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2.5 Rules and Regulations: Rules and regulations are the policies and procedures adopted by the Police Commission governing the action of the Police Commission and its employees. 2.6 Boundaries: The area within the corporate limits of the cities which are parties to this Joint Powers Agreement, as adjusted in the future, whether by annexation or otherwise. SECTION III ORGANIZA TION 3.1 Establishment. There is hereby established the "Department" to be managed through a two (2) tier system. The management tiers will be as follows: The Chief of Police is an appointed position. Appointment and contract require the approval of all member cities. In the event that the member cities are unable to agree on a person to fill the position of Chief of Police, the Police Commission by majority vote shall appoint an acting Chief of Police. Specific personnel issues for the Chief of Police will be covered by the contract and/or Rules and Regulations potoies--p-QIid_Qit- Joint Powers Police Department, adopted by the Police Commission. 3.2 The Commission meeting will rotate between the member cities or an agreed upon location. 3.3 Quorum. Six (6) of nine (9) regular Police Commission members during special or monthly meetings shall constitute a quorum, provided that at least two (2) Police Commission members shall be present from each city. In the event of financial default, the quorum will be reduced to four (4) Police Commission members present, with at least two (2) from each city not in default. Police Commission members from cities in default shall not count toward a quorum. 3. 4 Voting. Each Police Commission member, except the chairperson, present at the meeting shall be entitled to one (1) vote. Unless otherwise provided in this agreement, the Police Commission may take the action on any issue by a majority vote of those members present and entitled to vote at a duly called meeting, subject to the quorum requirement of Section 3.3. There shall be no voting by proxy. Votes must be cast at a Police Commission meeting by a Police Commission member. Police Commission members from cities in financial default are not eligible to vote. 3.5 The parties agree that there shall be established a Police Commission consisting of nine (9) members to be selected as follows: a) Two citizen commissioners to be appointed by each City Council of each member city, according to the procedure which each Council shall determine. The third member, from that city, shall be an elected city official. - 2 -