Agenda packet — South Lake Tahoe City Council, May 3, 2022 (part 3 of 3)

After evaluation the selected firm is Ralph Andersen & Associates. Staff is requesting Council award the contract to Ralph Andersen & Associates in an amount not to exceed $84,500.

Requested Action / Suggested Motions: 1) Pass a Motion authorizing and directing the Mayor to execute a Professional Services Agreement with Ralph Andersen & Associates for Classification and Compensation Study in an amount not to exceed $84,500; and 2) Pass a Resolution allocating $84,500 from undesignated funds from the 2021-2022 fiscal budget for this project.

Responsible Staff Member: Tom Stuart, Assistant to the City Manager II Responsible Staff Member: Tom Stuart, Assistant to the City Manager II (530) 542-6052 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff_Report_-_Classification___Compensation_Study.docx 02-Resolution-Award_of_Classification_and_Compensation_Study.docx 03-RFP 2022-03-07 Classification and Compensation.pdf
04-Professional Services Agreement with Ralph Andersen & Associates.docx 909
Council Agenda Report May 3, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Professional Services Agreement with Ralph Andersen & Associates for Classification and Compensation Study
Location: Citywide
Responsible Staff Member: Tom Stuart, Assistant to the City Manager II (530) 542-6052 Background: A classification and compensation strategy, which defines the types of jobs and how much those jobs will pay is the framework set up to make sure we manage job classifications and pay employees in a manner that is fair, strategic, and competitive within a given market.

The classification study would review and analyze what the staff member is actually doing and make a recommendation of the classification that should be assigned.

The analysis would include meeting with staff, City leadership, and collective bargaining units about the study.

At the completion of the study staff will bring forward the findings to Council for discussion and direction with regards to an ongoing classification and compensation strategy.

At the February 1, 2022 Council meeting, Council approved an RFP for a classification and compensation study.

Issue and Discussion: The City issued an RFP through Planet Bid on Feb 3, 2022, the RFP closed on March 4, 2022.

The City received two proposals for consideration.
1) Gallagher
2) Ralph Andersen & Associates
Procedures for Proposal Evaluations
The City has standard policies and procedures in place for conducting thorough evaluations of proposals. First, the categories and scoring criterion, including points available for each category is described clearly so that bidders are able to identify the categories of the highest point value and thus, prepare their proposal accordingly. Secondly, a cross section of staff from various departments including Human Resources, City Manager’s Office and Finance were selected to perform an independent evaluation of the proposals.
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Council Agenda Report May 3, 2022 Page 2 of 2
Each proposal was scored on the following criteria:
1) Responsiveness of the Proposal based on the bidder’s compliance with the requirements of the proposal. (Pass or Fail)
2) Cover letter introducing the company and summarizing key aspects of services to be provided. (0-5 points)
3) Executive Summary based on the bidder’s ability to describe the overall approach. (0-10 points) 4) Company History, Background and Experience (0-20 points) 5) Scope of Work/Implementation (0-35 points)
6) Project Budget (0-25 points)
7) References (0-5 Points)
Evaluation Results:

Bidder Overall Average Score (100 pts possible)

1. Ralph Andersen & Associates 91.33

2. Gallagher 76.66
Utilizing the evaluation method and criteria described above the reviewers have scored Ralph Andersen & Associates as the highest scoring participant.

Staff is requesting Council to award the contract to Ralph Andersen & Associates in an amount not to exceed $84,500.

Financial Implications: Staff is requesting the amount of $84,500 to be allocated from the 2021-2022 General Fund Undesignated Excess Reserves to account 100-01320-42020 to do a complete classification and compensation study.
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Resolution 2022-XXX May 3, 2022 Page 1 of 1
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
May 3, 2022
Appropriating $84,500 from General Fund Undesignated Excess Reserves for Professional Services Agreement with Ralph Anderson & Associates for Classification and Compensation Study

BACKGROUND
A. On February 1, 2022, Council approved staff to conduct an RFP for a Classification and Compensation study.

B. Staff received two responses to the RFP for a Classification and Compensation study.

C. Three reviewers representing various departments performed an independent evaluation of the proposals and recommend Ralph Andersen & Associates as the highest scoring participant bidder.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Appropriates $84,500 in General Fund Undesignated Excess Reserves to account 100- 1320-42020

2. Authorizes any other action be taken to implement the above.

Adopted by the City of South Lake Tahoe City Council on May 3, 2022 by the following vote:

Yes:

No:

Absent:

Abstain:
___________________________ Date:___________
Devin Middlebrook, Mayor
Attest:
____________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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REQUEST FOR PROPOSALS
Classification and Compensation
RFP # 2022-03-07
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SUMMARY
The City of South Lake Tahoe is requesting proposals from qualified interested, highly qualified consulting firms to conduct a comprehensive citywide classification and compensation study.

Proposals are due on or before March 4, 2022 no later than 5:00 p.m. (Pacific Standard Time) at City offices (1901 Lisa Maloff Way, Suite 205, South Lake Tahoe, CA 96150). Proposals received after the deadline will not be accepted. Proposals and required copies must be submitted by U.S. mail, personal delivery or Electronic submittal through Planet Bids portal. E-mail submission will not be accepted.

City of South Lake Tahoe
Attn:

Tom Stuart
1901 Lisa Maloff Way, St 205
South Lake Tahoe, CA 96150
Read this RFP document carefully as the award will be given to the most “responsible and responsive” Proposer responding to this RFP. The City of South Lake Tahoe reserves the right to accept or reject any or all proposals or to make no award at all, to extend the period for accepting proposals, to advertise the RFP at any time and to waive any minor irregularities in any proposals.

In the opinion of the City of South Lake Tahoe, this RFP is complete and without need of explanation.

However, if you have questions, or should you need any clarifying information, please use the Q&A feature that is found within Planet Bids, where the RFP is posted.

Please note that no information given will be binding upon the City unless such information is issued in writing as an official addendum to this RFP.

TIMELINE OF CRITICAL DATES
Release of RFP February 3, 2022
Deadline for Question Submittal via Planet
Bids
February 14, 2022
RFP Answers Available February 11, 2022
RFP submittals DUE March 4, 2022, 5:00 PM
Selection Committee Review Period/Interviews March 21, 2022 – March 25, 2022 Recommendation of finalist March 28, 2022
Review and approval by City Council April 2022
Service Agreement Start Date April 18, 2022
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SUBMITTAL PROCEDURES

1. Register with the City
All Proposers must complete a “Vendor Information Sheet” to be entered in the City of South Lake Tahoe Vendor Database, which is required to submit a proposal. Proposers will be notified by the City of any addenda that may be issued to this Request for Proposal (RFP). Proposers must register in the City’s Vendor Database to be notified of such addenda To register, go to: https://pbsystem.planetbids.com/portal/14997/portal-home and follow the instructions applicable to Proposer. Following submission, Proposer will receive a confirmation message within 24 hours from the City. Proposers are solely responsible for maintaining up to date and accurate information in the Vendor Database.

2. Number of Copies
The Proposer must submit in a sealed package(s) one (1) ”Original”, and four (4) complete copy sets of the “Original” response or submit through Planet Bids on-line portal. Proposals shall not be e-mailed or faxed to the City. Proposals not received by the date and time specified in this RFP, will be rejected. Documents submitted in response to this RFP will become the property of the City of South Lake Tahoe and will be regarded as public record under California Public Records Act under Government Code 6250 et seq., and subject to review or release to the public, excluding financial records marked “confidential” which shall be available for the Proposer to pick up following a review and selection of the firm(s).

3. Format
Font, Type and Style: All proposals shall be single sided and professionally prepared (no handwritten proposals will be accepted). There are no requirements on font size, type or style requirements.

Not Bound: Proposals shall not be bound with anything other than a clip or staple to allow the City to make additional copies as needed. No comb binding or permanent binding is permitted.

4. Submittal Deadline
Response to this RFP is due on or before 03/04/2022 no later than 5:00 p.m. (Pacific Standard Time) at City offices (address below) or through Planet Bids on-line portal. Reponses received after the deadline will not be accepted; there are no exceptions. Fax and Electronic mailed (e-mail) submission will not be accepted. Submit Proposals to:

City of South Lake Tahoe
Attn:

Tom Stuart
1901 Airport Road, Suite 205
South Lake Tahoe, CA 96150

5. Selection Process
A Selection Committee consisting of City Staff will evaluate the submitted proposals. Proposer(s) will be objectively evaluated based on their responses to the project scope outlined in this RFP. The written proposal should clearly demonstrate how the Proposer could best satisfy the requirements of the City. 915
The Selection Committee will utilize the Evaluation Method and Criteria described on page 10 of this RFP to rate and rank each proposal.

If more information is needed following a review of the Proposals, the Selection Committee may invite one or more of the Proposers to a Selection Interview and may conduct a site visit to Proposers claims office. Upon completion of interviews, (if needed) a recommendation by the Selection Committee to the City Manager/City Council will be made at that time and awarded in accordance with the City of South Lake Tahoe Procurement Policies & Procedures.

The City of South Lake Tahoe reserves the right to accept or reject any or all proposals or to make no award at all, to extend the period for accepting proposals, to advertise the RFP at any time and to waive any minor irregularities in any proposal.

6. Professional Services Agreement
The Professional Services Agreement with the selected Proposer will within 30 days of award of contract. The selected Proposer will be required to sign the City’s Standard Professional Services Agreement. A sample of this Agreement is attached hereto as Exhibit B, and the City reserves the right to amend or edit this Agreement however it sees fit.

7. Reservations
a) The City reserves the right to reject any and all proposals, whether or not minimum qualifications are met, and to modify, postpone, or cancel this Request for Proposal, in whole or in part, or decide to award a contract to perform only some of the services outlined in this Request For Proposal, without liability, obligation, or commitment to any party, firm, or organization.
b) In addition, the City reserves the right to request and obtain additional information from any Proposer and to negotiate the final scope of services with the selected Proposer. The City is not liable for any costs incurred by Proposers prior to issuance of an agreement, contract or purchase order. Costs of developing the proposals, oral presentations or any other such expenses incurred by the Proposer in responding to the RFP are entirely the responsibility of the Proposer, and shall not be reimbursed in any manner by the City of South Lake Tahoe. c) Only the City Council of South Lake Tahoe, or the City Manager after being duly authorized by the City Council, may execute the Agreement with the successful Proposer. Further, it is understood that respondents must independently evaluate the information in this RFP and that the City makes no guarantee of data accuracy.
d) The City reserves the right to waive or permit cure of minor informalities and/or insignificant mistakes such as matters of form rather than substance and to conduct discussions and negotiations with any qualified respondent in any manner deemed necessary by the City to serve its best interests. The City also reserves the right, based on its sole judgment and discretion, to award a contract based upon the written proposals it receives without conducting discussions, interviews or negotiations.
e) If, in the opinion of the City, a proposal contains false or misleading statements or references, it may be rejected without notice to Proposer.
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f) The City reserves the right to obtain written clarification of any point in a Proposer's proposal or to obtain additional information necessary to properly evaluate a particular proposal. Failure of a Proposer to respond to such a request for additional information or clarification may result in rejection of the proposal.
g) The City reserves the right, without qualification, to select a Proposer for further discussions based solely on the content of the RFPs and relevant information obtained from others concerning the respondent's respective records of past performance. h) Proposer agrees that any response submitted to this RFP will remain current and valid for a period of not less than 120 calendar days from the proposal due date.

8. Local Business Preference (applies to RFP’s over $50,000 only) a) The City shall apply a five percent discount to all local businesses which submit proposals for services for The City of South Lake Tahoe. The City shall evaluate the local businesses’ proposals as though the proposal had been submitted at a cost of five percent lower than the cost submitted.
b) Local Business shall mean a business which maintains its principle place of business in a fixed office within the City of South Lake Tahoe and possesses a current South Lake Tahoe business license. To establish a principle place of business in South Lake Tahoe, a business must demonstrate the majority of its principals are based in the South Lake Tahoe office, and that it pays South Lake Tahoe payroll taxes on at least 51 percent of its total payroll.

9. Bidder’s Security
a) When deemed necessary, bidders security may be prescribed in invitations to bid, RFP’s and RFQ’s. Bidders shall be entitled to return of bid security; provided however, that a successful bidder shall forfeit his or her bid security upon his or her refusal or failure to execute that contract within 10 days after receipt of contract.
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INTRODUCTION

8. Background
The City of South Lake Tahoe includes a population of about 24,000. It is located in the beautiful Sierra Mountains, on the edge of Lake Tahoe. “America’s All Year Playground” is located on border of California and Nevada, approximately 90 miles East of Sacramento. Founded in 1965. The City of South Lake Tahoe is a general law city with a council-manager form of government. The City employs approximately 203 allocated full-time positions, and approximately 15-30 part-time seasonal/temporary positions. .

Although the last compensation study included health, dental, and vision was completed in 2018. The compensation study overview provided a high-level overview of the methodology we used to select comparator agencies (geography, labor market). The last full compensation and classification study was conducted in 2007. Over the last several years, the City has internally reviewed and adjusted individual positions and created new classifications as needed. A complete list of all classifications is found as Attachment 1A. The job descriptions may be found on the City’s website at:
https://www.governmentjobs.com/careers/slaketahoe/classspecs .

The City’s employees are divided into seven categories: Unrepresented (department heads, confidential management employees), Administrative & Confidential (salaried, Local #39), General and Public Works (hourly, Local #39), Police Officer’s Association (POA), Police Employees Association (PEA), Police Supervisors Association including Battalion Chief (PSA), and Fire Employees Association (Fire).

All positions, salaries, and salary tables are authorized through a Salary Resolution adopted by City Council annually, changes in pay schedules, reorganization, and/or other actions requiring council action.

The City has reduced and increased employees and experienced changes in levels of service. As such, duties and responsibilities that were previously shared with multiple positions have been combined and reallocated. Though the City has provided regular salary range increases, citywide salary surveys have not been conducted on a regular basis. The City seeks to revise outdated classifications and maintain a competitive salary structure so that it can recruit and retain a quality labor force.

9. Objective
The City of South Lake Tahoe is requesting proposals from interested, highly qualified consulting firms to conduct a comprehensive citywide classification and compensation study.

Our desire is to secure a firm who will review the existing job descriptions and compensation system including all benefits, analyze the current jobs performed by employees, determine the market compensation for each position, establish the market value of the employee benefits package and provide a market analysis of the total compensation including salary and benefits. We expect the consultant to make recommendations for adjustments to compensation and benefits resulting from internal salary compaction, increased duties that do not warrant a reclassification, or a significant lag to comparable internal positions.

The selected consultant will work directly with the Human Resources Manager, department heads, and bargaining units for all activities involved with this project. The following activities and/or deliverables are to be included in the study, consistent with the Scope of Work as detailed:
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Classification Study Activities:
 Initial Document Reviews and Meetings with Staff
 Orientation Meetings with Employees
 Distribution of Job-Related Questionnaires
 Analysis and Data Review
 Employee/Supervisor/Management Interviews
 Informal Appeal Process
 Project Team Meetings
Classification Study Deliverables:
 Classification Concept/Preliminary Allocation
 Draft Class Description
 Finalized Classification Plan
 Draft Interim Report
 Final Report
Compensation Study Activities:
 In Partnership with Bargaining Units, Identify Comparator Agencies, Benchmark Classes, Benefits
 Compensation Data Collection
 Internal Relationship Analysis/Internal Alignment
 Analysis and Data Review
 Formal Appeal Process
 Project Team Meetings
Compensation Study Deliverables:
 Draft Compensation Findings
 Salary Structure Recommendations
 Update Citywide Job Class Specifications and Job Descriptions  Draft Final Report
 Final Report
 Presentation to City Council
The City desires proposals from firms having specific experience and qualifications in conducting classification and compensation studies. For consideration, proposals must contain evidence of the proposer's experience and abilities in the specified area and other disciplines directly related to the proposed services. All proposers shall provide profiles and resumes of the staff to be assigned to the project.

The City intends to select one firm to provide this service. The City reserves the right to waive any and all requirements for this proposal process.

SCOPE OF SERVICE

10. Scope of Work to be Performed
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Classification
 Review all job class specifications and revise where necessary. Confirm legal compliance with federal and state labor and employment laws, including Fair Labor Standards Act (exempt/nonexempt) and Americans with Disabilities Act. Update technical requirements where necessary.  Verify accuracy of comparable classifications by reviewing job specifications from labor market agencies.
 Confirm validity of current job families, classification series, and career ladders to ensure accuracy of internal alignments.
 Draft and submit up-to-date and accurate job class specifications for all classifications including seasonal part-time, as needed, which uniformly reflect distinguishing characteristics, essential job functions, minimum qualifications, working conditions and physical demands, license requirements, certification requirements, and regulatory requirements.  Recommend deletion of outdated or unnecessary job classes.  Assist the City in developing a classification and compensation policy with the goal of providing ongoing structure and consistency for classification and compensation analysis and changes in future years.
 Develop a communication plan regarding the classification and compensation study to include consultation with line managers, supervisors, and employee representatives on the objectives, processes, and progress of the study.
 Facilitate meetings with employees explaining the objectives and processes of the study, including assigning and reviewing Job Analysis Questionnaires (JAQs) as needed.  Provide progress reports outlining the scope of work completed to date, scope of work completed during the period, and summary statement of project progress.  Present draft results of the survey to management and bargaining units in a group meeting setting(s).
 Design and conduct an employee review and appeal process including a clear understanding of the process employees must follow and what they should expect in response to their appeal. The process must include direct contact with consultants.

Compensation
 Analyze labor market agencies and, in partnership with City bargaining units, recommend appropriate agencies to include in compensation studies.  Assist City in developing a compensation philosophy and practices relative to other public jurisdictions.
 Determine the City’s current labor market position with regard to salaries and benefits, and propose target compensation goals, while considering the City’s financial constraints.

Recommend salary range adjustments for classifications, based on study results.  Considering the City’s salary structure and compensation goals, develop a strategy for implementing the results of the study, including how to establish salaries for classifications that are above market. Considering the City’s financial constraints, provide multiple options for implementation, including partial and full implementation over a multi-year period. Assist in implementing the results of the study by determining the short and long term fiscal impact to the City for providing market adjustments.
 Conduct a total compensation analysis to provide the City with an accurate assessment of how its compensation plan compares with the selected labor market agencies. The total compensation analysis includes the employer cost for benefits including but not limited to:
base salary, cash supplements, certification pay, auto allowance, standby pay, PERS, etc.  Conduct analysis of employer paid insurance premium contributions for health, dental, vision insurance, life insurance, and short-term disability insurance.  Conduct an analysis of leave benefits including holidays, sick leave, administrative leave, and 920 vacation.
 Complete an internal base salary relationship analysis, including the development of appropriate internal relationship and equity guidelines.  Develop externally competitive and internally equitable salary recommendations for each classification included within the study.
 Train City Staff in the methodology used to systematically assess job classifications in order to maintain internal compensation equity in the future when adding, changing or deleting classifications.

Deliverables
 Reports: Consultant is to provide monthly project status reports to the Human Resources Manager outlining the following information:
o The specific accomplishments achieved during the reporting period. o Specific tasks completed pursuant to the provisions of the contract and the completion of such tasks.
o The project completion dates for the remaining specific tasks required by the Consultant. o Any project component, activity, or problem that could result in a delay of the project. o Any current or future changes in project personnel or their assignments. o Delays caused by City personnel.
 Benchmark Reports: Benchmarks of project completion are measured by the following deliverables:
o Completion of all necessary department and employee interviews. o Results of data gathering phase.
o Draft of preliminary finding and recommendations.
o Staff training on recommendations/systems.
o Final report of finding and recommendations. (Preliminary if requested.)

PROPOSAL CONTENT REQUIREMENTS

11. Proposal Requirements - All proposals must include the following information and shall be organized as described below.

The cover letter shall be addressed to Tom Stuart, and at a minimum, must contain the following:
• Identification of Firm, including name, address and telephone number • Name, title, address and telephone number of contact person during period of proposal evaluation • A statement to the effect that the proposal shall remain valid for a period of not less than 120 calendar days from date of submittal
• Signed by person authorized to bind the Firm to the terms of the proposal.

The intent of this narrative is to convince the City the Proposer understands the requirements of proposal, the nature of the work, and the level of effort necessary to successfully provide the defined services.

A. Cover Letter (0-5 points)
B. Executive Summary (10 points)
C. Company History, Background and Experience (0-20 points) 921
Describe the Company’s history and organizational structure, including the size of the company, location of office(s) and years in business. Provide resumes for project team members. Also include the Firm’s background, experience, and capacity to undertake the project/services for the City of South Lake Tahoe in conformity with the requirements of the RFP.

Describe the Company’s general approach to managing the services provided including an explanation of the methodology to be followed and specific plans to manage, control, and supervise the services in order to insure satisfactory provision of services. In developing thework plan, reference should be made to the specific requirements and specifications noted in the Scope of Services (pages 8-9) Provide a delivery schedule designed to meet the requirements of the City.

An implementation time-line from the Company is required. Provide description implementation plan considerations, including timeframes and deliverables for variousstages Provide a description of the project cost and/or fees itemized according to the RFP proposal. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs, including all out-ofpocket expenses. The City of South Lake Tahoe will not be responsible for the expensesincurred in preparing and submitting the proposal. The Company shall present all costs, fees, taxes, and charges based on achievement of deliverables, which
should be outlined in the Company’s cost proposal.

Provide a description of accounts/ agreements of a similar nature including at least three (3) recent client references with names and telephone numbers, contact persons.

EVALUATION METHOD & CRITERIA
Proposals will first be reviewed for responsiveness to the requirements. If any information is missing from the required content, the proposal may be deemed non-responsive and returned to proposer and any further review is subject to the City’s discretion (see Reservations, page 4).

The Selection Committee will make a recommendation based on the criteria in this Proposal to award the contract/agreement to a selected Proposer. The City may conduct interviews as described on page 4 under Selection Process.

12. Evaluation Criteria
Recommendations for selection will be based on the following weighted criteria of 100 possible points and passing status on all Pass or Fail categories, if any.

D. Scope of Work/Implementation (0-35 points)
E. Project Budget (0-25 points)
F. Description of Recent Projects/References (0-5 points) 922
Criteria Points
A. Cover Letter 5
B. Executive Summary 10
C. Company History, Background & Experience 20
D. Scope of Work/Implementation 35
E. Project Budget 25
F. Description of Recent Projects/References 5
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Exhibit A

SAMPLE PROFESSIONAL SERVICES AGREEMENT
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CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of the day of 202X by and between the City of South Lake Tahoe, a municipal corporation (“City”) and (“Consultant”).

RECITALS
A. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement.

B. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.

C. City desires to retain Consultant to render professional services as set forth in this Agreement.

AGREEMENT

1. Scope of Services. Consultant shall perform the services set forth in this agreement and shall provide said services at the time, place, and in the manner specified in this agreement. Consultant shall have no power or authority by this Agreement to bind City in any respect.

The Consultant agrees that it has satisfied itself by its own investigation and research regarding the conditions affecting the work to be done and labor and materials needed, and that its decision to execute this Contract is based on such independent investigation and research.

All services provided by Consultant pursuant to this Agreement will be provided in accordance with the terms set forth in the Exhibit A, “Scope of Services,” attached hereto and incorporated herein by reference. Exhibit B, “Compensation Schedule,” attached hereto and incorporated herein by reference, outlines the fees and compensation which shall be paid pursuant to this Agreement.

2. Term/Time of Performance. The services by Consultant are to commence n of the Agreement and continue for years.

3. Compensation. Compensation to be paid to Consultant shall be in accordance with the Schedule set forth in Exhibit B which is attached hereto and incorporated herein by reference. In no event shall Consultant’s compensation, including travel and out-of-pocket expenses, exceed 925
without additional written authorization from City. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to City at the time of payment. Payment is contingent upon compliance with all terms and conditions of this Agreement, as set forth herein. Consultant shall obtain prior written authorization from the City Project Manager for any costs in excess of budgeted amounts for each line item, task, or obligation under the Scope of Services.

4. Method of Payment. Consultant shall submit monthly billings to City describing the work performed during the preceding month. Consultant’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, the applicable hourly rate, and a description of any reimbursable expenditures. City shall pay Consultant no later than 30 days after approval of the monthly invoice by City staff.

5. Extra Work. At any time during the term of this Agreement, City may request that Consultant perform extra work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, extra work without prior written authorization from City.

6. Termination. This Agreement may be terminated by City or Consultant immediately for cause or without cause upon thirty days (30) days written notice of termination. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination, and City shall be entitled to all work performed to that date.

Termination, revocation, or expiration of this Agreement shall not release either party from liability resulting from an event which occurred prior to such termination, revocation or expiration.

7. Ownership of Documents.

All plans, studies, documents and other writings, including working notes and internal documents, prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, shall become the property of City upon payment to Consultant for such work, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party.

Consultant shall, at Consultant’s expense, provide such reports, plans, studies, documents and other writings to City upon written request. All documents prepared by Consultant are confidential and shall be maintained to preserve 926 their confidential nature. Release of any such documents to third parties shall only be made upon written consent of City.

8. Consultant’s Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant for services provided pursuant to this Agreement.
b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from records shall be available at Consultant’s address indicated for the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to City for inspection at City offices when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City may, by written request by any of the above-named officers, require that custody of the records be given to City and that the records and documents be maintained at City offices. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

9. Independent Contractor. It is understood that Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and shall not act as an agent or employee of City. Consultant shall obtain no rights to retirement benefits or other benefits which accrue to City’s employees, and Consultant hereby expressly waives any claim it may have to any such rights. All employees, agents, contractors or subcontractors hired or retained by Consultant are 927 employees, agents, contractors or subcontractors of Consultant and not of the City.

City is not required to make any deductions or withholdings form the compensation payable to Consultant under the provisions of this Contract, and is not required to issue W-2 Forms for income and employment tax purposes for any of Consultant’s assigned personnel. Any third party persons employed by Consultant shall be entirely and exclusively under the direction, supervision, and control of Consultant. Consultant hereby indemnifies and holds City harmless from any and all claims that may be made against City based upon any contention by any third party that an employer-employee relationship exists by reason of this Contract.

10. Interest of Consultant. Consultant, (and principals, associates and professional employees of consultant) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.

Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
a. Will conduct research and arrive at conclusions with respect to his/her rendition of information, advice, recommendation or counsel independent of the control and direction of City or of any City official, other than normal agreement monitoring;and, b. Possesses no authority with respect to any city decision beyond rendition of information, advice, recommendation or counsel. [FPPC Reg. 18700(a)(2)].

11. Professional Ability of Consultant. City has relied upon the professional training and ability of Consultant to perform the services hereunder as a material inducement to enter into this Agreement. Consultant shall therefore provide properly skilled professional and technical personnel to perform all services under this Agreement. All work performed by Consultant under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Consultant’s field of expertise.
928

The City, its officials, officers, elected officials, appointed officials and employees shall not be liable at law or in equity as a result of any failure of Consultant to comply with this section.

In the event it is determined that the Consultant is required to pay prevailing wages for the work performed under this Agreement, the Consultant shall pay all penalties and wages as required by law.

13. Licenses. Consultant represents and warrants to City that it has all licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Consultant to practice its profession. Consultant shall maintain a City of South Lake Tahoe business license at all times services are performed under this Agreement. Consultant acknowledges that payments made pursuant to this Agreement may be withheld until this provision has been satisfied.

14. Indemnity. Consultant hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, officers, agents, employees and volunteers from and against any liability for any and all claims, demands, actions, losses, damages and injuries, direct or indirect (including any and all costs and expenses in connection therein), arising out of this Agreement or caused in any way by Consultant’s negligent performance of this Agreement or its breach of its obligations contained in this Agreement, except for any such claims arising out of the negligence or willful misconduct of the City.

Consultant agrees to defend City from and against any and all losses, damages, claims costs and fees arising out Consultant’s negligent acts, errors, omissions, regarding this Agreement, the Consultant’s work under this Agreement, or the consultant’s Scope of Work.

City does not, and shall not, waive any rights against Consultant which it may have by reason of the aforesaid hold harmless agreement, because of the acceptance by City, or the deposit with City by Consultant, of any of the insurance policies hereinafter set forth.
929
This hold harmless agreement by Consultant shall apply to all damages and claims for damages, or alleged to have been suffered, by reason of any of the aforesaid operation of Consultant or any subcontractor, regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

Consultant further waives any and all rights to any type of express or implied indemnity or right of contribution from the City for any liability, claims, demands, costs, charges and expenses and causes of action of whatsoever arising out of or in any way connected with this Agreement, and consultant’s work under this Agreement.

15. Insurance Requirements.
a. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies.
i. Workers’ Compensation Coverage. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers’
Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation of all Workers’ Compensation policies must be received by City at least thirty (30) days prior to such change. Consultant shall provide thirty (30) days written notice of nonrenewal of any Workers’ Compensation policies. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City.
ii. Commercial General Liability Coverage. Consultant shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. Coverage must be made on
the standard Occurrence form. Claims-Made forms are not acceptable without prior written consent of City. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of Consultant. If a commercial general liability insurance form or 930 other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general
aggregate limit shall be at least twice the required
occurrencelimit.
iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and nonowned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each
occurrence.
iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant or by its
employees, or subcontractors. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined singlelimit per occurrence basis. b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a AM Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
i. City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional
insured’s under Consultant’s General Liability and Automobile Liability policies with respect to liability arising out of this Agreement and/or work performed by or on behalf of the
Consultant, including materials, parts or equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by City, including any self-insured retention City may have, shall be considered excess insurance only and shall not contribute withit.
931
iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring Consultant.
iv. The insurer waives all rights of subrogation against City except for Consultant’s Professional Liability and Employers’ Liability policies, its elected or appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. No policies of insurance carried by Consultant shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail.
c. Deductibles and Self-Insured Retentions. The Consultant shall be responsible for all deductibles in all of Consultant’s insurance policies.

The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.
d. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Consultant shall not commence work under this contract until all insurance required under this section has been approved by City as to form, amount and carrier, nor shall Consultant allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.

16. Notices. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below.

Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: City of South Lake Tahoe 1901 Lisa
Maloff Way
South Lake Tahoe, CA 96150 932
Provide a copy to: City Attorney’s Office
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite
300 South Lake Tahoe, CA
96150
If to Consultant:

Provide a copy to:

17. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in the Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation
on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law.

18. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

19. Dispute Resolution. Any dispute concerning this Agreement will be first submitted to the City Manager or his designee for resolution. If no resolution is reached, such dispute shall be submitted to the City Council. The decision of the City Council shall be final and shall be appealable only to the El Dorado Superior Court pursuant to California Code of Civil Procedure §1094.5, and as provided by law.

20. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in the Superior Courts in the County of El Dorado, South Lake Tahoe Division.

21. Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any Consultant or person, other than the independent contractors hired in accordance with Consultant’s standard business practice, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any Consultant or person, other than a bona fide employee working solely for Consultant or an 933 independent contractor hired as discussed above, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

22. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, disability, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan, or other related programs or guidelines currently in effect or hereinafter enacted.

23. Drug-Free Workplace Certification. By signing this Agreement, Consultant hereby certifies under penalty of perjury under the laws of the State of California that the Consultant will comply with the requirements of the DrugFree Workplace Act of 1990 (Government Code Section 8350, et seq.) and will provide a drug-free work place by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355 (a). b. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b) to inform employees about all of the following:
i. The dangers of drug abuse in the workplace;
ii. The person’s or organization’s policy of maintaining a drug-free workplace;
iii. Any available counseling, rehabilitation and employee assistance program; and
iv. Penalties that may be imposed upon employees for drug abuse violations.
c. Provide, as required by Government Code Section 8355(c), that every employee who performs grant activities under this Agreement:
i. Will receive a copy of the Consultant’s drug-free policy statement; and
ii. Will agree to abide by the terms of the Consultant’s statement as a condition of employment on this Agreement.
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Failure to comply with these requirements may result in suspension of payments under this Agreement or termination of the Agreement, or both, and Consultant may be ineligible for award of any future City agreements if City determines that any of the following has occurred: the Consultant (1) has made false certification, or (2) violates the certification by failing to carry out the requirements as noted above.

24. Anti-Lobbying Certification. Consultant shall submit to City the Anti-Lobbying Certification contained in Exhibit C. Further, Consultant shall require that the language of the certification in Exhibit C be included in all contracts or subcontracts entered into in connection with this Agreement and that all Consultants and contractors shall certify and disclose accordingly.

25. Debarment, Suspension, Ineligibility and Voluntary Exclusion. By signing this Agreement, Consultant assures that neither it nor its principals, is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.

26. Americans with Disabilities Act. By signing this Agreement, Consultant assures the City that it complies with the American with Disabilities Act (ADA) of 1990, (42 U.S.C. 12101, et. seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to ADA.

27. Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney.

28. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

29. Entire Agreement. This Agreement constitutes the complete and exclusive statement of Agreement between City and Consultant. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement.

30. Execution. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

31. Time is of the Essence. Time is of the essence for this Agreement. 935

32. Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.

Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE: CONSULTANT:

By By
City Manager Name, Title
Date Date
APPROVED AS TO FORM:

By City Attorney
ATTEST:

By City Clerk
Attachments:

Exhibit A – Scope of Services
Business License #
Date
Date
Exhibit B – Compensation Schedule
Exhibit C - Anti-Lobbying Certification
936

EXHIBIT A

SCOPE OF SERVICES

EXHIBIT B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees (not to exceed) $ Hourly Rate: $ /hour
Travel and out-of-pocket expenses $ (travel is included in the TOTAL (not to exceed amount)
TOTAL (not to exceed) $

TIMELINE
937

EXHIBIT C

ANTI-LOBBYING CERTIFICATION
Consultant shall submit to City this certification prior to or at the time of the execution of this Agreement.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty not less than $10,000 and no more than $100,000 for such failure.

The undersigned certifies, to the best of his or her knowledge or belief, that:

1. No federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; and

2. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, cooperative agreement, it will complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instruction.

Consul
tant:

Name,
Title
By:
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Attachment 1A
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Classification and Compensation Study
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Position Department

ASSISTANT CITY ATTORNEY CITY ATTORNEY

CITY ATTORNEY CITY ATTORNEY

PARALEGAL CITY ATTORNEY

RISK MANAGER CITY ATTORNEY

ASSISTANT CITY CLERK CITY CLERK

CITY CLERK CITY CLERK

ASST TO THE CITY MANAGER I CITY MANAGER

CITY MANAGER CITY MANAGER

COMMUNICATIONS & PROJECT SPEC CITY MANAGER
ADMINISTRATIVE CLERK I Development Services
ASSISTANT PLANNER Development Services
BUILDING INSPECTOR Development Services
BUILDING OFFICIAL Development Services
DIR OF DEVELOPMENT SERVICES Development Services
HOUSING INSPECTOR Development Services
HOUSING MANAGER Development Services
PERMIT CENTER TECHNICIAN Development Services
PLANNING MANAGER Development Services
PRINCIPAL BUILDING INSPECTOR Development Services
PROGRAM COORDINATOR Development Services
ACCOUNTANT I Finance
ACCOUNTANT II Finance
ACCOUNTING TECHNICIAN I Finance
ACCOUNTING TECHNICIAN II Finance
ADMINISTRATIVE CLERK Finance
DIRECTOR OF FINANCE Finance
FINANCIAL SERVICES SUPERVISOR Finance
INFORMATION SYSTEM TECHNICIAN Finance
INFORMATION SYSTEMS SUPERVISOR Finance
NETWORK SYSTEM ADMINISTRATOR Finance
PRINCIPAL MANAGEMENT ANALYST Finance
SUPERVISING ACCOUNTING TECH Finance
CAPTAIN/PARAMEDIC Fire
EXECUTIVE ASST TO THE FIRE CHF Fire
FIRE BATTALION CHIEF Fire
FIRE CAPTAIN Fire
FIRE CHIEF Fire
FIRE ENGINEER Fire
FIRE ENGINEER/PARAMEDIC Fire
FIRE SAFTY INSPECTOR I Fire
FIREFIGHTER Fire
FIREFIGHTER/PARAMEDIC Fire

ASST TO THE CITY MANAGER II HUMAN RESOURCES
H.R.ANALYST HUMAN RESOURCES
ADMINISTRATIVE ASSISTANT I Parks & Rec
CASHIER I Parks & Rec
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Classification and Compensation Study
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Position Department
EVENTS COORDINATOR Parks & Rec
HEAD CASHIER Parks & Rec
MAINTENANCE MANAGER Parks & Rec
MAINTENANCE TECH II Parks & Rec
MAINTENANCE TECH IV Parks & Rec
MAINTENANCE TECH LEAD Parks & Rec
PARK ATTENDANT II Parks & Rec
PARKS & REC DIRECTOR Parks & Rec
POOL LIFEGUARD Parks & Rec
REC COORD TEMP Parks & Rec
RECREATION INSTRUCTOR Parks & Rec
RECREATION MANAGER Parks & Rec
ADMINISTRATIVE ASSISTANT II Police
BACKGROUND INVESTIGATOR TEM PT Police
CHIEF OF POLICE Police
CODE COMPLIANCE INVESTIGATOR Police
COMMUNITY SERVICE OFFICER Police
DISPATCHER TRAINEE Police
LEAD COMMUNITY SRVC OFFICER Police
POLICE LIEUTENANT Police
POLICE OFFICER Police
POLICE RECORDS SUPERVISOR Police
POLICE RECORDS TECHNICIAN Police
POLICE SERGEANT Police
PROPERTY/EVIDENCE TECHNICIAN Police
PUBLIC SAFETY DISPATCHER Police
PUBLIC SFTY DISPATCH SUPERVSR Police
RESERVE ANNUITANT PERSABLE Police
SENIOR PROPERTY/EVIDENCE TECH Police
AIRPORT MAINTENANCE SUPERVISOR Public Works
AIRPORT MANAGER Public Works
ASSOCIATE CIVIL ENGINEER Public Works
CAPITAL IMPROVEMENTS PROJ MGR Public Works
DIRECTOR OF PUBLIC WORKS Public Works
ENGINEERING MANAGER Public Works
ENGINEERING TECHNICIAN Public Works
EQUIPMENT MECHANIC II Public Works
EQUIPMENT MECHANIC III Public Works
FLEET CONTROL SPECIALST Public Works
GIS ANALYST Public Works
INTERN Public Works
MAINTENANCE TECH III Public Works
MAINTENANCE TECH V Public Works
OFFICE MANAGER Public Works
RESIDENT ENGINEER/RES INSPCTR Public Works
SENIOR SNOW REMOVAL EQUIP OP Public Works
STORM WATER PROGRAM COORDIN Public Works
941

CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of the Third day of May 2022 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and Ralph Andersen & Associates (“Consultant”).

RECITALS
A. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement.

B. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.

C. City desires to retain Consultant to render professional services as set forth in this Agreement.

AGREEMENT

2. Term/Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue until completion of project.
942

3. Compensation. Compensation to be paid to Consultant shall be in accordance with the Schedule set forth in Exhibit B which is attached hereto and incorporated herein by reference. In no event shall Consultant’s compensation, including travel and out-of-pocket expenses, exceed $84,500 without additional written authorization from City. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to City at the time of payment. Payment is contingent upon compliance with all terms and conditions of this Agreement, as set forth herein. Consultant shall obtain prior written authorization from the City Project Manager for any costs in excess of budgeted amounts for each line item, task, or obligation under the Scope of Services.

Termination, revocation, or expiration of this Agreement shall not release either party from liability resulting from an event which occurred prior to such termination, revocation or expiration.

7. Ownership of Documents.

All plans, studies, documents and other writings, including working notes and internal documents, prepared by and for Consultant, its officers, employees 943
and agents and subcontractors in the course of implementing this Agreement, shall become the property of City upon payment to Consultant for such work, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party.

Consultant shall, at Consultant’s expense, provide such reports, plans, studies, documents and other writings to City upon written request. All documents prepared by Consultant are confidential and shall be maintained to preserve their confidential nature. Release of any such documents to third parties shall only be made upon written consent of City.

8. Consultant’s Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant for services provided pursuant to this Agreement.
b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from records shall be available at Consultant’s address indicated for the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to City for inspection at City offices when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City may, by written request by any of the above-named officers, require that custody of the records be given to City and that the records and documents be 944
maintained at City offices. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

Consultant shall obtain no rights to retirement benefits or other benefits which accrue to City’s employees, and Consultant hereby expressly waives any claim it may have to any such rights. All employees, agents, contractors or subcontractors hired or retained by Consultant are employees, agents, contractors or subcontractors of Consultant and not of the City.

City is not required to make any deductions or withholdings from the compensation payable to Consultant under the provisions of this Contract, and is not required to issue W-2 Forms for income and employment tax purposes for any of Consultant’s assigned personnel. Any third party persons employed by Consultant shall be entirely and exclusively under the direction, supervision, and control of Consultant. Consultant hereby indemnifies and holds City harmless from any and all claims that may be made against City based upon any contention by any third party that an employer-employee relationship exists by reason of this Contract.

Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
a. Will conduct research and arrive at conclusions with respect to his/her rendition of information, advice, recommendation or counsel independent of the control and direction of City or of any City official, other than normal agreement monitoring; and,
945
b. Possesses no authority with respect to any city decision beyond rendition of information, advice, recommendation or counsel. [FPPC Reg. 18700(a)(2)].

12. Compliance with Laws. Consultant shall comply with all applicable federal, state, regional and local laws, codes, ordinances and regulations in carrying out his/her duties under this Agreement. Consultant shall observe and comply with all applicable laws, ordinances, regulations and codes of federal, state and local governments, and shall commit no trespass on any public or private property in performing any of the work authorized by this Agreement. The City, its officials, officers, elected officials, appointed officials and employees shall not be liable at law or in equity as a result of any failure of Consultant to comply with this section.

In the event it is determined that the Consultant is required to pay prevailing wages for the work performed under this Agreement, the Consultant shall pay all penalties and wages as required by law.

14. Indemnity. Consultant hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, officers, agents, employees and volunteers from and against any liability for any and all claims, demands, actions, losses, damages and injuries, direct or indirect (including any and all 946
costs and expenses in connection therein), arising out of this Agreement or caused in any way by Consultant’s negligent performance of this Agreement or its breach of its obligations contained in this Agreement, except for any such claims arising out of the negligence or willful misconduct of the City.

This hold harmless agreement by Consultant shall apply to all damages and claims for damages, or alleged to have been suffered, by reason of any of the aforesaid operation of Consultant or any subcontractor, regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

15. Insurance Requirements.
a. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies.
i. Workers’ Compensation Coverage. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers’
Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation of all Workers’ Compensation policies must be received by City 947
at least thirty (30) days prior to such change. Consultant shall provide thirty (30) days written notice of nonrenewal of any Workers’ Compensation policies. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work
performed by Consultant for City.
ii. Commercial General Liability Coverage. Consultant shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. Coverage must be made on
the standard Occurrence form. Claims-Made forms are not acceptable without prior written consent of City. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of Consultant. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general
aggregate limit shall be at least twice the required
occurrence limit.
iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and nonowned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant or by its employees, or subcontractors. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit per occurrence basis.
948
b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a AM Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
i. City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional
insured’s under Consultant’s General Liability and Automobile Liability policies with respect to liability arising out of this Agreement and/or work performed by or on behalf of the
Consultant, including materials, parts or equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by City, including any self-insured retention City may have, shall be considered excess insurance only and shall not contribute with it.
iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each,
except with respect to the limits of liability of the insuring Consultant.
iv. The insurer waives all rights of subrogation against City except for Consultant’s Professional Liability and Employers’ Liability policies, its elected or appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. No policies of insurance carried by Consultant shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail.
c. Deductibles and Self-Insured Retentions. The Consultant shall be responsible for all deductibles in all of Consultant’s insurance policies. 949
The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.
d. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Consultant shall not commence work under this contract until all insurance required under this section has been approved by City as to form, amount and carrier, nor shall Consultant allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.

Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Provide a copy to: City Attorney’s Office
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 300
South Lake Tahoe, CA 96150
If to Consultant:

Provide a copy to: Heather Renschler, President/CEO
Ralph Andersen & Associates
5800 Stanford Ranch Road, Suite 410
d Rocklin, CA 95765

17. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the 950
subcontractor. Nothing in the Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law.

18. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

21. Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any Consultant or person, other than the independent contractors hired in accordance with Consultant’s standard business practice, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any Consultant or person, other than a bona fide employee working solely for Consultant or an independent contractor hired as discussed above, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

Failure to comply with these requirements may result in suspension of payments under this Agreement or termination of the Agreement, or both, and Consultant may be ineligible for award of any future City agreements if City determines that any of the following has occurred: the Consultant (1) has made false certification, or (2) violates the certification by failing to carry out the requirements as noted above.

27. Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney.

31. Time is of the Essence. Time is of the essence for this Agreement.

32. Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.

Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE: CONSULTANT:

By___________________________ By ________________________________ Devin Middlebrook, Mayor Heather Renschler, President/CEO Date __________________________ Date _____________________________ Business License # ___________________
APPROVED AS TO FORM:

By____________________________ Date ________________________________ Heather Stroud, City Attorney
ATTEST:

By______________________________ Date ________________________________ Susan Blankenship, City Clerk
Attachments:

Exhibit A – Scope of Services
Exhibit B – Compensation Schedule
Exhibit C - Anti-Lobbying Certification
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EXHIBIT A

SCOPE OF SERVICES
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Scope of Services
Project Understanding
The City of South Lake Tahoe is interested in conducting a Classification and Compensation Study involving all City employees and job classifications.

To ensure that the City’s objectives are met, the following key study components and anticipated endproducts are included in the work plan developed by Ralph Andersen & Associates.  Conduct a meeting with City representatives at project initiation to confirm the study goals, objectives, and deliverables
 Conduct briefing sessions with employees at the beginning of the study to explain the study process and answer questions
 Conduct an extensive review of background documents
 Distribute job analysis questionnaires and conduct supplemental interviews with a sampling of employees in the study
 Develop classification recommendations, FLSA designations, and update job descriptions
 Conduct a classification review and appeal process to fully resolve all classification issues and recommendations
 Review historical practices and recommended survey agencies, survey job classifications, and identify data collection needs
 Conduct a custom salary and benefit survey and analyze the market data  Conduct internal relationship analyses, survey benchmarking, and develop salary range recommendations for all City job classifications
 Develop draft and final reports incorporating all study recommendations and supporting data including implementation plans
 Present the findings to managers, employees, labor representatives, project committees, and the City Council, as needed.

Ralph Andersen & Associates has a strong commitment to develop and implement customized and tailored classification and compensation systems. While we have broad expertise and experience from hundreds of successful consulting assignments, we are committed to a “customer service” approach to all of our client engagements. This assures the preparation of study end-products that are uniquely customized to the City of South Lake Tahoe.

Ralph Andersen & Associates will apply several technical and administrative methodologies in creating the City’s updated compensation systems. An overview of all key methodologies is described below. 956
Background Data Analysis
The consultant team will identify a wide range of background data that will be collected from the City as part of the study. The consultant team will provide the City with a complete list of background needs upon initiation of the project.

Materials collected and reviewed during this initial stage of the project will, at a minimum, include:
 Organization charts
 Planning documents
 Existing class specifications
 Budgets
 Current pay plan and related salary schedules
 Benefits summaries
 Memorandums of Understanding
 Relevant administrative rules and procedures.

These materials provide an understanding of the City’s personnel system and of current applicable policies and procedures.

Job Analysis Questionnaires
Project consultants will distribute a Job Analysis Questionnaire (JAQ) to all study employees identified for analysis in the classification phase of the study. Two versions of the questionnaire will be used with one focusing more on job description updates while the other will be used for more detailed analysis of issue areas. The questionnaire provides an opportunity for employees to fully describe the duties and responsibilities of their position and provides the information necessary to resolve classification issues including job function consolidation resulting from workforce reductions. The questionnaire is also designed to record data regarding other job-related information such as the knowledge, skills, abilities, and physical requirements necessary to perform the work, as well as supervisory and managerial responsibilities.

Each questionnaire will be reviewed by the employee’s supervisory and managerial staff to ensure completeness and accuracy. Once completed, they will be forwarded to the consultants for examination prior conducting job analysis interviews. The questionnaire will be distributed and explained in detail during an employee briefing session at the initiation of the project. All questionnaires used by Ralph Andersen & Associates can be tailored to the specific objectives of the study and the unique organizational characteristics of the City.

Job Analysis Interviews
As a supplement to the questionnaires, project consultants will conduct interviews with at least one employee in each classification, a sampling of employees in multiple position classifications, all 957
employees requesting an interview, and employees where significant classification issues are identified during project initiation tasks. This will ensure that the consultants are able to obtain information regarding any existing job classification issues as well as confirm job duties and tasks performed.

Compensation Policy Development
This methodology relates to the identification and documentation of the City’s compensation philosophies, policies, and procedures. The consulting team will confirm specific policies, both implicit and explicit, and assess their impact on the City’s overall ability to attract, recruit, employ, advance, and retain high quality personnel. These policies and practices will include the relative labor market position the City seeks to maintain in the competitive labor market, the types of employers with which the City chooses to compete, and the relative importance placed on internal equity vs. market forces in the development of the salary plan. This assessment can be conducted through meetings with managers or with broader input using a workshop session that includes project team members, managers, labor representatives, and the City Council.

Compensation Data Collection and Analysis
The methodology utilized in collecting and analyzing compensation data involves an extensive process to ensure accuracy, reliability, and completeness. Ralph Andersen & Associates does not rely on published or previously collected data; all data is collected personally by the consulting team, who have, based on the classification analysis, an in-depth knowledge and understanding of the survey classifications.

Supporting our approach to labor market surveys, this component of the study will include the development of a comprehensive survey packet, the collection of base salary, salary structure, and optional total compensation data through written and electronic materials and telephone calls, and the analysis of the data at the survey market mean, median, and requested percentiles.

Project Tasks
Task 1 – Project Kick-off Meetings
The consultants will begin all administrative and coordinative efforts in support of the project initiation meetings and briefings. Among other things, this will include:
 Preparation of a project schedule
 Identification and review of background data including existing class specifications, organization charts, budgets, employee listings, salary schedules, and related information
 Identification of scheduling parameters for meetings and interaction with various City employee groups.

This initial step in the study process will be used to identify significant classification and compensation concerns that should be addressed during the course of the study. The consultants will discuss the best 958
approach for identifying issue areas including an independent assessment of the current classification plan by the consultant, input by human resources staff, and input from managers, labor representatives, and other stakeholders.

The consultants will meet with the City’s project manager and other staff as appropriate to ensure a full understanding of project objectives and deliverables. The project work plan and schedule will be adapted to achieve the objectives.

Initial project meetings will also include employee orientation and briefing sessions in relation to the study process, timing, and objectives.

Task 2 – Employees Complete Questionnaires
The JAQ provides employees with an opportunity to describe the duties and responsibilities of their positions with an emphasis on job related information such as knowledge, skills, abilities, and physical capabilities required to perform the work assigned. Space is also provided on the questionnaire for employees to make any additional comments they wish. The completed questionnaires are reviewed by supervisory and managerial staff, with space provided for their comments. A short form questionnaire will be available to all employees to provide updated information regarding assigned duties. A more detailed questionnaire will be used for positions and classifications where specific issues or questions have been identified. A sample JAQ is provided in Appendix B.

Task 3 – Conduct Job Analysis Interviews
Prior to conducting interviews, the consultants will thoroughly review the completed questionnaires.

The consultants will evaluate position duties and responsibilities, classification series, class titles, job families, reporting relationships, and internal relationships. Based on this preliminary analysis, the project team will identify areas of concern that will be clarified or probed during the job analysis interviews.

The consultants will assume responsibility for the preparation of the employee interview schedule. The City’s Project Manager, or designee, will be responsible for scheduling interview rooms, notifying employees, and related coordinative activities. We anticipate interviewing at least one person from each job classification, all employees where significant position classification issues exist, and a sampling of employees beyond the issue areas.

Task 4 – Prepare and Review Preliminary Classification Report With the completion of the employee interviews, a preliminary classification report will be prepared.

Key components of the preliminary report will include:
 Identification of all key issues identified in the classification analysis  Recommended job titles
 Employee allocations.
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In preparing the preliminary classification report, each position is analyzed according to the criteria set forth at initial review meetings. Such criteria typically will include factors relating to job knowledge, experience, training, decision making, management control, working conditions, and outside contacts.

Like positions are grouped into tentative classes forming the basis for initial class definition.

The preliminary classification report will be reviewed with key management staff prior to preparing class specifications. Because the concepts provide the foundation for the resulting classification plan, management review of the recommendations in their respective areas of responsibility is essential.

Task 5 – Prepare Class Specifications
Once the preliminary classification recommendations have been reviewed, the project consultants will revise, update, or create new class specifications based on the issues identified in previous tasks. The City’s current job description format will be maintained as appropriate. The class specifications will be drafted and undergo a management/employee review process to ensure they accurately and adequately describe the scope of responsibilities. Once finalized, they will be provided to the City in both an electronic and hard-copy format. This process will include FLSA analysis and designation.

Task 6 – Undertake Management/Employee Review Process
As an important component of the overall classification study, the project consultant team will provide additional opportunities for employee participation and input through the conduct of an employee review process. These steps will (1) build and facilitate the City’s understanding of the newly developed classification plan, (2) enhance employee commitment and understanding of the recommended system by giving each employee the opportunity to comment on the system and (3) ensure that the consultants receive as much information as possible regarding the nature and responsibilities of the various positions in order to make appropriate and equitable final classification recommendations. The various subtasks within this portion of the project are as follows.

Task 6.1 – Distribute class specifications to all employees included within the study scope – Each employee will receive an individual copy of the specification for the class to which his/her position has been allocated along with a Position Allocation Notice and Employee Review Form. This will provide employees with an opportunity to review and comment on their proposed classification and allocation. These comments will then be forwarded to management for review and comment.

Task 6.2 – Review written comments received from employees – All written comments or suggestions from employees regarding the recommended class plan will be thoroughly reviewed and analyzed by the project consultants.

Based upon written responses received, the consultant team will incorporate appropriate suggested revisions into the final classification plan.

Task 6.3 – Conduct follow-up telephone interviews as necessary – Based upon the analysis of written comments forwarded to the project consultants and where consultant staff needs further information prior to finalizing 960
recommendations, follow-up interviews will be conducted by the project consultants with individual employees. This step will further clarify and refine any remaining problems or issues.

This task will further include any additional informal appeal processes/steps established or desired by the City.

Task 7 – Finalize the Classification Recommendations
With the completion of the employee appeal process, the consultants will finalize all classification study recommendations. Supporting the finalization of the classification plan, each employee who submitted a notice for review will receive a direct response from the project consultants. This response will specifically outline the consultant’s understanding of the employee’s concern, specify the steps taken to resolve the concern, and indicate to the employee the substance of the consultant’s final recommendation.

Task 8 – Discuss and Document Compensation Policy
The City’s compensation policy directly impacts all study end-products resulting from the compensation components of the analysis. As a starting point for this phase of the study, therefore, we propose that the consulting team meet with key management staff to clarify and confirm the City’s compensation policy. Important considerations to be discussed include historical practices, recruitment and retention issues, pros and cons of the current compensation system, and reliance on external market data versus internal equity for purposes of setting salaries. The consultants will work with appropriate City representatives to determine comparison agencies and the scope of compensation data to be collected.

Our proposal includes the tasks necessary to identify comparable employers and conduct a custom market survey.

Our analysis of the potential and recommended survey employers will be documented in a memorandum report after consultation with appropriate City representatives. If desired, the consultants can conduct a workshop session that identifies labor market selection parameters, options, and pros/cons of different market approaches. The draft labor market recommendations will be reviewed by appropriate City representatives so that all questions and issues are resolved. In that these decisions directly impact the parameters of the market survey, as well as the design and structure of the resulting compensation plan, our suggested approach recommends that these study tasks occur prior to the collection and analysis of the market data.

Task 9 – Collect Compensation Data
After the compensation policy discussion, the consultant team will collect and analyze the compensation data. Our proposed approach would include:
 An initial contact to each labor market employer included in the study to explain the purpose and scope of the survey and confirm cooperation. 961
 The collection and analysis of source documents from each survey agency including position control documents, job descriptions, salary schedules, benefit summaries, and MOUs.
 The confirmation of all compensation data through telephone calls, email, and other means. This will assure that comparability is established and that all compensation data is factual and complete.

The compensation survey elements will be discussed and confirmed with the City before the survey is initiated.

Task 10 – Compile and Format Compensation Data
The salary data, once collected and thoroughly reviewed for completeness and accuracy, will be appropriately formatted and the results tabulated in a consistent and uniform manner by the project consultants. The analysis will include pay structure trends and base salary analysis to ensure all appropriate comparison criteria is available for developing recommendations. Through the use of spreadsheet applications developed by our office, it is anticipated that standard formulas will be applied in the calculation of the survey data mean, median, and selected percentiles, with the corresponding percentage relationship to the market data also calculated. Data presentation will be customized to fit the City’s objectives.

Task 11 – Audit and Finalize Compensation Data
Prior to developing specific salary recommendations, the consultants will thoroughly review and audit the collected survey data. This will include a detailed analysis of data reliability, comparability, statistical validity, and consistency. This audit will be conducted by the Project Manager independent of the consultant who collected that data. This will ensure that the most accurate and defensible survey data is utilized in comparing the City’s compensation plan to the pay practices of the labor market. This analysis will also include the preparation of graphs and other presentation materials to aide in understanding the market relationships broken down by employee/bargaining group.

Task 12 – Conduct Internal Relationship Analysis
This task will include the development and application of an appropriate job evaluation methodology in order to meet with the City’s policy objectives and comply with local laws, rules, and regulations. The firm has a number of job evaluation systems available and will recommend and adapt the methodology that best aligns with the City’s historical practices and policy objectives.

Using the results of the job evaluation analysis, the consultants will analyze internal pay relationships.

The internal pay relationship analysis will involve a number of steps in order to arrive at sound and equitable relationships for the new compensation plan. Among others, the most important of these will include:
 Analysis of existing and historical pay relationships 962
 Development of consistent, uniform, and realistic guidelines for determining internal relationships
 Recommendation of equitable and appropriate internal relationship differentials based on the above.

In developing consistent internal relationship guidelines, the results of the job evaluation tasks will be used to determine an equitable pay structure. Since the balance of market values versus internal values can be a policy issue, options and methodologies for achieving an appropriate balance of internal and external salary equity will be reviewed with the City before developing the salary range recommendations.

Task 13 – Develop Salary Recommendations
Based upon the results of the internal relationships analysis and the labor market survey, the project consultants will develop salary recommendations for all job classes included as a part of the study process. These salary recommendations will clearly document the means of determining the appropriate pay range and the computation of the dollar and percentage difference between the current maximum salary and the recommended maximum salary.

Before finalizing the recommendations, a careful audit of the results will be undertaken to ensure that internal salary compression or compaction does not result.

Task 14 – Develop Implementation Strategy Options and Compute Implementation Costs
Recognizing that public agencies often have limited funds available for implementation, the project consultants will develop several strategies for implementing the recommended salary structure. Such strategies will address:
 The placement of individual employees into ranges and steps  Implementation phasing according to the needs and priorities of the City  Integration of the study recommendations with the balance of the City’s human resource management system including recruitment, selection, and performance appraisal.

The cost estimates will reflect City-wide impacts, as well as impacts on individual employees. The cost estimates will serve as a basis for the City to make necessary policy decisions to implement the compensation system in an orderly and effective manner.

Task 15 – Prepare and Review Preliminary Report
The Preliminary Report documents all classification and compensation study recommendations and the supporting information used for developing the recommendations. Specifically, the Preliminary Report will include the following:
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 The City’s documented compensation policy including survey agencies and survey classifications
 Results of the labor market salary survey using tables and graphs  Documentation of selected benchmark classifications and the related job families  Appendices containing detailed labor market data sheets, recommended salary schedules, and supporting documentation.

The project consultants will conduct an in-depth review of the Preliminary Compensation Report with the City. Any needed corrections, clarifications, or modifications will be discussed at this time.

Task 16 – Prepare and Submit Final Reports
The Final Reports will incorporate any appropriate revisions identified and submitted during the review of the preliminary reports and will serve as the administrative and procedural manuals for updating and maintaining the classification and compensation plans. The submittal of final reports will also include onsite presentations to managers, labor representatives, and the City Council. It is not uncommon for a series of draft reports to be prepared, each incrementally addressing feedback and policy direction by the City. Submittal of the final reports will also include training of City staff as needed.

EXHIBIT B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees (not to exceed) $84,500
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Hourly Rates:

Project Director $155/hour
Project Consultant $135/hour
Research/Support Staff $85/hour
Travel and out-of-pocket expenses included for virtual
meetings*
(travel is included in the TOTAL (not to exceed amount) TOTAL (not to exceed) $84,500
*Any on-site meetings requested by the City would be invoiced at the rate of $1,900 per meeting

TIMELINE
Projects of this nature are highly sensitive. Because of this sensitivity and the anxiety experienced by many employees when going through this type of process, it is beneficial to complete the analysis in the most expedient manner feasible. Assuming full cooperation of the City and the survey agencies, our schedule assumes that all study activities can be completed within sixteen (16) weeks. If this schedule is too aggressive, we can adjust the schedule to fit the City’s timing objectives while also allowing additional review time by the City. These studies are typically completed within six months. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Task 1-Conduct project initiation meetings *
Task 2-Employees complete questionnaires
Task 3-Conduct job analysis interviews *
Task 4-Prepare and review preliminary classification report 965
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Task 5-Prepare class specifications
Task 6-Undertake review process *
Task 7-Finalize classification plan
Task 8-Discuss and document compensation policy *
Task 9-Collect compensation data
Task 10-Compile and format data
Task 11-Audit and finalize compensation data
Task 12-Conduct internal relationship analysis
Task 13-Develop salary recommendations
Task 14-Develop implementation strategies
Task 15-Prepare/review preliminary reports *
Task 16-Prepare and present final reports *
* Anticipated on-site meetings; key milestones shown in blue 966

EXHIBIT C

ANTI-LOBBYING CERTIFICATION
Consultant shall submit to City this certification prior to or at the time of the execution of this Agreement.

The undersigned certifies, to the best of his or her knowledge or belief, that:

Consultant:

Heather Renschler, President/CEO
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By:________________________________________
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 17
Agenda Item: Lease Agreement with Bydand Unlimited Trust for the Bijou Golf Course Parking Lot Executive Summary: City Council is asked to authorize a new three year lease agreement with Bydand Unlimited Trust for the parking lot adjacent to the Bijou Golf Course. Public access to the parking lot is needed for the City can open the golf course. In 2020 and 2021 the course was closed due to unsafe working conditions and lack of infrastructure to meet public health workplace requirements during the pandemic. The City is prepared to open the golf course pending the execution of the lease for the parking lot with the property owner, Bydand Unlimited Trust. The City has leased this area since 1983 via short-term agreements between one and five years in duration.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the three-year Lease Agreement with Bydand Unlimited Trust for a parking lot for the Bijou Golf Course with rent of $19,161 for 2022 with an annual increase based on the Consumer Price Index.

Responsible Staff Member: Lauren Thomaselli, Parks and Recreation Director Responsible Staff Member: Lauren Thomaselli, Parks and Recreation Director 530-542-6197 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Lease Agreement - Bijou Golf Course Parking Lot.docx 02-Correspondence to Mary McCall.pdf
03-Proposed McCall Agreement.pdf
04-Exhibit 1 Property Map
05-Proposed City Agreement.pdf
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Council Agenda Report- May 3, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Lease Agreement with Bydand Unlimited Trust for the Bijou Golf Course Parking Lot Location: 3464 Fairway Avenue
Responsible Staff Member: Lauren Thomaselli, Director of Parks and Recreation (530) 542-6197
Background: Bijou Golf Course is located at 3464 Fairway Ave. In 1983, the Bijou meadow and golf course was purchased by the City from the Johnson Family (Marjorie, William, and Knox). The agreement provided for the preservation of the Bijou meadow and provision of recreational opportunities, at reasonable rates for residents and visitors. Since 1983, the City and the property owner have maintained a short-term renewable lease agreement for use of a portion of the adjacent land to provide for golf course parking. The location map is attached (04-Exhibit 1). The terms of the lease require the City to pay an annual base rental fee to the owner in exchange for use of the land for the parking lot. The current trustee of the Johnson Family property is Mary Anne Johnson McCall for the Bydand Unlimited Trust.

The previous one-year lease agreement expired on November 15, 2019. In 2020 and 2021, the Golf Course was closed due to the pandemic and lack of infrastructure to provide a safe working environment for staff.

During the closure the City received numerous inquiries from the public expressing a desire to re-open the course. As public health conditions improved the City began to take steps to re-open the golf course operation including executing a new lease agreement with Ms. McCall.

On February 9, 2022, staff delivered a new lease agreement (02-Proposed City Agreement) consistent with previous lease terms. The Agreement was sent via FedEX with a postage paid return envelope to Ms. McCall.

The package was confirmed delivered on February 11. Staff followed up via phone and text messages on February 18 and March 16 with no response. Staff sent another text on March 31 and received an immediate response in the City Clerk’s office from Ms. McCall with a request to meet with the City Manager to discuss the lease terms.

On April 4, 2022, City Manager, Joe Irvin, and Parks and Recreation Director, Lauren Thomaselli, met Ms.

McCall at the golf course. Ms. McCall pointed out several maintenance issues she would like to see addressed and included those items as an attachment to her version of a proposed lease agreement (03- Proposed McCall Agreement)
Issue and Discussion: The terms of the Proposed McCall Agreement provide for a twenty-year obligation by the City with no ability to terminate the lease. While the City appreciates Ms. McCall’s willingness to commit to a multi-year agreement, the long-term obligation with no “out clause” is not in the best interest of the City’s responsibility as stewards of public funds. Additionally, the City Council Strategic Plan includes action items to complete the Bijou/Al Tahoe Area Plan update and to explore alternative uses for the Bijou Golf Course to reach the highest community and environmental benefit to provide access for all. It is not advisable to commit to a 20-year lease before embarking on these efforts. 970
Council Agenda Report- May 3, 2022 Page 2 of 2
While the terms of the Proposed McCall Agreement are not advisable, the maintenance items she identifies can be addressed by the City as resources become available and as appropriate if a lease is executed.

The Proposed City Agreement outlines similar terms as previous agreements including a multi-year component with a shorter term to provide the City an opportunity to re-evaluate the Agreement and the potential for future expansion of recreation as identified in the Bijou Al Tahoe Area Plan and Bijou Master Plan Update. Staff recommends Council pass a motion to authorize execution of the Proposed City Agreement with a three-year term beginning 2022 and expiring in Fall 2025 (05-Proposed City Agreement).

The shorter term is consistent with past agreements, reduces financial risk, and reflects good stewardship of public funds.

It is important to note that if the owner does not sign a lease agreement with the City to allow use of the parking lot for the Bijou Golf Course, the City will note be able to open the golf course until alternative parking is obtained. Given the current configuration of the Golf Course, there are no suitable alterative parking areas that currently exist.

Financial Implications: A twenty-year analysis completed in 2019 and presented to City Council at the October 15, 2019 Council meeting, indicated the golf course generates approximately $126,000 - $180,000 in annual revenue in a normal season. The 2018 actual expenses totaled $121,465. The normal operating season is generally Memorial Day weekend through October, weather permitting. The fee paid in 2019 as per the Agreement was $19,161. The proposed fee for 2022 and beyond is $19,161 with an annual increase based on the Consumer Price Index. The Agreement provides for an additional fee paid to the owner based on a percentage of the gross revenue. Historically, the golf course has not exceeded the revenue limits that would trigger the additional fee (Section 2 of the Agreement).

Environmental Considerations: This lease agreement is categorically exempt from review under the California Environmental Quality Act (CEQA) because it involves no expansion of use (CEQA Guidelines section 15301 – Existing Facilities), and because the lease will allow for the normal operations of existing facilities for public gatherings for which the facilities were designed (CEQA Guidelines section 15323 – Normal Operations of Facilities for Public Gatherings).

Policy Implications: The proposed three-year agreement will coincide with City Council priorities for Recreation as described in the 2021-2026 Strategic Plan. Specifically, Priority 2 – Recreation and Equitable Access which identifies action items four and five as follows:
 Update the Master Plan for Bijou Park and evaluate the option to include the Master Plan as part of the scope of work for the Bijou/Al Tahoe Area Plan update.  Explore alternative uses for Bijou Golf Course to reach the highest community and environmental benefit to provide access for all.
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1 LEASE AGREEMENT

BIJOU GOLF COURSE PARKING LOT
This Lease Agreement for the Bijou Golf Course Parking Lot (“Agreement”), entered into on this _____day of _____, 2022 (“Effective Date”) by and between the City of South Lake Tahoe, hereinafter referred to as "CITY" and the Bydand Unlimited Trust, by Mary Anne Johnson McCall, Trustee, hereinafter referred to as "McCALL".

RECITALS
WHEREAS, CITY is the owner of the property in South Lake Tahoe, California, containing the nine (9) hole Bijou Golf Course, and
WHEREAS, McCALL is the owner of the adjacent property thereto which contains an area developed and used for vehicle parking in conjunction with said golf course (“Property”), all as generally depicted on Exhibit "1A" attached hereto, and WHEREAS, CITY has leased the Property, through various short term lease agreements starting on May 3, 2010 between Knox Johnson Revocable Trust and the City; and WHEREAS, the aforementioned short term lease agreement was renewed for further "lease" for the Year 2019 by and between the CITY and Mary Anne Johnson McCall, the Giftee, ie., the new legal owner of said Bijou Golf Course Parking Lot from the Giftor, the Knox Johnson Revocable Trust, by Knox Johnson, Trustee; and
WHEREAS, CITY and McCALL desire to continue the lease arrangement whereby the CITY leases said parking lot in connection with its operation of the Bijou Golf Course.

NOW, THEREFORE, for valuable consideration including the promises and covenants contained herein, the parties agree as follows:

AGREEMENT

1. Term.

McCALL leases the Property to the CITY for a term commencing on April 1, 2022 and ending on November 30, 2025, for the CITY's use in connection with its operation of the Bijou Golf Course, and public parking for customers during the seasonal eight (8) month period (commencing on April 1 and ending on November 30 of each year) (“Term”).

2. Rental Fee.

CITY shall pay McCALL a minimum total annual rental fee of Nineteen Thousand One Hundred Sixty One Dollars ($19,161.00). One (1) annual payment shall be made at the rate of $19,161.00 each year commencing on or about April 1, 2022. Payment shall be made no later than the tenth (10th) day of April of each year of this Agreement. A full accounting shall be made of all gross revenues, including all golf-related merchandise sales, pro fees, green fees, golf cart and golf club rentals, any other concessions, excluding food and beverage, without offset. If four percent (4%) of the total amount of said accounting exceeds the minimum total annual rental fee paid, the difference between those amounts shall be paid to McCALL no later than November 30th of each 993
2 year during the Term of this Agreement, accompanied by a full report of the golf-related merchandise sales, pro fees, green fees, golf cart and golf club rentals, any other concessions, excluding food and beverage.

The annual rental fee shall be adjusted beginning April 1, 2023, based upon the U.S.

Department of Labor, Bureau of Labor Statistics, Consumer Price Index for Urban Wage Earners and Clerical Workers (San Francisco Index).

The index in publication three (3) months prior to the Effective Date of this Agreement shall be the "base" index. The annual rental fee may be increased by a percentage equal to the percentage increase, if any, to the Index in publication three (3) months prior to the preceding adjustment date.

In the event the comparison Index indicates a decrease, the annual rental payment shall remain the same. In no event shall the annual rental payment be reduced, unless mutually agreed to in writing by the parties hereto.

3. Leased Premises.

The Property includes the developed parking area and access from Fairway Drive as more particularly shown on Exhibit ("1A").

4. Use.

This lease is limited to CITY's use for parking of motor vehicles of users of the golf course and for CITY motor vehicles. The Property shall not be used for parking of CITY trucks, tractors or heavy equipment or for CITY storage uses. No temporary or permanent improvements shall be allowed without the prior written consent of McCALL. CITY will repair, keep clean and maintain the Property in good and serviceable condition and provide trash receptacles and service to the Property. In addition, CITY will provide two (2) trash receptacles on the Bijou Golf Course property (outside of the Property) and two (2) portable toilets, both suitable for the use by men and women; allowing that one (1) portable toilet can be placed at the clubhouse and one (1) portable toilet can be placed at another convenient, feasible location at the for use by patrons of the Bijou Golf Course, only. Said portable toilets shall be appropriately screened.

5. Insurance and Indemnity.

CITY shall have full responsibility and liability as to any use of the Property during the portion of the Term between May 15 and November 30 of each year, and shall hold harmless and indemnify and defend McCALL against any claimed responsibility or liability of any sort arising in connection with use of the Property during that time to the maximum extent allowed by law.

McCALL shall be covered by or obtain the benefit of the CITY's insurance pool to the extent the CITY is legally and contractually allowed to provide such coverage to McCALL, including the issuance of a certificate of insurance by the CITY.

6. Notices.

Notices under this lease shall be deemed given and received when deposited in the first-class mail, postage prepaid, addressed as follows:

City Manager
City of South Lake Tahoe
Mary McCall
5608 Memory Way
994
3 1901 Lisa Maloff Way, Suite 203
South Lake Tahoe, CA 96150
Fair Oaks, CA 95628

7. Entire Agreement.

This Lease Agreement and attached exhibits contain the entire understanding between the CITY and McCALL. All previous proposals, offers and communications relative to this Agreement, whether oral or written are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver, amendment or exception to any of the terms, condition, and provisions of this Agreement shall be considered valid unless specifically agreed to in writing by the CITY and McCALL.

8. Venue.

This Lease Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this lease agreement shall be held exclusively in the Unified Courts in the County of El Dorado, South Lake Tahoe Division.

In witness whereof, the parties have caused this agreement to be executed on the date first written above.
_______________________________
Mary Anne Johnson McCall, Trustee
Bydand Unlimited Trust
Approved as to form:
_________________________________
Attorney for Mary Anne Johnson McCall
City of South Lake Tahoe
By: ___________________________
Mayor
Approved as to form:
___________________________
Heather L. Stroud
City Attorney
Attest:
_______________________________
Sue Blankenship
City Clerk
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: ~
Agenda Item: Appropriation of $35,000 from General Fund Undesignated Excess Reserves for Settlement of Deborah Perez v. City of South Lake Tahoe, et al.

Executive Summary: On December 8, 2021 , plaintiff Deborah Perez filed a lawsuit against City of South Lake Tahoe and County of El Dorado alleging Americans with Disabilities Act and related state law violations arising from her stay at the Campground by the Lake in 2021. The parties have now settled this lawsuit. This item reports the fact of the settlement approved in a prior closed session, and makes the terms and conditions of the settlement available to the public. Staff recommends that Council adopt a resolution appropriating funds in the amount of $35,000 for payment to Ms. Perez pursuant to the Settlement Agreement and Release.

Requested Action / Suggested Motions: Pass a Resolution appropriating $35,000 from General Fund Undesignated Excess Reserves for payment under the Settlement Agreement and Release with Deborah Perez regarding alleged violations of the Americans with Disabilities Act at the Campground by the Lake.

Responsible Staff Members: Dan Bardzell, Assistant City Attorney and Heather Stroud, City Attorney Responsible Staff Member: Dan Bardzell, Assistant City Attorney (530) 542-7477 Heather Stroud, City Attorney (530) 542-6046
Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Finance Director
Attachments:
01-Staff_Report_-_Deborah_Perez_Settlement.docx
02-City_Council_Resolution_-_Deborah_Perez_Settlement.docx 03-Settlement Agreement
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Council Agenda Report May 3, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Appropriation of $35,000 from General Fund Undesignated Excess Reserves for Settlement of Deborah Perez v. City of South Lake Tahoe, et al.

Location: Campground by the Lake
Responsible Staff Members: Dan Bardzell, Assistant City Attorney (530) 542-7477 Heather Stroud, City Attorney (530) 542-6046
Background: On December 8, 2021, plaintiff Deborah Perez filed litigation against City of South Lake Tahoe and County of El Dorado alleging Americans with Disabilities Act (“ADA”) and related state law violations arising from her stay at the Campground by the Lake in 2021.

Issue and Discussion: The parties have now settled this lawsuit under the authority given to the City Attorney by the City Council at its closed session meeting of April 5, 2022. This item reports the fact of the settlement approved in a prior closed session, and makes the terms and conditions of the settlement available to the public. The Settlement Agreement and Release between the City, County of El Dorado, and Ms. Perez is attached.

Pursuant to the Settlement Agreement and Release, the City agreed to pay plaintiff $35,000. Additionally, the City agreed to make changes to Campground by the Lake including: (1) create a decompressed granite pathway from one campsite to the nearest restroom; and (2) create five ADA-compliant paved campsites as part of the campground renovation that is included in the 56 Acres Master Plan. In return, Ms. Perez agreed to dismiss her lawsuit with prejudice and release all claims against all defendants in this matter.

Based on the above, staff recommends that Council adopt a resolution appropriating funds in the amount of $35,000 for payment to Ms. Perez pursuant to the Settlement Agreement and Release.

Financial Implications: Staff is requesting an appropriation of $35,000 for payment of a settlement in the matter of Perez v. City of South Lake Tahoe, et al. from the General Fund Undesignated Excess Reserves into account number 100-01210-44013.

Environmental Considerations: Appropriating funds for the settlement is not a “project” within the meaning of the California Environmental Quality Act (CEQA) because it is a 998
Council Agenda Report May 3, 2022 Page 2 of 2
fiscal activity and therefore environmental review is not required pursuant to CEQA Guidelines section 15378.

Policy Implications: Appropriating funds for the settlement will resolve potential liability against the City and the changes to the Campground by the Lake will increase access to disabled visitors.
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Resolution 2022-XX May 3, 2022 Page 1 of 3
Resolution 2022-XX
Adopted by the
South Lake Tahoe City Council
May 3, 2022
Appropriating $35,000 from General Fund Undesignated Excess Reserves for Settlement of Perez v. City of South Lake Tahoe, et al.

BACKGROUND
A. On December 8, 2021, plaintiff Deborah Perez filed a lawsuit against City of South Lake Tahoe and County of El Dorado alleging Americans with Disabilities Act (“ADA”) and related state law violations arising from her stay at the Campground by the Lake in 2021, entitled Perez v. City of South Lake Tahoe et al., Eastern District of California Case No. 2:21-CV-02234-JAM-KJN.

B. On March 14, 2022, the parties reached a tentative settlement in mediation.

Pursuant to the settlement, the City agreed to pay plaintiff $35,000, as well as make certain changes to the Campground by the Lake to increase its accessibility to disabled visitors.

C. At its special closed session meeting on April 5, 2022, City Council authorized execution of the Settlement Agreement and Release, with a vote of 3-0-2 (Councilmembers Friedrich and Creegan absent).

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the South Lake Tahoe City Council:

1. Appropriates funds in the amount of $35,000 from General Fund Undesignated Excess Reserves into account number 100-01210-44013 for payment to plaintiff Deborah Perez.

Adopted by the South Lake Tahoe City Council on May 3, 2022 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Devin Middlebrook, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
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Resolution 2022-XX May 3, 2022 Page 2 of 3
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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EXHIBIT A
Settlement Agreement
(see attached)
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SETTLEMENT AGREEMENT AND RELEASE
This Settlement Agreement and General Release ("Agreement”) is made and entered into by and between Deborah Perez (hereinafter “Plaintiff”), and Defendants the City of South Lake Tahoe (hereinafter “City”) and County of El Dorado (“County”), collectively (“Defendants”).

On December 8, 2021, Plaintiff filed litigation against Defendants alleging ADA and Unruh Act violations arising from the campground site at 1150 Rufus Allen Blvd., South Lake Tahoe, CA. On January 13, 2022 Defendants Answered the Complaint and denied the claims alleged in the Complaint.

On March 14, 2022, Plaintiff and the City attended JAMS mediation with Mediator Howard Herman. Plaintiff and the City reached a resolution during the mediation which is documented within Exhibit A – Consent Decree Section 5(a)(i) – (ii). Plaintiff and the City also agreed on a monetary settlement of $35,000 to be paid by City of South Lake Tahoe to Plaintiff for the release of all claims against all Defendants in this matter.

All parties desire to settle all claims which Plaintiff has or may ever have arising out of that incident, and to dismiss Defendants City of South Lake Tahoe and County of El Dorado, with prejudice, in the matter of Perez v. City of South Lake Tahoe et. al., Eastern District of California Case No. 2:21-CV-02234-JAM-KJN, it being understood that all parties therein are to bear their own attorney’s fees and costs incurred.

NOW, THEREFORE, Plaintiff agrees as follows:

1. Plaintiff agrees to dismiss with prejudice her Complaint against Defendants in the abovecaptioned matter in exchange for a total payment to be made by City of South Lake Tahoe in the total amount of Thirty-Five Thousand Dollars ($35,000). It is specifically 1003
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understood that in dismissing the Complaint, all parties agree to bear their own costs of litigation.

2. Plaintiff and Defendants agree that the settlement check will be made payable to the “Rein & Clefton in trust for Deborah Perez” to be disbursed between Plaintiff and her attorney as agreed upon between them. Defendants agrees agree that the Settlement Check will be processed and mailed to Plaintiff’s counsel after (1) Plaintiff’s counsel provides the fully executed version of this agreement along with Plaintiff’s counsel’s W-9 form to counsel for Defendants; and (2) the Court enters the Consent Decree and Order regarding the injunctive relief attached hereto as Exhibit A.

3. Plaintiff hereby releases, remises, and forever discharges Defendants City of South Lake Tahoe and County of El Dorado and their respective successors, assigns, officers, agents, employees and persons, firms and incorporations having any interest in them, of and from any and all claims and demands of any kind including but not limited to California Civil Code Sections 51f, 54, 54.1, and 54.3, California Government Code Sections 4450 and 11135, and the Americans with Disabilities Act 42 USC Section 12181 et seq., nature, description whatsoever and from any and all liabilities, damages, injuries, actions or cause of action, either at law or in equity, which Plaintiff now has or in the future may have against such entities, or any one or more of them, arising out of or in any way related to or connected with the incident described in Plaintiff’s Complaint on file herein, as well as any other claim, action or cause of action which Plaintiff may have presently or may have in the future by reason of those allegations contained in her Complaint.

4. It is specifically understood and agreed that this is a full and final release applying to all unknown or unanticipated claims arising out of or in any way relating to or connected with 1004
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the incident described in Plaintiff’s Complaint, as well as those known or disclosed, whether included or not in the prayers of said pleading, and as a further consideration and inducement for this settlement, Plaintiff hereby expressly waives all rights or benefits which she may have or may in the future have under the provisions of Section 1542 of the Civil Code of the State of California, which Section provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR

DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF

EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

5. This Release is intended to, and the undersigned warrants, that it will dispose of all claimed liability of the parties released to the undersigned and to all and each of the heirs, executors, administrators, and assigns of the undersigned and to any other person or entity that might now or in the future have a claim against the parties released as a result of the injuries claimed by the undersigned involving the Action.

6. The undersigned agrees to immediately file a Stipulation of Voluntary Dismissal and Proposed Order Granting Dismissal of the entire Action against all Defendants including the City of South Lake Tahoe and County of El Dorado with prejudice upon (1) receipt of the monetary consideration identified in this Release; and (2) the Court entering the consent decree and order regarding the injunctive relief specified in this Release. The parties understand that the requested injunctive relief within Exhibit A will not be completed for a period of years. All parties shall bear their own costs and attorney fees.

7. Plaintiff accepts full and complete responsibility for any taxes, liens, or assessments of any nature, including but not limited to, any bankruptcy, debtor, medical liens, government liens, attorney fees or costs, administrative fees, or restitution fees. This includes but is not limited to any liens asserted by or on behalf of Medical or Medicare, if any, for any services 1005
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rendered to Plaintiff to treat any injuries she alleges she suffered during the subject incident giving rise to the Action. The undersigned will indemnify and save harmless the parties herein released from any loss, claim, expense, demand or cause of action of any kind including any claims or actions arising out of any lien incurred by Plaintiff as referenced above.

8. This Release and the attached Consent Decree attached as Exhibit A constitutes the entire agreement among the parties, and constitutes the complete, final, and exclusive embodiment of their agreement with respect to the subject matter hereof. The terms of this Release are contractual and not a mere recital. This Release is executed without reliance upon any promise, warranty, or representation by any party or any of its representatives other than those expressly contained herein, and each party has carefully read this Release, and signs the same of their own free will.

9. This Release shall be deemed to have been entered into and should be construed and enforced in accordance with the laws of the State of California as applied to contracts made and to be performed entirely within California. The parties agree that any dispute within the Agreement shall be venued in El Dorado County Superior Court.

10. It is agreed that all parties to this Release shared equally in drafting the same and that none of the parties shall be considered the sole drafting party. It is further agreed that the rule of interpreting ambiguities against the drafting party shall not apply to the interpretation of this Release.

11. It is hereby agreed that if, after the date of execution hereof, any provision of this Release is held to be illegal, or unenforceable under present or future laws effective during the term of this Release, such provision shall be fully severable. In lieu thereof, there shall be added 1006
a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, or enforceable.

12. The undersigned negotiated and agreed to the terms of this Release in good faith, have carefully reviewed this Release, and understand the terms and conditions it contains, have been advised of the right to consult any attorney or representative of their choosing to review this Release.

13. This document may be executed in counterparts which, when so executed, shall be deemed an original, and this document and all signed counterparts shall constitute one and the same instrument.

We, the undersigned, have read the foregoing Release and acknowledge our understanding and agreement ofthe contents.

IN WITNESS WHEREOF, the Parties execute this Agreement on the date and at the place indicated below.

Dated: ,2022 DEFENDANT CITY OF SOUTH LAKE TAHOE
5 { 02648816.DOCX}
By:

Print name:

Title:

PLAINTIFF DEBORAH PEREZ

DEBORAH PEREZ
Dated: 2022
1007
1008
M
4/11
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CONSENT DECREE AND ORDER
Case No. 2:21-cv-02234-JAM-KJN
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PAUL L. REIN, Esq. (SBN 43053)
AARON M. CLEFTON, Esq. (SBN 318680)
REIN & CLEFTON, Attorneys at Law
200 Lakeside Drive, Suite A
Oakland, CA 94612
Telephone: 510/832-5001
Facsimile: 510/832-4787
[email protected]
Attorneys for Plaintiff

DEBORAH PEREZ

A PROFESSIONAL CORPORATION
Carl L. Fessenden, SBN 161494
Matthew W. Gross, SBN 324007
350 University Avenue, Suite 200
Sacramento, California 95825
TEL: 906.929.1481
FAX: 916.927.3706
Attorneys for Defendants
CITY OF SOUTH LAKE TAHOE and COUNTY OF EL DORADO

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

DEBORAH PEREZ,
Plaintiff,
v.

CITY OF SOUTH LAKE TAHOE;

COUNTY OF EL DORADO,

Defendants.

Case No. 2:21-cv-02234-JAM-KJN
Civil Rights

CONSENT DECREE AND

ORDER FOR INJUNCTIVE ONLY
Action Filed: December 3, 2021

1. Plaintiff DEBORAH PEREZ filed a Complaint in this action on December 3, 2021, to enforce provisions of the Americans with Disabilities Act of 1990 ("ADA"), 42 U.S.C. §§ 12101 et seq., and California civil rights laws and to obtain recovery of damages for discriminatory experiences, denial of access, and denial of civil rights against Defendants CITY OF SOUTH LAKE TAHOE and COUNTY OF EL DORADO, collectively Case 2:21-cv-02234-JAM-KJN Document 8 Filed 04/12/22 Page 1 of 10 1010
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CONSENT DECREE AND ORDER
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(“Defendants”). Plaintiff has alleged that Defendants violated Titles II of the ADA, sections 51, 54, 54.1 and 54.3, of the California Civil Code, and California Government Code sections 4450 et seq. by failing to provide full and equal access to users of Campground by the Lake located at 1150 Rufus Allen Blvd., South Lake Tahoe, California. Defendants deny liability for Plaintiff’s claims.

2. In order to avoid the costs, expense, and uncertainty of protracted litigation, Plaintiff and Defendants (together sometimes the “Parties”) agree to entry of this Consent Decree and Order to resolve all claims regarding injunctive relief raised in the Complaint without the need for protracted litigation. The Parties have resolved the monetary issues in this case with a separate settlement agreement. Accordingly, the Parties agree to the entry of this Order without trial or further adjudication of any issues of fact or law concerning Plaintiff’s claims for relief.

JURISDICTION:

3. The Parties to this Consent Decree and Order agree that the Court has jurisdiction of this matter pursuant to 28 U.S.C. section 1331 for alleged violations of the Americans with Disabilities Act of 1990, 42 U.S.C. sections 12101 et seq. and pursuant to supplemental jurisdiction for alleged violations of California Civil Code sections 51, 54, and

54.1. WHEREFORE, the Parties to this Consent Decree hereby agree and stipulate to the Court's entry of this Consent Decree and Order, which provide as follows:

SETTLEMENT OF INJUNCTIVE RELIEF:

4. This Order shall be a full, complete, and final disposition and settlement of Plaintiff’s claims against Defendants for injunctive relief that have arisen out of the subject Complaint.

5. The Parties agree and stipulate that the corrective work will be performed in compliance with the standards and specifications for disabled access as set forth in the Case 2:21-cv-02234-JAM-KJN Document 8 Filed 04/12/22 Page 2 of 10 1011
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CONSENT DECREE AND ORDER
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California Code of Regulations, Title 24-2, and Americans with Disabilities Act Standards for Accessible Design, unless other standards are specifically agreed to in this Consent Decree and Order.
a. Physical Remedial Measures and Administrative Procedures:
i. Defendant City of South Lake Tahoe agrees to create a decompressed granite pathway from one campsite to the nearest restroom by June 30, 2022, subject to any severe weather conditions which might cause a temporary delay in the project. ii. Defendant City of South Lake Tahoe will create five ADA compliant paved campsites as part of the campground renovation that is included in the “56 Acres Master Plan” which will be completed at a time currently unknown. The City is in the planning process for Phase 1 of the 56 Acres Master Plan which will require closure of a large portion of the campground. Phase 2 of the 56 Acres Master Plan, which includes the campground renovation, will begin in approximately 2024 and will include the compliant campsites. The campground renovation is anticipated to conclude in approximately 2030 but no firm date has been set.
b. Timing: Defendant City of South Lake Tahoe will complete each item on the schedule as stated in this Consent Decree. In the event that unforeseen difficulties or good faith, reasonable construction or administrative related delays prevent Defendant from completing any of the agreed-upon injunctive relief, Defendant or their counsel will notify Plaintiff’s counsel in writing within seven (7) days of discovering the delay. Plaintiff will have thirty (30) days to investigate and meet and confer with Defendant, and to approve the delay by stipulation or otherwise respond to Defendant’s notice. If the Parties cannot reach agreement regarding the delay within that time Case 2:21-cv-02234-JAM-KJN Document 8 Filed 04/12/22 Page 3 of 10 1012
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CONSENT DECREE AND ORDER
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period, Plaintiff may seek enforcement by the Court
c. Defendant City of South Lake Tahoe or defense counsel will notify Plaintiff’s counsel when the corrective work is completed, and, whether completed or not, upon request by Plaintiff’s counsel, will provide a status report to Plaintiff’s counsel within 30 days of such request.
d. If Defendants City of South Lake Tahoe fails to provide injunctive relief on the agreed upon timetable and/or fail to provide timely written status notification, and Plaintiff file a motion with the Court to obtain compliance with these terms, Plaintiff reserves the right to seek additional attorney’s fees for any compliance work necessitated by Defendant’s failure to keep this agreement. If the Parties disagree, the parties agree to participate in a Magistrate Judge-conducted Settlement Conference for the purposes of resolving the disputed fees. If the Settlement Conference fails to resolve the fee dispute, Plaintiff may seek relief via motion for an order directing the Defendant City of South Lake Tahoe to pay Plaintiff’s counsel reasonably incurred fees.

DAMAGES, ATTORNEYS’ FEES, LITIGATION EXPENSES, AND COSTS:

6. The Parties have reached a separate settlement agreement regarding Plaintiff’s claims for damages, attorneys’ fees, and litigation expenses, which agreement fully and finally resolves Plaintiff’s claims for damages, including attorneys’ fees and litigation costs and expenses against Defendant.

ENTIRE CONSENT DECREE AND ORDER:

7. This Consent Decree and Order constitute the entire agreement between the signing Parties on the matters of injunctive relief, damages, attorneys’ fees, litigation expenses, and costs, and no other statement, promise, or agreement, either written or oral, Case 2:21-cv-02234-JAM-KJN Document 8 Filed 04/12/22 Page 4 of 10 1013
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CONSENT DECREE AND ORDER
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made by any of the Parties or agents of any of the Parties that is not contained in this written Consent Decree and Order, shall be enforceable regarding the matters of injunctive relief described herein.

CONSENT DECREE AND ORDER BINDING ON PARTIES AND SUCCESSORS IN INTEREST:

8. This Consent Decree and Order shall be binding on Plaintiff, Defendants, and any successors-in-interest. Defendants have a duty to so notify all such successors-in-interest of the existence and terms of this Consent Decree and Order during the period of the Court's jurisdiction of this Consent Decree and Order.

9. Except for all obligations required in this Consent Decree and Order each of the Parties to this Consent Decree and Order, on behalf of each of their respective agents, representatives, predecessors, successors, heirs, partners, and assigns, releases and forever discharges each other Party and all officers, directors, shareholders, subsidiaries, joint venturers, stockholders, partners, parent companies, employees, agents, attorneys, insurance carriers, heirs, predecessors, and representatives of each other Party, from all claims, demands, actions, and causes of action of whatever kind or nature, presently known or unknown, arising out of or in any way connected with the lawsuit.

MUTUAL RELEASE AND WAIVER OF CIVIL CODE SECTION 1542:

10. Each of the Parties to this Consent Decree and Order understands and agrees that there is a risk and possibility that, subsequent to the execution of this Consent Decree and Order, any or all of them will incur, suffer, or experience some further loss or damage with respect to the lawsuit that is unknown or unanticipated at the time this Consent Decree and Order is signed. Except for all obligations required in this Consent Decree and Order, the Parties intend that this Consent Decree and Order apply to all such further loss with respect to the lawsuit, except those caused by the Parties subsequent to the execution of this Consent Decree and Order. Therefore, except for all obligations required in this Consent Case 2:21-cv-02234-JAM-KJN Document 8 Filed 04/12/22 Page 5 of 10 1014
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CONSENT DECREE AND ORDER
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Decree and Order, this Consent Decree and Order shall apply to and cover any and all claims, demands, actions, and causes of action by the Parties to this Consent Decree with respect to the lawsuit, whether the same are known, unknown, or hereafter discovered or ascertained, and the provisions of Section 1542 of the California Civil Code are hereby expressly waived.

Section 1542 provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS

THAT THE CREDITOR OR RELEASING PARTY DOES NOT

KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT

THE TIME OF EXECUTING THE RELEASE AND THAT, IF

KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY

AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASED PARTY.

11. Except for all obligations required in this Consent Decree and Order each of the Parties to this Consent Decree and Order, on behalf of each, their respective agents, representatives, predecessors, successors, heirs, partners, and assigns, releases and forever discharges each other Party and all officers, directors, shareholders, subsidiaries, joint venturers, stockholders, partners, parent companies, employees, agents, attorneys, insurance carriers, heirs, predecessors, and representatives of each other Party, from all claims, demands, actions, and causes of action of whatever kind or nature, presently known or unknown, arising out of or in any way connected with the lawsuit.

TERM OF THE CONSENT DECREE AND ORDER:

12. This Consent Decree and Order shall be in full force and effect for a period of thirty-six (36) months after the date of entry of this Consent Decree and Order by the Court.

The Consent Decree and Order shall automatically terminate thirty-six (36) months after the date of entry of this Consent Decree and Order by the Court or on an earlier date if a motion to terminate the Consent Decree is filed and granted by the Court.

SEVERABILITY:

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CONSENT DECREE AND ORDER
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13. If any term of this Consent Decree and Order is determined by any court to be unenforceable, the other terms of this Consent Decree and Order shall nonetheless remain in full force and effect.

SIGNATORIES BIND PARTIES:

14. Signatories on the behalf of the Parties represent that they are authorized to bind the Parties to this Consent Decree and Order. This Consent Decree and Order may be signed in counterparts and a facsimile signature shall have the same force and effect as an original signature.

END OF PAGE.

SIGNATURES CONTINUE ON THE NEXT PAGE AND ORDER IS AT THE END OF THE DOCUMENT.

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CONSENT DECREE AND ORDER
Case No. 2:21-cv-02234-JAM-KJM
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ORDER
Pursuant to stipulation, and for good cause shown, IT IS SO ORDERED.

Dated: April 11, 2022 /s/ John A. Mendez
THE HONORABLE JOHN A. MENDEZ

UNITED STATES DISTRICT COURT JUDGE
Case 2:21-cv-02234-JAM-KJN Document 8 Filed 04/12/22 Page 10 of 10 1019
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 19
Agenda Item: Policies Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Residential Allocations and Development Commodities and Land Coverage Owned by the City of South Lake Tahoe Executive Summary: The City Council maintains policies for the distribution of Tahoe Regional Planning Agency (TRPA) residential allocations and city owned development commodities and land coverage. Amendments to these policies are recommended in order to better align them with economic development and housing goals of the City Council. Recommended amendments would prohibit the use of City distributed development rights for vacation rentals, prevent the use of commercial floor area (CFA) for conversion to other development rights in order to reserve CFA for commercial economic development incentives, allow up to 20 TAUs to be converted to RUUs to be used for accessory dwelling units, and allow an additional 20 TAUs to be converted to multi-family RUUs that are used for workforce housing.

Requested Action / Suggested Motions: 1) Pass a Resolution approving revised Residential Allocation Procedures; and, 2) Pass a Resolution approving revised Policy Regarding TRPA Commodities.

Responsible Staff Member: Hilary Roverud, Director of Development Services Responsible Staff Member: Hilary Roverud, Director of Development Services Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Commodity Distribution.docx
02-Res 2021-036 Residential Allocation Procedures.pdf
03-Res 2019-067 Policy Regarding TRPA Commodities.pdf
02-Resolution Revised Residential Allocation Proceedures.pdf 05-Resolution Revised Policy Regarding TRPA Comodities.pdf 1020
City Council Agenda Report May 3, 2022 Page 1 of 5
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Policies Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Residential Allocations and Development Commodities Owned by the City of South Lake Tahoe Location: Citywide
Responsible Staff Member: Hilary Roverud, Director of Development Services Background: The Tahoe Regional Planning Agency (TRPA) is the land use authority and has established a development rights system to manage future development in the Tahoe basin.

Through the TRPA Bi-State Compact, Regional Plan and Code of Ordinances, TRPA regulates the rate and timing of growth within the Tahoe Basin to achieve established environmental thresholds. These measures were put in place to stop rapid development that was occurring in the 1960s and 1970s and are based on an established a “carrying capacity” for development in the Region. TRPA growth management regulations establish a variety of development rights which are land use units someone must acquire before development occurs. The following development rights apply to each type of land use:

Commercial Floor Area (CFA): The gross square footage of floor area within the outer wall of a commercial building, not including stairwells and airshafts. It may also include the square footage of other facilities relating to such building, including but not limited to decks that are designated for commercial use under a permit.

Tourist Accommodation Unit (TAU): A unit, with one or more bedrooms and with or without cooking facilities, primarily designed to be rented by the day or week and occupied on a temporary basis.

Residential Unit of Use (RUU): Existing residential unit constructed prior to TRPA or thereafter with a TRPA permit. Must contain cooking facilities, bathing and toilet facilities, and living and sleeping areas. May be associated with a single-family house containing one residential unit or a multi-residential development containing more than one unit per parcel. RUUs are formed by combining a potential residential unit of use (PRU) and a residential allocation.

Potential Residential Units of Use (PRU): Attached to certain parcels in the basin, it’s the ability to develop a vacant lot for a new residential dwelling. A potential residential unit of use together with a residential allocation becomes an existing residential unit of use upon construction. (Previously known as Residential Development Rights) 1021
City Council Agenda Report May 3, 2022 Page 2 of 5
Residential Allocation: An apportionment of additional residential development opportunity used for regulating the rate and timing of growth within the region. Residential allocations are distributed by TRPA to local jurisdictions every two years based on three criteria: 1) residential permit review and code compliance; 2) Total Maximum Daily Load (TMDL) implementation; and 3) short-term rental neighborhood compatibility. An allocation must be paired with a PRU in order to create a new residential unit.

TRPA also allocates Bonus Units for transferring existing development from sensitive areas or development of affordable and achievable income housing units. Residential Bonus Units are equivalent to an RUU.

CFA, TAUs, and RUUs have the potential for conversion to other types of development rights.

The conversion rates are shown in the table below.

TRPA regulations also create limitations on the amount of land disturbance that can be established based on land capability classifications. Limiting coverage and maintaining open space in a watershed improves water quality since it maximizes the amount of land that can receive and infiltrate water and allows plants to filter nutrients and minimize water runoff.

Permanent land disturbance is measured in terms of square feet of land coverage (impervious surface) and includes all man-made structures such as homes, driveways, and parking lots. The amount of land coverage that can be created on a parcel or transferred to it depends on the established land capability of the underlying soils. Higher capability lands have the potential for more land coverage than sensitive lands. Types of land coverage include the following:

Hard Coverage: Human-made structures that prevent water infiltration from directly reaching the land surface underlying the structure. Examples: roofs, decks, concrete, roads, driveways, parking lots, tennis courts, patios.
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City Council Agenda Report May 3, 2022 Page 3 of 5
Soft coverage: Compacted soil areas without structures where substantial infiltration is prevented (at least 75%). Examples: dirt road, dirt parking area.

Potential Coverage: Allowable coverage that does not physically exist. Example: An undeveloped parcel within the non-sensitive land capability class 5 (allowed 25% of base coverage).

The City of South Lake Tahoe has TRPA development rights and land coverage which have accumulated from various sources (e.g., Environmental Improvement Projects, implementation of Community Plans and Area Plans, City purchase of land with attached development rights, the retirement of rights, and TRPA allocation of development) over many years. Specifically, the development rights (commodities) such as potential residential units of use (PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), commercial floor area (CFA) and land coverage are available for distribution and sale.

Issue and Discussion: On September 17, 2019, the City Council adopted a comprehensive policy for the distribution of City owned development rights and land coverage (Attachment 02).

The policy addresses the following directives from Council:
 The established development right cost, per category, should be based upon 1/3 of the recommended appraisal rate for the purpose of providing monies for affordable housing initiatives.
 For the provision of development rights at no cost, prevent conversion of housing units to condominiums unless the developer reimburses City for value of development rights.  Allow City to sell development rights and land coverage outside the City limits at fair market value, with approval by the City Council.
 Inclusion of the “moderate income” to broaden eligibility criterion.  Provide development rights and land coverage to multi-family residential projects and mixed-use projects for lease/tenant who is employed a minimum of 30 hours per week, at a place of business located in the Tahoe Basin.

In addition, the City Council has maintained policies for the distribution of residential allocations (Attachment 03). Resolution 2021-036 established the current policy that ensures that allocations are distributed fairly and are utilized effectively. The policy includes setting aside allocation for multi-family residential development and for development in Town Centers.

Since adoption of these resolutions, the City Council has established a Strategic Plan which includes priorities for the built environment, recreation and equitable access, community for all, economic development, and continuous improvement. The City Council has also established specific directives for housing project and program priorities and discussed goals for economic development. Furthermore, the City Council has conducted discussions during consideration of project applications that relate to location and commodity requirements for vacation rentals, 1023
City Council Agenda Report May 3, 2022 Page 4 of 5
development of condominiums, and availability of opportunities for affordable housing.

Resolutions 2019-067 and 2021-036 are being brought back to the City Council with a recommendation to make minor amendments that would better align the commodity distribution policy with strategic measures to incentivize and direct land use activities and developments consistent with Council priorities.

An amendment to the policy for distribution of residential allocations would require multi-unit projects that are subdivided into condominiums to obtain single-family allocations in order to preserve multi-family allocations for rental properties (Attachment 04). Condominium units restricted for affordable or achievable income owners would still be eligible to receive Bonus Units from TRPA.

Amendments to the policy for the distribution of City owned development rights and land coverage would prohibit the use of City distributed development rights for vacation rentals, prevent the use of CFA for conversion to other development rights in order to reserve CFA for commercial economic development incentives, allow up to 20 TAUs to be converted to RUUs to be used for accessory dwelling units, and allows an additional 20 TAUs to be converted to multifamily RUUs that are used for workforce housing (employed at least 30 hours/week at a local business) (Attachment 05). Conversion of TAUs to RUUs for accessory dwelling units is required to be at a 1:1 ratio however conversion to multi-family RUUs is at 1:1.5. These amendments would retain the existing incentives in place for the development of housing and provide additional opportunities to incentivize the development of accessory dwelling units and market rate housing units for the local workforce.

Financial Implications: Revenue from the sale of development rights and land coverage is deposited in the Workforce Housing fund where it is used for the implementation of housing projects and programs.

Environmental Considerations: Amendment of this policy does not constitute an “approval” of a “project” pursuant to CEQA Guidelines Sections 15004 and 15352.

Policy Implications: The recommended amendments are consistent with the City General Plan and Strategic Plan, specifically the following policies:

General Plan Economic Development Element Policy ED‐1.2: Economic and Environmental Balance: The City shall strive to maintain a balance between economic health and environmental health through careful and efficient planning.

General Plan Economic Development Element Policy ED‐1.4: Economic Growth Considerations: The City shall ensure economic growth: makes a positive contribution to the local economy, community, and environment, with particular attention to potential impacts on the health of Lake Tahoe and the forest; does not negatively impact infrastructure and community 1024
City Council Agenda Report May 3, 2022 Page 5 of 5
facilities; and is compatible with “un‐biased” scientifically‐based and peer‐tested regional Environmental Thresholds.

General Plan Economic Development Element Policy ED‐1.9: Commercial Floor Area Allocation Transfer Incentives: The City shall seek incentives to facilitate Commercial Floor Area (CFA) transfers from other parts of the city to redevelopment project areas.

General Plan Housing Element Policy 1-1: The City shall adopt programs, ordinances, incentives, land use plans and other regulatory mechanisms that provide opportunities for the private sector to address the housing needs of citizens of all economic levels.

Strategic Plan Action Item 4.1.2: Evaluate available methods and tools which support a City of South Lake Tahoe economic development function to identify, recruit, and retain businesses. 1025
Resolution 2021-036
Adopted by the City of South Lake Tahoe
City Council
May 18, 2021
Approving Revised Residential Allocation Procedures

BACKGROUND
A. The Tahoe Regional Planning Agency provides authority for the distribution of residential allocations to the city pursuant to TRPA Code of Ordinances Section 50.5.2.C.

B. The City Council adopted a Residential Allocation Policy Statement in 1991 which was amended in 1997, 2001, 2009; 2011, 2015 and 2018 then reaffirmed by Resolution No. 2019- 033.

C. It is desirable for the City to facilitate the utilization of residential allocations for new residential construction within the City limits.

D. It is desirable for the City Residential Allocation Procedures to be clear and as streamlined as possible.

E. The City Council adopted Ordinance No. 2021- 1152 amending the City Code to adopt residential development and design standards on March 2, 2021, which allowed for single- family, duplex and triplex projects to be reviewed ministerially without a Design Review permit.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Adopts the Revised Residential Allocation Procedures, which are attached hereto as Exhibit A, and directs staff to initiate implementation of these procedures immediately.

Adopted by the City of South Lake Tahoe City Council on May 18, 2021 by the following vote:

Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace
Date:_________
Tamara Wallace, Mayor
Attest:

Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.

Resolution 2021-036
DocuSign Envelope ID: 138F6E22- 6888-4494-AF94-48EABA32B6BE 5/ 20/ 2021
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Exhibit A

RESIDENTIAL ALLOCATION PROCEDURES
The City of South Lake Tahoe distributes residential unit allocations to local governments every two years. The City Council has maintained a policy for the distribution of these allocations to properties within the City since 1991 with amendments occurring in 1997, 2001, 2009 2015 and 2018. The purpose of the policy is to provide consistency and fairness in the distribution of allocations to residential properties and property owners wanting to develop housing unitswithin the City.

ALLOCATIONS RECEIVED FROM TRPA

1. Ten percent of the City of South Lake Tahoe allocations are retained by TRPA for the applicants for unbuildable parcels pool.

2. If there are 55 or more allocations currently available in the Town Center pool, the allocations shall be distributed as follows:
o Sixty-six percent (66.6%) of the residential allocations received from TRPA are assigned to single-family applicants.
o Thirty-three percent (33.3%) of the residential allocations are assigned to multi-family projects. These allocations can be used for condominium projects.

Sixty-six percent (66.6%) of the Citywide residential allocationsreceived from TRPA are assigned to single-family applicants.

Thirty-three percent (33.3%) of the Citywide residential allocations are assigned to multi-family projects. These allocations can be used for condominium projects.

4. Any allocations which are reissued to the City by TRPA due to lack of applicants for unbuildable parcels shall be distributed first to single-family applicants with priority to those in the Town Center, then to multi-family applicants with priority to those in the Town Center.

5. If all allocations assigned to single-family applicants have been accepted and utilized and there are allocations assigned to multi-family applicants, which have been offered to all applicants on the waiting list but not accepted, indicating a lack of demand, those allocations may be offered to applicants on the single- family waiting list.

Resolution 2021-036
DocuSign Envelope ID: 138F6E22- 6888-4494-AF94-48EABA32B6BE 1027

NOTIFICATION LETTER

6. Within 30 days after receiving a Notification Letter from the City of South Lake Tahoe the property owner is required to return the Notification Letter with one of the following options selected;
o Accept the allocation and comply with all requirements. The Allocation Certificate must be claimed by the owner or an agent (with written authorization from the owner). Signed original documentation must be provided. A copy of the current Grant Deed must be presented. Note:

The multi-family notification letter will specify the number of allocations being issued.
o Reject the allocation and request name to be placed at the end of the waitlist and include the fee established by the current City Council in the City Master Fee Schedule.
o Reject the allocation and request name to be removed from the waitlist and that the deposit held by the City of South Lake Tahoe be refunded.

7. Only projects offered allocations in the initial distribution are required to be placed at the end of the waitlist or be removed. Allocation offers to projects further down the list, which were not accepted in the initial distribution, may rejectthe offer and remain in place on the waitlist. However, rejecting an allocation and remaining in place on the waitlist may only occur one time per project. Subsequent allocation offer rejections will result in the project being placed at theend of the waitlist.

NUMBER OF ALLOCATIONS AWARDED

8. A property owner (or his/her agent) may receive only one single-family allocationper building season unless there are no other applicants on the waiting list.

9. A maximum of eight (8) allocations may be issued to any one multi-family projectper allocation period except for projects located in a Town Center where there is not maximum limit.

10. Repeat names will be moved to the end of the list in the order encountered as it stands at the time of award of these allocations. No additional fee is charged.

TRANSFER OF ALLOCATION

11. Property owner/applicant's place on the list is parcel and owner specific. It may not be transferred to any other property or owner. If title to the property changes or the property is sold before an Allocation Certificate is issued the property will be removed from the list and the original applicant may request a return of the refundable portion of the deposit. The new owner shall submit the required documentation, fee and deposit to be placed at the end of the existing list.

12. Once an Allocation Certificate is issued the property can be sold with the allocation. Under no circumstances can that allocation be transferred to any other parcel of land.

PLAN SUBMITTAL AND CRITICAL DATES

13. For projects with more than three units, within three (3) months the property owner shall submit a Design Review application packet and checklists to the City of South Resolution 2021-036
DocuSign Envelope ID: 138F6E22- 6888-4494-AF94-48EABA32B6BE 1028
Lake Tahoe Planning Division. Within six (6) months of a design review approval, or one ( 1) year after submittal date for design review, the property owner shall submit a complete multi-family residential application to the City of South Lake Tahoe Building Division. If the Design Review is not approved within one (1) yearafter application submittal date the allocation( s) will go back in the distribution pool. The project may remain on the waiting list for future allocation distributions.

14. For single-family, duplex and triplex projects, within six ( 6) months the property owner shall submit acomplete residential building permit application to the City of South Lake Tahoe Building Division.

15. Accepting a residential allocation via written notification to the City of South Lake Tahoe and at any time thereafter returning or rescinding the allocation, or failure to comply with any of the critical dates, shall cause a forfeiture of the deposit and the allocation to the City of South Lake Tahoe.

16. Council action is required to extend any deadlines.

Resolution 2021-036
DocuSign Envelope ID: 138F6E22- 6888-4494-AF94-48EABA32B6BE 1029
Resolution 2019-067 September 17, 2019 Page 1 of 5
Resolution 2019-067
Adopted by the City of South Lake Tahoe City Council
September 17, 2019
Policy Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Development Commodities Owned by City of South Lake Tahoe

BACKGROUND
A. The Tahoe Regional Planning Authority (TRPA) is the land use authority and has established a development rights system to manage future development and a system to regulate the amount of land coverage in the Tahoe basin.

B. The TRPA development rights are land use units that must be acquired before a property can be developed. Development rights include potential residential units of use ( PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), and commercial floor area (CFA).

C. Permanent land coverage is also regulated by the TRPA to protect the Lake Tahoe watershed. Parcels are limited to a specified amount of land coverage and, in some cases, may be transferred to maximize the allowable amount on a given parcel.

D. The City of South Lake Tahoe is subject to applying the development rights and land coverage systems to our review and approval of land use entitlement applications that are subject to the TRPA/City Memorandum of Understanding.

E. The City has TRPA development rights and land coverage which have accumulated from various sources (e.g., Environmental Improvement Projects, implementation of Community Plans and Area Plans, City purchase of land with attached development rights, the retirement of rights, and TRPA allocation of development).

F. The City has been approached by project developers/applicants interested in securing development rights and land coverage from the City.

G. The City has independently sold or provided various TRPA development rights and land coverage to project developers/applicants based on the merits of the individual project.

H. Through the sale of TRPA development rights and land coverage the City has also provided an environmental and economic incentive to projects which otherwise would not have been economically feasible.

I. The City believes it is appropriate, and transparent, to establish a policy that addresses the future distribution and sale of development rights and land coverage maintained by the City.

DocuSign Envelope ID: 19396AFD-064F-4828-8D37-0F894DFA7B63 1030
Resolution 2019-067 September 17, 2019 Page 2 of 5
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Acknowledges and reserves the right to retain all necessary TRPA development rights and land coverage to support City-sponsored municipal projects; and

2. Hereby authorizes the distribution and sale of City maintained TRPA development rights and land coverage subject to the provisions of this policy; and

3. The City Council adopts the following policy for the distribution and sale of TRPA development rights and land coverage :

A. Distribution and sale of TRPA development rights and land coverage shall be directed toward the development of residential, commercial, mixed-use, and industrial properties in the City of South Lake Tahoe.

B. Distribution and sale of City-owned TRPA development rights and land coverage shall be consistent with the TRPA Regional Plan, TRPA Code of Ordinances, City of South Lake Tahoe General Plan and Municipal Code, and all other applicable community or area plan policies.
i. When a developer/applicant requests City maintained TRPA development rights and/or land coverage for a project to be located within the City, the proposed project shall be evaluated to ensure the project is consistent with the following criteria;
a. The subject property must be in the City of South Lake Tahoe; and b. The developer/applicant must have a planning application on file with the Development Services Department, prior to a project developer/applicant requesting development rights and/or land coverage; and
c. The proposed project provides an environmental and/or economic benefit for the community.

C. The distribution and sale of development rights and land coverage shall be to the affected parcel(s), not the developer/applicant; and i. Any change to an approved project (e.g., elevations, building siting, interior configuration) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. The developer/ applicant will return to the City the allocated development rights and/or land coverage. The City shall reimburse the developer/applicant the price of sale, less the City’s administrative processing fee.

DocuSign Envelope ID: 19396AFD-064F-4828-8D37-0F894DFA7B63 1031
Resolution 2019-067 September 17, 2019 Page 3 of 5
D. The distribution and sale of TRPA development rights and land coverage shall be at no cost for the following projects:
i. The sale of city-owned development rights and land coverage shall be at no cost to single or multi-family residential projects, which are deed restricted to accommodate low, very-low, and moderate-income families, as defined by the Department of Housing and Community Development HCD) annual State Income Limits, pursuant to Health & Safety Code Section 50093.
ii. The sale of city-owned development rights and land coverage shall be at no cost to a developer/applicant of a multi-family residential project or a mixed-use project, if the project is located with the boundaries of an identified Town Center.
a. In order to qualify for city-owned development rights and land coverage at no cost under this provision, the developer/applicant shall provide evidence that all residential units in said project are deed-restricted for occupancy by a tenant employed at least 30 hours per week at a place of business located in the Tahoe Basin.
b. A mixed-use project can be the horizontal or vertical mix of uses residential, commercial and industrial) within the same building structure.
iii. The sale of city-owned development rights and land coverage shall be at no cost to commercial/industrial projects, when the property is deemed to be distressed and/or blighted, and the value of the proposed improvements and/or new construction are greater than fifty-one percent of the El Dorado County assessed value.

E. Should an approved residential, commercial, mixed-use, or industrial project later choose to subdivide the land (pursuant to the Subdivision Map Act), all previously required deed restrictions will remain in force or the developer shall reimburse the City the full market rate for said development rights/land coverage at the time of subdivision.

4. The City Council adopts the following implementation strategy for the distribution and sale of development rights and land coverage:

A. The Development Services Department will have an appraisal prepared by a California licenses appraiser, analyzing the sale of each development right potential residential units of use (PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), commercial floor area (CFA); and land coverage), for the preceding calendar year.
i. The appraiser shall prepare the above-described report for presentation to the City Council on or before February 1 of each calendar year.

DocuSign Envelope ID: 19396AFD-064F-4828-8D37-0F894DFA7B63 1032
Resolution 2019-067 September 17, 2019 Page 4 of 5
a. The report shall describe the methodology used in determining the value of each development right category, including commercial floor area, and
b. The report shall contain recommendations for each development right category, including land coverage; and
c. The report shall also include a recommended tiers rate structure to address variances based on the scale of the project.
ii. The City Council reserves the right to annually set the price point for each development right type and/or land coverage; and
a. The established cost per category, shall be based upon one-third of the recommended appraisal rate. The City Council may adjust the development rights and land coverage rates based upon the first prepared appraisal, and every four years thereafter.
iii. A developer/applicant shall have one-year from the date of the approved development right/land coverage request to submit and obtain a building permit, issued through the City. If this milestone is unachievable the applicant may apply for an extension or relinquish the City granted development rights and land coverage.
iv. One, one-year extension for the retention of approved development rights/ land coverage may be granted by the City Manager, based on the project continuing to meet the distribution policy and proceeding in a diligent manner, or relinquish the City granted development rights and land coverage.
v. The sale and transfer of development rights/land coverage shall be completed prior to the issuance of a Certificate of Occupancy. vi. If any of the associated City Planning, Building and/or TRPA permits expire, the allocated development rights/land coverage shall be returned to the City. The City shall also reimburse the developer/applicant for the cost of those development rights/land coverage, less the City’s administrative processing fee.
vii. Should the project parcel(s) change ownership the development rights may be transferred to a new owner so long as the project is constructed as approved. Any change to an approved project (e.g., elevations, building siting, interior configuration) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. viii. When approved development rights/land coverage is banked on a sending parcel, the developer/applicant shall obtain TRPA Transfer of DocuSign Envelope ID: 19396AFD-064F-4828-8D37-0F894DFA7B63 1033
Resolution 2019-067 September 17, 2019 Page 5 of 5
Development Rights approval prior to the issuance of a certificate of occupancy.
ix. The proceeds from the sale of city-owned development rights/land coverage shall be dedicated to the City’s Workforce Housing Fund to support the City’s affordable housing initiatives.

B. The City Council hereby delegates to the City Manager the authority to approve or deny, and to complete the distribution and sale of the development rights/land coverage inside the City of South Lake Tahoe consistent with the criteria outlined in this policy.

C. The City Council reserves the sole right to distribute and sell development rights/land coverage to private developers and other public agencies outside the City of South Lake Tahoe, and all such distribution and sales shall be at the full market rate at that time.

D. The City Council hereby directs the implementation of an annual review process of this policy to be completed prior to February 1, of each calendar year.

E. These policies supersede all other distribution and sale of development rights and land coverage policies adopted by the City Council through Resolution No. 2017-73; and
Adopted by the City of South Lake Tahoe City Council on September 17, 2019 by the following vote:

Yes: Collin, Laine, Middlebrook and Wallace

Absent: Bass
Brooke Laine, Mayor Date
Attest:

Sue Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.

DocuSign Envelope ID: 19396AFD-064F-4828-8D37-0F894DFA7B63 9/ 27/ 2019
1034
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
May 3, 2022
Approving Revised Residential Allocation Procedures

BACKGROUND
A. The Tahoe Regional Planning Agency provides authority for the distribution of residential allocations to the city pursuant to TRPA Code of Ordinances Section

50.5.2.C.

B. The City Council adopted a Residential Allocation Policy Statement in 1991 which was amended in 1997, 2001, 2009; 2011, 2015, 2018, 2019, and 2021.

C. It is desirable for the City to facilitate the utilization of residential allocations for new residential construction within the City limits.

D. It is desirable for the City Residential Allocation Procedures to be clear and as streamlined as possible.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Adopts the Revised Residential Allocation Procedures, which are attached hereto as Exhibit A, and directs staff to initiate implementation of these procedures immediately.

Adopted by the City of South Lake Tahoe City Council on May 3, 2022 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Devin Middlebrook, Mayor
Attest:
1035
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
1036
Exhibit A

ALLOCATIONS RECEIVED FROM TRPA

1. Ten percent of the City of South Lake Tahoe allocations are retained by TRPA for the applicants for unbuildable parcels pool.

3. If there are less than 55 allocations currently available in the Town Center pool, the allocations shall be distributed as follows:
o Forty nine percent (49%) of the residential allocations received from TRPA are assigned to Town Centers in adopted Area Plans. In the event that no applicants on the Town Center waitlist claim an available allocation the Town Center pool may be capped at 55 and additional allocations may be distributed to the multi-family and single-family pools according to the formula described in section 2 above.
o The remaining residential allocations received from TRPA are assignedto any area of the City as follows:
• Sixty-six percent (66.6%) of the Citywide residential allocationsreceived from TRPA are assigned to single-family applicants.
• Thirty-three percent (33.3%) of the Citywide residential allocations are assigned to multi-family projects. These allocations can be used for condominium projects.

NOTIFICATION LETTER

7. Only projects offered allocations in the initial distribution are required to be placed at the end of the waitlist or be removed. Allocation offers to projects further down the list, which were not accepted in the initial distribution, may reject the offer and remain in place on the waitlist. However, rejecting an allocation and remaining in place on the waitlist may only occur one time per project. Subsequent allocation offer rejections will result in the project being placed at theend of the waitlist.

NUMBER OF ALLOCATIONS AWARDED

8. A property owner (or his/her agent) may receive only one single-family allocation per building season unless there are no other applicants on the waiting list.

9. A maximum of eight (8) allocations may be issued to any one multi-family projectper allocation period except for projects located in a Town Center where there is not maximum limit.

10. Repeat names will be moved to the end of the list in the order encountered as it stands at the time of award of these allocations. No additional fee is charged.

10.11. Multi-family projects that are subdivided into condominiums must obtain singlefamily allocations.

TRANSFER OF ALLOCATION

11.12. Property owner/applicant's place on the list is parcel and owner specific. It may not be transferred to any other property or owner. If title to the property changes or the property is sold before an Allocation Certificate is issued the property will be removed from the list and the original applicant may request a return of the refundable portion of the deposit. The new owner shall submit the required documentation, fee and deposit to be placed at the end of the existing list.

12.13. Once an Allocation Certificate is issued the property can be sold with the allocation. Under no circumstances can that allocation be transferred to any other parcel of land.

PLAN SUBMITTAL AND CRITICAL DATES
1038

13.14. For projects with more than three units, within three (3) months the property owner shall submit a Design Review application packet and checklists to the City of South Lake Tahoe Planning Division. Within six (6) months of a design review approval, or one (1) year after submittal date for design review, the property owner shall submit a complete multi-family residential application to the City of South Lake Tahoe Building Division. If the Design Review is not approved within one (1) yearafter application submittal date the allocation(s) will go back in the distribution pool. The project may remain on the waiting list for future allocation distributions.

14.15. For single-family, duplex and triplex projects, within six (6) months the property owner shall submit acomplete residential building permit application to the City of South Lake Tahoe Building Division.

15.16. Accepting a residential allocation via written notification to the City of South LakeTahoe and at any time thereafter returning or rescinding the allocation, or failure to comply with any of the critical dates, shall cause a forfeiture of the deposit and the allocation to the City of South Lake Tahoe.

16.17. Council action is required to extend any deadlines. 1039

Page 1 of 6 ends

Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council May 3, 2022
Policy Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Development Commodities Owned by City of South Lake Tahoe (Replacing Resolution 2019-067)

BACKGROUND
A. The Tahoe Regional Planning Agency (TRPA) is the land use authority and has established a development rights system to manage future development and a system to regulate the amount of land coverage in the Tahoe basin.

B. The TRPA development rights are land use units that must be acquired before a property can be developed. Development rights include potential residential units of use (PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), and commercial floor area (CFA).

F. The City has been approached by project developers/applicants interested in securing development rights and land coverage from the City.

G. The City has independently sold or provided various TRPA development rights and land coverage to project developers/applicants based on the merits of the individual project.

I. The City believes it is appropriate, and transparent, to establish a policy that 1040

Page 2 of 6 ends

addresses the future distribution and sale of development rights and land coverage maintained by the City.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Acknowledges and reserves the right to retain all necessary TRPA development rights and land coverage to support City-sponsored municipal projects; and

2. Hereby authorizes the distribution and sale of City maintained TRPA development rights and land coverage subject to the provisions of this policy; and

3. The City Council adopts the following policy for the distribution and sale of TRPA development rights and land coverage:

B. Distribution and sale of City-owned TRPA development rights and land coverage shall be consistent with the TRPA Regional Plan, TRPA Code of Ordinances, City of South Lake Tahoe General Plan and Municipal Code, and all other applicable community or area plan policies. i. When a developer/applicant requests City maintained TRPA development rights and/or land coverage for a project to be located within the City, the proposed project shall be evaluated to ensure the project is consistent with the following criteria;
a. The subject property must be in the City of South Lake Tahoe; and
b. The developer/applicant must have a planning application on file with the Development Services Department, prior to a project developer/applicant requesting development rights and/or land coverage; and
c. The proposed project provides an environmental and/or economic benefit for the community.

Page 3 of 6 ends

or siting, interior configurationland uses, or density) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. The City Manager has the discretion to require any project change to be reviewed by the City Council to determine whether development rights or land coverage should be revoked. If revoked, Tthe developer/ applicant will return to the City the allocated development rights and/or land coverage. The City shall reimburse the developer/applicant the price of sale, less the City's administrative processing fee.

D. The distribution and sale of TRPA development rights and land coverage shall be at no cost for the following projects:
i. The sale of city-owned development rights and land coverage shall be at no cost to single or multi-family residential projects, which are deed restricted to accommodate low, very-low, and moderateincome families, as defined by the Department of Housing and Community Development (HCD) annual State Income Limits, pursuant to Health & Safety Code Section 50093.
ii. The sale of city-owned development rights and land coverage shall be at no cost to a developer/applicant of a multi-family residential project or a mixed-use project containing multi-family residential units, if the project is located with the boundaries of an identified Town Center.
a. In order to qualify for city-owned development rights and land coverage at no cost under this provision, the
developer/applicant shall provide evidence that all
residential units in said project are deed-restricted for occupancy by a tenant employed at least 30 hours per
week at a place of business located in the Tahoe Basin. b.a. A mixed-use project can be the horizontal or vertical mix of uses (residential, commercial and industrial) within the same building structure.
iii. The sale of city-owned development rights and land coverage shall be at no cost to commercial/industrial projects, when the property is deemed to be distressed and/or blighted, and the value of the proposed improvements and/or new construction are greater than fifty-one percent of the El Dorado County assessed value. iv. Up to 20 City banked Tourist Accommodation Units may be converted to Residential Units of Use and sold at no cost for the 1042

Page 4 of 6 ends

construction of new Accessory Dwelling Units.
v. Up to 20 City banked Tourist Accommodation Units may be converted to Residential Units of Use and sold at no cost for the construction of new multi-family (2 or more units) projects where the developer/applicant provides evidence that all residential units utilizing converted City Tourist Accommodation Units are deed-restricted for occupancy by a tenant employed at least 30 hours per week at a place of business located in the Tahoe Basin.

E. Should the City provide or sell development rights or land coverage for a project containing residential units, a deed restriction shall be placed on the property prohibiting use as a Vacation Home Rental as defined in City Code Section 3.50.370.

F. Commercial Floor Area shall only be provided or sold to a commercial project and shall not be converted to other development right types.

4. The City Council adopts the following implementation strategy for the distribution and sale of development rights and land coverage:

A. The Development Services Department will have an appraisal prepared by a California licenses appraiser, analyzing the sale of each development right (potential residential units of use (PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), commercial floor area (CFA); and land coverage), for the preceding calendar year. i. The appraiser shall prepare the above-described report for presentation to the City Council on or before February 1 of each calendar year. a. The report shall describe the methodology used in
determining the value of each development right category, including commercial floor area, and
b. The report shall contain recommendations for each
development right category, including land coverage; and c. The report shall also include a recommended tiers rate structure to address variances based on the scale of the project.
1043

Page 5 of 6 ends

ii. The City Council reserves the right to annually set the price point for each development right type and/or land coverage; and a. The established cost per category, shall be based upon one-third of the recommended appraisal rate. The City Council may adjust the development rights and land coverage rates based upon the first prepared appraisal, and every four years thereafter. iii. A developer/applicant shall have one-year from the date of the approved development right/land coverage request to submit and obtain a building permit, issued through the City. If this milestone is unachievable the applicant may apply for an extension or relinquish the City granted development rights and land coverage. iv. One, one-year extension for the retention of approved development rights/ land coverage may be granted by the City Manager, based on the project continuing to meet the distribution policy and proceeding in a diligent manner, or relinquish the City granted development rights and land coverage.
v. The sale and transfer of development rights/land coverage shall be completed prior to the issuance of a Certificate of Occupancy.
vi. If any of the associated City Planning, Building and/or TRPA permits expire, the allocated development rights/land coverage shall be returned to the City. The City shall also reimburse the developer/applicant for the cost of those development rights/land coverage, less the City's administrative processing fee. vii. Should the project parcel(s) change ownership the development rights may be transferred to a new owner so long as the project is constructed as approved. Any change to an approved project (e.g., elevations, building siting, interior configuration) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage.
viii. When approved development rights/land coverage is banked on a sending parcel, the developer/applicant shall obtain TRPA Transfer of Development Rights approval prior to the issuance of a certificate of occupancy.
ix. The proceeds from the sale of city-owned development rights/land coverage shall be dedicated to the City's Workforce 1044

Page 6 of 6 ends

Housing Fund to support the City's affordable housing
initiatives.

D. The City Council hereby directs the implementation of an annual review process of this policy to be completed prior to February 1, of each calendar year.

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Devin Middlebrook, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
1045
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 20
Agenda Item: Presentation by Lime on 2021 Season; Direction Regarding Winter Operations for Shared Mobility Devices
Executive Summary: Lime has requested to make a report to City Council summarizing its 2021 season and its plans for 2022.

In response to a request from Bird Scooters at the end of the 2021 season, City Council requested to bring an item back for discussion on whether to amend the Shared Mobility Device Ordinance, Chapter

4.185 of the South Lake Tahoe City Code, to allow for winter operations. Currently, shared mobility device companies may get a permit from the Police Department to operate between May 1 and October 31 each year. Staff recommends not allowing winter operations for public safety reasons because of the relatively high amount of average snowfall in South Lake Tahoe (142 inches) compared to other cities where Bird Scooters has winter operations (Denver at 60 inches and Salt Lake City at 54 inches). Public safety concerns include rider safety in snowy and icy conditions and potential safety hazards that could be caused by scooters buried in snow.

Requested Action / Suggested Motions: (1) Receive presentation from Lime; and (2) Provide direction to staff on whether to amend Shared Mobility Device Ordinance to allow for winter operations.

Responsible Staff Members: Joseph Irvin, City Manager and Heather Stroud, City Attorney Responsible Staff Member: Joseph Irvin, City Manager (530) 542-6043 and Heather Stroud, City Attorney (530) 542-7478
Reviewed and Approved By:

Susan Blankenship, City Clerk
Attachments:
01-Lime Presentation.pdf
1046
South Lake Tahoe
2022 Season Launch
1047
Agenda

1. Introduction

2. Lime

3. Program Summary

4. Improving City Living
10482
Lime is the world’s largest shared electric
vehicle company.

WHO IS LIME?
10493
Build a future where transportation is
shared, affordable and carbon-free.

OUR MISSION
10504
Lime Around
the World
Cities
>230
Continents
>5
Trips
>300M
Tons of CO2 avoided
>26,000+
1051
Our Core Principles
01 Safety
02 Sustainability
03 Community
04 Innovation
6 01
Safety
04 Innovation
02 Sustainability
03 Community
1052
Mode Shift
Lime’s micromobility vehicles are particularly well-suited to the first approach. In cities around the world, travellers use Lime’s shared scooters and bicycles to replace car trips. In Denver, Colorado roughly 1 in 3 Lime trips replace a motor vehicle trip (including personally-owned vehicles as well as taxi/ride hailing). In Sydney, Australia and Milton Keynes, UK, survey data indicates that 1 in 4 Lime trips substitute for a car or taxi ride. These findings from Lime’s Policy Research team align with studies conducted by cities and academics. A recent literature review article found that “the substitution rate of riding e-scooters for auto trips is within 25-40% in most cases” (Transport Reviews).
10537

STRONG DEMAND
Source: NACTO 10548
South Lake Tahoe
Program Summary
2021
1055
LIME
Easy to Use
And Reliable
1056
● Download the app ● Sign up with email,
phone, or social
● Add Payment Info ● Lime Access ● Find a scooter
1057
Platforms and Partnerships
make Lime accessible to
everyone!
150+ 300%
24,000 45,000
cities where riders can book
trips through the Uber app
Year-over-Year growth in
trips booked via Uber
riders using Wheels vehicles
through the Lime app
trips on Wheels vehicles
through the Lime app
105812
Our Impact
Serving South Lake Tahoe since 2017
823,984
Trips taken
921,700
Miles
traveled
9,000
Gallons of
gas saved
282,636
Riders
13 201,800
Car trips
replaced
46%
Commuter
timeTrips
1059
Downtown/Stateline 2021
1060
Midtown Ridership
1061
The Y, Keys, Sierra Tract
1062
What is your ZIP code?
South Lake Tahoe | Zip Codes
1063
What is your ZIP code?
South Lake Tahoe | Zip Codes
1064
South Lake Tahoe | Zip Codes

2.5% of all users report a home zip code on Lake Tahoe
➔ 1.96% 96150 South Lake Tahoe
➔ .46% 96151 South Lake Tahoe
➔ .17% 89460 Gardnerville
➔ .18% 89449 Stateline/Kingsbury
➔ .08% 89448 Round Hill Village/Zephyr Cove
➔ .06% 96161 Truckee
➔ .02% 89450 Incline Village
➔ .03% 89451 Incline Village
1065
© 2022 Lime. Proprietary and Confidential. Do not Distribute ● Geo-fence existing
parking areas
● In-app instructions
show riders where to
park safely
● Push-notification to
increase rider
awareness and
education
Available
Scooters
Recommended
Parking Spots
Safety: Our approach to smart parking
1066
© 2022 Lime. Proprietary and Confidential. Do not Distribute Safety: Our approach to safe riding
1067
© 2022 Lime. Proprietary and Confidential. Do not Distribute ● In-app Safety Center
● 24/7 Customer Service
Help Line
● Training Mode feature
Safety: Rider assistance
1068
Safety: Complaint History
● Police report of incident : 1
○ The only incident involved a vehicle hitting a scooter rider ● Incorrect Parking: 55
○ All responded to within 3 hours
● Reports of Unsafe riding: 27
● Reports of Vandalism: 0
○ In 2019 there had been 4 instances where scooters had been reportedly used to vandalize property
● Average Response Time: 47.58 minutes
● Average Trip Rating: 4.14/5
○ Customers rate their experience in the app at the completion of the ride 1069
● 37,927,052 scooter trips (terminated or completed) in one year ● 99.985% trips completed with NO reported safety incident to Lime ● 1 of every 1.1 million rides resulted in severe injury or fatality ● 1 of every 83,333 rides resulted in an incident requiring medical attention Safety | Did you know?

99.9% of Lime Scooter Trips are Incident Free
1070
Lime Hero | Local Environmental Impact
Lime has partnered with Keep Tahoe Blue to help advocate for reducing the impact of car pollution on lake clarity, as well as the air we breathe. Choosing to walk, bike, scooter, and use shared transit to get places is a great step in the right direction. Offering more transportation options conveniently and affordably to the public helps encourage these behaviors and actions.

Lime is proud to partner with Keep Tahoe Blue as our Lime Hero partner in the City, which allows our riders to round up to the nearest dollar and donate the additional funds to Keep Tahoe Blue. To date, riders in South Lake Tahoe have raised $2,055.14 for Keep Tahoe Blue. By shifting some trips from cars, Lime riders have kept an estimated 199,100 car trips off the road and avoided consuming an estimated 8,900 gallons of gas.

Our data metrics estimate scooter rides have saved over 712,728 lbs of Co2 in Tahoe Alone! The little things really do add up!!
1071
Lime | Carbon Commitments
NOW
100% Renewable
100% renewable energy for
charging all Lime e-bikes and
scooters and powering offices
and warehouses. Expanding
local renewable energy use.

Transitioning to electric
operations vehicles.
2025
Carbon Negative
Carbon negative for the entire
company, service and entire
value chain (Scope 1, 2, and 3
emissions). Balancing
reductions, offsets, and removals
aligned with our commitment to
a Science Based Target and the
SBTi protocol.

Before 2030
Net Zero
Net zero consistent with a
rigorous Science Based Target
and the Paris Climate
Agreement’s goal of limiting
warming to 1.5C.

The future of transportation is shared, electric, and
carbon-free
1072
Social Campaign | Ride Green
1073
Rider Surveys
Poor reliability was the most
common barrier: 25% of riders
mentioned availability as an issue,
and 22% raised mechanical issues.

Cities can address this barrier
through higher fleet caps.

Lime can increase uptime,
continue to improve our fleet
placement and operations
Source: Lime global rider surveys 1074
Improving
City Living
1075
Our Journey in South Lake Tahoe
‘LimeBike’
Founded
‘Lime-S’
‘Lime-E’
1076
PART 2
The Lime
Scooter
1077
107832
Safe and Sustainable Design
● Durable for the elements
● Enabling a tidier street
● Designed for every
environment
● Intuitive interface
33 Rider stress testing to ensure durability and performance (above). Design improvements have reduced stress levels up to 50%.
1079
108034
Affordable
108135

AFFORDABLE
of Lime riders live in households earning less than the 50%
country’s median income
33%
Source: Lime global rider surveys; Conveyal
improvement in job access by introducing shared scooters and bicycles to complement public transit
108236
1083
Transportation
must be equitable
We believe transportation should be
accessible and affordable for all.

We’re proud to offer Lime Access,
our transportation equity program,
to provide discounted and free fares
to qualifying riders.
1084
39 Lime Access
Lime Access provides
deeply discounted
rides individuals
receiving local state of
federal public benefits
program, and access
for people without
smartphones or credit
cards.
1085
To qualify for Lime Access, a rider must fill out a short application and provide their name, the phone number associated with their Lime account, an image of their photo identification, and proof of enrollment in a local, state or federally-run assistance program such as EBT card, CALFRESH, discounted PG&E bill, or discounted MUNI fare.

After applying, applications are reviewed and approved within 2-3 days.

The discounted trip far will be applied immediately after approval.

Eligibility for Lime Access
1086
Equity Based Payment Option #1 | Text to Unlock
108741
Equity Based Payment Option #2 | Cash Payment
108842
New Discount Passes
43 Standard or
“Walk-Up”
$1 to unlock and $0.45 per minute
Lime Access $0.50 to unlock and $0.07 per minute
Lime Prime $7.99 Monthly Unlock Pass - Riders can
skip the unlock fee for a month
Lime Pass ● $9.99 for one hour
● $19.99 day pass
● $54.99 for 3 days of unlimited
riding
1089
Local Customer Service
In App or
1-888-LIME-345 for our 24/7 support
center
Alyssa Edelen
SW Regional General Manager
[email protected]
Karla Owunwanne
Government Relations Director,
Pacific/Southwest
[email protected]
Bivett Brackett
Senior Manager of Government &
Community Relations for Northern CA
(415) 377-3750
[email protected]
Michael Saucier
Local Operations Manager
(916) 944-4404
[email protected]
Stay in Touch : Local Lime Team
1090
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 21
Agenda Item: Single Room Occupancy Program Fee Exemption for Tahoe Coalition for the Homeless Executive Summary: The Tahoe Coalition for the Homeless (TCH) was awarded Project Homekey grant funds and completed acquisition of three properties in late 2020. The three properties are located at: 2250 Lake Tahoe Blvd, (Bears Den), 2215 Lake Tahoe Blvd, (The Bird’s Nest), 1137 Emerald Bay Road, (Red Lodge). These properties have outstanding fees and interest in addition to the annual SRO program fees. This resolution would waive the current balance of fees and interest and exempt TCH from annual SRO fees. The exemption would be reassessed upon termination or renewal of the Operating Agreement between TCH and the City in April 2024.

Requested Action / Suggested Motions: Pass a Resolution authorizing waiving outstanding fees and interest in addition to projected annual Single Room Occupancy program fees for the Tahoe Coalition for the Homeless.

Responsible Staff Member: Jessica Wackenhut Lomeli, Associate Housing Planner Responsible Staff Member: Jessica Wackenhut Lomeli
Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff_Report_TCH_SRO_Exemption_rl.docx
02-TCH CSLT MOU.pdf
03-TCH CSLT Operating Agreement.pdf
04-Resolution TCH Fee Waiver.docx
1091
Council Agenda Report May 3, 2022 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Single Room Occupancy Program Fee Exemption for Tahoe Coalition for the Homeless
Location: 2250 Lake Tahoe Blvd. (Bears Den), 2215 Lake Tahoe Blvd. (The Bird’s Nest), 1137 Emerald Bay Road (Red Lodge).

Responsible Staff Member: Jessica Wackenhut Lomeli, Associate Housing Planner Background: Pursuant to City of South Lake Tahoe Code Section 6.15.670, the Single Room Occupancy (SRO) program regulates hotels that have historically provided affordable housing rental options of last resort for low-income persons. City ordinance requires these hotels to rehabilitate units that do not meet minimum building, housing, and property maintenance code standards to provide safe, habitable rental units for low-income persons. Pursuant to the SRO Ordinance, all long-term lodging properties within the City are required to obtain an SRO Permit and pay associated fees. Properties rented out under thirty (30) nights are subject to the South Lake Tahoe Transient Occupancy Tax (TOT).

There is an annual inspection fee for all designated SRO permits which covers a portion of the operational costs of the SRO health and safety inspections. The annual fee is collected at the same time as payment of the lodging property’s business and professions tax. If the renewal is received after it is due, penalties and interest apply.

The Tahoe Coalition for the Homeless (TCH), in partnership with the Tahoe Regional Planning Agency (TRPA), applied for Project Homekey grant funding to purchase several hotel properties in the City with the intent to convert them to permanent, long-term housing for persons experiencing or at risk of homelessness. TCH was awarded grant funds and completed acquisition of three properties in late 2020. The three properties are located at:
2250 Lake Tahoe Blvd, (Bears Den)
2215 Lake Tahoe Blvd, (The Bird’s Nest)
1137 Emerald Bay Road, (Red Lodge)
On September 23, 2020, the City of South Lake Tahoe and TCH entered into a Memorandum of Understanding (MOU) to describe their agreements and relationship with respect to the issue of homelessness within the City (Attachment 2). On April 23, 2021, The City and TCH entered into an Operating Agreement (Attachment 3) which expires on April 20, 2024. This Agreement formalizes the overall partnership to ensure coordination in the continued operation, rehabilitation and maintenance of the three properties purchased through the support of the Project Homekey state administered grant including wraparound services provided to clients. 1092
Council Agenda Report May 3, 2022 Page 2 of 3
Issue and Discussion: The three properties owned by TCH are all subject to the SRO program annual inspection fees. However, given the relationship memorialized between the City and TCH via the MOU and the Operating Agreement, the City Council may choose to exempt TCH from SRO program fees to further enhance the community benefits. These properties are distinct from other SRO properties in that TCH is providing on-site supportive services to address client needs. At the Red Lodge, supportive services are also offered for both housed and unhoused clients. The supportive services, in addition to property maintenance and rehabilitation, are listed and described throughout the Operating Agreement.

TCH currently has outstanding fees, penalties and interest associated with late payment of 2020/2021 SRO fees due July 31, 2021. Staff recommends that the City Council adopt a resolution authorizing staff to exempt the penalties and interest for the late SRO program fees that include a total of $5,863.68 in addition to exempting TCH from future annual SRO program fees for the three TCH properties (2250 Lake Tahoe Blvd, 2215 Lake Tahoe Blvd, and1137 Emerald Bay Road) while the City and TCH maintain the MOU and Operating Agreement and TCH continues to provide on-site supportive services to clients. The resolution would not exempt these properties from payment of TOT when it is applicable. This exemption would result in an estimated annual program revenue reduction of $5,452.00. The City Council may reevaluate the continuation of an SRO program fee exemption for TCH upon termination or renewal of the Operating Agreement in April 2024.

Financial Implications: For the current 2021/2022 Business License year and annually afterwards while the City and TCH maintain the MOU and Operating Agreement, the amount of forfeited revenue would be the following:

Address/Property Name Outstanding Fees &
Interest
Projected Annual SRO
Program Fees
2215 Lake Tahoe Blvd/The
Bird’s Nest
$1,473.12 owed in penalties
and interest for late payment
of SRO fees
22 units x $94 = $2,068.00
1137 Emerald Bay Road/Red
Lodge
$937.44 penalties and
interest for late payment of
SRO fees
14 units x $94 = $1,316.00
2250 Lake Tahoe Blvd/Bears
Den
$1,980.00 SRO Fees
$1,473.12 penalties and
interest for late payment of
SRO fees
22 units x $94 = $2,068.00
Totals $5,863.68 $5,452.00
1093
Council Agenda Report May 3, 2022 Page 3 of 3
Environmental Considerations: The recommendation in this report is not a project under CEQA, because it does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Sections 15378(b)(2) and 15378(b)(4) and is, therefore, not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).

Policy Implications: This action would be consistent with an existing Memorandum of Understanding between the City and TCH where both parties agreed to seek to identify opportunities to develop shared strategies to prevent and reduce homelessness experienced by South Lake Tahoe residents and committed to jointly reviewing funding opportunities available to bring financial resources to our community which serve the priorities of the City.

The recommended action is consistent with the City Strategic Plan Action Item 1.3.6.

The recommended action is also consistent with the following adopted policies and programs:

City General Plan Housing Element
Policy 1-1 The City shall adopt programs, ordinances, incentives, land use plans and other regulatory mechanisms that provide opportunities for the private sector to address the housing needs of citizens of all economic levels.

Policy 2-5 The City shall recognize that it will become difficult to attract employees if they cannot afford to purchase or rent housing in South Lake Tahoe. The City shall encourage and support programs and activities that create a robust local economy that provides residents with good paying employment and the means to purchase and/or rent housing in the City. 1094
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MEMORANDUM OF UNDERSTANDING
Between City of South Lake Tahoe and Tahoe Coalition for the Homeless Regarding Communication, Coordination, and Collaboration This Memorandum of Understanding (“MOU”) is entered into by and between the City of South Lake Tahoe, a municipal corporation (the “City”) and Tahoe Coalition for the Homeless, a California nonprofit public benefit corporation (collectively “TCH”) under the terms and provisions set forth below. The City and TCH shall collectively be referred to herein as the “Parties” and individually as “Party.”

RECITALS
A. The City of South Lake Tahoe is the local government entity governing South Lake Tahoe, California, a small city located in the Tahoe Basin Region of El Dorado County.

B. Tahoe Coalition for the Homeless is a small nonprofit corporation providing services to homeless residents of South Lake Tahoe, whose mission is to end homelessness in the South Shore.

C. The City of South Lake Tahoe is a community of approximately 22,000, which regularly hosts more than 100,000 visitors as a regional and world-class recreational tourist destination. As such, many of the local employment opportunities are seasonal, part-time, low-wage, and unbenefited. A large part of the City’s housing inventory serves the tourist population therefore making affordable housing scarce for local families.

D. In the 2019 El Dorado County Homeless Point-In-Time Count & Survey, trained volunteers counted 613 people experiencing homelessness at the end of January. Among those counted, nearly 50% had lived in El Dorado County for their entire lives, and 80% had lived here for more than a year before becoming homeless.

Additionally, 27% were currently experiencing partner violence and 38% were experiencing first-time homelessness. There were 28 minor children, of whom 9 were unsheltered, and 86 transition-aged youth (18- 24 years old) - all 86 were found unsheltered. At least 77 people identified as part of a family unit and there were 61 seniors aged 62 years or older. In South Lake Tahoe, 110 individuals were counted, and certain subpopulations were disproportionately represented: African Americans were five (5) times more likely to be homeless; Native Americans, 13 times; Disabled, 3 times; and Veterans, 2 times.

E. Homelessness is a dangerous condition that frequently results in higher rates of morbidity and mortality.

South Lake Tahoe’s harsh alpine winters can cause serious injury and illness for unsheltered people, including hypothermia, dehydration, frostbite, and respiratory illnesses. For the past five (5) years, TCH has operated an 1095
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emergency warm room to provide life-saving shelter to individuals, and provides motel vouchers to families until housing can be secured. These supports have grown into a comprehensive suite of outreach, prevention, and case management services which ensure that South Lake Tahoe residents experiencing instability do not risk illness, injury, or death as a result of unsheltered homelessness.

F. In addition to negatively impacting South Lake Tahoe residents experiencing homelessness, there are other direct and indirect impacts on the community. Due to lack of preventative health care and safe, stable housing, people experiencing homelessness generate a significant number of calls for services from the South Lake Tahoe Fire and Police Departments, as well as high utilization of emergency medical services administered at the area’s only hospital, Barton Health. Unsheltered homelessness also negatively impacts local businesses, the tourist economy, sensitive ecological areas around Lake Tahoe, and the broader South Lake Tahoe community.

G. The Parties share a common interest in identifying solutions to prevent and reduce homelessness for South Lake Tahoe residents, especially those subpopulations considered highly vulnerable such as youth, families, seniors, and people with disabilities or serious health conditions. The ongoing COVID-19 pandemic has made these groups even more vulnerable to negative health effects and are less able to adhere to public health guidance and local mandates.

H. The City and TCH desire to enter into this MOU to describe their agreements and relationship with respect to the issue of homelessness within the city limits of South Lake Tahoe, CA. 1096
3 | P a g e

AGREEMENT
NOW, THEREFORE, it is hereby acknowledged, City and TCH hereto mutually agree as follows:

1. Both parties will seek to identify opportunities to develop shared strategies to prevent and reduce homelessness experienced by South Lake Tahoe residents.

2. The City will provide TCH with regular data regarding homelessness – police calls, fire and emergency transport, etc.

3. TCH will prepare and submit quarterly reports on homelessness, clients served, local programming offered, and housing availability to the City.

4. TCH will coordinate with City departments, including Development Services, Fire and Police to serve our community.

5. TCH will commit to a “local preference policy” where they will prioritize services and housing opportunities for residents of South Lake Tahoe.

6. Both parties commit to jointly reviewing funding opportunities available to bring financial resources to our community which serve the priorities of the City.

7. TCH will utilize housing inventory in a manner in which it was built and permitted, and will adhere to all applicable City land use, zoning and building codes.

8. The City will review and accept reasonable request for compliance oversight for funding awards, such as but not limited to the Homekey Grant Program, which are related to affordable and supportive housing in partnership with TCH.

9. The City Manager will coordinate with TCH and other agencies (including El Dorado County) involved in the local Continuum of Care (CoC) and Coordinated Entry System to develop regional strategies and to leverage resources.

10. Either Party may terminate this MOU at any time by written notice given to the other Party. 1097
4 | P a g e
IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed and therefore become effective as of the last date written below.

City of South Lake Tahoe
_________________________________________________________ __________________________________ Signed Dated
_________________________________________________________ __________________________________ Name Title
Tahoe Coalition for the Homeless
_________________________________________________________ __________________________________ Signed Dated
_________________________________________________________ __________________________________ Name Title
1098

OPERATING AGREEMENT
Between City of South Lake Tahoe and Tahoe Coalition for the Homeless This Operating Agreement is entered into by and between the City of South Lake Tahoe, a municipal corporation (the “City”) and Tahoe Coalition for the Homeless, a California nonprofit public benefit corporation (“TCH”) under the terms and provisions set forth below.

Recitals
A. The City of South Lake Tahoe is the local government entity governing South Lake Tahoe, California, a small city located in the Tahoe Basin Region of El Dorado County.

B. Tahoe Coalition for the Homeless is a small nonprofit corporation providing services to homeless residents of South Lake Tahoe, whose mission is to end homelessness in the South Shore.

C. On September 22, 2020 the City and the Tahoe Coalition for the Homeless (TCH) entered in to a Memorandum of Understanding (MOU) to describe their agreements and relationship with respect to the issue of homelessness within the city limits of South Lake Tahoe, CA. The MOU recognizes the partnership between the City and TCH in identifying solutions to prevent and reduce homelessness for South Lake Tahoe residents, especially those subpopulations considered highly vulnerable such as youth, families, the elderly, and people with disabilities or serious health conditions.

D. Since entering in to the MOU, TCH has acquired ownership of the following three hotel properties within the City, utilizing state Homekey grant funds, to provide homes for people experiencing or at risk of homelessness:
2250 Lake Tahoe Blvd, (Bears Den)
2215 Lake Tahoe Blvd, (The Bird’s Nest)
1137 Emerald Bay Road, (Red Lodge)
E. The City and TCH are working in partnership to ensure the continued operation, rehabilitation and maintenance of the properties and establish this Operating Agreement to memorialize that partnership.

Agreement
NOW, THEREFORE, it is hereby acknowledged, City and TCH hereto mutually agree as follows:

Utilizing the Housing First model, TCH will provide safe, low-barrier long term housing, as well as stabilization and supportive services contributing to the mutual goals of ensuring instances of homelessness are rare, brief, and non-recurring.

C-042-2021
DocuSign Envelope ID: 7191A63F-EF67-4C76-841F-438164644717 1099
On-Site Supportive Services

1. Using the full spectrum of the County’s social services resources in service of client needs, TCH and the City will strive for the ultimate goal for each client to gain the skills needed to be stable, independent and productive members of the community.

2. TCH will insure that supportive services programs and clients comply with the rules as specified in Federal, State and County housing programs.

3. TCH will work in partnership with other agencies, churches and businesses in the area to reduce duplication of services and to use best practices to serve the needs of clients at the lowest possible cost to the City.

4. TCH will maintain staffing levels necessary for delivery of residential services at each of the properties listed above, including but not limited to:
a. 24-hour Staff
b. Janitorial Services
c. Site Management and Maintenance
d. Site monitoring for fire hazard conditions
e. Primary point-of-contact available at all times to address issues that may arise and coordinate security issues with the South Lake Tahoe Police Department.

5. TCH will set-up and provide the following facilities to residents at each property:
a. Meal preparation area
b. Telephone access & message services, including an ADA-compliant telephone c. Waste removal and disposal to include, at a minimum, an onsite dumpster and weekly refuse and recycling service from South Tahoe Refuse.

Off-Site Supportive Services

1. In addition to on-site supportive services at the property locations, TCH provides supportive services at the Red Lodge location for both housed and unhoused clients. This property has several confidential offices available, a lobby space, and a large community room that are used for the services that were previously offered at their 3rd Street Office.

This new location also offers three public restrooms, one of which has a shower that is available to unhoused clients. TCH offices will support client programs for the target population.

Property Maintenance and Rehabilitation
The City supports TCH in their partnership with a private or non-profit housing developer and housing financial consultant to convert the properties from interim housing to Permanent Supportive Housing. The City and TCH will evaluate the project’s competitiveness for funding programs in order to develop a proactive strategy for rehabilitation of the properties consistent with the Physical Needs Assessments (PNAs) prepared by the State of California Real Estate Services Division of the General Services Department and AEI consultants.

1. TCH will prepare a Rehabilitation Plan for each property identifying priority construction and the order of phased construction work to achieve compliance with local, regional, state and federal requirements for long term residential use. The Rehabilitation Plan will C-042-2021
DocuSign Envelope ID: 7191A63F-EF67-4C76-841F-438164644717 1100
include design and construction cost estimates prepared by a licensed architect or engineer, which will be updated as necessary.

2. TCH and the City will jointly review funding opportunities available to rehabilitate the properties. The City will review and accept reasonable requests for compliance oversight for funding awards which are related to rehabilitation and operation of the properties as Permanent Supportive Housing.

3. TCH will maintain the properties to ensure compliance with building, housing and property maintenance code standards, and site maintenance standards as required by the applicable City Multi-Family Dwelling Inspection and Maintenance Program (City Code Chapter 6.30) or Single Room Occupancy (SRO) Program (City Code Chapter 6.15, Article VIII).

4. TCH will insure the establishment of necessary controls in place to qualify for and administer public funding programs. TCH will maintain all records required by Federal and/or State regulations pertinent to the activities funded under this Agreement. TCH shall make available to the City, all program and/or project-related records, documents, and any other financial data or records for review.

5. The term of this Agreement shall be for three (3) years commencing April 20, 2021.

CITY OF SOUTH LAKE TAHOE: TAHOE COALITION FOR THE HOMELESS:

By___________________________ By ________________________________ Joseph Irvin, City Manager Cheyenne Purrington, Executive Director Date __________________________ Date _____________________________

APPROVED AS TO FORM:

By____________________________ Date _______________________________ Heather Stroud, City Attorney
ATTEST:

By______________________________ Date _______________________________ Susan Blankenship, City Clerk
C-042-2021
DocuSign Envelope ID: 7191A63F-EF67-4C76-841F-438164644717 4/21/2021
4/21/2021
4/21/2021
4/23/2021
1101
Resolution 2022-XXX May 3, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
May 3, 2022
Authorizing the Single Room Occupancy (SRO) program fee exemption for Tahoe Coalition for the Homeless (TCH)

BACKGROUND
A. The City is entitled to collect SRO program fees to regulate hotels that provide affordable housing rental options for low-income persons.

B. The City and TCH entered into a Memorandum of Understanding (MOU) in September 2020 and an Operating Agreement in May 2021 to memorialize the partnership and to ensure coordination in the operation, wraparound services, rehabilitation, and maintenance of the three properties purchased through the support of Project Homekey which include: 2250 Lake Tahoe Blvd. (Bears Den), 2215 Lake Tahoe Blvd. (The Bird’s Nest), and 1137 Emerald Bay Road, (Red Lodge).

C. TCH currently owes the City a total of $5,863.68 in outstanding fees, penalties and interest and an annual amount of $5,452.00 for the SRO program fee.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Authorizes and directs the Finance Director to waive $5,863.68 in outstanding fees and interest for late submittal of the SRO program fee;

2. Authorizes and directs the Finance Director to exempt TCH from the annual SRO program fees for the three properties in an annual amount of $5,452.00 while the City and TCH maintain the MOU and Operating Agreement and TCH continues to provide on-site supportive services to clients.

Adopted by the City of South Lake Tahoe City Council on May 3, 2022 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Devin Middlebrook, Mayor
1102
Resolution 2022-XXX May 3, 2022 Page 2 of 2
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
1103
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 22
Agenda Item: Memorandum of Understanding with Lake Tahoe Historical Society for Improvements to the Al Tahoe Pioneer Cemetery
Executive Summary: City staff have been working with members of the Lake Tahoe Historical Society (LTHS), Daughters of the American Revolution Lake Tahoe Chapter (DAR) and Kiwanis Club of Tahoe Sierra to form a strategy to rehabilitate the Al Tahoe Pioneer Historic Cemetery for the purpose of preserving and protecting the historical site. Representatives of each group have formed a sub-committee under the Lake Tahoe Historical Society called “The Al Tahoe Pioneer Cemetery Improvement Committee” (ATPCIC). The ATPCIC has met with City staff to identify and prioritize a list of projects for the City to consider for improvements once funding becomes available. The purpose of this MOU is to establish the overarching arrangement by which the City and ATPCIC will facilitate information sharing, establish responsibilities and demonstrate a commitment to collaborate, restore and maintain the historic cemetery. The MOU will provide ATPCIC the ability to solicit donations and fundraising in coordination with the City for the specific purpose of financing the remaining identified improvements on City owned lots of the cemetery. The MOU will remain in effect until the site improvements identified in the staff report and previously presented to City Council have been completed.

Requested Action / Suggested Motions: Pass a Motion authorizing the Mayor to Execute a Memorandum of Understanding with the Lake Tahoe Historical Society for Improvements to the Al Tahoe Pioneer Cemetery.

Responsible Staff Members: Lauren Thomaselli, Parks and Recreation Director and Faye-Marie Pekar, Engineering Technician, Public Works
Responsible Staff Member: Lauren Thomaselli, Parks and Recreation Director 530-542-6197 Faye-Marie Pekar, Engineering Technician, Public Works Dept 530-542-6070 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Al Tahoe Cemetery.docx
02-MOU - Al Tahoe Pioneer Cemetery.pdf
03-Property Profile.pdf
1104
Council Agenda Report- May 3, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Memorandum of Understanding with the Lake Tahoe Historical Society Location: Al Tahoe Pioneer Cemetery - 790 Alameda Avenue Responsible Staff Member: Lauren Thomaselli, Director of Parks and Recreation (530) 542-6197
Faye-Marie Pekar, Engineering Technician, Public Works
(530) 542-6070
Background: The Al Tahoe Pioneer Cemetery is believed to be established in the early 19th century. The original Pioneers who resided in the Al Tahoe Subdivision were buried at the site located at 790 Alameda Ave in South Lake Tahoe. Since 1966, there has been minimal improvements or efforts to restore and improve the cemetery other than annual maintenance by volunteers and park staff.

In 2019 representatives from the Lake Tahoe Historical Society (LTHS), Daughters of the American Revolution (DAR), Kiwanis of Tahoe Sierra and California Tahoe Conservancy (CTC) formed an informal Cemetery Improvement Committee. Ownership of the historic cemetery remained unknown until 2019 when the deed was found indicating the Al Tahoe Pioneer Cemetery was deeded to the City of South Lake Tahoe in 1966, shortly after the City’s incorporation.

In February 2020, DAR presented to City Council the need to conduct a Ground Penetration Radar (GPR) survey to identity the location of burials within the cemetery as well as City resources to collaborate in the restoration and maintenance of the cemetery. The Cemetery Improvement Committee began meeting with Public Works staff to discuss ideas to restore and preserve the historic site. The committee and Public Works staff collaboratively identified a list of priority projects to consider for future implementation and funding on the City owned lots of the cemetery.

March 16, 2021, City staff presented an update on the cemetery progress to City Council and proposed site improvements were presented in two phases. Phase 1 proposed improvements to secure the cemetery from vandalism and mistreatment including a new fence, lighting, security cameras and an automatic time lock for the gate for future public access. Phase 2 proposed general site improvements and beautification. In addition, Public Works staff requested City Council provide additional funding for some phase 1 items in the FY 20-21 mid-year budget. In FY 21-22, ongoing annual dedicated maintenance funds were provided in the City Park Maintenance Budget as well as funds to purchase two bear proof trash receptacles for the cemetery. 1105
Council Agenda Report- May 3, 2022 Page 2 of 2
Issue and Discussion: The remaining projects will require additional funding to complete including:
 Repairing broken head stones
 Installing gravestones for 111 “unknown” grave sites
 Large dedication monument
 Planting of native, drought tolerant aesthetic vegetation  Benches
The members of the improvement committee are interested in soliciting funds through a variety of fund-raising events and grant opportunities to complete the projects. The group has since formalized the Al Tahoe Pioneer Cemetery Improvement Committee (ATPCIC) under the Lake Tahoe Historical Society nonprofit organization for the purposes of formalizing an MOU with the City.

Under the proposed MOU, the City staff would be responsible for the ownership and implementation of all improvement projects including annual maintenance of the site. The ATPCIC under the Lake Tahoe Historical Society would serve in an advisory role with respect to proposed projects and conduct fundraising activities to support the implementation of the proposed projects identified above.

Financial Implications: Entering into the MOU with the Lake Tahoe Historical Society does not have any immediate financial implications however it does provide a mechanism for the nonprofit to solicit donations and conduct fundraising events for the specific purpose of completing the proposed improvement projects for the Al Tahoe Pioneer Cemetery.

Environmental Considerations: The proposed action is categorically exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301 (Existing Facilities) because the work done under the MOU would consist of operation, repair, and maintenance or minor alteration of existing public facilities involving negligible or no expansion of existing of former use.

Policy Implications: Entering into an MOU with the Lake Tahoe Historical Society for the purpose of formalizing a collaborative effort to restore, improve, and preserve the Historic Al Tahoe Pioneer Cemetery will enhance the quality of parks opportunities for residents and visitors.

The restored cemetery will provide a historic and cultural asset for visitors and residents to visit and learn about the original pioneers of South Lake Tahoe. 1106
1 MEMORANDUM OF UNDERSTANDING

REGARDING AL TAHOE PIONEER CEMETERY
This Memorandum of Understanding (“MOU”) is entered into May 3, 2022 (“Effective Date”) by and between the City of South Lake Tahoe, a municipal corporation (“City”) and The Lake Tahoe Historical Society, a California non-profit public benefit corporation (“Historical Society”). The parties to this MOU are sometimes referred to as each, a “Party” and collectively, the “Parties.”
WHEREAS, The City owns the Al Tahoe Pioneer Cemetery located within the City limits at 790 Alameda Ave., South Lake Tahoe, CA 96150, APN# 026-065-019-000 , being Lots 2, 3, and 4 of Block 34 of the Al Tahoe Subdivision, as shown on Exhibit “A” (“Property”).

WHEREAS, The Historical Society is a nonprofit public benefit corporation that is tax exempt under Internal Revenue Code Section 501(c)(3) focused on preserving the ongoing heritage of the Lake Tahoe Basin for visitors, community and future generations through public education programs, maintaining museums, collections, scholarly publications and research services; promoting the preservation of historic buildings and sites and partnering with local organizations.

WHEREAS, The Historical Society, along with other nonprofit organizations, have created a committee called the Al Tahoe Pioneer Cemetery Improvement Committee (“ATPCIC”) for the specific purpose to identify, fundraise, and facilitate improvement projects to protect and restore the Property. The Historical Society is the fiscal agent for the ATPCIC.

WHEREAS, The ATPCIC consists of one member and one alternative representative from each of the following community groups: Historical Society, Daughters of the American Revolution, and South Lake Tahoe Chapter, Kiwanis Club of South Lake Tahoe.

WHEREAS, the City and the Historical Society desire to cooperate and collaborate in order to improve and develop the Property.

NOW, THEREFORE, in order to advance their mutual objectives and commence a collaborative process with respect to the improving and maintaining the Property, the City and Historical Society agree as follows:

1. Purpose of MOU. The purpose of this MOU is to establish a general framework for a collaborative working relationship and define the respective roles and responsibilities of the Parties for the maintenance, funding, and operations of the Property.

2. General Relationship of the Parties. The City and Historical Society shall work collaboratively to identify and implement improvements related to the maintenance and preservation of the Property, and/or programs and activities occurring thereon (“Projects”). The City and Historical Society shall also cooperate on public outreach and/or community assessments related to potential Projects on the Property.

3. Responsibilities of Historical Society.

3.1. Advisory Role. Historical Society shall serve as a community advisor to the City with respect to any proposed Projects.

3.2. Fundraising. Historical Society is authorized, but is not obligated to, solicit and raise funds on an initial and ongoing basis to support Projects. Notwithstanding any provision 1107
2 of this MOU to the contrary, any and all funds received by Historical Society (through donations, grants, or otherwise) shall remain the property of and shall be solely under the control of Historical Society, and Historical Society shall retain sole authority over its own operations and decision making, including, without limitation, the extent of its participation in any Project or fundraising activities.

3.3. Volunteers. In cooperation with the City, Historical Society may provide volunteers to carry out the maintenance of the Property, such as seasonal clean-ups, as set forth in this MOU. Such persons shall be managed and supervised by Historical Society, shall be qualified to perform the duties to which they are assigned, shall not be compensated for such services, and shall be required to follow the City’s volunteer policies and sign a volunteer waiver of liability on a form to be provided by the City. Historical Society may not hire or pay for contract services for maintenance or improvements at the Property without the prior consent of the City, and is advised that work on the Property may be subject to state prevailing wage requirements under the California Labor Code.

4. Responsibilities of City.

4.1. Ownership and Maintenance. The City shall be responsible for the ownership, operation, and maintenance of the Property, including, without limitation, the payment of all taxes, utilities and costs incident thereto. Although the City intends to collaborate with Historical Society in good faith regarding any proposed Projects, the City shall retain the authority to approve Projects and maintain and operate the Property in its sole and absolute discretion.

4.2. Access. The City hereby grants Historical Society, and its directors, officers, employees, contractors, subcontractors, consultants, and agents, including ATPCIC, a nonexclusive license to enter upon and use the Property in connection with the relationship contemplated by this MOU.

4.3. Coordination and Communication. The City shall provide a staff person who shall serve as the primary contact for coordination and direction of City obligations under this MOU. Said staff person shall be the City's Parks and Recreation Director unless a different contact person is designated by the City.

5. Limitations Of Liability and Insurance.

5.1. Consequential Damages. Notwithstanding any provision in this MOU to the contrary, the each Party agrees not to assert against the other Party any claim, demand or suit for consequential, incidental, indirect or special damages arising from any aspect of the performance or nonperformance of the activities contemplated under this MOU, and the each Party waives any such claim, demand or suit against the other Party.

5.2. Exclusivity. The provisions of this section constitute each Party’s exclusive liability and each Party’s sole remedy with respect to the activities contemplated by this MOU, and each Party hereby expressly and knowingly releases the other Party from any further liability.

5.3. Historical Society, at its own cost and expense, shall procure and maintain, for the duration of the MOU, the following insurance policies:

5.2.1 Workers’ Compensation Coverage. Historical Society shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California. In addition, Historical Society shall 1108
3 require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation of all Workers’ Compensation policies must be received by City at least thirty (30) days prior to such change. Historical Society shall provide thirty (30) days written notice of nonrenewal of any Workers’ Compensation policies. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Historical Society for City.

5.2.2 Commercial General Liability Coverage. Historical Society shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. Coverage must be made on the standard Occurrence form. Claims-Made forms are not acceptable without prior written consent of City. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of Historical Society. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.

5.2.3 Automobile Liability Coverage. Historical Society shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Historical Society arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.

5.2.4 Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a AM Best’s rating of no less than A:VII and shall be endorsed with the following specific language:

City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insured’s under Historical Society’s General Liability and Automobile Liability policies with respect to liability arising out of this Agreement and/or work performed by or on behalf of the Historical Society, including materials, parts or equipment furnished in connection with such work or operations.

This policy shall be considered primary insurance as respects City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by City, including any self-insured retention City may have, shall be considered excess insurance only and shall not contribute with it.

This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring Historical Society.

The insurer waives all rights of subrogation against City except for Historical Society’s Professional Liability and Employers’ Liability policies, its elected or appointed officers, officials, employees or agents.

Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers.
1109
4 No policies of insurance carried by Historical Society shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail.

5.2.5 Deductibles and Self-Insured Retentions. The Historical Society shall be responsible for all deductibles in all of Historical Society’s insurance policies. The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.

5.2.6 Certificates of Insurance. Historical Society shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein.

Historical Society shall not commence work under this contract until all insurance required under this section has been approved by City as to form, amount and carrier, nor shall Historical Society allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.
6 Notices. Any notice required to be given under this MOU shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: Parks and Recreation Director
City of South Lake Tahoe
1180 Rufus Allen Blvd.

South Lake Tahoe, CA 96150
Provide a copy to: City Attorney
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 300
South Lake Tahoe, CA 96150
If to Historical Society: Lake Tahoe Historical Society Al Tahoe Pioneer Cemetery Improvement Committee
P.O. Box 18501
South Lake Tahoe, CA 96151
7 Assignment. This MOU is personal to Historical Society. As such, Historical Society has no right to assign any part of this MOU, or any part of its obligations under this MOU in whole or in part. Historical Society may not grant concessions in or upon the Property without the prior written approval of the City.
8 Term. The term of this MOU will commence as of the Effective Date and shall continue for five (5) years (“Term”) unless earlier terminated as provided herein or extended by the mutual agreement in writing of City and Historical Society. Notwithstanding the foregoing, this MOU shall terminate upon any of the following: (1) execution by the parties of a subsequent agreement related to Property; or (2) at least thirty (30) days written notice by either Party to the other of such Party’s intent to terminate the MOU.
1110
5 9 No Agency Relationship. The relationship between the City and Historical Society and their respective agents, volunteers, directors, or employees as provided herein shall be that of an independent contractor. No agency, joint powers agreement, or other relationship is created or intended to be created by this MOU.
10 Good Faith. Historical Society and the City shall use their good faith best efforts to do, or cause to be done, all things reasonably necessary or advisable to carry out the terms and conditions of this MOU.
11 Waiver. Waiver of a breach or default under this MOU shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this MOU. 12 Controlling Law; Venue. This MOU and all matters relating to it shall be governed by the laws of the State of California. Any action brought relating to this MOU shall be held exclusively in the Superior Courts in the County of El Dorado, South Lake Tahoe Division. 13 Amendments. This MOU may be modified or amended only by a written document executed by both ATPCIP and the City and approved as to form by the City Attorney. 14 Severability. If any term or portion of this MOU is held to be invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this MOU shall continue in full force and effect.
15 Counterparts. This MOU may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original for all purposes, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties have caused this Memorandum of Understanding to be executed as of the May 3, 2022.

Lake Tahoe Historical Society:
_______________________
By:

City of South Lake Tahoe Attest:
_______________________ _______________________
City of South Lake Tahoe By: Susan Blankenship, City Clerk By: Devin Middlebrook, Mayor
APPROVED AS TO FORM:
_______________________
By: Heather Stroud, City Attorney
1111

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##$

EXHIBIT A
1112
Subject Property
790 Alameda Ave
South Lake Tahoe
CA 96150
APN: 026-065-019-000
Prepared For:

Data Provided By:

Jim Stahl
South Lake Tahoe
Old Republic Title Company
© 2019 CoreLogic. All rights reserved
1113
Data Provided By:

Jim Stahl
South Lake Tahoe
Disclaimer
This REiSource report is provided "as is" without warranty of any kind, either express or implied, including without limitations any warrantees of merchantability or fitness for a particular purpose.

There is no representation of warranty that this information is complete or free from error, and the provider does not assume, and expressly disclaims, any liability to any person or entity for loss or damage caused by errors or omissions in this REiSource report without a title insurance policy.

The information contained in the REiSource report is delivered from your Title Company, who reminds you that you have the right as a consumer to compare fees and serviced levels for Title, Escrow, and all other services associated with property ownership, and to select providers accordingly. Your home is the largest investment you will make in your lifetime and you should demand the very best.

Old Republic Title Company
© 2019 CoreLogic. All rights reserved 1114
Old Republic Title Company Prepared On : 11/08/2019
© 2019 CoreLogic. All rights reserved
Subject Property : 790 Alameda Ave South Lake Tahoe CA 96150 Owner Information
Owner Name : South Lake Tahoe City
Mailing Address : 1052 Tata Ln, South Lake Tahoe CA 96150-6251 Vesting Codes : / / Corporation
Location Information
Legal Description : L 2 3 4 B 34
County : El Dorado, Ca APN : 026-065-019-000
Census Tract / Block : 303.02 / 2 Subdivision : Al Tahoe Legal Lot : 2 School District : Lake Tahoe
Legal Block : 34
Last Market Sale Information
Recording/Sale Date : 05/18/1972 Deed Type : Deed (reg) Document # : 1123-362
Seller Name : Owner Record
Property Information
Land Use : Vacant Land
(nec)
Zoning : HDR Lot Size : 14,810
County Use : Non-resid
Improved To 2.5
Ac
Lot Acres : 0.34
Tax Information
Assessed Year : 2019 Tax Rate Area : 002002 Water Tax : EL DORADO CO 1115
Old Republic Title Company Prepared On : 11/08/2019
© 2019 CoreLogic. All rights reserved
1116
Old Republic Title Company Prepared On : 11/08/2019
© 2019 CoreLogic. All rights reserved
No transaction history data for selected property.
1117
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 23
Agenda Item: Resolution of Intention to Modify South Lake Tahoe Tourism Improvement District Management Plan
Executive Summary: The South Lake Tahoe Tourism Improvement District (SLTTID) was established in 2006 to assess lodging properties to fund tourism marketing and benefit the lodging properties being assessed by increasing room night sales. The SLTTID is required by state law to have a management district plan that includes certain elements including a map of the district and the amount of the assessment to be levied on businesses in the district. While not required, the SLTTID management district plan also includes a statement that the SLTTID Board of Directors shall have five Directors. On April 12, 2022, the SLTTID sent a letter to the City to request that its management district plan be modified to increase the number of Directors to nine, for consistency with a recent vote of the Board of Directors to amend the SLTTID bylaws. This resolution of intention to modify the management district plan is consistent with the procedure set forth in Section 36635 of the Streets and Highways Code.

Requested Action / Suggested Motions: Pass a Resolution Declaring Intention to Modify South Lake Tahoe Tourism Improvement District Management District Plan and Fixing Time and Place of Public Hearing.

Responsible Staff Member: Heather Stroud, City Attorney Responsible Staff Member: Heather Stroud, City Attorney (530) 542-6046 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Finance Director
Attachments:
01 - Staff Report for Resolution of Intention.docx
02 - Resolution of Intention.docx
03 - Letter from SLTTID Requesting Modification.docx
04 - Redline of Requested Modifications to SLTTID Management District Plan.pdf 05 - SLTTID Revised Bylaws.pdf
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Council Agenda Report- May 3, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Resolution of Intention to Modify South Lake Tahoe Tourism Improvement District Management Plan
Location: Citywide
Responsible Staff Member: Heather Stroud, City Attorney (530) 542-6046 Background: The South Lake Tahoe Tourism Improvement District (SLTTID) was established in 2006 by City Council Resolution No. 2006-52 to levy assessments on lodging businesses within the City “to pay for marketing and promotions to increase tourism and market the South Shore of Lake Tahoe as a unique, world-class year-round resort destination.” The City Council has renewed the SLTTID several times since then, most recently on August 6, 2019. The current SLTTID extension term of 10 years ends on December 18, 2029.

The SLTTID is required by Section 36622 of the Streets and Highways Code to have a management district plan that includes certain elements such as a map of the district, the improvements, maintenance, and activities proposed for the district and the maximum annual cost thereof, the amount of the assessment to be levied on businesses in the district, the time and manner of collecting the assessments, and any proposed rules and regulations applicable to the district.

Issue and Discussion: In addition to the elements required to be included in the management district plan, the SLTTID management district plan includes a statement that “The SLTTID Board of Directors shall have five (5) Directors who are lodging owners or representatives.” The SLTTID recently voted to change its bylaws to increase the Board of Directors from five to nine directors.

Subsequently, on April 12, 2022, the SLTTID sent a letter to the City requesting that City Council modify the management district plan pursuant to Section 36635 of the Streets and Highways Code to ensure consistency between the SLTTID’s bylaws and its management district plan.

Under Section 36635, upon written request from the SLTTID, the City Council may modify the management district plan after conducting a public hearing on the proposed modifications. The resolution of intention will be considered at this meeting, and the public hearing is proposed to be fixed for the City Council meeting on May 17, 2022 at 5:30pm.

Financial Implications: None.

Environmental Considerations: This action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b) because it 1119
Council Agenda Report- May 3, 2022 Page 2 of 2
is an administrative activity that will not result in direct or indirect physical changes in the environment.

Policy Implications: None.
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Resolution 2022-XXX May 3, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
May 3, 2022
Declaring Intention to Modify South Lake Tahoe Tourism Improvement District Management District Plan and Fixing Time and Place of Public Hearing

BACKGROUND
A. The Property and Business Improvement District Law of 1994, California Streets and Highways Code section 36600, et seq., authorizes cities to establish and renew business improvement areas for the purpose of promoting tourism.

B. In 2006, the City Council of the City of South Lake Tahoe established the South Lake Tahoe Tourism Improvement District (SLTTID) by adopting Resolution No. 2006-52.

C. On August 6, 2019, the City Council renewed the SLTTID for a period of ten years ending on December 18, 2029 by adopting Resolution No. 2019-059.

D. The SLTTID is required by Section 36622 of the Streets and Highways Code to have a management district plan that includes certain elements such as a map of the district, the improvements, maintenance, and activities proposed for the district and the maximum annual cost thereof, the amount of the assessment to be levied on businesses in the district, the time and manner of collecting the assessments, and any proposed rules and regulations applicable to the district.

E. The SLTTID’s management district plan, in addition to the required elements, includes a statement that “The SLTTID Board of Directors shall have five (5) Directors who are lodging owners or representatives.”
F. The SLTTID Board of Directors recently voted to change its bylaws to increase the Board of Directors from five to nine directors. Subsequently, the SLTTID requested in writing that the City Council modify the management district plan pursuant to Section 36635 of the Streets and Highways Code to ensure consistency between the SLTTID’s bylaws and its management district plan.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Declares its intention to make the modification requested by the SLTTID to the management district plan after holding a public hearing on the proposed modification. 1121
Resolution 2022-XXX May 3, 2022 Page 2 of 2

2. Finds that the SLTTID management district plan, as proposed to be modified, satisfies the requirements of Streets and Highways Code section 36622.

3. Fixes the time and place for the public hearing on the requested modification to the SLTTID management district plan for May 17, 2022, at 5:30pm, or as soon thereafter as the matter may be heard, at the City Council chambers located at 1901 Lisa Maloff Way, South Lake Tahoe, California, 96150.

Adopted by the City of South Lake Tahoe City Council on May 3, 2022 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Devin Middlebrook, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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April 12, 2022
Honorable Mayor and Councilmembers
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 206
South Lake Tahoe, CA 96150
Re: South Lake Tahoe Tourism Improvement District Modification Request Honorable Mayor and Councilmembers:

As the South Lake Tahoe Tourism Improvement District (SLTTID) Owners’ Association, the South Lake Tahoe Tourism District Corporation (Corporation) hereby requests modification of the SLTTID Management District Plan, pursuant to Streets and Highways Code §36635.

Specifically, we are requesting a modification to the current Management District Plan to increase the authorized number of Directors on the Board of the Corporation from five (5) to nine (9).

The requested modification will not increase the budget, assessment nor modify the term of the SLTTID.

We ask that you consider this item at the City Council meeting on May 3, 2022. It is our understanding that a public hearing will also be necessary to complete the modification; we ask that you set the public hearing for May 17, 2022.

Should you have any questions regarding the SLTTID or the modification, please feel free to contact me directly at [email protected] or (530) 543-6532.

Best Regards,
Mr. Jerry Bindel
South Lake Tahoe Tourism District Corporation
1123
2019-2029

SOUTH LAKE TAHOE

TOURISM IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
March 26,
2019April 11, 2022
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
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CONTENTS
I. OVERVIEW ........................................................................................................................................3 II. BACKGROUND ................................................................................................................................4 III. ACCOMPLISHMENTS.....................................................................................................................5 IV. BOUNDARY.......................................................................................................................................7 V. BUDGET AND SERVICES.............................................................................................................8 A. Annual Service Plan............................................................................................................ 8 B. Annual Budget .................................................................................................................. 10 C. California Constitutional Compliance .............................................................................. 12 D. Assessment........................................................................................................................ 13 E. Penalties and Interest ........................................................................................................ 14 F. Time and Manner for Collecting Assessments................................................................. 15 VI. GOVERNANCE...............................................................................................................................16 A. Owners’ Association......................................................................................................... 16 B. Brown Act and California Public Records Act Compliance ............................................ 16 C. Annual Report................................................................................................................... 16 APPENDIX 1 – LAW....................................................................................................................................17 APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................28 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
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I. OVERVIEW
Developed by South Lake Tahoe Tourism District Corporation (“SLTTDC”), the South Lake Tahoe Tourism Improvement District (SLTTID) is an assessment district proposed to continue providing specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses.

This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors.

Location: The renewed SLTTID includes all lodging businesses located within the boundaries of the City of South Lake Tahoe, as shown on the map in Section IV.

Services: The SLTTID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.

Budget: The total SLTTID annual budget for the initial year of its ten (10) year operation is anticipated to be approximately $2,705,000.

Cost: The annual assessment rates are $3.00 per paid occupied room per night on hotels and motels and $4.50 per paid occupied unit per night on all of the following under management contracts: timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days. The assessment rate will automatically increase in year two (2020-21) by one dollar ($1.00) on both assessment rates. The new rates in 2020-21 will be $4.00 per paid occupied room per night on hotels and motels and $5.50 per paid occupied unit per night on all of the following under management contracts: timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes.

Starting in the fifth year (2023-24), the assessment rate for hotels and motels and all of the following under management contracts: timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes, may be increased by one additional dollar ($1.00) during the remaining term of the SLTTID, as described in Section V.

Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SLTTID. The City shall take all reasonable efforts to collect the assessments from each lodging business.

Duration: The renewed SLTTID will have a ten (10) year life, beginning December 18, 2019 through December 17, 2029. Once per year, beginning on the anniversary of SLTTID renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on SLTTID termination.

Management: The South Lake Tahoe Tourism District Corporation will continue to serve as the SLTTID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.
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II. BACKGROUND
TIDs are an evolution of the traditional Business Improvement District. The first TID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TIDs without a state law.

California’s TIDs collectively
raise over $275 million annually
for local destination marketing.

With competitors raising their
budgets, and increasing rivalry
for visitor dollars, it is important
that South Lake Tahoe lodging
businesses continue to invest in
stable, lodging-specific
marketing programs.

TIDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TIDs allow
lodging business owners to
organize their efforts to increase
room night sales. Lodging
business owners within the TID pay an assessment and those funds are used to provide services that increase room night sales.

In California, TIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. 1 2 4 6 9 12
19 24
28 31
37 45
60 63
72 80
88 95 98101
105
0 20
40 60
80 100
198919952000200120022003200420052006200720082009201020112012201320142015201620172018 Number of Districts Operating in California
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April 11March 26, 202219
III. ACCOMPLISHMENTS
 TOT collection increase (source City of South Lake Tahoe TOT Reports) • 2017/18 $17,418,178 vs 2009/10 $8,200,466
 Occupancy increase (source Smith Travel Report December YTD – South Lake Tahoe reporting)
• 2018 57% vs 2009 40.9%
 ADR increase (source Smith Travel Report December YTD – South Lake Tahoe reporting) • 2018 $139.67 vs 2009 $104.10
 Branding/Advertising (2009-19)
• Rebranded destination and established advertising campaign focused on brand attributes and differentiation from competitive set.
• Expanded from a Summer-only campaign into year-round advertising with Winter and Spring as well.
• Gradually shifted emphasis from Northern California to fly markets, including San Diego, Los Angeles, and most recently New York and Seattle, to drive longer stays and increase spend.
• The 2010 budget was $750,000 which drove 17 million impressions. 2018 campaigns had a budget of $1,350,000 and delivered over 130 million impressions.  Website Stats (source Google Analytics)
• FY18 TahoeSouth.com
o Total website visits 2,408,269
o Unique visitors 1,849,821
o Referrals to South Shore Lodging 175,341
• FY09 BlueLakeTahoe.com
o Total website visits 767,839
o Unique visitors 604,167
o Referrals to South Shore Lodging 151,225
 Social Media
• Facebook - Visit Lake Tahoe South boasts over 144,000 fans • Twitter - @TahoeSouth currently has 11,600 followers
• Instagram - @TahoeSouth has over 44,000 followers
 American Century Celebrity Golf Championship Attendance (source Milthorpe Sports LLC)
• 2018 57,097 vs 2009 37,205
 American Century Celebrity Golf Championship Earned Media (source Weidinger PR) o 2018 $86 million vs 2009 $5 million
• Circulation/viewers/listeners
o 2018 2.5 billion vs 2009 300 million
.
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April 11March 26, 202219
 July 4th Fireworks Annual Event
• 2013 lawsuit filed against the LTVA which threatened the future of the event • 2014 successfully negotiated a compromise and this important community event continues
 Heavenly Holidays Annual Event (2010-2018)
• 2018: November 23 - December 31, daily events in the Heavenly Village • NYE concerts & fireworks attracting approximately 10,000 people • Village shops reported record revenue for December (source Gary Casteel) • 2010: One-week event between Christmas and New Year
 SnowGlobe Annual Event (2011-2018)
• 2018 estimated attendance: 60,000 over three days, December 29-31  Amgen Tour of California (2011 & 2015-2018) Earned Media (source AEG Sports) o 2018 $4.9 million vs 2015 $650,000
• Audience/Impressions
o 2018 100 million vs 2015 16.7 million
 Golf Media Tour Earned Media (source Weidinger PR)
o 2018 $76 million vs 2009 $1.9 million
• Circulation
o 2018 176 million vs 2009 70.3 million
 Operation Sierra Storm (2013-2018) Earned Media (source Weidinger PR) o 2018 $2.75 million vs 2013 $212,000
• Audience/Impressions
o 2018 124 million vs 2013 14.3 million
 International Representation Offices
• 2009 - Two offices - United Kingdom & Australia
• 2019 - Five Offices - United Kingdom, Australia, Germany, China (Shanghai) & China (Beijing)
 International Focus Markets
• 2009 - United Kingdom & Australia
• 2019 - United Kingdom, Australia, Germany, France, China, South Korea, Japan & India.
 Secured & Hosted Mountain Travel Symposium 2018
• 1,100 delegates representing 24 countries
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IV. BOUNDARY
The SLTTID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of City of South Lake Tahoe.

Lodging business means: hotels, motels, and all of the following under management contracts:
timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes.

The boundary, as shown in the map below, currently includes 118 lodging businesses. A complete listing of lodging businesses within the renewed SLTTID can be found in Appendix 2. 1130
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April 11March 26, 202219
V. BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the SLTTID funds are sales and marketing programs available only to assessed businesses.

A service plan budget has been developed to deliver services that benefit the assessed businesses. A detailed annual budget will be developed and approved by the SLTTDC. The table below illustrates the initial annual budget allocations. The total initial budget is $2,705,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the SLTTDC board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year.

A description of the proposed improvements and activities for the initial year of operation is below.

The same activities are proposed for subsequent years. In the event of a legal challenge against the SLTTID, any and all assessment funds may be used for the costs of defending the SLTTID.

Each budget category includes all costs related to providing that service, in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget.

The costs of an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the SLTTDC on an as- needed basis.

Marketing, Sales,
Advertising &
Promotions,
$1,704,150 , 63%
Special Events,
$351,650 , 13%
Visitor Information
Services, $135,250 ,
5%
Communications &
Public Relations,
$108,200 , 4%
Administration &
Operations,
$243,450 , 9%
Contingency /
Reserve, $135,250 ,
5%
City Administrative
Fee, $27,050 , 1%
Initial Annual Budget - $2,705,000
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SLTTID Management District Plan 9
April 11March 26, 202219
Marketing, Sales, Advertising & Promotions
Marketing and promotions will include media advertising and promotional programs designed to attract visitors to visit and stay at the South Shore lodging establishments as well as promote the area as a lodging and conference destination. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities:
• Location and exposure in the Lake Tahoe Visitors Authority (LTVA) Visitor Centers. Each TID lodging business will have the opportunity to have brochure placement in the Visitor Center;
• Listing on the LTVA website with a direct link to the lodging property website. The website may provide an opportunity for photos of each lodging business to be placed next to their listing;
• Opportunity to participate in co-op advertising programs such as the California travel planner;
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Brand marketing efforts to increase awareness and drive overnight visitation; • Advertising targeted at potential visitors to drive overnight visitation and room sales to assessed lodging businesses;
• Attendance at trade shows and industry conferences to promote assessed lodging businesses; • Lead generation activities designed to attract tourists and group events to assessed lodging businesses;
• Maintenance and updates of a website featuring assessed lodging businesses; • Meetings to plan and coordinate tourism promotion efforts for assessed lodging businesses; • Data analysis on effectiveness of SLTTID funds to improve effectiveness and increase overnight visitation at assessed businesses.

Special Event Funding
Special event funding shall be administered through the application and approval policies of the Lake Tahoe Visitors Authority marketing committee and Board of Directors. Special events being funded and approved by the Lake Tahoe Visitors Authority must include a detailed plan for generation of room nights and general commerce for the South Shore of Lake Tahoe, and must also include a follow-up analysis.

Visitor Information Services
The visitor services enhancement program will provide funding for programs and initiatives based on criteria to be developed by the SLTTID. The focus of the visitor services enhancement program will be on the entire destination brand footprint to ensure a consistent brand experience throughout the destination.

Communications & Public Relations
The communications and public relations program will promote assessed lodging businesses as tourist, meeting, and event destinations. The communications and public relations program will have a central theme of promoting the destination as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses. The program will include the development and implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to increase overnight visitation at assessed businesses
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Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees.

City Administration Fee
The City of South Lake Tahoe shall be paid a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.

Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the SLTTDC Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the SLTTDC Board. Contingency/reserve funds may be spent on District programs or administrative and renewal costs in such proportions as determined by the SLTTDC Board. The reserve fund may be used for the costs of renewing the SLTTID.

B. Annual Budget
The total ten (10) year improvement and service plan budget is projected at approximately $2,705,000 annually, or $43,665,140 through 2029 if the maximum assessment rate increases are adopted. This amount may fluctuate as occupancy rates change at assessed businesses, but is not expected to change significantly over the term.

The initial annual assessment rates are $3.00 per paid occupied room per night on hotels and motels and $4.50 per paid occupied unit per night on all of the following under management contracts:
timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes. The assessment rate may be subject to two (2), one dollar ($1.00) increases during the term of the district; by one dollar ($1.00) in the second year (2020-21) and up to one dollar ($1.00) starting the fifth year (2023-24).

The assessment rate increase in the second year (2020-21) will automatically raise the rates by one dollar ($1.00), unless the SLTTDC Board votes not to implement the automatic increase based upon circumstances that they deem significant. If the SLTTDC Board elects to cancel the automatic increase, the only applicable increase will be the discretionary increase beginning in 2023-24. In 2020- 21 the assessment rate will be $4.00 per paid occupied room per night on hotels and motels and $5.50 per paid occupied unit per night on all of the following under management contracts: timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes. Additionally, the assessment rates may be increased by an additional dollar starting in the fifth year (2023-24) at the discretion of the SLTTDC Board. If the maximum assessment rate increases are adopted, the maximum assessment rate for the District will be $5.00 per paid occupied room per night on hotels and motels and $6.50 per paid occupied unit per night on all of the following under management contracts: timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes. The maximum assessment rates are demonstrated in the table below:
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Assessment Rate Category
Initial
Assessment
Rate
Increased
Assessment Rate
(Automatic,
2020-21)
Maximum
Assessment Rate
(Discretionary,
2023-24)
Hotels and Motels $3.00 $4.00 $5.00
All of the following under management contracts:
timeshares, condos, triplexes, duplexes, park model
cabins, RVs and homes.
$4.50 $5.50 $6.50
The discretionary assessment rate may or may not increase starting in 2023-24, the increase may be implemented beginning in 2023-24 or in later years at the discretion of SLTTDC’s Board. Additionally, the assessment rate increase in any given year after 2023-24 may be an amount less than one dollar ($1.00). For example, in 2024-25 the assessment rate could be increased by twenty-five cents ($0.25) and in 2025-26 the assessment rate could be increased by another twenty-five cent ($0.25), etc.

However, the total amount of increases after 2023-24 shall not exceed one dollar ($1.00).

The following table demonstrates the estimated maximum budget, based on existing lodging businesses, with the assumption that the assessment rate will automatically increase by one dollar ($1.00) in 2020-21 and will be increased by one dollar ($1.00) in 2023-24, as it is a required disclosure, it is not the anticipated course of action. Additionally, a two percent (2%) annual increase in the total budget is shown in both tables, to account for estimated increased room occupancy as a result of SLTTID efforts. This two percent (2%) annual increase is a conservative estimate based on the effects of similarly sized TID budgets.

Estimated 2019-2029 Annual Budget If Maximum Assessment Rates Are Adopted Year Marketing Special
Events
Visitor Info
Services Communications Admin Contingency/
Reserve
City
Admin
Fee
Total
2019-20 $1,704,150 $351,650 $135,250 $108,200 $243,450 $135,250 $27,050 $2,705,000 2020-21 $2,275,663 $469,581 $180,608 $144,487 $325,095 $180,608 $36,122 $3,612,164 2021-22 $2,321,177 $478,973 $184,220 $147,376 $331,597 $184,220 $36,844 $3,684,407 2022-23 $2,367,600 $488,552 $187,905 $150,324 $338,229 $187,905 $37,581 $3,758,095 2023-24 $2,986,697 $616,303 $237,039 $189,632 $426,671 $237,039 $47,408 $4,740,789 2024-25 $3,046,431 $628,629 $241,780 $193,424 $435,204 $241,780 $48,356 $4,835,605 2025-26 $3,107,360 $641,201 $246,616 $197,293 $443,909 $246,616 $49,323 $4,932,317 2026-27 $3,169,507 $654,025 $251,548 $201,239 $452,787 $251,548 $50,310 $5,030,964 2027-28 $3,232,897 $667,106 $256,579 $205,263 $461,842 $256,579 $51,316 $5,131,583 2028-29 $3,297,555 $680,448 $261,711 $209,369 $471,079 $261,711 $52,342 $5,234,215 Total $27,509,038 $5,676,468 $2,183,257 $1,746,606 $3,929,863 $2,183,257 $436,651 $43,665,140 The table below demonstrates the estimated maximum budget with the assumption that the rates will be increased in the second year but will not be increased further. Additionally, a two percent (2%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result of SLTTID efforts.
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Estimated 2019-2029 Annual Budget If Maximum Assessment Rates Are Not Adopted Year Marketing Special
Events
Visitor Info
Services Communications Admin Contingency/
Reserve
City
Admin
Fee
Total
2019-20 $1,704,150 $351,650 $135,250 $108,200 $243,450 $135,250 $27,050 $2,705,000 2020-21 $2,275,663 $469,581 $180,608 $144,487 $325,095 $180,608 $36,122 $3,612,164 2021-22 $2,321,177 $478,973 $184,220 $147,376 $331,597 $184,220 $36,844 $3,684,407 2022-23 $2,367,600 $488,552 $187,905 $150,324 $338,229 $187,905 $37,581 $3,758,095 2023-24 $2,414,952 $498,323 $191,663 $153,330 $344,993 $191,663 $38,333 $3,833,257 2024-25 $2,463,251 $508,290 $195,496 $156,397 $351,893 $195,496 $39,099 $3,909,923 2025-26 $2,512,516 $518,456 $199,406 $159,525 $358,931 $199,406 $39,881 $3,988,121 2026-27 $2,562,767 $528,825 $203,394 $162,715 $366,110 $203,394 $40,679 $4,067,883 2027-28 $2,614,022 $539,401 $207,462 $165,970 $373,432 $207,462 $41,492 $4,149,241 2028-29 $2,666,302 $550,189 $211,611 $169,289 $380,900 $211,611 $42,322 $4,232,226 Total $23,902,400 $4,932,241 $1,897,016 $1,517,613 $3,414,629 $1,897,016 $379,403 $37,940,318 C. California Constitutional Compliance
The SLTTID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the SLTTID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the SLTTID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the SLTTID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the SLTTID, and are narrowly tailored. SLTTID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in SLTTID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.

The assessment imposed by this SLTTID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1) 1135
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marketing and sales programs promoting lodging businesses paying the SLTTID assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses.

Although the SLTTID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the SLTTID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
SLTTID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the SLTTDC, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from SLTTIDfunded activities, be featured in advertising campaigns, and benefit from other SLTTID-funded services. Non-assessed lodging businesses will not receive these, nor any other, SLTTID-funded services and benefits.

The SLTTID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-SLTTID funds. SLTTID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The annual assessment rates are $3.00 per paid occupied room per night on hotels and motels and $4.50 per paid occupied unit per night on all of the following under management contracts: timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days. 3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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The assessment rate may be subject to two (2), one dollar ($1.00) increases during the term of the district; by one dollar ($1.00) in the second year (2020-21) and up to one dollar ($1.00) starting the fifth year (2023-24). The assessment rate increase in the second year (2020-21) will automatically raise the rates by one dollar ($1.00), unless the SLTTDC Board votes not to implement the automatic increase based upon circumstances that they deem significant. If the SLTTDC Board elects to cancel the automatic increase, the only applicable increase will be the discretionary increase beginning in 2023-24. In 2020-21 the assessment rate will be $4.00 per paid occupied room per night on hotels and motels and $5.50 per paid occupied unit per night on all of the following under management contracts: timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes. Additionally, the assessment rates may be increased by an additional dollar starting in the fifth year (2023-24) at the discretion of the SLTTDC Board. If the maximum assessment rate increases are adopted, the maximum assessment rate for the District will be $5.00 per paid occupied room per night on hotels and motels and $6.50 per paid occupied unit per night on all of the following under management contracts: timeshares, condos, triplexes, duplexes, park model cabins, RVs and homes.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the SLTTID assessment is identified separately it shall be disclosed as the “SLTTID Assessment.” As an alternative, the disclosure may include the amount of the SLTTID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Penalties and Interest
The SLTTID shall reimburse the City of South Lake Tahoe for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent SLTTID assessment are sought to be recovered in the same collection action by the City, the SLTTID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency
Any lodging business who fails to remit any assessment imposed by this chapter within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment, in addition to the amount of the tax.

2. Continued Delinquency
Any lodging business who fails to remit any delinquent assessment on or before a period of thirty (30) days following the date on which the assessment first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment, in addition to the amount of assessment and the ten percent (10%) penalty first imposed.

3. Fraud
If the assessment collector determines that the nonpayment of any assessment due under this article is due to fraud, a penalty of twenty five percent (25%) of the amount of assessment shall be added thereto in addition to the penalties stated in subsections (1) and (2) of this section.
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4. Interest
In addition to the penalties imposed, any lodging business who fails to remit any assessment imposed by this article shall pay interest at the rate of one and one-half (1.5%) percent per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the assessment first became delinquent until paid.

5. Penalties Merged with Tax
Every penalty imposed and such interest as accrued under the provisions of this section shall become a part of the assessment required to be paid.

F. Time and Manner for Collecting Assessments
The SLTTID assessment will be implemented beginning December 18, 2019 and will continue for ten (10) years through December 17, 2029. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association. 1138
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VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SLTTID as defined in Streets and Highways Code §36612. The City Council has determined that South Lake Tahoe Tourism District Corporation will serve as the Owners’ Association for the SLTTID.

The SLTTID Board of Directors shall have ninefive (95) Directors who are lodging business owners or representatives. The currently acting Directors and Officers of the SLTTID shall continue to act in their respective capacities. Yearly elections for a portion of the Board of Directors shall be held pursuant to the provisions of the Bylaws of the South Lake Tahoe Tourism District Corporation.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the SLTTDC Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
The SLTTDC shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT *** (ALL 2017 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businessesin a business district are not taxesfor the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the 1140
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incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessmentsthey may levy and the proper determination of special benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”

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“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”

“Property” means real property situated within a district. 1142
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36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”

“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council

A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board 1143
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of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
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(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 1145
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50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
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36626. Resolution establishing district

If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may 1147
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classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) 1148
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or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

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(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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APPENDIX 2 – ASSESSED BUSINESSES
Lodging
Type
Business
ID Business Name Address
Hotel/Motel 320927 3 Peaks Resort & Beach Club 931 Park Ave, South Lake Tahoe, CA 96150 Hotel/Motel 008394 7 Seas Inn at Tahoe 4145 Manzanita Ave, South Lake Tahoe, CA 96150 Hotel/Motel 009618 A&A Lake Tahoe Inn 3520 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 008058 Aerie Lodge 1184 Emerald Bay Rd, South Lake Tahoe, CA 96150 Hotel/Motel 305015 Alder Inn Motel 1072 Ski Run Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 319123 All Season Cottages 4131 Manzanita Ave, South Lake Tahoe, CA 96150 Hotel/Motel 317374 Alpenrose Inn 4074 Pine Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 003906 Alpine Inn & Spa 920 Stateline Ave, South Lake Tahoe, CA 96150 Hotel/Motel 201239 Americana Vacation Club 3845 Pioneer Trail, South Lake Tahoe, CA 96150 Hotel/Motel 009285 Americas Best Value Inn 4107 Pine Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 007435 Apartments at 947 Poplar 947 Poplar St, South Lake Tahoe, CA 96150 Hotel/Motel 001101 Apex Inn 1171 Emerald Bay Rd, South Lake Tahoe, CA 96150 Hotel/Motel 009041 Avalon Lodge 4075 Manzanita Ave, South Lake Tahoe, CA 96150 Hotel/Motel 005546 Basecamp Hotel 4143 Cedar Ave., South Lake Tahoe, CA 96150 Hotel/Motel 005626 Beach Retreat & Lodge at
Tahoe 3411 Lake Tahoe Blvd, South Lake Tahoe, CA 96150
Hotel/Motel 304855 Beachcomber Inn 999 Lakeview Ave, South Lake Tahoe, CA 96150 Hotel/Motel 010140 Bear's Den Inn 2250 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 002864 Best Choice Motel 954 Park Ave, South Lake Tahoe, CA 96150 Hotel/Motel 306623 Best Western Station House
Inn 901 Park Ave, South Lake Tahoe, CA 96150
Hotel/Motel 000607 Beverly Lodge 3480 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 002800 Big Pines Mountain House 4083 Cedar Ave, South Lake Tahoe, CA 96150 Hotel/Motel 009445 Black Bear Inn 1202 Ski Run Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 305398 Black Jack Motel 985 Park Ave, South Lake Tahoe, CA 96150 Hotel/Motel 005280 Blue Jay Lodge 4133 Cedar Ave, South Lake Tahoe, CA 96150 Hotel/Motel 004300 Blue Lake Inn 944 Friday Ave, South Lake Tahoe, CA 96150 Rental 000262 Buckingham Properties L.T.

LLC
4000 Lake Tahoe Blvd #28, South Lake Tahoe, CA
96150
Hotel/Motel 316832 Budget Inn 3496 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Rental 005946 Calneva Real Estate Inc 2269 James Ave #A, South Lake Tahoe, CA 96150 Rental 006291 Carinas Vacation Home
Services P.O. Box 8741, South Lake Tahoe, CA 96150
Hotel/Motel 008906 Cedar Inn & Suites 890 Stateline Ave, South Lake Tahoe, CA 96150 Rental 003880 CEDAR PINES RESORT 1234 Melba Dr, South Lake Tahoe, CA 96150 Hotel/Motel 007696 Coachman Hotel Operator 4100 Pine Blvd, South Lake Tahoe, CA 96150 Rental 311260 Coldwell Banker/Mckinney 2196 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 009244 Days Inn 3530 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 006383 Deerfield Lodge at Heavenly 1200 Ski Run Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 009736 Diamond Resorts #2 901 Ski Run Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 318130 Diamond Resorts
Mgmt/LTVC 901 Ski Run Blvd, South Lake Tahoe, CA 96150
Hotel/Motel 009430 Econo Lodge Inn and Suites 3860 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 007961 Emerald Bay Lodge 735 Emerald Bay Rd, South Lake Tahoe, CA 96150 Hotel/Motel 009287 Fireside Lodge Bed &
Breakfast 515 Emerald Bay Rd, South Lake Tahoe, CA 96150 Hotel/Motel 206055 Forest Suites Resort One Lake Pkwy, South Lake Tahoe, CA 96150 Rental 010405 Grand Welcome 2264 Lake Tahoe Blvd #3, South Lake Tahoe, CA 96150
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Rental 006841 Heavenly Creek Rental 1894 Talbot Place, South Lake Tahoe, CA 96150 Hotel/Motel 003905 Heavenly Inn 930 Park Ave, South Lake Tahoe, CA 96150 Hotel/Motel 004919 Heavenly Valley Lodge 1261 Ski Run Blvd, South Lake Tahoe, CA 96150 Rental 005911 Heavenly Valley Lodge
Vacation 1261 Ski Run Blvd, South Lake Tahoe, CA 96150
Rental 103894 Heavenly Valley Townhouse
Assoc P.O. Box 17137, South Lake Tahoe, CA 96151
Rental 006188 Heavenly Village Condos LLC 454 Alex Ct, Gardnerville, CA 89460 Hotel/Motel 008711 High Country Lodge 1227 Emerald Bay Rd, South Lake Tahoe, CA 96150 Hotel/Motel 001620 Holiday Inn Express 3961 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 305636 Hotel Azure, fmr Inn by the
Lake 3300 Lake Tahoe Blvd, South Lake Tahoe, CA 96150
Hotel/Motel 008125 Hotel Becket 4003 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 008517 Howard Johnson Inn 3489 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 000259 Interval International 6262 Sunset Dr PH1, Miami, FL 33143 Rental 005262 Invited Home Tahoe LLC 2095 James Ave, South Lake Tahoe, CA 96150 Hotel/Motel 310535 La Bella Motel 3994 Pine Blvd., South Lake Tahoe, CA 96150 Rental 306610 Lake Tahoe Accommodations 2048 Dunlap Drive #4, South Lake Tahoe, CA 96150 Hotel/Motel 005628 Lake Tahoe Ambassador
Lodge 4130 Manzanita Ave, South Lake Tahoe, CA 96150
Rental 005799 Lake Tahoe Liaison PO Box 7489, South Lake Tahoe, CA 96158 Rental 009399 Lake Tahoe Lodging Co
(Zalanta) 3535 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Rental 006936 Lake Tahoe Lodging
Company 4101 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Rental 010742 Lake Tahoe Lodging-Lakeland
Village 3535 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 320075 Lake Tahoe Resort Hotel (fmr
Embassy Suites) 4130 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 005734 Lakeside Gondola Lodge LLC 849 Almar Ave. C300, Santa Cruz, CA 95060 Rental 009873 Lux Villa VR 2896 Orange Ave Suite 230, Signal Hill, CA 90755 Hotel/Motel 010232 Mana Kai Apartments 3930 Pioneer Trail, South Lake Tahoe, CA 96150 Hotel/Motel 321263 Marriot Grand Residence 1001 Heavenly Village Way, South Lake Tahoe, CA 96150
Hotel/Motel 321262 Marriot Timber Lodge 4100 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 009647 Matterhorn Inn 2187 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 006787 Mellow Mountain Hostel 4081 Cedar Ave, South Lake Tahoe, CA 96150 Hotel/Motel 005830 Motel 6 #0250 2375 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 001090 National 9 Inn 3901 Pioneer Trail, South Lake Tahoe, CA 96150 Hotel/Motel 008520 Paradise Motel 953 Park Ave, South Lake Tahoe, CA 96150 Hotel/Motel 317949 Pinewood Inn 3818 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Rental 002248 Pinnacle Lake Tahoe
Getaways 3045 Harrison Ave, South Lake Tahoe, CA 96150
Hotel/Motel 007064 Postmarc Hotel and Spa
Suites 3696 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Rental 003910 PYRAMID PEAK PROPERTIES 1725 Grizzly Mountain, South Lake Tahoe, CA 96150 Rental 009850 Rentlever Inc 1105 Battery St, San Francisco, CA 94111 Hotel/Motel 002352 Resort Rental LLC 9998 N Michigan Rd, Carmel, IN 46032 Rental 006532 RNR Vacation Rentals LP 2494 South Lake Tahoe Blvd., Unit B2 South Lake Tahoe, California - 96150
Hotel/Motel 319714 Rodeway Inn 4127 Pine Blvd, South Lake Tahoe, CA 96150 Rental 321660 Ronan, Patrick - Rental Mgmt 930 Balbijou Rd, South Lake Tahoe, CA 96150 Hotel/Motel 220011 Sail In Motel 861 Lakeview Ave, South Lake Tahoe, CA 96150 1152
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Hotel/Motel 003904 Secrets Inn 924 Park Ave, South Lake Tahoe, CA 96150 Rental 005460 Sierra Sac Property Mngt 5599 Kalispell Way, Sacramento, CA 95835 Rental 004904 Sierra Tahoe Rentals 210 Elks Point Dr, Zephyr Cove, NV 89448 Hotel/Motel 009583 South Shore Inn 3906 Pioneer Trail, South Lake Tahoe, CA 96150 Hotel/Motel 220161 Stardust Vacation Club 4061 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 006329 Stateline Economy Inn and
Suites 966 La Salle St, South Lake Tahoe, CA 96150
Hotel/Motel 007628 Sunray Tahoe Hotel 2659 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 318098 Super 8 3838 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 316362 Tahoe Beach & Ski Club 3601 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 007461 Tahoe Cottage Inn 1220 Emerald Bay Rd, South Lake Tahoe, CA 96150 Rental 005349 Tahoe Destination Vacation
Rentals 752 Patricia Ln, South Lake Tahoe, CA 96150
Hotel/Motel 002276 Tahoe Hacienda Inn 3820 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Rental 314952 Tahoe Keys Resort 599 Tahoe Keys Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 221050 Tahoe Lakeshore Lodge &
Spa 930 Balbijou Rd, South Lake Tahoe, CA 96150
Rental 010048 Tahoe Lifestyle Vacations P.O. Box 7439 Tahoe City, CA 96145 Rental 005585 Tahoe Management Dba
Tamarac 1156 Ski Run Blvd, South Lake Tahoe, CA 96150
Rental 006153 Tahoe Property Managers 1148 Ski Run Blvd, South Lake Tahoe, CA 96150 Rental 319829 Tahoe Rental Connection 2241 James Ave, South Lake Tahoe, CA 96150 Hotel/Motel 309778 Tahoe Seasons Resort 3901 Saddle Rd, South Lake Tahoe, CA 96150 Rental 004618 Tahoe Select Rentals 1802 Jicarilla Dr South Lake Tahoe, CA 96150 Rental 005956 Tahoe South Rentals 753 Tina Ct, Stateline, NV 89449 Hotel/Motel 312726 Tahoe Travel Inn 3536 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 305303 Tahoe Valley Lodge 2241 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 009874 Tally Ho Cottages 4093 Manzanita Ave, South Lake Tahoe, CA 96150 Hotel/Motel 005413 Tea Garden Lodge 932 Poplar St, South Lake Tahoe, CA 96150 Hotel/Motel 006388 The Landing Resort and Spa 4104 Lakeshore Blvd., South Lake Tahoe, CA 96150 Hotel/Motel 307818 The Lodge 3840 Pioneer Trail, South Lake Tahoe, CA 96150 Hotel/Motel 006812 The Trailhead 3892 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 Hotel/Motel 317409 Thunderchief Motel 1008 Echo Rd, South Lake Tahoe, CA 96150 Rental 007446 Turnkey Vacation Rentals,
Inc 5508 W. Hwy 290, STE 300, Austin, TX 78735
Rental 005979 VACASA LLC P.O. Box 10727, South Lake Tahoe, CA 96150 Hotel/Motel 003983 Vacation Internationale Inc 3601 Lake Tahoe Blvd, South Lake Tahoe, CA 96150 1153
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 24
Agenda Item: Funding Agreement with the South Shore Transportation Management Association for $150,000 Contribution to South Shore Microtransit Service Executive Summary: Pursuant to the Fiscal Year 2022 mid-year budget adjustment, this agreement provides for the $150,000 appropriation to the South Shore Transportation Management Association (SS/TMA) for Microtransit Services as approved on March 15, 2022 in the City Council mid-year budget adjustment. The SS/TMA has contracted with the Downtowner, LLC to provide an on-demand microtransit service, with the intent to launch this summer. The service area will encompass a significant portion of the South Lake Tahoe city limits from the Stateline area down to Lake Tahoe Community College, including the neighborhoods and businesses within this zone. The free-fare service is being launched by the SS/TMA as a public/private partnership of approximately $1,039,910 with the initial intent to serve the South Tahoe Events Center, which is set to open in 2023, and the areas noted above.

The SS/TMA has hired a professional program manager with transit expertise to deploy the service and see it through successfully. This new service will be included in the City's comprehensive transit analysis that is currently underway.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute a Funding Agreement with the Shore Transportation Management Association for a $150,000 Contribution for Mictrotransit Service.

Responsible Staff Members: Joe Irvin, City Manager and Lindsey Baker, Assistant to the City Manager/Public Information Officer
Responsible Staff Member: Joe Irvin, City Manager and Lindsey Baker, Assistant to the City Manager/Public Information Officer (530) 542-6093
Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Finance Director
Heather Stroud, City Attorney
Attachments:
01-Staff Report - SSTMA Funding Agreement.docx
02-SSTMA Funding Agreement.pdf
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Council Agenda Report- May 3, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Funding Agreement with the South Shore Transportation Management Association for $150,000 Contribution for South Shore Microtransit Service Location: Citywide
Responsible Staff Member: Joe Irvin, City Manager and Lindsey Baker, Assistant to the City Manager/Public Information Officer (530) 542-6093
Background: City staff originally discussed appropriating $150,000 to partner with the South Shore Transportation Management Association (SS/TMA) for Microtransit Service on March 15, 2022 during the City Council’s FY 21-22 mid-year budget adjustment. This funding agreement provides for the Council-approved $150,000 appropriation to the SS/TMA and formalizes the partnership.

Issue and Discussion:

The SS/TMA is a public/private partnership governed by a local Board of Directors comprised of public and private entity representatives. It “is a non-profit corporation organized under the laws of the State of Nevada whose mission is to support the economic vitality of the South Shore of Lake Tahoe, providing support and a unified leadership voice for public/private partnerships. SS/TMA advocates for improved mobility with innovative solutions to meet visitor and resident transportation needs by fostering collaboration, education, and sustainable funding.” The SS/TMA microtransit service was initiated as a result of a South Shore Events Center transportation Tahoe Regional Planning Agency permit condition. SS/TMA has partnered with a variety of public/private entities to provide not just the base service to meet the permit condition, but a level of service that is above and beyond what is required. To make this service viable, in addition to the City’s funding, the SS/TMA has or will receive funding from a variety of public and private partners, including but not limited to El Dorado County, Douglas County, South Tahoe Alliance of Resorts, the Lake Tahoe Visitor’s Authority, Lake Tahoe Community College, and a number of hotels and businesses in the Stateline area of California and Nevada.

The service, with a proposed launch date of summer 2022, will be operated by the Downtowner, LLC as a turnkey, on-demand solution. The Downtowner will deploy four vehicles, two of which are 9-passenger vans and two are 8-passenger vans with wheelchair accessibility. Each vehicle will provide for bike racks. Hours of operation are currently proposed on a seasonal basis as follows: Fall/Spring: 7am – 9pm, Daily; Summer/Winter: 7am – 9pm, Sun – Thu and 7am – 10pm, Fri – Sat. Average wait times are proposed to be no more than 15 minutes. The vehicles are not currently electric, but the SS/TMA, City staff, the Downtowner, and other partners continue to look at viable options and funding opportunities for the deployment of electric vehicles in future iterations of the service.
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Council Agenda Report- May 3, 2022 Page 2 of 2
The service area will encompass a significant portion of the South Lake Tahoe city limits from the Stateline area to Lake Tahoe Community College, including the neighborhoods and businesses within this zone. A map of the microtransit zone is available on page 25 of Exhibit A.

Finally, the SS/TMA has hired a program manager and known transit expert to implement the pilot program and ensure a successful deployment. The program manager will evaluate the ridership data provided by the operator and make recommendations to ensure the service parameters continue to meet passenger needs. Any changes to service parameters or change in operator will require a supermajority vote of the SS/TMA Board of Directors.

Staff Recommendation:

Pass a Motion approving a Funding Agreement between the South Shore Transportation Management Association (SS/TMA) and City of South Lake Tahoe for an amount of $150,000 for Mictrotransit Service, which the City Council appropriated for 2021-22 in the mid-year budget adjustment on March 15, 2022.

Financial Implications: The fiscal year 2021-2022 budget contains $150,000 in appropriations for the SS/TMA Microtransit Service, as approved by the City Council in the mid-year budget adjustment on March 15, 2022, within the Non-Departmental budget account 100-01951-44032 Contributions / Sponsorships.

Environmental Considerations: The proposed action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant impact on the environment).

Policy Implications: This funding agreement with the SS/TMA for Microtransit Service would advance Goal 1.4 (Transportation) in the 2021-2026 Strategic Plan, by addressing Action Item 7:

Partner with the new South Shore Events Center and South Shore Transportation Management Association to expand and electrify microtransit service. 1170

FUNDING AGREEMENT
Annual Contribution
South Shore Transportation Management Association (SS/TMA) South Shore Microtransit Service
This Funding Agreement (“Agreement”) is dated and effective ______ between the South Shore Transportation Management Association (“SS/TMA”) and the City of South Lake Tahoe (“City”). In this Agreement, City is referred to as a South Shore Microtransit Service “Funding Partner.” The SS/TMA and Funding Partner are collectively referred to herein as the “Parties.”

RECITALS
WHEREAS, SS/TMA is a non-profit corporation organized under the laws of the State of Nevada whose mission is to support the economic vitality of the South Shore of Lake Tahoe, providing support and a unified leadership voice for public/private partnerships. SS/TMA advocates for improved mobility with innovative solutions to meet visitor and resident transportation needs by fostering collaboration, education, and sustainable funding; and WHEREAS, consistent with its mission, the SS/TMA Board of Directors has approved the SS/TMA’s role as the contracting entity for the South Shore Microtransit Service, an interstate and intrastate service connecting the South Shore zones identified in Exhibit A; and WHEREAS, SS/TMA has contracted with South Tahoe Downtowner, LLC (ridedowntowner.com) (” Operator”) to operate the South Shore Microtransit Service (“Microtransit Service”); and
WHEREAS, the Microtransit Service is designed to improve non-auto mobility options throughout its service area, and provide connections to other transit services, including fixed route transit; and
WHEREAS, the City appropriated $150,000 for Microtransit Service for 2022-23 in its midyear budget adjustment on March 15, 2022; and WHEREAS, the Microtransit Service funded through this agreement between City and SS/TMA is above and beyond the service required as a condition of the Tahoe South Event Center (TSEC) permit; and
WHEREAS, the Board of Directors has also approved the SS/TMA’s role as the facilitator and collector of contributions to support the Microtransit Service from the Funding Partners herein named; and
WHEREAS, the South Shore Microtransit Service will operate between June 24, 2022 and June 30, 2023 under this Agreement.

NOW, THEREFORE BE IT RESOLVED, in consideration of the foregoing recitals and the covenants contained herein, the Parties agree as follows:
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1. EFFECTIVENESS AND TERM. This Agreement shall be effective upon the last date of execution of the Agreement, and the term of this Agreement shall expire on June 20, 2023. The City of South Lake Tahoe will be granted one (1) voting seat on the Board of Directors of the SS/TMA to be filled by a City staff person/non-elected official.

2. SERVICE. SS/STMA shall contract with the Operator to operate the Microtransit Service pursuant to the routes and schedules attached hereto as Exhibit A between June 24, 2022 and June 30, 2023. SS/TMA has discretion to amend the routes and schedules at any time as deemed necessary by SS/TMA for operational or funding related purposes provided that no such amendments shall increase the financial obligations of the Funding Partner, which shall be binding on the execution of this Agreement. A supermajority vote of the Board of Directors of the SS/TMA shall be required to amend service parameters. SS/TMA has the discretion to replace the Operator with another operator. A supermajority vote of the Board of Directors of the SS/TMA shall be required to replace the Operator.

3. FUNDING. The estimated program budget for FY 2022-2023 is attached as Exhibit B. The budget for all costs on the South Shore microtransit service is approximately $1,039,910 and the Funding Partner agrees to provide a total payment of $150,000, payable to the South Shore Transportation Management Association, as follows:
a. Quarterly invoices sent by SS/TMA, due within 30 days of receipt in equal amounts of $37,500.

4. INVOICING. SS/TMA shall provide four (4) invoices to Funding Partner at least 30 days in advance of the payment due dates specified in Section 3 of this Agreement. Invoices shall reference the South Shore Microtransit Service, the payment due date, and the relevant period of service.

5. USE OF FUNDS. SS/TMA shall deposit all funding amounts received into a separate account held solely for the South Shore Microtransit Service. SS/TMA shall use all funds solely for the purpose of paying the costs of the Microtransit Service (above and beyond the TSEC permit requirement) which shall include funds for service operation, SS/TMA management, accounting, and marketing. The estimated program budget for FY 2022-2023 is attached as Exhibit B.

6. RESERVE FUNDS. Any funds remaining unspent at the end of a fiscal/operating year after all costs of the Microtransit Service have been paid, including allocated funds for management, accounting, marketing and promotion, and audits, will be held in a restricted reserve fund. Reserve funds held within this account are to be used for the sole purpose of the South Shore Microtransit Service. The maximum Reserve Fund balance will cover 12 months of operations and management services to be determined by a subsequent fiscal year budget to ensure a funding source is available in the event of a funding shortage in any future year of operation. Any additional funds will be used for service expansion or returned to the Funding Partner by a pro rata share.

7. RETURNS. Amounts paid by the Funding Partner will be returned to the Funding Partner if the microtransit service is canceled and/or those amounts are not needed to pay for the service in 2 1172
future years. Any amounts returned to the Funding Partner will be determined on a pro-rata basis according to the amount contributed.

8. REPORTS. SS/TMA will provide monthly reports on the South Shore Microtransit Service to Funding Partner.

9. SS/TMA MICROTRANSIT COMMITTEE. The SS/TMA Board of Directors shall maintain a Microtransit Committee to provide oversight of the Operator and Microtransit service through a contracted Program Manager and to ensure the performance and accountability of the Microtransit Service.

10. RECORDS. SS/TMA shall maintain satisfactory account statements, records, and other documents related to the South Shore Microtransit Service for the life of the program. Account statements, records, and other documents relating to the microtransit service shall be retained by SS/TMA for three years following the completion or termination of this Agreement and shall be subject to examination and audit by the Funding Partner.

11. SS/TMA MANAGEMENT TASKS AND COMPENSATION. Through its Microtransit Committee and contracted Program Manager, SS/TMA shall oversee the day-to-day management and operation of the Microtransit Service and provide accounting, marketing, advertising and promotional support, as well as South Shore orientation, reporting, and other services for the Microtransit Service as set forth in Exhibit C, including auditing of the contract consistent with the provisions of the Agreement between SS/TMA and the Microtransit Service Operator.

12. INDEMNIFICATION. SS/TMA hereby agrees to and shall indemnify and hold harmless Funding Partner, its elected and appointed boards, officers, agents, employees, and volunteers from and against all liability for any and all claims, demands, actions, losses, damages, and injuries, direct or indirect (including any and all costs and expenses in connection therein) arising out of this Agreement or caused in any way by SS/TMA’s negligent performance of this agreement or breach of its obligations contained in this Agreement, except for any such claims arising out of the negligence or willful misconduct of the Funding Partner. SS/TMA agrees to defend Funding Partner against any and all losses, damages, claims, costs, and fees arising out of SS/TMA’s negligent acts, errors, or omissions regarding this Agreement.

Funding Partner does not, and shall not, waive any rights against SS/TMA which it may have by reasons of the aforesaid hold harmless agreement, because of the acceptance by Funding Partner, or the deposit with Funding Partner by SS/TMA, of any of the insurance policies hereinafter set forth.

This hold harmless agreement by SS/TMA shall apply to all damages and claims for damages, or alleged to have been suffered, by reason of any of the aforesaid operation of SS/TMA or any subcontractor, regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. 3 1173
SS/TMA further waives any and all rights to any type of express or implied indemnity or right of contribution from the Funding Partner for any liability, claims, demands, costs, charges, and expenses and causes of action whatsoever arising out of or in any way connected with this Agreement.

13. INSURANCE REQUIREMENTS. SS/TMA, at its own cost and expense, shall procure and maintain, for the duration of the Agreement, the following insurance policies. a. Commercial General Liability Coverage. SS/TMA shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage.

Coverage must be made on the standard Occurrence form. Claims-Made forms are not acceptable without prior written consent of Funding Partner. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of SS/TMA. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.
b. Automobile Liability Coverage. SS/TMA shall maintain automobile liability insurance covering bodily injury and property damage for all activities of SS/TMA arising out of or in connection with this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.

Endorsements. The insurance required by this Agreement shall be with insurers possessing an AM Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
a. City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insured’s under SS/TMA’s General Liability policy with respect to liability arising out of this Agreement.
b. This policy shall be considered primary insurance as respects City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by City, including any self-insured retention City may have, shall be considered excess insurance only and shall not contribute with it.
c. This insurance shall act for each insured and additional insured as though a separate policy had been written for each.
d. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, or agents.
e. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. f. No policies of insurance carried by SSTMA shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail.
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Deductibles and Self-Insured Retentions. SS/TMA shall be responsible for all deductibles in all of SS/TMA’s insurance policies. The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.

Certificates of Insurance. SS/TMA shall provide certificates of insurance with original endorsements to Funding Partner as evidence of the insurance coverage required herein. SS/TMA shall not allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.

14. DISPUTES AND TERMINATION. The Parties shall meet and confer in an attempt to resolve any dispute arising from this Agreement. If the dispute cannot be resolved, any party may terminate this Agreement upon 60 days written notice to the other party. In the event of termination, the Funding Partner shall not be entitled to any reimbursement of funding amounts already provided except as provide in Section 7 of this Agreement.

15. NOTICE: Written notice under this Agreement shall be provided via U.S. Mail, electronic mail, or in person, as follows:
for City for SS/TMA
Joseph Irvin Steve Teshara
City Manager Chair, SS/TMA Board of Directors
1901 Lisa Maloff Way PO Box 1875
South Lake Tahoe, CA 96150 Zephyr Cove, NV 89448

16. NO THIRD-PARTY BENEFICIARIES. This Agreement is for the benefit of the parties hereto and nothing contained herein shall be construed as granting, vesting, creating, or conferring any right or cause of action on any third party. Nothing in this Agreement is intended to create, nor shall it be deemed to create any contractual relationship with any third party and SS/TMA or the Funding Partner.

17. GOVERNING LAW; JURISDICTION. This Agreement will be governed by, interpreted under; and construed and enforced in accordance with the laws of the State of California, without regard to its conflict of laws rules, with venue in the Superior Courts in the County of El Dorado, South Lake Tahoe Division. Each of the Parties acknowledges and agrees that the laws of the State of California and the selection of venue in the foregoing city and county were freely chosen by the Parties.

18. ENTIRE AGREEMENT. This Agreement and the documents incorporated herein by reference constitute the entire agreement between the parties relating to the South Shore Microtransit Service and may not be modified except by an instrument in writing signed by the signatories to this Agreement. If any provision, or portion thereof, of the Agreement is or becomes invalid under any applicable statute or rule of law, it shall be deemed stricken and the remainder of this Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF, this Agreement has been executed by the parties and is dated and effective as of the date written above.

FOR CITY OF SOUTH LAKE TAHOE FOR SOUTH SHORE TRANSPORTATION

MANAGEMENT ASSOCIATION
________________________________________ _______________________________________ Devin Middlebrook Steve Teshara
_____________________________________ ___________________________________ Mayor Chair, SS/TMA Board of Directors
_____________________________________ _________________________________ Date Date
Approved as to Form:
_____________________________________
Heather Stroud, City Attorney
Attachments:

Exhibit A: South Shore Microtransit Service Agreement
Exhibit B: Estimated Program Budget
Exhibit C: SS/TMA Scope of Services
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South Shore Microtransit Services Agreement
THIS AGREEMENT is made by and between the Tahoe Transportation District (“TTD”), South Shore Transportation Management Association (“SS/TMA”), and South Tahoe Downtowner, LLC ("Contractor"), who agree as follows:

1. Authority and Responsibility of Parties; TTD Limitation of Liability. TTD, having authority under Article IX of the Tahoe Regional Planning Compact (Public Law 96-551), as subsequently amended, to operate public and private transportation systems within the Tahoe region, hereby contracts with SS/TMA to authorize its operation of transportation services as set forth in Exhibit A to be provided by Contractor. SS/TMA shall be solely responsible for the funding, oversight, management, and compensation of Contractor’s provision of services under the terms of this Agreement.

TTD’s role shall be limited to providing operating authority as specified in this section.

SS/TMA will provide program management as further specified in this Agreement.

SS/TMA will provide total funding for this project as further specified in this Agreement.

Contractor will provide micro transit operation as further defined in this Agreement.

Contractor and SS/TMA hereby acknowledge and covenant that any rights that Contractor may have or accrue as a result of the performance of services under this Agreement shall be deemed to be solely against SS/TMA, and that Contractor shall have no right to seek compensation from TTD.

Contractor and SS/TMA hereby acknowledge that TTD shall have no liability to Contractor or any other party under the terms of this Agreement with respect to the services to be provided hereunder, and each further covenant not to make any claims or demands against TTD with respect to any services performed under this Agreement, except to the extent provided for under Section 11 of this Agreement.

2. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide the services described in Exhibit A. Contractor shall provide said services at the time, place, and in the manner specified in Exhibit A.

3. Term. The Term of this agreement begins June 24, 2022 and is subject to the Termination condition of this Agreement.

4. Payment. SS/TMA shall pay Contractor for services rendered pursuant to this Agreement at the time and in the amount set forth in Exhibit B. The payment specified in Exhibit B shall be the only payment made to Contractor for services rendered pursuant to this Agreement. Contractor shall submit all billings for said services to SS/TMA in the manner specified in Exhibit B for review and payment approvals; or, if no manner be specified in Exhibit B, then according to the usual and customary procedures which Contractor uses for billing clients similar to SS/TMA. The project term will be June 24, 2022 through June 23, 2023. Subsequent projects will be approved as amendments to this agreement.

5. Facilities, Equipment and Other Materials. Contractor shall, at its sole cost and expense, furnish all facilities, equipment, and other materials which may be required for furnishing services pursuant to this Agreement. Parking facilities shall be provided for the contractor; terms of this agreement are set forth in Exhibit C.

Funding Agreement Exhibit A
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6. Exhibits. All exhibits referred to herein will be attached hereto and by this reference incorporated herein.

7. Time for Performance. Time is of the essence. Failure of Contractor to perform any services within the time limits set forth in Exhibit A shall constitute material breach of this contract.

8. Independent Contractor. At all times during the term of this Agreement, Contractor shall be an independent Contractor and shall not be an employee of the SS/TMA or TTD.

SS/TMA shall have the right to control Contractor only insofar as the results of Contractor's services rendered pursuant to this Agreement. SS/TMA shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement.

9. Licenses, Permits, Etc. Contractor represents and warrants to SS/TMA that it has all licenses, permits, qualifications, and approvals of whatsoever nature, which are legally required for Contractor to practice its profession within the bi-state service area defined in this Agreement. Contractor represents and warrants to SS/TMA that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, and approvals which are legally required for Contractor to practice its profession at the time the services are performed.

10. Time. Contractor shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for the satisfactory performance of Contractor's obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent performance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.

11. Hold Harmless and Indemnification Agreement. The Contractor hereby agrees to protect, defend, indemnify, and hold SS/TMA free and harmless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, and all other reasonable expenses incurred by SS/TMA arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to property (including agents, employees or property of the SS/TMA) and without limitation by enumeration, all other claims or demands of every character occurring or in any way incident to, in connection with or arising directly or indirectly out of this Agreement, except where caused due to the sole negligence or willful misconduct of SS/TMA.

The Contractor hereby agrees to protect, defend, indemnify, and hold TTD free and harmless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to, the amounts of judgments, penalties, interest, court costs, legal fees, and all other reasonable expenses incurred by TTD arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to property (including employees or property of the TTD) and without limitation by enumeration, all other claims or demands of every character occurring or in any way incident to, in connection with or arising directly or indirectly out of this Agreement (collectively, “Liability”), except where caused due to the sole negligence or willful misconduct of TTD.

Contractor further agrees to investigate, handle, respond to, provide defense for, and defend any such claims, demand, or suit against either TTD, and/or SS/TMA at the sole expense of the Contractor. Contractor also agrees to bear all other costs and expenses 8 1178
related thereto, even if the claim or claims alleged are groundless, false, or fraudulent.

This provision is not intended to create any cause of action in favor of any third party against Contractor, SS/TMA or TTD or to enlarge in any way the Contractor’s liability but is intended solely to provide for indemnification of SS/TMA and TTD from liability for damages or injuries to third persons or property arising from Contractor’s performance pursuant to this Agreement.

To the extent that Contractor does not or is unable to fully defend, indemnify, and hold harmless TTD from any and all Liability for any reason, SS/TMA agrees to defend, indemnify, and hold harmless TTD, except in the event of concurrent negligence (or intentional/reckless acts) of SS/TMA and/or its officers and employees, on the one hand, and TTD and/or its officers and employees, on the other hand, then the liability for any and all claims for injuries or damage to persons and/or property which arise out of terms and conditions of this Agreement shall be apportioned according to a theory of pure comparative fault.

As used above, the terms SS/TMA and TTD shall be construed to include their respective board members, officers, agents, employees, and volunteers.

12. Insurance.

Contractor shall file with SS/TMA Certificates of Insurance, in companies acceptable to SS/TMA, with a Best’s Rating of no less than A- VII meeting the following requirements:

A. Worker’s Compensation and Employer’s Liability Insurance Worker's Compensation Insurance shall be provided as required by any applicable law or regulation. Employer's liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.

If there is an exposure of injury to Contractor's employees under the U.S. Longshoremen's and Harbor Worker's Compensation Act, the Jones Act, or under laws, regulations, or statutes applicable to maritime employees, coverage shall be included for such injuries or claims.

Each Worker's Compensation policy shall be endorsed with the following specific language:

Cancellation Notice - “This policy shall not be changed without first giving thirty (30) days prior written notice from Contractor to the SS/TMA and Tahoe Transportation District.” Contractor shall require all subcontractors to maintain adequate Workers' Compensation insurance. Certificates of Workers' Compensation shall be filed forthwith with the SS/TMA upon demand.

B. General Liability Insurance
(i) Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of Contractor, providing insurance for bodily injury liability and property damage liability for the limits of liability indicated below and including coverage for:
a. Contractual liability insuring the obligations assumed by Contractor in this 9 1179
Agreement.
(ii) One of the following forms is required:
a. Comprehensive General Liability;
b. Commercial General Liability (Occurrence); or
c. Commercial General Liability (Claims Made).
(iii) If Contractor carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:
a. One million dollars ($1,000,000) each occurrence
b. Two million dollars ($2,000,000) aggregate
(iv) If Contractor carries a Commercial General Liability (Occurrence) policy:
a. The limits of liability shall not be less than:
i. One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
ii. One million dollars ($1,000,000) for Products-Completed Operations iii. Two million dollars ($2,000,000) General Aggregate b. If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).
(v) Special Claims Made Policy Form Provisions:

Contractor shall not provide a Commercial General Liability (Claims Made) policy without the express prior written consent of SS/TMA, which consent, if given, shall be subject to the following conditions:
a. The limits of liability shall not be less than:
i. One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
ii. One million dollars ($1,000,000) aggregate for Products Completed Operations
iii. Two million dollars ($2,000,000) General Aggregate b. The insurance coverage provided by Contractor shall contain language providing coverage up to one (1) year following the completion of the contract in order to provide insurance coverage for the hold harmless provisions herein if the policy is a claims-made policy.

C. Conformity of Coverages
If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. For example, all policies shall be Occurrence Liability policies or all shall be Claims Made Liability policies, if approved by SS/TMA as noted above. In no cases shall the types of polices be different.

D. Endorsements
Each Comprehensive or Commercial General Liability policy shall be endorsed with the following specific language:
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(i) “The Tahoe Transportation District and SS/TMA, and their respective officers, agents, employees, and volunteers are to be covered as additional insured parties for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement.”
(ii) “The insurance provided by the Contractor, including any excess liability or umbrella form coverage, is primary coverage to the Tahoe Transportation District and SS/TMA with respect to any insurance or self- insurance programs maintained by the SSTMA and no insurance held or owned by the SS/TMA shall be called upon to contribute to a loss.”
(iii) “This policy shall not be changed without first giving thirty (30) days prior written notice to Tahoe Transportation District and SS/TMA.

E. Automobile Liability Insurance
Automobile Liability insurance covering bodily injury and property damage in an amount no less than two million dollars ($2,000,000) combined single limit for each occurrence.

Covered vehicles shall include owned, non-owned, and hired automobiles/trucks.

F. Additional Requirements
(i) Premium Payments: The insurance companies shall have no recourse against the Tahoe Transpiration District and SS/TMA and their funding agencies, or their respective boards, officers, agents, and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.
(ii) Policy Deductibles: The Contractor shall be responsible for all deductibles in all of the Contractor’s insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be approved by SS/TMA. (iii) Contractor’s Obligations: Contractor’s indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this Agreement. Any insurance in excess of limits specified above shall be available to SS/TMA and TTD.
(iv) Verification of Coverage: Contractor shall furnish the SS/TMA with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the SS/TMA before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor obligation to provide them. The SS/TMA reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. (v) Material Breach: Failure of the Contractor to maintain the insurance required by this Agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire Agreement.

G. Waiver of Subrogation – Each of the insurance policies specified in this Agreement shall be endorsed to state that the insurance carrier waives its right of subrogation against the Tahoe Transportation District and SS/TMA, their respective officers, directors, officials, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by 11 1181
the Contractor. However, Contractor hereby waives any rights of subrogation that may accrue to such insurers against TTD, and SS/TMA as a result of payments made for claims under such policies, and such waiver of subrogation shall be effective to the maximum extent permitted by law regardless of whether such endorsements are obtained.

13. Contractor Not Agent. Except as SS/TMA may specify in writing Contractor shall have no authority, express or implied, to act on behalf of SS/TMA in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied pursuant to this Agreement to bind SS/TMA or TTD to any obligation whatsoever.

14. Assignment Prohibited. Contractor may assign its rights and obligations under this Agreement only upon the prior written approval of SS/TMA, said approval to be in the sole discretion of SS/TMA.

15. Personnel.

A. Contractor shall assign only competent personnel to perform services pursuant to this Agreement. In the event that SS/TMA in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Contractor to perform services pursuant to this Agreement, including those members of the Project Team as explained below, Contractor shall remove any such person immediately upon receiving notice from SS/TMA of the desire of SS/TMA for removal of such person or persons.

B. Notwithstanding the foregoing, if specific persons are designated as the “Project Team” in Exhibit A, Contractor agrees to perform the work under this agreement with those individuals identified. Reassignment or substitution of individuals or subcontractors named in the Project Team by Contractor without the prior written consent of SS/TMA shall be grounds for cancellation of this Agreement by SS/TMA and payment shall be made pursuant to Section 17 (Termination) of this Agreement only for that work performed by Project Team members.

16. Standard of Performance. Contractor shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Contractor is engaged in the geographical area in which Contractor practices its profession. All products of whatsoever nature which Contractor delivers to SS/TMA pursuant to this Agreement shall be prepared in a workmanlike manner and conform to the standards or quality normally observed by a person practicing in Contractor's profession.

17. Termination.

A. SS/TMA shall have the right to terminate this Agreement at any time by giving notice in writing of such termination to Contractor. In the event SS/TMA shall give notice of termination, Contractor shall immediately cease rendering service upon receipt of such written notice, pursuant to this Agreement. In the event SS/TMA shall terminate this Agreement:
1) Contractor shall deliver copies of all writings prepared by it pursuant to this Agreement. The term "writings" shall be construed to mean and include:
handwriting, typewriting, printing, Photostatting, photographing, and every other means of recording upon any tangible thing any form of 12 1182
communication or representation, including letters, words, pictures, sounds, or symbols, or combinations thereof; provided, however, that “writings” shall not include, or be deemed to include, any of Contractor’s software, codes or algorithms, or any materials incorporating or embedding such software, codes or algorithms, used in the performance of this Agreement.
2) SS/TMA shall have full ownership and control of all such writings delivered by Contractor pursuant to this Agreement.
3) SS/TMA shall pay Contractor the reasonable value of services rendered by Contractor to the date of termination pursuant to this Agreement not to exceed the amount documented by Contractor and approved by SS/TMA as work accomplished to date; provided, however, that in no event shall any payment hereunder exceed the amount of the agreement specified in Exhibit B, and further provided, however, SS/TMA shall not in any manner be liable for lost profits which might have been made by Contractor had Contractor completed the services required by this Agreement. In this regard, Contractor shall furnish to SS/TMA such financial information as in the judgment of the SS/TMA is necessary to determine the reasonable value of the services rendered by Contractor. The foregoing is cumulative and does not affect any right or remedy, which SS/TMA may have in law or equity.

B. Contractor may terminate its services under this Agreement upon thirty (30) working days’ advance written notice to all other parties.

C. TTD may terminate this Agreement upon thirty (30) working days’ advance written notice to all other parties.

18. Compliance with Laws; Nondiscrimination. Contractor and any subcontractors, consultants, and other vendors performing services under this Agreement shall comply with all applicable Federal, State and local laws, rules, regulations, ordinances, and SS/TMA policies, including the provisions of the Americans with Disabilities Act of 1990 and Fair Employment and Housing Act, and will not unlawfully discriminate against employees, applicants or clients because of race, sex, sexual orientation, color, ancestry, religion or religious creed, national origin or ethnic group identification, mental disability, physical disability, medical condition (including cancer, HIV and AIDS), age (over 40), marital status, or use of Family and Medical Care Leave and/or Pregnancy Disability Leave in regard to any position for which the employee or applicant is qualified.

19. Records. Contractor shall maintain, at all times during the term of this agreement, complete detailed records with regard to work performed under this Agreement as outlined in Exhibit A, Scope of Services, Section 1.5.3. in a form reasonably acceptable to SS/TMA and SS/TMA shall have the right to inspect such records at any reasonable time.

Notwithstanding any other terms of this Agreement, no payments shall be made to Contractor until SS/TMA is satisfied that work of such value has been rendered pursuant to this agreement. However, SS/TMA shall not unreasonably withhold approval of payment and, if a dispute exists, the withheld approval of payment shall be proportional only to the item in dispute.

20. Ownership of Information. All professional and technical information developed under this Agreement and all work sheets, reports, and related data is the property of SS/TMA, 13 1183
and Contractor agrees to deliver reproducible copies of such documents to SS/TMA on completion of the services hereunder and/or termination of this Agreement.

Notwithstanding the foregoing or any other provision in this Agreement, Contractor retains all intellectual property rights and other rights, title and interest to its software, codes and algorithms used in performing services, and nothing in this Agreement provides or grants the SS/TMA with any right, title or interest to any such software, codes or algorithms.

21. Waiver. One or more waivers by one party of any major or minor breach or default of any provision, term, condition, or covenant of this Agreement shall not operate as a waiver of any subsequent breach or default by the other party.

22. Conflict of Interest. Contractor certifies that no official or employee of the SS/TMA or TTD, nor any business entity in which an official of the SS/TMA or TTD has an interest, has been employed or retained to solicit or aid in the procuring of this Agreement. In addition, Contractor agrees that no such person will be employed in the performance of this Agreement without immediately notifying the SS/TMA and TTD.

23. Entirety of Agreement. This Agreement contains the entire agreement of TTD, SS/TMA and Contractor with respect to the subject matter hereof, and no other agreement, statement, or promise made by any party, or to any employee, officer, or agent of any party, which is not contained in this Agreement, shall be binding or valid.

24. Alteration. No waiver, alteration, modification, or termination of this Agreement shall be valid unless made in writing and signed by all parties, except as expressly provided in Section 16, Termination.

25. Governing Law; Jurisdiction. This Agreement will be governed by, interpreted under; and construed and enforced in accordance with the laws of the State of California, without regard to its conflict of laws rules, with venue in El Dorado County, California. Each of the Parties acknowledges and agrees that the laws of the State of California and the selection of venue in the foregoing were freely chosen by the Parties.

Each Party consents to exclusive personal jurisdiction over such Party by the courts of the State of California and agrees that service of process on such Party may be effected by certified or registered mail, return receipt requested, directed to such Party at its address shown in this Agreement.

25. Notification. Any notice or demand desired or required to be given hereunder shall be in writing and deemed given when personally delivered or deposited in the mail, postage prepaid, and addressed to the parties as follows:

Tahoe Transportation District South Tahoe Downtowner, LLC Att: Carl Hasty Att: Travis Gleason
PO Box 499 4 Sand Dune Dr
Zephyr Cove NV 89448 New Smyrna Beach, FL 32169
775-589-5500 561-929-1471
South Shore Transportation
Management Association
Att: Steve Teshara, Board Chair
PO Box 1875
Zephyr Cove, NV 89448
775-588-2488
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Any notice so delivered personally shall be deemed to be received on the date of delivery, and any notice mailed shall be deemed to be received five (5) days after the date on which it was mailed.

26. General Health Measures and Conduct: Contractor shall be solely responsible for ensuring that the Contractor’s employees or subcontractors are physically capable of performing the services described herein. The Contractor shall take all necessary measures to ensure that the Contractor’s employees and sub-contractors receive sufficient training regarding contagious and infectious diseases and preventative measures to be taken within the workplace to protect the Contractor’s employees and subcontractors from exposure to or exposing others to contagious and infectious diseases. Should the any party observe any of Contractor’s employees or sub-contractors exhibiting symptoms of a contagious and/or infectious disease (including but not limited to COVID-19) either prior to or during the performance of services, the Contractor shall immediately take measures to minimize or prevent exposure consistent with government guidance and best practices. Such removal of Contractor’s employees or subcontractors shall not be considered a basis for that employee’s claim for compensation or damages against any party. The employee shall not return to work until Contractor determines that the situation is resolved.

27. Contract Materials
At the end of this Agreement, or in the event of termination, all finished or unfinished documents, data, studies, maps, photographs, reports, and other written materials prepared by Contractor or subcontractors under this Agreement (collectively, “contract materials”) shall become the property of SS/TMA and shall be promptly delivered to SS/TMA. The Contractor shall retain titles, rights, and interests in any underlying template documents and may make and retain copies of contract materials. Consistent with Section 19 (Ownership of Information), “contract materials” shall not include, or be deemed to include any of Contractor’s software, codes or algorithms, or any materials incorporating or embedding such software, codes, or algorithms, used in the performance of this Agreement.

28. Counterparts; Electronic Signature
This Agreement may be executed in duplicate counterparts. Each counterpart shall be an original and both together shall constitute but one and the same document. This Agreement shall not be deemed executed unless and until at least one counterpart bears the signatures of all parties’ designated signatories.

In addition, this Agreement and future documents relating to this Agreement may be digitally signed in accordance with Nevada law. Any party to this Agreement may revoke such agreement to permit electronic signatures at any time in relation to all future documents by providing notice pursuant to this Agreement. [SIGNATURES ON THE FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Agreement as of the day first above stated:

TAHOE TRANSPORTATION SOUTH TAHOE

DISTRICT DOWNTOWNER, LLC
By:_____________________ By:_____________________
Carl Hasty, District Manager Its: _____________________ APPROVED AS TO FORM:

By: _______________________________
Tahoe Transportation District Counsel

SOUTH SHORE

TRANSPORTATION MANAGEMENT

ASSOCIATION
By:_____________________
Its: _____________________
EXHIBITS:

Exhibit A: Scope of Services
Exhibit B: Payment Terms, Contractor
Exhibit C: Parking Facilities
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IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Agreement as of the day first above stated:

TAHOE TRANSPORTATION SOUTH TAHOE

DISTRICT DOWNTOWNER, LLC
By:_____________________ By:_____________________
Carl Hasty, District Manager Its: _____________________ APPROVED AS TO FORM:

By: _______________________________
Tahoe Transportation District Counsel

SOUTH SHORE

TRANSPORTATION MANAGEMENT

ASSOCIATION
By:_____________________
Its: _____________________
EXHIBITS:

Exhibit A: Scope of Services
Exhibit B: Payment Terms, Contractor
Exhibit C: Parking Facilities
17 1187

EXHIBIT A

SCOPE OF SERVICES

1.1 BACKGROUND
The fundamental goal of the South Shore Microtransit Service is to provide a demand-responsive mobility option for residents and visitors wanted to travel within the defined bi-state service area of the South Shore of Lake Tahoe (Zone identified in Exhibit A, Attachment 1), including to and from the Tahoe South Events Center, or trying to connect with the regional transit system. The micro transit service will be responsive to customer demand by providing riders the ability to reserve a ride in real-time through a smartphone application and software platform. The service will perform like a continuous vanpool and will dynamically route vehicles to meet riders demand, saving riders time and replacing single-occupancy vehicle trips.

1.2 OBJECTIVES
● Provide a microtransit option within the defined service area: 1) to meet the TRPA mitigation requirements related to the Tahoe South Events Center; and, 2) overall, provide a viable option to use of personal vehicles or traditional single occupancy transportation network companies through competitive or reduced travel times, convenience, cost effectiveness and an improved overall trip experience.
● Reduce congestion and improve traffic flow by reducing vehicles on the road. ● Better understand demand and willingness to use a rideshare service. ● Acquire data to allow for detailed analysis of service performance and opportunities for improvements.

1.3 REQUIREMENTS
A. Turnkey solution provided through this Agreement to include the following items:
● Real-time, dynamic service
● Software application/platform necessary for scheduling, dispatch, user interface, data collection, reporting, backend dashboard.
● Vehicles – owned or leased by vendor
● Drivers
● Operation of service
● Customer service
● Storage for vehicles provided at the Douglas County Parking Structure, or equivalent. ● Maintenance of vehicles
● Marketing of service in partnership with SS/TMA
B. SS/TMA has identified one zone for the Mobility on Demand South Shore micro transit service
● All trips must begin and end within the identified zone (Zone identified in Exhibit A, Attachment 1)
● Ability for riders to seamlessly make connections between micro-transit service and the TTD fixed route service.
● All trips will be free to the rider.
● Data sharing and ownership by SS/TMA as described in Section 1.5.3. ● On-site manager must be available during all hours when service is operational ● Ability to request an ADA accessible vehicle on-demand using the same technology as other patrons.
● Service option for those without a smart phone or internet access ● Ability to scale service based on demand
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● Implement COVID-19 cleaning and capacity measures per current CDC Guidelines ● Contractors shall comply with all current applicable federal, state, and municipal laws, codes, and regulations aimed at employers to protect the safety and health of employees and the public.

1.4 SERVICE DAYS AND HOURS
The initial years’ service days and hours will be
- Fall / Spring: 7am – 9pm, Daily
- Summer / Winter: 7am – 9pm, Sun – Thu and 7am – 10pm, Fri - Sat Average wait times shall be no more than 15 minutes. Riders should always be able to travel within proposed service area.

1.5 DETAILED SCOPE OF WORK
The SS/TMA requests the development and implementation of an innovative and dynamic demand response rideshare model. The key components of the South Shore Microtransit Service as envisioned by the SS/TMA are outlined below.

1.5.1. SERVICE IMPLEMENTATION PLAN
Contractor shall submit a Service implementation plan for SS/TMA review and approval, detailing all tasks necessary to deploy the South Shore Micro Transit Service. Include timelines and indicate responsible parties. Tasks may include but are not limited to:
● Work elements separated into tasks and phases
● Identification of key staff by work activity and proposed location ● Identification of schedule start and stop dates for each activity ● Expected deliverables/results
● Key milestones (i.e., Pilot deployment, Performance Monitoring) ● Vehicle Procurement and Branding
● Driver Procurement and Training
● Administrative Processes
● Zone Familiarization Trips
● Promotional Events & Marketing
● Full-Service Deployment
The work plan for services through June 30 of the following year must be submitted to the SS/TMA by June 1 of the current year. The SS/TMA will review the Implementation Plan and collaborate with the Contractor on any needed changes.

1.5.2. PROJECT MANAGEMENT
Project management will be a key responsibility of the Contractor and a continuous function.

The SS/TMA designates its Program Manager to coordinate all project activities with the Contractor.

In the area of Project Management, the Contractor shall:
● Schedule and facilitate a kick-off meeting and meetings at key milestones, field reviews, SS/TMA Micro Transit Committee and/or stakeholder group meetings, and other projectrelated meetings. ● Maintain and update the work plan as approved by the SS/TMA. ● Develop and maintain an overall project schedule to ensure milestones are met in an efficient manner.
● Ensure that individuals performing tasks have appropriate skill levels and credentials. 19 1189
● Coordinate all required deliverables including, operations, vehicle acquisition, hiring of Contractors, vehicle wrapping or decals/branding, installation and configuration of software and hardware, documentation and training, performance monitoring and reporting.
● Be available and responsive to requests for information, inspections, or meetings

1.5.3. PERFORMANCE MONITORING AND REPORTING
A. Contractor shall provide regular reporting, as follows:
● Provide bi-weekly briefings to SS/TMA on completed tasks, deliverables, and all issues experienced and/or resolved during the 2-week period, with an explanation and new date for unmet tasks and deliverables. The briefing will also provide a forecast of activities and expected deliverables for the upcoming 2-week period. The bi-weekly briefing shall contain, at a minimum:
o Summary of Work Completed To-Date
o Updates to Project Schedule
o Status of Operations and Deliverables
o Activities and expected deliverables for the upcoming month o Red-flag issues
o All complaints, whether written, verbal, or app-based o Any public app or SS/TMA platform errors or downtime
B. Accident/Incident Reporting should be provided as follows:
● Contractor shall develop, implement and maintain formal procedures for response to accidents, incidents, service interruptions, and complaints, subject to SS/TMA review and approval prior to initiating services under this AGREEMENT. ● Accident reports are to be submitted to SS/TMA within one (1) business day for injury accidents, and within two (2) business days for non-injury accidents. Telephone notification on all injury accidents shall be provided to SS/TMA thirty (30) minutes of occurrence.
● Contractor will be responsible for completing incident reports for vehicle and nonvehicle incidents, accidents, and collisions during performance of this contract.

Incident reporting will be completed on a form prescribed by the SS/TMA.

C. Provide Performance Reports as follows:
● Regular Performance Monitoring: Reporting and analysis tools shall be built into the technology platform and open to the SS/TMA for regular use. All data collected as part of the South Shore Micro Transit Project must be openly shared with the SS/TMA and is the property of the SS/TMA The Contractor shall create custom reports as requested by the SS/TMA. Reports shall allow for daily, weekly, monthly assessment of the Service so that changes can be made to improve service and ridership if deemed necessary by the SS/TMA.
• Performance Evaluation Reports: Contractor shall provide a Performance Evaluation Report at the end of each month of Rideshare Service. At the end of the seasonal pilot, a Summary Performance Evaluation Report shall be submitted that includes all past performance measures and reporting to give a comprehensive overview of the success of the South Shore Micro Transit Service to date.
• Report Content: Monthly Performance Evaluation Reports shall summarize the performance of the Project, using clear and measurable criteria that could include but are not limited to the list below, subtotaled for each zone:
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o Vehicle Revenue Hours/Miles: The hours (miles) that a vehicle is available to the general public and for demand response service includes all travel and time from the point of the first passenger pick-up to the last passenger drop-off, as long as the vehicle does not return to the garage or dispatching point. In addition, VRH and VRM include the distance and time to pick-up the next passenger. This does not include deadhead distance and time. This definition is consistent with the National Transit Database definition. o Total Vehicle Hours/Miles: The hours (miles) that a vehicle is scheduled to or actually travels from the time it pulls out from its garage or dispatching point to go into revenue service to the time it pulls in from revenue service. It is often called platform time. This includes deadhead distance and time. This definition is consistent with the National Transit Database definition. o Passenger Miles: The cumulative sum of the distances ridden by each passenger. This definition is consistent with the National Transit Database definition.
o Unlinked Passenger Trips (ridership): The number of passengers who board public transportation vehicles. Passengers are counted each time they board vehicles no matter how many vehicles they use to travel from their origin to their destination.
o Total number of unduplicated riders; both monthly and cumulative o Demand summary (Total number of ride requests, origin/destination, time of use, boarding’s per revenue hour, total ridership, type of rider) o Trip data per zone (travel times, number of shared rides, average wait time, trip denial rate, booking abandonment rates, percentage of time expected wait times are not met, passenger no-shows, missed trips)
o Hardware performance and reliability
o Vehicle maintenance, performance, and reliability
o Status and success of marketing efforts (number of events, attendance, audience reach, etc.)
o Customer Service

1.5.4. Performance Metrics and Incentive
Metrics assume ride sharing is on.

Rides that were delayed for reasons outside of the Contractor’s control (such as road closures or severe weather) will be documented by Contractor and not penalized.

A. Metric 1- Wait Time
The monthly penalty will be reflected as an invoice credit in any month where the goal is not met.

Wait time Goals
Zone 90% picked up in <= 20 min 90% picked up in <= 30 min Monthly Penalty 1 Up to 250 passengers Up to 300 passengers $1,000
B. Metric 2- Trip Duration
The monthly penalty will be reflected as an invoice credit in any month where the goal is not met.

Trip Duration Goals
90% of trips in each zone will have a maximum trip duration of no more than thirty minutes.

Zone Monthly Penalty
1 $1,000
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C. Metric 3 – Missed Trips
A missed trip is defined as any occurrence when the driver does not arrive at the pickup location of a ride request, and there are no circumstances beyond the Contractor’s control such as a safety concern or a physical constraint outside of the driver’s control. Each missed trip will result in a $500 penalty reflected in the variable rate of the contracted amount.

1.5.5. SOFTWARE, HARDWARE & EQUIPMENT PLANNING
Contractor shall provide all software, installation, training, and technical assistance, hardware and equipment required to deploy and manage the Rideshare Service.

A. Backend Technology Platform Characteristics and Documentation ● The SS/TMA desires full access to and ownership of all data associated with the Pilot to inform strategic transportation planning efforts. The SS/TMA envisions a backend technology platform that can be used to, in real time, aggregate riders traveling from multiple origins to multiple destinations in an exceptionally efficient way that optimizes the balance between maximizing vehicle utilization and maintaining excellent quality of customer experience. The platform should support fully automated scheduling, dispatch, and reservations, allowing passengers to book trips in real-time via phone, and mobile application. The administrative interface should allow for real time monitoring and assessment of schedule adherence, vehicle locations, passenger breakdowns, driver performance, and other relevant trip details. The SS/TMA’s backend platform should be accessible via standard web browsers and from any commonly used internet-enabled device and should provide options to generate reports and extract operational data for analysis.

B. Vehicle Hardware and Equipment
● The Contractor shall provide all necessary hardware required to deploy the South Shore Micro Transit Service. If any transfer of equipment is required between vehicles, transfer should be simple and efficient. The Contractor user interface should be safe, easy to use, and include audible and clear messaging indicating passenger updates and stop changes.

Driving instructions should be available in list, map, and turn-by-turn voice instructions to ensure safe operation.
a. Vehicle Acquisition & Operations Plan:

The SS/TMA expects the Contractor to supply and maintain all necessary vehicles for the South Shore Micro Transit Service. This service will be operated utilizing vehicles designed, used, or maintained for carrying NO more than ten passengers (including the driver), with a weight rating of less than (GVWR) of 26,001. At a minimum, two vehicles shall be wheelchair lift equipped on order to meet the equivalent service standards under 49 CFR Part 37 Americans With Disabilities Act transit requirements.

If Contractor does not own the necessary vehicles for the Service as determined in the Service Model, vehicle acquisition by way of purchase, leasing, or other agreement will be required by the Contractor. The SS/TMA desires vehicles that accommodate mobility limited users and bicycle storage, as feasible. Vehicles used in the performance of this Agreement shall be no more than five (5) years old and/or have no more than 150,000 miles during any time during the initial term or subsequent renewals of this Agreement. Vehicle registration and vehicle 22 1192
identification numbers will serve as proof of age. Vehicles must meet all EPA and California emission standards.
b. Vehicle Operations:

The Contractor is responsible for ensuring that all relevant federal, state, and local regulations are complied with. The Contractor shall clearly demonstrate that insurance and liability coverage will be provided for drivers.

1.5.6. SYSTEM AND USER TRAINING
This South Shore Micro Transit Service is expected to be provided by the Contractor as a turnkey solution with minimal SS/TMA personnel resources needed to implement the service. However, the Contractor shall provide training and manuals for SS/TMA personnel needed to monitor, assess, access data, and develop reports using the dashboard and other tools provided by the Contractor. The Contractor shall also ensure adequate and complete training of drivers.

1.5.7. TECHNICAL SUPPORT
The Contractor shall provide ongoing technical support to both the public and the SS/TMA for the duration of the South Shore Micro Transit Service. The Contractor should indicate the level of technical support and ongoing monitoring that will be provided to ensure the system is functioning properly. Software upgrades should be provided as soon as they are available. Technical support could include but is not limited to:

A. Public Application and User Support:
• Phone and email responses to software failures or questions within 24 business hours • Assistance with questions on use of approved software configuration and software version
• Availability of experts to confer on software new release installation and fixes to bugs • Software upgrades
B. Vehicle Hardware Support:
• Troubleshooting hardware or network failure
• Assistance with technical recommendations focused on improving system performance

1.5.8. CUSTOMER SERVICE
Customer service shall be available to riders anytime the South Shore Micro Transit Service is in operation. The SS/TMA expects this service as part of the overall turnkey approach and will not have staff available to respond to customer service requests. • Riders shall have immediate access to customer service assistance via mobile application or phone call at any point in time when service is in operation. Customer service will be provided during service hours via the app. • Customer service concerns related to safety shall be addressed immediately and reported to the SS/TMA within two (2) hours.
• SS/TMA shall have access to all customer service comments, questions, requests, or complaints.

1.5.9. DRUG AND ALCOHOL TESTING
The Contractor shall establish and implement a drug and alcohol testing program that complies with 49 CFR Part 655, produce any documentation necessary to establish its compliance with Part 655, and permit any authorized representative of the United States Department of Transportation or its operating administrations, the applicable oversight agency of the State of Nevada, or SS/TMA to inspect the facilities and records associated with the implementation of the drug and alcohol testing program as required under 49 CFR Part 655 and review the testing 23 1193
process. The Contractor shall certify as soon as possible upon award of the resulting Agreement.

After the Agreement award date and initial certification, the Contractor shall certify annually its compliance with Part 655 before March 15 of each Agreement year and shall submit the Management Information System (MIS) reports before March 15 of each Agreement year to (TBD). To certify compliance the Contractor shall use the "Substance Abuse Certifications" in the "Annual List of Certifications and Assurances for Federal Transit Administration Grants and Cooperative Agreements," which is published annually in the Federal Register.

The Contractor agrees to carry out pre-employment and other drug testing as to all safetysensitive employees and sub-contractors performing safety-sensitive functions related to this service. The Contractor agrees to NOT hire or contract with any persons who test positive for substances prohibited under the approved contract or drug and alcohol policy to perform any services under this Agreement.

1.5.10. Americans With Disabilities Act Service Requirements Access Requirements for Individuals with Disabilities: The Contractor agrees to comply with, and assure that any sub-contractor or, or third-party contract or under this Project complies with all applicable requirements of the Americans with Disabilities Act of 1990 (ADA). Language from the Federal Transit Administration (FTA) Circular dated November 4, 2015 is included below for reference. Contractor is required to comply with any applicable updates:

1. U.S. DOT regulations, "Transportation Services for Individuals with Disabilities Act (ADA)," 49 CFR Part 37;
a. The following sections are relevant to the service provided by Contractor under this Agreement:
49 CFR Part 37 section 37.77(c)
“For purposes of this section, a demand responsive system, when viewed in its entirety, shall be deemed to provide equivalent service if the service available to individuals with disabilities, including individuals who use wheelchairs, is provided in the most integrated setting appropriate to the needs of the individual and is equivalent to the service provided other individuals with respect to the following service characteristics:
(1) Response time;
(2) Fares;
(3) Geographic area of service;
(4) Hours and days of service;
(5) Restrictions or priorities based on trip purpose;
(6) Availability of information and reservations capability; and (7) Any constraints on capacity or service availability” In addition to ensuring equivalent service, a transit agency must also ensure applicable ADA transit requirements are being met. FTA Circular 4701.1, Section 7.5 states: “With these services, agencies have the same obligations to ensure, for example, that service animals are allowed to accompany riders with disabilities and that portable oxygen is accommodated. The training requirements in section 37.173(1) can be particularly important. Vehicle Contractors, including taxi drivers and volunteer vanpool drivers, must be trained to proficiency on safely operating vehicles and equipment and on properly assisting and treating riders with disabilities”.
§37.173 Training requirements. Each public or private entity which operates a fixed route or demand responsive system shall ensure that personnel are trained to proficiency, as appropriate to their duties, so that they operate vehicles and equipment safely and properly assist and treat 24 1194
individuals with disabilities who use the service in a respectful and courteous way, with appropriate attention to the difference among individuals with disabilities.

2. U.S. DOT regulations “Americans with Disabilities Act (ADA) Accessibility Specifications for Transportation Vehicles”, 49 CFR Part 38;

3. U.S. DOT regulations, "Nondiscrimination on the Basis of Disability in Programs and Activities
Receiving or Benefitting from Federal Financial Assistance," 49 CFR Part 27; Exhibit A - Scope of Services
Attachment 1
(South Shore Micro Transit Service Area – Zone 1)
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EXHIBIT B

PAYMENT TERMS, CONTRACTOR

1. Payment amount
Contractor shall be paid for both fixed and variable costs as described herein. Variable Cost will include driver payroll and fuel at actual costs. The figures listed below for Variable Costs are estimates based on projected driver hours and fuel consumption. Actual Variable Cost invoices may vary.

Invoice
Date
Setup
Cost
Fixed
Cost
Variable Cost
(estimated) Invoice Includes
Total
Invoice
Amount
5/15/22 25,293 0 Setup Cost 25,293
6/15/22 0 98,102 0 June, July, Aug Fixed Cost 98,102
7/15/22 0 0 12,143 June Variable Cost 12,143
8/15/22 0 0 50,190 July Variable Cost 50,190
9/15/22 0 98,102 50,190 Sept, Oct, Nov Fixed Cost + Aug Variable Cost 148,291 10/15/22 0 0 37,321 Sept Variable Cost 37,321
11/15/22 0 0 31,835 Oct Variable Cost 31,835
12/15/22 0 98,102 30,808 Dec, Jan, Feb Fixed Cost + Nov Variable Cost 128,910 1/15/23 0 0 54,737 Dec Variable Cost 54,737
2/15/23 0 0 54,737 Jan Variable Cost 54,737
3/15/23 0 98,102 49,440 Mar, Apr, May Fixed Cost + Feb Variable Cost 147,542 4/15/23 0 0 54,737 Mar Variable Cost 54,737
5/15/23 0 0 30,808 Apr Variable Cost 30,808
6/15/23 0 0 31,835 May Variable Cost 31,835
7/15/23 0 0 36,428 (3/4) June Variable Cost 36,428
Total 25,293 392,406 525,211 942,910
a. Non-authorized expenses
Reimbursement of travel, lodging, and miscellaneous expenses is not authorized. All expenses of Contractor, including any expert or professional assistance retained by Contractor to complete the work performed under this Agreement shall be borne by the Contractor.

The total of all payments made under this agreement shall not exceed the amount shown in Section 3 of this Agreement.

2. Invoice Requirements
The Contractor must submit written invoices monthly to the SS/TMA by the 15th of each month for authorized expenses incurred in the preceding full month. For example, the invoice for the month of January would be due by February 15. Should the 15th fall on a weekend or holiday, the invoice will be due on the next business day.

The monthly invoices must include both fixed and variable costs, must be in a format approved by the SS/TMA, and must contain sufficient detail as required by the SS/TMA. 26 1196
Work performed and expenses incurred by Contractor will be subject to final acceptance by the SS/TMA project manager(s).

Submit all invoices to:

SS-TMA
Attn:

PO Box 1875
Zephyr Cove, NV 89448

3. Payment Timing
The SS/TMA will make payment within thirty (30) days after the billing is received and approved by SS/TMA and as outlined below. Incomplete or inaccurate invoices shall be returned to the Contractor unapproved for correction. Invoices shall be submitted in a format agreed upon by the SS/TMA and the Contractor.
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EXHIBIT C

PARKING FACILITIES
SS/TMA will provide a location for Contractor to park Contractor-owned vehicles and employeeowned vehicles while on shift for services under this Agreement. Contractor’s employees may not park their personal vehicles overnight in the SS/TMA-provided space. Neither the SS/TMA or the owner of the parking facility will be responsible for damage or vandalism to or theft from vehicles parked in designated areas.
28 1198
SS/TMA Funding Agreement with TRPA, Exhibit B, Page 1 of 1 Exhibit B: Estimated Program Budget
Budget Item Quantity Cost
Transit service – South Shore
On-Demand One year = 365 days $942,910
Program Management Part time, one year Not to exceed $52,000 Accounting Services Part time, one year Not to exceed $15,000 Marketing/Advertising One year Not to exceed $30,000
Total $1,039,910
Downtowner Estimated
Invoicing Year 1
Invoice Date
Setup
Cost
Fixed
Cost
Variable
Cost Invoice Includes
Total Invoice
Amount
5/15/22 25,293 0 Setup Cost 25,293
6/15/22 0 69,578 0 June, July, Aug Fixed Cost 69,578
7/15/22 0 0 14,520 June Variable Cost 14,520
8/15/22 0 0 59,698 July Variable Cost 59,698
9/15/22 0 69,578 59,698
Sept, Oct, Nov Fixed Cost
+ Aug Variable Cost 129,275
10/15/22 0 0 46,829 Sept Variable Cost 46,829
11/15/22 0 0 41,343 Oct Variable Cost 41,343
12/15/22 0 69,578 40,316
Dec, Jan, Feb Fixed Cost
+ Nov Variable Cost 109,894
1/15/23 0 0 64,245 Dec Variable Cost 64,245
2/15/23 0 0 64,245 Jan Variable Cost 64,245
3/15/23 0 69,578 58,948
Mar, Apr, May Fixed Cost
+ Feb Variable Cost 128,526
4/15/23 0 0 64,245 Mar Variable Cost 64,245
5/15/23 0 0 40,316 Apr Variable Cost 40,316
6/15/23 0 0 41,343 May Variable Cost 41,343
7/15/23 0 0 43,559 (3/4) June Variable Cost 43,559
Total 25,293 278,310 639,307 942,910
Funding Agreement Exhibit B
29 1199
SS/TMA Program Manager Agreement, Page 1 of 4
SS/TMA Program Manager Scope of Services
Draft 4.1.2022

1.1 MICROTRASNIT PROGRAM BACKGROUND
The goal of the Project is to improve transportation options and mobility for residents and visitors travelling within Lake Tahoe’s South Shore within Douglas and El Dorado Counties and the City of South Lake Tahoe (City) or trying to connect with the regional transit system. This service will connect with Tahoe Transportation District’s (TTD’s) overall operation by adding a free and frequent “Microtransit” model to the fixed-route system. Microtransit provides shorter trips in duration with vehicles that are smaller than traditional transit vehicles using an app to provide riders the ability to reserve a ride in real-time through a smartphone application and software platform. The service will perform like a continuous vanpool and will dynamically route vehicles to meet riders demand, saving riders time compared to fixed-route options and replacing single-occupancy vehicle trips. The Microtransit Service will also complement the micromobility scooter-share program in the City.

1.2 PROGRAM OBJECTIVES
• Ensure that the turnkey Microtransit Service solution, provided by Operator as detailed in the Service Agreement, is fulfilled.
• Improve alternative transportation options within South Shore communities compared to personal vehicles or traditional single occupancy transportation networking companies (i.e. Uber, Lyft) through competitive or reduced travel times, convenience, cost effectiveness and improved overall trip experience.
• Reduce congestion and improve traffic flow by reducing vehicles on the road. • Test the impact of a Mobility on Demand Rideshare Service to inform future expansion and vehicle electrification opportunities.
• Acquire data to allow for detailed analysis of service performance and opportunities for improvements, including Tahoe South Event Center performance requirements Figure 1: South Shore Service Map
Funding Agreement Exhibit C
30 1200
SS/TMA Program Manager Agreement, Page 2 of 4

1.3 DETAILED SCOPE OF WORK TASKS

1.3.1. PROJECT MANAGEMENT
Project management will be a key responsibility of the Operator and a continuous function.

The SS/TMA has designated a Program Manager (PM), overseen by the SS/TMA Board of directors Executive Committee (Committee) to coordinate all project activities with the Operator.

In the area of Project Management, the PM and Committee shall:
• Schedule and facilitate a kick-off meeting and meetings at key milestones, field reviews, advisory and/or stakeholder group meetings, and other project related meetings. • Maintain and update the work plan as approved by the SS/TMA. • Develop and maintain an overall project schedule to ensure milestones are met in an efficient manner.
• Ensure that individuals performing tasks have appropriate skill levels and credentials. • Coordinate all required deliverables including, service operations, vehicle acquisition, hiring of Operator, vehicle wrapping or decals/branding, installation and configuration of software and hardware, marketing and advertising, financial accounting, documentation and training, and performance monitoring and reporting.
• Be available and responsive to requests for information, inspections, or meetings

1.3.2. PERFORMANCE MONITORING AND REPORTING
The Operator will provide regular reporting as included in the Service Agreement.

The PM is responsible for:

A. Performance Reporting
• Regular Performance Monitoring. the PM is responsible for reviewing and disseminating regular monitoring reports to the funding partners (“Parties” to the funding agreement(s). Reporting and analysis tools will be built into the technology platform and open to the SS/TMA for regular use.

All data collected as part of the Microtransit Service will be openly shared with the SS/TMA and is the property of the SS/TMA. The Operator will create custom reports as requested by the SS/TMA. Reports shall allow for daily, weekly, monthly assessment of the Microtransit Service so that changes can be made to improve service and ridership if deemed necessary by the SS/TMA.
• SS/TMA Reports. The PM is responsible for using data provided by the Operator to create understandable and visually appealing reports for the SS/TMA Board to convey key performance metrics to their constituents.
• Performance Evaluation Reports. The PM is responsible for coordinating with the Tahoe Douglas Visitor Authority (TDVA) and Tahoe South Event Center (TSEC) stakeholder group and quarterly and annual reporting requirements.

B. Accident/Incident Reporting:
• The PM will work with the Operator to implement and maintain formal procedures for response to accidents, incidents, service interruptions, and complaints. • The PM will be responsible for summarizing incident reports for vehicle and non-vehicle incidents, accidents, and collisions during performance of this contract.

1.3.3. FINANCIAL ACCOUNTING AND COORDINATION
A professional accountant and tax preparer are ultimately responsible for financial accountability.

The PM is responsible for:
• Tracking and reporting on cash flow, through a monthly profit-and-loss report. • Basic financial forecasting to identify any potential funding gaps. • Specific reporting required by individual Funding Agreements with funding partners. • Funding Partner Agreement coordination with the Committee. 31 1201
SS/TMA Program Manager Agreement, Page 3 of 4

1.3.4. MARKETING/ADVERTISING
A marketing firm will take primary responsibility for developing collateral and gaining media attention for the Microtransit Service.

The PM is responsible for:
• Coordinating between the marketing firm and the Committee. • Advising on messages and tactics
• Supporting a ribbon cutting event around June 24th, 2022 • Drafting press releases

1.3.5. TECHNICAL SUPPORT
The Operator will provide ongoing technical support to both the public and the SS/TMA for the duration of the Microtransit Service. This Microtransit Service is expected to be provided by the Operator as a turnkey solution with minimal SS/TMA staff resources needed to implement the service. However, the Operator will provide training and manuals for the PM needed to monitor, assess, access data, and develop reports using the dashboard and other tools provided by the Operator.

1.3.6. CUSTOMER SERVICE
Customer service shall be available to riders anytime the Microtransit Service is in operation. The SS/TMA expects this service as part of the overall turnkey approach and will not have staff available to respond to customer service requests. The PM is responsible, in coordination with the Committee, for ensuring funding partners are satisfied with the service and reporting.

1.5 FEE SCHDULE AND PAYMENT TERMS
A. Payment amount
• Wages. The PM will receive $45 per hour, up to 20 hours per week on a 4-week rolling average, billed to the following Tasks with estimated average percentage of time per Task:

TASK Estimated average % time

1.3.1. PROJECT MANAGEMENT 60%

1.3.2. PERFORMANCE MONITORING & REPORTING 15%

1.3.3. FINANCIAL ACCOUNTING & COORDINATION 10%

1.3.4. MARKETING/ADVERTISING 10%

1.3.5. TECHNICAL SUPPORT 5%
• Travel. The PM will be reimbursed for a maximum of four (4) trips, for a total cost not to exceed $10,000 to South Lake Tahoe. Reimbursable expenses are limited to:
o Round-trip transportation by personal vehicle (federal mileage rate), air (not including business or first class), or public transportation (fare reimbursement); and rental car if needed.
o Overnight accommodation unless acceptable accommodation is provided by SS/TMA, not to exceed $200 per night including fees.
o Per diem to cover meals and incidental expenses.

SS/TMA has the authority to adjust the budget within the terms of this Agreement.

B. Invoice Requirements
The PM will submit invoices to the Committee on a monthly basis.

C. Payment Timing
The SS/TMA will make payment within thirty (30) days after the billing is received and approved. [SIGNATURES ON THE FOLLOWING PAGE]
32 1202
SS/TMA Program Manager Agreement, Page 4 of 4
IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Agreement as of __________, 2022:

SOUTH SHORE TRANSPORTATION MANAGEMENT ASSOCIATION
NAME, TITLE _________________
SIGNED_______________________
DATE_________________________

CONTRACTOR
NAME________________________
SIGNED_______________________
DATE_________________________
33 1203
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 25
Agenda Item: Amendments to City Manager Employment Agreement Executive Summary: The proposed resolution would amend the Employment Agreement with the City Manager to increase his base salary, effective at the start of the 2022-2023 Fiscal Year on October 1, 2022. Based on a salary survey of comparable agencies, the City Manager's salary was found to be approximately 17 percent below the labor market median, and the total compensation about 20 percent below the labor market median. The City Manager recently received a favorable performance evaluation from the City Council. The proposed amendments update Section 2.1 to increase the City Manager's base compensation from $178,500 to $196,350, and update Section 2.2 to include an annual cost of living increase, beginning on October 1, 2023. These changes are necessary to compensate the City Manager fairly and competitively.

Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Mayor to execute the Amended and Restated City Manager Employment Agreement increasing base compensation from $178,500 to $196,350 (effective October 1, 2022), and beginning in October 2023, adjusting annually for cost of living based on the lower of the San Francisco-Oakland-Hayward Urban All Items index or any salary increase provided to unrepresented employees, consistent with Government Code section 3511.2.

Responsible Staff Member: Tom Stuart, Assistant to the City Manager Responsible Staff Member: Tom Stuart, (530) 542-6052 Assistant to the City Manager II Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff_Report_-_Amendment_to_City_Manager_Employment_Agreement_.docx 02-Resolution_-_Amendments_to_the_City_Manager_Employment_Agreement (1).docx 03-(Redline) Amendments to City Manager Employment Agreement.pdf 04-Amended and Restated Employment Agreement with City Manager (Exh. A to Reso.).docx 05-CM Salary Table 2022.pdf
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Council Agenda Report May 3, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Amendments to City Manager Employment Agreement
Location: Citywide
Responsible Staff Member: Tom Stuart, Assistant to the City Manager II (530) 542-6052 Background: Pursuant to the employment agreement between the City of South Lake Tahoe and Joseph Irvin, City Manager, Mr. Irvin is to receive a performance evaluation twice annually. On April 5, 2022 Mr. Irvin met in closed session with the City Council of South Lake Tahoe for the purpose of his performance evaluation. To assist with this evaluation, outside input from two agency partners and two internal senior staff members was requested. The purpose of the outside agency and internal staff members input is help Council gain a perspective of how Mr.

Irvin interacts with agency partners and staff. The results of outside and staff input and Council’s evaluation were all extremely positive.

Issue and Discussion: In preparation for the performance evaluation staff was instructed to conduct a salary survey for the City Manager to determine the City Manager’s compensation compared to other similar positions in other jurisdictions. Staff evaluated 11 comparative agencies, the comparator agencies are the same agencies that were used in 2018 citywide salary survey and have been used in individual salary surveys conducted since 2018. The agencies used were City of Auburn, City of Carson City, City of Folsom, City of Lincoln, City of Placerville, City of Reno, City of Rocklin, City of Sparks, El Dorado County, Town of Mammoth Lakes, and the Town of Truckee. The results of the survey found the South Lake Tahoe City Manager’s base salary is

17.35 percent below the market median compensation level of similar positions, and total compensation (including benefits) is 20.43 percent below market median.

In order to compensate the City Manager fairly and competitively and in recognition of his continued outstanding performance, City Council is requested to approve the below amendments to the Employment Agreement with Mr. Irvin.

The changes to the Employment Agreement are outlined below:
(1) Section 2.1 (Compensation)
Increase base compensation from $178,500 to $196,350. This increase will be effective October 1, 2022.
(2) Section 2.2 (Compensation)
Beginning October 1, 2023 IRVIN’s BASE SALARY shall be automatically adjusted annually for cost of living based on the lower of the San Francisco-Oakland-Hayward Urban All Items index or any salary increase provided to unrepresented employees, consistent with Government Code 1205
Council Agenda Report May 3, 2022 Page 2 of 2
section 3511.2. Additionally, IRVIN’s BASE SALARY shall be reviewed annually by City Council for consideration of a discretionary, performance-based increase, at the sole discretion of the City Council. Any discretionary, performance-based increase shall be effective only through approval of an amendment to this AGREEMENT.

All other terms and conditions of the City Manager employment agreement remain unchanged.

With this increase the City Manager’s base salary will be about 7 percent below the median for similar positions.

Financial Implications: No current fiscal implications as the increases will be included in the 2022-2023 fiscal budget.
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Resolution 2022-XXX May 3, 2022 Page 1 of 3
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
May 3, 2022
Amendments to the City Manager Employment Agreement

BACKGROUND
A. On April 5, 2022, in closed session, City Manager Joseph Irvin received a positive performance evaluation.

B. In recognition of his performance and to compensate Mr. Irvin competitively with the market, City Council is requested to approve amendments to the Employment Agreement with Mr. Irvin.

C. The proposed changes to the Employment Agreement are as follows:
(1) Section 2.1 (Compensation)
Increase base compensation from $178,500 to $196,350. The increase will be effective October 1, 2022.
(2) Section 2.2 (Compensation)
Beginning October 1, 2023 IRVIN’s BASE SALARY shall be automatically adjusted annually for cost of living based on the lower of the San Francisco-Oakland-Hayward Urban All Items index or any salary increase provided to unrepresented employees, consistent with Government Code section 3511.2. Additionally, IRVIN’s BASE SALARY shall be reviewed annually by City Council for consideration of a discretionary, performance-based increase, at the sole discretion of the City Council. Any discretionary, performance-based increase shall be effective only through approval of an amendment to this AGREEMENT.

All other terms and conditions of the City Manager employment agreement remain unchanged.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Authorizes and directs the Mayor to execute the City Manager Employment Agreement attached hereto as Exhibit A.

2. Authorizes any other action be taken to implement the above. 1207
Resolution 2022-XXX May 3, 2022 Page 2 of 3
Adopted by the City of South Lake Tahoe City Council on May 3, 2022 by the following vote:

Yes:

No:

Absent:

CITY MANAGER EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“AGREEMENT”) is made and entered into this 2nd 3rd day of NovemberMay, 2021 2022 by and between the City of South Lake Tahoe (the “CITY”), a California municipal agency, and Joseph D. Irvin (“IRVIN”), an individual.

The CITY and IRVIN are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. The CITY desires to employ the services of IRVIN as its City Manager to carry out the duties and responsibilities of City Manager, as provided for by the South Lake Tahoe City Code, in exchange for the consideration discussed in and subject to the terms, conditions, and benefits set forth in this AGREEMENT; and
B. IRVIN desires to accept employment as City Manager in exchange for the consideration discussed in and subject to the terms, conditions, and benefits set forth in this AGREEMENT; and
C. IRVIN represents that he is fully qualified and available to carry out the City Manager services necessary to complete the work in a timely and competent manner; and D. The CITY has determined that it is beneficial to hire IRVIN by virtue of his relevant qualifications and experience.

E. The original Employment Agreement became effective on April 14, 2020, and IRVIN commenced the performance of his duties as City Manager on May 4, 2020.

OPERATIVE PROVISIONS
In consideration of the promises and covenants contained herein, the Parties agree as follows:

1. Position and Duties.

1.1 Position. IRVIN accepts employment with the CITY as its City Manager and shall perform all functions, duties and services set forth in Section 1.4 of this AGREEMENT and Chapter 2.10 of the South Lake Tahoe City Code. IRVIN shall provide executive management services to and on behalf of the CITY, as directed by the City Council of the City of South Lake Tahoe (“City Council”) and as set forth under law, including, but not limited to, the South Lake Tahoe City Code, as they presently exist or as they may be changed from time to time in the future.

1.2 Term. This AGREEMENT shall end upon the earlier of: (i) April 14, 2026; or (ii) upon termination of the AGREEMENT by either IRVIN or the CITY as provided in Section 4 of this AGREEMENT. Unless earlier terminated as provided in Section 4, IRVIN shall provide notification and reminder to the City Council of the anticipated termination of the AGREEMENT on April 14, 2026, on or before October 14, 2025.
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2 1.3 At-Will. IRVIN acknowledges that he will be an at-will, exempt employee of the CITY, and that he shall serve at the pleasure of the City Council. Nothing in this AGREEMENT is intended to, or does, confer upon IRVIN any right to any property interest in continued employment, or any due process rights, including but not limited to a hearing before or after a decision by the City Council to terminate his employment, except as is expressly provided in Section 1.2 or Section 4 of this AGREEMENT. Nothing contained in this AGREEMENT shall in any way prevent, limit or otherwise interfere with the right of the CITY to terminate the services of IRVIN, as provided in Section 1.2 and Section 4. Nothing in this AGREEMENT shall prevent, limit or otherwise interfere with the right of IRVIN to resign at any time from this position with the CITY, subject only to the provisions set forth in Section 1.2 and Section 4.

1.4 Duties. IRVIN shall serve as City Manager and shall be for the term of this AGREEMENT vested with the powers, duties and responsibilities of the City Manager as set forth in relevant provisions of the South Lake Tahoe City Code, as amended from time to time, and ordinances and resolutions of the City Council, and to perform other legally permissible and proper duties and functions as the City Council may from time to time assign. It is the intent of the City Council for the City Manager to function as the chief executive officer of the CITY. IRVIN shall be responsible for the efficient administration of all the affairs of the CITY which are under his control and perform his obligations and responsibilities diligently within the time parameters specified by the City Council, applying a high degree of professionalism, ethics, integrity and good workmanship to every aspect of his obligations. Without additional compensation, IRVIN shall provide such other services as are customary and appropriate to the position of City Manager.

IRVIN shall devote his best efforts and full-time attention to the performance of these duties.

1.5 Hours of Work. IRVIN shall perform all duties that may arise under this AGREEMENT to the best of his ability in accordance with the highest professional and ethical standards of the profession, including, but not limited to, devoting full-time attention to those duties as necessary to meet the goals and objectives of the City Council as established according to the terms of this AGREEMENT. The Parties anticipate that IRVIN will work during regular business hours of the CITY and hours outside of regular business hours, including, but not limited to attendance at regular and special City Council meetings, and attendance at such community events and CITY functions as the City Council may direct.

Toward that end, IRVIN shall be allowed reasonable flexibility in setting his own office hours, provided the schedule of such hours provides a significant presence at City Hall, reasonable availability to the City Council, City staff, and members of the community during regular CITY business hours and for the performance of his duties and of CITY business. Provided the City Council is at any time dissatisfied with the City Manager’s schedule, the City Council has the authority to establish a different work schedule which shall be binding on the City Manager.

The position of the City Manager is an exempt position pursuant to the Fair Labor Standards Act and any other relevant provisions of federal or State law.

1.6 Other Activities. During the period of his employment, IRVIN shall not accept any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity, whether or not to pecuniary advantage, that is or may be competitive with the CITY, that might cause a conflict of interest with the CITY, or that otherwise might interfere 1211
3 with the business or operation of the CITY or the satisfactory performance of IRVIN’s duties as the City Manager. During the period of his employment, IRVIN shall not accept any other employment or serve as a consultant or independent contractor for any other public or private organization or entity without the prior written consent of the City Council.

1.7 Reimbursement. The CITY shall reimburse IRVIN for reasonable and necessary travel and other business expenses incurred by IRVIN in the performance of his duties. All reimbursements, other than those specifically identified in the AGREEMENT, shall be subject to and in accordance with California law and applicable CITY reimbursement policies.

2. Compensation.

2.1 In consideration for IRVIN’s performance of the City Manager duties and obligations as set forth in this AGREEMENT, the CITY agrees to pay IRVIN an annual base salary of $178,500 (“BASE SALARY”), payable in installments at the same time as other management employees of the CITY and in accordance with law and established CITY procedure. As of October 1, 2022, IRVIN’s BASE SALARY will increase to $196,350.

2.2 Thereafter, beginning October 1, 2023, IRVIN’s BASE SALARY shall be automatically adjusted annually for cost of living based on the lower of the San FranciscoOakland-Hayward Urban All Items index or any salary increase provided to unrepresented employees, consistent with Government Code section 3511.2. Additionally, IRVIN’s BASE SALARY shall be eligible for being reviewed annually by City Council for consideration of a discretionary, performance-based increase, at the sole discretion of the City Council. Any discretionary, performance-based increase shall be effective only through approval of an amendment to this AGREEMENT.

2.3 Deferred Compensation. Subjected to any requirements stated in applicable CITY’s deferred compensation documents and CITY’s resolutions, policies and procedures, CITY agrees to make a $19,000 annual contribution toward IRVIN’s deferred compensation (401(a)) account established with the CITY.

3. Benefits.

3.1 General Benefits. Except as modified by this AGREEMENT, IRVIN shall be entitled to the benefits authorized by the City Council for unrepresented employees/appointees as set forth in the following sections of Resolution No. 2020-94 (Exhibit 1), Resolution No. 2017-64 (Exhibit 2) and subject to any amendments to or repeal of these resolutions. • Resolution No. 2020-94, Section 1(b) (457 Matching Contribution):

City Manager is eligible to receive up to $3,500 per year in the nonPERSable 457 matching contribution benefit to his 457 investment account on a dollar-for-dollar basis upon the execution of this AGREEMENT.
• Resolution No. 2020-94, Section 1(e)-(f) (Medical Plan): City Manager will be afforded the opportunity to participate in the CITY’s Medical Plan Blue Shield High Deductible Plan, and if 1212
4 IRVIN participates in this plan, CITY will pay 100 percent of the premium, as well as annual City contributions to IRVIN’s Health Savings Account in the amount of $2,300 for IRVIN only or $4,200 for IRVIN and family. Alternatively, IRVIN may elect to buy-up to Blue Shield PPO 750, PPO 5050 , or PPO 250 at his own expense, or be eligible to opt-out of the City’s medical plan with evidence of medical coverage provided elsewhere and receive on a pay period basis an “opt out” non-PERSable payment of $3000 per year for IRVIN only or $4000 per year for IRVIN and family. CITY will make available dental and vision coverage for IRVIN and family. • Resolution No. 2017-64, Section 10 (Paid Time-off): paid time off shall accrue at the executive management team rate.
• Resolution No. 2017-64, Section 11 (Other Benefits): Management Incentive/Education Pay; Tuition Reimbursement and Bi-Lingual Pay; Standard Holidays, Mileage and Business Reimbursements as provided to other administrative employees.

3.2 Administrative Leave. In accordance with the CITY policy on administrative leave for employees exempt from overtime pay, dated June 27, 1991, and as may be amended or repealed, IRVIN shall accrue 100 hours of administrative leave per year.

3.3 Vehicle Allowance. For travel within El Dorado County, IRVIN shall receive a vehicle allowance of $250 per month to maintain and operate his personal vehicle. For travel outside El Dorado County, IRVIN shall be reimbursed at the per-mile rate established by the City Council for all the other CITY administrative employees. At the sole discretion of the City Council, the monthly vehicle allowance for travel within El Dorado County shall be reviewed by City Council periodically, if necessary, for consideration of increase.

3.4 Dues and Subscriptions. The CITY agrees to pay for reasonably necessary professional dues and subscriptions for IRVIN’s continuation and full participation in national, regional, state and local associations and organizations that enhance his professional development and benefit the CITY, as City Manager. These organizations shall include, but not limited to, the International City/County Management Association (ICMA) and any California City Manager Associations.

3.5 Professional Development Opportunities. The CITY agrees to pay for reasonably necessary travel and subsistence expenses for IRVIN’s professional and official travel, meetings, and occasions, such as International City/County Management Association (ICMA) Conferences, any California City Manager Associations’ Conferences and League of California Cities Conferences, to continue his professional development as City Manager and to adequately pursue reasonably necessary official functions for the CITY.

3.6 Bonding. The CITY shall bear the full cost of bonding of any fidelity or other bonds required of the City Manager under any applicable law, regulations and/or ordinance.

Commented [A1]: The other PPO plans listed no longer exist under the City’s plan. Per HR, the only remaining plans are the HDHP and the PPO 500 (not 550).
1213
5 3.7 Retirement Benefits. The CITY shall enroll IRVIN in CalPERS after IRVIN starts his employment with the CITY, subjected to the terms and conditions required by CalPERS and applicable CITY policies.

3.8 Relocation Expense Reimbursement. The CITY shall reimburse IRVIN for any actual expenses associated with his family’s relocation, including transportation expenses, from Healdsburg to South Lake Tahoe, not to exceed $2,500.00 in total.

3.9 Mentor Services. The CITY and IRVIN may mutually agree that the CITY will arrange for mentor services for IRVIN’s benefit, which services shall be provided by a mutually agreeable member of the ICMA.

3.10 No Reduction in Benefits. The CITY agrees, at any time during the term of the AGREEMENT, not to reduce the BASE SALARY, compensation and any other benefit included under this AGREEMENT, except to the degree that such a reduction occurs across the board for all the unrepresented employees/appointees on the executive management team of the CITY.

4. Separation.

4.1 Resignation. IRVIN may resign at any time and agrees to give the CITY a minimum of sixty (60) days advance written notice of the effective date of the resignation unless the Parties otherwise agree in writing. The City Council shall have the option, in its discretion, to make IRVIN’s termination effective at any time prior to the end of such period, provided the CITY pays IRVIN all compensation as set forth in Section 2.1 then due through the last day actually worked.

4.2 Retirement. Notwithstanding the notice requirement set forth in Section 4.1, if IRVIN retires from full time public service with the CITY, IRVIN shall provide the CITY with a minimum of four (4) months’ advance notice. IRVIN’s retirement date will be mutually established.

4.3 Termination. For purpose of this AGREEMENT, termination shall occur when:
1 By Expiration of the Term. The term of the AGREEMENT as set forth in Section 1 ends – i.e., on April 14, 2026.
2 By City. This AGREEMENT may be terminated by the CITY for any reason if the majority of the City Council votes to terminate the AGREEMENT at a properly noticed and duly authorized meeting. This subsection is subject to the limitations set forth in the City of South Lake Tahoe Municipal Code Section 2.10.030.

4.4 Separation Obligations. IRVIN agrees that all property, including but not limited to all equipment, tangible Proprietary Information (as defined below), documents, records, notes, contracts, and computer-generated materials furnished to or prepared by him incident to his employment belongs to the CITY and shall be returned promptly to the CITY upon employment separation. IRVIN’s obligations under this subsection shall survive his employment separation and the termination of this AGREEMENT.
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6 5. Severance.

5.1 If the AGREEMENT is terminated by the CITY without cause, the CITY agrees to provide a severance equal to the lesser of the number of months remaining on the AGREEMENT, or six (6) times his then current monthly BASE SALARY.

5.2 The severance pay provisions of Section 5.1 are subject to and shall be interpreted to comply with the limitations set forth in Government Code Section 53260. Any severance shall be paid in a lump sum or in equal amounts distributed over the usual pay schedule, as mutually agreed by the CITY and IRVIN. An election to receive severance pay distributed over the usual pay schedule does not extend the period of employment beyond the CITY-established termination date.

5.3 If IRVIN is unable to perform the requisite duties expected under this AGREEMENT because of sickness, accident, mental incapacity, or health with reasonable accommodation, for a period of one month following exhaustion of accumulated sick leave, then the CITY shall have the option to terminate this AGREEMENT and, notwithstanding the provisions of Section 5.1 above, IRVIN shall not be entitled to severance. If IRVIN is terminated because of permanent disability, IRVIN shall be compensated in a lump sum for any accrued vacation or other benefits to the extent such compensation is required by law.

5.4 Notwithstanding Section 5.1 above, the CITY shall not be obligated to pay any compensation, benefits, or severance under the provisions of this AGREEMENT if IRVIN is terminated for cause, including, without limitation, because of a criminal conviction, criminal plea bargain, or adverse State Attorney General, Grand Jury or Fair Political Practices Commission determination involving any felony, intentional tort, crime of moral turpitude, or violation of statute or law constituting forfeiture of office, misconduct in office, misuse of public funds, or conflict of interest. During the proceedings which may be necessary for the CITY to confirm the cause for termination hereunder, the CITY may place IRVIN on paid administrative leave.

5.5 Pursuant to Government Code Section 53243.3, all of the following requirements apply:
1 If this AGREEMENT is terminated, any cash settlement related to the termination that IRVIN may receive from the CITY shall be fully reimbursed to the CITY if IRVIN is convicted of a crime involving an abuse of his office or position as defined by Government Code Section 53243.4. 2 If any express or implied provision of this AGREEMENT, the South Lake Tahoe City Code, or any policy or practice of the CITY provide paid leave salary to IRVIN pending an investigation, this paid leave salary shall be fully reimbursed by IRVIN to the CITY if IRVIN is convicted of a crime involving an abuse of his office or position as defined by Government Code Section 53243.4.
3 If any express or implied provision of this AGREEMENT, the South Lake Tahoe City Code, or any policy or practice of the CITY provide for payment of funds for the legal criminal defense of IRVIN, the funds paid for his legal 1215
7 defense shall be fully reimbursed by IRVIN to the CITY if IRVIN is convicted of a crime involving an abuse of his office or position as defined by Government Code Section 53243.4.

6. Performance Evaluations.

The City Council and IRVIN shall annually develop mutually agreed upon performance goals and criteria which the City Council shall use in reviewing IRVIN’s performance in the following year.

IRVIN could be eligible for a performance bonus based on the City Council’s determination that IRVIN had significantly exceeded the mutually established and quantifiable objectives. Payment of this bonus in any year is at the sole discretion of the City Council and must be in the best interests of the CITY at the time it is made.

7. Proprietary Information.
“Proprietary Information” is all information and any idea pertaining in any manner to the business of the CITY (or any CITY affiliate), its employees, clients, consultants, or business associates, which was produced by any employee of the CITY in the course of his employment or otherwise produced or acquired by or on behalf of the CITY. All Proprietary Information not generally known outside of the CITY’s organization, and all Proprietary Information so known only through improper means, shall be deemed “Confidential Information.” During his employment by the CITY, IRVIN shall use Proprietary Information, and shall disclose Confidential Information, only for the benefit of CITY and as is or may be necessary to perform his job responsibilities under this AGREEMENT. Following termination, IRVIN shall not use any Proprietary Information and shall not disclose any Confidential Information, except with the express written consent of the CITY. IRVIN’s obligations under this Section shall survive the termination of his employment and the expiration of this AGREEMENT.

8. Conflict Of Interest.

IRVIN represents and warrants to the CITY that he presently has no interest, and represents that he will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or interfere in any way with performance of his duties under this AGREEMENT.

9. General Provisions.

9.1 Recitals. The recitals, inclusive of all facts and representations, are incorporated into this AGREEMENT as if set forth in the Operative Provisions.

9.2 Vehicle Operation. IRVIN shall operate any vehicle used in connection with the performance of his duties as City Manager in a safe manner and otherwise in observance of all established CITY vehicle operation rules and policies, traffic safety laws and other applicable State 1216
8 laws and shall maintain a valid California automobile’s driver’s license during the period of employment.

9.3 Notices. All notices, requests, demands and other communications under this AGREEMENT shall be in writing and shall be effective upon delivery by hand or email three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to the CITY at the address below, and/or at the last known address maintained in IRVIN’s personnel file. IRVIN agrees to notify the CITY in writing of any change in his address during his employment with the CITY. Notice of change of address shall be effective only when accomplished in accordance with this Section.

City’s Notice Address:

City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Attn: Mayor and City Council
City Manager’s Address:

Joseph D. Irvin
[Deliver to last updated address in personnel file]

9.4 Indemnification. Subject to, in accordance with, and to the extent provided by the Government Claims Act [Government Code Section 810 et seq.], the CITY will indemnify, defend, and hold IRVIN harmless from and against any action, demand, suit, monetary judgment or other legal or administrative proceeding, and any liability, injury, loss or other damages, arising out of any act or omission occurring during IRVIN’s tenure as City Manager while IRVIN was performing his duties as City Manager.

9.5 Integration. This AGREEMENT is intended to be the final, complete, and exclusive statement of the terms of IRVIN’s employment by the CITY. This AGREEMENT supersedes all other prior and contemporaneous agreements and statements, whether written or oral, express or implied, pertaining in any manner to the employment of IRVIN, and it may not be contradicted by evidence of any prior or contemporaneous statements or agreements. To the extent that the practices, policies, or procedures of the CITY, now or in the future, apply to IRVIN and are inconsistent with the terms of this AGREEMENT, the provisions of this AGREEMENT shall control.

9.6 Amendments. This AGREEMENT may not be amended except in a written document signed by IRVIN, approved by the City Council and signed by the Mayor.

9.7 Waiver. Failure to exercise any right under this AGREEMENT shall not constitute a waiver of such right.

9.8 Assignment. IRVIN shall not assign any rights or obligations under this AGREEMENT. The CITY may, upon prior written notice to IRVIN, assign its rights and obligations hereunder.
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9 9.9 Severability. If a court or arbitrator holds any provision of this AGREEMENT to be invalid, unenforceable, or void, the remainder of this AGREEMENT shall remain in full force and effect.

9.10 Governing Law. This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California, with venue proper only in El Dorado County, California.

9.11 Interpretation. This AGREEMENT shall be construed as a whole, according to its fair meaning, and not in favor of or against any Party. By way of example and not in limitation, this AGREEMENT shall not be construed in favor of the Party receiving a benefit, nor against the Party responsible for any particular language in this AGREEMENT. This AGREEMENT may be altered, amended or modified only by an instrument in writing, executed by the Parties to this AGREEMENT and by no other means. Each Party waives their future right to claim, contest or assert that this AGREEMENT was modified, cancelled superseded or changed by any oral AGREEMENT, course of conduct, waiver or estoppel.

9.12 Acknowledgment. IRVIN acknowledges that he has had the opportunity to consult legal counsel in regard to this AGREEMENT, that he has read and understands this AGREEMENT, that he is fully aware of its legal effect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained in this AGREEMENT.

IN WITNESS WHISEOF, the CITY has caused this AGREEMENT to be signed and executed on its behalf by its Mayor and IRVIN has signed and executed this AGREEMENT effective as of the date set forth above.on November 2, 2021.

CITY MANAGER CITY OF SOUTH LAKE TAHOE
____________________________ ___________________________ Joseph D. Irvin Tamara WallaceDevin Middlebrook,
Mayor
APPROVED AS TO FORM:
___________________________
Heather Stroud, City Attorney
ATTEST:
_________________________________
Susan Blankenship, City Clerk
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10 1219
1 AMENDED AND RESTATED

CITY MANAGER EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“AGREEMENT”) is made and entered into this 3rd day of May, 2022 by and between the City of South Lake Tahoe (the “CITY”), a California municipal agency, and Joseph D. Irvin (“IRVIN”), an individual. The CITY and IRVIN are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

E. The original Employment Agreement became effective on April 14, 2020, and IRVIN commenced the performance of his duties as City Manager on May 4, 2020.

OPERATIVE PROVISIONS
In consideration of the promises and covenants contained herein, the Parties agree as follows:

1. Position and Duties.

1.2 Term. This AGREEMENT shall end upon the earlier of: (i) April 14, 2026; or (ii) upon termination of the AGREEMENT by either IRVIN or the CITY as provided in Section 4 of this AGREEMENT. Unless earlier terminated as provided in Section 4, IRVIN shall provide notification and reminder to the City Council of the anticipated termination of the AGREEMENT on April 14, 2026, on or before October 14, 2025.
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2 1.3 At-Will. IRVIN acknowledges that he will be an at-will, exempt employee of the CITY, and that he shall serve at the pleasure of the City Council. Nothing in this AGREEMENT is intended to, or does, confer upon IRVIN any right to any property interest in continued employment, or any due process rights, including but not limited to a hearing before or after a decision by the City Council to terminate his employment, except as is expressly provided in Section 1.2 or Section 4 of this AGREEMENT. Nothing contained in this AGREEMENT shall in any way prevent, limit or otherwise interfere with the right of the CITY to terminate the services of IRVIN, as provided in Section 1.2 and Section 4. Nothing in this AGREEMENT shall prevent, limit or otherwise interfere with the right of IRVIN to resign at any time from this position with the CITY, subject only to the provisions set forth in Section 1.2 and Section 4.

IRVIN shall devote his best efforts and full-time attention to the performance of these duties.

The position of the City Manager is an exempt position pursuant to the Fair Labor Standards Act and any other relevant provisions of federal or State law.

1.6 Other Activities. During the period of his employment, IRVIN shall not accept any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity, whether or not to pecuniary advantage, that is or may be competitive with the CITY, that might cause a conflict of interest with the CITY, or that otherwise might interfere 1221
3 with the business or operation of the CITY or the satisfactory performance of IRVIN’s duties as the City Manager. During the period of his employment, IRVIN shall not accept any other employment or serve as a consultant or independent contractor for any other public or private organization or entity without the prior written consent of the City Council.

2. Compensation.

2.2 Thereafter, beginning October 1, 2023, IRVIN’s BASE SALARY shall be automatically adjusted annually for cost of living based on the lower of the San FranciscoOakland-Hayward Urban All Items index or any salary increase provided to unrepresented employees, consistent with Government Code section 3511.2. Additionally, IRVIN’s BASE SALARY shall be reviewed annually by City Council for consideration of a discretionary, performance-based increase, at the sole discretion of the City Council. Any discretionary, performance-based increase shall be effective only through approval of an amendment to this AGREEMENT.

3. Benefits.

3.1 General Benefits. Except as modified by this AGREEMENT, IRVIN shall be entitled to the benefits authorized by the City Council for unrepresented employees/appointees as set forth in the following sections of Resolution No. 2020-94 (Exhibit 1), Resolution No. 2017-64 (Exhibit 2) and subject to any amendments to or repeal of these resolutions.  Resolution No. 2020-94, Section 1(b) (457 Matching Contribution):

City Manager is eligible to receive up to $3,500 per year in the nonPERSable 457 matching contribution benefit to his 457 investment account on a dollar-for-dollar basis upon the execution of this AGREEMENT.
 Resolution No. 2020-94, Section 1(e)-(f) (Medical Plan): City Manager will be afforded the opportunity to participate in the CITY’s Medical Plan Blue Shield High Deductible Plan, and if 1222
4 IRVIN participates in this plan, CITY will pay 100 percent of the premium, as well as annual City contributions to IRVIN’s Health Savings Account in the amount of $2,300 for IRVIN only or $4,200 for IRVIN and family. Alternatively, IRVIN may elect to buy-up to Blue Shield PPO 500 at his own expense, or be eligible to opt-out of the City’s medical plan with evidence of medical coverage provided elsewhere and receive on a pay period basis an “opt out” non-PERSable payment of $3000 per year for IRVIN only or $4000 per year for IRVIN and family. CITY will make available dental and vision coverage for IRVIN and family.
 Resolution No. 2017-64, Section 10 (Paid Time-off): paid time off shall accrue at the executive management team rate.
 Resolution No. 2017-64, Section 11 (Other Benefits): Management Incentive/Education Pay; Tuition Reimbursement and Bi-Lingual Pay; Standard Holidays, Mileage and Business Reimbursements as provided to other administrative employees.

3.6 Bonding. The CITY shall bear the full cost of bonding of any fidelity or other bonds required of the City Manager under any applicable law, regulations and/or ordinance. 1223
5 3.7 Retirement Benefits. The CITY shall enroll IRVIN in CalPERS after IRVIN starts his employment with the CITY, subjected to the terms and conditions required by CalPERS and applicable CITY policies.

4. Separation.

5.5 Pursuant to Government Code Section 53243.3, all of the following requirements apply:
1 If this AGREEMENT is terminated, any cash settlement related to the termination that IRVIN may receive from the CITY shall be fully reimbursed to the CITY if IRVIN is convicted of a crime involving an abuse of his office or position as defined by Government Code Section 53243.4. 2 If any express or implied provision of this AGREEMENT, the South Lake Tahoe City Code, or any policy or practice of the CITY provide paid leave salary to IRVIN pending an investigation, this paid leave salary shall be fully reimbursed by IRVIN to the CITY if IRVIN is convicted of a crime involving an abuse of his office or position as defined by Government Code Section 53243.4.
3 If any express or implied provision of this AGREEMENT, the South Lake Tahoe City Code, or any policy or practice of the CITY provide for payment of funds for the legal criminal defense of IRVIN, the funds paid for his legal 1225
7 defense shall be fully reimbursed by IRVIN to the CITY if IRVIN is convicted of a crime involving an abuse of his office or position as defined by Government Code Section 53243.4.

6. Performance Evaluations.

The City Council shall review and evaluate the performance of IRVIN after the first 30 days of IRVIN’s employment and then quarterly for the first year, and then twice annually thereafter. No later than the end of November of each year following IRVIN’s commencement of employment, IRVIN’s performance evaluation shall include eligibility for any discretionary, performance-based increase to his then BASE SALARY. The City Council and IRVIN shall annually develop mutually agreed upon performance goals and criteria which the City Council shall use in reviewing IRVIN’s performance in the following year. IRVIN could be eligible for a performance bonus based on the City Council’s determination that IRVIN had significantly exceeded the mutually established and quantifiable objectives. Payment of this bonus in any year is at the sole discretion of the City Council and must be in the best interests of the CITY at the time it is made.

8. Conflict Of Interest.

9. General Provisions.

9.1 Recitals. The recitals, inclusive of all facts and representations, are incorporated into this AGREEMENT as if set forth in the Operative Provisions.

9.2 Vehicle Operation. IRVIN shall operate any vehicle used in connection with the performance of his duties as City Manager in a safe manner and otherwise in observance of all established CITY vehicle operation rules and policies, traffic safety laws and other applicable State 1226
8 laws and shall maintain a valid California automobile’s driver’s license during the period of employment.

City’s Notice Address:

City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Attn: Mayor and City Council
City Manager’s Address:

Joseph D. Irvin
[Deliver to last updated address in personnel file]

9.6 Amendments. This AGREEMENT may not be amended except in a written document signed by IRVIN, approved by the City Council and signed by the Mayor.

9.7 Waiver. Failure to exercise any right under this AGREEMENT shall not constitute a waiver of such right.

9.8 Assignment. IRVIN shall not assign any rights or obligations under this AGREEMENT. The CITY may, upon prior written notice to IRVIN, assign its rights and obligations hereunder.
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9 9.9 Severability. If a court or arbitrator holds any provision of this AGREEMENT to be invalid, unenforceable, or void, the remainder of this AGREEMENT shall remain in full force and effect.

9.10 Governing Law. This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California, with venue proper only in El Dorado County, California.

IN WITNESS WHISEOF, the CITY has caused this AGREEMENT to be signed and executed on its behalf by its Mayor and IRVIN has signed and executed this AGREEMENT effective as of the date set forth above.

CITY MANAGER CITY OF SOUTH LAKE TAHOE
____________________________ ___________________________ Joseph D. Irvin Devin Middlebrook, Mayor
APPROVED AS TO FORM:
___________________________
Heather Stroud, City Attorney
ATTEST:
_________________________________
Susan Blankenship, City Clerk
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City of South Lake Tahoe
Salary Table By Bargaining Unit
Bargaining Unit 1200
1280
Hourly Monthly

CITY MANAGER
Index Key Value
1200/1258/01 94.4000 16,362
Report Date: 01/25/2022 Page 2 1229
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 26
Agenda Item: Amendments to City Attorney Employment Agreement Executive Summary: The proposed resolution would amend the Employment Agreement with the City Attorney to increase her base salary, effective at the start of the 2022-2023 Fiscal Year on October 1, 2022. Based on a salary survey of comparable agencies, the City Attorney's salary was found to be approximately 23 percent below the labor market median, and the total compensation about 17 percent below the labor market median. The City Attorney recently received a favorable performance evaluation from the City Council. The proposed amendments update Section 2.1 to increase base compensation from $176,256 to
$193,881, and update Section 2.2 to include an annual cost of living increase, beginning on October 1, 2023. These changes are necessary to compensate the City Attorney fairly and competitively.

Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Mayor to execute the Amended and Restated City Attorney Employment Agreement increasing base compensation from $176,256 to $193,881 (effective October 1, 2022), and beginning October 2023, adjusting annually for cost of living based on the lower of the San Francisco-Oakland-Hayward Urban All Items index or any salary increase provided to unrepresented employees, consistent with Government Code section 3511.2.

Responsible Staff Member: Tom Stuart, Assistant to the City Manager II Responsible Staff Member: Tom Stuart, Assistant to the City Manager II (530) 542-6052 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff_Report_-_Amendment_to_City_Attorney_Employment_Agreement_.docx 02-Resolution_-_Amendments_to_the_City_Attorney_Employment_Agreement.docx 03-(Redline) Amendments to City Attorney Employment Agreement.pdf 04-Amended and Restated Employment Agreement with City Attorney (Exh. A to Reso.).docx CA Salary Table 2022.pdf
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Council Agenda Report May 3, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 3, 2022
Title: Amendments to City Attorney Employment Agreement Location: Citywide
Responsible Staff Member: Tom Stuart, Assistant to the City Manager II (530) 542-6052 Background: Pursuant to the employment agreement between the City of South Lake Tahoe and Heather Stroud, City Attorney, Ms. Stroud is to receive a performance evaluation twice annually. On April 5, 2022 Ms. Stroud met in closed session with the City Council of South Lake Tahoe for the purpose of her performance evaluation. To assist with this evaluation, outside input from two agency partners and two internal senior staff members was requested. The purpose of the outside agency and internal staff members input is help Council gain a perspective of how Ms.

Stroud interacts with agency partners and staff. The results of outside and staff input and Council’s evaluation were all extremely positive.

Issue and Discussion: In preparation for the performance evaluation staff was instructed to conduct a salary survey for the City Attorney to determine the City Attorney’s compensation compared to other similar positions in other jurisdictions. Staff evaluated 8 comparative agencies, the comparator agencies are the same agencies that were used in 2018 salary survey. Because only four of the 2018 comparator agencies have an in-house City Attorney, staff surveyed additional agencies that were of similar size or in the Tahoe Basin. The agencies used for the City Attorney survey were City of Folsom, City of Monterey, City of Santa Maria, City of Rocklin, El Dorado County, Town of Truckee, Tahoe Regional Planning Agency, and the California Tahoe Conservancy. The results of the survey found the South Lake Tahoe City Attorney’s base salary is 22.71 percent below the market median compensation level of similar positions, and total compensation (including benefits) is 16.82 percent below market median.

In order to compensate the City Attorney fairly and competitively and in recognition of her continued outstanding performance, City Council is requested to approve the below amendments to the Employment Agreement with Ms. Stroud.

The changes to the Employment Agreement are outlined below:
(1) Section 2.1 (Compensation)
Increase base compensation from $176,256 to $193,881. This increase will be effective October 1, 2022.
(2) Section 2.2 (Compensation)
Beginning October 1, 2023 STROUD’s BASE SALARY shall be automatically adjusted annually for cost of living based on the lower of the San Francisco-Oakland-Hayward Urban All Items index 1231
Council Agenda Report May 3, 2022 Page 2 of 2
or any salary increase provided to unrepresented employees, consistent with Government Code section 3511.2. Additionally, STROUD’s BASE SALARY shall be reviewed annually by City Council for consideration of a discretionary, performance-based increase, at the sole discretion of the City Council. Any discretionary, performance-based increase shall be effective only through approval of an amendment to this AGREEMENT.

All other terms and conditions of the City Attorney employment agreement remain unchanged.

With this increase the City Attorney’s base salary will be about 12 percent below the median for similar positions.

Financial Implications: No current fiscal implications as the increases will be included in the 2022-2023 fiscal budget.
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Resolution 2022-XXX May 3, 2022 Page 1 of 3
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
May 3, 2022
Amendments to the City Attorney Employment Agreement

BACKGROUND
A. On April 5, 2022, in closed session, City Attorney Heather Stroud received a positive performance evaluation.

B. In recognition of her performance and to compensate Ms. Stroud competitively with the market, City Council is requested to approve amendments to the Employment Agreement with Ms. Stroud.

C. The proposed changes to the Employment Agreement are as follows:
(1) Section 2.1 (Compensation)
Increase base compensation from $176,256 to $193,881. The increase will be effective October 1, 2022.
(2) Section 2.2 (Compensation)
Beginning October 1, 2023 STROUD’s BASE SALARY shall be automatically adjusted annually for cost of living based on the lower of the San Francisco-Oakland-Hayward Urban All Items index or any salary increase provided to unrepresented employees, consistent with Government Code section 3511.2. Additionally, STROUD’s BASE SALARY shall be reviewed annually by City Council for consideration of a discretionary, performance-based increase, at the sole discretion of the City Council. Any discretionary, performance-based increase shall be effective only through approval of an amendment to this AGREEMENT.

All other terms and conditions of the City Attorney employment agreement remain unchanged.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Authorizes and directs the Mayor to execute the City Attorney Employment Agreement attached hereto as Exhibit A.

2. Authorizes any other action be taken to implement the above. 1233
Resolution 2022-XXX May 3, 2022 Page 2 of 3
Adopted by the City of South Lake Tahoe City Council on May 3, 2022 by the following vote:

Yes:

No:

Absent:

CITY ATTORNEY EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“AGREEMENT”) is made and entered into this 2nd 3rd day of NovemberMay, 20212022, by and between the City of South Lake Tahoe (“CITY”), a California municipal agency, and Heather Stroud (“STROUD”), an individual.

CITY and STROUD are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. CITY desires to employ the services of STROUD as its City Attorney to carry out the duties and responsibilities of City Attorney, as provided for by the City of South Lake Tahoe Municipal Code, in exchange for the consideration discussed in and subject to the terms, conditions, and benefits set forth in this AGREEMENT; and B. STROUD desires to accept employment as City Attorney in exchange for the consideration discussed in and subject to the terms, conditions, and benefits set forth in this AGREEMENT; and
C. STROUD represents that she is fully qualified and available to carry out the City Attorney services necessary to complete the work in a timely and competent manner and that she holds all necessary licenses and certifications necessary to perform the City Attorney services set forth herein; and
D. CITY has determined that it is beneficial to hire STROUD by virtue of her relevant qualifications and experience.

E. The original Employment Agreement became effective on September 18, 2018, and STROUD commenced the performance of her duties as City Attorney on October 2, 2018.

OPERATIVE PROVISIONS
In consideration of the promises and covenants contained herein, the Parties agree as follows:

1. Position and Duties.

1.1 Position. STROUD accepts employment with CITY as its City Attorney and shall perform all functions, duties and services set forth in Section 1.4 of this AGREEMENT and Chapter 2.20 of the City of South Lake Tahoe Municipal Code. STROUD shall provide legal services to and on behalf of the City, as directed by the City Council of the City of South Lake Tahoe (“City Council”) and as set forth under law, including, but not limited to, the City of South Lake Tahoe Municipal Code, as they presently exist or as they may be changed from time to time in the future.
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2 1.2 Term. This AGREEMENT shall end upon the earlier of: (i) October 2, 2023; or (ii) upon termination of the AGREEMENT by either STROUD or CITY as provided in Section 4 of this AGREEMENT. Unless earlier terminated as provided in Section 4, STROUD shall provide notification and reminder to the City Manager and City Council of the anticipated termination of the AGREEMENT on October 2, 2023, on or before April 2, 2023.

1.3 At-Will. STROUD acknowledges that she will be an at-will, exempt employee of CITY, and that she shall serve at the pleasure of the City Council. Nothing in this AGREEMENT is intended to, or does, confer upon STROUD any right to any property interest in continued employment, or any due process rights, including but not limited to a hearing before or after a decision by the City Council to terminate her employment, except as is expressly provided in Section 1.2 or Section 4 of this AGREEMENT. Nothing contained in this AGREEMENT shall in any way prevent, limit or otherwise interfere with the right of CITY to terminate the services of STROUD, as provided in Section 1.2 and Section 4. Nothing in this AGREEMENT shall prevent, limit or otherwise interfere with the right of STROUD to resign at any time from this position with CITY, subject only to the provisions set forth in Section 1.2 and Section 4.

1.4 Duties. STROUD shall serve as the City Attorney and shall be for the term of this AGREEMENT vested with the powers, duties and responsibilities of the City Attorney as set forth in relevant provisions of the City of South Lake Tahoe Municipal Code, as amended from time to time, and ordinances and resolutions of the City Council, and to perform other legally permissible and proper duties and functions as the City Council may from time to time assign. It is the intent of the City Council for the City Attorney to function as the chief legal officer of the CITY.

STROUD shall perform her obligations and responsibilities diligently within the time parameters specified by the City Council, applying a high degree of professionalism, ethics, integrity and good workmanship to every aspect of her obligations. Without additional compensation, STROUD shall provide such other services as are customary and appropriate to the position of City Attorney.

STROUD shall devote her best efforts and full-time attention to the performance of these duties.

1.5 Hours of Work. STROUD shall devote the time necessary to adequately perform her duties as the City Attorney. The parties anticipate that STROUD will work approximately forty (40) hours per week allocated between regular business hours and hours outside of regular business hours including, but not limited to attendance at regular and special City Council meetings, and attendance at such community events and CITY functions as the City Council may direct. Toward that end, STROUD shall be allowed reasonable flexibility in setting her own office hours, provided the schedule of such hours provides a significant presence at City Hall, reasonable availability to the City Council, City staff, and members of the community during regular CITY business hours and for the performance of her duties and of CITY business. The position of the City Attorney is an exempt position pursuant to the Fair Labor Standards Act and any other relevant provisions of federal or State law.

1.6 Other Activities. During the period of her employment, STROUD shall not accept any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity, whether or not to pecuniary advantage, that is or may be competitive with CITY, that might cause a conflict of interest with CITY, or that otherwise might interfere with the business or operation of CITY or the satisfactory performance of STROUD’s duties as the City Attorney. During the period of her employment, STROUD shall not accept any other employment 1237
3 or serve as a consultant or independent contractor for any other public or private organization or entity without the prior written consent of the City Council.

1.7 Reimbursement. CITY shall reimburse STROUD for reasonable and necessary travel and other business expenses incurred by STROUD in the performance of her duties. All reimbursements shall be subject to and in accordance with California law and applicable CITY reimbursement policies.

2. Compensation.

2.1 In consideration for STROUD’s performance of the City Attorney duties and obligations as set forth in this AGREEMENT, CITY agrees to pay STROUD an annual base salary of $176,256.00 (“BASE SALARY”), payable in installments at the same time as other management employees of the City and in accordance with law and established City procedure.

As of October 1, 2022, STROUD’s BASE SALARY will increase to $193,881.00.

2.2 Thereafter, beginning October 1, 2023, STROUD’s BASE SALARY shall be automatically adjusted annually for cost of living based on the lower of the San FranciscoOakland-Hayward Urban All Items index or any salary increase provided to unrepresented employees, consistent with Government Code section 3511.2. Additionally, STROUD’S BASE SALARY shall be reviewed annually by CITY for consideration of a discretionary, performancebased increase. Any discretionary, performance-based increase shall be effective only through approval of an amendment to this AGREEMENT.

3. Benefits.

3.1 General Benefits. Except as modified by this AGREEMENT, STROUD shall be entitled to the benefits authorized by the City Council for unrepresented employees/appointees as set forth in the following sections of Resolution 2020-94 (Exhibit 1), Resolution No. 2017-64 (Exhibit 2), and subject to any amendments to or repeal of these resolutions. • Resolution No. 2020-94, Section 1(b) (457 Matching Contribution):

City Attorney is eligible to receive up to $3,500 per year in the nonPERSable 457 matching contribution benefit to her 457 investment account on a dollar-for-dollar basis upon the execution of this AGREEMENT.
• Resolution No. 2020-94, Section 1(e)-(f) (Medical Plan): City Attorney will be afforded the opportunity to participate in the CITY’s Medical Plan Blue Shield High Deductible Plan, and if STROUD participates in this plan, CITY will pay 100 percent of the premium, as well as annual City contributions to STROUD’s Health Savings Account in the amount of $2,300 for STROUD only or $4,200 for STROUD and family. Alternatively, STROUD may elect to buy-up to Blue Shield PPO 750, PPO 5050 , or PPO 250 at her own expense, or be eligible to opt-out of the City’s medical plan with evidence of medical coverage provided elsewhere and receive Commented [A1]: The other PPO plans listed no longer exist under the City’s plan. Per HR, the only remaining plans are the HDHP and the PPO 500 (not 550).
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4 on a pay period basis an “opt out” non-PERSable payment of $3000 per year for STROUD only or $4000 per year for STROUD and family. CITY will make available dental and vision coverage for STROUD and family.
• Resolution No. 2017-64, Section 8 9 (Health Reimbursement Account (“HRA”)): For calendar year 2018 (from January to December 2018), the City shall deposit into a tax-exempt HRA, prorated on a per pay period basis, for each unrepresented employee, up to $23,000, depending on the date of hire, and the funds are held in a trust managed by the CITY’s Third Party Administer. • Resolution No. 2017-64, Section 10 (Paid Time-off): paid time off shall accrue at the executive management team rate.
• Resolution No. 2017-64, Section 11 (Other Benefits): Management Incentive/Education Pay; Tuition Reimbursement and Bi-Lingual Pay; Standard Holidays, Mileage and Business Reimbursements as provided to other administrative employees.

3.2 Vehicle Allowance. STROUD shall receive a vehicle allowance of $250.00 per month.

3.3 Deferred Compensation. Subjected to any requirements stated in applicable CITY’s deferred compensation documents and CITY’s resolutions, policies and procedures, CITY agrees to make a $10,000 annual contribution toward STROUD’s deferred compensation account established with the CITY.

4. Separation.

4.1 Resignation. STROUD may resign at any time and agrees to give City a minimum of sixty (60) days advance written notice of the effective date of the resignation unless the Parties otherwise agree in writing. City Council shall have the option, in its discretion, to make STROUD’s termination effective at any time prior to the end of such period, provided CITY pays STROUD all compensation as set forth in Section 2.1 then due through the last day actually worked.

4.2 Retirement. Notwithstanding the notice requirement set forth in Section 4.1, if STROUD retires from full time public service with CITY, STROUD shall provide CITY with a minimum of four (4) months’ advance notice. STROUD’s retirement date will be mutually established.

4.3 Termination. For purpose of this AGREEMENT, termination shall occur when:
1 By Expiration of the Term. The term of the AGREEMENT as set forth in Section 1 ends – i.e., on October 2, 2023.
2 By CITY. This AGREEMENT may be terminated by CITY for any reason if the majority of the City Council votes to terminate the AGREEMENT at 1239
5 a properly noticed and duly authorized meeting. This subsection is subject to the limitations set forth in the City of South Lake Tahoe Municipal Code Section 2.20.030.

4.4 Separation Obligations. STROUD agrees that all property, including but not limited to all equipment, tangible Proprietary Information (as defined below), documents, records, notes, contracts, and computer-generated materials furnished to or prepared by her incident to her employment belongs to CITY and shall be returned promptly to CITY upon employment separation. STROUD’s obligations under this subsection shall survive her employment separation and the termination of this AGREEMENT.

5. Severance.

5.1 If the AGREEMENT is terminated without cause, City agrees to provide a severance equal to six (6) times her then current monthly BASE SALARY.

5.2 The severance pay provisions of Section 5.1 are subject to and shall be interpreted to comply with the limitations set forth in Government Code Section 53260. Any severance shall be paid in a lump sum or in equal amounts distributed over the usual pay schedule, at STROUD’s option. An election to receive severance pay distributed over the usual pay schedule does not extend the period of employment beyond the CITY -established termination date.

5.3 If STROUD is unable to perform the requisite duties expected under this AGREEMENT because of sickness, accident, mental incapacity, or health with reasonable accommodation, for a period of one month following exhaustion of accumulated sick leave, then CITY shall have the option to terminate this AGREEMENT and, notwithstanding the provisions of Section 5.1 above, STROUD shall not be entitled to severance. If STROUD is terminated because of permanent disability, STROUD shall be compensated in a lump sum for any accrued vacation or other benefits to the extent such compensation is required by law.

5.4 Notwithstanding Section 5.1 above, CITY shall not be obligated to pay any compensation, benefits, or severance under the provisions of this AGREEMENT if STROUD is terminated for cause, including, without limitation, because of a criminal conviction, criminal plea bargain, or adverse State Attorney General, Grand Jury or Fair Political Practices Commission determination involving any felony, intentional tort, crime of moral turpitude, or violation of statute or law constituting forfeiture of office, misconduct in office, misuse of public funds, or conflict of interest. During the proceedings which may be necessary for CITY to confirm the cause for termination hereunder, CITY may place STROUD on paid administrative leave.

5.5 If the AGREEMENT is terminated as a result of the expiration and/or non-renewal of the term of this AGREEMENT, STROUD shall not be entitled to severance pay under Section

5.1 of this AGREEMENT but shall receive any termination benefits and payments required by law.

5.6 Pursuant to Government Code Section 53243.3, all of the following requirements apply:
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6 1 If this AGREEMENT is terminated, any cash settlement related to the termination that STROUD may receive from CITY shall be fully reimbursed to CITY if STROUD is convicted of a crime involving an abuse of her office or position as defined by Government Code Section 53243.4. 2 If any express or implied provision of this AGREEMENT, the Municipal Code of CITY, or any policy or practice of CITY provide paid leave salary to STROUD pending an investigation, this paid leave salary shall be fully reimbursed by STROUD to CITY if STROUD is convicted of a crime involving an abuse of her office or position as defined by Government Code Section 53243.4.
3 If any express or implied provision of this AGREEMENT, the City of South Lake Tahoe Municipal Code, or any policy or practice of CITY provide for payment of funds for the legal criminal defense of STROUD, the funds paid for her legal defense shall be fully reimbursed by STROUD to CITY if STROUD is convicted of a crime involving an abuse of her office or position as defined by Government Code Section 53243.4.

6. Performance Evaluations.

The CITY Council shall review and evaluate the performance of STROUD at least twice annually no later than May and November of each year. On or near STROUD’s anniversary date, no later than the end of November each year following STROUD’s commencement of employment, STROUD’s performance evaluation shall include eligibility for any discretionary, performance-based increase to her then BASE SALARY. The City Council and STROUD shall annually develop mutually agreed upon performance goals and criteria which the City Council shall use in reviewing STROUD’s performance in the following year. STROUD could be eligible for a performance bonus based on the CITY Council’s determination that STROUD had significantly exceeded the mutually established and quantifiable objectives. Payment of this bonus in any year is at the sole discretion of the CITY Council and must be in the best interests of the CITY at the time it is made.

7. Proprietary Information.
“Proprietary Information” is all information and any idea pertaining in any manner to the business of CITY (or any CITY affiliate), its employees, clients, consultants, or business associates, which was produced by any employee of CITY in the course of her employment or otherwise produced or acquired by or on behalf of CITY. All Proprietary Information not generally known outside of CITY’s organization, and all Proprietary Information so known only through improper means, shall be deemed “Confidential Information.” During her employment by CITY, STROUD shall use Proprietary Information, and shall disclose Confidential Information, only for the benefit of CITY and as is or may be necessary to perform her job responsibilities under this AGREEMENT. Following termination, STROUD shall not use any Proprietary Information and shall not disclose any Confidential Information, except with the express written consent of CITY.

STROUD’s obligations under this Section shall survive the termination of her employment and the expiration of this AGREEMENT.
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7 8. Conflict Of Interest.

STROUD represents and warrants to CITY that she presently has no interest, and represents that she will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or interfere in any way with performance of her duties under this AGREEMENT.

9. General Provisions.

9.1 Recitals. The recitals, inclusive of all facts and representations, are incorporated into this AGREEMENT as if set forth in the Operative Provisions.

9.2 Vehicle Operation. STROUD shall operate any vehicle used in connection with the performance of her duties as City Attorney in a safe manner and otherwise in observance of all established City vehicle operation rules and policies, traffic safety laws and other applicable State laws and shall maintain a valid California automobile’s driver’s license during the period of employment.

9.3 Notices. All notices, requests, demands and other communications under this AGREEMENT shall be in writing and shall be effective upon delivery by hand or email three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to CITY at the address below, and/or at the last known address maintained in STROUD’s personnel file. STROUD agrees to notify CITY in writing of any change in her address during her employment with CITY. Notice of change of address shall be effective only when accomplished in accordance with this Section.

City’s Notice Address:

City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Attn: Mayor and City Council
City Attorney’s Address:

HEATHER STROUD
[Deliver to last updated address in personnel file]

9.4 Indemnification. Subject to, in accordance with, and to the extent provided by the Government Claims Act [Government Code Section 810 et seq.], CITY will indemnify, defend, and hold STROUD harmless from and against any action, demand, suit, monetary judgment or other legal or administrative proceeding, and any liability, injury, loss or other damages, arising out of any act or omission occurring during STROUD’s tenure as City Attorney while STROUD was performing her duties as City Attorney.

9.5 Integration. This AGREEMENT is intended to be the final, complete, and exclusive statement of the terms of STROUD’s employment by CITY. This AGREEMENT supersedes all other prior and contemporaneous agreements and statements, whether written or oral, express or implied, pertaining in any manner to the employment of STROUD, and it may not 1242
8 be contradicted by evidence of any prior or contemporaneous statements or agreements To the extent that the practices, policies, or procedures of CITY, now or in the future, apply to STROUD and are inconsistent with the terms of this AGREEMENT, the provisions of this AGREEMENT shall control.

9.6 Amendments. This AGREEMENT may not be amended except in a written document signed by STROUD, approved by the City Council and signed by CITY Mayor.

9.7 Waiver. Failure to exercise any right under this AGREEMENT shall not constitute a waiver of such right.

9.8 Assignment. STROUD shall not assign any rights or obligations under this AGREEMENT. CITY may, upon prior written notice to STROUD, assign its rights and obligations hereunder.

9.9 Severability. If a court or arbitrator holds any provision of this AGREEMENT to be invalid, unenforceable, or void, the remainder of this AGREEMENT shall remain in full force and effect.

9.10 Governing Law. This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California, with venue proper only in El Dorado County, California.

9.11 Interpretation. This AGREEMENT shall be construed as a whole, according to its fair meaning, and not in favor of or against any Party. By way of example and not in limitation, this AGREEMENT shall not be construed in favor of the party receiving a benefit nor against the Party responsible for any particular language in this AGREEMENT. This AGREEMENT may be altered, amended or modified only by an instrument in writing, executed by the Parties to this AGREEMENT and by no other means. Each Party waives their future right to claim, contest or assert that this AGREEMENT was modified, cancelled superseded or changed by any oral AGREEMENT, course of conduct, waiver or estoppel.

9.12 Acknowledgment. STROUD acknowledges that she has had the opportunity to consult legal counsel in regard to this AGREEMENT, that she has read and understands this AGREEMENT, that she is fully aware of its legal effect, and that she has entered into it freely and voluntarily and based on her own judgment and not on any representations or promises other than those contained in this AGREEMENT.
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9 IN WITNESS WHEREOF, CITY has caused this AGREEMENT to be signed and executed on its behalf by its Mayor and STROUD has signed and executed this AGREEMENT effective as of the date set forth above.

CITY ATTORNEY CITY OF South Lake Tahoe
____________________________ ___________________________ Heather L. Stroud Tamara WallaceDevin Middlebrook,
Mayor
APPROVED AS TO FORM:
___________________________
Daniel J. Bardzell
Assistant City Attorney
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1 AMENDED AND RESTATED

CITY ATTORNEY EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“AGREEMENT”) is made and entered into this 3rd day of May, 2022, by and between the City of South Lake Tahoe (“CITY”), a California municipal agency, and Heather Stroud (“STROUD”), an individual.

CITY and STROUD are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

E. The original Employment Agreement became effective on September 18, 2018, and STROUD commenced the performance of her duties as City Attorney on October 2, 2018.

OPERATIVE PROVISIONS
In consideration of the promises and covenants contained herein, the Parties agree as follows:

1. Position and Duties.

1.1 Position. STROUD accepts employment with CITY as its City Attorney and shall perform all functions, duties and services set forth in Section 1.4 of this AGREEMENT and Chapter 2.20 of the City of South Lake Tahoe Municipal Code. STROUD shall provide legal services to and on behalf of the City, as directed by the City Council of the City of South Lake Tahoe (“City Council”) and as set forth under law, including, but not limited to, the City of South Lake Tahoe Municipal Code, as they presently exist or as they may be changed from time to time in the future.
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2 1.2 Term. This AGREEMENT shall end upon the earlier of: (i) October 2, 2023; or (ii) upon termination of the AGREEMENT by either STROUD or CITY as provided in Section 4 of this AGREEMENT. Unless earlier terminated as provided in Section 4, STROUD shall provide notification and reminder to the City Manager and City Council of the anticipated termination of the AGREEMENT on October 2, 2023, on or before April 2, 2023.

STROUD shall devote her best efforts and full-time attention to the performance of these duties.

1.6 Other Activities. During the period of her employment, STROUD shall not accept any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity, whether or not to pecuniary advantage, that is or may be competitive with CITY, that might cause a conflict of interest with CITY, or that otherwise might interfere with the business or operation of CITY or the satisfactory performance of STROUD’s duties as the City Attorney. During the period of her employment, STROUD shall not accept any other employment 1246
3 or serve as a consultant or independent contractor for any other public or private organization or entity without the prior written consent of the City Council.

2. Compensation.

As of October 1, 2022, STROUD’s BASE SALARY will increase to $193,881.00.

3. Benefits.

3.1 General Benefits. Except as modified by this AGREEMENT, STROUD shall be entitled to the benefits authorized by the City Council for unrepresented employees/appointees as set forth in the following sections of Resolution 2020-94 (Exhibit 1), Resolution No. 2017-64 (Exhibit 2), and subject to any amendments to or repeal of these resolutions.  Resolution No. 2020-94, Section 1(b) (457 Matching Contribution):

City Attorney is eligible to receive up to $3,500 per year in the nonPERSable 457 matching contribution benefit to her 457 investment account on a dollar-for-dollar basis upon the execution of this AGREEMENT.
 Resolution No. 2020-94, Section 1(e)-(f) (Medical Plan): City Attorney will be afforded the opportunity to participate in the CITY’s Medical Plan Blue Shield High Deductible Plan, and if STROUD participates in this plan, CITY will pay 100 percent of the premium, as well as annual City contributions to STROUD’s Health Savings Account in the amount of $2,300 for STROUD only or $4,200 for STROUD and family. Alternatively, STROUD may elect to buy-up to Blue Shield PPO 500 at her own expense, or be eligible to opt-out of the City’s medical plan with evidence of medical coverage provided elsewhere and receive on a pay period basis an 1247
4 “opt out” non-PERSable payment of $3000 per year for STROUD only or $4000 per year for STROUD and family. CITY will make available dental and vision coverage for STROUD and family.  Resolution No. 2017-64, Section 9 (Health Reimbursement Account (“HRA”)): For calendar year 2018 (from January to December 2018), the City shall deposit into a tax-exempt HRA, prorated on a per pay period basis, for each unrepresented employee, up to $23,000, depending on the date of hire, and the funds are held in a trust managed by the CITY’s Third Party Administer.
 Resolution No. 2017-64, Section 10 (Paid Time-off): paid time off shall accrue at the executive management team rate.
 Resolution No. 2017-64, Section 11 (Other Benefits): Management Incentive/Education Pay; Tuition Reimbursement and Bi-Lingual Pay; Standard Holidays, Mileage and Business Reimbursements as provided to other administrative employees.

3.2 Vehicle Allowance. STROUD shall receive a vehicle allowance of $250.00 per month.

4. Separation.

4.3 Termination. For purpose of this AGREEMENT, termination shall occur when:
1 By Expiration of the Term. The term of the AGREEMENT as set forth in Section 1 ends – i.e., on October 2, 2023.
2 By CITY. This AGREEMENT may be terminated by CITY for any reason if the majority of the City Council votes to terminate the AGREEMENT at a properly noticed and duly authorized meeting. This subsection is subject 1248
5 to the limitations set forth in the City of South Lake Tahoe Municipal Code Section 2.20.030.

5. Severance.

5.1 If the AGREEMENT is terminated without cause, City agrees to provide a severance equal to six (6) times her then current monthly BASE SALARY.

5.2 The severance pay provisions of Section 5.1 are subject to and shall be interpreted to comply with the limitations set forth in Government Code Section 53260. Any severance shall be paid in a lump sum or in equal amounts distributed over the usual pay schedule, at STROUD’s option. An election to receive severance pay distributed over the usual pay schedule does not extend the period of employment beyond the CITY -established termination date.

5.5 If the AGREEMENT is terminated as a result of the expiration and/or non-renewal of the term of this AGREEMENT, STROUD shall not be entitled to severance pay under Section

5.1 of this AGREEMENT but shall receive any termination benefits and payments required by law.

5.6 Pursuant to Government Code Section 53243.3, all of the following requirements apply:
1 If this AGREEMENT is terminated, any cash settlement related to the termination that STROUD may receive from CITY shall be fully 1249
6 reimbursed to CITY if STROUD is convicted of a crime involving an abuse of her office or position as defined by Government Code Section 53243.4. 2 If any express or implied provision of this AGREEMENT, the Municipal Code of CITY, or any policy or practice of CITY provide paid leave salary to STROUD pending an investigation, this paid leave salary shall be fully reimbursed by STROUD to CITY if STROUD is convicted of a crime involving an abuse of her office or position as defined by Government Code Section 53243.4.
3 If any express or implied provision of this AGREEMENT, the City of South Lake Tahoe Municipal Code, or any policy or practice of CITY provide for payment of funds for the legal criminal defense of STROUD, the funds paid for her legal defense shall be fully reimbursed by STROUD to CITY if STROUD is convicted of a crime involving an abuse of her office or position as defined by Government Code Section 53243.4.

6. Performance Evaluations.

STROUD’s obligations under this Section shall survive the termination of her employment and the expiration of this AGREEMENT.
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7 8. Conflict Of Interest.

9. General Provisions.

9.1 Recitals. The recitals, inclusive of all facts and representations, are incorporated into this AGREEMENT as if set forth in the Operative Provisions.

9.3 Notices. All notices, requests, demands and other communications under this AGREEMENT shall be in writing and shall be effective upon delivery by hand or email three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to CITY at the address below, and/or at the last known address maintained in STROUD’s personnel file. STROUD agrees to notify CITY in writing of any change in her address during her employment with CITY. Notice of change of address shall be effective only when accomplished in accordance with this Section.

City’s Notice Address:

City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Attn: Mayor and City Council
City Attorney’s Address:

HEATHER STROUD
[Deliver to last updated address in personnel file]

9.5 Integration. This AGREEMENT is intended to be the final, complete, and exclusive statement of the terms of STROUD’s employment by CITY. This AGREEMENT supersedes all other prior and contemporaneous agreements and statements, whether written or oral, express or implied, pertaining in any manner to the employment of STROUD, and it may not 1251
8 be contradicted by evidence of any prior or contemporaneous statements or agreements To the extent that the practices, policies, or procedures of CITY, now or in the future, apply to STROUD and are inconsistent with the terms of this AGREEMENT, the provisions of this AGREEMENT shall control.

9.6 Amendments. This AGREEMENT may not be amended except in a written document signed by STROUD, approved by the City Council and signed by CITY Mayor.

9.7 Waiver. Failure to exercise any right under this AGREEMENT shall not constitute a waiver of such right.

9.8 Assignment. STROUD shall not assign any rights or obligations under this AGREEMENT. CITY may, upon prior written notice to STROUD, assign its rights and obligations hereunder.

9.9 Severability. If a court or arbitrator holds any provision of this AGREEMENT to be invalid, unenforceable, or void, the remainder of this AGREEMENT shall remain in full force and effect.

9.10 Governing Law. This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California, with venue proper only in El Dorado County, California.

9.11 Interpretation. This AGREEMENT shall be construed as a whole, according to its fair meaning, and not in favor of or against any Party. By way of example and not in limitation, this AGREEMENT shall not be construed in favor of the party receiving a benefit nor against the Party responsible for any particular language in this AGREEMENT. This AGREEMENT may be altered, amended or modified only by an instrument in writing, executed by the Parties to this AGREEMENT and by no other means. Each Party waives their future right to claim, contest or assert that this AGREEMENT was modified, cancelled superseded or changed by any oral AGREEMENT, course of conduct, waiver or estoppel.

IN WITNESS WHEREOF, CITY has caused this AGREEMENT to be signed and executed on its behalf by its Mayor and STROUD has signed and executed this AGREEMENT effective as of the date set forth above.

CITY ATTORNEY CITY OF South Lake Tahoe
____________________________ ___________________________ Heather L. Stroud Devin Middlebrook, Mayor
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9 APPROVED AS TO FORM:
___________________________
Daniel J. Bardzell
Assistant City Attorney
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City of South Lake Tahoe
Salary Table By Bargaining Unit
Bargaining Unit 1200
1200
Hourly Monthly

93.2140 16,157

CITY ATTORNEY
Index Key Value
1200/1256/01
Report Date: 01/25/2022 Page 2 1254
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: May 3, 2022
Agenda Item #: 27
Agenda Item: Agenda Planning Calendar
Executive Summary:

Requested Action / Suggested Motions: A Councilmember may request that an item be placed on a future agenda. Upon the support of one (1) additional Council Member, direction shall be given to the City Manager to calendar the item for a convenient future agenda, but no sooner than the second meeting after the request was made, and/or modify the Agenda Planning Calendar as desired.

Responsible Staff Member: Joseph Irvin, City Manager
Responsible Staff Member:

Reviewed and Approved By:

Attachments:

APC - April 27, 2022.pdf
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2022 Agenda Planning Calendar Updated 4/27/2022
Department Agenda Item Agenda Section
May 17, 5:30 p.m City Clerk Proclamation - May Mental Heath Awareness Month City Attny Modify Management District Plan of SLTTID PH City Manager Electric Vehicle Plan NB
Support for House Resolution 6903
Fire Engine 3 Repairs NB
Allocated Position Listing Firefighter/Engineer Consent PW/Dev Services3900 Lake Tahoe Boulevard US Hwy 50 Alt Route UB Sugar Pine Village Building Permit Fees NB
Finance Investment Portfolio Report – March 31, 2022 Con Quarterly Budget and Financial Status report – March 31, 2022 Con Appropriation SLRF from the ARPA Con
Authorizing Investment of Monies in the Local Agency Investment Fund (LAIF) Con Pub. Works TRPA Mitigation Funds Resolution Correction Con Sugar Pine Village Reimbursement Agreement NB
STPUD Fire Hydrant Construction Implementation NB
Award Airport Tracker Purchase Con
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2022 Agenda Planning Calendar Updated 4/27/2022
PW Annual Report NB
PSA Consultant Services for Dennis Machida Bike Trail Con Tahoe Valley Greenbelt Purchase Agreement UB
June 7, 9 a.m. City Clerk Proclamation Pride Month
Travel Authorization - MT 2030 Climate Solutions Summit NB City Attny Single Use Plastic Regulation Discussion
City Manager Award RFP Video Production Services
Dev Services PLHA Standard Agreement and Loan Documents for Sugar Pine Village Pub Works Award of Greenway 1C Study
Appropriation of Funds from ARPA for Ski Run Park
Grant Acceptance/Allocation ROW Pioneer Trail Ped. Improvement Project Phase II Authorize ATP Cycle 6 Funds Pioneer Trail Ped. Improvement Project Phase II Award FY 2023 Airport Master Plan RFQ
June 21, 9 a.m. City Council, South Tahoe Redevelopment Successor Agency Meeting City Attorney Cannabis Tax Measure Ballot Measure
City Manager Via Mobility Transit Workshop 1-3 pm
Present and Award Cannabis Revenue Grants
1257
2022 Agenda Planning Calendar Updated 4/27/2022
Dev Services Housing Element Adoption
City Clerk Resolution Calling for Consolidated Election/Ballot Measures/Offices Finance CFD 2001-1 Series 2015 Special Tax Refunding Bonds for FY 2022-2023 FY 2022-2023 Direct Charge for Mello-Roos Special Tax for CFD No. 1995-1 Pub Works CIP Presentation - Policy Rankings
Award On-Call Mechanical Services Contract
Rec Center Presentation
Award of 3 Contracts for ther Rec Center
PSA with CCC Maintenance of Stormwater System
Aug. 9, 9 a.m. City Manager ARPA Project Round 2 Discussion Civic Spark Report
Finance Approval of Bond Financing Docs for the Rec Center Construction Financing NB Financial Policy Update
Dev Services "Lease to Locals" Program Incentive
Pub Works Rec Center Bonds - Position of Statement
Facility Assessment Award
Hazardous Materials Remediation Campground Store and Outbuildings 1258
2022 Agenda Planning Calendar Updated 4/27/2022
Aug. 23, 9 a.m. Budget Workshop
Pub Works Formal CIP Presentation for Adoption
Sept. 6, 9 a.m. Dev Services PLHA Moderate Income Homebuyer Administration PSA Pub Works EIP and Regional Project Priority Presentation Sept. 20, 5:30 p.mPub Works Rec Center Award - Phase II Oct. 4, 9 a.m. City Clerk Conflict of Interest Code Update Ordinance Increasing City Council Compensation (First Reading) City Manager SW Gas Prestentation Renewable Energy Goals Dev Services California Building Code - Local Code Adoption Nov. 1, 9 a.m. City Clerk Ordinance Increasing City Council Compensation (Second Reading) Resolution Increasing City Treasurer Compensation
Nov. 15, 5:30 p.m.

Dec.13, 9 a.m. City Clerk Resolution Certification of Election Results City Council Re-Organization
Oath of Office
2023 Meeting Schedule
City Council Assignments to Boards and Commissions Discussion 1259
2022 Agenda Planning Calendar Updated 4/27/2022
League - New Mayors and Council Members Attendance
City Employee Recognitions
City Attorney Parking Garage License Agreement with Verizon City Attny/PW Undergrounding Utilities
Amendments to Small Cell Policy
Liberty Utilities Franchise Agreement
City Clerk Records Management Policy (Updated)
Policy - Use of Personal Devices for City Business
City Manager Juvenile Treatment Center Discussion
Potential new City slogan
Customer satisfaction survey(s)
Dev Services Inclusionary housing ordinance
Plan Area Statement Update for Tourist Accommodation Uses Tourist Core Area Plan Amendment: 3828 Montreal Rd
RFP for consulting firms for Bijou / Al Tahoe Area Plan and Bijou Parks Master Plan Plan Area Statement 111 amendment
Unscheduled/Pending
1260
2022 Agenda Planning Calendar Updated 4/27/2022
Single Room Occupancy Program Amendments
Outside Eating Code Review (coverage, seating, parking etc) Fire Weed abatement/nusance Program - Defensable Space
Fire Marshal
Parks & Rec
Public Works Award Engineering and Construction Contract South Hangar Taxi Lane Rehab Award Contract PD - Community Recource Center Renovations SEED Solar Photovoltaic Project PPA
Award - James and Eloise Drainage Improvement Project Phase 1 Airport Deferred Maintenance Plan
Recreation Bijou Park Master Plan
Bijou Golf Course "Rock the Lake" Event and Review
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South Lake Tahoe City CouncilMay 3, 2022

South Lake Tahoe City Council
May 3, 2022