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HomeMy Public PortalAbout1992-09-23 LOCAL DEVELOPMENT COMPANY AGENDA � � � �. . ... �,� .� , LYNWOOD LOCAL DEVELOPMENT COMPANY BOARD OF DIRECTORS wednesday, september 23 1992 I R� C EBV E D CITY OF LYNWOOU I 3:00 p.m. CITY CL�R;(S OF�ICE city council chambers SEP.1 71992 Lynwood City Hall 7�8�9i10i11 � � P � 11330 suiiis Road i1�t1i2i3 4$�6 Lynwood, CA. 90262 � LEIGHTON IIULL BERNARD LAKE PRESIDENT VICE PRESIDENT ERNEST TOPPS ALFREDDIE JOHNSON SECRETARY/TREASURER MEMBER CELIA ARROYO MEMB �R I. OPENING CEREMONZES: A. CALL TO ORDER � 1. Flag Salute 2. Roll Call I � B. Certification of Agenda Posting � I I II. APPROVAL OF MINUTEB - July 1, 1992 ( I ZII. INFORMATIONAL ITEMB I I � IV. ITEMS FOR CONSIDERATION: � A. AMENDING BDAP GUIDELINES � i Per request by Board, staff has prepared a staff report j reviewing portions of BDAP Guidelines that need to be � amended. This report emphasises on the Monitoring ' Procedures found in the section titled "Processing of � Request For Assistance." The monitoring of loans per ! BDAP Guideline is said to be "Extreme and Unnecessary." I B. ADDITIONAL AMENDING OF BDAP GUIDELINES I i Staff has determined that the BDAP Guidelines are vague � in some aspects and need be amended for clarity. The � area that needs reconstruction is found on the loan I section of DESCRIPTION OF ASSISTANCE. The interest shown (3$) is not the extent of our interest rate � range. A report has been prepared and a proposal of amendment to this section has been submitted for review and consideration. i � � I � � � ,�: C. LLDC'S CURRENT BALANCE,SHEET FOR REVIEW AND CONSIDERATION A Balance Sheet indicating the financial position of the LLDC has been prepared and submitted herein. D. LLDC BY-LAWS LLDC's current By-Laws need to be amended. Amendment is to be focused primarily on the election process. The ' concern is the neglect of inention actions pertaining to absentee ballots. Staff is requesting a review by Board members so that we may receive direction as to changes and what is to be amended. V. WARRANT REGISTER Invoices from Security Pacific Bank for the payment of the ' annnual fee for the administration of LLDC loans are as follows: Shook, A. ($201.31) VI. STAFF ORALS ' A. OCTOBER ELECTIONS Due to the absence of past staff, the new staff is unaware of election procedures. Staff is requesting an � outline of the ceremony and what part staff takes in the � preparation of such an activity . VII. BOARD ORALS � VIII. ADJOURNMENT ' i With no additional items for consideration, adjournment to the next scheduled meetin,q. ; � , ' i ! i i i � . i . � � �\, . LYNWOO� LOCAL DEVELOPMENT COMPANY BOARD OF DIRECTORS Wednesday September 23, 1992 3:00 p.m. City Council Chambers Lynwood City Hall 11330 Bullis Road Lynwood, CA. 90262 LEIGHTON HULL BERNARD LAKE - PRESIDENT VICE PRESIDENT ERNEST TOPPS ALFREDDIE JOHNSON � SECRETARY/TREASURER MEMBER CELIA ARROYO MEMBER i • I. OPENING CEREMONIES: { A. CALL TO ORDER r � 1. Flag Salute 2. Roll Cali I � B. Certification of Agenda Posting II. APPROVAL OF MINUTES • July 1, 1992 III. ITEMS FOR CONSIDERATION: , A. AMENDING BDAP GUIDELINES Per request by the Board, staf£has prepared a staff report reviewing portions of the BDAP Guidelines which need to be amended. This report emphasizes the Monitoring Procedures found in the section titled "Processing of Request for Assistance". The monitoring of loans per the BDAP Guidelines is said to be Extreme and Unnecessary". B. ADDITIONAL AMENDING OF THE BDAP GUIDELINES Staff has determined that the BDAP Guidelines are vague in some aspects and need to be amended for clarity. The area that needs reconstruction is found in the Loan Section of Description of Assistance. The interest shown (3%) is not the extent of our interest rate range. A report has been prepared and a proposal of the amendment to this section has been submitted for review and consideration. � I _ � s� � C. LLDC BALANCE SHEET FOR REVIEW AND CONSIDERATION A Balance Sheet indicating the financial position of the LLDC has been prepared and submitted herein. D. LLDC BY-LAWS The LLDC current By-Laws need to be amended. Amendment is to be focused primarily on the election process. The Board indicated it's concern regarding the Amendment which fails to report absentee ballots. Staff is requesting a review by the Board Members to receive direction regarding the proposed changes. IV. WARRANT REGISTER Invoices from Security Pacific Bank for the payment of the annual fees for the administration of LLDC loans are as follows: Shook, A. $201.31 V. STAFF ORAI.S A. OCTOBER ELECTION Due to the absence of past staff, present staff is unaware of election procedures. Staff is requesting an outline of the ceremony and what part staff takes in the preparation o£ such an activity. VI. BOARD ORALS I � VII. ADJOURNMENT � � With no additional matters for consideration, adjournment to the next ' scheduled meeting. 1 � � I � � i j i � C:\WP51\FILES\LLDCOVER.WYF\SF � � � �� �) LYNWOOD LOCAL DEVELOPMENT COMPANY MINUTES July 1, 1992 LLDC Board Members Present: Chairman Leighton Hull Vice Chairman Bernard Lake Ernest Topps Absent: Celia Arroyo Alfreddie Johnson City Stafi Present: Bruno Naulls Administrative Analyst III Susan Fowler, Administrative Aide OPENING CEREMONIES: Chairman Hull opened the meeting at 3:33 p.m. � I ; Roll call was taken, with Celia Arroyo and Alfreddie Johnson being absent. � i - I Mr. Naulls stated the Agenda had been posted in accordance with the Brown Act. � i APPROVAL OF MINUTES: � i Mr. Lake made 2 corrections to the minutes regarding names incorrecdy inserted and Mr. Hull , asked to strike a word from the minutes. A motion was then made by Mr. Lake to accept the ; minutes of May 9, 1992, as corrected. Motion seconded by Mc Topps and passed. ITEMS FOR CONSIDERATION: � A. BDAP GUIDELINES AYter some discussion of the current Guidelines regarding possible over-monitoring of I approved loans, Chairman Hull asked to have this item re-agendized for further discussion and , corrections. - B. PARTICIPATION AGREEMENT ADDITION ' Mr. Naulls presented to the Board a proposed addition to the Participation Agreement of the LLDC. Chairman Hull commended Mr. Naulls for his recommendations, but it was the Board's overall feeling that this proposal would take away from the good faith the LLDC exercises in granting loans and would be considered a form of excessive monitoring. ' _ , j I � � s� �� C. LLDC BALANCE SHEET Mr. Topps asked if the balance sheet included anticipated interest and if it had to be accepted as a general balance sheet. Chairman Hull asked Mr. Topps if he wanted it different. Mr. Topps stated he did not, but just had these questions. Mr. Topps also wanted to know why there was a difference in the amounts of the latest two loans granted by the LLDC. It was explained by Mc Lake that the difference was in the interest rate and time frame of the loans. D. WARRANT REGISTER A motion was made by Mc Lake and seconded by Mr. Topps to accept the Warrant Register as submitted. Motion passed. STAFF ORALS: A. MOUTH OF THE SOUTH Mr. Naulls told the Board that Mr. Spears upplication and forms are still incomplete, but a letter was sent to Mr. Speazs hi-lighting the neceslities to.further his processing. B. LLDC GRANTS TWO LOANS Mr. Naulls congratulated the Board on the granting of the last two LLDC loans. BOARD ORALS: Mr. Hull asked if any further investigation had been attempted by Mr. Alfreddie Johnson into � other means of tinancing the LLDC. No one was certain. Mc Hull also asked Staff if there has i been any progress towazds replenishing the LLDC'S near depleated funds. Mr. Naulls stated that ; no funding by the City can be exercised until an audit of the LLDC is completed. Mc Lake ' reminded everyone that the elections are to be held in August, but little time remains to amend ' the By Laws. Afrer some discussion regarding the busy schedules of the Board Members in July and August, it was moved by Mc Lake to move che election back to October 28, 1992. It was ' decided to amend the By-Laws at the meedng of September 23, 1992, leaving September 30, 1992, open for further discussion and amendmen�s, if necessary. ' ADJOURNMENT After the Board Members expressed their willingness to meet during the months of July and August as necessary, the meedng adjourned at 4:15 p.m. to the next scheduled meeting oY September 23, 1992. � � � I I � c:\wpVldcmnts�st , I � I , � . • ITEM A • DATE: September 23, 1992 , T0: Honorable Chairman and Members of the Board . FROM: Bruno Naulls, Administrative Analyst III SUBJECT: AMENDING BDAP GUIDELINES Puroose: To revise areas of concern (i.e, Steps 4& 6 in the Processing of Requests for Assistance) and to clarify information on loans (found in Description of Assistance under Section titled Loans). Backaround: It was brought to the attention of staff that the prescribed form of monitoring per the BDAP Guidelines is possibly too harsh in method. Reasoning was that once the owner of the business concerns loan application is approved by the,LLDC, they must have first completed the following requirements: l. Submit a BDAP application form 2. Submit a business plan 3. Submit a profit/loss statement (for the past two years) 4. Submit an itemized list of needed equipment, furniture, trade fixtures, or trade stock with cost estimate 5. Show reasonable need for the loan 6. Staff review of information provided by applicant � 7..LLDC evaluation and approval It is felt that once these requirements have been met and the.loan and loan amount have been approved, further monitoring (aside from � assurin the loan is ! J paid back) is not needed. Analvsis: � Upon review of Board views on the monitoring process, staff ; concludes that the excessive monitoring is not needed. The � applicant has already convinced the LLDC that it is in need of a � loan. It has been established by the LLDC and staff that the i applicant is an established business proprietor in Lynwood and has a legitimate need for assistance. Loans given by the LLDC are in good faith that the applicant will use the money as prescribed. Once the loan is allocated, the major concern becomes the loan payment. It has already been proven that the money is needed by � the applicant to further progress in business. i Conclusion: Staff realizes the need for trust within the business industry. Business transactions should be handle with care and the utmost respect for the business owners within the community. Taking these factors into consideration, staff finds it proper to take action to make the necessary adjustment to the BDAP guidelines. , Recommendation: � Staff respectfully request that the Board carefully examine the BDAP Guidelines under Processing of Request for Assistance and amend as Board sees needed. � BDAP Guidelines attached hereto for review. i wpA�mo-rpt11053193Vbn • �` . ITEM B. Date: September 23, 1992 To: Honorable Chairman and Members of the Board From: Bruno Naulls, Administrative Analyst III Subject: AMENDING BDAP GUIDELINES WITH EMPHASIS ON LOAN GUIDELINES: I.E.� INTEREST RATES, AMORTIZATION, AND ELIGIBLE EXPENDITURES PURPOSE To make clear that loans provided at 38 with amortization periods for 7 years is not a fixed rate, but is the minimum percentage and the maximum amortization for loans by LLDC. AACKGROUND ,.. In the past up to now the LLDC's BDAP loan description of assistance read as thus: LOANS: The BDA Proqram provides three percent (38) loans with amortization not to exceed seven (7) years. All loan requests must be submitted to the LLDC, which will then be submitted to an approved lender. 1. MaximLm r.oan Amo�nt The maximum loan amount shall be � limited to $20,000, includinq the � amount necessary to cover the cost I of equipment, trade fixtures and inventory or trade stock. � 2. Termg I � Amortization of the loan shall not � exceed seven (7) years. 3. Loan Costa ! The bank may charge to the loan the � cost of loan origination fees. ! I ANALYSIS I Upon review of information previously stated, staff feels i that (due to loans previously dispersed by LLDC) there is ' room for speculation by loanees if the section on loans is carefully read. It states loan to be provided at 38 interest. This statement along with the brief in which � the statement was abstracted would compel the loanee and/or reader to believe this is a fixed rate. Since this is a falsehood, it would behoove staff and board members to agree upon amending the clause in question and make it self explanatory whereas there is no confusion. � s �� Page 2 CONCLUSION Staff brinqs this to board members as a matter of importance and is therefore prepared to bring about the amendinq of this clause in the BDAP description of assistance. RECOMMENDATION In light of information brought to board's attention, staff respectfully requests that the amended description of assistance (loan portion) read as thus: LOANS The BDA Program provides loans wiih rates ' ranging from a maximum eight point five percent (8.58) down to a minimum three percent (38) (rate based upon individual case/financial evaluation). Amortization not to exceed seven (7) years. All loan requests must be completed fully and submitted to the LLDC, which will then be submitted to an approved lender. 1. Max � m�m L•oan Amo �nt The maximum loan amount shall be limited to $20,000, including the amount necessary to i cover the cost of equipment, trade fixtures ; and inventory or trade stock. 2. �g i Amortization of the loan shall not exceed i seven (7) years. 3. Loan oq q ' I The bank may charqe to the loan the cost of � loan oriqination fees. � ' i I I i � . ATTACHMENT TO BE USED �. WITH IT�MS A. & B. BII82NE88 DSVBLOPlSENT 1►88IBT7►NCB PR0l3RAM (HD71} (iENERAL GDIDBLINEB The Husiness Development Assistance Program (BDA) is a financial assistance program administered by the Lynwood • Local Development Company (LLDC). PROGR7IM H]►CICOROQND The Business Development Assistance Program has been adopted by the LLDC to provide technical and/or financial assistance to businesses wishing to expand in, or relocate to, the City of Lynwood. Primary fundinq for the BDA Program is from the City of �� Lynwood's Community Development Block Grant (CDBG) Program. Although the LLDC anticipates continuing support from CDBG funds, it shall seek to expand and diversify its financial resources. ` DESCRIPTZON OF J►88I8TANC& The BDA Program can make available, to qualified applicants, below-market interest loans and grants, and technical assistance as described below: LO!►N8 : i e BDA Program provides three percent (32)"loans with ' amortization not to exceed sevan (7) years. All loan i requests must be submitted to the LLDC, which will then � be submitted to an approved lender. , i 1. Maximum Loan Amount � The maximum loan amount shall be limited to . i 520,000, includinq the amount necessary to cover the cost of equipment, trade fixtures ; and inventory or trade stock. 2. e s I � Amortization of the loan shall not exceed seven (7) years. , 3. Loan Costs � � I The bank may charge to the loan the cost of � loan origination fees. � ! i � ' � � � , GRANPS• The qrant component is designed to provide assistance to local businesses to cover the cost of equipment, trade fixtures, and inventory or trade stock. These funds shall be used only in those cases where the loan proceeds are not sufficient to cover the cost of the request for assistance. As such, the qrant should be considered as "gap financing" only. 1. Maximum Grant Amount The maximum grant amount per participant shall be $2,500. 2. �ocumentation To qualify for this qrant, a participant must provide appropriate documentation of planned expenditures (such as purchase orders or invoices), showinq the use of funds, estimate of costs, and name and address of vendor or supplier. $LIf3IBILZTY REOIIIREMENTB Proqram assistance will be provided to those businesses which provide evidence of need. Preferential treatment will be given to businesses which will provide additional jobs to the community. Applicants must have their business located in the City of Lynwood and must have been in business for at least one year prior to submittinq their application to the LLDC. BEQQIRED DOCIIl�IEIiT�TION In order to document neads, the Pollowinq.must be submitted: � � - Financial statements for the business j - Personal financial statements � - Business and perso�al tax returns � - I�tter outlininq request i EIiPLOYMENT DpCQ1iL+NT7►TION � I A list of current employee's names, position title, ' hourly wage and social security numbers and a list of new ! jobs to be created or returned must accompany the loan request. � i I , � , s BLI(iIHLS EEPENDITIIREB � All costs directly attributable to the costs of � equipment, trade fixtures and inventory or trade stock are eligible, includinq loan oriqination fees and any other costs associated with the preparation of loan documents. - PROCESSINCi OF REQOE8T8 FOR A88I8TANCE � Step 1: Application Submittal � Applicants must complete and submit a BDA Program application form, a business development plan, a balance sheet, profit and loss statements for the precedinq two years, and an - itemized list of needed equipment, furniture, trade fixtures or trade stock to the LLDC with approximate costs. Step 2: Staff review and Determination of Eliaibilitv After submittal of the application, staff will review the financial information to determine the applicant's level of need and the estimates for reasonableness of costs. Step 3: Securinq the Financinq After the application has been approved by staff, it will be submitted to the LLDC for evaluation. The LLDC will approve or deny the loan or grant request based on its evaluation. The LLDC may also approve an amount which is —� less than the amount requested. Step 4: Obtainina Bid and Vendor/Supolier Selection Upon approval by the LLDC, staff will assist participants in obtaininq at least three (3) I . bids from vendors/suppliers. Staff will then � review bids for costs and tha participant will � choose the lowest reasonable bid. Step 5: PAtticipation Agreement � i After the selection of a vendor/supplier,.the � participant will execute an aqreement with the i , LLDC and the applicable loan documents. I I Step 6: pisbursement of Loan and/or Grant Proceeds ; \. /� Payments will be made directly to the selected � �� and approved vendor/supplier; not to the participant.* This payment will occur upon ' verification of expenses incurred, as evidenced by the participant's submission of purchase � orders, invoices, etc. � •AmenCed August 27, 1986, to �llai re-a � p pprovcd loan�proceeda to yo co an applicant as reimbursmimt of a � pre-approveE purt�ase. � I i I GENE PIIRTICIPI►TION N8 S E8 . All applicants who participate in the Business Development Assistance (BDA) Program must abide by all Program rules and regulations, which include those listed below: - Applicant(s) must keep all appointments. - Applicant(s) must a12ow at least three (3) vendors/suppliers to submit bids. - Applicant(s) must select the lowest reasonable bid. - Applicant(s) must siqn a LLDC Participation Agreement prior to signinq loan documents. - Applicant(s) must present vendor/supplier purchase orders, invoices, etc. MANAGEMENT A88Z8TANCE/CON9IILTZNCi PROGRAM Consultinq services are provided to Lynwood Businesses via the Los Angeles County Economic Development Corporation under contract to the LLDC. A firm who documents needs as outlined in the loan ' program will generally qual for free consulting services. However, if a firm does not meet the above-mentioned eligibility requirements, the firm may obtain these below market cost services on a fee reimbursement basis or deferred payment basis, upon execution of proper agreements between the firm and the LLDC. I/WS TH8 IINDSRBI(iNED� CBRTIPY TH71T I/*S HJ1VB READ AND ' IINDERET7IND THE 7►SOVE (iIIIDBLIN88. Z/RE aGRBE TO 718IDB HY TH8 RBQIIIRSLIBNTB 11ND'RE880NSI8ZLITI88 OQTLINED IN THE � f3IIIDELINSB. ; . I I/WE 71L80 CERTIPY T871T I/AS H71V8 BEEN GIVEN 7► COPY OF THE PROQR711I GQZDBLIN88. I i BIGNATIIRS OP 11PpLIC]1NT D71TB � I I I SIGNATIIRE OF 71PPLIC7INT D71T8 � � i � ' f:\redevelp\ltdt\LIOCDda\11069%ef i r � � � � ITEM C. � . � DATE: September 14, 1992 TO: HONORABLE CHAIRMAN AND LLDC BOARD MEMBERS BY: Bruno Naulls, Administrative Analyst IZI Community Development Department LYNWOOD LOCAL DEVELOPMENT COMPANY (LLDC) BALANCE SHEET Septembet 23� 1992 Assets Cash Saving ...............5 8,252.24 Saving ................17,501.28 Checking ..................30.38 Total Cash Balances $25,578.90 Outstan8ing Loan Salances Smith .................$ 878.86 Lang ..................10,547.27 Shook .................17,578.36 Johnson ...............13,423.18 Austed ................14,179.01 Ramos .................19,553.53 Moon ..............'....19,704.08 Total Outstanding Loan Balances $95,g69,2g I ! Total Cash & Loan Balance $121,653.19, � Accounts Receivable (Monthly Debt Payments) � Smith ..................$110.78 � Lang ....................264.26 i Shook ...................266.83 Johnson .................265.94 I Austed ..................496.19 � Ramos ...................318.73 Moon ....................284.46 � i Total Monthly I Payments Receivable 2,007.19 2,007.19 Total Capital Assets.........$123,660.38 i i Liabilities Accounts Payable.... .... . .................$350.00 (service fee to Security Pacific Bank) ; Tax Payable .................................... .5150.00 ' � Total Liabilities ......................$500.00 , LLDC�s Equity LLDC, capital Equity...... ................$50,063.10 � � f:\redevelp\lldc\belance\062091�sf � i I I , I f I s ITEM D. . BY-�AIYS OF LYNw000 LOCAL DEVELOPMENT COMPANY ARTICLE I Name The name oP this corporation is the Lynwood Local Development Company. ARTICLE II Principal Office The Board oP Oirectors shall establish the principal executive oPfice ot the corporation in the City of Lynwood, County ot Los .�ngeles, State of Callfornia. The company must maintain an accessible place of business open to the public during normal busi- ne,ss hours -and a separately listed telephone. : ARTICLE III Membership I Section I. MEMBERS. Membership shall be extended to those who I are concerned with the economic development of the Lynwood community. � Each such member shall be entitled to one vote in the conduct of the � aPfairs of the membership. of the corporatlon, and be eligible for � election as a Director and officer of the corporation. A member of corporation may be en otPicer or employee ot the City ot �ynwood � or any agency thereof. The corporation must have at least twentv- ' rive (25) members at all timea. -- � ' � i i Section 2. TERM OF MEMBERSHIP. Members shall serve inde`initely,_ � unless membership is terminated in accordance with 5ection 3 of this ' •4rticle :II. ` Section 3. TERMINATION OF MEMBERSHIP. The membership of any I member shall terminate upon the occurrence oP any of the following events: , (a) The resignation or death of the member. � (b) The determination by the Board of Directors or a I committee designated to make such determination aPter compliance witn the provisions oP Section 5341 oP the Nonprofit Public Benefit , Corporatior, Law that the continuation of the person's membership i is ir.imical to the purposes and the requirements of the corporation. _1_ . . � � -; Sec�io❑ 4. TR:�IvSFrR Or 1tE;:BERSHI?, �;o ;nember may uaas�er a:�ec�bership or any right arising =rom , i�. �11 :i3h�s of inecabership cease on the member's death. dRTICLE ?V LIEETINGS OF :dE:S3ERS Section 1. PL�e�CE OF SIEETIVGS. lleetings of inembers shall be held at aay place ia the City of Lynwood designated by the Board of Direczors. Section 2. �'WdL �fEET'IVG. T�e annual meetiag oP members sha11 be held on the first Tuesday of :Say each year, ualess the Board of Directors tixes aaother date aad so nocifies the members as provided in Seetioa 4 04 this Article IV, dt each annual meeting Directors shall be elected aad any other propeY business may be transacted. Sectioa 3. SPECIdL MEETIVGS. Special meetiags o1 members _or any purpose may be called at any time by a ma,jority of Directors, or by a majority oY the members. Plotices stiall be given at least 2=1 hours prior to the meetiag according to the rules set fortti in article V. Notice of aay special meetings shall set forth the busiaess to be traasacted. *to other busiaess shall be considered at such special meecings. j 9ection 4. ;10TICE OF 11ESfBERS' �EETIVGS. alI aotices of � �eetings oP members shall be 3ent or otherwise given ia accordance I Nith Sectioa 5 of the Article IV aot less than 10 aor more thaa � 90 days beiore tbe date ot the meeting. The notice stiall speci2y � the place, reason, date aad hour oi the meeting. oP any � meeting at �hich Directors are to be elected shall include the name of any nomiaee or aominees whom ttie Board intands to present Eor � election. IS action is proposed to be takea at any meeting Por ' aoorovaProposal,proposal, the notice shall also state the general aa�ure i o: the Section 5. ?1e�.�NER OF GIVIVG YOTIC�S. ,iotices of each � neetiag oY members, whether regular or special, shall specify �tie � �ate, olace and hour oY the meetiag and shall be given to eac� me�be: by the Secretary-Treasurer, either personally or by mail or telegrar.., ; ad�ressed �o such member at his address apoearing oa the records oi i ��e corporatioa. " Section 6. QUORUII. One-halP (1/2) of the members entit?ed ' �o vote shall constitute a quorum for the traasaction of bLSiness ; �- a�eecing of the members. i I ; + � _�_ _ _... � � ! i � I ' � � � . ' ' � __ • ... ... Section -. :�IILES OF ORDER. Exc=pt where otherwise provided :a ' these bylaws, all meetings of the membersh:p shall be conducted accordiag Lo ttie chen current edition of Robert's 3ules o� Orde:. Section 8. VOTZ;�'G. Voting may be by voice or ballot, provided ��at any election of Directors be by ballot, ARTICLE V DIRECTORS Section 1. POWERS. The business.and aYYairs oi the corpora- tion shall be managed aad all corporate powers shall be exercised, by or under the direction oY the Board of Directors, subject to the orovisioas o2 the CaliYornia NonproPit Public BeneYit Corporation Law and aay limitatioas ia the articles oP incorporation and these bylaws relating to actioas required to be approved by the members. �4ithout prefudice to such general pomers, aad subject to the same limitations, the IIirectors shall have the poaer to: (a) Select and remove all agents and e.mployees oP the corporation; prescribe any powers aad duties Yor ttiem that � are coasistent with law, with the articles ot iacorporation, and with these bylaws; fis any compensation; and require Yrom ttiem ' security 2or laith2ul service. I ' (b) Change the principal executive otiice or � other oYfice Prom one locatioa to another; designate any place Por ± the holding o2 aay members' meetings, including aanual meetings; and set the dates Sor the liscal year o2 the corporatioa.' ; (c) Adopt, make and use a corporate seal; presc::5e � the form oY certiEicates oY membership and alter the Porm of the ' seal and certiYicate. , (d) Borrvw money and incur the indebtedaess oa i �eha11 0! the corporation, and cause to be executed aad delivered � :or the corporation's purposes, ia the corporate name, promissory � aotes, bonds, debeatures, deeds oY trust, mortgages, pled3es, hypothecaiions and other evidences oY debt securities. i Section 2. QUALIFICaTION �vD vUyIBER OF DIRECTORS. Each ilirector shall be a member of the corporation and, if a person ceases to be a member of� corporation, such persoc shall alsc ' cease to be a Director of the corporatian. The number of pirec- I tors of the corporstion shall be seven (7). vo publicly elected ; of�ical may serve on t!^� 3oard of Directors. At least five (S) Direc:ors must be maintained at a11 times. � i -3- i I -- - . .. � • . ' � � � �- Section 3. ELECTION �NO TERt4 OF OFFICE OF DIRECTORS. The Directors shall be elected at each annual meeting of inembers but, if any such annual meeting is not held or Directors are not elected there at, the Directors may be elected at any special ,reeting af members held for that purpose. Members shall be given a reasonable means oP nominating persons for election as Oirectors, and all nomineea shall be given a reasonable opportunity to communicate to the members, and solicit votes. All Directors shall hold o`fice until their respective successors are elected. Election oP Directors shall be by ballot. Every member entitled to 'vote at any election of Directors shall have seven (7) v,otes to use as that member sees `i*_. The seven (7) candidates receiving the highest number of votes sha11 5e elected. Section 4. VACANCIES. �lny vacancy in the Board of Directors caused by the death or resignation of any Director, or in any other manner, may be Pilled by a mafority oP the remaining Directors. IP the Board oP Directors accepts the resignation oP a Director tender- ed to take ePfect at a tuture time, the Board shall have power to elect a successor to take office when the resignation is to become ePPeCtive. Section 5. REMOVA� FROM OFFICE. Any member of the Board of Directors may be removed Prom oPFice upon the vote of two-thirds (2/3) of the Board oP Directors or the membership, and shall be remuved Prom oPfice ±° absent from three (3) consecutive meetings without the official excuse oP the Chairman of the Board. I I Sectlon 6. RECULAR MEETINCS. Immediately Pollowing each annual meeting of inembers, the Board oP Directors shall hold a regular meeting for the purpose oP organization, and the transaction � oP other business. Notice oP this meeting shall be held without � call at such time as shall Prom time to time be Pixed by the Board oP Directors. In addition, the Board shall meet.a minimum oP every two months to transact corporation business. � , Section 7. SPECIAL MEETINCS. Special meetings oP the Board oP Directors for any purpose or purposes may be called at any time � by the Chairman of the Board, the Vice-Chairman, the Secretary- � Treasurer, or any two (2) Directors. Such meetings of the Board of ' Directors shall be held at the principal executive ofPice oP the ' corporation or at any place that has been designated in the notice oP the meeting. i i i ' _ � -- -• , i I � ,� . � ' � `" • �_; '� � � - ' Section 8. :ICTICE. Votice of time and place oY special neetings sha11 be delivered personally or by telephone to each Director or sent by first class mail or telegram, addressed to each Director aL the Director's address as it is shown on the :ecords oP the corporation. Sectioa 9.�C3S SY' CONF'ERENCE CaI.I.S. :�ay meeting, regular or special, aay be held by conYerence telephoae or similar communi- catioa equipment, so long as all D•irectors participating in the meecing caa hear one another, and all such directors shall be deemed to be preseat ia person at the meeting. Section 10. QIIO&IIJ4. A ma,joritp of the auLhorized number o� ' Directors shall constitute a quorum for tbe transaction of business. 3 meeting at which a quorum is initially present may continue to traasact business notwithstaading a withdrawal ot ¢irectors, if any actioa taken is approved by at least a ma,jority oP the requ�red quorum for that meeting. Section 11. WAIVER OF vOTICE. The transactions oP any meetiag of the Board oY Directors, however called and noticed or wherever , he1d, shall be as valid as though taken at a meeting duly held after i a regular call aad notice, iY a quorum is present and iP, either be- fore or alter the meeting, each ot the Directors aot preseat sigas a ' wr.ittea maiver o1 aotice, a conseat to holdiag the meetiag, or an � approval oY the minutes. The waiver of notice or consent need � aot specify the purpose ot the meetiag.....All.such Waivers, consents and approvals shall be liled with tbe corporate records or made a � oart ot the miautes oi the meeting. Notice o! a meeting shall � also be deemed given to any D irector who attends the meeting without protesting be2ore or at its commeacemeat about the lack oi adequate notice. , ARTICLE VI ! COMb1ITTEES � Section 1. C06!l�ITTEES OR DIRECTORS. The Board of Directors ; may, by resolution adopted by a ma�ority o� the•Directors then in ; ofPice, designate one or more committees, each coasisting oP two or more Directo:s, to serve at the pleasure oP th� Board, i ARTICLE VII � -- I OFFICERS _ i Section 1. OFFICERS. All oYYicers oi the corporation stiall ; be membe�s of ttie corporation and membe*s of the Board oi Direccors. � ''_'he oPticers oE the corporation sh211 be a Chairman of the Boa:d o_ � �ir=ctors, Vice Chariman of the Board of Di:ectors, and Secreta:y- � Treasurer, One oerson may hold t�vo or more ofPices, e�ccept tha� the o�fices oi Chairman and Sacretary�freasurer may ❑ot be coobiaed. I -�- I i � i i , � �� Section 2. rLECTION OF OFFICERS. The oificers of ttie cor�ora- *_ion sha11 be ctiosea aanually by the Board oP Directors and cach sha11 hold office uatil he stall resign, be removed, or otaerwise d:s- qualiPied to serve, or his successor shal? be elected and quali:ied. SecLion 3. CHAIRbiAN OF THE BOARD. The Chairman shall.be the chief executive of2icer of the �orporation and shall, generally supervise, direct and control the business and tbe officers of the corporation. He shall preside at all meetings of the members aad at all meetings of the Board. He shall tiave such other powers and , duties as may be prescribed by the Board oi Directors or the bylaws. Section 4. VICE CHAZR1iAN. In the absence or disability of the Chairman, the Vice Chairmaa shall periorm all the duties oP the Chairman and when so acting shall have all the powers of and be subject to all the restrictions upon the Chairman. The Vice Chairmaa shall have such other powers and pertorm such other duties as from time to time may be prescribed by the Chairman, the Board of DireCtors or the bylaws. Section 5. SECRETARY-TREaSIIRER. Tbe Secretary-Treasurer shall be both ttie Secretary and, the ChieY Financial OY21cer oY the �orpo- i ratio¢. The Secretary-Treasurer shall keep at the principal office of .the carporation a book of miautes ot all meetings of Directors i and members, with the time aad place of holding, how called or auzho- r.ized, the notice thereoY given, the names oY those present at � Directors' meetiags, the aumber o! members present or represented I at member's meetiags, and the proceedings thereof. The Secretary- '� T:easurer shall keep and maintain adequate and correct books o2 ' accouat shoaing the recei,pts and disbursements o2 the corporation, � and an accouat stiall at all reasonable times be open to inspection I by any member or Director. The Secretary-Treasurer shall deposit all moneys of the c�rpo- ; ration with such depositories as are designated by the Board af Directors, and shall disburse the funds of the corporation as may ( be or�c:red by the Board of Directors, and shall render to the � Chairman or the Board o2 Directors, upoa request, statements of the ' :inancial coaditioa ot the corporation. 1 Sectioa 6. SIIBORDI:IATB OEFICERS. Subordinate of2icers s�a11 I oerfora such duties as shall be prescribed from time to time by � ctie Board oP Directors or the Chairman. � ' I � ' ' I � i _., _ � � i . .. . _. . ._ -.. __.-___.________ �RTICLE VIiI MISCELLANEOUS Section 1. EXECUTION OF DOCUMEN75. The Board of Directors may authorize any oPPicer or ofPlcers, agent or agents, to enter into zny contract or execute any instrument in the name of and on behalf of the corporation and such authority may be general or confined to speci°ic,instances; and unless so authorized by the Board of Directors, no oPficer, agent or other person shall nave any power or authority to hind the corporation by any contract or enqagement or to pledge its rredit or. to render it liable Por any purpose or to any amount. Section 2. INSPECTION OF BY-LAWS. The corporation shall keep in its principal office the original or a copy oP these by-laws, as amended er otherwise altered to date, certified by the Secretary, which shall be open to inspection by the members at all reasonable times during ofPice hours. Section 3. ANNUAL REPORT, The annual report shall conPorm to Section 6321 oP the CaliPornia Nonprofit Public Benefit Corporation Law. i Sec;ien 4. FISCAL YEAR. The Piscal year oP the corporation I shall begin May 1 and end April 30 oP each year, except the first � fiscal year which shall run from the date of incorporation to the � date oP the next year. ! � Section 5. CONSTRUCTION AND DEFINITIONS. Unless the context ; otherM:se requires, the general provisions, rules of constructlon and ' definitions sontained the California NonproPit Public BenePit Corpo- � ration Law shall govern the construction oP these by-laws. With- ' out limiting the generality of the foregoing the masculine gender j includes the feminine and neuter, the singular number includes • ; the plural and the plural number includes the singular, and term i "person" includes a corporation as well as a natural person. � Section 6. LIMITATIONS. The Local Development Company sha11 I not participate in any SBA programs other than those permitted by part lOB.503-1(d) of SBA's Regulations. ' ARTICLE IC ' AMENDMENTS � Section 1. POWER OF IdEMBERS. Idew by-laws may be adopted or these by-laws may be amended or repealed by the vote of inembers � entitled to exercise a ma,fority oP the voting power of the corpora- i tion o: by the written assent or such member, or by the vote of a �ajori;y o° a quorun at a meeting oP members duly called for the i puroose, etcept as otherwise provided by 1aw or by the articles of � incorpora:ion. ; I � _;_ j i i I I — I � i . ' � • � J • ` � Section 2. POWER OF DIREC70R5. Subject to the right of the members as provided in this Article to adopt, amend or repeal oy-laws, any by-law other than a by-law or amendment thereof changing the authorized number oP Directors may be adopted, amended or repealed by the Board of Directors. I � I I � � ; . � I I I i � i j I i ' � �g� � ' � I � �