, in the name of the Corporation, execute such 3 deeds, mortgages, bonds, contracts, checks or other instruments which may from time to time be authorized by the Board of Directors. SECTION 6. DUTIES OF VICE CHAIRPERSON OF THE BOARD In the absence of the Chairperson, or in the event of his or her inability to or refusal to act, the Vice Chairperson shall perform all the duties of the Chairperson and when so acting shall have all the powers of, and be subject to all the restrictions of the Chairperson. The Vice Chairperson shall have other powers and perform such other duties as may be prescribed by law, by the Articles of Incorporation, or by these bylaws, or as may be prescribed by the Board of Directors. SECTION 7. TERMS OF OFFICE The term of office for each Director shall run concurrently with his or her term of office on the City Council. SECTION 8. PLACE OF MEETINGS Meetings shall be held at the principal office of the Corporation unless otherwise provided in these Bylaws or at such place within the City of West Covina, which has been designated from time to time by resolution of the Board of Directors. SECTION 9. REGULAR AND ANNUAL MEETINGS Regular meetings of the Board of Directors shall be held, as needed, on the first and/or third Tuesday of each month at 7:00 PM, to coincide with City Council Meetings. The annual meeting of the Board of Directors shall coincide with the annual meeting at which the City Council adopts the fiscal year budget. SECTION 10. SPECIAL MEETINGS Special meetings of the Board of Directors may be called by the Chairperson of the Board of Directors, or by any two Directors, and such meetings shall be held at the place, within the City of West Covina, designated by the person or persons calling the meeting, and in the absence of such designation, at the principal office of the Corporation. SECTION 11. NOTICE OF MEETINGS Noticing of all meetings shall be done in compliance with Govt. Codes 54954.2 and 54956 (Brown Act). Regular meetings shall be noticed at least seventy-two 2 (72) hours in advance of the meeting. Special meetings shall be noticed at least twenty-four (24) hours in advance of the meeting. Notice shall be given of any adjourned regular or special meeting to Directors absent from the original meeting if the adjourned meeting is held more than twenty-four (24) hours from the time of the original meeting. SECTION 12. QUORUM FOR MEETINGS A quorum shall consist of three (3) Directors. Except as otherwise provided in these Bylaws or in the Articles of Incorporation of this Corporation, or by law, no business shall be considered by the Board of Directors at any meeting at which a quorum, as defined above, is not present, and the only motion which the Chair shall entertain at such meeting is a motion to adjourn. However, a majority of the Directors present at such meeting may adjourn from time to time until the time fixed for the next regular meeting of the Board of Directors. The Directors present at a duly called and held meeting at which a quorum is initially present may continue to do business notwithstanding the loss of a quorum at the meeting due to a withdrawal of Directors from the meeting, provided that any action thereafter taken must be approved by at least a majority of the required quorum for such meeting or such greater percentage as may be required by law, or the Articles of Incorporation or Bylaws of this Corporation. SECTION 13. MAJORITY ACTION AS BOARD ACTION Every act or decision done or made by a majority of the Directors present at a meeting duly held at which a quorum is present is the act of the Board of Directors, unless the Articles of Incorporation or Bylaws of this Corporation, or provisions of the California Nonprofit Public Benefit Corporation Law, particularly those provisions relating to appointment of committees (Section 5212), approval of contracts or transactions in which a director has a material financial interest (Section 5233) and indemnification of directors (Section 5238e), require a greater percentage or different voting rules for approval of a matter by the board. SECTION 14. CONDUCT OF MEETINGS Meetings of the Board of Directors shall be presided over by the Chairperson of the Board, or, if no such person has been so designated or, in his or her absence, the Vice Chairperson or, in his or her absence, by the Director chosen a majority of the Directors present at the meeting. The Secretary of the Corporation shall act as Secretary of all meetings of the Board of Directors, E provided that, in his or her absence, the presiding officer shall appoint another person to act as Secretary of the Meeting. The provisions of the Brown Act (Gov. Code §54950 et seq.) shall apply to the conduct of meetings of the Corporation. Meetings shall be governed by Roberts's Rules of Order, as such rules may be revised from time to time, insofar as such rules are not inconsistent with or in conflict with these Bylaws, with the Articles of Incorporation of this Corporation, or with provisions of law. SECTION 15. NON -LIABILITY OF DIRECTORS The Directors shall not be personally liable for the debts, liabilities, or other obligations of the Corporation. SECTION 16. INSURANCE FOR CORPORATE AGENTS Members of the Board of Directors and Officers of the Corporation are insured under the City's umbrella insurance policy for liability caused or incurred while acting within the scope of their duties as Members of the Board of Directors and/or Officers of the Corporation. SECTION 17. PREMATURE VACANCIES ON BOARD Whenever there is a vacancy in the office of one of the at -large directors whether by reason of death, resignation, removal, disqualification or otherwise, the vacancy shall be temporarily filled by the Community Services Director until the vacancy is filled by majority vote of the remaining board members. ARTICLE 5 OFFICERS SECTION 1. NUMBER OF OFFICERS The officers of the Corporation shall be a President, Secretary and Chief Financial Officer. The City Manager shall serve as President, the City Clerk shall serve as the Secretary and the Finance Director shall serve as the Chief Financial Officer. Any number of offices may be held by the same person, except that neither the Secretary nor the Chief Financial Officer may serve concurrently as the President, Chairperson or Vice Chairperson of the Board. 0 SECTION 2. QUALIFICATION AND TERM OF OFFICE The City Manager, City Clerk and Finance Director shall serve as President, Secretary and Chief Financial Officer, respectively, until he or she resigns or is removed by a majority vote of the Board of Directors, or is otherwise disqualified to serve. whichever occurs first. SECTION 3. SUBORDINATE OFFICERS The Board of Directors may appoint such other officers or agents as it may deem desirable, and such officers shall serve such terms, have such authority, and perform such duties as may be prescribed from time to time by the Board of Directors. SECTION 4. VACANCIES Any vacancy caused by the death, resignation, removal, disqualification, or otherwise, of any officer shall be filled by the Board of Directors in accordance with these Bylaws and applicable law. SECTION 5. DUTIES OF PRESIDENT The President shall be the administrative head of the Corporation and its affairs and he/she shall operate under the direction and control of the Board of Directors except as otherwise provided by law, by the Articles of Incorporation, or by these Bylaws. He/she shall be responsible for the efficient administration of all the affairs of the Corporation which are under his/her control. He/she shall prescribe such administrative rules and procedures as he may deem proper or necessary for the general conduct and operation of the Corporation's affairs under his control. He/she shall perform any and all duties imposed on him/her by law, by the Articles of Incorporation, by these Bylaws or by the Board. Upon the request and authorization of the Board, the President may enter into any contract, or execute and deliver any instrument, in the name of and on behalf of, the Corporation. The President shall supervise all agents of the Corporation to assure that their duties are performed properly. He/she shall meet at such times and places as required by these bylaws. It shall be the duty of the President to recommend to the Board the adoption of measures he/she deems necessary for the efficient operation of the Corporation. Unless provided for in SECTION 6. DUTIES OF SECRETARY The Secretary shall: 7