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Home My WebLink About#10 TTWFH AGENDA ITEM #10 Public Utility District m MEETING DATE: August 7, 2024 TO: Board of Directors FROM: Steven Poncelet, Public Information Officer SUBJECT: Consideration of Approval of the District's Contribution to the Truckee Tahoe Workforce Housing Agency's Fiscal Year 2024-2025 Budget in an Amount of$25,589. APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Approve the District's contribution of $25,589 for the Truckee Tahoe Workforce Housing Agency's Fiscal Year 2024-2025 budget. BACKGROUND: For a long time, the District has identified employee access to achievable local housing as an important need for employee recruitment and retention. To address local housing challenges, the District originally collaborated with local agencies by 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 resources and collaborate on ways to improve the Member Agency employee's access to housing. Through a series of meetings and investigations, it was determined that forming a Joint Power Authority (JPA) for housing was the best path forward. In July 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 the same amount as each Member Agency. In October 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 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, the Page 1 of 4 Page 16 of 87 creation of a website, a TTWHA Board planning meeting, and conducting a TTWHA Employee Housing Needs Study to better understand the scope of the housing issues and the needs of the Member Agency employees. Since the completion and dissemination of the employee housing survey towards the end of 2020, TTWHA has worked towards maturing the organization, executed immediate programs to start helping employees, while also exploring longer-term solutions and partnerships. This included Employees `Concierge Services, the Housing Match Program, the TTWHA Housing Work Plan development, and the cultivation of regional partnerships with agencies and the development community. In 2020 and 2021, TTWHA was approached by the Town of Truckee, Placer County, and Nevada County to join TTWHA and provide benefits for their public employees. The Member Agencies agreed, and TTWHA was expanded to seven members, 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.ttopa.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 local workforce everyone relies on. This shift would allow TTWHA to build the critical mass needed to effectively deliver 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 among 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 calculated using Member Agency employee headcounts. In 2023, TTWHA's Board conducted an extensive executive search to replace TTWHA's founding Executive Director, Emily Vitas, who left Truckee for other opportunities. TTWHA Board conducted a successful recruitment with the hiring of Heidi Volkhardt Allstead as the TTWHA Executive Director. Heidi and the TTWHA team have been working hard to continue TTWHA's current member services, develop new services, explore master leasing and new development opportunities, and expand TTWHA's funding sources. Page 2 of 4 Page 17 of 87 ANALYSIS AND BODY: The results of TTWHA in just a very short time are impressive. The organization has engaged with over six hundred Member Agency employees so far, with dozens of families currently in housing due to TTWHA efforts. Through June 2024, TTWHA has engaged with 12 District employees through its concierge service, matched three employees with rentals through the Home Rental Program, and assisted one employee in purchasing a home. TTWHA enabled the District's second Master Lease Program to support our management recruitment efforts. TTWHA 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 has also created 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 TTHWA July 1, 2024, to June 30, 2025, budget is Attachment 1 and the District's allocated portion is $25,589, which is essentially the same as the previous year and represents less than 6% of the total Member Agency contributions. The District's portion covers the Membership Agencies employee support programs. The proposed TTWHA budget will continue to evolve the organization and existing programs, while exploring more substantial opportunities, such as executing master leasing programs or actual development of workforce housing on publicly-owned land. TTWHA is also exploring outside sources of funding (grants, donations, and fee-for- service) and expanding its capacity to further serve the community. The budget includes ongoing TTWHA Member Agency employee programs for housing opportunities and support. Any future projects, such as master leasing or construction of housing for our employees, would be discretionary on the part of each Member Agency, and would be brought before the District's Board separately for consideration. GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 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. Modernize the utility and add value to our communities through collaboration and innovation. Page 3 of 4 Page 18 of 87 FISCAL IMPACT: The annual membership dues for the Truckee Tahoe Workforce Housing Agency FY24/25 budget are $25,589. The District's FY24 budget includes $20,000 on 1/2.2.923.00.738 (PROF SVC: WORKFORCE HOUSING). We forecast sufficient savings in the Electric and Water Department's general operating budgets to cover their respective portions ($2,794 or 50% each) of the remaining $5,589 over budget. ATTACHMENTS: 1. TTWHA Budget_070124-063025_FINAL Page 4 of 4 Page 19 of 87 TTWHA Budget_070124-063025_FINAL.xlsx Truckee Tahoe Workforce Housing Agency 2024-25 Budget Approved 7/17/2024 Revenue Budget 2024-25 6100 Contribution Revenue I Donations $50,000.00 Total Contribution Revenue I Donations $50,000.00 6104 Government 1 2024-2025 Member Agency Fee Contributions Tahoe Forest Hospital District $196,642.00 Tahoe Truckee Unified School District $99,169.00 Placer County $35,092.00 Town of Truckee $34,685.00 Truckee Donner Public Utility District $25,589.00 Nevada County $20,566.00 Truckee Tahoe Airport District $18,257.00 Total Contribution + Government 1 2024-2025 Member Agency Fee Contributions $430,000.00 6200 Programs: TFHD Home Purchase Assistance Program $35,000.00 6200 Programs: TTAD Home Purchase Assistance Program $5,000.00 6200 Programs: Legislative Policy Work -SBC Contract $31,000.00 Total Program Revenue $40,000.00 Development Related Fees - Due Diligence $0.00 TTUSD -Alder Creek $0.00 NV County-Hobart Mills $0.00 Total Development Related Revenue $0.00 TOTAL Revenue $520,000.00 Expenses Budget 2024-25 8000 Salaries & Benefits 8010 Wages $214,882.00 8010 Benefits $107,750.00 8015 Continuing Education $2,000.00 80xx Cell Phone & Mileage Reimbursements $1,334.00 Total Salaries & Benefits $325,966.00 1 Page 20 of 87 TTWHA Budget_070124-063025_FINAL.xlsx Truckee Tahoe Workforce Housing Agency 2024-25 Budget Approved 7/17/2024 Revenue Budget 2024-25 6100 Contribution Revenue I Donations $50,000.00 Total Contribution Revenue I Donations $50,000.00 6104 Government 1 2024-2025 Member Agency Fee Contributions Tahoe Forest Hospital District $196,642.00 Tahoe Truckee Unified School District $99,169.00 Placer County $35,092.00 Town of Truckee $34,685.00 Truckee Donner Public Utility District $25,589.00 Nevada County $20,566.00 Truckee Tahoe Airport District $18,257.00 Total Contribution + Government 1 2024-2025 Member Agency Fee Contributions $430,000.00 6200 Programs: TFHD Home Purchase Assistance Program $35,000.00 6200 Programs: TTAD Home Purchase Assistance Program $5,000.00 6200 Programs: Legislative Policy Work -SBC Contract $31,000.00 Total Program Revenue $40,000.00 Development Related Fees - Due Diligence $0.00 TTUSD -Alder Creek $0.00 NV County-Hobart Mills $0.00 Total Development Related Revenue $0.00 TOTAL Revenue $520,000.00 Expenses Budget 2024-25 8000 Salaries & Benefits 8010 Wages $214,882.00 8010 Benefits $107,750.00 8015 Continuing Education $2,000.00 80xx Cell Phone & Mileage Reimbursements $1,334.00 Total Salaries & Benefits $325,966.00 1 Page 20 of 87 TTWHA Budget_070124-063025_FINAL.xlsx Truckee Tahoe Workforce Housing Agency 2024-25 Budget Approved 7/17/2024 8100 Professional & Outsourced Svcs 8110 Accounting &Audit $30,660.00 8115 Website Design $500.00 8130 Legal $10,000.00 8150 Other Professional Services 8151 Housing Match $20,000.00 8152 Strategic Planning $0.00 8153 HPAP(TFHD + TTAD) $11,200.00 8154 Development on Public Land $60,000.00 TTUSD-Alder Creek $0.00 NV County-Hobart Mills $0.00 8155 Other Contracted Services $0.00 815x Legislative Policy Work- SBC $61,048.00 Total Professional & Outsourced Svcs $193,408.00 8200 Sales & Marketing_Community Outreach 8215 Board Meetings and Workshops $1,000.00 8220 Community Engagement/ Business Development $1,000.00 8250 Marketing &Advertising $4,500.00 Total Sales & Marketing_Community Outreach $6,500.00 8400 Facility Costs 8410 Rent Expense $4,050.00 8460 Telephone & Internet $750.00 Total Facility Costs $4,800.00 8500 Other G&A 8510 Office Supplies $200.00 8540 Office Equipment non cap $250.00 8550 Software & Subscription Svcs $6,000.00 8560 Membership & Dues $200.00 8600 Bank Service Charges $300.00 8620 Insurance Expense $5,500.00 Total Other G&A $12,450.00 TOTAL Expenses $543,124.00 TOTAL Revenue $520,000.00 TOTAL Remaining Funds $ (23,124) TOTAL RESERVE FUND BALANCE 7/1/24 $ 250,749.00 2 Page 21 of 87