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15 Tahoe Housing Agency Joint Powers Authority
AgendaItem#r_15IRUCKEEDONNERDistrictACTIONTo:BoardofDirectorsFrom:ReginaWiseDate:July17,2019Subject:ConsiderationfortheDistricttoProceedinFormingoftheTruckee____TahoeHousingAgencyJointPowersAuthority_______________1.WHYTHISMATTERISBEFORETHEBOARDThisitemisbeforetheBoardtoconsidertheDistrict’sparticipationinformingtheTruckeeTahoeWorkforceHousingAgency,aproposedJointPowersAuthority(JPA)comprisedoftheTahoeForestHospitalDistrict,TahoeTruckeeUnifiedSchoolDistrict,TruckeeTahoeAirportDistrictandTruckeeDonnerPublicUtilityDistrictasfoundingmembers.2.HISTORYOnDecember5,2018,staffconductedaworkshopwiththeBoarddiscussingparticipationinaJPAforemployeehousing.TheBoardsdirectiontostaffwastocontinuetopursuethisopportunityasemployeehousingintheDistrictisaknownissue.3.NEWINFORMATIONInJanuary2019,thefouragenciesengagedMunicipalResourceGroup(MRG)toassistintheevaluationofthefeasibilityofcreatingaJPAtosupportworkforcehousingfortheagencies’respectiveneeds.InCalifornia,aJPAisonemeansbywhichpublicagenciescollaborateinthepursuitofacommonobjectivewithinthescopeofeachoftheindividualagencies’missions.MRGconductedaninitialassessmentoftheagenciesandconcludedthataJPAcouldadvancetheworkforcehousingneedsofeachoftheagencies.MRGalsoretainedlegalcounseltoevaluatewhethertheproposedstructurewaslegallyviable.AdraftJPATermSheet(Attachment1)wasdevelopedbyMRGincollaborationwiththeagenciesstaffandlegalcounsel.ArepresentativefromMRGwillbeattheBoardMeetingtopresenttheworktodate.ThedraftJPATermSheetwasdevelopedtoprovidetheJPAflexibilityinrespondingtoopportunitiestoacquireworkforcehousingforagencyemployees.EachoftheagenciesBoardshavebeenpresentedthesedocumentsasfollows:.TruckeeTahoeAirportDistrict-June26,2019;.TahoeForestHospitalDistrict-June27,2019;.TahoeTruckeeUnifiedSchoolDistrict-July10,2019;and.TruckeeDonnerPublicUtilityDistrict-July17,2019(Tonight) AlloftheagenciesthathavebeenpresentedwiththedocumentstodatehaveapprovedthedraftJPATermSheetandprovideddirectiontostafftoproceedwiththedevelopmentofJPAformation.ThisuniqueopportunitytoparterwithotheragenciesforhousingbringsalotofpotentialbenefitsinregardstohousingtotheDistrict.Someofthehighlightsinclude:.TheJPAshiftsliabilityawayfromtheDistrictinregardstomanagingandmaintaininghousing;.ThestructureoftheJPAprovidesflexibilitywithinthegrouponsharingunitsforvariousreasons;and.TheJPAstructureallocatesanequalvotetoallmembers.Attachment2isthememorandumfromlegalcounselretainedbyMRG,Richards&WatsonGershon(RWG),aSanFranciscobasedlawfirmwithsignificantJPAexperience.ThescopewastoprovidelegaladviceregardingthecreationofaJPA.RWGevaluatedeachoftheproposedMemberAgencies’respectiveformationdocumentsandpreparedtheattachedmemo.ThememoaddresseskeylegalquestionsrelatedtotheformationoftheproposedJPA.RWGalsoreviewedandassistedinfinalizingthedraftJPATermSheet.Attachment3isdraftfirstyearworkprogram.Onceformed,theBoardoftheJPAwouldestablishgoals,objectivesandworkprograms.StaffisnotrequestingfundingtosupporttheestablishmentoftheJPAinthisaction.IftheproposedMemberAgencyBoardsdirectstafftodevelopformationdocuments,whentheformationdocumentsarereturnedtotheboardsarequestforseedfundingwillalsobepresentedatthattime.InitialseedfundinghasbeendiscussedamongtheAgencies.Apreliminaryestimateoffirstyearseedfundingis$300,000.Thisfundingwouldcovercostsofamanager,legal/audit/accountingfeesandprojectbasedanalysisofworkforcehousingopportunities.AproposedallocationofthefirstyearseedfundingamongtheMemberAgencieswouldbepresentedtothefourboardswhentheboardsconsiderapprovaloftheJPAformationdocuments.IftheBoarddirectsstafftoproceedtodevelopformationdocuments,staffwillworkwithMRG,legalcounselandtheotherMemberAgenciestoincorporateinputfromtherespectiveBoardsanddeveloptheJPAformationdocuments.ItisanticipatedthattheJPAformationdocumentswillbepresentedtotheMemberAgencyBoardsforconsiderationinthefall2019.4.FISCALIMPACTTheDistrict’sinvestmentintheseeffortstodateislessthan$10,000.FutureannualexpenditureswillbebettersolidifiedandincludedatafurtureBoardmeeting.ThisexpenseiscurrentlynotincludedintheFY19ApprovedBudgetbutwouldbeincludedintheproposedFY20andFY21Budgetcurrentlybeingcompiled. 5.RECOMMENDATION1)AuthorizetheGeneralManagertoexecutedocumentsrelatedtothedevelopmentofaJPAformation;2)Authorizeexpendituresofanottoexceedaboutof$20,000forFY19fortheformationoftheJPA./ReginaWiseMichaelD.HolleyFinance&AccountingManagerGeneralManager AttachmentIJointPowersAgreement(JPA)BetweenTahoeTruckeeUnifiedSchoolDistrict,TahoeForestHospitalDistrict,TruckeeTahoeAirportDistrictandTruckeeDonnerPublicUtilityDistrictTermSheetRECITALSTheJPAisbaseduponthefollowing:TheMemberAgencies,desirousofimprovingthequalityandlevelofworkforcehousingavailablefortheiremployeesthroughthesharingofresourcesandexpertiseherebyestablishaJointPowersAuthorityentitledtheTruckeeTahoeWorkforceHousingAgency.1.PURPOSEThepurposeoftheJPAistosupportandpromotethedevelopmentofworkforcehousingforMemberAgencieswithintheboundariesoftheMemberAgencyjurisdictions.TheJPAmayacquire,developorcontractforworkforcehousingforMemberAgenciesandsupporthousingprogramsthatprovideworkforcehousingtoMemberAgencyemployees.2.DEFINITIONSAlistofDefinedTermsinthisAgreementwillbedevelopedandincludedintheFinalJPAAgreement.3.ESTABLISHMENTOFTHEJPA3.1SeparateLegalEntity.TheJPA,asajointpowersauthorityisaseparateentityfromtheMemberAgenciesandisresponsiblefortheadministrationofthisAgreement.3.2FilingofNoticeswithSecretaryofStateandCountyClerk.Withinthirty(30)daysaftertheeffectivedateofthisAgreement,theJPAshallcauseanoticeofthisAgreementtobepreparedandfiledwiththeofficeoftheCaliforniaSecretaryofStateandtheStateControllercontainingtheinformationrequiredbyCaliforniaGovernmentCodeSection6503.5.Withinseventy(70)daysaftertheeffectivedateofthisAgreement,theJPAshallcauseastatementoftheinformationconcerningtheIPA,requiredbyCaliforniaGovernmentCodeSection53051,tobefiledwiththeofficeoftheCaliforniaSecretaryofState,theElDoradoCountyCountyClerk,theElDoradoCountyLocalAgencyFormationCommission(LAFCO),thePlacerCountyCountyClerk,thePlacerCountyLAFCO,theNevadaCountyCountyClerkandtheNevadaCountyLAFCOstatingthefactsrequiredtobestatedpursuanttosubdivision(a)ofGovernmentCodeSection53051.99904-0052\2303962v1.docJune4,2019 4.TERMTheAgreementshallbecomeeffectivewhenallMemberAgencieshaveexecutedtheAgreement.TheAgreementwillbeeffectiveuntildissolvedthroughproceduresoutlinedinthisdocument.5.POWERSANDOBLIGATIONSOFAUTHORITY5.1GeneralPowers.TheJPAshallhavethepowerinitsownnametoexerciseanyandallcommonpowersofitsMemberAgenciesandsuchadditionalpowersaccordedtoitbylawreasonablyrelatedtothepurposesoftheIPA,including,butnotlimitedto,thepowersto:a.Acquire,lease,construct,own,manage,maintain,disposeoforoperate(subjecttothelimitationsherein)anybuildings,worksorimprovementswithintheboundariesoftheMemberAgenciesdeemednecessarybytheBoardtoprovideworkforcehousingonoroffMemberAgencyproperties;b.Acquire,hold,manage,maintain,ordisposeofanyotherpropertywithintheboundariesoftheMemberAgenciesbyanylawfulmeans,includingwithoutlimitationgift,purchase,lease,lease-purchase,license,eminentdomainorsaletosupportthedevelopmentofworkforcehousingforMemberAgencies;c.DevelopprogramsthatprovidememberagencyemployeestheabilitytoacquirehousingoraccessaffordablerentalhousingthatmaynotbeownedoroperatedbytheJPA;d.Seek,receiveandadministerfundingfromanyavailablepublic,non-profit,foundationorprivatesource,includinggrantsorloansunderanyavailableFederal,StateandlocalprogramsforassistanceinachievingthepurposeoftheJPA;e.Makeandenterintoothercontracts;f.Employagents,officersandemployees;g.Incurallauthorizeddebts,liabilities,andobligations,includingissuanceandsaleofbonds,notes,certificatesofparticipation,bondsauthorizedpursuanttotheMelloRoosLocalBondPoolingActof1985,CaliforniaGovernmentCodeSections6584etseq.(asitnowexistsormayhereafterbeamended)oranyotherlegalauthoritycommontotheMembersorgrantedtotheIPAandsuchotherevidencesofindebtedness,subjecttothelimitationshereintoaccomplishthestatedpurposesandobjectivesoftheJPA;h.Receivegifts,contributionsanddonationsofproperty,funds,servicesandotherformsoffinancialorotherassistancefromanypersons,firms,corporationsorgovernmentalentities;i.Sueandbesuedinitsownname;-2-99904-0052\2303962v1.docJune4,2019 j.SeektheadoptionordefeatofanyFederal,StateorlocallegislationorregulationnecessaryordesirabletoaccomplishthestatedpurposesandobjectivesoftheJPA;k.Adoptrules,regulations,policies,bylawsandproceduresgoverningtheoperationoftheJPA;1.ToinvestmoneypursuanttoCaliforniaGovernmentCodeSection6505.5thatisnotrequiredfortheimmediatenecessitiesoftheJPA,astheJPAdeterminesisadvisable,inthesamemanneranduponthesameconditionsaslocalagencies,pursuanttoSection53601oftheCaliforniaGovernmentCodeasitnowexistsormayhereafterbeamended;m.CarryoutandenforcealltheprovisionsofthisAgreement;andn.Exerciseallotherpowersnotspecificallymentionedherein,butcommontoMemberAgencies,andauthorizedbyCaliforniaGovernmentCodeSection6508asitnowexistsormayhereafterbeamended.5.2SpecificPowersandObligations.TheJPAshallhavethepowerinitsownnametoexercisethefollowingspecificpowersandobligationsto:a.ConductanauditoftherecordsandaccountsoftheJPAannuallybyanindependentcertifiedpublicaccountantandcopiesofsuchauditreportshallbefiledwiththeStateController,theCountyAuditor,andshallbeprovidedtotheMemberAgenciesnolaterthanfifteen(15)daysafterreceiptofsuchauditreportsbytheJPA.b.UseanystatutorypoweravailabletoitforissuanceandsaleofanyrevenuebondsorotherevidencesofindebtednessnecessaryordesirabletofinancetheexerciseofanypoweroftheJPA.c.Thedebts,liabilitiesandobligationsoftheJPAshallnotbethedebts,liabilitiesandobligationsoftheMemberAgenciesbutonlyoftheJPA;andd.Defend,holdharmlessandindemnify,tothefullestextentpermittedbylaw,eachMemberAgencyfromanyliability,claims,suitsorotheractions.6.BOARDOFDIRECTORS6.1IPAGoverningBoard.TheJPAshallbegovernedbyaBoardofDirectorsconsistingofone(1)votingrepresentativeandone(1)alternatefromeachMemberAgency.AlternateshallserveintheabsenceoftheBoardMemberfortheagencytheyrepresent.AlternateshavenovotingpowerotherthanwhenservingforanabsentBoardMember.6.2Qualifications.JPABoardmembersshallbethechiefexecutiveofficerorgeneralmanageroftheMemberAgencyorthatofficial’sdesignee.6.3BoardOfficers.TheBoardshallannuallyselectoneofitsmemberstoserveasChairandonememberasViceChair.-3-99904-0052\2303962v1.docJune4,2019 a.IftheChairisunabletocontinueservingontheBoard,thentheVice-ChairshallbecomeChair.AnewViceChairwillthenbeselectedfromanotherMemberAgency.b.IftheViceChairisunabletocontinueservingontheBoard,anewViceChairwillbeselected.c.TheChairshallpresideoverallmeetingsoftheBoardandperformsuchotherdutiesasmaybeimposedbytheBoardinaccordancewithlawandthisAgreement.d.TheVice-ChairshallpresideoverallmeetingsoftheBoardintheChair’sabsenceandperformsuchotherdutiesasmaybeimposedbytheBoardinaccordancewithlawandthisAgreementwhentheChairisabsent.6.4AdditionalOfficersandConsultants.TheBoardmayappointanyadditionalofficersdeemednecessaryordesirable.TheBoardmayalsoretainsuchconsultantsorindependentcontractorsasmaybedeemednecessary.6.5BondingRequirements.Theofficersorpersonsdesignatedtohavechargeof,handle,orhaveaccesstoanyfundsorpropertyoftheJPAshallbesodesignatedandempoweredbytheBoard.EachsuchofficerorpersonmayberequiredtofileanofficialbondwiththeJPAinanamountestablishedbytheBoard.6.6Subcommittees.TheBoardmaycreatepermanentoradhocsubcommitteestogiveadvicetotheBoardonsuchmattersasmaybereferredtosuchsubcommitteebytheBoard.6.7Meetings.TheBoardshallholdpubliclynoticedmeetings.TheBoardshallmeetnolessthantwotimesperyear.MeetingsshallbeconductedandnoticedinaccordancewiththeprovisionsoftheRalphM.BrownAct.6.8Quorum.ThreeBoardMembersshallconstituteaquorumfortransactionofJPAbusiness.6.9Voting.AllvotingpowersoftheJPAshallresideintheBoard.6.10RequiredVotesforBoardActions.MyactionoftheBoardshallrequireanaffirmativevoteofamajorityoftheDirectorsontheentireBoard,exceptthefollowingactionsshallrequireaunanimousvoteoftheBoard:a.Addingnewmemberagencies.b.Issuingbondsorotherformsofindebtedness.c.Approvingcommencementofeminentdomain.d.TerminationofthisAgreementanddissolutionofJPA.-4-99904-0052\2303962v1.docJune4,2t)19 6.11ApprovalofAnnualBudget.PriortoApril1eachyear,thedesignatedManagershallprepareandpresentaproposedbudgettotheBoardforitsreviewandapproval.PriortoJuly1ofeachyear,theBoardshallapprovethefinalbudgetforthefollowingfiscalyear.6.12Rules.TheBoardmayadoptfromtimetotimesuchbylaws,rules,andregulationsfortheconductofmeetingsoftheBoardandoftheaffairsoftheJPA.6.13Minutes.TheSecretaryshallcauseminutesofallmeetingsoftheBoardtobedrafted.UponapprovalbytheBoard,suchminutesshallbecomeapartoftheofficialrecordsoftheJPA.6.14ConflictsofInterest.a.CaliforniaPoliticalReformAct.Boardmembersshallbeconsidered“publicofficials”withinthemeaningoftheCaliforniaPoliticalReformActof1974,asamended,anditsregulations,forpurposesoffinancialdisclosure,conflictofinterestandotherrequirementsofsuchAct.b.LevineAct.Boardmembersare“officials”withinthemeaningofCaliforniaGovernmentCodeSection84308(the“LevineAct”)andsubjecttotherestrictionsofsuchactontheacceptance,solicitationordirectionofcontributions.6.15DisputeResolution.ShouldanydisputeamongtheMemberAgenciesariseoutofthisAgreementandshouldtheMemberAgenciesbeunabletoresolvethedispute,theMemberAgenciesshall,atthewrittenrequestofanyMemberAgency,meetinmediationandattempttoreacharesolutionwiththeassistanceofamutuallyacceptablemediator.7.POWERSANDDUTIESOFGOVERNINGBOARD7.1PowersandDuties.DescribesthepowersanddutiesoftheBoardofDirectors.Examplesofpowersinclude:a.ReviewandrecommendanannualbudgettotheMemberAgenciesforapproval;b.Makeandenterintocontractsorsub-contracts;c.Incurdebt,liabilitiesandobligationsonbehalfoftheJPAasauthorizedbylaw;a.InvestJPAfundspursuanttotheinvestmentpolicyoftheJPA;e.AppointtheTreasurertohavecustodyoverallJPAfunds(maybeTreasurerofoneofmemberagencies);f.Receivecontributions,donationsorgrantsofproperty,funds,services,orotherformsofassistancefromanysource;-5-99904-0052\2303962v1.docJune4,2019 g.CoordinateJPAactivitieswithotherJointPowersAuthoritiesorpublicagenciesestablishedforsimilarpurposesinpursuingthecommonpurposessetforthabove;h.AppointaLegalAdvisorfortheJPA;i.Appoint,suspendandorterminatetheManagerorenterintoandterminateagreementsforManagementServices;andj.AppointSecretary.8.OPERATIONSANDFACILITIES8.1PrincipalOffice.TheprincipalphysicalofficeoftheJPAshallbeestablishedbyBoardresolutionatoneoftheMemberAgenciesofficesoratanothersuitablelocation.8.2AssumptionofResponsibilitiesbytheJPA.AssoonaspracticableaftertheeffectivedateofthisAgreement,anoticeofanorganizationalmeetingoftheBoardshallbepublished.DuringthefirstmeetingtheBoardshalldesignateaManagerorengageManagementServices.8.3DelegationofAuthority;TransferofRecords,Accounts,FundsandProperty.TheJPAshallestablishproceduresbywhichitmayreceivethetransferofrecords,accounts,fundsorpropertyfromMemberAgenciesorotherentities.8.4UseofJPAFacilities.PriortothedevelopmentoracquisitionofanypropertybytheJPAaspecificprogramdesignatingtheaccesstoresidentialunitsbymemberagenciesshallbeestablished.Theaccesstounitsshallbeestablishedinanequitablemanner(e.g.proportionaltothevalueofassetscontributedtothedevelopment).9.EMPLOYEERELATIONS9.1StatusofEmployeesoftheJPA.IftheJPAhiresemployees,noneoftheemployeesoftheJPAshallbedeemedtobeemployedbyanyMemberAgencyortobesubjecttoanyoftherequirementsofsuchMemberAgencybyreasonoftheiremploymentbytheJPA.9.2EmployeeRelations.IftheJPAhiresemployees,theBoardshallmaintainEmployer-EmployeeRelationsProceduresandPersonnelRulesandRegulationsapplicabletotheIPA.10.MANAGEROFTHEJPA10.1PowersandDuties.TheJPABoardshallappointaManageroracquireManagementServices.TheManagermaybeanemployeeoftheJPA,astaffpersonofoneoftheMemberAgencies,aconsultant,anindependentcontractor,anemployeeofanotherentitywhocanperformtheresponsibilitiesanddutiesdescribedinthissectionJPA.TheManagershallhavethefollowingpowers,responsibilitiesandduties:-6-99904-0052\2303962v1.docJune4,2019 a.Planning,coordinatingandsupervisingtheoperationoftheJPAonaday-to-daybasistoensurethatthepoliciesanddirectionoftheBoardareimplementedoperationallyandadministratively.b.MakingrecommendationstotheBoardregardingtheoperationsoftheJPA.C.IftheJPAhiresemployees,supervisingandmanagingtheJPApersonnel.d.IftheJPAhiresemployees,hiring,promoting,demoting,imposingdisciplinaryactionand/orterminatingemployeesoftheJPA.e.IftheJPAhiresemployees,coordinatingandsupervisingalltrainingofJPAemployees.f.EstablishingpoliciesandproceduresfortheJPAinordertoimplementdirectivesfromtheBoard.g.PreparingtheannualbudgetforsubmissiontotheBoard.11.INSURANCEANDLIABILITY11.1InsuranceCoverage.TheJPAshallberesponsibleforobtaininginsurancecoverageforitsactivities,astheBoarddeemsappropriate.11.2LimitationonLiability.Nodebt,liability,orobligationoftheJPAshallconstituteadebt,liabilityorobligationofanyMemberAgency.ExceptasexpresslyauthorizedbytheMemberAgencies,noMemberAgencyshallberesponsiblefortheactsandomissionsofanotherMemberAgency’sofficersoremployeesnorshallaMemberAgencyincuranyliabilitiesarisingoutoftheservicesandactivitiesofanotherMemberAgency’sofficersoremployees.12.ADDITIONOFMEMBERAGENCIESTheadditionofotheragenciestotheJPAshallrequiretheunanimousconsentoftheBoard.RecognizingtheeffortoftheoriginalMemberAgenciestoestablishtheJPA,theBoardmayrequireafinancialcontributiontobecomeamemberoftheJPA.13.ALLOCATIONOFHOUSINGUNITSINJPAPROJECTSAMONGMEMBERAGENCIESPriortotheacquisitionofhousingunitsinaProject,theMemberAgenciesshalldeterminetheinvestmentofeachMemberAgencyintotheProject.ThenumberofhousingunitsallocatedtoeachMemberAgencyfromtheprojectshallbeproportionaltotheMemberAgency’sinvestmentintheProject.MemberAgenciesshallnotberequiredtoparticipateineveryJPAprojectinaccordancewithproceduressetforthintheAgreement.-7-99904-0052\2303962v1.docJune4,2019 14.OFfEROFHOUSINGUNITSINJPAPROJECTSTONON-MEMBERAGENCIESIntheeventaJPAProjectcontainsmorehousingunitsthanarerequiredbyMemberAgencies,thoseadditionalunitsmaybeofferedtonon-memberagencies.TheagreementbetweenJPAandnon-memberagenciesshallattempttofullyrecovercostsincurredbytheJPAtocreatetheunit.15.MAINTENANCEANDOPERATIONCOSTS:COSTALLOCATION15.1RecordsandAccounts.TheJPAshallcausetobekeptaccurateandcorrectbooksofaccount,showingcapitalcosts(ifany),specialservicescosts,andmaintenanceandoperationcostsoftheJPA.TheaforementioneddescribedbooksandrecordsshallbeopentoinspectionatalltimesduringnormalbusinesshoursbyMemberAgencies.TheTreasurershallcauseallfinancialrecordsoftheJPAtobeauditedbyanindependentpublicaccountantorcertifiedpublicaccountantatleastonceafiscalyearandacopyoftheaudittobedeliveredpromptlytoeachMemberAgency.15.2AllocationofOperatingExpenses.UntilchangedbymutualagreementoftheMemberAgencies,theoperatingcostsandexpensesinthebudgetshallbesharedequallybytheMemberAgenciesuntilsuchtimeashousingunitshavebeensecuredbytheJPA.AfterhousingunitshavebeensecuredbytheJPA,operatingcostsshallbedistributedinproportiontothetotalnumberofJPAhousingunitsallocatedtoeachmemberagencyatthebeginningofthepriorfiscalyear.16.WITHDRAWALOFAMEMBERAGENCYFROMTHEJOINTPOWERSAUTHORITYAMemberAgencymaywithdrawfromthisAgreementbyfilingwrittennoticeofintentiontodosowiththeotherMemberAgenciesatleasttwenty-four(24)monthsinadvanceoftheintendedwithdrawaldate.ThissectionmaynotbeexecutedpriortoJuly1,2023.ThewithdrawalofanyMemberAgencyshallnotterminatethisAgreementprovidedatleasttwo(2)MemberAgenciesremain.WithdrawalshallnotrelievetheMemberAgencyfromanyfinancialcommitmentsassociatedwithindividualworkforcehousingprojectsthatthewithdrawingmemberagreedtoparticipateinpriortotheeffectivedateofthewithdrawal.17.DISPOSITIONOFASSETSUPONWITHDRAWALOFAMEMBERAGENCYThewithdrawalofanyMemberAgencyshallnotterminatethisAgreementprovidedatleasttwo(2)MemberAgenciesremain.NoMemberAgency,bywithdrawing,shall,exceptasmaybeagreedtobytheremainingMemberAgencies,beentitledtopaymentorreturnoffundspaidorpropertydonated,ifany,bythewithdrawingMemberAgencytotheJPAortoanydistributionofitsassets.18.TERMINATION;DISSOLUTIONANDDISPOSITIONOFASSETSThisAgreementmaybeterminatedandtheJPAdissolvedupontheconsentofallMemberAgencies.UponterminationofthisAgreementanddissolutionoftheJPA,propertyownedbytheMemberAgenciesshallbedisposedofbytheIPA.JPAfundsshallfirstbeusedtopay-8-99904-0052\2303962v1.docJune4,2019 expenses,debts,liabilitiesandobligationsoftheJPAandthenallocatedbaseduponthefundingformulathencurrentunderSection15.2above.19.CAPITALASSETSCapitalassetsofMemberAgenciesmaybetransferredtotheJPAaccordingtothedispositionrulesoftheMemberAgencies.20.CONTRIBUTIONSANDADVANCESPursuanttoGovernmentCodeSection6504,theMemberAgenciesmayintheirdiscretionmakefinancialcontributions,loansoradvancestotheJPAforthepurposesoftheJPAsetforthinthisAgreement.Therepaymentofsuchcontribution,loansoradvanceswillbeonthewrittentermsagreedtobytheMemberAgencymakingthecontribution,loanoradvanceandtheJPA.21.LIMITATIONSONPOWERSAsrequiredbyGovernmentCodeSection6509,thepoweroftheJPAissubjecttotherestrictionsuponthemannerofexercisingpowerpossessedbyTahoeTruckeeAirportDistrict.22.AMENDMENTThisAgreementmaybeamendedbyamajorityvoteoftheentireBoardprovidedthatnoticeoftheproposedamendmentisprovidedtothegoverningbodiesofeachoftheMemberAgenciesatleast30daysinadvanceofitsconsiderationbytheBoard.23.NOTICEAnynoticerequiredtobegivenordeliveredbyanyprovisionofthisAgreementshallbepersonallydeliveredordepositedintheU.S.Mail,registeredorcertified,postageprepaid,addressedtotheMemberAgenciesattheiraddressesasreflectedintherecordsoftheJPA,andshallbedeemedtohavebeenreceivedbytheMemberAgenciestowhichthesameisaddressedupontheearlierofreceiptorseventy-two(72)hoursaftermailing.24.SEVERABILITYIfaprovisionoftheAgreementisfoundtobeillegalorunenforceable,thevalidityoftheremainingportionsorprovisionsshallnotbeaffected.25.SUCCESSORSThisAgreementshallbebindinguponandaccruetothebenefitofanysuccessorofaMemberAgency.26.ASSIGNMENTANDDELEGATIONNoMemberAgencymayassignanyrightsordelegateanydutiesunderthisAgreementwithoutthewrittenconsentofallotherMemberAgencies.-9-99904-0052\2303962v1.docJune4,2019 27.COUNTERPARTSThisAgreementmaybeexecutedinone(1)ormorecounterparts.28.INTEGRATIONThisAgreementrepresentsthefullandentireAgreementamongtheMembers.29.EXECUTIONThelegislativebodiesoftheMembershaveeachauthorizedexecutionofthisAgreement,asevidencedbytherespectivesignaturesattestedbelow.SignatureBlocksshallbeincludedintheFinalJPAAgreement.-10-99904-0052\2303962v1.docJune4,2019 Attachment2GregStepanicich,InderKhalsa,andCaseyStrongIIRWG!&8aw.comLAWMEMORANDUMTo:TahoeTruckeeUnifiedSchoolDistrict,TruckeeTahoeAirportDistrict,TahoeForestHospitalDistrict,TruckeeDonnerPublicUtilityDistrictcc:MikeOliverandCraigWhittom,MRGFROM:GregStepanicich,InderKhalsa,andCaseyStrongDATE:iune4,2019SUBJECT:FormationofJPAforWorkforceHousingThismemorandumaddressesthelegalauthorityofaproposedJointPowersAuthority(“JPA”),comprisedoftheTahoeTruckeeUnifiedSchoolDistrict(“TTUSD”),TruckeeTahoeAirportDistrict(“HAD”),TahoeForestHospitalDistrict(“TFHD”),andTruckeeDonnerPublicUtilityDistrict(“TDPUD”)(together,the“Districts”),tosupportthedevelopmentofworkforcehousing.1.DotheDistrictshavetheauthoritytoformaJPAforthepurposeofsupportingworkforcehousing?MemberagenciescandelegatetoaJPAthepowersthattheyholdincommonforthepurposeofachievingspecificgoals.’Therefore,whethertheDistrictscanformaJPAforthepurposeofsupportingworkforcehousingturnsonwhethertheDistrictscouldindividuallytakethecontemplatedactions.Asthegoalofsupportingworkforcehousingcouldinvolvearangeofactions,wehaveaddressedthisquestioninthecontextoffourspecificproposals.A.CouldaJPAcomposedofalifourDistrictsstudyworkforcehousing?Yes.EducationCodeSection35172expresslygrantstoschooldistrictstheauthoritytoconductstudiesinconjunctionwiththepresentandfuturemanagement,conditions,needs,andfinancialsupportoftheschools.Hospitaldistricts,airportdistricts,andpublicutilitydistricts(“PUDs”)canstudytheissueofworkforcehousingundertheirgeneralauthoritytotakethoseactionsthatarenecessarytoprovidetheservicesforwhichtheywereformed,ontheRICHARDSWATSONGERSHONSanFranciscoLosAngelesOrangeCountyTerneculaCentralCoast TahoeTruckeeUnifiedSchoolDistrict,TruckeeTahoeAirportDistrict,TahoeForestHospitalDistrict,TruckeeDonnerPublicUtilityDistrictiune4,2019PageI2basisthatalackofhousingforemployeesthreatenstheirabilitytocontinuetoprovidereliableservice.B.CouldaJPAcomposedofalifourDistrictsleaseunitsininaprivately-owneddevelopmentandprovidethemtoworkersoftheMemberDistricts?Yes.AlloftheDistrictsaregrantedbystatutethepowertoleasepropertyforthebenefitofthedistrict.”TheDistrictsarealsoauthorizedtohireemployeesandfixtheircompensation.”Itisnotuncommonforemployers,includingpublicagencies,toprovidehousingassistanceaspartofanemployeebenefitspackage.Relyingonthispracticeandontheirexpressstatutorypowerstoleasepropertyandsetemployeecompensation,eachoftheDistrictshasastrongargumentthatithastheauthoritytoleaseunitsforthepurposeofhousingtheirworkers,andthattheprovisionofhousing(subsidizedorunsubsidized)isanemployeebenefit.C.CouldaJPAcomposedofallfourDistrictssellsurpluspropertyandimposeconditionsonthedevelopmenttoofferhousingtoDistrictworkers?Yes.EachoftheDistrictsisauthorizedbystatutetodisposeofsurplusproperty.”Inaddition,theSurplusLandActprovidesthatcities,counties,anddistrictslookingtodisposeofsurpluspropertymustfirstoffertosellittospecifiedpublicagencieswithinwhosejurisdictionthepropertyislocatedandtoanyhousingsponsorswhohaverequestednotice,forthepurposeofdevelopinglow-andmoderate-incomehousing.”Thestatedgoalofthelawistofriakesurpluslandavailableforaffordablehousing.Basedontheseprovisions,theJPAcouldfacilitatethesaleofoneDistrict’spropertytoadeveloperfortheconstructionofhousing.IfsoldtoanaffordablehousingdeveloperundertheSurplusLandsAct,affordabilityrestrictionswouldapplytoacertainpercentageofunits.Whethersoldtoanaffordableormarket-ratehousingdeveloper,however,theJPAcouldrequireaspartofapurchaseandsaleagreement(orsimilaragreement)thatacertainnumberofunitsbereservedorapreferencesystembeestablishedforDistrictworkers.D.CouldaJPAcomposedofallfourDistrictsconstructandoperateworkforcehousingonpropertyownedbyoneDistrict?Althoughnotasclearastheaboveexamples,itappearsthataJPAcomposedofallfourDistrictscouldconstructandoperateaworkforcehousingprogramonpropertyownedbyoneRICHARDSWATSONGERSHON TahoeTruckeeUnifiedSchoolDistrict,TruckeeTahoeAirportDistrict,TahoeForestHospitalDistrict,TruckeeDonnerPublicUtilityDistrictJune4,2019PageI3oftheDistricts.ThisconclusionisbasedonboththeexpressandtheimpliedpowersoftheDistricts.Aschooldistrictisexpresslyauthorizedtoestablishprogramstoaddressthehousingneedsofteachersandotherdistrictemployees,andtospendmoneyontheconstruction,reconstruction,orrenovationofrentalhousingfacilitiesforitsemployees.”TheTeacherHousingActof2016createdastatepolicyinsupportofschooldistrictemployeehousing,inordertopermitdistrictsanddeveloperstoobtaintaxcreditsforaffordablerentalhousingandtorestrictoccupancytodistrictemployeesondistrict-ownedland.”Finally,thegoverningboardofaschooldistrictisbroadlyauthorizedtoinitiateanyprogramoractivity,oractinanymanner,thatisnotinconsistentwithapplicablelaworthedistrict’spurpose.”Forhospitaldistricts,atleastonestatutoryprovisionappearstopresupposethattheyareabletoconstructworkforcehousing)xAdditionalstatutoryauthorizationsprovidebroadauthoritywithrespecttohowtousedistrictpropertyandtobuildandoperatehospitalfacilitiesandservices.xAirportdistrictsmayleasetheirpropertytoanyparty,foranypurpose,andmayimprove,construct,furnish,andmaintainthepropertyofthedistrict.)aIfanairportdistrictcanconstruct,furnish,andthenleaseabuildingonitspropertytoanyparty,itwouldseemtobewellwithinitsauthoritytoconstructandrenthousingtoitsownworkers.TDPUDhasthemostlimitedpowersoftheDistricts.ThePublicUtilityDistrictActmakesnomentibnofhousing,anddoesnotextendtoPUDsthesameItexibilitythatairportdistrictsenjoywithrespecttoleasingproperty.Further,whileairportdistrictsareauthorizedtoexercisethosepowers“expresslygrantedornecessarilyimplied,”thePublicUtilityDistrictActstatesonlythatPUDsmayexerciseexpressly-grantedpowers,callingintoquestiontheextentofimpliedpowers.)wStill,PUDsmayhold,enjoy,andleaserealproperty“ofeverykind”wheninthebestinterestsofthedistricttodoso,andmaydo“allthingsnecessaryorconvenienttothefullexerciseofpowers”grantedfortheconstruction,operation,andcontrolofutilityworksandservices.xuuTherefore,theTDPUDboardcouldadoptfindingsastohowtheconstructionandoperationofworkforcehousingisnecessaryandconvenienttothecontinuedprovisionofreliablewaterandelectricservices.’Further,TDPUDhasthesamepowerastheotherDistrictstofixthecompensationandbenefitsofitsemployees.ProvidinghousingasanemployeebenefitseemstobeacommonpowersharedbyallfourDistricts.Finally,totheextentthattheabilitytobuildandoperateworkiorcehousingisnotanexpresspowerofanyoneoftheDistricts,itmaywellbeanimpliedpower.ImpliedpowersRICHARDSWATSONGERSHON TahoeTruckeeUnifiedSchoolDistrict,TruckeeTahoeAirportDistrict,TahoeForestHospitalDistrict,TruckeeDonnerPublicUtilityDistrictJune4,2019PageI4includethosethatcanbereasonablybeinferredfromthepowersexpresslygrantedbytheLegislature.TheCourtofAppealhascalledthiscriteria“uncommonlyflexible,”andobservedthatwhatpowersarenecessaryforadistricttofulfillitspurposemightchangeovertimeTodeterminewhatisanimpliedpower,onetestiswhethertheLegislaturehasexpressedsupportfortheexerciseofthepowerinquestion.Inthisinstance,theLegislature’srecentenactmentstofacilitatehousingsuggestthatitwouldbesupportiveoftheDistricts’effortstoconstructandoperateworkforcehousing.xiE.CouldaJPAcomposedofallfourDistrictsconstructandoperatehousingonpropertyownedbyoneoftheDistricts,andrentunitstothegeneralpublic?Probablynot.ApartfromHAD,whichmayleasepropertytoanyparty,foranypurpose,operatinghousingforthegeneralpublicappearstoexceedtheexpressandimpliedpowersoftheotherDistricts.Incontrasttotheprovisionofworkforcehousing,itwouldbesubstantiallymoredifficultfortheDistrictstoarguethatprovidinghousingtothepublicisnecessarytofulfilltheirpurposes.Wedobelieve,however,thataJPAcomposedofallfouroftheDistrictscouldoffervacantunitsnotrequiredforitsownworkforcehousingtoemployeesofotherpublicagencies.Thatsaid,weunderstandthatlimitinghousingtothememberagencies’employeesmayhaveimplicationsforthefinancingofaproject.Ifadditionalmarket-rateunitsarerequiredinordertomakeaprojectfinanciallyviable,sellingsurpluspropertytoaprivatedeveloperforamixofmarketrateandaffordableunitsunderthescenariodescribedinSection1(C)abovemaybetheJPA’spreferedoption.2.WhatistherecommendedlegalstructureforthecollaborationbetweentheDistricts?AJPAappearstobethemostappropriatelegalstructureforthetypeofcollaborationcontemplatedbytheDistricts.Asdiscussedabove,aJPAcomposedofallfouroftheDistrictswouldhavetheauthoritytosupportworkforcehousingthroughavarietyofdifferentprojects.AJPArequiresatleasttwomembers.IntheeventthataDistrictdecidestonotbecomeamemberoftheJPA,itcouldworkwiththeJPAasaseparatecontractingentity,andenterintocontractstosecurehousingforitsemployeesonaproject-by-projectbasis.RegardlessofhowmanyDistrictsparticipateintheJPA,eachprojectshouldbeevaluatedonanindividualbasistoensureitiswithintheauthorityoftheJPAtocarryout.WhilewebelievethatthatthememberDistrictshavethecommonpowertopursueworkforcehousinggenerally,asdescribedabove,additionalanalysiswillberequiredtoensurethattheRICHARDSWATSONGERSHON TahoeTruckeeUnifiedSchoolDistrict,TruckeeTahoeAirportDistrict,TahoeForestHospitalDistrict,TruckeeDonnerPublicUtilityDistrictJune4,2019PageI5approvalandimplementationofspecificprojectsdonotexceedthecommonpowersofthemembers.3.WouldseparateagreementsbenecessaryforDistrictparticipationinthedevelopmentoracquisitionofworkforcehousingonaproject-by-projectbasis,andwhatwouldthoseagreementslooklike?TheJPAAgreementwillcreateandprovidethestructureforthelegalentitythatwouldenterintocontractsforthedevelopmentoracquisitionofworkforcehousing.WewouldexpecttheJPAtoenterintoconsulting,realestate,andconstructionagreementswithprivatepartiesinordertoimplementspecificprojects.Therealsomaybeaneedforseparatestand-aloneagreementsonaproject-by-projectbasisamongthememberagenciesandtheJPA.Thesecouldtakevariousforms,butoneexamplewouldbeafundingagreementbetweentheJPAandmemberDistrictswithregardtoaspecificproject,describingthecontributionsoftheindividualmembers,suchaslandforaprojectordirectfunding.TheJPAmayalsochoosetoenterintocooperativeagreementswithoneormorememberDistrictstoprovidestaffingoroperationalsupporttotheJPAonanongoingorprojectbyprojectbasis.4.WillthegeneralfundsofthememberDistrictsintheJPAbeprotectedfromthecontractualdebts,liabilitiesandobligationsoftheJPA.AnadvantageoflocalpublicagenciesconductingregionalprogramspursuanttoaJointPowersAgreementisthattheycanformalegallyseparatepublicagencytoconducttheprogram.UnderGovernmentCodeSection6508.1,theJointPowersAgreementrñayprovidethatthedebts,liabilitiesandobligationsoftheJointPowersAuthorityorAgencyshallnotbethedebts,liabilitiesorobligationsofthememberagencies.Lastyear,theStateLegislaturecreatedanexceptiontothisrulerelatedtotheretirementobligationsofajointpowersauthoritythatcontractswithapublicretirementsystem.ThischangeinthelawisadisincentiveforanynewJPAcontractingwithPERSoranotherpublicretirementsystemforretirementbenefits.10000-0306\2303825v1.docRICHARDSWATSONGERSHON TahoeTruckeeUnifiedSchoolDistrict,TruckeeTahoeAirportDistrict,TahoeForestHospitalDistrict,TruckeeDonnerPublicUtilityDistrictJune4,2019PageI6ENDNOTES‘GC65O2.iiSeeHSC§32121(c);EC§35160,35162;PUC§16431;PUC§22553(d).iiiSeeHSC§32121(g),(h);EC§45022,45160;PUC§16191etseq.;PUC§22439(b).IvSeeHSC§32121.2(hospitaldistrictmaydisposeofsurpluspropertyatfairmarketvalue);EC§17455(schooldistrictmaysellorleaserealpropertynotneededforclassroomfacilities);PUC§16341(PUDmaydisposeofrealpropertywheninthebestinterestsofthePUD);uc§22553.5(airportdistrictmaysellsurplusproperty).VGC§54222.SchooldistrictpropertyissubjecttootherrequirementsunderEducationCode§17455-17484;however,AB1157(2017)waivedtherequirementsthat(1)schooldistrictsappointanadvisorycommitteepriortosellingsurplusproperty,ifthesaleistobeusedforteacherorschooldistrictemployeehousing;and(2)propertybefirstofferedtospecifiedentities(suchasparkorrecdistricts,childcarecenters,affordablehousingdevelopers,etc.),iftheproceedsfromthesalearetobeusedfortheconstruction,reconstruction,andrenovationofrentalfacilitiesforschooldistrictemployees.viEC§17456providesthattheconstruction,reconstruction,orrenovationofrentalhousingfacilitiesforschooldistrictemployeesisapermissiblecapitaloutlayexpenditureoffinancingproceedsobtainedbyaschooldistrict.HSC5357OviiiEC§35160,35160.1.ixHSC§32132.96placesaffordabilityrequirementsonhospitaldistrictsthatelecttoconstructhousingusingthedesign-buildprocesssetoutinthePublicContractCode.Thoseaffordabilityrequirementsdonotapplywheredesign-buildisusedtoconstructworkforcehousing.xAhospitaldistrictmay“useandenjoypropertyofeverykindanddescription,”andcontrol,encumber,andcreatealeaseholdinterestinitspropertyforthebenefitofthedistrict.Itmayalso“doanyandallthingsthatanindividualmightdothatarenecessaryfor,andtotheadvantageof,ahealthcarefacility...”;“doanyandallotheractsandthingsnecessarytocarryoutthisdivision”;and“purchasesuchrealproperty,anderectorrentandequipsuchbuildingsorbuilding,roomorroomsasmaybenecessaryforthehospital.”HSC§32121,32123.,xiAnairportdistrictmay“[i]mprove,constructorreconstruct,lease,furnishorrefurnish,use,repair,maintain,control,sell,ordisposeofthepropertyofthedistrict,”andleasesmaybe“foranypurposeandtoanyparty,”providedthattheydonotinterferewiththepurposeoroperationsofthedistrict.Anairportdistrictcanalso“[m]akecontracts,employlabor,anddoallactsnecessaryorconvenientforthefullexerciseofanyofthepowersofthedistrict.”PUC§22553(e),22553.5(c),22554.xi’ComparePUC§22004andPUC§15701.SeealsoCequellilCommc’nsI,LLCv.LocalAgencyFormationComm’nofNevadaCnty.,149Cal.App.4th310(2007).xiiiPUC§16431,16461.SeealsoPCC§20202.2xivA2016studyestimatedthat58.6%ofworkersinTruckee-NorthTahoecommutefromoutsidethearea.IfamajorityofemployeesareforcedtocommutefromRenoorelsewhereinPlacerCounty,providingreliableutilityservicesduringadverseweatherbecomesaseriouschallenge.TahoeTruckeeCommunityFoundation,TruckeeNorthTahoeRegionalWorkforceHousingNeedsAssessment(2016).xvZackv.MannEmergencyRadioAuthority,11$Cal.App.4th617,633-34(2004).xv’Seee.g.,thelegislativefindingsinSB1413(2016)andSB2(2017)(discussingemployeerecruitmentandretentionproblemspresentedbythelackofaffordablehousing);GC§50470(b)(2)(A)(allocatingmoneytoaffordableworkforcehousing);GC§65589.5(a)(makingfindingsanddeclarationsregardingtheimpactsofthelackofhousing);GC§65621(authorizinglocalgovernmentstoestablishWorkforceHousingOpportunityZones).RICHARDSWATSONGERSHON Attachment3TruckeeTahoeWorkiorceHousingJointPowersAgency(JPA)DRAFTFIRSTYEARWORKPROGRAMThisdocumentisanexampleofinitialactivitiesoftheJPAAgencyPurposeTheTermSheetindicatesthattheAgencywillsupportthedevelopmentofworkforcehousingforMemberAgenciesbyacquiring,developingorcontractingforworkforcehousingandcouldsupporthousingprogramsforagencyemployees.Asexamples,theAgencymay:.Acquirerightstouseofexistinghousingincludingsinglefamily,multi-family,congregateandotherformsofhousingownedbytheprivatesectororotherpublicagencies..Participatefinanciallyinthedevelopmentofhousingwiththerighttousealloraportionofthedevelopedunitsforworkforcehousing..Dedicateagencypropertyforuseindevelopingworkforcehousing..ParticipateinthedevelopmentofiPAmemberpropertythroughajointprojectagreement..EncouragedevelopmentofworkforcehousingintheTruckee-Tahoeareabyotherpublicandprivateagencies..Participateinworkforcehousinginitiatives,studiesandprograms..WorkcooperativelyandinacoordinatedmannerwithCity,Countyandregionalagenciesintheireffortstofosterdevelopmentofworkforcehousing.AgencyOperationsTheTermSheetdescribesthevariousorganizationalstructurestheAgencycouldcreatetosupportitsactivities,thesemayinclude:.TheAgencywillestablishanofficewithadministrativesupport,establishfinancialandaccountingsupportandappropriatelegalcounsel..TheAgencywilldevelopafirstyearworkplantodirectitsactivitiesthroughtheestablishmentofgoalsandobjectives.Theinitialyear’sfocuswillbeonestablishingtheAgency’spresence,coordinatingwithappropriatepublicandprivateagenciesanddevelopingastandardforreview,analysisandparticipationinhousingdevelopmentopportunities..TheAgencywillavoidinvolvementinthepublicreviewprocessforprojectsbeingreviewedbycities,countiesandregionalagencies.TheAgencywillnotadvocateforanindividualproject..TheAgencywillexplorevariousmodelsandsuccessfulworkforcehousingdevelopmentprojectsbyandforpublicagenciesthroughoutthestate.1 .TheAgencywillissueapositionstatementtopotentialdevelopmentpartnersandinterestgroupsregardingitsworkiorcehousingneedsandanticipatedactivitiesaswellastheprocessestheAgencywillutilizetoexploreinvolvementinpotentialprojects.Thisregimenwillincludesuchthingsasstandardizedrequirements,involvementprotocolsandtermsofpotentialinvolvement.ProjectDevelopmentProcessDescriptionTheAgencycouldestablishpoliciesregardingitsapproachtosolicitingandparticipatinginpotentialdevelopmentactivitiesbypotentialpartners,thesepoliciescouldaddress:.MinimumeligibilityrequirementsforapotentialorexistingprojecttobeconsideredbytheAgency..Thesemayincludetherequirementthatthepotentialactivityhasbeenreviewedbytheappropriateagency(ies)andbedeemedaviableproject..Existingprojectsmustcomplywithallexistingzoning,buildingandothercodesandrequirementstobeconsidered..Potentialdevelopmentpartnersmustmeetadefinedsetoffinancial,performance,andcapacitythresholdstobeconsideredforinvolvementinapotentialproject..TheAgencywillprocessallinterestedpotentialprojectsandpartnersthroughthesamesetofevaluativecriteria,financialandotheranalysesbeforesubstantivediscussionsregardingtheproject/partnershipareundertaken..Anyprojectunderconsiderationmustbereviewedwiththevariouspublicagencieschargedwithreviewingandapprovingtheproject..TheAgencywillestablishfinanciallimitsforparticipationinapartnershiporprojectthatprotecttheAgenc’andinsuresuitablesafeguardsandreservesareestaLIishedpriortoparticipation.2