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HomeMy WebLinkAbout14 TTWHA Update and Budget AGENDA ITEM # 14 Page 1 of 3 MEETING DATE: May 5, 2021 TO: Board of Directors FROM: Steven Poncelet, Public Information and Strategic Affairs Director SUBJECT: Consideration of Truckee Tahoe Workforce Agency Budget APPROVED BY______________________________ Brian C. Wright, Interim General Manager RECOMMENDATION: a) Authorize the District’s representative or alternate to the Truckee Tahoe Workforce Housing Agency (TTHWA) Board to approve the TTWHA’s July 1, 2021 to June 30, 2022 budget. b) Approve the District’s contribution of $14,688, for 2021-2022 Fiscal Year BACKGROUND: The District has for a long time identified employee access to achievable local housing as an important need for employee attraction and retention. The District has also had a need for short-term/overnight housing for staff to improve emergency response; particularly during winter storms. To address local housing challenges, District staff has been collaborating with local agencies, participated in the Mountain Housing Council 1.0, and are seeking new ways to address the local housing crisis. Starting in 2018, the District began discussing a formal partnership with Tahoe Truckee Unified School District, Tahoe Forest Hospital District, and Truckee Tahoe Airport District (Member Agencies) to leverage resource and collaborate on ways to improve the Member Agencies employee’s access to housing. Through a series of meeting and investigations, it was determined that forming a Joint Power Authority (JPA) for housing was the best path forward. Only July 17, 2019, the District’s Board authorized the General Manager to execute documents related to the development of a JPA formation. The Board also authorized $18,477 in formation funding which was contributed in the same amount from each Member Agency. On October 2, 2019, the District’s Board adopted Resolution 2019-23, approving and authorizing the execution of the Joint Exercise of Powers Agreement creating the Truckee Tahoe Workforce Housing Agency. The Board further authorized initial agency funding in the amount of $32,000, out of a total TTWHA budget of $300,000, to cover the District’s portion of expenses up to June 30, 2021. The District’s portion of the budget was allocated based on budgeted headcount for each Member Agency. In mid-2020, the TTWHA Board started to focus on the initial steps needed to define the Page 2 of 3 key goals and activities of TTWHA. This included the development of a work plan, creation of a website, a TTWHA Board retreat, and conducting a TTWHA Employee Housing Needs Study to better understand the scope of the housing issues and the needs of the Member Agencies employees. The TTWHA entered into a contract with WSW Consulting, Inc. to conduct a housing survey of all Member Agencies employees (over 1,650 total employees). The purpose of the study was to understand the Impact of housing cost/availability; employee housing problems/needs and gaps; and potential programs. The methodology included: employee surveys; focus groups and interviews; housing market information; and review of existing TTWHA Member Agencies’ employee housing programs. Over 50% (828) of the Member Agencies employees completed the survey and results were analyzed at the macro level for all participants but also broken down by each member agency throughout the report. In general, the survey documents that employee housing is a major issue overall for recruitment and retention. This includes: new employees needing to find housing (rent or own); renters wanting to buy, and owners that want to move-up or repair. Some concerning results include 16% of Member Agencies employees considering leaving employment due to housing concerns and 43% saying that it is very difficult to find housing. Since the completion and dissemination of the employee housing survey towards the end of 2020, TTWHA has been busy maturing the organization while executing immediate programs to start helping employees while exploring longer-term solutions and partnerships. This includes the: Employee ‘Concierge Services; Housing Match Program, TTWHA Housing Work Plan development; and regional partnerships/developer cultivation. The results of TTWHA in just a very short time are impressive with support of over 80 Member Agency employees so far, with 10 families currently in housing as a result of TTWHA efforts, and another 5 will likely have invitations to buy at Hopkins by July. TTWHA’s continues to develop and refine programs and services and the rate of participation is increasing. TTWHA has also become an integral part of the housing crisis conversation and efforts to address the problem. The TTWHA JPA model is also creating collaborative discussions across our community on how agencies can effectively work together to solve problems and create community value. While the results to date are encouraging, there remains a significant amount of work to do. The proposed TTHWA July 1, 2021 to June 30, 2022 budget is Attachment 1 and the District’s allocated portion, based on budgeted headcount plus contractors/part-time who require housing, is $14,688 out of a total TTWHA budget of $400,000. This proposed budget includes $245,000 for operating expenses and $155,000 for housing projects should members within TTWHA chose to start pursuing a project. The proposed TTWHA budget will continue to evolve the organization and existing programs while exploring more substantial opportunities such as consideration of master leasing programs or actual development of workforce housing on publicly-owned land. The budget includes on-going TTWHA Member Agency employee education programs on housing opportunities and support. Page 3 of 3 Also being discussed are the potential benefits of TTWHA Member Agency expansion. There is interest from other local agencies, including the Town of Truckee, Nevada County, and Placer County, who also are experiencing the same workforce housing challenges. The TTWHA Board has begun discussions on how member expansion could occur both structurally and financially but, in general, additional TTWHA members would reduce individual agency costs and increase overall capacity. It should be noted that the proposed budget covers the organization and employee support programs and any future project, such as master leasing or construction of housing for our employees, would be discretionary on the part of each Member Agency. Any such project would be brought before the District’s Board separately for consideration. Objectives and Goals This item is in support of the following objectives and goals identified by the District. 1.05.020 Objectives: 1. Responsibly serve the public. 5. Manage in an environmentally sound manner. 6. Manage the District in an effective, efficient, and fiscally responsible manner. 1.05.030 Goals: 1.3 Promote communication and cooperation with other public and private agencies. 5.5 Minimize the negative impact of District operations on the environment. 6.1 Employ a qualified and productive workforce. FISCAL IMPACT: The District’s allocated portion of the Tahoe Truckee Workforce Housing Agency July 1, 2021 – June 30, 2022 budget is $14,688. The initial funding for the Truckee Tahoe Workforce Housing Agency along with the July 1, 2021 – June 30, 2022 budget were not included in the District’s FY20 and FY21 budgets as the final decision to join was made after the District’s budgets were approved. Sufficient funds exist in the District’s FY21 Electric and Water General Fund for the initial expenses and the projected FY22 and FY 23 expenses will be included in the next District budget for Board consideration. ATTACHMENTS: Attachment 1: Truckee Tahoe Workforce Housing Agency July 1, 2021 – June 30, 2022 Budget