1 STAFF REPORT
DATE: March 25, 2025
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: Approval of an Amendment to the Burbank-Glendale-Pasadena Regional Housing Trust Joint Exercise of Powers Agreement and Appointment of a Director and Alternate Director to the Burbank-Glendale-Pasadena Regional Housing Trust
RECOMMENDATION
1. Approve an amendment to the Burbank-Glendale-Pasadena Regional Housing Trust (BGPRHT) Joint Exercise of Powers Agreement (Attachment 1); and
2. Appoint a Director and Alternate Director to the Burbank -Glendale-Pasadena Regional Housing Trust.
BACKGROUND
The Burbank -Glendale-Pasadena Regional Housing Trust (Trust) is a J oint Powers Authority (JPA) created pursuant to Section 6500 et seq. of the California Government Code (Gov’t Code), and specifically authorized by Section 6539.8. State law allowed the three cities to enter into a JPA to create and operate a joint powers agency aimed at funding housing for 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.
T
he cities of Burbank, Glendale, and Pasadena approved the JPA Agreement constituting the Trust on February 28, 2023, March 28, 2023, and March 27, 2023, respectively. Per
COMMUNITY
DEVELOPMENT
2 Section 2.a of the Agreement, the Trust’s Effective Date is “ The date upon which this Agreement has been approved by each of the three Parties….” The JPA therefore came into existence on March 28, 2023, the date the last of the three member cities approved the Agreement. The Agreement was signed on May 2, 2023.
In accordance with Gov’t Code § 6539.8(b)(1) and § 5.a of the Agreement, the Board is constituted by three City officials, each of whom is a councilperson in each of the member cities. Currently, the Board is constituted as follows: Mayor Nikki Perez from Burbank (Chair), Council M ember Dan Brotman from Glendale (Vice Chair), and Mayor Victor Gordo from Pasadena (Director). Each term of service is two years and each Director is limited to two terms. It should be noted, however, that the terms limit is only found in the JPA Agreement, and not in the S tate law. Per Gov’t Code § 6539.8(b)(4)(B) and JPA Agreement § 5.c., when vacancies occur, they must be filled by the member city with the vacancy within 60 days, and the new appointee will serve out the rest of the term.
While the Directors were appointed to the Trust Board at different times prior to the effective date of the JPA Agreement, their terms did not begin until the JPA came into existence on March 28, 2023. If all three of the current directors complete their first term and are reappointed to the Board by their respective cities, the Board will fully turn over in March 2027. Further, Gov’t Code § 6539.8(b)(4)(B) provides that, “If a vacancy occurs on the board of directors, an individual shall fill the vacancy as outlined in the JPA . An appointment to fill a vacancy pursuant to this subparagraph shall be effective only for the remainder of the term of the office that became vacated.” This language is also reflected in Section 5.c of the JPA Agreement.
DISCUSSION
Proposed Amendment to the JPA Agreement
On February 5, 2025, the Board was asked to consider whether and how to stagger appointments to avoid the Board turning over all at once after a second term. Complete Board turnover is not an ideal situation as institutional and procedural knowledge contributes to the Trust’s smooth operation. The Board of Directors discussed the possibility of adding provisions in the Trust’s Bylaws to stagger the terms of Director appointment, and to address filling vacancies . The Board requested that the cities consider amending the JPA Agreement to remove the two-term limit, as it would simplify both concerns. As previously stated, the term limit requirement is a provision found in the JPA Agreement, but not in S tate law. If the term limits provision was removed from the JPA Agreement, any time a Director steps down from the Board for any reason, another Director would be appointed by their respective city to complete the term. A certain amount of staggering is likely to occur over time, as a Director’s elected office terms out or they are not able to serve on the Board for other reasons. Additionally, without term limits, whether the remainder of a filled term constitutes a full term or not becomes less of a concern, as a Director could be reappointed as the respective city sees fit. 3 The following seven (7) amendments are being proposed for the JPA Agreement to remove the two-term limit (Attachment 2):
1. The document would be renamed AMENDED BURBANK-GLENDALE-
PASADENA REGIONAL HOUSING TRUST JOINT EXERCISE OF POWERS
AGREEMENT
2. The opening paragraph would be revised as follows:
THIS JOINT EXERCISE OF POWERS AGREEMENT , as amended (the "Agreement"), is made this ___________ day of ________________, 2023 (the "Effective Date"), entered into by and between the City of Burbank, City of Glendale, and City of Pasadena (hereafter, individually, a "Party" and collectively, the "Parties"). This Agreement shall be effective as of the date upon which this Agreement has been signed by each of the Parties.
3. The following recital will be added, and all the existing paragraphs would be renumbered accordingly:
A. The Burbank-Glendale-Pasadena Regional Housing Trust was created pursuant to that exercise of joint powers authority agreement dated May 2, 2023, with an Effective Date of March 28, 2023 (the “2023 Agreement”). The Agreement amends, incorporates, and supersedes the 2023 Agreement.
4. The following language would be added to the introductory paragraph:
NOW, THEREFORE, in consideration of the mutual promises set forth below, the Parties incorporate by reference this Agreement’s recitals, and agree as follows:
5. Subsection a) of Section 1, Creation and Purpose, would be amended to read:
Creation of BGPRHT . Pursuant to the Joint Exercise of Powers Act, including Section 6539.8 of the Government Code, and the 2023 Agreement, there is hereby created athe public entity to be known as the "Burbank -Glendale-Pasadena Regional Housing Trust" was created. BGPRHT shall be is a public entity separate and apart from the Parties, and shall administer this Agreement.
6. Subsection a) of Section 2, Term and Termination, would be amended to read:
Term. ThisThe 2023 Agreement shall becomebecame effective, and BGPRHT shall comecame into existence, on the Effective Date of March 28, 2023, which date shall be the date upon which this Agreement has been was approved by each of the three Parties. This Agreement shall become effective on the date upon which and this 4 Agreement is signed by each of the three Parties, and shall thereafter continue in full force and effect until terminated pursuant to subdivision (b) of this section.
7. Subsection c) of Section 5, Board of Directors, would be amended to read:
Director Terms. The Parties shall select the Directors for the BGPRHT Board of Directors no later than the Effective Date, or at such other time as the Board determines.
Each Director shall serve a term of two years, which will coincide with their elected term of office. At a regular meeting preceding the end of the Directors' terms by at leas t 15 days, each Party shall select their new Director membership or re-select current Director membership for the new terms of office. There is a two term limit that a Director may serve. In the event of a vacancy on the Board of Directors, the Party with the vacancy shall appoint a replacement within 60 days of such vacancy , who shall serve out the remainder of term of the Director that he or she has replaced. Notwithstanding any contrary provision in this Agreement, if a vacancy occurs because the Director’s elected term naturally expires, then the appointing Party may choose whether the new Director will serve out the remainder of the term of the Director that he or she has replaced, or begin a new two year term.
Board Appointments
Staff recommends the Council re-appoint Mayor Nikki Perez for a two -year term, and Council Member Zizette Mullins as the continuing alternate. For reference, the JPA outlines the following parameters regarding the Board of Directors and alternates:
1. Requires the Board of Directors to consist of a minimum of three directors who are elected officials representing the cities involved in the JPA.
2. Requires the Board of Directors to consist of members equally appointed by each of the three representative cities.
3. Specifies that the B oard of D irectors elect a C hairperson and V ice Chairperson from among its members at the first meeting held in each calendar year.
4. Provides that the members of the Board of Directors serve without compensation.
5. Authorizes the BGPRHT to reimburse Board of D irectors for pre-approved actual expenses.
6. Requires one member of the Board of Directors to serve a term of two years.
7. 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.
5 Excerpt below:
Section 5. Board of Directors (a)(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.
The adopted BGPRHT Bylaws state that each city must appoint an Alternate and 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 3). Therefore, the appointment of an Alternate is critical to represent the City of Burbank at BGPRHT meetings and have a quorum to meet should Mayor Perez not be available for a meeting.
ENVIRONMENTAL REVIEW
The recommended actions to approve the JPA amendment and appoint a BGPRHT Board member and alternate do 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 § 15320 (changes in organization of local agencies). This exemption applies whenever local governmental agencies are organizing and this organization does not change the geographical area in which previously existing powers are exercised, and include as an example, the creation of a s ubsidiary organization or consolidation of organizations having identical powers. The JPA amendment and appointments fall under the exemption.
FISCAL IMPACT
There is no fiscal impact associated with the approval of the JPA amendment and appointments to the BGPRHT Board.
CONCLUSION
The BGPRHT has been a critical tool to generate funding to the tri -city area for the creation of affordable housing. Staff recommends Council approve the JPA amendment removing Director term limits from the Agreement and re-appoint Mayor Nikki Perez for a two-year term, and Council Member Zizette Mullins as the continuing alternate to the Board of Directors.
6 ATTACHMENTS
Attachment 1 – Amended Burbank -Glendale-Pasadena Regional Housing Trust Joint Exercise of Powers Agreement
Attachment 2 – Amended Burbank -Glendale-Pasadena Regional Housing Trust Joint Exercise of Powers Agreement Redline
Attachment 3 – Burbank-Glendale-Pasadena Regional Housing Trust Resolution and Adopted By Laws