Formalization of Arroyo Verdugo Subregion as a JPA April 3, 2017 City Council Meeting Item 11

Recommendaton Find the action is exempt from CEQA Authorize the City Manager to enter into an “Arroyo Verdugo Communities Joint Powers Authority” Agreement in substantially the form attached hereto with final form approved by the City Attorney’s Office Appoint a Representative and Alternate Representative to the Authority’s Governing Board

Arroyo Verdugo Subregion What is AVS: An informal policy body coordinating issues of common interest, most related to transportation Five cities are: Burbank Glendale La Canada Flintridge Pasadena South Pasadena Being a member of the AVS does not preclude a city from being a member of a COG In 1993 the Arroyo Verdugo Subregion was initially formed to coordinate regional areas of interest. The Subregion includes the cities of Glendale, Burbank, La Canada Flintridge, Pasadena and South Pasadena. The Arroyo Verdugo Subregion Steering Committee, made up of elected officials from all five member cities, currently meets twice per year. Presently the Subregion is an informal body tasked primarily with coordinating regional transportation issues. Burbank and Glendale are members of the San Fernando COG

New Transportation Funding Passage of Measure M Cities opted to receive Measure M funds through the AVS and not their respective COG’s Greater ability to determine how funds are to used Better management and control of funding Less competition with other agencies for use of funds Focus on transportation coordination and policy More commonalities of interest among the member agencies Requires a legal entity (existing or new) to receive and expend the Measure M funds

JPA vs COG JPA COG It is more formal than the current AVS structure Single focus on transportation Allows the AVS cities to receive funds, expend funds, enter into legally binding agreements, acquire property, sue and be sued, and hire personnel COG Engages in many activities that are wide-ranging Manage and coordinates projects Inter-agency coordination A JPA is currently the most appropriate means of formalization for the Arroyo Verdugo Communities to continue the coordination of transportation planning activities, and begin to receive and allocate transportation funds.

Formation of JPA Adoption of JPA creating the “Arroyo Verdugo Communities Joint Powers Authority” Membership consist of existing 5 cities and will add the County Supervisor’s office representing LaCresenta/Montrose unincorporated areas Creation of Governing Board with one rep and one alternate from each member agency Purpose is transportation policy/coordination but can expand in future Maintain current staffing Since the geographic area that encompasses the Arroyo Verdugo Subregion includes portions of Los Angeles County, a representative of the County must be included in the newly formed JPA. Los Angeles County will receive Measure M and Measure R funds via the JPA so they are entitled to representation on this body. This will increase the membership in the proposed Arroyo Verdugo Communities JPA from five to six.

Fiscal Impact Revised Dues Agencies: Current Proposed Burbank 3,809 6,739 Glendale 5,100 9,211 LaCanada Flintridge 2,484 4,248 Los Angeles County - 3,575 Pasadena 4,421 7,918 South Pasadena 2,230 3,764 $ 18,044 $ 35,455 Reason for increase: increase the number of meetings from 2 to 4 cost of insurance of $12, 500 Dues for the current Arroyo Verdugo Subregion are calculated from a ½ weighted share based on population, assessed value and land area and ½ equally split among all six members. The new costs related to the transition from the existing Arroyo Verdugo Subregion to a JPA are predominately related to the need to acquire insurance. Since a JPA is subject to liability exposure, (contractual, general, employee) insurance is needed at an initial cost of $12,424 annually. There are also minor initial costs related to the required reporting and filing of the new JPA with the California Secretary of State.

Next Steps Each legislative body is being asked to consider and adopt the JPA agreement Staff is in process of securing general liability/officers errors & omission liability coverage Filing of incorporation with the Secretary of State’s Office as well as County of Los Angles Appoint Pasadena’s representative and Alternate South Pasadena, Glendale and LCF have already adopted this