HomeMy WebLinkAboutOB 2 COMMUNITY FDTN 03-01-93OLD BUSINESS NO. 2
J71 3-1-93
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Inter -Com
DATE: FEBRUARY 25, 1993 Us11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: WILLIAM A. HUSTON, CITY MANAGER
SUBJECT: TUSTIN COMMUNITY FOUNDATION
RECOMMENDATION:
That the City Council approve the Bylaws of the Tustin Community
Foundation.
FISCAL IMPACT:
The City Council previously authorized funding for creation of the
Foundation. Staff support will be provided with existing City staff.
The Foundation is intended to be self-supporting and therefore will not
create a recurring financial obligation to the City (except for staff
support, which is not an added cost to the City).
DISCUSSION:
The attached Bylaws have been amended to include the following changes
directed by the City Council at its January 19, 1993 meeting:
■ The Board of Directors will include two City Councilmembers
selected by the City Council and five persons selected by a
four-fifths (4/5) vote of the City Council.
■ The titles of the officers of the Foundation are President,
Vice -President, and Secretary -Treasurer.
■ Any amendments to the Bylaws must be approved by the City
Council.
With final City Council approval, Attorney John Francis will file the
appropriate documents with the California Secretary of State and the
Internal Revenue Service. When the Foundation is officially formed,
staff will advise the City Council so it can proceed with appointing the
Board of Directors.
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BYLAWS OF
THE TUSTIN COMMUNITY FOUNDATION
ARTICLE I
Name
The name of this Corporation shall be the Tustin Community
Foundation.
ARTICLE II
Principal Office
The principal office of this Corporation for transaction of
business is located in the City of Tustin and the County of Orange,
California, at 300 Centennial Way, Tustin, CA 92680. The Board of
Directors has full power and authority to change the principal
office of this Corporation from one location to another in the City
of Tustin, California.
ARTICLE III
Purpose
The purposes of the Tustin Community Foundation are to lessen the
burdens of government and to promote and support the cultural,
recreational and human services needs of the City of Tustin.
ARTICLE IV
Membership
This Corporation shall have no members other than the persons
constituting its Board of Directors. The Board of Directors shall,
under any statute or rule of law, be the members of this
Corporation and shall have all the rights and powers members would
otherwise have.
ARTICLE V
Board of Directors
Section 1. Number of Directors. The number of Directors shall be
seven (7), two (2) of whom shall be members of the Tustin City
Council.
Section 2. Powers of Directors. Subject to the provision of the
California Nonprofit Corporation Law and any limitations in the
Articles of Incorporation and these Bylaws, the business and
affairs of this Corporation shall be managed, and all corporate
powers shall be exercised by or under the direction of the Board of
Directors. The Board of Directors may delegate the performance of
any duties or the exercise of any powers to such officers or agents
as may from time to time by resolution be designated.
Section 3. Selection and Term of Office. The Board of Directors
shall be comprised of seven (7) members elected by a four-fifths
(4/5) vote of the Tustin City Council. Each board member shall
serve for a term of three ( 3 ) years; except for the f irst seven ( 7 )
members elected to the Board of Directors, of which three (3)
members shall serve terms of three (3) years each, two (2) members
shall serve terms of two (2) years each and two (2) members shall
serve. terms of one (1) year each, as determined by the Tustin City
Council.
Section 4. Vacancies. A vacancy in any Director position because
of removal, death, resignation, expiration of term or otherwise,
shall be filled by a four-fifths (4/5) vote of the Tustin City
Council. Any person selected to fill a vacancy on the Board of
Directors shall hold office for the unexpired term of his or her
predecessor in office, subject to the power of removal contained
herein.
Section 5. Voting. Each member of the Board of Directors shall
have one vote. There shall be no proxy voting permitted for the
transaction of any of the business of this Corporation.
ARTICLE VI
Meetings of Board of Directors
Section 1. Annual Meeting. There shall be an annual meeting of the
Board of Directors on the third Tuesday in January each year. Such
meeting shall be for the purpose of electing Directors and for the
transaction of such other business as may come before the meeting.
Section 2. Regular Meetings. Regular meetings of the Board of
Directors for any purpose or purposes shall be called at any time
by the President. The President shall be required to call a
meeting upon the joint request of any three (3) members of the
Board. All meetings of the Board of Directors shall be governed by
Robert's Rules of Order, including such revisions thereof as may
from time to time be published, except insofar as such rules are
inconsistent with these Bylaws, with the Articles of Incorporation,
or with applicable law.
Section 3. Place of Meetings. Meetings of the Board of Directors
shall be held at any place within this State which has been
designated from time to time by resolution of the Board or by
written consent of all members of the Board. In the absence of
such designation, meetings shall be held at the Tustin City Hall.
Section 4. Notice of Meetings.
(a) Written notice of every regular meeting shall be given each
Director at least seven (7) days before each meeting. Notice may
be delivered personally or by mail to the last known address of the
addressee and, if mailed, is complete upon mailing. Written notice
of any meeting shall also be given pursuant to this subsection to
any person who requests such notice in writing.
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(b) An agenda listing the matters ;.o be considered at each meeting
shall be given to each Director, and to any person so requesting,
at least seven (7) days before the meeting.
(c) Notwithstanding anything in tee section to the contrary, the
President may call an emergency meeting of the Board without giving
the normal notice if such a meeting is necessary to consider any
unforeseen emergency condition. kn emergency condition for the
purpose of this subsection is any condition that, if not addressed
by the Board promptly, may result in a detriment to this
Corporation or to the City of Tustin. Notice of any emergency
meeting may be delivered personally, by telephone or mailed, and
shall be received at least twenty -=our (24) hours before the time
of such meeting.
Section 5. Open Meetings. All meetings of the Board shall be open
and public, and all persons shall be permitted to attend any
meeting of the Board, provided, however, that the Board may hold
closed sessions during any meeting to consider those matters that
may lawfully be considered in such sessions under Chapter 9 of Part
1 of Division 2 of Title 5 of the Government Code, commencing with
Section 54950.
Section 6. Quorum. A majority of the total number of voting
Directors who are presently hold_ng office shall constitute a
quorum for the transaction of business at every meeting. Every act
or decision done or made by a majority of the Directors present at
a meeting at which a quorum is present shall be regarded as the act
of the Board of Directors.
Section 7. Minutes of Meetings and Conduct. Regular minutes of the
proceedings of the Board of Directors shall be kept in a book
provided for that purpose. The President shall preside at meetings
of the Board of Directors. The Board of Directors may adopt its
own rules of procedure insofar as such rules are not inconsistent
with, or in conflict with, these Bylaws, the Articles of
Incorporation of the Corporation o: with the law.
Section 8. Resignation and Removal of Directors. Any Director may
resign from the Board of Directors at any time by giving written
notice to the President or the Secretary -Treasurer. The acceptance
of such a resignation shall not be necessary to make it effective.
Directors of this Corporation may be removed at any time without
cause by a majority vote of the remaining Directors, subject to
approval by a four-fifths (4/5) vote of the Tustin City Council.
Section 9. Compensation of Directors. No Director shall receive
any salary or other similar compensation for any services as a
Director, however, the Board of Directors may authorize the
reimbursement of actual and necessary expenses incurred by
individual Directors performing du-ies as Directors.
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Section 10. Inspection by D rectors. Each Director shall have the
right at any reasonable time to inspect all books, records, and
documents of every kind and the physical properties of the
Corporation for a purpose reasonably related to such person's
interest as a Director, provided that such Director shall not have
the right to inspect those books, records• or documents made
privileged or confidential by law. This inspection must be made by
the Director in person, and the right of inspection includes the
right to copy and make extracts of documents.
ARTICLE VII
Officers
Section 1. Officers. The officers of this Corporation shall be a
President, Vice President, and Secretary -Treasurer.
Section 2. Election. The Board of Directors shall elect all
officers of this Corporation for terms of one year, or until their
successors are elected and qualified. The annual election shall be
held on the third Tuesday in January. All officers shall be drawn
from the Board membership.
Section 3. President. Subject to the control of the Board of
Directors, the President shall preside at all meetings of the
Board, and shall have such other powers and duties as may be
prescribed from time to time by the Board of Directors. The
President shall have a vote on all -matters.
Section 4. Vice President. In the absence or disability of the
President, the Vice President shall perform all the duties of the
President. The Vice President shall have such other powers and
perform such other duties as may be prescribed from time to time by
the Board of Directors.
Section 5. Secretary -Treasurer. The Secretary -Treasurer shall
assist the President in the preparation of the agendas for the
meetings, shall keep a full and complete record of the proceedings
of all meetings of the Board of Directors, shall keep the seal of
this Corporation and affix the same to such papers and instruments
as may be required in the regular course of business, shall provide
such notices as may be necessary and proper, shall supervise the
keeping of the books of this Corporation and shall discharge such
other duties as pertain to the office or as prescribed by the Board
of Directors. The Secretary -Treasurer shall be the chief financial
officer of this Corporation and, if so required by the Board of
Directors, shall give a bond for the faithful discharge of his or
her duties in such sum and with such surety as the Board of
Directors shall deem appropriate. The Secretary -Treasurer shall
submit an annual report to the Board on or about the first Monday
in October of each year. In case of the absence or disability of
the Secretary -Treasurer, or his or her refusal or neglect to act,
such notices may be provided by the President, or by the Vice
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President or by any person thereunto authorized by the President or
by the Vice President, or by the Board of Directors.
ARTICLE VIII
Committees
Section 1. Committees. The Board may appoint one or more
committees, each consisting of two or more Directors, and delegate
to such committees any of the authority of the Board except with
respect to:
(a) The filling of vacancies on the Board or on any committee;
(b) The fixing of compensation of the Directors for serving on the
Board or on any committee;
(c) The amendment or repeal of Bylaws or the adoption of any new
Bylaws;
(d) The amendment or repeal of any resolution of the Board which
by its express terms is not to amendable or repealable;
(e) The appointment of other committees of the Board or the
members thereof; or
(f) The approval of any self-dealing transaction, as such
transactions are defined in Section 5233(a) of the California
Nonprofit Public Benefit Corporation Law.
Any such committee must be created, and the members thereof
appointed, by resolution adopted by a majority of the Directors
then in office, provide a quorum is present. Any such committee
may be designated an Executive Committee or by such other name as
the Board shall specify. The Board may appoint, in the same
manner, alternate members of any committee who may replace any
absent member at any meeting of the committee. The Board shall
have the power to prescribe the manner in which proceedings of any
such committee shall be conducted. In the absence of any such
prescription, such committee shall have the power to prescribe the
manner in which its proceedings shall be conducted. Minutes shall
be kept of each meeting of each committee.
ARTICLE IX
Indemnification of Directors, Offices, and Other Agents
Section 1. Right of Indemnity. To the fullest extent permitted by
law, this Corporation shall indemnify its Directors, Officers,
employees, and other persons described in Section 5238(a) of the
California Corporations Code, including persons formerly occupying
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any such position, against all expenses, judgments, fines,
settlements and other amounts actually and reasonably incurred by
them in connection with any "proceeding," as that term is used in
that Section, and including an action by or in the right of the
Corporation, by reason of the fact that the person is or was a
person described in that section. "Expenses," as used in this
bylaw, shall have the same meaning as in Section 5238(a) of the
California Corporations Code.
Section 2. Approval of Indemnity. On written request to the Board
by any person seeking indemnification under Section 5238(b) or
Section 5238(c) of the California Corporations Code, the Board
shall promptly determine under Section 5238(e) of the California
Corporations Code whether the applicable standard of conduct set
forth in Section 5238(b) or Section 5238(c) has been met and, if
so, the Board shall authorize indemnification.
Section 3. Advancement of Expenses. To the fullest extent
permitted by law and except as otherwise determined by the Board in
a specific instance, expenses incurred by a person seeking
indemnification under these Bylaws in defending any proceeding
covered by those Sections shall be advanced by the Corporation
before final disposition of the proceeding, on receipt by the
Corporation of an undertaking by or on behalf of that person that
the advance will be repaid unless it is ultimately determined that
the person is entitled to be indemnified by the Corporation for
those expenses.
Section 4. Insurance. The Corporation shall have the right to
purchase and maintain insurance to the full extent permitted by law
on behalf of its Officers, Directors, employees, and other agents,
against any liability asserted against or incurred by any Officer,
Director, employee, or agent in such capacity or arising out of the
Officer's, Director's, employee's or agent's status as such.
ARTICLE X
Contracts, Loans, Checks, Deposits and Gifts
Section 1. Contracts. The Board of Directors may authorize any
officer or agent of the Corporation, in addition to the Officers so
authorized by these Bylaws, 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.
Section 2. Loans. The Board of Directors shall not make any loan
of money or property to or guarantee the obligation of any Director
or officer, unless approved by the Attorney General.
Section 3. Borrowing. No loan shall be contracted on behalf of the
Corporation and no evidence of indebtedness shall be issued in its
name unless authorized by a resolution of the Board of Directors.
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Section 4. Checks, Drafts, Etc. All checks, drafts, or other
orders for payment of money, and all notes or other evidence of
indebtedness issued in the name of the Corporation shall be signed
by such officer or officers, agent or agents of the Corporation and
in such manner as, from time to time, shall be determined by the
resolution of the Board of Directors.
Section 5. 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 6. Gifts. The Board of Directors may at their discretion
accept on behalf of the Corporation any contribution, gift,
bequest, or devise for the general purposes or for any specific
purpose of the Corporation.
ARTICLE XI
Conflict of Interest
No member of the Board of Directors shall be financially interested
in any contract or other transaction entered into by the Board of
Directors, and any contract or transaction entered into in
violation of this is void. No Director may utilize information
obtained by reason of Board membership for personal gain, and the
Board of Directors may recover any such gain realized.
ARTICLE XII
Miscellaneous
Section 1. Fiscal Year. The fiscal year of the Corporation shall
begin on the first day of July and end on the last day of June in
each year unless otherwise determined by resolution of the Board of
Directors.
Section 2. Rules. The Board of Directors may adopt, amend, or
repeal rules not inconsistent with these Bylaws for the management
of the internal affairs of the Corporation and the governance of
its officers, agents, committees, and employees.
Section 3. Books and Records. The Corporation shall keep correct
and complete books and records of the account and minutes of the
proceedings of the Board of Directors and committees. Copies of
the minutes of the Board of Directors and of the committees shall
be regularly distributed to each member of the Board of Directors.
Section 4. Corporate Seal. The Board of Directors may provide a
corporate seal, which shall be in the form of a circle and shall
have inscribed thereon the name of the Corporation, the date of its
incorporation, and the word "California."
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Section 5. Waiver of Notice. Whenever any notices are required to
be given under the provisions of the Nonprofit Corporation Act of
the State of California, or under the provisions of the Articles of
Incorporation of the Corporation, or these Bylaws, a waiver thereof
in writing signed by the persons entitled to such -notice, whether
dated before or after the time stated herein, to the extent
permitted by law, shall be deemed equivalent to the giving of such
notice.
ARTICLE XIII
Amendment of Bylaws
The Bylaws of this Corporation shall be amended only by the vote of
a majority of the total voting membership of the Board of
Directors, subject to the approval of a majority of the membership
of the Tustin City Council.
CERTIFICATE OF SECRETARY -TREASURER
I, the undersigned, do hereby certify under penalty of
perjury.
1. That I am the duly elected and acting Secretary -Treasurer
of the Tustin Community Foundation, a California nonprofit
corporation; and
2. That the foregoing Bylaws comprising of eight (8) pages,
including this page, constitutes the Bylaws of said Corporation as
duly adopted at a meeting of the Board of Directors thereof duly
held on the day of , 1993.
IN WITNESS WHEREOF, I have hereunto subscribed my name on
this day of , 1993.
Secretary -Treasurer