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HomeMy WebLinkAbout10 Adopt Resolution 2019-23 - Housing JPAAgendaItem#*10k-TRUCKEEPublicUtilityDistrictJACTIONTo:BoardofDirectorsFrom:ReginaWiseDate:October02,2019Subject:ConsiderationofResolution2019-23,authorizingtheformationoftheTruckeeTahoeWorkforceHousingAgency,inadditionto—authorizationofInitialAgencyFundingof$32,000.__________1.WHYTHISMATTERISBEFORETHEBOARDThisitemisbeforetheBoardtoconsiderauthorizingResolution2019-23(Attachment1),approvingtheDistrict’sparticipationintheformationoftheTruckeeTahoeWorkforceHousingAgency,aJointPowersAuthority.ThisauthoritywouldbecomprisedoftheTahoeTruckeeUnifiedSchoolDistrict,TahoeForestHospitalDistrict,TruckeeTahoeAirportDistrict,andTruckeeDonnerPublicUtilityDistrict(MemberAgencies).AdditionallytheBoardisbeingaskedtoconsiderauthorizinginitialfundingforthenewagencyof$32,000.2.HISTORYTheDistricthasidentifiedaccesstoworkforcehousingasanimportantneedforemployeeattractionandretention,andalsohasaneedforhousingunitsforeffectiveemergencyresponseduringwinterstormsinparticular.In2018,theMemberAgenciescomprisedofthefouragenciespreviouslylistedbegandiscussingopportunitiestocollaboratetocreateadditionalworkforcehousingfortheiremployees.InJanuary2018,thegroupengagedMunicipalResourceGroup(MRG)toassistintheevaluationofthefeasibilityofcreatingaJointPowersAuthority(JPA)tosupportworkforcehousingfortheagenciesrespectiveneeds.InCalifornia,aJPAisonemeansbywhichpublicagenciescollaborateonthepursuitofacommonobjectivewithinthescopeofeachoftheindividualagenciesmissions.MRGhasworkedwiththeMemberAgenciestodevelopthestructureofaJPAthatcouldadvancetheworkforcehousingneedsofeachoftheagencies.MRGalsoretainedlegalcounseltoevaluatewhethertheproposedstructurewaslegallyviable.AfterconcludingthattheJPAisaviablemodelforadvancingworkforcehousing,adraftTermSheetwasdevelopedincollaborationwiththeMemberAgenciesstaffandlegalcounsel’s.InJuneandJuly2019,theMemberAgencyboardsprovidedinputtothedraftTermSheet,andadditionallydirecteditsrespectivestaffstoproceedinthepreparationof3.NEWINFORMATIONIncludedinAttachment2,istheupdatedJPAAgreementthatactsastheformation documentforthenewagencyandisbeingpresentedtotheBoardofeachagencyforapproval.TheMemberAgencyBoardsarescheduledtoconsiderapprovaloftheJPAAgreementduringtheirpublicmeetingsonthefollowingdates:TruckeeTahoeAirportDistrict-September25,2019TahoeForestHospitalDistrict-September26,2019TruckeeDonnerPublicUtilityDistrict-October2,2019TahoeTruckeeUnifiedSchoolDistrict-November6,2019TheJPAAgreementhasbeendevelopedtoprovidetheproposedJPAflexibilityinrespondingtoopportunitiestoacquireorcreateworkforcehousingforagencyemployees.Forexample,projectscouldinclude:.Acquiringanoptiontoleasehousingunitsinanexistingdevelopment;.Acquiringanoptiontoleaseorpurchasehousingunitsinaprojectunderdevelopment;.Partneringwithadeveloperforthedevelopmentofhousingunits;and.Creatingafinancingprogramtoassistemployeesinpurchasinghousing.MRGalsoretainedRichards,&WatsonGershon(RWG),aSanFrancisco-basedlawfirmwithsignificantJPAexperience,toprovidelegaladvice.RWGpreparedtheJPAAgreement,basedonthedraftTermSheetreviewedandinputthatwasreceivedfromeachagenciesBoardsandLegalcounsels.InadditiontotheformationdocumentstheMemberAgenciesdiscussedinitialyearfunding.Apreliminaryestimateforfirstyearfundingbeingcalled“seedfunding”cametoapproximately$300,000.Thisfundingwouldfundlegal,audit,accountingfees,andapersontodoprojectbasedanalysisofworkforcehousingopportunities.ThefollowingproposedallocationofthefirstyearfundingamountMemberAgencieshasbeendevelopedandincludedasExhibitBtotheJPAAgreement:TahoeForestHospitalDistrict-$153,000TahoeTruckeeUnifiedSchoolDistrict-$85,000TruckeeDonnerPublicUtilityDistrict-$32,000TruckeeTahoeAirportDistrict-$30,000Theallocationisroughlybasedona$25,000minimumcontributionbyeachMemberAgencyandaremainingallocationbasedonthenumberofemployeesineachorganization.IfthefourboardsauthorizetheformationoftheJPA,theJPAwillproceedinconveningitsfirstmeetingandimplementinginitialadministrativeactions.ArepresentativefromMRGhascompiledapresentationtopresenttotheBoardatthemeeting. 4.FISCALIMPACTTheDistrictsinvestmentintheseeffortstodateislessthan$10,000.TheinitialfundingforthenewagencyfortheDistrictis$32,000.ThisisnotincludedintheApprovedFYi9BudgetbutsufficientfundsexistintheElectricGeneralFundsforthisexpenditure.5.RECOMMENDATION1)AdoptResolution2019-23,approvingandauthorizingtheexecutionoftheJointExerciseofPowersAgreementCreatingtheTruckeeTahoeWorkforceHousingAgency.2)Authorizeintialagencyfundingintheamountof$32,000./‘Z&ReginaWiseMichaelD.HolleyFinance&AccountingManagerGeneralManager Attachment1bRUCKEEDONNERPub1icUtilityDistrictResolutionNo.2019-23ApprovingandAuthorizingtheExecutionoftheJointExerciseofPowersAgreementCreatingtheTruckeeTahoeWorkforceHousingAgencyWHEREAS,Section6500etseq.oftheGovernmentCodeauthorizesthejointexerciseoftwoormorepublicagenciesofanypowercommontothemasaJointPowersAuthority(“JPA”);andWHEREAS,thereisasignificantshortageofworkforcehousingavailableintheTruckeeTahoeregion,whichhasaffectedtheabilityofTruckeeDonnerPublicUtilityDistrict(“District”)andotherlocalpublicagenciestorecruit,hire,andretainqualifiedemployeesandtoreliablyservethecommunity;andWHEREAS,thecreationofaJPAwouldallowtheDistricttoshareresourcesandexpertisewithotheragenciesinorderotmoreefficientlyandeffectivelyaddressthehousingshortageanditsimpactsonemployees,byjointlyexercisingtheagencies’commonpowerstoaddressthesharedchallengeofalackofadequateworkforcehousing;andWHEREAS,theDistrictdesiretoenterintoaJointExerciseofPowersAgreementtoestablishtheTruckeeTahoeWorkforceHousingAgency,alongwiththeTahoeForestHospitalDistrict,TahoeTruckeeUnifiedSchoolDistrict,andTruckeeTahoeAirportDistrict,andanyadditionalmembersapprovedbytheJPABoardinthefuture.NOW,THEREFORE,BEITRESOLVEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictasfollows:1.TheJointExerciseofPowersAgreementCreatingtheTruckeeTahoeWorkforceHousingAgencyisherebyapproved,andthePresidentisauthorizedtoexecutetheagreementinsubstantiallytheformattachedheretoasExhibitA,togetherwithminortechnicalorclericalcorrectionsifany.2.StaffisauthorizedanddirectedtotakesuchfurtheractionsasmaybenecessaryandappropriatetoimplementtheintentandpurposesofthisResolution.3.ThisResolutionandthecreationoftheTruckeeTahoeWorkforceHousingAgencyisexemptfromtherequirementsoftheCaliforniaEnvironmentalQualityAct(CEQA),asitinvolvesorganizationalandadministrativeactivitiesofgovernmentthatwillnotresultindirectorindirectphysicalchangesontheenvironment,andthereforeisnotconsidereda“project.”(14Cal.CodeRegs.15378(b)(5).)PASSEDANDADOPTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictatameetingheldwithinsaidDistrictonOctober2,2019bythefollowingrollcallvote:1 Attachment1AYES:NOES:ABSENT:TRUCKEEDONNERPUBLICUTILITYDISTRICTByBobEllis,PresidentATTEST:ShannaD.Kuhlemier,CMC,DistrictClerk2 Attachment2AJOINTEXERCISEOFPOWERSAGREEMENTCREATINGTHETRUCKEETAHOEWORKFORCEHOUSINGAGENCYThisJointExerciseofPowersAgreement(“Agreement”),effectiveasof_______________,2019,ismadeandenteredintopursuanttotheprovisionsoflitle1,Division7,Chapter5,Article1(Section6500etseq.)oftheGovernmentCoderelatingtothejointexerciseofpowersamongthepublicagencieslistedinExhibitA(collectively,“Members”).Theterm“Members”shallalsoincludeanypublicagenciesaddedtothisAgreementinaccordancewithSection5.1.RECITALSWHEREAS,theMembersareCaliforniapublicagenciesauthorizedandempoweredtocontractforthejointexerciseofpowersandtojointlyexerciseanypowercommontothemundertheJointExerciseofPowersAct,GovernmentCodeSection6500etseq.;andWHEREAS,thereisasignificantshortageofworkforcehousingavailableintheTruckeeTahoeregion,whichhasaffectedtheMembers’abilitytorecruit,hire,andretainqualifiedemployeesandtoreliablyservethecommunity;andWHEREAS,thereisademonstratedneedfortheMemberstoshareresourcesandexpertiseinordertomoreefficientlyandeffectivelyaddressthehousingshortageanditsimpactsonMembers’employees;andWHEREAS,theMemberspossesscommonpowerstopromoteandsupportworkforcehousingfortheiremployees,includingbutnotlimitedtothepowerstoacquire,lease,manage,anddisposeofrealproperty,providecompensationandbenefitstotheiremployees,andensurethattheMembershaveanavailableworkforcetoprovidetheirservicesandprograms;andWHEREAS,theMemberswishtojointlyexercisetheircommonpowerstoaddressthesharedchallengeofalackofadequateworkforcehousing,andtoestablishaseparatepublicagency,knownastheTruckeeTahoeWorkforceHousingAgency,undertheprovisionsoftheJointExerciseofPowersActinordertocollectivelysupport,acquire,develop,construct,orcontractforworkforcehousingfortheiremployees;andNOW,THEREFORE,inconsiderationoftheforegoingandofthemutualcovenantsandpromiseshereinsetforth,theMembersagreeasfollows:ARTICLE1DEFINITIONS1.1“Agency”meanstheTruckeeTahoeWorkforceHousingAgency.1.2“AgencyDocuments”meansdocumentsdulyadoptedbytheBoardbyresolutionormotionimplementingthepowers,functionsandactivitiesoftheAgency,includingbutnotlimitedtotheOperatingRulesandRegulations,theannualbudget,andplansandpolicies.13026-0002\2318439v2.doc 1.3“Agreement”meansthisJointExerciseofPowersAgreementestablishingtheAgency.1.4“Board”meanstheBoardofDirectorsoftheAgency.1.5“Director”meansamemberoftheBoardofDirectorsrepresentingaMember.1.6“EffectiveDate”meansthedateonwhichthisAgreementshallbecomeeffectiveandtheTruckeeTahoeWorkforceHousingAgencyshallexistasaseparatepublicagency.1.7“EntireBoardofDfrectors”meansthefullnumberofauthorizedDirectorsontheBoardofDirectorsregardlessofanyvacanciesontheBoardatthetimeofthemeeting.1.8“InitialParticipants”shallmeantheTahoeTruckeeUnifiedSchoolDistrict,theTahoeForestHospitalDistrict,theTruckeeTahoeAirportDistrict,andtheTruckeeDormerPublicUtilityDistrict.1.9“Members”meansthesignatoriestothisAgreementthatareInitialParticipantsorthathavesatisfiedtheconditionsinSection5.1suchthattheyareconsideredmembersoftheAgency.TheMembersarereferredtoindividuallyas“Member.”1.10“Quorum”shallmeanamajorityoftheDirectorsoftheEntireBoardofDirectors.1.11“WorkforceHousingProject”meansanyarrangementorendeavorwherebytheAgencyacquires,develops,orcontractsforhousingunitsforthepurposeofprovidinghousingtoemployeesoftheMembersoraMember.ARTICLE2FORMATIONOFTRUCKEETAHOEWORKFORCEHOUSINGAGENCY2.1EffectiveDateandTerm.ThisAgreementshallbecomeeffectiveandtheAgencyshallexistasaseparatepublicagencywhenalltheInitialParticipantshaveexecutedtheAgreement(“EffectiveDate”).TheAgencyshallprovidenoticetotheInitialParticipantsoftheEffectiveDate.TheAgencyshallcontinuetoexist,andthisAgreementshallbeeffective,untiltheAgreementisterminatedinaccordancewithSection7.4,subjecttotherightsofMemberstowithdrawfromtheAgency.2.2Formation.ThereisformedasoftheEffectiveDateapublicagencynamedtheTruckeeTahoeWorkforceHousingAgency(the“Agency”).PursuanttoGovernmentCodeSections6506and6507,theAgencyisapublicagencyseparateandapartfromtheMembers.UnlessotherwiseagreedbytheMembers,thedebts,liabilities,andobligationsoftheAgencyshallnotbedebts,liabilitiesorobligationsoftheMembers.AMemberwhohasnotagreedtoassumeanAgencydebt,liability,orobligationonaWorkforceHousingProjectshallnotberesponsibleinanywayforsuchdebt,liabilityobligationevenifamajorityoftheMembersagreetoassumethedebt,liabilityorobligationoftheAgency.213026-0002\2318439v2.doc 2.3FilingofNotices.Within30daysaftertheEffectiveDate,theAgencyshallcauseanoticeofthisAgreementtobepreparedcontainingtheinformationrequiredbyGovernmentCodeSection6503.5andfiledwiththeCaliforniaSecretaryofStateandtheStateController.Withinseventy70daysaftertheEffectiveDate,theAgencyshallcauseastatementofinformationtobefiledwiththeCaliforniaSecretaryofState,theElDoradoCountyClerk,theElDoradoCountyLocalAgencyFormationCommission(LAFCo),thePlacerCountyClerk,thePlacerCountyLAFCo,theNevadaCountyClerk,andtheNevadaCountyLAFCo,statingthefactsrequiredtobestatedpursuanttosubdivision(a)ofGovernmentCodeSection53051.2.4Purpose.ThepurposeofthisAgreementistoestablishanindependentpublicagency,tosupportandpromotethedevelopmentofworkforcehousingforMemberswithinthejurisdictionoftheAgency.TheAgencymayplan,acquire,develop,finance,create,contractfor,orownworkforcehousingforMemberemployeesandsupporthousingprogramsthatprovideworkforcehousingtoMemberemployees.ARTICLE3POWERSOFTHEAGENCY3.1GeneralPowers.TheAgencyshallhaveallpowerscommontotheMembersandanysuchadditionalpowersaccordedtoitbylaw.TheAgencyisauthorized,initsownname,toexerciseallpowersanddoallactsnecessaryandpropertocarryouttheprovisionsofthisAgreementandfulfillitspurposes,including,butnotlimitedto,eachofthefollowing:a.acquire,lease,construct,own,manage,maintain,disposeoforoperate(subjecttothelimitationsherein)anybuildings,works,orimprovementsdeemednecessarybytheBoardtoprovideworkforcehousinglocatedonoroffMember-ownedproperties;b.acquire,hold,manage,maintain,ordisposeofanyotherrealorpersonalpropertybyanylawfulmeans,includingwithoutlimitationgift,purchase,lease,lease-purchase,license,eminentdomain,orsale,inordertosupportthedevelopmentofworkforcehousingfortheMembers;c.developprogramsthatprovideMembers’employeestheabilitytoacquirehousingoraccessrentalhousingthatmaynotbeownedoroperatedbytheAgency;d.seek,receive,andadministerfundingfromanyavailablepublic,non-profit,foundation,orprivatesource,includinggrantsorloansunderanyavailableFederal,State,andlocalprogramsforassistanceinachievingthepurposesandobjectivesoftheAgency;e.seektheadoptionordefeatofanyFederal,State,orlocallegislationorregulationnecessaryordesirabletoaccomplishthestatedpurposesandobjectivesoftheAgency;fadoptrules,regulations,policies,bylaws,andproceduresgoverningtheoperationoftheAgency;313026-0002\2318439v2.doc g.makeandenterintocontracts,includingintergovernmentalcontracts;h.employemployees,includingbutnotlimitedtoanAgencymanager,andcontractwithagents,contractors,consultantsandprofessionalservicesentitiesorpersons;i.incurauthorizeddebts,liabilitiesandobligations,includinginsuranceandsaleofbonds,notes,certificatesofparticipation,bondsauthorizedpursuanttotheMello-RoosLocalBondPoolingActof1985,GovernmentCodeSections6584etseq.oranyotherlegalauthoritycommontotheMembersorgrantedtotheAgency,andsuchotherevidencesofindebtedness,subjecttothelimitationshereintoaccomplishthestatedpurposesandobjectivesoftheAgency;j.sueandbesuedinitsownname;k.receivegifts,contributions,anddonationsofproperty,funds,services,andotherformsofassistancefromanypersons,firms,corporations,orgovernmentalentities;1.adoptbudgetsandconductaudits;m.investmoneypursuanttoGovernmentCodeSection6505.5thatisnotrequiredfortheimmediatenecessitiesoftheAgency,astheAgencydeterminesisadvisable,inthesamemanneranduponthesameconditionsaslocalagencies,pursuanttoGovernmentCodeSection53601asitnowexistsormayhereafierbeamended;n.defend,holdharmless,andindemnify,tothefullestextentpermittedbylaw,eachMemberfromanyliability,claims,suits,orotheractions;0.carryoutandenforcealltheprovisionsofthisAgreement.3.2LimitationonPowers.AsrequiredbyGovernmentCodeSection6509,thepoweroftheAgencyissubjecttotherestrictionsuponthemannerofexercisingpowerpossessedbytheTmckeeTahoeAirportDistrict.3.3CompliancewithLocalZoningandBuildingLaws.NotwithstandinganyotherprovisionsofthisAgreementorstatelaw,anyfacilities,buildingsorstructureslocated,constructedorcausedtobeconstructedbytheAgencyshallcomplywiththeGeneralPlan,zoningandbuildinglawsofthelocaljurisdictionwithinwhichthefacilities,buildingsorstructuresareconstructed.ARTICLE4OPERATINGRULESANDREGULATIONS4.1TheBoardmayadoptfromtimetotimesuchpolicies,procedures,bylaws,rulesorregulations,fortheconductofitsaffairsasdeemednecessarybytheBoard.413026-0002\2318439v2.doc ARTICLE5ORGANIZATION5.1Membersa.InitialParticipants.TheinitialMembersoftheAgencyshallbethoseInitialParticipantsthathaveenteredintotheAgreementonorbeforetheEffectiveDate.b.AdditionofMembers.ApublicagencymaybeconsideredforMembershipintheAgencyaftertheEffectiveDatebypresentinganadoptedresolutiontotheBoardwhichincludesarequesttobecomeaMemberoftheAgency.TheBoardshallacceptproposedMembersuponaunanimousaffirmativevoteoftheentireBoardanduponsatisfactionofanyconditionsestablishedbytheBoardasaprerequisiteformembershipincludingbutnotlimitedtopaymentofanyBoard-determinedmembershipfeetoreflecttheproratashareoforganizational,planning,andotherpre-existingexpenditures.c.ContinuingParticipation.TheMembersacknowledgethatthemembershipoftheAgencymaychangewiththeadditionandlorwithdrawalorterminationofMembers.TheMembersagreetoparticipatewithsuchotherMembersasmaylaterbeadded.TheMembersalsoagreethatthewithdrawalorterminationofaMembershallnotaffectthisAgreementortheremainingMembers’continuingobligationsunderthisAgreement.5.2BoardofDirectorsa.BoardofDirectors.TheAgencyshallbegovernedbytheBoardofDirectors,whichshallexerciseallpowersandauthorityonbehalfoftheAgencyunlessdelegatedinaccordancewiththeprovisionsherein.b.Composition.EachAgencythatisaMembertothisAgreementshallhave1regularDirectorand1alternateDirectorontheBoardofDirectors.ThealternateDirectormayvoteandrepresenthisorherAgencyatBoardmeetingsonlyintheabsenceoftheregularDirector.EachDirectorshallbethechiefadministrativeofficerorthegeneralmanageroftheMember,oradesigneeofthechiefadministrativeofficerorgeneralmanager.EachalternateDirectorshallbeadesigneeofthechiefadministrativeofficerorgeneralmanageroftheMember.IfatanytimeavacancyoccursontheBoard,areplacementshallbeprovidedbytheaffectedAgencytofillthepositionofthepreviousDirectorwithin45daysofthedatethatsuchpositionbecomesvacant.c.Quorum.AmajorityofDirectorsoftheEntireBoardofDirectorsshallconstituteaquorumforthetransactionofbusiness,exceptthatlessthanaquorummayadjournfromtimetotimeinaccordancewithapplicablelaw.513026-0002\2318439v2.doc ci.Voting.EachDirectorshallhaveonevote.AlternativesshallhavenovotingpowerexceptwhenservingintheplaceofanabsentDirector.MyactionoftheBoardshallrequireanaffirmativevoteofamajorityoftheDirectorsoftheEntireBoardofDirectors,exceptingthefollowingactionswhichshallrequireaunanimousvoteoftheEntireBoardofDirectors:(i)addingnewmembers;(ii)issuingbondsorotherformsofindebtedness;(iii)approvingcommencementofeminentdomainproceedings;(iv)terminationofthisAgreementanddissolutionoftheAgency.e.ChairandViceChair.TheBoardshallelect,fromamongthemselves,aChairandViceChair.TheChairshallbethepresidingofficerofallBoardmeetingsandshallrepresenttheAgencyandperformsuchotherdutiesasmaybeimposedbytheBoardinaccordancewithlawandthisAgreement.TheViceChairshallserveintheabsenceoftheChair.ThetermofofficeoftheChairandViceChairshallcontinueforoneyear,butthereshallbenolimitonthenumberoftermsheldbyeithertheChairorViceChair.IntheeventthattheChairisunabletocontinueservingontheBoard,theViceChairshallbecomeChair,andanewViceChairshallbeselectedatthenextmeetingoftheBoard.IntheeventthattheViceChairisunabletocontinueservingontheBoard,anewViceChairshallbeselectedatthenextmeetingoftheBoard.fDirectorCompensation.CompensationforworkperformedbyDirectorsonbehalfoftheAgencyshallbebornebytheMemberthatappointedtheDirector.TheBoard,however,mayadoptbyresolutionapolicyrelatingtothereimbursementofexpensesincurredbyDirectors.g.Meetings.TheBoardshallholdnotlessthantwogeneralmeetingsperyear.MeetingsshallbeconductedandnoticedinaccordancewiththeprovisionsoftheRalphM.BrownAct,GovernmentCodeSection54940etseq.h.Secretary.TheBoardshallappointaSecretary,whoneednotbeamemberoftheBoard,toberesponsibleforkeepingtheminutesofallmeetingsoftheBoardandallotherofficialrecordsoftheAgency.UponapprovalbytheBoard,suchminutesshallbecomeapartoftheofficialrecordsoftheAgency.AdditionalOfficers.TheBoardmayappointanyadditionalofficersdeemednecessaryordesirable.Committees.TheBoardmayestablishpermanentortemporarycommitteesastheBoarddeemsappropriatetoassisttheBoardincarrying613026-0002\2318439v2.doc outitsfunctionsandtheprovisionsofthisAgreement.TheBoardalsomayestablishstandingandadhoccommitteesconsistingoflessthanaquorumofBoardmembersasauthorizedbytheBrownAct.j.ConflictsofInterest.Boardmembersshallbeconsidered“publicofficials”withinthemeaningoftheCaliforniaPoliticalReformActof1974,GovernmentCodeSection8100etseq.,and“officials”withinthemeaningoftheLevineAct,GovernmentCodeSection84308.5.3Managera.Selection.TheBoardshallappointaManagerorengagemanagementservicesatthefirstpubliclynoticedmeetingoftheBoardfollowingtheEffectiveDate.TheManagermaybeanemployeeoftheAgency,anemployeeofoneoftheMembers,aconsultant,anindependentcontractor,oranemployeeofanotherentitywhocanperformtheresponsibilitiesanddutiesdescribedinthisSection5.3.b.PowersandDuties.ThepowersanddutiesoftheManagershallincludethefollowing:(i)todirect,coordinate,andsupervisethedailyoperationsoftheAgencyandtoberesponsibletotheBoardfortheproperadministrationofallactivitiesoftheAgency;(ii)tomakerecommendationstotheBoardregardingtheoperationsoftheAgency;(iii)tohire,promote,discipline,terminate,supervise,andcoordinatethetrainingofanyAgencyemployees;(iv)tosuperviseanddirectthepreparationoftheannualbudgetandtoberesponsibleforitsadministrationfollowingadoptionbytheBoard;(v)toestablishpoliciesandproceduresfortheAgencyinordertoimplementdirectivesfromtheBoard;(vi)toperformsuchotherdutiesastheBoardmayrequireincarryingoutthepurposesoftheAgency.5.4Employees.IftheAgencyhiresemployees,suchemployeesshallnotbedeemedemployedbyorsubjecttotherequirementsofanyMemberbyreasonoftheiremploymentbytheAgency.TheBoardshalldevelopandadoptEmployer-EmployeeRelationsProceduresandPersonnelRulesandRegulationsforsuchemployees.TheAgencyshallnotparticipateinCaIPERSoranyotherpublicretirementsystembasedonadefmedbenefitplan.Notwithstandingtheforegoing,theAgencymayprovidetoitsemployeesa401(a)orotherdefinedcontributionretirementplan.713026-0002\2318439v2.doc 5.5PrincipalOffice.TheBoardshallestablishbyresolutiontheprincipalphysicalofficeoftheAgency,tobelocatedatoneoftheMember’sofficesoranothersuitablelocation.ARTICLE6FINANCIALPROVISIONS61FiscalYear.TheAgency’sfiscalyearshallbe12monthscommencingJuly1andendingJune30.ThefiscalyearmaybechangedbyBoardresolution.6.2AgencyBudget.PriortoApril1eachyear,theManagerdesignatedinaccordancewithSection5.3shallprepareandpresentaproposedannualbudgettotheBoardforitsreviewandapproval.PriortoJuly1ofeachyear,theBoardshallapprovethefinalbudgetforthefollowingfiscalyear.TheBoardmayrevisethebudgetfromtimetotimeasmaybenecessarytoaddresschangedcircumstances,contingenciesandunexpectedexpenses.ThetimerequirementsinthissectionshallnotapplytotheadoptionofthefirstbudgetwhichshallbepreparedandapprovedassoonaspracticableaftertheEffectiveDate.6.3OperationsandMaintenanceCosts.TheInitialParticipantsshallfundtheinitialoperatingcostsoftheAgencyasdescribedinExhibitB.AfterhousingunitshavebeensecuredbytheAgency,eachMembershallcontributethefundsnecessarytocarryoutthepurposesandpowersoftheAgency.ForthepurposesofthisAgreement,“secured”meansthathousingunitshavebeenleasedorconstructedbyoronbehalfoftheAgencyandareavailableforoccupancybyMemberemployees.EachMember’sannualfundingcontributionshallbebasedonthenumberofhousingunitsallocatedtoeachMemberoronanotherbasisapprovedbyaunanimousvoteoftheEntireBoardofDirectors.ByApril1ofeachyearaspartofbudgetpreparations,theManagershallpreparetheproposedfundingcontributionbyeachMemberbasedonthetotalnumberofhousingunitsallocatedtothatMemberasofApril1.AspartoftheBoardresolutionadoptingtheAgencybudget,thefundingcontributionbyeachMembershallbeestablished.EachMembershalltransmititsannualcontributionasdeterminedunderthissectiontotheAgencywithin30daysafterawritteninvoiceissenttotheMember.6.4WorkforceHousingProjectContributions.PriortoacquiringhousingunitsinaWorkforceHousingProject,theMembersshalldeterminethefinancialcontributionofeachMemberfortheProject.MembersshallnotberequiredtomakeafinancialcontributiontoorotherwiseparticipateinanyWorkforceHousingProject.ThenumberofhousingunitsallocatedtoeachMemberinaWorkforceHousingProjectshallbeproportionaltotheMember’sfmancialcontributiontothatProjectunlessotherwiseapprovedbytheBoard.IntheeventaWorkforceHousingProjectcontainsmorehousingunitsthanarerequiredforusebytheMembers,theAgencymaychoosetoofferthesurplusunitsfirsttoMemberswhoarenotparticipatingintheWorkforceHousingProjectand,ifsurplusunitsarestillavailable,thentonon-memberpublicagencies.Anyagreementforanon-memberpublicagency’suseofProjecthousingunit(s)shallattempttofullyrecoverthecostsincurredbytheAgencyforthedevelopmentoracquisitionofsuchunit(s).813026-0002\2318439v2.doc 6.5AdditionalContributionsandAdvancements.PursuanttoGovernmentCode6504,theMembersmayintheirdiscretionmakefinancialcontributions,loans,oradvancestotheAgencyforthepurposessetforthinthisAgreement.Therepaymentofsuchcontributions,loans,oradvancesshallbeonthetermsagreedtobytheMembermakingthecontribution,loan,oradvanceandtheAgency.6.6TransferofRecords,Accounts,Funds,andProperty.TheBoardshalladoptproceduresbywhichtheAgencydocumentsthetransferandreceiptofrecords,accounts,funds,orpropertyfromMembersorotherentities.6.7CapitalAssets.CapitalassetsoftheMembersmaybetransferredtotheAgencyaccordingtothedispositionrulesapplicabletothatMember.6.8TreasurerandAuditor.TheBoardshallappointaqualifiedpersontoactastheTreasurerandaqualifiedpersontoactastheAuditor.TheBoardmayappointaqualifiedpersontoserveasbothTreasurerandAuditorasauthorizedbylaw.Exceptasotherwiseprovidedbylaw,theAgencyshallcauseanindependentaudittobemadebyacertifiedpublicaccountant,orpublicaccountant,incompliancewithGovernmentCodeSection6505.TheTreasurershallactasthedepositoryoftheAgencyandhavecustodyofallfundsoftheAgency,fromwhateversource,andshallhaveallofthedutiesandresponsibilitiesspecifiedinGovernmentCodeSection6505.5andthisAgreement.TheBoardshallrequiretheTreasurerand/orAuditortofilewiththeAgencyanofficialbondinanamounttobefixedbytheBoard.TheTreasurershallreportdirectlytotheBoardandshallcomplywithallapplicablelegalrequirementsinperformingtheTreasurer’sduties.TheBoardmaytransfertheresponsibilitiesofTreasurertoanypersonorentityasthelawmayprovideatthetime.6.9SeparateAccounts.AllfundsoftheAgencyshallbeheldinseparateaccountsinthenameoftheAgencyandnotcommingledwithfundsofanyMemberoranyotherpersonorentity.ARTICLE7WITHDRAWALANDTERMINATION7.1Withdrawal.AfterJuly1,2023,anyMembershallhavetherighttowithdrawfromthisAgreementbygivingnolessthan24monthsadvancewrittennoticeofitsintentiontodosototheBoardandtoeachotherMembersubjecttotheprovisionsofSection7.2.7.2ContinuingLiability;Refund.UponawithdrawalofaMember,theMembershallremainresponsibleforanyclaims,demands,damages,orliabilitiesarisingfromtheMember’smembershipintheAgencythroughthedateofitswithdrawal,itbeingagreedthattheMembershallnotberesponsibleforanyclaims,demands,damages,orliabilitiesarisingaftertheeffectivedateoftheMember’swithdrawal.Inaddition,awithdrawalshallnotbeeffectiveuntilthewithdrawingMemberalsopaysoffandfullysatisfiesanycostsorobligationsassociatedwiththeMember’sparticipationinanyWorkforceHousingProjectorotherprogramTheAgencymaywithholdfundsotherwiseowingtotheMemberormayrequiretheMembertodepositsufficientfundswiththeAgency,asreasonablydeterminedbytheAgency,tocovertheMember’sliabilityforthecostsdescribedabove.AnyamountoftheMember’sfundsheldon913026-0002\2318439v2.doc depositwiththeAgencyabovethatwhichisrequiredtopayanyliabilitiesorobligationsshallbereturnedtotheMember.ExceptasotherwiseagreedtobytheremainingMembers,noMembershall,bywithdrawing,beentitledtoarefundoffundspaidorpropertydonated,ifany,ortoanydistributionofitsassets.7.3EffectofWithdrawalonRemainingMembers.TheMembersagreethatthewithdrawalofaMembershallnotaffectthisAgreementortheremainingMembers’continuingobligationsunderthisAgreement.7.4Termination.ThisAgreementmaybeterminatedandtheAgencydissolvedbymutualagreementofalltheMembers,orwhereallbut1MemberhaswithdrawnfromtheAgreementprovidedthatalldebts,liabilitiesandobligationsoftheAgencyhavebeensatisfied.7.5DispositionofAgencyFundsUponTermination.UponterminationofthisAgreementastoallMembers,anysurplusmoneyorassetsinpossessionoftheAgencyforuseunderthisAgreement,afterpaymentofallliabilities,costs,expenses,andotherobligationsoftheAgency,shallbereturnedtothethen-existingMembersinproportiontothecontributionsmadebyeach,asreflectedbythethen-currentfundingformulaadoptedbytheBoardpursuanttoSection6.3ofthisAgreement.ARTICLE8AGENCYDOCUMENTS8.1AgencyDocuments.TheMembersacknowledgeandagreethattheaffairsoftheAgencywillbeimplementedthroughvariousdocumentsdulyadoptedbytheBoardthroughBoardresolutionormotion,includingbutnotnecessarilylimitedtotheannualbudget,thepolicies,procedures,rulesandregulationsoftheAgencywhichshallbeconsideredtheAgencyDocumentsunderthisAgreement.TheMembersagreetoabidebyandcomplywiththetermsandconditionsofallAgencyDocumentsthatmaybeadoptedbytheBoard,subjecttotheMembers’righttowithdrawfromtheAgencyasdescribedinArticle7.1.ARTICLE9MISCELLANEOUSPROVISIONS9.1LiabilityofDirectors,Officers,andEmployees.TheDirectors,officers,andemployeesoftheAgencyshalluseordinarycareandreasonablediligenceintheexerciseoftheirpowersandintheperformanceoftheirdutiespursuanttothisAgreement.NocurrentorformerDirector,officer,oremployeewillberesponsibleforanyactoromissionbyanotherDirector,officer,oremployee.TheAgencyshalldefend,indemnifyandholdharmlesstheindividualcurrentandformerDirectors,officers,andemployeesforanyactsoromissionsinthescopeoftheiremploymentordutiesinthemannerprovidedbyGovernmentCodeSection995etseq.Nothinginthissectionshallbeconstruedtolimitthedefensesavailableunderthelaw,totheMembers,theAgency,oritsDirectors,officers,oremployees.9.2Insurance;IndemnificationofMembers.TheAgencyshallacquiresuchinsurancecoverageasisnecessarytoprotecttheinterestsoftheAgency,theMembersandthepublic.TheAgencyshalldefend,indemnifyandholdharmlesstheMembersandeachoftheirrespectiveBoardmembers,officers,employees,andagentsfromanyandallclaims,losses,1013026-0002\2318439v2.doc damages,costs,injuriesandliabilitiesofeverykindarisingdirectlyorindirectlyfromtheconduct,activities,operations,acts,andomissionsoftheAgencyunderthisAgreement.9.3Amendments.ThisAgreementmaybeamendedbyamajorityvoteoftheEntireBoardofDirectors,providedthatnoticeoftheproposedamendmentisprovidedtothegoverningbodiesofeachoftheMembersatleast30dayspriortoitsconsiderationbytheBoard.Notwithstandingtheforegoing,anyamendmenttoSection2.2ofthisAgreementoranyamendmentthatwouldsubjectaMembertoadebt,liabilityorobligationoftheAgencyshallrequireaunanimousvoteoftheEntireBoardofDirectors.9.4Severability.Ifoneormoreclauses,sentences,paragraphs,orprovisionsofthisAgreementoritsapplicationtoanypersonorcircumstancesshallbeheldinvalid,unlawfulorunenforceable,theremainderofthisAgreementandtheapplicationoftheprovisiontootherpersonsorcircumstancesshallnotbeaffectedthereby.Suchclauses,sentences,paragraphsorprovisionsshallbedeemedreformedsoastobelawful,validandenforcedtothemaximumextentpossible.9.5Assignment.ExceptasotherwiseexpresslyprovidedinthisAgreement,therightsanddutiesoftheMembersmaynotbeassignedordelegatedwithouttheadvancewrittenconsentofalloftheotherMembers,andanyattempttoassignordelegatesuchrightsordutiesincontraventionofthisSection9.5shallbenullandvoid.ThisSection9.5doesnotprohibitaMemberfromenteringintoanindependentagreementwithanotheragency,person,orentityregardingthefinancingofthatMember’scontributionstotheAgency,orthedispositionofproceedswhichthatMemberreceivesunderthisAgreement,solongassuchindependentagreementdoesnotaffect,orpurporttoaffect,therightsanddutiesoftheAgencyortheMembersunderthisAgreement.9.6Successors.ThisAgreementshallinuretothebenefitof,andbebindingupon,thesuccessorsandassignsoftheMembers.9.7DisputeResolution.RepresentativesoftheMembersshallmeetandusetheirbesteffortstosettleanydispute,claim,questionordisagreementarisingfromorrelatingtothisAgreementortotheinterpretationofthisAgreement(a“Dispute”).Tothatend,representativesoftheMembersshallconsultandnegotiatewitheachotheringoodfaithand,recognizingtheirmutualinterests,attempttoreachajustandequitablesolutionsatisfactorytoallinvolvedMembers.IftheMembersdonotreachsuchasolutionwithinaperiodofthirty(30)daysafierthefirstmeetingregardingaDispute,thentheMembersshallconveneameetingoftheBoardwithinsixty(60)daysafterthefirstmeetingoftheMemberrepresentativesregardingaDisputeandrequestthattheBoardsettletheDisputeatthemeeting.IftheMembersdonotsettletheDisputeattheBoardmeetingorwithinfive(5)calendardaysaftertheBoardmeeting,andtheMembershavenotagreedtoenterintoavoluntarymediationorarbitrationoftheDispute,anyMembermaypursueanyremediesprovidedbylaw.TherespectivecostsforresolvinganyDisputeshallbebornebytheindividualMembers,nottheAgency.9.8AgreementComplete.ThisAgreementcontainstheentireagreementoftheMembersandsupersedesanyandallprior,writtenororal,agreementsamongthemconcerningthesubjectmatterofthisAgreement.1113026-0002\2318439v2.doc 9.9FurtherAssurances.EachMemberagreestoexecuteanddeliverallfurtherinstrumentsanddocumentsandtakeanyfurtheractionthatmaybereasonablynecessary,toeffectuatethepurposesandintentofthisAgreement.9.10ExecutionbyCounterparts.ThisAgreementmaybeexecutedinanynumberofcounterparts,anduponexecutionbyallMembers,eachexecutedcounterpartshallhavethesameforceandeffectasanoriginalinstrumentandasifallMembershadsignedthesameinstrument.9.11Notice.AnynoticeauthorizedorrequiredtobegivenpursuanttothisAgreementshallbevalidlygivenifservedinwritingeitherpersonally,bydepositintheUnitedStatesmail,firstclasspostageprepaidwithreturnreceiptrequested,orbyarecognizedcourierservice.Noticesgiven(a)personallyorbycourierserviceshallbeconclusivelydeemedreceivedatthetimeofdeliveryandreceiptand(b)bymailshallbeconclusivelydeemedgiven72hoursafterthedateofmailing(excludingSaturdays,Sundaysandholidays).AllnoticesshallbeaddressedtotheofficeoftheclerkorsecretaryoftheMemberorAgency,asthecasemaybe,orsuchotherpersondesignatedinwritingbytheMemberorAgency.NoticesgiventooneMembershallbecopiedtoallotherMembers.NoticesgiventotheAgencyshallbecopiedtoallMembers.9.12GoverningLaw;Venue.ThisAgreementshallbegovernedbyandconstruedaccordingtothelawsofCalifornia.VenueforalldisputesinvolvingthisAgreementshallbetheCountyofPlacerortheCountyofNevada.1213026-0002\2318439v2.doc INWITNESSWHEREOF,theMembersheretohavecausedthisAgreementtobeexecutedbytheirdulyauthorizedofficersanditshallbeeffectiveasofthedateofexecutionofallMembershereto.ThisAgreementmaybeexecutedincounterparts.Dated:__________ ___ _______ ________________________________________TAHOEFORESTHOSPITALDISTRICTChair:_______ ______ ______ ______ATTESTEDBYTHECLERKDated:___________ _______ ___ _______________________________________TAHOETRUCKEEUNIFIEDSCHOOLDISTRICTChair:_________________ _ _ ______ATTESTEDBYTHECLERKDated:____________________________________________________________TRUCKEEDONNERPUBLICUTILITYDISTRICTChair:________________________ATTESTEDBYTHECLERK1313026-0002\2318439v2.doc Dated:_____________ _______ __ _______ _______ _______ ___ _______ _______ _TRUCKEETAHOEAIRPORTDISTRICTCha i r :_________________________ATTESTEDBYTHECLERK1413026-0002\2318439v2.doc EXHIBITALISTOFTHEMEMBERSTahoeForestHospitalDistrictTahoeTruckeeUnifiedSchoolDistrictTruckeeDonnerPublicUtilityDistrictTruckeeTahoeAirportDistrict1513026-0002\2318439v2doc EXHIBITBFUNDINGOFINITIALCOSTS$153,000$85,000$32,000$30,000TahoeForestHospitalDistrictTahoeTruckeeUnifiedSchoolDistrictTruckeeDonnerPublicUtilityDistrictTruckeeTahoeAirportDistrict1613026-0002\2318439v2.doc