Chapter 2.48

VERNON COMMUNITY FUND GRANT COMMITTEE

The City Council of the City of Vernon hereby establishes the Vernon Community Fund Grant Committee.

(Prior code § 2.155)

The City Council finds that it is in the best interest of the City of Vernon and its residents to provide grants to charitable and governmental entities for projects in and around the City of Vernon that benefit the residents of the City. Given the industrial character of the City, the City finds that its residents may receive significant benefits from projects and programs located within the surrounding communities. The City Council finds that such grants will directly improve the quality of life for Vernon residents and businesses. (Prior code § 2.156)

For purposes of this chapter, the following definitions apply:

"Grant Committee" means the Vernon Community Fund Grant Committee.

"VCF" means the Vernon Community Fund.

"Vernon area" means the area that includes the Cities of Vernon, Maywood, Bell, Huntington Park, Commerce, the area within the City of Los Angeles known as Boyle Heights, and the unincorporated area known as East Los Angeles. (Prior code § 2.157)

• A. The Committee shall be comprised of seven members appointed by the City Council. The Committee members shall include:

  1. One person representing Members of the California Legislature with a district that includes at least a portion of the Vernon area;

  2. Four persons that reside or work in the Vernon area;

  3. One person who represents the owner or operator of a business located in Vernon; and

  4. One current member of the Vernon City Council.

• B. No member of the Committee shall have, at any time within the five years preceding appointment: (1) been an employee or a consultant of the City; or (2) a financial interest in any contract, other than the lease of his or her residence or the provision of municipal services available to the public generally, to which the City is a party.

• (Prior code § 2.158)

• A. Committee members shall serve for a term of four years and may be reappointed. Terms of office for each seat shall begin on July 1 at 12:00 a.m. and end on June 30 at 11:59 p.m. four years thereafter. No person shall serve more than two consecutive full four-year terms.

• B. Unscheduled vacancies due to resignation, no longer meeting criteria, removal or inability to serve for any reason the position shall be considered vacant and the unscheduled vacancy shall be posted and filled pursuant to Government Code Section 54974.

• C. A Committee member shall be considered to have vacated his or her position on the Committee if he or she misses four or more consecutive meetings without a valid excuse as determined by the Committee.

• (Prior code § 2.159)

• A. The Grant Committee shall have a chairperson and vice chairperson, who shall be from different appointing categories pursuant to Section 2.48.040.

• B. The Grant Committee members shall elect the chairperson and vice chairperson at its first meeting and annually thereafter. No Grant Committee member may serve as chairperson for more than two consecutive terms. The chairperson shall preside over all Committee meetings. The vice chairperson shall, in the absence of the chairperson, perform the duties of the chairperson.

• C. In the event any Grant Committee member resigns, no longer meets the criteria used as the basis for his or her selection pursuant to Section 2.48.040, is removed pursuant to this section, or is unable to serve for any reason, the position shall be considered vacant and the Mayor shall, within 30 days after the position becomes vacant, select for ratification by a majority of the City Council, a successor with the same qualifications to serve the unexpired term. A Grant Committee member shall be considered to have vacated his or her position on the Grant Committee if he or she: (1) misses four or more consecutive meetings or two or more consecutive regular meetings; and (2) a majority of the City Council did not pass a motion within 30 days of the final meeting and before the position was filled declaring that the City Council was of the opinion that the Committee Member had a valid excuse for at least one of the relevant absences.

• D. A member of the Grant Committee who also serves on the City Council shall not receive compensation for his or her attendance at Grant Committee meetings. All other Grant Committee members shall receive $100.00 per meeting, up to a maximum of $200.00 in any calendar month, as well as their actual and necessary expenses incurred in the discharge of their duties. Travel expenses of Grant Committee members for travel outside the County of Los Angeles shall not be reimbursed without prior approval of the City Council. The Secretary, Treasurer, Counsel and Executive Director shall receive no compensation as Grant Committee officers, other than compensation received from their primary employment.

• E. A Grant Committee member may be removed by a majority vote of the City Council at a properly noticed regular meeting of the City Council for any reason or no reason.

• F. Prior to the removal of a Grant Committee member, and at least 72 hours before the start of the regular meeting where the City Council will consider the removal of the Grant Committee member, the Grant Committee member shall be personally notified that the City Council will consider his or her removal.

• G. The officers of the Grant Committee shall be the Secretary, Treasurer, Counsel and Executive Director.

• H. The Secretary shall keep and maintain the records of the Grant Committee and the minutes of the Grant Committee meetings and also shall perform all other duties incident to the position of Secretary of the Grant Committee. The City Clerk shall hold the position of Secretary of the Grant Committee.

• I. The Treasurer shall supervise the fiscal affairs of the Grant Committee, shall supervise the care and custody of all monies appropriated to the Grant Committee by the City Council and shall make such payments as authorized by the Grant Committee. The Treasurer shall cause adequate, correct and regular accounts of the monies and transactions managed by the Grant Committee to be kept and maintained. The Treasurer shall render to the Grant Committee, whenever requested, a Treasurer's report of the Grant Committee's transactions and the financial status of funds under the Grant Committee's purview. The City Treasurer shall hold the position of the Treasurer of the Grant Committee.

• J. The Grant Committee Executive Director is charged with the administration, management and general supervision of the business and affairs of the Grant Committee. The City Administrator shall hold the position of the Grant Committee Executive Director.

• K. The Grant Committee Counsel shall be in overall charge of the legal affairs of the Grant Committee and shall advise the Grant Committee on matters within its jurisdiction, as well as with respect to compliance with the California Political Reform Act (Government Code Section 81000, et seq.) and California Government Code Section 1090 et seq. The City Attorney shall hold the position of Grant Committee Counsel.

• L. Any officer may designate someone other than himself or herself to act on his or her behalf. (Prior code § 2.160)

As a committee of a public entity, the Grant Committee shall comply with all applicable open meeting and ethics laws, including, but not limited to, the Ralph M. Brown Act, the Political Reform Act, the Public Records Act, and Government Code Section 1090. (Prior code § 2.161)

• A. Regular Meetings. The Grant Committee shall have regular meetings at least twice per year, on dates and at times established by a resolution of the Committee.

• B. Committee meetings shall be noticed and conducted in compliance with the Ralph M. Brown Act (Government Code Section 54950 et seq.). All meetings shall be open to the public and regular minutes of each meeting shall be maintained by the Secretary to the Committee. A majority of Committee members shall constitute a quorum. Once a quorum is established, action may be taken by the Committee only upon a favorable vote of a majority of the Committee members present and voting.

(Prior code § 2.162)

To assist the Grant Committee, the Executive Director shall:

• A. Establish a program to publicize the existence of the Grant Committee and its purpose to potentially eligible grant applicants.

• B. Prepare an application form for potential grant applicants that gathers all necessary information. The application shall contain an affirmation under penalty of perjury that all statements and information contained within the grant application are true and correct, to the best of the applicant's knowledge.

• C. Ensure that only applicants that are eligible (see criteria below) are considered by the Grant Committee as possible grant recipients. The Executive Director shall endeavor to make an initial determination of the applicant's eligibility and notify the applicant of that determination.

  1. Within 60 days of receipt of a proposal, the Executive Director shall endeavor to make an initial determination of the applicant's eligibility and notify the applicant of that determination. An applicant who has been determined to be ineligible by the Executive Director may appeal this determination to the City Council. Appeals must be filed with the City Clerk within 30 days of the issuance of the notice of ineligibility. The Executive Director shall establish procedures for filing and hearing appeals. These procedures shall be enclosed with each notice of ineligibility. If an applicant fails to properly appeal the Executive Director's decision in a timely manner, the decision of the Executive Director shall be final.

• D. Rank the proposals (see criteria in Section 2.48.110).

• E. Provide the Grant Committee with a list of proposals from (and only from) eligible grant applicants, as well as staff's recommended rank order.

• F. Process and administer grants awarded by Grant Committee.

• G. Provide other staff support to the Grant Committee as necessary.

On behalf of the City, the City Administrator, or designee, shall conduct oversight and/or audits of grant funds, as appropriate (see criteria).

(Prior code § 2.163; Ord. 1291 § 3, 2022)

Fund appropriation for the VCF shall be determined each fiscal year by contributions from two separate funding sources: (1) City Council approval of budget appropriation from the General Fund; and (2) Donations/contributions from private business entities or individuals designated for VCF Scholarship Grants.

The Grant Committee shall allocate funds appropriated to the VCF according to the following formula:

• A. Administrative costs shall be determined for the fiscal year and the amount shall be allocated for payment from funds appropriated to the VCF by the City Council.

• B. The remainder of available General Fund moneys in any fiscal year may be awarded to proposals from 501(c)(3) Tax-Exempt Organizations to expend funds on direct services and/or scholarship grants. No single grant shall be in an amount more than $250,000.00.

• C. Donations/contributions from private business entities or individuals designated for VCF Scholarship Grants shall be used solely to fund VCF Scholarship Grants and shall not be used to support 501(c)(3) Tax-Exempt Organizations.

• (Prior code § 2.164; Ord. 1291 § 4, 2022)

In conjunction with the eligibility requirements herein, the Grant Committee may adopt administrative guidelines consistent with the provisions of this chapter for the purpose of interpreting, clarifying, and carrying out the program parameters established herein. Said guidelines may be adopted through the normal activities of the Grant Committee if deemed appropriate and shall always work in tandem with the eligibility requirements set forth in this section.

• A. For Direct Service Grants.

  1. Only organizations exempt from taxation under Section 501(c)(3) of the Internal Revenue Code or bona fide American governmental entities shall be eligible to receive grants.

  2. Eligibility Criteria for 501(c)(3) Tax-Exempt Organizations to Receive Funds at Any Time.

     • a. Have received a letter from the Internal Revenue Service recognizing the organization as exempt from taxation under Section 501(c)(3) of the Internal Revenue Code and classifying the entity as a public charity, and provide a certification that the organization's tax-exempt status remains in effect both at the time of application for a grant and at the time of receipt of the grant.

     • b. Be operated and organized in a manner that does not discriminate in the hiring of staff/contractors or the provision of services on any basis protected from discrimination under the California Fair Employment and Housing Act and/or the California Unruh Act.

     • c. Have adopted a conflict of interest policy consistent with the Internal Revenue Service's recommended conflict of interest policy published in Appendix A of Form 1023 Instructions (see http://www.irs.gov/pub/irs-pdf/i1023.pdf) or any successor thereto.

     • d. Establish an independent audit committee and/or retain independent auditors, if required to do so by State or Federal law.

     • e. Adhere to generally accepted best practices in the philanthropic industry in all areas, including, but not limited to, board governance, document retention, ethics and whistleblower policies, executive compensation, investment of funds, fundraising, preparation of financial statements and/or audits.

• f. Anticipate receiving the majority of its funding in the year(s) in which it would receive VCF grants from sources other than the VCF.

• g. Not employ or otherwise provide or promise, at the time of the application or within the previous 12 months, gifts, political contributions, income or compensation, directly or indirectly, to:

  • i. Any member of the Grant Committee.

  • ii. Any member of the Vernon City Council.

  • iii. Any officer of the City of Vernon.

  • iv. Any employee or consultant of the City of Vernon who engages in significant work related to the VCF.

• v. An immediate family member of any of the above. Immediate family members include spouses and registered domestic partners, children, children's spouses and/or registered domestic partners, brothers, brothersin-law, sisters, sisters-in-law, and all other family members who reside in the person's household or are claimed as dependents.

A person shall be deemed to be provided indirect income or compensation by a grant applicant if he or she owns or is otherwise entitled to profits of 10% or more of a firm or entity that receives income or compensation from the grant applicant. In addition, the Executive Director shall have the authority to determine that a person has been provided indirect income or compensation by a grant applicant.

• Eligibility Criteria for Governmental Entities.

• a. Be a bona fide governmental entity, or agency thereof, located entirely or partially within the State of California.

• b. Have policies and procedures to ensure compliance with all applicable good governance and ethics requirements.

• c. Agree to provide detailed accountings of the use of grant funds to the Grant Committee.

• B. For Scholarship Grants. Scholarship applicants must meet all eligibility standards that are identified below:

  1. Must be a graduating high school senior.

  2. At the time of VCF Scholarship application submission, achievement of the established Minimum Weighted Grade Point Average in high school level coursework for trade school or two-year college applicants; or the established Minimum Weighted Grade Point Average in high school level coursework for fouryear college/university applicants.

  3. Provide evidence of acceptance to an accredited college, university, or trade school. Proof of registration at an accredited college, university, or trade school is required before any funds will be disbursed.

4. Provide proof of current attendance at a high school within the Vernon area, as defined in Section 2.48.030, or proof of current residency in the Vernon area (U.S. citizenship is not required). Proof must be under the applicant's name, or parent's name if the applicant is a dependent student (under 18 years of age).

5. Demonstration of strong leadership skills and responsibility (successfully communicated in scholarship application).

6. Dedication to extracurricular activities and/or community involvement.

7. Not a City of Vernon employee or relative, or dependent of a City of Vernon employee, Vernon City-appointed official, or Vernon City-elected official.

8. Adherence to all standards and requirements set forth in the scholarship grant administrative guidelines adopted by the Grant Committee.

(Prior code § 2.165; Ord. 1291 § 5, 2022)

In conjunction with the criteria herein, the Grant Committee may adopt administrative guidelines consistent with the provisions of this chapter for the purpose of interpreting, clarifying, and carrying out the program criteria established herein. Said guidelines may be adopted through the normal activities of the Grant Committee if deemed appropriate and shall always work in tandem with the criteria set forth in this section.

• A. For Direct Service Grants. The Executive Director and the Grant Committee shall rank all proposals from eligible grant applicants by using the following factors:

  1. The extent to which the funds will promote the health, safety, and welfare of persons residing or working within the Vernon area.

  2. The benefit anticipated to accrue to the Vernon area.

  3. The extent to which the public will appreciate that the benefits of the proposed actions were a direct result of the funding provided by the City of Vernon.

  4. Evidence that the funds will be used by an organization with sufficient capacity to do the work, and will be used effectively and without inefficiencies, waste or fraud.

Notwithstanding the above, no grant shall be awarded unless doing so serves a municipal purpose of the City of Vernon.

• B. For Scholarship Grants. Award criteria (not in order of priority):

  1. Financial need.

  2. Academic achievement.

  3. Community/extracurricular involvement.

  4. Leadership at school or in the community.

  5. Awards and recognition.

  6. Personal and/or family attributes, as demonstrated through scholarship application process.

(Prior code § 2.166)

• A. At each meeting of the Grant Committee, the Committee shall review grant proposals or scholarship applications, consider the recommendations of the Executive Director, and determine whether to award grants based upon the requirements of Section 2.48.120.

• B. Prior to each regularly scheduled meeting, the Executive Director shall make available to the Grant Committee and to the public all proposals or scholarship applications from eligible grant applicants that are to be considered at the meeting, along with comments on the City's website. For special meetings, this information shall be provided to the Grant Committee and the public at the time that the meeting is called.

• C. The Grant Committee shall award grants only upon a minimum of four votes in favor of a grant proposal or scholarship application.

• D. Within 30 days of any regular meeting at which grants are awarded and within 15 days of any special meeting at which grants are awarded, the Executive Director shall make all reasonable efforts to provide to the City Council a report of the grants awarded by the Grant Committee.

• E. All grant recipients shall agree in writing, as a condition for receiving a grant, that the grant recipient will comply with all applicable rules and laws associated with the receipt and use of grant funds. Additionally, any grant recipient who fails to comply fully with all applicable rules and laws shall be subject to the forfeiture of any grant funds not already distributed to the grantee and may be subject to returning to the VCF any funds the City determines were misused.

(Prior code § 2.167; Ord. 1291 § 6, 2022)

• A. The City Administrator or designee shall conduct oversight of all grant recipients. This includes, but is not limited to:

  1. Ensuring that grant applicants continue to adhere to the law and best practices of taxexempt organizations or governmental entities.

  2. Monitoring the projects and services funded by grants.

  3. Reviewing financial statements provided by grant recipients.

  4. At his or her discretion, cause an independent audit of grant funds to be conducted. The grant recipient shall fully cooperate with any audit or other financial review conducted by the City or its agents.

• B. Should the City Administrator or designee determine that grant funds have been spent improperly, or if he or she cannot determine how grant funds have been spent, the City Administrator is authorized to take any action necessary to recover the funds from the grant recipient or responsible individuals.

• C. If the City Administrator determines that he or she lacks proof that the grant fund recipient currently meets the requirements of Section 2.48.110, the City shall not disburse any funds to that grant fund recipient and immediately notify the grant fund recipient of the City Administrator's determination. The grant fund recipient may appeal the City Administrator's determination by providing the City Administrator written notification of the appeal within 30 days of the determination. The appealing party may provide facts and arguments in writing to the City Administrator to state why the City Administrator's determination should be overturned.

(Prior code § 2.168)

Within 30 days of its first meeting, and no later than September 1, 2014, the Grant Committee must adopt and submit to the City Council for approval a conflict of interest code in compliance with the California Political Reform Act (Government Code Section 81000 et seq.), unless the City Council has already adopted a conflict of interest code that expressly applies to all of the members of the Grant Committee.

(Prior code § 2.169)