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Home My WebLink About12 TTWHA Updated Membership AGENDA ITEM # 12 Public Utility District MEETING DATE: May 3, 2023 TO: Board of Directors FROM: Steven Poncelet, Public Information & Strategic Affairs Director SUBJECT: Consideration of Truckee Tahoe Workforce Agency Budget APPROVED BY — }- - —Brian C. Wright, 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, 2023 to June 30, 2024 budget; and b) Approve the District's contribution of $25,651 for TTWHA's 2023-2024 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 originally participating in the Mountain Housing Council. 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, Page 1 of 4 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 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. Since the completion and dissemination of the employee housing survey towards the end of 2020, TTWHA worked towards maturing the organization while executing immediate programs to start helping employees while exploring longer-term solutions and partnerships. This includes: Employee `Concierge Services; Housing Match Program, the TTWHA Housing Work Plan development; and regional partnerships/developer cultivation. In 2020 and 2021 TTWHA was approached by the Town of Truckee, Placer County, and Nevada County to join TTWHA and provide the benefits their public employees. The Member Agencies agreed and TTWHA was expanded to seven members now serving 2,300 employees with a staff of two and an annual operating budget of $400,000. Since then TTWHA has added new programs around general housing services, access to rental housing, and home purchase assistance. TTWHA has also directly explored master leasing, purchase, and development opportunities. More information on TTWHA and the services offered can be found at www.ttipa.org. In 2022, the Member Agencies completed a strategic planning process to refine and expand services to public employees and explore opportunities to leverage resources and expand the original mission of TTWHA. The outcome was a unanimously adopted strategic plan which built upon existing capacity and programs while expanding the mission of TTWHA beyond serving only Member Agency employees to serving the overall local workforce everyone relies on. This shift would allow TTWHA to build critical mass needed to effectively delivery housing programs and services. It also opens up new funding sources and capacity. Member Agencies can still restrict their contributions to the services that serve their employees while projects that serve the overall workforce would be on an opt-in basis. The strategic planning process also included discussions regarding equitable funding allocations amongst the Member Agencies. Historically, costs were allocated based on employee headcount only. However, there is a wide range of employees from a few dozen to over a thousand and some of TTWHA's fixed costs for each Member Agency do not go up or down with employee headcount. As a result, TTWHA's Board amended the Member Agency Funding Policy to include 25% of the annual budget to be divided equally among all member agencies with 75% of the annual budget to be calculated using Member Agency employee headcount. Page 2of4 ANALYSIS/BODY: The results of TTWHA in just a very short time are impressive with support of over hundreds of Member Agency employees so far, with dozens of families currently in housing as a result of TTWHA efforts. The District through March 2023 has seen participation of 16 employees and the District was the first to execute a master leasing agreement for a unit in Tahoe Donner. 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, 2023 to June 30, 2024 budget is Attachment 1 and the District's allocated portion is $25,651 out of a total TTWHA budget of $510,000. The previous District contribution had been $14,092 with the increase due primarily to the change in allocation method. 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 programs on housing opportunities and support. It should be noted that the proposed budget covers the organization and employee support programs and any future projects, 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. Goals and Objectives: This item is in support of the following goals and objectives: 1.05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient and fiscally responsible manner. 1.05.030 Goals: 1. Manage for Financial Stability and Resiliency 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. 4. Take the best of private sector thinking to modernize the utility and add value to our communities. FISCAL IMPACT: The District's allocated portion of the Tahoe Truckee Workforce Housing Agency July 1 , 2023 — June 30, 2024 budget is $25,651. Page 3of4 The increased membership costs for the Truckee Tahoe Workforce Housing Agency along with the July 1, 2023 — June 30, 2024 budget were not included in the District's FY23 budget as the TTWHA budget and updated membership calculation methodology was created subsequent to the District's FY22-FY23 budget approval. Sufficient funds exist in the District's FY23 Electric and Water Operating Reserves for the increased membership fees and the projected FY24 expenses will be included in the next District budget for Board consideration. ATTACHMENTS: A. Final TTWHA Agency Budget 2023-24 Page 4of4