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HomeMy WebLinkAbout15 Review of a Joint Powers Authority for Employee HousingAgenda Item #15 To: From: Date: Subject: Board of Directors Lisa Hall December 05, 2018 Review of a Joint Powers Authority for Employee Housing WORKSHOP 1. WHY THIS MATTER IS BEFORE THE BOARD This informational item is before the Board to discuss participation in a Joint Powers Authority (JPA) for employee housing. 2. HISTORY The District has built and maintained a highly skilled and trained workforce. The high cost of housing has increasingly become a challenge for employee recruitment and retention. The District has been active in the community around housing issues including being a funder and participant in the local Mountain Housing Council. District staff has also been investigating opportunities to promote and secure housing to support community and district needs. Many other special districts and private employers are also struggling with housing issues. 3. NEW INFORMATION The District was recently approached by another special district to collaborate on forming a JPA to facilitate the design and construction of an employee housing development. Joint Powers Authority formation is allowed under California Government Code sections 6500-6536 when two or more public agencies by agreement jointly exercise any power common to the contracting agencies to achieve specific goals. JPAs may be formed between local entities for reasons such as construction, acquisition of real estate, operating of facilities, and maintenance. There are two ways to set up a JPA in California. The first allows two or more public agencies to contract to jointly exercise common powers. The second allows two or more public agencies to form a separate legal entity. This new entity has independent legal rights, including the ability to enter into contracts, hold property and sue or be sued. Forming a separate entity can be beneficial because the debts, liabilities and obligations of the JPA belong to that entity, not the contracting parties. Lisa Hall Michael D. Holley Administrative Services Director General Manager 4. FISCAL IMPACT The anticipated amount of the District's contribution for a JPA consultant should not exceed $10,000. Sufficient funds exist in the District's FY18-19 budgets for this work. 5. RECOMMENDATION Provide direction and input to staff. Either method of JPA formation requires participating public agencies to enter into an agreement. The powers and manner the JPA will be exercised must be stated in the agreement along with other relevant aspects such as governance, membership, purpose, timelines, authority, accountability, and finance. An annual audit is required, a separate account must be established to account for all funds, and the governing bodies of all contracting public agencies must approve the agreement. Next steps for the districts involved in the proposed employee housing JPA include hiring a consultant to develop a JPA proposal, identify project milestones, evaluate project cost and feasibility, and decide on participation levels.