STAFF REPORT
DATE: October 3, 2023
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Assistant Community Development Director BY: Maribel Leyland, Housing Authority Manager
SUBJECT: Appointment of an Alternate Board Member to the Burbank-Glendale- Pasadena Regional Housing Trust Board of Directors and Update
RECOMMENDATION
Appoint an Alternate Board Member to the Burbank-Glendale-Pasadena Regional Housing Trust Board of Directors.
BACKGROUND
Senate Bill (SB) 1177 approved on August 22, 2022, authorized a Joint Powers Authority between the cities of Burbank, Glendale, and Pasadena. The bill authorized the formation of the Burbank-Glendale-Pasadena Regional Housing Trust (BGPRHT), and specifically, allowed the three cities to enter into a Joint Powers Agreement (J PA) to create and operate a joint powers agency to fund housing to assist the homeless population and persons and families of extremely -low, very-low, low-, and moderate-income, within the tri-city area. In addition, a State budget appropriation of $23 million was approved in the Governor’s 2022-2023 budget for the BGPRHT.
On February 28, 2023 the City Council approved the JPA and appointed Council Member Nikki Perez as the City’s BGPRHT Board Member. The JPA has been executed and became effective May 2, 2023 (Attachment 1). Council Member Perez has attended the three BGPRHT Board meetings held to date. The recommendation this evening is the appointment of an alternate Board Member to attend BGPRHT Board Meetings on behalf of Council Member Perez, if necessary.
COMMUNITY
DEVELOPMENT
2 DISCUSSION
The executed JPA requires the B oard of Directors to consist of a minimum of three directors who are elected City Council members, and equally appointed by each of the three represented cities. Furthermore, the JPA outlines the following:
1. Specifies that the B oard of D irectors elect a C hairperson and Vice Chairperson from among its members at the first meeting held in each calendar year.
2. Provides that the members of the Board of Directors serve without compensation.
3. Authorizes the BGPRHT to reimburse Board of D irectors for pre-approved actual expenses.
4. Requires members of the Board of D irectors to serve a term of two years , and imposes a two-term limit on all Directors.
5. States that if a vacancy occurs on the Board of Directors, an individual shall fill the vacancy as outlined in the JPA, and provides that an appointment to fill a vacancy shall be effective only for the remainder of the term of the office that became vacated.
Furthermore, under Section 5. Board of Directors of the JPA, alternates for each director position may be appointed. Excerpt below:
Section 5. Board of Directors.
a) Selection of Directors. The membership of the Board of Directors of BGPRHT shall be governed by Government Code section 6539.8 and as it may be amended. As currently provided therein, BGPRHT shall be governed by a Board of Directors appointed by the Parties consisting of a minimum of three (3) Directors selected as follows:
1. Each Director must be an elected City Council member representing one of the Parties.
2. The Directors must consist of members equally appointed by each of the Parties.
3. Alternates for each Director position may be established by the Board of Directors under bylaws adopted by the Board of Directors; provided that such alternates shall meet the requirements set forth in subsection (a)(1) above and established in Government Code section 6539.8, as it may be amended.
Finally, the adopted BGPRHT Bylaws state each appointed Alternate shall count toward a quorum and have all other rights of the Director for whom they serve as an alternate when the Director is absent from a meeting. Alternate’s names shall be forwarded to the Executive Director for record keeping (Attachment 2). Therefore, the appointment of an Alternate is critical to represent the City of Burbank at BGPRHT meetings and have a quorum to meet should Council Member Perez not be available for a meeting. The City of Glendale has already appointed an alternate, and the City of Pasadena is scheduled to make an alternate appointment later this calendar year.
BGPRHT BOARD UPDATES
The BGPRHT Board has met in May, June, and July 2023 at alternating locations (Glendale, Pasadena, and Burbank respectively). At this time, the Board has not decided 3 on a regular meeting date, time, and location, and has been holding S pecial Meetings.
As of the writing of this report, the next Special Meeting is scheduled for Wednesday, September 27, 2023, at 4:30 p.m. at Glendale City Hall. Members of the public can view BGPRHT Agendas and Meeting Minutes at the BGPRHT website https://www.bgphousingtrust.org/.
To date, the actions of the BGPRHT include: 1) Appointed Pasadena Mayor Victor Gordo as the Chairperson; 2) Appointed Council Member Nikki Perez as the Vice Chairperson; 3) Adopted Bylaws; 4) Adopted a budget for Fiscal Year 2023- 2024, including appropriating funds for administration; 5) Approved and execut ed a contract with CivicHome to provide consulting services to the BGPRHT and serve as an Interim Trust Manager; and 6) Provided feedback to the Interim Trust Manager to apply to Regional Early Action Planning Grants (REAP) 2.0 available through the Southern California Association of Governments (SCAG). Staff and/or the Interim Trust Manager will return to the Council throughout these initial formation months with additional updates.
One of the next step s will be to develop an Operations Agreement to develop and formalize the activities of the BGPRHT as outlined in the legislation:
1. Fund the planning, acquisition, and construction of housing of all types and tenures for the homeless population and persons and families of extremely -low, very-low, low-, and moderate income, including but not limited to permanent supportive housing.
2. Receive public and private financing and funds.
3. Authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received and pledged by the BGPRHT.
There are several areas to be negotiated in an Operations Agreement including, but not limited to : 1) fair share of f unds to each city; 2) criteria for d istributing funds; and 3) program management and staffing. Staff from all three cities recommend utilizing a consultant to assist with the development of an Operations Agreement to ensure an equitable agreement for all parties.
FISCAL IMPACT
There is no fiscal impact associated with the appointment of an alternate BGPRHT Board Member. When the BGPRHT Board adopts the Operations Agreement, any fiscal impact to the City will be analyzed at that time.
ENVIRONMENTAL REVIEW
The recommended action to appoint a BGPRHT Alternate Board member does not have the potential to cause a significant effect on the environment and has been determined to be categorically exempt from environmental review pursuant to the California Environmental Quality Act (CEQA), State CEQA Guidelines Section 15320 (changes i n organization of local agencies). This exemption applies whenever local governmental agencies are organizing and this organization does not change the geographical area in 4 which previously existing powers are exercised, and include as an example, the creation of a subsidiary organization or consolidation of organizations having identical powers.
CONCLUSION
SB 1177 authorized the creation of the BGPRHT that became effective January 1, 2023.
The BGPRHT will be a critical tool to generate funding to the tri-city area for the creation of affordable housing. The BGPRHT JPA has been executed, and the Bylaws adopted.
Each represented city has made their appointments to the BGPRHT Board, and the cities of Burbank and Pasadena are in process of appointing alternate board members to attend on behalf of appointed board members as necessary (Glendale’s alternate appointment is complete). To proceed with the powers and duties of the BGPRHT, staff recommends Council appoint an Alternate to the Board of Directors to attend BGPRHT Board Meetings for Council Member Perez as necessary.
ATTACHMENT
Attachment 1 – Burbank-Glendale-Pasadena Regional Housing Trust Executed Joint Exercise of Powers Agreement
Attachment 2 – Resolution No. 23-01 Adopted Bylaws