South Lake Tahoe City Council
August 9, 2022

Very truly yours,

STIFEL, NICOLAUS & COMPANY,
INCORPORATED, as Underwriter
By
Managing Director

SOUTH TAHOE JOINT POWERS

FINANCING AUTHORITY
By
Executive Director

CITY OF SOUTH LAKE TAHOE
By
City Manager
Time of Execution:
611
Exhibit A

EXHIBIT A

MATURITIES, PRINCIPAL AMOUNTS,

INTEREST RATES, PRICES AND YIELDS
$____________

SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY
Lease Revenue Bonds, Series 2022A
Maturity Principal Interest
(October 1) Amount Rate Yield Price
c Priced to the 10/1/20__ par call date.

T Term maturity
Redemption Provisions
Special Mandatory Redemption from Insurance or Condemnation Proceeds The Bonds shall be subject to redemption, in whole or in part, on any date, in denominations of $5,000 or any integral multiple thereof, from and to the extent of: (i) Net Insurance Proceeds received with respect to all or a portion of the Leased Property, deposited by the Trustee in the Redemption Fund pursuant to the Indenture, and (ii) eminent domain proceeds received pursuant to the Sublease, at a Redemption Price equal to the principal amount of the Bonds to be redeemed, plus accrued interest thereon to the date of redemption, without premium.

Optional Redemption
The Bonds maturing on or after October 1, ____, are subject to optional redemption, in whole or in part, on any date on or after October 1, ____, in denominations of $5,000 or any integral multiple thereof, from and to the extent of prepaid Base Rental Payments paid pursuant to the Sublease, at a Redemption Price equal to the principal amount of the Bonds to be redeemed, plus accrued interest thereon to the date of redemption, without premium.
612
Exhibit A

Mandatory Sinking Fund Redemption
The Bonds with a stated maturity on October 1, ____, are subject to mandatory sinking fund redemption in part (by lot) on each October 1 on and after October 1, ____, in integral multiples of $5,000 at a Redemption Price equal to the principal amount thereof plus accrued interest to the date fixed for redemption, without premium, in accordance with the following schedule:

Mandatory Sinking Mandatory
Account Payment Dates Sinking Account
(October 1) Payments
† Maturity
613
Exhibit B

EXHIBIT B

ISSUE PRICE CERTIFICATE
$___________

SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY
Lease Revenue Bonds, Series 2022A
The undersigned, on behalf of Stifel, Nicolaus & Company, Incorporated, as underwriter (“Stifel”), based on the information available to it, hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations (the “Bonds”).

I. General

1. Stifel and the South Tahoe Joint Powers Financing Authority and City of South Lake Tahoe (collectively, the “Issuer”) have executed a bond purchase agreement in connection with the Bonds on the Sale Date. Stifel has not modified the bond purchase agreement since its execution on the Sale Date.

II. Price

1. As of the date of this certificate, for each Maturity of the Bonds, the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A.

III. Defined Terms

1. Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.

2. Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a Related Party to an Underwriter.

3. A person is a “Related Party” to an Underwriter if the Underwriter and the person are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other).

4. Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is October 4, 2022.

5. Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with Stifel to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).

All terms not defined herein shall have the same meanings as in the Tax Certificate with respect to the Bonds, to which this Certificate is attached.

The Issuer may rely on the statements made herein in connection with its efforts to comply with the conditions imposed by the Internal Revenue Code of 1986, as amended (the “Code”). Bond Counsel may also rely on this Certificate for purposes of its opinion regarding the treatment of interest on the 614
Exhibit B

Bonds as excludable from gross income for federal income tax purposes. However, notwithstanding the foregoing, we remind you that Stifel is not an accountant or actuary, nor is Stifel engaged in the practice of law. Accordingly, while Stifel believes the calculations described above to be correct, it does not warrant their validity for purposes of Sections 103 and 141 through 150 of the Code or make any representation as to the legal sufficiency of the factual matters set forth herein. Except as expressly set forth above, the certifications set forth herein may not be relied upon or used by any third party or for any other purpose.

Dated: October 18, 2022

STIFEL, NICOLAUS & COMPANY,
INCORPORATED, as Underwriter
By
Managing Director
615
Exhibit B

SCHEDULE A TO ISSUE PRICE CERTIFICATE
$_________

SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY
Lease Revenue Bonds, Series 2022A
Hold-theOffering General Maturity
Price Rule Date Principal Interest
Maturities Maturities (October 1) Amount Rate Price
c Priced to the 10/1/20__ par call date.

T Term maturity
616
RWG Draft 7/2_/22
12463-0017\2678945v6.doc
==================================================================

INDENTURE
by and between the

SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
as Trustee
Dated as of October 1, 2022
Relating to
$[principal amount]
South Tahoe Joint Powers Financing Authority
Lease Revenue Bonds
Series 2022A
================================================================== 617

TABLE OF CONTENTS
Page
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ARTICLE I DEFINITIONS.......................................................................................................2 SECTION 1.01 Definitions.....................................................................................2 SECTION 1.02 Rules of Construction..................................................................13 SECTION 1.03 Equal Security..............................................................................13 ARTICLE II AUTHORIZATION ..............................................................................................13 SECTION 2.01 Authorization ..............................................................................13 SECTION 2.02 Terms of Bonds ...........................................................................14 SECTION 2.03 Redemption of Bonds .................................................................15 SECTION 2.04 Form of Bonds.............................................................................17 SECTION 2.05 Execution of Bonds .....................................................................18 SECTION 2.06 Transfer of Bonds........................................................................18 SECTION 2.07 Exchange of Bonds......................................................................19 SECTION 2.08 Temporary Bonds........................................................................19 SECTION 2.09 Registration Books ......................................................................19 SECTION 2.10 Bonds Mutilated, Lost, Destroyed or Stolen...............................19 SECTION 2.11 Book-Entry System......................................................................20 ARTICLE III ISSUANCE .........................................................................................................22 SECTION 3.01 Issuance of Bonds .......................................................................22 SECTION 3.02 Application of Proceeds of Sale of Bonds ...................................22 SECTION 3.03 Costs of Issuance Fund................................................................22 SECTION 3.04 Project Fund................................................................................22 SECTION 3.05 Validity of Bonds .........................................................................23 SECTION 3.06 Additional Bonds.........................................................................23 618
TABLE OF CONTENTS (cont.)
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ARTICLE IV REVENUES ........................................................................................................24 SECTION 4.01 Pledge of Revenues.....................................................................24 SECTION 4.02 Lease Revenue Fund ...................................................................25 SECTION 4.03 Redemption Fund .......................................................................26 SECTION 4.04 Application of Net Proceeds .......................................................27 SECTION 4.05 Investments.................................................................................28 SECTION 4.06 Valuation and Disposition of Investments..................................29 ARTICLE V COVENANTS OF THE AUTHORITY.....................................................................29 SECTION 5.01 Punctual Payment.......................................................................29 SECTION 5.02 Extension of Payment of Bonds..................................................29 SECTION 5.03 Against Encumbrances................................................................29 SECTION 5.04 Power to Issue Bonds and Make Pledge and
Assignment..................................................................................30 SECTION 5.05 Accounting Records and Financial Statements...........................30 SECTION 5.06 Additional Obligations ................................................................30 SECTION 5.07 Sublease ......................................................................................30 SECTION 5.08 Tax Covenants.............................................................................31 SECTION 5.09 Continuing Disclosure .................................................................31 SECTION 5.10 Further Assurances .....................................................................32 ARTICLE VI THE TRUSTEE....................................................................................................32 SECTION 6.01 Appointment of Trustee .............................................................32 SECTION 6.02 Acceptance of Trusts...................................................................32 SECTION 6.03 Fees, Charges and Expenses of Trustee......................................36 619
TABLE OF CONTENTS (cont.)
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SECTION 6.04 Notice to Bond Owners of Default..............................................36 SECTION 6.05 Intervention by Trustee ..............................................................36 SECTION 6.06 Removal of Trustee.....................................................................37 SECTION 6.07 Resignation by Trustee ...............................................................37 SECTION 6.08 Appointment of Successor Trustee.............................................37 SECTION 6.09 Merger or Consolidation.............................................................37 SECTION 6.10 Concerning any Successor Trustee .............................................37 SECTION 6.11 Appointment of Co-Trustee ........................................................38 SECTION 6.12 Indemnification...........................................................................38 SECTION 6.13 Trustee Acceptance of Electronic Instructions ...........................39 SECTION 6.14 Direction to Execute Assignment Agreement.............................40 ARTICLE VII MODIFICATION AND AMENDMENT OF THE INDENTURE................................40 SECTION 7.01 Amendment of Indenture...........................................................40 SECTION 7.02 Effect of Supplemental Indenture ..............................................41 SECTION 7.03 Endorsement or Replacement of Bonds After
Amendment ................................................................................42 ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES OF BOND OWNERS ..............................42 SECTION 8.01 Events of Default.........................................................................42 SECTION 8.02 Remedies.....................................................................................43 SECTION 8.03 Application of Revenues and Other Funds after Default.........................................................................................43 SECTION 8.04 Power of Trustee to Control Proceedings...................................44 SECTION 8.05 Appointment of Receivers ..........................................................44 SECTION 8.06 Non-Waiver.................................................................................44 620
TABLE OF CONTENTS (cont.)
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SECTION 8.07 Rights of Bond Owners ...............................................................45 SECTION 8.08 Termination of Proceedings........................................................45 ARTICLE IX MISCELLANEOUS..............................................................................................46 SECTION 9.01 Limited Liability of Authority ......................................................46 SECTION 9.02 Benefits of Indenture Limited.....................................................46 SECTION 9.03 Discharge of Indenture ...............................................................46 SECTION 9.04 Trustee’s Additional Acknowledgment of Certain Provisions of the Sublease ..........................................................47 SECTION 9.05 Successor Is Deemed Included in All References to Predecessor.................................................................................47 SECTION 9.06 Content of Certificates and Opinions .........................................47 SECTION 9.07 Execution of Documents by Bond Owners .................................48 SECTION 9.08 Disqualified Bonds ......................................................................48 SECTION 9.09 Waiver of Personal Liability ........................................................48 SECTION 9.10 Partial Invalidity ..........................................................................48 SECTION 9.11 Destruction of Canceled Bonds...................................................49 SECTION 9.12 Funds and Accounts ....................................................................49 SECTION 9.13 Payment on Business Days .........................................................49 SECTION 9.14 Notices ........................................................................................49 SECTION 9.15 Unclaimed Moneys .....................................................................50 SECTION 9.16 Governing Law ............................................................................50 SECTION 9.17 Execution in Counterparts ..........................................................50 621
TABLE OF CONTENTS (cont.)
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EXHIBIT A – FORM OF BOND......................................................................................................A-1 EXHIBIT B – FORM OF REQUISITION (COSTS OF ISSUANCE FUND)............................................ B-1 EXHIBIT C – FORM OF REQUISITION (PROJECT FUND) .............................................................. C-1 622
12463-0017\2678945v6.doc

INDENTURE
This Indenture, dated as of October 1, 2022, is made and entered into by and between the South Tahoe Joint Powers Financing Authority, a joint powers authority organized and existing under the laws of the State of California (the “Authority”) and The Bank of New York Mellon Trust Company, N.A., a national banking association duly organized and existing under the laws of the United States of America, being qualified to accept and administer the trusts hereby created (the “Trustee”).

RECITALS:

A. The Authority is a joint powers authority duly organized and existing under and pursuant to that certain Joint Exercise of Powers Agreement, dated January 3, 1989, as amended by Amendment No. 1, dated as of March 1, 2022, by and between the City of South Lake Tahoe (the “City”) and the Parking Authority of the City of South Lake Tahoe, and under the provisions of Articles 1 through 4 (commencing with Section 6500), Chapter 5, Division 7, Title 1 of the Government Code of the State of California (the “Act”), and is authorized pursuant to Article 4 of the Act to issue bonds to provide financing for public capital improvements; and B. The Authority has determined to issue its Lease Revenue Bonds, Series 2022A (the “Bonds”) to assist the City with financing the cost of construction of a new recreation center.

C. In conjunction with the issuance of the Bonds, the Authority and the City are entering into: (1) the Lease Agreement, dated as October 1, 2022, by and between the City, as the lessor, and the Authority, as the lessee, and (2) the Sublease, dated as October 1, 2022 (the “Sublease”), by and between the Authority, as the sublessor, and the City, as the sublessee.

D. The Authority has assigned, without recourse, all its rights to receive “Base Rental” payments (the “Base Rental Payments”) to be paid by the City under and pursuant to the Sublease and certain other rights to the Trustee pursuant to an Assignment Agreement, dated as of even date herewith, by and between the Authority and the Trustee.

E. Subject to and in accordance with the terms of this Indenture, the Base Rental Payments to be received by the Trustee shall be held in a special fund pledged to the payment of the debt service of the Bonds.

F. The Bonds shall be issued pursuant to and secured by this Indenture in the manner provided herein.

G. In order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and to secure the payment of the principal thereof and interest thereon, and premium, if any, the Authority has authorized the execution and delivery of this Indenture. 623
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H. The Authority has determined that all acts and proceedings required by law necessary to constitute this Indenture a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution and delivery of the Indenture have been in all respects duly authorized.

NOW, THEREFORE, THIS INDENTURE WITNESSETH, that in order to secure the payment of the principal of and the interest and premium (if any) on all Bonds at any time issued and Outstanding under this Indenture, according to their tenor, and to secure the performance and observance of all the covenants and conditions therein and herein set forth, and to declare the terms and conditions upon and subject to which the Bonds are to be issued and received, and in consideration of the premises and of the mutual covenants herein contained and of the purchase and acceptance of the Bonds by the Owners thereof, and for other valuable considerations, the receipt whereof is hereby acknowledged, the Authority does hereby covenant and agree with the Trustee, for the benefit of the respective Owners from time to time of the Bonds, as follows:

ARTICLE I
DEFINITIONS; EQUAL SECURITY
SECTION 1.01 Definitions. Unless the context otherwise requires, the terms defined in this Section shall for all purposes of this Indenture and of any Supplemental Indenture and of the Bonds and of any certificate, opinion, request or other document herein mentioned have the meanings herein specified.
“Act” means Articles 1 through 4 (commencing with Section 6500), Chapter 5, Division 7, Title 1 of the Government Code of the State, as in existence on the Closing Date or as thereafter amended from time to time.
“Additional Bonds” means additional bonds payable from and secured by Revenues on parity with all other Outstanding Bonds issued pursuant to and in accordance with Section 3.06 hereof.
“Additional Rental Payments” means the additional rental payable by the City under and pursuant to Section 3(b) of the Sublease.
“Annual Debt Service” means, with respect to any Bond Year, the sum obtained by totaling the following:
(a) The principal amount of all Outstanding Bonds maturing in such Bond Year; and
(b) The interest which would be due during such Bond Year on the aggregate principal amount of Bonds which would be Outstanding in such Bond Year if the Bonds Outstanding on the date of such computation were to mature in accordance with the applicable maturity schedule. At the time and for the purpose of making such computation, the amount 624
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of Bonds already retired in advance of the above- mentioned schedule or schedules shall be deducted pro rata from the remaining amounts thereon.
“Assignment Agreement” means the Assignment Agreement, dated as of October 1, 2022, by and between the Authority and the Trustee (as described in Section 4.01), as the same may be amended, supplemented or otherwise modified from time to time. “Authority” means the South Tahoe Joint Powers Financing Authority, a joint powers authority duly organized and existing under the JPA Agreement and the laws of the State. “Authority Governing Board” means the governing body of the Authority. “Average Annual Debt Service” means the average Annual Debt Service over all Bond Years.
“Base Rental” or “Base Rental Payments” means the base rental payable by the City under and pursuant to Section 3(a) of the Sublease.
“Bond Counsel” means any attorney or firm of attorneys appointed by or acceptable to the Authority of nationally recognized expertise in the issuance of obligations the interest on which is excludable from gross income for federal income tax purposes under the Code. “Bond Law” means the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4 of the Act, as in existence on the Closing Date or as thereafter amended from time to time. “Bond Year” means each twelve-month period extending from October 2 in one calendar year to October 1 of the succeeding calendar year, both dates inclusive, except that the first Bond Year shall be the period from the Closing Date to October 1, 2023. “Bonds” means the South Tahoe Joint Powers Financing Authority, Lease Revenue Bonds, Series 2022A, issued pursuant to this Indenture. “Business Day” means a day other than (i) a Saturday or Sunday, (ii) a day on which commercial banks in the city in which the Trustee maintains its Trust Office are authorized or required by law or executive order to close or (iii) a day on which the New York Stock Exchange is closed.
“Certificate of the Authority” means a certificate in writing signed by the Chair, Executive Director, the Assistant Executive Director or the Controller of the Authority or by any other officer of the Authority duly authorized for that purpose by a resolution adopted by the Authority Commission and filed with the Trustee.
“Certificate of the City” means a certificate in writing signed by the Mayor, the City Manager, the Assistant City Manager, or the Director of Finance, or by any other officer of the City duly authorized for that purpose.
625
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“City” means the City of South Lake Tahoe, California.
“Closing Date” means October __, 2022.
“Code” means the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.
“Continuing Disclosure Agreement” means the continuing disclosure undertaking of the City relating to the Bonds in connection with Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as originally executed and as the same may be amended and supplemented from time to time in accordance with the terms thereof.
“Costs of Issuance” means all expenses incurred in connection with the authorization, issuance, sale and delivery of the Bonds, including but not limited to all compensation, fees and expenses (including but not limited to fees and expenses for legal counsel) of the Authority, the City and the Trustee, compensation to any financial consultants or underwriters, legal fees and expenses, filing and recording costs, costs of obtaining title insurance with respect to the Leased Properties, costs relating to conveyance of the Leased Properties, rating agency fees, costs of preparation and reproduction of documents, costs of printing, bond insurance premiums and fees and costs for any guaranty, surety bond, letter of credit or other credit facility.
“Costs of Issuance Fund” means the fund by that name established and held by the Trustee pursuant to Section 3.03.
“Depository” means The Depository Trust Company, New York, New York, and its successors and assigns as securities depository for the Bonds, or any other securities depository acting as Depository under Section 2.11.
“Event of Default” means any of the events described in Section 8.01. “Federal Securities” means any direct, noncallable obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of the Treasury of the United States of America), or other noncallable obligations for which the faith and credit of the United States of America are pledged for the payment of principal and interest.
“Fair Market Value” means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm’s length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of section 1273 of the Code) and, otherwise, the term “fair market value” means the acquisition price in a bona fide arm’s length transaction (as referenced above) if: (i) the investment is a certificate of deposit the value of which is determined in accordance with applicable regulations under the Code, (ii) the 626
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investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) the value of which is determined in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security-State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) the investment is the Local Agency Investment Fund of the State, but only if at all times during which the investment is held its yield is reasonably expected to be equal to or greater than the yield on a reasonably comparable direct obligation of the United States of America. “Fiscal Year” means any twelve-month period extending from October 1 in one calendar year to September 30 of the succeeding calendar year, both dates inclusive, or any other twelve-month period selected and designated by the Authority as its official fiscal year period. “Indenture” means this Indenture, as originally executed or as it may from time to time be amended or supplemented in accordance herewith.
“Independent Certified Public Accountant” means any certified public accountant or firm of certified public accountants appointed and paid by the Authority, and who, or each of whom: (i) is in fact independent and not under domination of the Authority or the City; (ii) does not have any substantial interest, direct or indirect, in the Authority or the City; and (iii) is not connected with the Authority or the City as an officer or employee of the Authority or the City but who may be regularly retained to make annual or other audits of the books of or reports to the Authority or the City.
“Information Services” means the Electronic Municipal Market Access System (referred to as “EMMA”), a facility of the Municipal Securities Rulemaking Board, at www.emma.msrb.org; provided, however, in accordance with then current guidelines of the Securities and Exchange Commission, Information Services shall mean such other organizations providing information with respect to called bonds as the Authority may designate to the Trustee in writing.
“Interest Account” means the account by that name established and held by the Trustee pursuant to Section 4.02(a).
“Interest Payment Date” means April 1 and October 1 of each year, commencing [April 1, 2023].
“JPA Agreement” means the Joint Exercise of Powers Agreement, dated as of January 3, 1989, as amended by Amendment No. 1, dated as of March 1, 2022, entered into under the Act by the City and the Parking Authority of the City of South Lake Tahoe, together with any amendments thereof and supplements thereto.
627
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“Lease” means the Lease Agreement, dated as of even date herewith, by and between the City, as the lessor, and the Authority, as the lessee, as the same may be amended, supplemented or otherwise modified from time to time.
“Lease Revenue Fund” means the fund by that name established and held by the Trustee pursuant to Section 4.02.
“Leased Properties” has the meaning given to such term in the Sublease. “Maximum Annual Debt Service” means, with respect to the Bonds, the largest Annual Debt Service during the period from the date of calculation through the final maturity date of any Outstanding Bonds.
“Moody’s” means Moody’s Investors Service, Inc., and its successors and assigns, or if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, any other nationally recognized securities rating agency designated by the Authority.
“Net Proceeds” means any insurance or condemnation proceeds, paid with respect to the Leased Properties remaining after payment therefrom of all expenses in the collection thereof.
“Nominee” means the nominee of the Depository, which initially will be Cede & Co., as determined from time to time pursuant to Section 2.11.
“Original Purchaser” means, Stifel Nicolaus & Company, Incorporated. “Outstanding,” when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 9.08) all Bonds theretofore executed, issued and delivered by the Authority under this Indenture except:
(a) Bonds theretofore canceled by the Trustee or surrendered to the Trustee for cancellation;
(b) Bonds paid or deemed to have been paid within the meaning of Section

9.03; and
(c) Bonds in lieu of which or in substitution for which other Bonds shall have been executed, issued and delivered pursuant to this Indenture or any Supplemental Indenture. “Owner” or “Bond Owner,” when used with respect to any Bond, means the person in whose name the ownership of such Bond shall be registered on the Registration Books. “Participants” means those broker-dealers, banks and other financial institutions from time to time for which the Depository holds Bonds as securities depository. 628
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“Permitted Investments” mean any of the following obligations if and to the extent that they are permissible investments of funds of the Authority and/or the City, as applicable (provided, that the Trustee shall be entitled to rely upon a Certificate of the Authority as conclusive certification to the Trustee that the investments described therein are permissible investment of funds of the Authority):
(a) Direct obligations of the United States (including obligations issued or held in book-entry form on the books of the Department of the Treasury) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America.
(b) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States (stripped securities are only permitted if they have been stripped by the agency itself):

1. Farmers Home Administration (“FmHA”) Certificates of beneficial ownership

2. Federal Housing Administration Debentures (“FHA”)

3. General Services Administration Participation certificates

4. Government National Mortgage Association (“GNMA”)
GNMA—guaranteed mortgage-backed bonds
GNMA—guaranteed pass-through obligations (participation certificates)

5. United States Maritime Administration Guaranteed Title XI financing

6. United States Department of Housing and Urban Development Project Notes Local Authority Bonds
(c) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non-full faith and credit United States government agencies (stripped securities are only permitted if they have been stripped by the agency itself):

1. Federal Home Loan Bank System
Senior debt obligations (consolidated debt obligations)

2. Federal Home Loan Mortgage Corporation (“FHLMC”)
Participation Certificates
Senior debt obligations

3. Federal National Mortgage Association (“FNMA”)
629
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Mortgage-backed securities and senior debt obligations (excluded are stripped mortgage securities which are valued greater than par on the portion of unpaid principal)

4. Student Loan Marketing Association (“SLMA”)
Senior debt obligations

5. Resolution Funding Corporation (“REFCORP”)
Only the interest component of REFCORP strips which have been stripped by request to the Federal Reserve Bank of New York in book-entry form are acceptable

6. Farm Credit System
Consolidated system-wide bonds and notes
(d) Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of “AAAm-G,” “AAA-m” or “AA-m” and if rated by Moody’s rated “Aaa,” “Aa1” or “Aa2,” including funds for which the Trustee or any of its affiliates (including any holding company, subsidiaries, or other affiliates) receives and retains a fee for services provided to the fund, whether as a custodian, transfer agent, investment advisor or otherwise. (e) Certificates of deposit secured at all times by collateral described in (a) and/or (b) above. Such certificates must have a year or less maturity. Such certificates must be issued by commercial banks (including affiliates of the Trustee), savings and loan associations or mutual savings banks whose short term obligations are rated “A-1+” or better by S&P and “Prime-1” by Moody’s. The collateral must be held by a third party and the bondholders must have a perfected first security interest in the collateral. (f) Certificates of deposit, savings accounts, deposit accounts or money market deposits (including those of the Trustee and its affiliates) which are fully insured by FDIC, including BIF and SAIF.
(g) Investment agreements, including guaranteed investment contracts, forward purchase agreements and reserve fund put agreements. (h) Commercial paper rated, at the time of purchase, “Prime - 1” by Moody’s and “A-1+” or better by S&P.
(i) Bonds or notes issued by any state or municipality which are rated by Moody’s and S&P in one of the two highest rating categories assigned by such agencies. (j) Federal funds or bankers acceptances with a maximum term of one year of any bank (including those of the Trustee and its affiliates) which has an unsecured, uninsured and unguaranteed obligation rating of “Prime - 1” or “A3” or better by Moody’s and “A-1+” or better by S&P.
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(k) Repurchase agreements which provide for the transfer of securities from a dealer bank or securities firm (seller/borrower) to the Trustee (buyer/lender), and the transfer of cash from the Trustee to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the Trustee in exchange for the securities at a specified date, and

1. Repurchase agreements must be between the municipal entity and a dealer bank or securities firm
A. Primary dealers on the Federal Reserve reporting dealer list which are rated “A” or better by S&P and Moody’s, or B. Banks rated “A” or above by S&P and Moody’s.

2. The written repurchase agreements contract must include the following:

A. Securities which are acceptable for transfer are:
(1) Direct United States governments, or
(2) Federal agencies backed by the full faith and credit of the United States government (and FNMA and FHLMC)
B. The term of a repurchase agreement may be up to 30
days.

C. The collateral must be delivered to the municipal entity, trustee (if trustee is not supplying the collateral) or third party acting as agent for the trustee (if the trustee is supplying the collateral) before/simultaneous with payment (perfection by possession of certificated securities).

D. The trustee has a perfected first priority security interest in the collateral.

E. Collateral is free and clear of third-party liens and in the case of SIPC broker was not acquired pursuant to a repurchase agreement or a reverse repurchase agreement.

F. Failure to maintain the requisite collateral percentage, after a two-day restoration period, will require the Trustee to liquidate the collateral.

G. Valuation of Collateral

1. The securities must be valued weekly, marked-tomarket at current market price plus accrued interest

2. The value of collateral must be equal to 104
percent of the amount of cash transferred by the municipal entity to the dealer bank or security firm under the repurchase agreement plus accrued interest. If the value of securities held as collateral slips below 104 percent of the value of the cash 631
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transferred by municipality, then additional cash and/or acceptable securities must be transferred. If, however, the securities used as collateral are FNMA or FHLMC, then the value of collateral must equal 105 percent.

3. A legal opinion must be delivered to the municipal
entity to the effect that the repurchase agreement meets guidelines under state law for legal investment of public funds. (l) Pre-refunded municipal bonds rated “Aaa” by Moody’s and “AAA” by S&P. If, however, the issue is only rated by S&P (i.e., there is no Moody’s rating), then the prerefunded bonds must have been pre-refunded with cash. direct United States or United States guaranteed obligations or “AAA” rated pre-refunded municipals to satisfy this condition. (m) The Local Agency Investment Fund in the treasury of the State. “Principal Account” means the account by that name established and held by the Trustee pursuant to Section 4.02(b).
“Projects” means the following City projects (all of which constitute “public capital improvements” as defined in the Act): (i) the construction of a new recreation center, and (ii) such other public infrastructure improvements to be determined by the City. “Project Costs” means, with respect to a Project, the costs, expenses and liabilities paid or incurred or to be paid or incurred by the City or the Authority, all calculated in accordance with generally accepted accounting principles, in connection with acquisition(s), financing, planning, engineering, design, construction and installation(s) relating to such Project or any portion thereof, and the obtaining of all governmental approvals, certificates, permits and licenses with respect thereto, including but not limited to (a) the costs of acquisition, renovation or construction of real or personal property or any interest therein, (b) any good faith or other similar payment or deposits, (c) the costs of any demolitions or relocation necessary in connection therewith, (d) costs of physical construction and costs incidental to such construction, renovation or acquisition, (e) all costs relating to injury and damage claims, (f) the costs of any indemnity or surety bonds and premiums on insurance, including obligations to a stock, mutual or reciprocal insurance company or exchange, (g) preliminary investigation and development costs, (h) engineering fees, contractors’ fees, legal fees and expenses, and any other fees and expenses of professional consultants and (i) the costs of labor, materials, equipment and utility services and supplies, (j) administrative and general overhead expenses and costs of keeping accounts and making reports required by the Indenture or the Sublease prior to or in connection with the completion of such Project, (k) all federal, state and local taxes and payments in lieu of taxes legally required to be paid in connection with such Project prior to or in connection with the completion of such Project. It is intended that this definition of Project Costs be broadly construed to encompass all costs, expenses and liabilities of the City and the Authority which are chargeable to the capital accounts of related Project in accordance with generally accepted accounting principles.
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“Project Fund” means the fund by that name established and held by the Trustee pursuant to Section 3.04.
“Qualified Reserve Account Credit Instrument” means an irrevocable standby or directpay letter of credit, surety bond or debt service reserve insurance policy issued by a commercial bank or insurance company and deposited with the Trustee pursuant to Section 4.02(c), provided that all of the following requirements are met: (i) at the time of issuance of such instrument, the long-term credit rating of such bank is within the two highest rating categories (without regard to the numerical or plus/minus modifiers) of Moody’s or S&P, or the claims paying ability of such insurance company is rated within the two highest rating categories (without regard to the numerical or plus/minus modifiers) of S&P or A.M. Best & Company, or if any of the Bonds are insured, the long-term credit rating of the claims paying ability of such insurance company is at least as high as the insured rating of the Bonds; (ii) such letter of credit, surety bond or insurance policy has a term which ends no earlier than the last Interest Payment Date of the Bonds to which the Reserve Requirement applies; (iii) such letter of credit, surety bond or insurance policy has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released pursuant to Section

4.02(c); and (iv) the Trustee is authorized pursuant to the terms of such letter of credit, surety bond or insurance policy to draw thereunder amounts necessary to carry out the purposes specified in Section 4.02(c), including the replenishment of the Interest Account or the Principal Account.
“Record Date” means, with respect to any Interest Payment Date, the fifteenth calendar day of the month immediately preceding such Interest Payment Date, whether or not such day is a Business Day.
“Redemption Fund” means the fund by that name established and held by the Trustee pursuant to Section 4.03.
“Registration Books” means the records maintained by the Trustee pursuant to Section

2.09 for the registration and transfer of ownership of the Bonds. “Rental Payments” means collectively the Base Rental Payments and the Additional Rental Payments.
“Representation Letter” means the Blanket Issuer Letter of Representations, dated November 17, 1995, from the Authority to DTC, qualifying bonds issued by the Authority for the Depository’s book-entry system, as originally executed or as it may be supplemented or revised or replaced by a letter to a substitute depository.
“Request of the Authority” means a request in writing signed by the Chair, the Executive Director, the Assistant Executive Director or the Controller of the Authority, or by any other officer of the Authority duly authorized for that purpose by a resolution adopted by the Authority Commission and filed with the Trustee.
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“Request of the City” means a request in writing signed by the Mayor, the City Manager, Assistant City Manager, the Administrative Services Director or by any other officer of the City duly authorized for that purpose.
[“Reserve Account” means the account by that name established and held by the Trustee pursuant to Section 4.02(c).
“Reserve Requirement” means as of any calculation date, an amount equal to the least of (i) ten percent of the proceeds (within the meaning of Section 148 of the Code) of the Bonds upon issuance; (ii) 125 percent of Average Annual Debt Service of the Bonds; or (iii) Maximum Annual Debt Service of the Bonds. The amount of the Reserve Requirement on any date is subject to confirmation by the Authority to the Trustee upon the Trustee’s request.] “Responsible Officer” means, when used with respect to the Trustee, any managing director, president, vice president, senior associate, associate or other officer of the Trustee within the Trust Office (or any successor corporate trust office) customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred at the Trust Office because of such person’s knowledge of and familiarity with the particular subject and having direct responsibility for the administration of this Indenture. “Revenues” means (a) all Base Rental Payments payable by the City pursuant to the Sublease (including prepayments); (b) any proceeds of Bonds originally deposited with the Trustee and held by the Trustee in the Lease Revenue Fund and the accounts thereof; (c) investment income with respect to any moneys held by the Trustee in the Lease Revenue Fund and the accounts thereof (other than amounts payable to the United States of America pursuant to Section 5.08); and (d) any insurance proceeds or condemnation awards received by or payable to the Trustee with respect to the Leased Properties, including rental interruption insurance.
“S&P” means S&P Global Ratings, its successors and assigns, or if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, any other nationally recognized securities rating agency designated by the Authority. “Securities Depositories” means The Depository Trust Company, 55 Water Street, New York, New York 10041, Attn: Call Notification Department, Fax (212) 855-7232 and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other securities depositories as the Authority may designate in a Certificate of the Authority delivered to the Trustee.
“State” means the State of California.
“Sublease” means the Sublease, dated as of October 1, 2022, with respect to the Leased Properties, by and between the Authority as sublessor and the City as sublessee, as the same may be amended, supplemented or otherwise modified from time to time. 634
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“Supplemental Indenture” means any agreement supplemental to or amendatory of this Indenture entered into in accordance with the provisions of Article VII. “Tax Certificate” means the Certificate Regarding Compliance with Certain Tax Matters (or similar instrument) dated the date of the original delivery date of the Bonds relating to the requirements of certain provisions of the Code, as such certificate may from time to time be modified or supplemented in accordance with the terms thereof. “Tax-Exempt” means, with respect to interest on any obligations of a state or local government that such interest is excluded from gross income for federal income tax purposes whether or not such interest is includable as an item of tax preference or otherwise includable directly or indirectly for purposes of calculating tax liabilities, including any alternative minimum tax, under the Code.
“Trust Office” means the corporate trust office of the Trustee in [Los Angeles, California] or such other offices as may be specified to the Authority by the Trustee in writing. With respect to presentation of Bonds for payment or for registration of transfer and exchange such term shall mean the office or agency of the Trustee at which, at any particular time, its corporate trust business shall be conducted.
“Trustee” means The Bank of New York Mellon Trust Company, N.A., and its successors and assigns, and any other corporation or association that may at any time be substituted in its place as provided in Article VI.

SECTION 1.02 Rules of Construction. All references in this Indenture to “Articles,” “Sections,” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Indenture; and the words “herein,” “hereof,” “hereunder,” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision hereof.

SECTION 1.03 Equal Security. In consideration of the acceptance of the Bonds by the Owners thereof, this Indenture shall be deemed to be and shall constitute a contract between the Authority and the Owners from time to time of the Bonds; and the covenants and agreements herein set forth to be performed on behalf of the Authority shall be for the equal and proportionate benefit, security and protection of all Owners of the Bonds without preference, priority or distinction as to security or otherwise of any of the Bonds over any of the others by reason of the number or date thereof or the time of sale, execution or delivery thereof, or otherwise for any cause whatsoever, except as expressly provided therein or herein.

ARTICLE II
AUTHORIZATION; GENERAL PROVISIONS
SECTION 2.01 Authorization; Designation. The Authority has reviewed all proceedings heretofore taken relative to the authorization of the Bonds and has found, as a result of such review, and hereby finds and determines that all things, conditions, and acts 635
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required by law to exist, to happen and to be performed precedent to and in the issuance of the Bonds do exist, have happened and have been performed in due time, form and manner as required by law, and the Authority is now authorized under the JPA Agreement and the Bond Law and each and every requirement of law, to issue the Bonds in the manner and form provided in this Indenture. Accordingly, the Authority hereby authorizes the issuance of the Bonds pursuant to the Bond Law and this Indenture for the purposes described in the recitals hereof.

The Bonds are authorized to be issued by the Authority under and subject to the Bond Law and the terms of this Indenture and shall be designated the South Tahoe Joint Powers Financing Authority Lease Revenue Bonds, Series 2022A, and shall be issued in the original aggregate principal amount of ___ Dollars ($[principal amount]).

SECTION 2.02 Terms of Bonds. The Bonds shall be dated the Closing Date, shall mature on the dates and in the amounts, and shall bear interest (calculated on the basis of a 360-day year of twelve 30-day months) at the rates, as follows:

Maturity Date
(October 1)
Principal
Amount
Interest Rate
Per Annum
Maturity Date
(October 1)
Principal
Amount
Interest Rate
Per Annum
The Bonds shall be delivered in fully registered form, numbered from one upwards in consecutive numerical order (with such alphabetical prefix as the Trustee shall determine). The Bonds shall be executed and delivered in the denominations of $5,000 and any integral multiple thereof.

Each Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof, unless (i) it is authenticated during the period from the day after the Record Date for an Interest Payment Date to and including such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (ii) it is authenticated on or prior to the Record Date for the first Interest Payment Date, in which event it shall bear interest from its dated date; provided, however, that if, at the time of registration of any Bond, interest with respect to such Bond is in default, such Bond shall bear interest from the Interest Payment Date to which interest has been paid or made available for payment with respect to such Bond.

Interest with respect to any Bond shall be payable in lawful money of the United States of America on each Interest Payment Date to the Owner thereof as of the close of business on the Record Date. Subject to Section 2.11, interest on the Bonds shall be paid by check or draft of the Trustee, mailed by first class mail no later than the Interest Payment Date to the Owner at such Owner’s address as it appears, on such Record Date, on the Registration Books maintained by the Trustee; provided, however, that at the written request of the Owner of at least $1,000,000 in aggregate principal amount of Outstanding Bonds filed with the Trustee prior to any Record Date, interest on such Bonds shall be paid to such Owner on each 636
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succeeding Interest Payment Date (unless such request has been revoked in writing) by wire transfer of immediately available funds to an account in the United States designated in such written request. Payments of defaulted interest with respect to the Bonds shall be paid by check or draft to the Owners as of a special record date to be fixed by the Trustee, notice of which special record date shall be given to the Owners of the Bonds not less than ten days prior thereto. The principal of and premium, if any, on the Bonds are payable by check when due upon surrender thereof at the Trust Office in lawful money of the United States of America.

SECTION 2.03 Redemption of Bonds.
(a) Extraordinary Redemption. The Bonds are subject to redemption prior to their respective maturity dates, upon notice as provided below, as a whole or in part on a pro rata basis (as much as practicable) among the maturities, on any date, from amounts on deposit in the Redemption Fund pursuant to Section 9 of the Sublease (from Net Proceeds received by the City from insurance payments or condemnation awards with respect to the Leased Properties or any portion thereof under the circumstances and upon the conditions and terms prescribed in the Sublease, together with additional money, if any, transferred by the City at its discretion for such purpose).

Redemption pursuant to this subsection (a) shall be made at a redemption price equal to the sum of the principal of the Bonds to be redeemed plus accrued interest thereon to the date fixed for redemption, without premium.
(b) Redemption Resulting from Prepayments of Base Rental. The Bonds maturing on or after October 1, [2032], shall be subject to redemption prior to their respective maturity dates, as a whole or in part, from prepayments of Base Rental made at the option of the City under Section 11(b) of the Sublease on any date with respect to which such prepayment have been made (which shall be on or after October 1, [2031]). The Bonds called for redemption pursuant to this Section 2.03(b) shall be redeemed at a redemption price equal to 100 percent of the principal amount of the Bonds to be redeemed, without premium, plus accrued interest thereon to the date of redemption.
(c) Redemption Resulting from Sinking Account Payments. The Bonds maturing on October 1, 20__ and October 1, 20__ shall be subject to redemption in part by lot from sinking account payments made by the Authority, at a redemption price equal to the principal amount thereof to be redeemed with accrued interest thereon to the redemption date, without premium, in the aggregate respective principal amounts and on the respective dates as set forth in the following tables; provided, however, if some but not all of the Term Bonds of a maturity have been redeemed pursuant to Section 2.03(a) or 2.03(b), each future sinking account payment with respect to such Term Bonds will be reduced on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, so that the total amount of sinking account payments with respect to such Term Bonds to be made subsequent to a Section 2.03(a) extraordinary redemption or a Section 2.03(b) optional redemption shall be reduced by an amount equal to the principal amount of the Term Bonds so redeemed, all as shall be designated pursuant to written notice filed by the Authority with the Trustee:
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Bonds Maturing on October 1, 20__
Redemption Date
(October 1)
Principal Amount
to be Redeemed
______________
* maturity
Bonds Maturing on October 1, 20__
Redemption Date
(October 1)
Principal Amount
to be Redeemed
______________
* maturity
In lieu of a redemption pursuant to this Section 2.03(c), the Trustee may apply amounts in the Principal Account to purchase Term Bonds at public or private sale, as and when and at such prices (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account) as may be directed by the Authority, except that the purchase price (exclusive of accrued interest) may not exceed the redemption price then applicable to such Bonds, as set forth in writing by the Authority; provided, however, that no Term Bonds shall be purchased by the Trustee hereunder with a settlement date more than 60 days prior to the date on which the Authority would otherwise redeem such Term Bonds pursuant to this Section 2.03(c). The principal amount of any Term Bonds so purchased by the Trustee shall be credited towards and shall reduce the Principal Account payment otherwise required to be made with respect to such Term Bonds on the applicable redemption date. (d) Notice of Redemption. The Authority shall give written notice of its intention to redeem Bonds under Section 2.03(a) or Section 2.03(b) to the Trustee at least 45 days before the proposed redemption date; provided, that the Trustee may accept a shorter notice period or waive such notice requirement at the Trustee’s sole discretion. The Trustee, on behalf and at the expense of the Authority, shall send by first class mail (or if the Owner of such Bonds is a depository, by such method as acceptable to such depository) notice of any redemption to the respective Owners of any Bonds designated for redemption at their respective addresses appearing on the Registration Books, and to the Securities Depositories and to one or more Information Services by such manner of delivery as then acceptable to such entities, at least 30 but not more than 60 days prior to the date fixed for redemption; provided, however, that neither failure to receive any such notice so sent nor any defect therein shall affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. Such notice shall state the date of the notice, the redemption date, the redemption place and the redemption price and shall specify the CUSIP numbers, the Bond numbers and the maturity or maturities (in the event of redemption of all of the Bonds of such 638
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maturity or maturities in whole) of the Bonds to be redeemed, and shall require that such Bonds be then surrendered at the Trust Office of the Trustee for redemption at the redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date. Neither the Authority nor the Trustee shall have any responsibility for any defect in the CUSIP number that appears on any Bond or in any redemption notice with respect thereto, and any such redemption notice may contain a statement to the effect that CUSIP numbers have been assigned by an independent service for convenience of reference and that neither the Authority nor the Trustee shall be liable for any inaccuracy in such numbers. (e) Right to Rescind Optional Redemption. The Authority (upon direction by the City, at the City’s option) may rescind any optional redemption by written notice to the Trustee at least one Business Day prior to the date fixed for redemption. In addition, any notice of optional redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default hereunder. The Authority, the City and the Trustee shall have no liability to the Owners or any other party related to or arising from such rescission. The Trustee shall send notices of such rescission in the same manner as that prescribed in Section 2.03(d) for notices of redemption. (f) Selection of Bonds for Redemption. Whenever provision is made in this Indenture for the redemption of less than all of the Bonds, the Trustee shall select the Bonds to be redeemed from all Outstanding Bonds or such given portion thereof not previously called for redemption, on a pro rata basis among the maturities (unless the maturity or maturities are otherwise specified in this Indenture or in writing by the Authority) and by lot within a maturity in any manner which the Trustee in its discretion shall deem appropriate, subject to the procedures of the Depository (if applicable). For purposes of such selection, all Bonds shall be deemed to be comprised of separate $5,000 portions and such portions shall be treated as separate Bonds, which may be separately redeemed.
(g) Partial Redemption of Bonds. In the event only a portion of any Bond is called for redemption, then upon surrender of such Bond the Authority shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of the same maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond being redeemed. A partial redemption shall be valid upon payment of the amount required to be paid to the Owner, and the Authority and the Trustee shall be released and discharged from all liability to the extent of such payment.
(h) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption shall have been duly provided, such Bonds so called shall cease to be entitled to any benefit under this Indenture other than the right to receive payment of the redemption price, and no interest shall accrue thereon from and after the redemption date.

All Bonds redeemed pursuant to this Section 2.03 shall be canceled by the Trustee. All moneys 639
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held by or on behalf of the Trustee for the payment of principal of or interest or premium on Bonds, whether at redemption or maturity, shall be held in trust for the account of the Owners thereof and the Trustee shall not be required to pay Owners any interest on, or be liable to Owners for any interest earned on, moneys so held.

SECTION 2.04 Form of Bonds. The Bonds, the form of Trustee’s certificate of authentication, and the form of assignment to appear thereon, shall be substantially in the respective forms set forth in Exhibit A attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Indenture.

SECTION 2.05 Execution of Bonds. The Bonds shall be signed in the name and on behalf of the Authority with the manual or facsimile signatures of its Chair or Vice Chair and attested with the manual or facsimile signature of its Secretary or any Assistant Secretary duly appointed by the Authority Governing Board, and shall be delivered to the Trustee for authentication by it. In case any officer of the Authority who shall have signed any of the Bonds shall cease to be such officer before the Bonds so signed shall have been authenticated or delivered by the Trustee or issued by the Authority, such Bonds may nevertheless be authenticated, delivered and issued and, upon such authentication, delivery and issue, shall be as binding upon the Authority as though the individual who signed the same had continued to be such officer of the Authority. Also, any Bond may be signed on behalf of the Authority by any individual who on the actual date of the execution of such Bond shall be the proper officer although on the nominal date of such Bond such individual shall not have been such officer.

Only such of the Bonds as shall bear thereon a certificate of authentication, manually executed on behalf of the Trustee, shall be valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of the Trustee shall be conclusive evidence that the Bonds so authenticated have been duly authenticated and delivered hereunder and are entitled to the benefits of this Indenture.

SECTION 2.06 Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by his duly authorized attorney, upon presentation and surrender of such Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form approved by the Trustee, duly executed. Whenever any Bond shall be surrendered for transfer, the Authority shall execute and the Trustee shall thereupon authenticate and deliver to the transferee a new Bond or Bonds of like tenor, maturity and aggregate principal amount. The cost of printing any Bonds and any services rendered or expenses incurred by the Trustee in connection with any such transfer shall be paid by the Authority, except that the Trustee shall require the payment by the Owner requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer. The Trustee shall not be required to transfer, pursuant to this Section, (a) any Bond during the period established by the Trustee for the selection of Bonds for redemption or (b) any Bond selected for redemption pursuant to Section 2.03(f). Prior to any transfer of the Bonds outside the book-entry system (including, but 640
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not limited to, the initial transfer outside the book-entry system), the transferor shall provide or cause to be provided to the Trustee all information necessary to allow the Trustee to comply with any applicable tax reporting obligations, including without limitation any cost basis reporting obligations under Internal Revenue Code Section 6045, as amended. The Trustee may conclusively rely on the information provided to it and shall have no responsibility to verify or ensure the accuracy of such information.

SECTION 2.07 Exchange of Bonds. Bonds may be exchanged at the Trust Office of the Trustee for the same aggregate principal amount of Bonds of the same tenor and maturity and of other authorized denominations. The cost of printing any Bonds and any services rendered or expenses incurred by the Trustee in connection with any such exchange shall be paid by the Authority, except that the Trustee shall require the payment by the Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. The Trustee shall not be required to exchange, pursuant to this Section, (a) any Bond during the period established by the Trustee for the selection of Bonds for redemption or (b) any Bond selected for redemption pursuant to Section 2.03(f).

SECTION 2.08 Temporary Bonds. The Bonds may be issued initially in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the Authority and may contain such reference to any of the provisions of this Indenture as may be appropriate. Every temporary Bond shall be executed by the Authority and be registered and authenticated by the Trustee upon the same conditions and in substantially the same manner as the definitive Bonds. If the Authority issues temporary Bonds, it will execute and furnish definitive Bonds without delay, and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange therefor at the Trust Office of the Trustee, and the Trustee shall authenticate and deliver in exchange for such temporary Bonds definitive Bonds of like tenor, maturity and aggregate principal amount in authorized denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits under this Indenture as definitive Bonds authenticated and delivered hereunder.

SECTION 2.09 Registration Books. The Trustee will keep or cause to be kept at its Trust Office sufficient records for the registration and transfer of the Bonds, which shall at all times during regular business hours be open to inspection by the Authority with reasonable prior notice; and, upon presentation for such purpose, the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer, or cause to be registered or transferred, on said records, Bonds as provided herein.

SECTION 2.10 Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated, the Authority, at the expense of the Owner of said Bond, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor, maturity and aggregate principal amount in an authorized denomination in exchange and substitution for the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee shall be canceled by it. If any Bond issued 641
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hereunder shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee and, if such evidence shall be satisfactory to it and indemnity satisfactory to it shall be given, the Authority, at the expense of the Bond Owner, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in lieu of and in substitution for the Bond so lost, destroyed or stolen (or if any such Bond shall have matured or shall have been called for redemption, instead of issuing a substitute Bond the Trustee may pay the same without surrender thereof upon receipt of indemnity satisfactory to the Trustee). The Authority may require payment of a reasonable fee for each new Bond issued under this Section and of the expenses that may be incurred by the Authority and the Trustee.

Any Bond issued under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original contractual obligation on the part of the Authority whether or not the Bond alleged to be lost, destroyed or stolen shall be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Indenture with all other Bonds secured by this Indenture.

SECTION 2.11 Book-Entry System.
(a) Book-Entry System; Limited Obligation of Authority. The Bonds shall be initially delivered in the form of a separate single fully registered Bond (which may be typewritten) for each of the maturities of the Bonds (unless the Bonds of such maturity bear different interest rates, then one Bond for each interest rate among such maturity). Upon initial delivery, the ownership of each such Bond shall be registered in the registration books kept by the Trustee in the name of the Nominee as nominee of the Depository. Except as provided in Section 2.11(c), all of the Outstanding Bonds shall be registered in the registration books kept by the Trustee in the name of the Nominee.

With respect to Bonds registered in the registration books kept by the Trustee in the name of the Nominee, the Authority and the Trustee shall have no responsibility or obligation to any Participant or to any person on behalf of which such a Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the Authority and the Trustee shall have no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee, or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person, other than an Owner as shown in the registration books kept by the Trustee, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository and its Participants of the beneficial interests in the Bonds to be redeemed in the event the Bonds are redeemed in part, or (iv) the payment to any Participant or any other person, other than an Owner as shown in the registration books kept by the Trustee, of any amount with respect to principal of, premium, if any, or interest due with respect to the Bonds. The Authority and the Trustee may treat and consider the person in whose name each Bond is registered in the registration books kept by the Trustee as the holder and absolute owner of such Bond for the purpose of payment of principal, premium, if any, and interest with respect to such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes 642
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whatsoever. The Trustee shall pay all principal of, premium, if any, and interest due with respect to the Bonds only to or upon the order of the respective Owners, as shown in the registration books kept by the Trustee, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to satisfy and discharge fully the Authority’s obligations with respect to payment of the principal, premium, if any, and interest due with respect to the Bonds to the extent of the sum or sums so paid. No person other than an Owner, as shown in the registration books kept by the Trustee, shall receive a Bond evidencing the obligation of the Authority to make payments of principal, premium, if any, and interest pursuant to this Indenture. Upon delivery by the Depository to the Trustee and the Authority of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions herein with respect to Record Dates, the word Nominee in this Indenture shall refer to such new nominee of the Depository. (b) Representation Letter. In order to qualify the Bonds for the Depository’s book-entry system, the Authority has previously executed and delivered to such Depository the Representation Letter. The Representation Letter does not in any way impose upon the Authority or the Trustee any obligation whatsoever with respect to persons having interests in the Bonds other than the Owners, as shown on the registration books kept by the Trustee. The Trustee agrees to take all action necessary to continuously comply with the Representation Letter to the extent that such action is not inconsistent with this Indenture. In addition to the execution and delivery of the Representation Letter, the Chair, the Executive Director, the Assistant Executive Director and the Secretary and all other officers of the Authority are hereby authorized to take any other actions, not inconsistent with this Indenture, to qualify the Bonds for the Depository’s book-entry program.
(c) Transfers Outside of Book-Entry System. In the event (i) the Depository determines not to continue to act as securities depository for the Bonds, or (ii) the Authority determines that the Depository shall no longer so act, then the Authority will discontinue the book entry system with the Depository. If the Authority fails to identify another qualified securities depository to replace the Depository, then the Bonds so designated shall no longer be restricted to being registered in the registration books kept by the Trustee in the name of the Nominee, but shall be registered in whatever name or names persons transferring or exchanging Bonds shall designate, in accordance with the provisions of Section 2.09. (d) Payments to Nominee. Notwithstanding any other provisions of this Indenture to the contrary, so long as any Bond is registered in the name of the Nominee, all payments with respect to principal, premium, if any, and interest due with respect to such Bond and all notices with respect to such Bond shall be made and given, respectively, as provided in the Representation Letter or as otherwise instructed by the Depository. (e) Initial Depository and Nominee. The initial Depository under this Article shall be The Depository Trust Company, New York, New York. The initial Nominee shall be Cede & Co., as Nominee of The Depository Trust Company, New York, New York. 643
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ARTICLE III
ISSUANCE; DEPOSIT AND APPLICATION OF PROCEEDS; VALIDITY; ADDITIONAL BONDS SECTION 3.01 Issuance of Bonds. Upon the execution and delivery of this Indenture, the Authority shall execute and deliver the Bonds to the Trustee for authentication and delivery to or on the order of the Original Purchaser upon the Request of the Authority.

SECTION 3.02 Application of Proceeds of Sale of Bonds. On the Closing Date, the Trustee shall receive, on behalf of the Authority, $___ from the Original Purchaser (representing the par amount of the Bonds, [plus/less] an original issue [premium/discount] of $___, less an underwriter’s discount of $___). The Trustee shall apply the Bonds proceeds as follows:
(a) Deposit $__ in the Costs of Issuance Fund; and
(b) Deposit $__ to the Project Fund.

For record keeping purposes the Trustee may establish such funds and accounts as may be necessary to reflect such deposits.

SECTION 3.03 Costs of Issuance Fund. The Trustee shall establish a fund known as the “Costs of Issuance Fund.” Pursuant to Section 3.02(a), the Trustee shall deposit a portion of the proceeds of the sale of the Bonds into the Costs of Issuance Fund. The moneys in the Costs of Issuance Fund shall be used from time to time to pay Costs of Issuance with respect to the Bonds and shall be disbursed by the Trustee upon delivery to the Trustee of a requisition, substantially in the form attached hereto as Exhibit B, executed by an authorized officer of the Authority. Each such requisition of the Authority shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have no duty to confirm the accuracy of such facts. On the date that is 180 days following the Closing Date, or upon the earlier receipt by the Trustee of a Request of the Authority to do so, the Trustee shall transfer all remaining amounts in the Costs of Issuance Fund to the Lease Revenue Fund.

SECTION 3.04 Project Fund. The Trustee shall establish and maintain a separate fund to be known as the “Project Fund.” On the Closing Date, the Trustee shall deposit a portion of the sale proceeds of the Bonds into the Project Fund pursuant to Section 3.02(b).

The Trustee shall disburse or transfer amounts from the Project Fund, as stated in a Request of the City, substantially in the form attached hereto as Exhibit C, for the payment of the Project Costs relating to the Projects (including reimbursement to the City for any such costs paid by it).

Upon receipt of each such Request of the City, the Trustee shall pay the amount set forth in such Request as directed by the terms thereof. When the Projects, or the portions thereof determined by the City to be financed hereunder, have been completed, the Authority shall deliver or shall cause the City to deliver to the Trustee a Certificate of the City stating the fact and date of such completion. Following the delivery of such certificate, the Trustee shall transfer amounts then on deposit in the Project Fund (or such portion thereof as may be specified in such Request of the City) to the Lease Revenue Fund. 644
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SECTION 3.05 Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not be affected in any way by any proceedings taken with respect to the application of the proceeds of the Bonds, and the recital contained in the Bonds that the same are issued pursuant to the Bond Law shall be conclusive evidence of their validity and of the regularity of their issuance.

SECTION 3.06 Additional Bonds.
(a) Subject to this Section 3.06, the Authority may from time to time issue one or more series of Additional Bonds payable from and secured by Revenues on parity with all other Outstanding Bonds. Bonds issued pursuant to this Section 3.06 shall be issued under and pursuant to a Supplemental Indenture which shall specify:
(1) The maturity date or dates of such Additional Bonds, which shall be October 1 in any given year;
(2) The interest payment dates, which shall be April 1 and October 1; (3) The terms, if any, for call and redemption of such Additional Bonds prior to maturity; and
(4) The interest rate or rates on such Additional Bonds and any other matters deemed appropriate or necessary and not inconsistent with the provisions of this Indenture.
(b) All of the Additional Bonds shall be executed by the Authority for issuance under the Indenture and delivered to the Trustee and thereupon shall be delivered by the Trustee upon the Request of the Authority but only upon receipt by the Trustee of the following documents or money or securities:
(1) A certified copy of the Supplemental Indenture authorizing the issuance of such Additional Bonds;
(2) A Request of the Authority as to the delivery of such Additional Bonds;
(3) An opinion of Bond Counsel substantially to the effect that: (i) the Authority has the right and power under the Act to execute and deliver such Supplemental Indenture, and such Supplemental Indenture has been duly executed and delivered by the Authority, and the Indenture and such Supplemental Indentures are in full force and effect and are valid and binding upon the Authority and enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights and similar qualifications); (ii) such Additional Bonds are valid and binding special obligations of the 645
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Authority, enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights) and are subject to the terms of the Indenture and all Supplemental Indentures and entitled to the benefits of the Indenture and all such Supplemental Indentures and the Act, and such Additional Bonds have been duly and validly issued in accordance with the Act and the Indenture and all such Supplemental Indentures; and (iii) the obligation of the City to make the Base Rental Payments during the term of the Sublease as amended pursuant to this Section 3.06 is a valid and binding obligation of the City.
(4) A Certificate of the Authority: (i) certifying that the Authority is in compliance in all material respects with all agreement and covenants contained herein and that no Event of Default has occurred or is continuing; (ii) stating that the Authority and the City have entered into an amendment to the Sublease pursuant to which the City is obligated to make Base Rental Payments at times and in amounts sufficient to provide for payment of the principal of and interest on the Bonds (including such Additional Bonds) which will be Outstanding following the sale and delivery of such Additional Bonds; and (iii) containing such additional statements as may be reasonably necessary to show compliance with the requirements of the Indenture;
(5) An executed copy of the amendment to the Sublease; and Such further documents, money and securities as are required by the provisions of the Indenture and the Supplemental Indenture providing for the issuance of such Additional Bonds.

ARTICLE IV
REVENUES; FLOW OF FUNDS
SECTION 4.01 Pledge of Revenues; Assignment of Rights. Subject to the provisions of Section 6.03 (Fees, Charges and Expenses of the Trustee), the Bonds shall be secured by a first lien on and pledge (which shall be effected in the manner and to the extent hereinafter provided) of all of the Revenues and a pledge of all the moneys in the Lease Revenue Fund, including all amounts derived from the investments of such moneys. The Bonds shall be equally secured by a pledge, charge and lien upon the Revenues and such moneys without priority for number, date of the Bonds, date of execution or date of delivery; and the payment of the interest on and principal of the Bonds and any premiums upon the redemption of any portion thereof shall be and are secured by an exclusive pledge, charge and lien upon the Revenues and such moneys. So long as any of the Bonds are Outstanding, the Revenues shall not be used for any other purpose; except that out of the Revenues and such moneys there may be apportioned such sums, for such purposes, as are expressly permitted by Section 4.02. 646
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Pursuant to the Assignment Agreement, the Authority has transferred in trust and assigns to the Trustee, for the benefit of the Owners from time to time of the Bonds, all of the Revenues and all of the right, title and interest of the Authority in (but not of its obligations under) the Lease and the Sublease (other than its rights to indemnification and payment or reimbursement for any costs or expenses), including its rights to receive the Base Rental scheduled to be paid by the City under and pursuant to the Sublease and any and all of the other rights of the Authority under the Lease and the Sublease as may be necessary to enforce payment of such Base Rental when due or otherwise to protect the interest of the Owners of the Bonds, including its leasehold title to the Leased Properties leased to the City pursuant to the Sublease. The Trustee accepts such assignments. The Trustee shall be entitled to and shall receive all of the Revenues, and any Revenues collected or received by the Authority shall be deemed to be held, and to have been collected or received, by the Authority as the agent of the Trustee and shall promptly be paid by the Authority to the Trustee.

SECTION 4.02 Lease Revenue Fund. All Base Rental Payments shall be deposited by the Trustee in a special fund designated as the “Lease Revenue Fund,” which the Trustee shall establish, maintain and hold in trust hereunder.

On or before each Interest Payment Date, the Trustee shall transfer from the Lease Revenue Fund and deposit into the following respective accounts (each of which the Trustee shall establish and maintain within the Lease Revenue Fund), the following amounts in the following order of priority, the requirements of each such account (including the making up of any deficiencies in any such account resulting from lack of Revenues sufficient to make any earlier required deposit) at the time of deposit to be satisfied before any transfer is made to any account subsequent in priority:
(a) Interest Account. On or before each Interest Payment Date, the Trustee shall deposit in the Interest Account an amount required to cause the aggregate amount on deposit in the Interest Account to equal the amount of interest becoming due and payable on such Interest Payment Date on all Outstanding Bonds. No deposit need be made into the Interest Account if the amount contained therein is at least equal to the interest becoming due and payable upon all Outstanding Bonds on each succeeding Interest Payment Date within the then current Bond Year. All moneys in the Interest Account shall be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds as it shall become due and payable (including accrued interest on any Bonds redeemed prior to maturity pursuant to Section 2.03).
(b) Principal Account. On or before each Interest Payment Date, the Trustee shall deposit in the Principal Account an amount required to cause the aggregate amount on deposit in the Principal Account to equal the principal amount of the Bonds maturing or required to be redeemed through mandatory sinking account redemption on such Interest Payment Date pursuant to Section 2.02 or Section 2.03. All moneys in the Principal Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Bonds.
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(c) [Reserve Account. On or before each Interest Payment Date, the Trustee shall deposit in the Reserve Account such amount as may be necessary to maintain a balance therein equal to the Reserve Requirement. No deposit need be made in the Reserve Account so long as there shall be on deposit an amount equal to the Reserve Requirement. Except as otherwise provided herein, money in (or available to) the Reserve Account shall be used and withdrawn by the Trustee solely for the purpose of replenishing the Interest Account or the Principal Account in such order, in the event of any deficiency at any time in either of such accounts, or for the purpose of paying the interest on or principal of the Bonds, or for the retirement of all Bonds then Outstanding. Any amount in the Reserve Account in excess of the Reserve Requirement shall be determined on or promptly after each Interest Payment Date and transferred in accordance with this Indenture, to the Interest Account to be applied toward the interest payment of the Bonds, unless otherwise directed by a Request of the City.

The Reserve Requirement may be satisfied by crediting to the Reserve Account moneys or one or more Qualified Reserve Account Credit Instruments or any combination thereof, which in the aggregate make funds available in the Reserve Account in an amount equal to the Reserve Requirement. Upon the deposit with the Trustee of such Qualified Reserve Account Credit Instrument, the Trustee shall release moneys then on hand in the Reserve Account to the City, to be used for any lawful purpose, in an amount equal to the face amount of the Qualified Reserve Account Credit Instrument.]
(d) Surplus. On or promptly after each Interest Payment Date, Trustee shall determine the amount, if any, remaining in the Lease Revenue Fund after making the deposits required by paragraphs (a) through (c) above and the transfers of investment earnings pursuant to Section 4.05, and shall notify the City of the amount so determined. The Trustee shall apply such amount as a credit against the next following Base Rental Payment; provided however, if directed in a Request of the City, the Trustee shall, with respect to all or any portion of such amount, pay, or set an amount aside for the payment of, any rebate requirement in accordance with a computation made by the City pursuant to the Code, or if no such rebate requirement is then due, release to the City for use for any lawful purpose.

SECTION 4.03 Redemption Fund. To the extent the Authority has provided the Trustee with written notice of its intention to redeem Bonds in connection with an extraordinary redemption pursuant to Section 2.03(a) or an optional redemption pursuant to Section 2.03(b), the Trustee shall establish a fund known as “Redemption Fund.” At any time the Trustee receives money from the City pursuant to Section 9 of the Sublease (Net Proceeds of insurance payments or taking proceedings) or Section 11(b) of the Sublease (optional prepayment by the City), the Trustee shall immediately deposit such money as follows: (i) an amount equal to the interest on the Bonds to be redeemed pursuant to Section 2.03(a) or Section 2.03(b) accrued to the redemption date shall be deposited in the Interest Account; and (ii) the balance of such moneys shall be deposited in the Redemption Fund. Amounts on deposit in the Redemption Fund shall be applied solely for the purpose of paying the principal of the Bonds to be redeemed pursuant to Section 2.03(a) or Section 2.03(b); provided, however, that at any time prior to giving notice of redemption of any such Bonds, the Trustee 648
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may apply such amounts to the purchase of Bonds at public or private sale, as and when and at such prices (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account) as shall be directed in writing by the Authority, except that the purchase price (exclusive of accrued interest) may not exceed the redemption price then applicable to the Bonds.

SECTION 4.04 Application of Net Proceeds. If the Leased Properties or any portion thereof shall be damaged or destroyed, subject to the further requirements of this Section, the City shall, as expeditiously as possible, continuously and diligently prosecute or cause to be prosecuted the repair or replacement thereof, unless the City elects not to repair or replace the Leased Properties or the affected portion thereof in accordance with the provisions hereof.

The Net Proceeds (other than Net Proceeds of rental interruption insurance), including the proceeds of any self-insurance, received on account of any damage or destruction of the Leased Properties or a portion thereof shall as soon as possible be deposited with the Trustee and be held by the Trustee in a special fund entitled the “Insurance and Condemnation Fund” and made available for and, to the extent necessary, shall be applied to the cost of repair or replacement of the Leased Properties or the affected portion thereof upon receipt of a written request of the City, together with invoices therefor. Each such written request of the City shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have no duty to confirm the accuracy of such facts. Pending such application, such proceeds may be invested by the Trustee as directed by the City in Permitted Investments that mature not later than such times moneys are expected to be needed to pay such costs of repair or replacement.

Notwithstanding the foregoing, the City shall, within 60 days of the occurrence of the event of damage or destruction, notify the Trustee in writing as to whether the City intends to replace or repair the Leased Properties or the portions of the Leased Properties which were damaged or destroyed. If the City does intend to replace or repair the Leased Properties or portions thereof, the City shall deposit with the Trustee the full amount of any insurance deductible to be credited to the special account.

If the damage, destruction or loss was such that there resulted in a substantial interference with the City’s right to the use or occupancy of the Leased Properties and an abatement of Rental Payments results from such damage or destruction pursuant to Section 9(b) of the Sublease, then the City shall be required either to (a) apply sufficient funds from the insurance proceeds and other legally available funds to the replacement or repair of the Leased Properties or the portions thereof which have been damaged to the condition which existed prior to such damage or destruction, or (b) apply sufficient funds from the insurance proceeds and other legally available funds to the redemption, as set forth in subsection (a) of Section 2.03 hereof and the corresponding provisions of any Supplemental Indenture pursuant to which Additional Bonds are issued, in full of all the Outstanding Bonds or all of those Outstanding Bonds which would have been payable from that portion of the Base Rental Payments which are abated as a result of the damage or destruction. Funds to be applied to the redemption of Bonds in accordance with clause (b) above shall be deposited in the Redemption Fund. If the City is not required to replace or repair the Leased Properties, or the 649
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affected portion thereof, as set forth in clause (a) above or to use such amounts to redeem Bonds as set forth in clause (b) above, then such proceeds shall, if there is first delivered to the Trustee a Written Certificate of the City to the effect that the annual fair rental value of the Leased Properties after such damage or destruction, and after any repairs or replacements made as a result of such damage or destruction, is at least equal to 100% of the maximum amount of Base Rental Payments becoming due under the Sublease in the then current Rental Period or any subsequent Rental Period and the fair replacement value of the Leased Properties after such damage or destruction is at least equal to the principal amount of the Outstanding Bonds, be paid to the City to be used for any lawful purpose.

The proceeds of any award in eminent domain received in respect to the Leased Properties shall be deposited by the Trustee in the Redemption Fund and applied to the redemption of Bonds pursuant to subsection (a) of Section 2.03 hereof and the corresponding provisions of any Supplemental Indenture pursuant to which Additional Bonds are issued.

SECTION 4.05 Investments. All moneys in any of the funds or accounts established with the Trustee pursuant to this Indenture shall be invested by the Trustee solely in Permitted Investments pursuant to the written direction of the Authority given to the Trustee at least two Business Days in advance of the making of such investments; which Permitted Investments shall, as nearly as practicable, mature (or be subject to redemption or disposition by the Trustee) on or before the dates on which such money is anticipated to be needed for disbursement hereunder. In the absence of any such direction from the Authority, the Trustee shall invest any such moneys in money market funds described in clause (d) of the definition of Permitted Investments, so long as such money market funds contain only United States Treasury or United States local government obligations; provided, however, that any such investment shall be made by the Trustee only if, prior to the date on which such investment is to be made, the Trustee shall have received a written request of the Authority specifying a specific money market fund and, if no such request of the Authority is so received, the Trustee shall hold such moneys uninvested. Obligations purchased as an investment of moneys in any fund or account shall be deemed to be part of such fund or account. The Trustee may make any and all such investments through its own investment department or that of its affiliates or subsidiaries, and may charge its ordinary and customary fees for such trades, including account maintenance fees. In the absence of investment instructions from the Authority or City, the Trustee shall hold the moneys held by it hereunder uninvested.

The Trustee shall transfer at least semiannually immediately after any Interest Payment Date all investment earnings on amounts in the Principal Account, and the Interest Account to the Lease Revenue Fund. If the balance in the Reserve Account is then at least equal to the Reserve Requirement, the Trustee immediately shall transfer all investment earnings on amounts in the Reserve Account, which are in excess of the Reserve Requirement, to the Lease Revenue Fund. Unless otherwise specified in this Indenture, investment earnings on amounts in all other funds and accounts established and maintained pursuant to this Indenture shall be retained in such respective funds and accounts. For purposes of acquiring any investments hereunder, the Trustee may commingle funds held by it hereunder. The Trustee or an affiliate of the Trustee may act as principal or agent in the acquisition or disposition of any investment 650
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and may impose its customary charges therefor. The Trustee shall incur no liability for losses arising from any investments made pursuant to instructions or directions from the Authority.

The Authority acknowledges that regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Authority the right to receive brokerage confirmations of security transactions to be effected by the Trustee hereunder as they occur.

The Authority specifically waives the right to receive such notification to the extent permitted by applicable law and agrees that it will instead receive periodic cash transaction statements which include detail for the investment transactions effected by the Trustee hereunder; provided, however, that the Authority retains its right to receive brokerage confirmation on any investment transaction requested by the Authority.

SECTION 4.06 Valuation and Disposition of Investments. For the purpose of determining the amount in any fund or account, Permitted Investments credited to such fund or account shall be valued semiannually at the Fair Market Value thereof; provided that as to certificates of deposits and banker acceptances, the value thereof shall equal the face amount, plus accrued interest thereon. The Trustee shall have no duty in connection with the determination of Fair Market Value other than to follow its normal practice in determining the value of Permitted Investments, which may include utilizing computerized securities pricing services that may be available to it including those available through its regular accounting system.

ARTICLE V

COVENANTS OF THE AUTHORITY
SECTION 5.01 Punctual Payment. The Authority shall punctually pay or cause to be paid the principal and interest to become due in respect of all the Bonds, in strict conformity with the terms of the Bonds and of this Indenture, according to the true intent and meaning thereof, but only out of Revenues and other assets pledged for such payment as provided in this Indenture.

SECTION 5.02 Extension of Payment of Bonds. The Authority shall not directly or indirectly extend or assent to the extension of the maturity of any of the Bonds or the time of payment of any claims for interest by the purchase of such Bonds or by any other arrangement, and in case the maturity of any of the Bonds or the time of payment of any such claims for interest shall be extended, such Bonds or claims for interest shall not be entitled, in case of any default hereunder, to the benefits of this Indenture, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest thereon which shall not have been so extended. Nothing in this Section shall be deemed to limit the right of the Authority to issue Bonds for the purpose of refunding any Outstanding Bonds, and such issuance shall not be deemed to constitute an extension of maturity of the Bonds.

SECTION 5.03 Against Encumbrances. The Authority shall not create, or permit the creation of, any pledge, lien, charge or other encumbrance upon the Revenues and other assets pledged or assigned under this Indenture while any of the Bonds are Outstanding, except the 651
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pledge and assignment created by this Indenture. Subject to this limitation, the Authority expressly reserves the right to enter into one or more other indentures for any of its corporate purposes, including other programs under the Bond Law, and reserves the right to issue other obligations for such purposes.

SECTION 5.04 Power to Issue Bonds and Make Pledge and Assignment. The Authority is duly authorized pursuant to law to issue the Bonds and to enter into this Indenture and to pledge and assign the Revenues, the Lease, the Sublease and other assets purported to be pledged and assigned, respectively, under this Indenture in the manner and to the extent provided in this Indenture. The Bonds and the provisions of this Indenture are and will be the legal, valid and binding special obligations of the Authority in accordance with their terms, and the Authority and the Trustee (subject to the provisions of Section 6.02 hereof) shall at all times, to the extent permitted by law, defend, preserve and protect said pledge and assignment of Revenues and other assets and all the rights of the Bond Owners under this Indenture against all claims and demands of all persons whomsoever.

SECTION 5.05 Accounting Records and Financial Statements. The Trustee shall at all times keep, or cause to be kept, proper books of record and account, prepared in accordance with corporate trust industry standards, in which complete and accurate entries shall be made of all transactions by the Trustee relating to the proceeds of Bonds, the Revenues, the Sublease and all funds and accounts established pursuant to this Indenture. Such books of record and account shall be available for inspection by the Authority and the City during regular business hours with reasonable prior notice.

SECTION 5.06 Additional Obligations. The Authority covenants that no additional bonds, notes or indebtedness shall be issued or incurred that are payable out of the Revenues in whole or in part, except as permitted under Section 3.06 of this Indenture.

SECTION 5.07 Sublease. The Trustee, as assignee of the Authority’s rights under the Sublease pursuant to Section 4.01 and under the Assignment Agreement, shall receive all amounts due from the City pursuant to the Sublease.

The Authority will faithfully comply with, keep, observe and perform all the agreements, conditions, covenants and terms contained in the Sublease required to be complied with, kept, observed and performed by it and, together with the Trustee, will enforce the Sublease against the City in accordance with its terms.

The Authority will not alter, amend or modify the Sublease without the prior written consent of the Trustee, which consent shall be given only (i) if the Trustee receives an opinion of Bond Counsel that such alteration, amendment or modification will not result in any material impairment of the security given or intended to be given for the payment of the Base Rental Payments, or (ii) if the Trustee first obtains the written consents of the Owners of at least a majority in aggregate principal amount of the Bonds then Outstanding to such alteration, amendment or modification. Prior to any amendment or modification of the Sublease pursuant to this Section 5.07, the Trustee may require the Authority to deliver to the Trustee an opinion 652
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of Bond Counsel to the effect that such amendment or modification has been adopted in accordance with the requirements of this Indenture.

SECTION 5.08 Tax Covenants.
(a) The Authority shall not take any action, or fail to take any action, if any such action or failure to take action would adversely affect the Tax-Exempt status of interest on the Bonds under Section 103(a) of the Code or cause interest on any Bond to be an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations under Section 55 of the Code.
(b) In furtherance of the foregoing tax covenant, the Authority shall comply with the provisions of the Tax Certificate, which is incorporated in this Indenture as if fully set forth in this Indenture. These covenants shall survive payment in full or defeasance of the Bonds.
(c) If directed in a Request of the City, the Trustee shall establish when required and maintain a fund separate from any other fund or account established and maintained hereunder designated as the “Rebate Fund.” Upon the written direction of the City, there shall be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to the Tax Certificate. All money at any time deposited in the Rebate Fund shall be held by the Trustee in trust, to the extent required to satisfy the Rebate Amount (as defined in the Tax Certificate), for payment to the United States of America. Notwithstanding the provisions of Article IV (relating to the pledge of Revenues, the allocation of money in the Lease Revenue Fund, and the investments of money in any fund or account) and Section 9.03 (relating to the defeasance of Bonds), all amounts required to be deposited into or on deposit in the Rebate Fund shall be governed exclusively by this Section 5.08 and by the Tax Certificate (which is incorporated herein by reference). The Trustee shall be deemed conclusively to have complied with such provisions if it follows the Request of the City, and shall have no liability or responsibility to enforce compliance by the Authority or the City with the terms of the Tax Certificate.
(d) Notwithstanding any provision of this Section, if the Authority or the City shall provide to the Trustee an opinion of Bond Counsel that any specified action required under this Section is no longer required or that some further or different action is required to maintain the exclusion from federal income tax of interest on the Bonds, the Trustee, the Authority and the City may conclusively rely on such opinion in complying with the requirements of this Section and, notwithstanding Article VII, the covenants hereunder shall be deemed to be modified to that extent.

SECTION 5.09 Continuing Disclosure. In connection with the issuance of the Bonds, the Authority shall cause the City to enter into a Continuing Disclosure Agreement. It is hereby recognized that a failure of the City to comply with a Continuing Disclosure Agreement shall not constitute a default under this Indenture or the Sublease; provided, however, the Original Purchaser or the Owner or beneficial owner of the Bonds relating to such Continuing Disclosure 653
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Agreement may take such actions as may be necessary and appropriate to compel performance, including seeking mandate or specific performance by court order.

SECTION 5.10 Further Assurances. The Authority shall adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Indenture, and for the better assuring and confirming unto the Owners of the Bonds the rights and benefits provided in this Indenture.

ARTICLE VI

THE TRUSTEE
SECTION 6.01 Appointment of Trustee. The Bank of New York Mellon Trust Company, N.A., a national banking association duly organized and existing under and by virtue of the laws of the United States of America, is hereby appointed Trustee by the Authority for the purpose of receiving all moneys required to be deposited with the Trustee hereunder and to allocate, use and apply the same as provided in this Indenture. The Authority agrees that, so long as any Bonds are Outstanding, it will maintain a Trustee which is (A) a national banking association that is supervised by the Office of the Comptroller of the Currency and has at least $250 million of assets, or (B) a state-chartered commercial bank that is a member of the Federal Reserve System and has at least $1 billion of assets. If such bank, national banking association or trust company or such parent corporation publishes a report of condition at least annually pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purpose of this Section 6.01 the combined capital and surplus of such bank, national banking association or trust company or such parent corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

The Trustee is hereby authorized to pay the principal of and interest and redemption premium (if any) on the Bonds when duly presented for payment at maturity, or on redemption prior to maturity, and to cancel all Bonds upon payment thereof. The Trustee shall keep accurate records of all funds and accounts administered by it and of all Bonds paid and discharged.

SECTION 6.02 Acceptance of Trusts. The Trustee hereby accepts the trusts imposed upon it by this Indenture, and agrees to perform said trusts, but only upon and subject to the following express terms and conditions:
(a) The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Trustee, unless the Trustee was negligent in ascertaining the pertinent facts.
(b) Whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any 654
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action hereunder, the Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, rely upon a Certificate of the Authority. (c) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Owners pursuant to this Indenture, unless such Owners shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.
(d) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, facsimile transmission, electronic mail, order bond or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit.
(e) The Trustee, prior to the occurrence of an Event of Default and after the curing or waiving of all Events of Default that may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and no duties, covenants or obligations of or against the Trustee shall be implied in this Indenture. In case an Event of Default hereunder or under the Sublease has occurred (which has not been cured or waived), the Trustee may exercise such of the rights and powers vested in it by this Indenture and by the Sublease, and shall use the same degree of care and skill in the exercise of such rights and powers as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.
(f) The Trustee may execute any of the trusts or powers hereunder and perform the duties required of it hereunder either directly or by or through attorneys or agents, and shall be entitled to advice of counsel concerning all matters of trust and its duty hereunder, and the Trustee shall not be responsible for any misconduct or negligence on the part of any attorney or agent appointed with due care by it hereunder. (g) The Trustee may consult with counsel of its selection (who may include its own counsel or counsel for the Authority or Bond Counsel) and the written opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance with the opinion of such counsel. (h) The Trustee shall not be responsible for any recital herein, in the Sublease, or in the Bonds, or for any of the supplements thereto or instruments of further assurance, or for the sufficiency of the security for the Bonds issued hereunder or intended to be secured hereby and makes no representation as to the validity or sufficiency of the Bonds, this Indenture or the Sublease. The Trustee shall not be bound to ascertain or inquire as to the observance or performance of any covenants, conditions or agreements on the part of the Authority hereunder or on the part of the Authority or the City under the Sublease. The Trustee shall not be responsible for the application by the Authority or the City of the proceeds of the Bonds.
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(i) The Trustee may become the Owner or pledgee of Bonds secured hereby with the same rights it would have if not the Trustee; may acquire and dispose of other bonds or evidences of indebtedness of the Authority with the same rights it would have if it were not the Trustee; and may act as a depositary for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of Owners of Bonds, whether or not such committee shall represent the Owners of the majority in aggregate principal amount of the Bonds then Outstanding. (j) The Trustee may rely and shall be protected in acting or refraining from acting, in good faith and without negligence, upon any notice, resolution, opinion, report, direction, request, consent, certificate, order, affidavit, letter, telegram, facsimile transmission, electronic mail or other paper or document believed by it to be genuine and to have been signed or presented by the proper person or persons. Any action taken or omitted to be taken by the Trustee in good faith and without negligence pursuant to this Indenture or the Sublease upon the request or authority or consent of any person who at the time of making such request or giving such authority or consent is the Owner of any Bond, shall be conclusive and binding upon all future Owners of the same Bond and upon Bonds issued in exchange therefor or in place thereof. The Trustee shall not be bound to recognize any person as an Owner of any Bond or to take any action at such person’s request unless the ownership of such Bond by such person shall be reflected on the Registration Books.
(k) The permissive right of the Trustee to do things enumerated in this Indenture or in the Sublease shall not be construed as a duty and it shall not be answerable for other than its negligence or willful misconduct. The immunities and exceptions from liability of the Trustee shall extend to its officers, directors, employees and agents. (l) The Trustee shall not be required to take notice or be deemed to have notice of any Event of Default hereunder or under the Sublease except failure by the Authority or the City to make any of the payments to the Trustee required to be made by the Authority or the City pursuant hereto or thereto or failure by the Authority or the City to file with the Trustee any document required by this Indenture or the Sublease to be so filed subsequent to the issuance of the Bonds, unless the Trustee shall be specifically notified in writing of such default by the Authority or by the Owners of at least 25 percent in aggregate principal amount of the Bonds then Outstanding and all notices or other instruments required by this Indenture to be delivered to the Trustee must, in order to be effective, be delivered at the Trust Office of the Trustee, and in the absence of such notice so delivered the Trustee may conclusively assume there is no Event of Default hereunder except as aforesaid. (m) At any and all reasonable times the Trustee and its duly authorized agents, attorneys, experts, accountants and representatives, shall have the right fully to inspect all books, papers and records of the Authority pertaining to the Bonds, and to make copies of any of such books, papers and records which are not privileged by statute or by law. (n) The Trustee shall not be required to give any bond or surety in respect of the execution of the said trusts and powers or otherwise in respect of the premises hereof. 656
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(o) Notwithstanding anything elsewhere in this Indenture with respect to the execution of any Bonds, the withdrawal of any cash, the release of any property, or any action whatsoever within the purview of this Indenture, the Trustee shall have the right, but shall not be required, to demand any showings, certificates, opinions, appraisals or other information, or corporate action or evidence thereof, as may be deemed desirable for the purpose of establishing the right of the Authority to the execution of any Bonds, the withdrawal of any cash or the taking of any other action by the Trustee.
(p) All moneys received by the Trustee shall, until used or applied or invested as herein provided, be held in trust for the purposes for which they were received but need not be segregated from other funds except to the extent required by law. (q) Whether or not expressly provided therein, every provision of this Indenture and the Sublease relating to the conduct or affecting the liability of the Trustee shall be subject to the provisions of this Section 6.02.
(r) In no event shall the Trustee be liable for special, indirect, punitive or consequential loss or damage (including but not limited to lost profits) even if the Trustee has been advised of the likelihood of such damages and regardless of the form of such action. The Trustee shall not be considered in breach of or in default with respect to any obligations created hereunder, in the event of an enforced delay in the performance of such obligations due to unforeseeable causes beyond its control and without its willful misconduct or negligence, including, but not limited to, acts of God, or of the public enemy, acts of a government, acts of the other party hereto, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, earthquakes, explosion, mob violence, riot, inability to procure or general sabotage or rationing of labor, equipment, facilities, sources of energy, material or supplies in the open market, litigation or arbitration involving a party or others relating to governmental action or inaction pertaining to the Leased Properties, malicious mischief, condemnation, and unusually severe weather or delays of suppliers or subcontractors due to such causes or any similar event and/or occurrences beyond the control of the Trustee; provided, that in the event of any such enforced delay, the Trustee shall notify the Authority in writing within five business days after: (i) the occurrence of the event giving rise to such delay, (ii) the Trustee’s actual knowledge of the impending enforced delay, or (iii) the Trustee’s knowledge of sufficient facts under which a reasonable person would conclude the enforced delay will occur.
(s) The Trustee shall have no responsibility or liability with respect to any information, statements or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds. (t) The Trustee shall not be liable in connection with the performance of its duties under this Indenture, except for its own negligence or willful misconduct. 657
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(u) With respect to moneys have been released or withdrawn in accordance with the provisions hereof, the Trustee shall not be responsible for or accountable to anyone for the subsequent use or application of such moneys.
(v) To the extent that the Authority or the City has caused to be furnished to the Trustee an opinion from Bond Counsel or other counsel of the Authority or the City, with regard to legal questions, the opinion of such counsel shall be full and complete authorization and protection to the Trustee in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.
(w) For all purposes hereunder, the Trustee shall not be deemed to have notice or knowledge of any event (including any default or Event of Default) unless a Responsible Officer of the Trustee has received written notice of such event which references this Indenture, the Bonds, the Authority or the City. The delivery of reports and other documents and information to the Trustee hereunder is for informational purposes only and the Trustee’s receipt of such documents and information shall not constitute constructive notice of any information contained therein or determinable from information contained therein.

SECTION 6.03 Fees, Charges and Expenses of Trustee. The Trustee shall be entitled to payment and reimbursement for reasonable fees for its services rendered hereunder and all advances (with interest on such advances at the maximum rate allowed by law), counsel fees (including expenses) and other expenses reasonably and necessarily made or incurred by the Trustee in connection with such services. Upon the occurrence of an Event of Default hereunder, but only upon an Event of Default, the Trustee shall have a first lien with right of payment prior to payment of any Bond upon the amounts held hereunder for the foregoing fees, charges and expenses incurred by it (including indemnities and legal fees and expenses).

SECTION 6.04 Notice to Bond Owners of Default. If an Event of Default hereunder or under the Sublease occurs with respect to any Bonds of which the Trustee has been given or is deemed to have notice, as provided in Section 6.02(k) hereof, then the Trustee shall, within 30 days of the receipt of such notice, give written notice thereof by first class mail to the Owner of each such Bond, unless such Event of Default shall have been cured before the giving of such notice; provided, however, that unless such Event of Default consists of the failure by the Authority to make any payment when due, the Trustee may elect not to give such notice if and so long as the Trustee in good faith determines that it is in the best interests of the Bond Owners not to give such notice.

SECTION 6.05 Intervention by Trustee. In any judicial proceeding to which the Authority or the City is a party that, in the opinion of the Trustee and its counsel, has a substantial bearing on the interests of Owners of any of the Bonds, the Trustee may intervene on behalf of such Bond Owners, and subject to Section 6.02(c), shall do so if requested in writing by the Owners of at least 25 percent in aggregate principal amount of such Bonds then Outstanding.
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SECTION 6.06 Removal of Trustee. The Trustee may be removed at any time by an instrument or concurrent instruments in writing, filed with the Trustee and signed by the Owners of a majority in aggregate principal amount of the Outstanding Bonds. The Authority may also remove the Trustee at any time upon 30 days’ notice, except during the existence of an Event of Default. The Trustee may be removed at any time for any breach of the Trustee’s duties set forth herein.

SECTION 6.07 Resignation by Trustee. The Trustee and any successor Trustee may at any time give written notice of its intention to resign as Trustee hereunder, such notice to be given to the Authority and the City in the manner prescribed by Section 9.14. Upon receiving such notice of resignation, the Authority shall promptly appoint a successor Trustee. Any resignation or removal of the Trustee and appointment of a successor Trustee shall become effective upon acceptance of appointment by the successor Trustee. Upon such acceptance, the Authority shall cause notice thereof to be given by first class mail, postage prepaid, to the Bond Owners at their respective addresses set forth on the Registration Books.

SECTION 6.08 Appointment of Successor Trustee. In the event of the removal or resignation of the Trustee pursuant to Sections 6.06 or 6.07, respectively, the Authority shall promptly appoint a successor Trustee. In the event the Authority shall for any reason whatsoever fail to appoint a successor Trustee within 60 days following the delivery to the Trustee of the instrument described in Section 6.06 or within 60 days following the receipt of notice by the Authority pursuant to Section 6.07, the Trustee may, at the expense of the Authority, apply to a court of competent jurisdiction for the appointment of a successor Trustee meeting the requirements of Section 6.01. Any such successor Trustee appointed by such court shall become the successor Trustee hereunder notwithstanding any action by the Authority purporting to appoint a successor Trustee following the expiration of such 60-day period.

SECTION 6.09 Merger or Consolidation. Any company into which the Trustee may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Trustee may sell or transfer all or substantially all of its corporate trust business, provided that such company shall meet the requirements set forth in Section 6.01, shall be the successor to the Trustee and vested with all of the title to the trust estate and all of the trusts, powers, discretions, immunities, privileges and all other matters as was its predecessor, without the execution or filing of any paper or further act, anything herein to the contrary notwithstanding.

SECTION 6.10 Concerning any Successor Trustee. Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to its predecessor and also to the Authority an instrument in writing accepting such appointment hereunder and thereupon such successor, without any further act, deed or conveyance, shall become fully vested with all the estates, properties, rights, powers, trusts, duties and obligations of its predecessors; but such predecessor shall, nevertheless, on the Request of the Authority, or of the Trustee’s successor, execute and deliver an instrument transferring to such successor all the estates, properties, rights, powers and trusts of such predecessor hereunder; and every predecessor Trustee shall 659
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deliver all securities and moneys held by it as the Trustee hereunder to its successor. Should any instrument in writing from the Authority be required by any successor Trustee for more fully and certainly vesting in such successor the estate, rights, powers and duties hereby vested or intended to be vested in the predecessor Trustee, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Authority.

SECTION 6.11 Appointment of Co-Trustee. It is the purpose of this Indenture that there shall be no violation of any law of any jurisdiction (including particularly the law of the State) denying or restricting the right of banking corporations or associations to transact business as Trustee in such jurisdiction. It is recognized that in the case of litigation under this Indenture, and in particular in case of the enforcement of the rights of the Trustee on default, or in the case the Trustee deems that by reason of any present or future law of any jurisdiction in may not exercise any of the powers, rights or remedies herein granted to the Trustee or hold title to the properties, in trust, as herein granted, or take any other action that may be desirable or necessary in connection therewith, it may be necessary that the Trustee or the Authority appoint an additional individual or institution as a separate trustee or co-trustee. The following provisions of this Section 6.11 are adopted to these ends.

In the event that the Trustee or the Authority appoints an additional individual or institution as a separate trustee or co-trustee, each and every remedy, power, right, claim, demand, cause of action, immunity, estate, title, interest and lien expressed or intended by this Indenture to be exercised by or vested in or conveyed to the Trustee with respect thereto shall be exercisable by and vest in such separate trustee or co-trustee but only to the extent necessary to enable such separate trustee or co-trustee to exercise such powers, rights and remedies, and every covenant and obligation necessary to the exercise thereof by such separate trustee or co-trustee shall run to and be enforceable by either of them.

Should any instrument in writing from the Authority be required by the separate trustee or co-trustee so appointed by the Trustee for more fully and certainly vesting in and confirming to it such properties, rights, powers, trusts, duties and obligations, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Authority. In case any separate trustee or co-trustee, or a successor to either, shall become incapable of acting, shall resign or shall be removed, all the estates, properties, rights, powers, trusts, duties and obligations of such separate trustee or co-trustee, so far as permitted by law, shall vest in and be exercised by the Trustee until the appointment of a new trustee or successor to such separate trustee or co-trustee.

SECTION 6.12 Indemnification; Limited Liability of Trustee. The Authority further covenants and agrees, to the extent permitted by law, to indemnify and save the Trustee and its officers, directors, agents and employees, harmless against any loss, expense (including reasonable legal fees and expenses) and liabilities arising out of or in the exercise and performance of its powers and duties hereunder and the enforcement of any provision of this Indenture, the Lease, the Sublease, the Assignment Agreement or any other transaction document, including the costs and expenses of defending against any claim of liability, but 660
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excluding any and all losses, expenses and liabilities that are due to the negligent or willful misconduct of the Trustee, its officers, directors or employees. No provision in this Indenture shall require the Trustee to risk or expend its own funds or otherwise incur any financial liability hereunder if it shall have reasonable grounds for believing repayment of such funds or adequate indemnity against such liability or risk is not assured to it. The Trustee shall not be liable for any action taken or omitted to be taken by it in accordance with the direction of the Owners of at least 25 percent in aggregate principal amount of Bonds Outstanding relating to the time, method and place of conducting any proceeding or remedy available to the Trustee under this Indenture or exercising any power conferred upon the Trustee under this Indenture.

The obligations of the Authority under this Section shall survive the resignation or removal of the Trustee under this Indenture.

SECTION 6.13 Trustee Acceptance of Electronic Instructions. The Trustee shall have the right to accept and act upon instructions, including funds transfer instructions (“Instructions”) given pursuant to this Indenture and delivered using Electronic Means (being the following communications methods: email, facsimile transmission, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the Trustee as available for use in connection with its services hereunder); provided, however, that the Authority and the City, as applicable shall provide to the Trustee an incumbency certificate listing officers with the authority to provide such Instructions and containing specimen signatures of such officers, which incumbency certificate shall be amended by the Authority or the City, as applicable, whenever a person is to be added or deleted from the listing. If the Authority or the City elects to give the Trustee Instructions using Electronic Means and the Trustee elects to act upon such Instructions, the Trustee’s reasonable understanding of such Instructions shall be deemed controlling. The Authority understands and agrees that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent by an authorized officer listed on the incumbency certificate provided to the Trustee have been sent by such authorized officer. The Authority and the City shall be responsible for ensuring that only authorized officers transmit such Instructions to the Trustee and that the Authority, the City and all authorized officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the Authority or the City, as applicable.

The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction. The Authority and the City agree: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there may be more secure methods of transmitting Instructions than the method(s) selected by the Authority and/or the 661
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City, as applicable; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized use of the security procedures.

In the event of an ambiguity or a contradiction in such Instructions as determined by the Trustee in its reasonable discretion, the Trustee shall notify the Authority and request clarification from the Authority, and the Trustee shall not be required to act on such ambiguous or contradictory Instructions pending the Authority’s clarification.

The Trustee shall not be liable under this Section 6.13 except for its negligence or willful misconduct.

SECTION 6.14 Direction to Execute Assignment Agreement. The Trustee is hereby authorized and directed to execute the Assignment Agreement. In executing and performing under the Assignment Agreement, the Trustee shall be entitled to all rights, protections, immunities and indemnities granted to it pursuant to this Indenture.

ARTICLE VII

MODIFICATION AND AMENDMENT OF THE INDENTURE
SECTION 7.01 Amendment of Indenture. This Indenture and the rights and obligations of the Authority and of the Owners of the Bonds may be modified or amended at any time by a Supplemental Indenture which shall become binding upon adoption, without consent of any Bond Owner, to the extent permitted by law but only for any one or more of the following purposes:
(a) to add to the covenants and agreements of the Authority contained in this Indenture, other covenants and agreements thereafter to be observed, or to limit or surrender any rights or powers herein reserved to or conferred upon the Authority so long as such limitation or surrender of such rights or powers shall not materially adversely affect the Owners of the Bonds;
(b) to cure any ambiguity, to supply any omission or to cure, correct or supplement any defect or inconsistent provisions contained in the Indenture or in any Supplemental Indenture;
(c) to grant to the Trustee for the benefit of the Owners additional rights, remedies, powers or authority;
(d) to subject to the Indenture additional collateral or to add other agreements of the Authority;
(e) to provide for the issuance of Additional Bonds pursuant to Section 3.06; 662
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(f) to modify the Indenture or the Bonds to permit qualification under the Trust Indenture Act of 1939, as amended, or any similar statute at the time in effect, or to permit the qualification of the Bonds for sale under the securities laws of any state of the United States of America;
(g) to maintain the exclusion of interest on the Bonds from gross income for federal income tax purposes;
(h) to evidence the succession of a new Trustee; or
(i) for any other purpose that does not materially adversely affect the rights or interests of the Owners.

Except as set forth in the preceding paragraph of this Section 7.01, this Indenture and the rights and obligations of the Authority and of the Owners of the Bonds may only be modified or amended at any time by a Supplemental Indenture which shall become binding when the written consent of the Owners of a majority in aggregate principal amount of the Bonds then Outstanding are filed with the Trustee. No such modification or amendment shall (i) extend the maturity of or reduce the interest rate on any Bond or otherwise alter or impair the obligation of the Authority to pay the principal, interest or redemption premiums (if any) at the time and place and at the rate and in the currency provided therein of any Bond without the express written consent of the Owner of such Bond, (ii) reduce the percentage of Bonds required for the written consent to any such amendment or modification, or (iii) modify any of the rights or obligations of the Trustee without its written consent thereto.

In executing, or accepting the additional trusts created by, any Supplemental Indenture permitted by this Article or the modification thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and shall be fully protected in relying upon, an opinion of Bond Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and complies with all terms under this Indenture.

SECTION 7.02 Effect of Supplemental Indenture. From and after the time any Supplemental Indenture becomes effective pursuant to this Article VII, this Indenture shall be deemed to be modified and amended in accordance therewith, the respective rights, duties and obligations of the parties hereto or thereto and all Owners of Outstanding Bonds, as the case may be, shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modification and amendment, and all the terms and conditions of any Supplemental Indenture shall be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

Prior to entering into any Supplemental Indenture pursuant to this Section 7.02, the Trustee may require the Authority to deliver to the Trustee an opinion of Bond Counsel to the effect that such Supplemental Indenture has been adopted in accordance with the requirements of this Indenture.
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SECTION 7.03 Endorsement or Replacement of Bonds After Amendment. After the effective date of any action taken as hereinabove provided, the Authority may determine that the Bonds shall bear a notation, by endorsement in form approved by the Authority, as to such action, and in that case upon demand of the Owner of any Bond Outstanding at such effective date and presentation of such Owner’s Bond for that purpose at the Trust Office of the Trustee, a suitable notation as to such action shall be made on such Bond. If the Authority shall so determine, new Bonds so modified as, in the opinion of the Authority, shall be necessary to conform to such Bond Owners’ action, then new Bond certificates shall be prepared and executed, and in that case upon demand of the Owner of any Bond Outstanding at such effective date such new Bonds shall be exchanged at the Trust Office of the Trustee, without cost to each Bond Owner, for Bonds then Outstanding, upon surrender of such Outstanding Bonds.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES OF BOND OWNERS
SECTION 8.01 Events of Default. The following events shall be Events of Default hereunder:
(a) Default in the due and punctual payment of the principal of or premium on any Bond when and as the same shall become due and payable, whether at maturity as therein expressed, or by proceedings for redemption.
(b) Default in the due and punctual payment of any installment of interest on any Bond when and as such interest installment shall become due and payable. (c) Failure by the Authority to observe and perform any of the covenants, agreements or conditions on its part in this Indenture or in the Bonds contained, other than as referred to in the preceding clauses (a) and (b), for a period of 30 days after written notice, specifying such failure and requesting that it be remedied has been given to the Authority by the Trustee, or to the Authority and the Trustee by the Owners of not less than 25 percent in aggregate principal amount of the Outstanding Bonds; provided, however, that if in the reasonable opinion of the Authority, the failure stated in such notice can be corrected, but not within such 30-day period, the Trustee and such Owners shall not unreasonably withhold their consent to an extension of such time if corrective action is instituted by the Authority within such 30-day period and diligently pursued until such failure is corrected. (d) The filing by the Authority of a petition or answer seeking reorganization or arrangement under the Federal bankruptcy laws or any other applicable law of the United States of America, or if a court of competent jurisdiction shall approve a petition, filed with or without the consent of the Authority, seeking reorganization under the Federal bankruptcy laws or any other applicable law of the United States of America, or if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the Authority or of the whole or any substantial part of the Leased Properties.
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SECTION 8.02 Remedies; No Acceleration. Upon the occurrence of an Event of Default, the Trustee shall have the right:
(a) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the Authority or any member, officer or employee thereof, in order to compel the Authority or any such member, officer or employee to perform and carry out its or his or her duties under law and the agreements and covenants required to be performed by it or him or her contained herein;
(b) by suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Trustee; or
(c) by suit in equity upon the happening of an Event of Default to require the Authority and its members, officers and employees to account as the trustee of an express trust.

If an Event of Default shall have occurred and be continuing and if requested so to do by the Owners of at least 25 percent in aggregate principal amount of Outstanding Bonds and indemnified as provided in Section 6.02(c), the Trustee shall be obligated to exercise such one or more of the rights and powers conferred by this Article VIII, as the Trustee, being advised by counsel, shall deem most expedient in the interests of the Bond Owners.

No remedy by the terms of this Indenture conferred upon or reserved to the Trustee (or to the Bond Owners) is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy given to the Trustee or the Bond Owners hereunder or now or hereafter existing at law or in equity.

No delay or omission to exercise any right or power accruing upon any Event of Default shall impair any such right or power or shall be construed to be a waiver or any such Event of Default or acquiescence therein; such right or power may be exercised from time to time as often as may be deemed expedient.

The Trustee shall have no right to declare the principal of or interest on the Bonds to be due and payable immediately.

SECTION 8.03 Application of Revenues and Other Funds after Default. Following the declaration of an Event of Default, all amounts then held or received by the Trustee pursuant to any right given or action taken by the Trustee under the provisions of this Indenture shall be applied by the Trustee, in the following order upon presentation of the several Bonds, and the stamping thereon of the amount of the payment if only partially paid, or upon the surrender thereof if fully paid:

First, to the payment of the fees, costs and expenses of the Trustee, including reasonable compensation to its agents, attorneys and counsel; 665
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Second, to the payment of the whole amount of interest on and principal of the Bonds then due and unpaid; provided, however, that in the event such amounts shall be insufficient to pay in full the full amount of such interest and principal, then such amounts shall be applied to the payment of such principal and interest without preference or priority of principal over interest, or interest over principal, or of any installment of interest over any other installment of interest, ratably to the aggregate of such principal and interest; and Third, to replenish the Reserve Account to the Reserve Requirement.

SECTION 8.04 Power of Trustee to Control Proceedings. In the event that the Trustee, upon the happening of an Event of Default, shall have taken any action, by judicial proceedings or otherwise, pursuant to its duties hereunder, whether upon its own discretion or upon the request of the Owners of at least a majority in aggregate principal amount of the Bonds then Outstanding, it shall have full power, in the exercise of its discretion for the best interests of the Owners of the Bonds, with respect to the continuance, discontinuance, withdrawal, compromise, settlement or other disposal of such action; provided, however, that the Trustee shall not, unless there no longer continues an Event of Default, discontinue, withdraw, compromise or settle, or otherwise dispose of any litigation pending at law or in equity, if at the time there has been filed with it a written request signed by the Owners of a majority in aggregate principal amount of the Outstanding Bonds hereunder opposing such discontinuance, withdrawal, compromise, settlement or other disposal of such litigation and if the Trustee is indemnified as provided in Section 6.02(c). Any suit, action or proceeding which any Owner of Bonds shall have the right to bring to enforce any right or remedy hereunder may be brought by the Trustee for the equal benefit and protection of all Owners of Bonds similarly situated and the Trustee is hereby appointed (and the successive respective Owners of the Bonds issued hereunder by taking and holding the same, shall be conclusively deemed so to have appointed it) the true and lawful attorney-in-fact of the respective Owners of the Bonds for the purpose of bringing any such suit, action or proceeding and to do and perform any and all acts and things for and on behalf of the respective Owners of the Bonds as a class or classes, as may be necessary or advisable in the opinion of the Trustee as such attorney-in-fact.

SECTION 8.05 Appointment of Receivers. Upon the occurrence of an Event of Default hereunder, and upon the filing of a suit or other commencement of judicial proceedings to enforce the rights of the Trustee and of the Bond Owners under this Indenture, the Trustee shall be entitled, as a matter of right, to the appointment of a receiver or receivers of the Revenues and other amounts pledged hereunder, pending such proceedings, with such powers as the court making such appointment shall confer.

SECTION 8.06 Non-Waiver. A waiver of any default or breach of duty or contract by the Trustee or any Bond Owners shall not affect any subsequent default or breach of duty or contract, or impair any rights or remedies on any such subsequent default or breach. No delay or omission of the Trustee or any Owner of any of the Bonds to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein; and every power and remedy conferred 666
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upon the Trustee or Bond Owners by the Bond Law or by this Article VIII may be enforced and exercised from time to time and as often as shall be deemed expedient by the Trustee or the Bond Owners, as the case may be.

SECTION 8.07 Rights of Bond Owners. No Owner of any Bond issued hereunder shall have the right to institute any suit, action or proceeding at law or in equity, for any remedy under or upon this Indenture, unless: (a) such Owner shall have previously given to the Trustee written notice of the occurrence of an Event of Default; (b) the Owners of a majority in aggregate principal amount of all the Bonds then Outstanding shall have made written request upon the Trustee to exercise the powers hereinbefore granted or to institute such action, suit or proceeding in its own name; (c) said Owners shall have tendered to the Trustee indemnity reasonably acceptable to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request; and (d) the Trustee shall have refused or omitted to comply with such request for a period of 60 days after such written request shall have been received by, and said tender of indemnity shall have been made to, the Trustee.

Such notification, request, tender of indemnity and refusal or omission are hereby declared, in every case, to be conditions precedent to the exercise by any Owner of Bonds of any remedy hereunder; it being understood and intended that no one or more Owners of Bonds shall have any right in any manner whatever by action of such Owner or Owners to enforce any right under this Indenture, except in the manner provided herein, and that all proceedings at law or in equity to enforce any provision of this Indenture shall be instituted, had and maintained in the manner provided herein and for the equal benefit of all Owners of the Outstanding Bonds.

The right of any Owner of any Bond to receive payment of the principal of and interest and premium (if any) on such Bond as provided herein or to institute suit for the enforcement of any such payment, shall not be impaired or affected without the written consent of such Owner, notwithstanding the foregoing provisions of this Section or any other provision of this Indenture.

SECTION 8.08 Termination of Proceedings. In case the Trustee shall have proceeded to enforce any right under this Indenture by the appointment of a receiver or otherwise, and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely, then and in every such case, the Authority, the Trustee and the Bond Owners shall be restored to their former positions and rights hereunder, respectively, with regard to the Leased Properties subject to this Indenture, and all rights, remedies and powers of the Trustee shall continue as if no such proceedings had been taken. 667
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ARTICLE IX

MISCELLANEOUS
SECTION 9.01 Limited Liability of Authority. Notwithstanding anything contained in this Indenture, the Authority shall not be required to advance any moneys derived from any source of income other than the Revenues for the payment of the principal of or interest on the Bonds, or any premiums upon the redemption thereof, or for the performance of any covenants herein contained (except to the extent any such covenants are expressly payable hereunder from the Revenues or otherwise from amounts payable under the Sublease). The Authority may, however advance funds for any such purpose, provided that such funds are derived from a source legally available for such purpose and may be used by the Authority for such purpose without incurring indebtedness.

The Bonds shall be revenue bonds, payable exclusively from the Revenues and other funds as provided in this Indenture. The general fund of the Authority is not liable, and the credit of the Authority is not pledged, for the payment of the interest and premiums (if any) on or principal of the Bonds. The Owners of the Bonds shall never have the right to compel the forfeiture of any property of the Authority except the Revenues and other funds pledged to the payment of the Bonds as provided in this Indenture. The principal of and interest on the Bonds, and any premiums upon the redemption of any thereof, shall not be a legal or equitable pledge, charge, lien or encumbrance upon any property of the Authority or upon any of its income, receipts or revenues except the Revenues and other funds pledged to the payment thereof as provided in this Indenture.

SECTION 9.02 Benefits of Indenture Limited. Nothing in this Indenture, expressed or implied, is intended to give to any person other than the Authority, the Trustee, the City and the Owners of the Bonds, any right, remedy or claim under or by reason of this Indenture. Any covenants, stipulations, promises or agreements in this Indenture contained by and on behalf of the Authority shall be for the sole and exclusive benefit of the Trustee, the City and the Owners of the Bonds.

SECTION 9.03 Discharge of Indenture. If the Authority shall pay and discharge any or all of the Outstanding Bonds in any one or more of the following ways:
(a) by well and truly paying or causing to be paid the principal of and interest and premiums (if any) on such Bonds, as and when the same become due and payable; (b) by irrevocably depositing with the Trustee, in trust, at or before maturity, money which, together with the available amounts then on deposit in the funds and accounts established with the Trustee pursuant to this Indenture, is fully sufficient to pay such Bonds, including all principal, interest and redemption premiums (if any); or (c) by irrevocably depositing with the Trustee or any other fiduciary, in trust, Federal Securities in such amount as an Independent Certified Public Accountant (defined below) shall determine in a written report filed with the Trustee (upon which report the Trustee 668
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may conclusively rely) will, together with the interest to accrue thereon and available moneys then on deposit in the funds and accounts established with the Trustee pursuant to this Indenture, be fully sufficient to pay and discharge the indebtedness on such Bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates; and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been sent pursuant to Section 2.03(d) or provision satisfactory to the Trustee shall have been made for the sending of such notice, then, at the Request of the Authority, and notwithstanding that any of such Bonds shall not have been surrendered for payment, the pledge of the Revenues and other funds provided for in this Indenture with respect to such Bonds, and all other pecuniary obligations of the Authority under this Indenture with respect to all such Bonds, shall cease and terminate, except only the obligation of the Authority to pay or cause to be paid to the Owners of such Bonds not so surrendered and paid all sums due thereon from amounts set aside for such purpose as aforesaid, and all amounts due the Trustee. Any funds held by the Trustee following any payment or discharge of the Outstanding Bonds pursuant to this Section 9.03, which are not required for said purposes, shall after payment of amounts due the Trustee hereunder be paid over to the Authority. Prior to the discharge of any or all of the Outstanding Bonds, the Trustee shall receive an opinion of Bond Counsel to the effect that the Bonds to be discharged are no longer Outstanding and all conditions precedent with respect to such discharge have been satisfied.

SECTION 9.04 Trustee’s Additional Acknowledgment of Certain Provisions of the Sublease. Without limiting any other provisions herein, the Trustee hereby acknowledges and agrees to comply with Section 9 of the Sublease.

SECTION 9.05 Successor Is Deemed Included in All References to Predecessor.

Whenever in this Indenture or any Supplemental Indenture the Authority is named or referred to, such reference shall be deemed to include the successor to the powers, duties and functions, with respect to the management, administration and control of the affairs of the Authority, that are presently vested in the Authority, and all the covenants, agreements and provisions contained in this Indenture by or on behalf of the Authority shall bind and inure to the benefit of its successors whether so expressed or not.

SECTION 9.06 Content of Certificates and Opinions. Any certificate made or given by an officer of the Authority may be based, insofar as it relates to legal matters, upon a certificate or opinion of or representations by counsel, unless such officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate may be based, as aforesaid, are erroneous, or in the exercise of reasonable care should have known that the same were erroneous. Any such certificate or opinion or representation made or given by counsel may be based, insofar as it relates to factual matters, on information with respect to which is in the possession of the Authority, or upon the certificate or opinion of or representations by an officer or officers of the Authority, unless such counsel knows that the certificate or opinion or representations with respect to the matters upon which his certificate, opinion or representation may be based, as aforesaid, are erroneous, or in the exercise of reasonable care should have known that the same were erroneous. 669
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SECTION 9.07 Execution of Documents by Bond Owners. Any request, consent or other instrument required by this Indenture to be signed and executed by Bond Owners may be in any number of concurrent writings of substantially similar tenor and may be signed or executed by such Bond Owners in person or by their agent or agents duly appointed in writing.

Proof of the execution of any such request, consent or other instrument or of a writing appointing any such agent, shall be sufficient for any purpose of this Indenture and shall be conclusive in favor of the Trustee and of the Authority if made in the manner provided in this Section 9.07.

The fact and date of the execution by any person of any such request, consent or other instrument or writing may be proved by the affidavit of a witness of such execution or by the certificate of any notary public or other officer of any jurisdiction, authorized by the laws thereof to take acknowledgments of deeds, certifying that the person signing such request, consent or other instrument or writing acknowledged to him the execution thereof.

The ownership of Bonds shall be proved by the Registration Books. Any request, consent or vote of the Owner of any Bond shall bind every future Owner of the same Bond and the Owner of any Bond issued in exchange therefor or in lieu thereof, in respect of anything done or suffered to be done by the Trustee or the Authority in pursuance of such request, consent or vote. In lieu of obtaining any demand, request, direction, consent or waiver in writing, the Trustee may call and hold a meeting of the Bond Owners upon such notice and in accordance with such rules and obligations as the Trustee considers fair and reasonable for the purpose of obtaining any such action.

SECTION 9.08 Disqualified Bonds. In determining whether the Owners of the requisite aggregate principal amount of Bonds have concurred in any demand, request, direction, consent or waiver under this Indenture, Bonds which are owned or held by or for the account of the City or the Authority (but excluding Bonds held in any employees’ retirement fund) shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, provided, however, that for the purpose of determining whether the Trustee shall be protected in relying on any such demand, request, direction, consent or waiver, only Bonds which the Trustee knows to be so owned or held shall be disregarded. Upon the request of the Trustee, the Authority and the City shall specify in a certificate to the Trustee those Bonds that are disqualified pursuant to this Section and the Trustee may conclusively rely on such certificate.

SECTION 9.09 Waiver of Personal Liability. No officer, agent or employee of the Authority shall be individually or personally liable for the payment of the interest on or principal of the Bonds; but nothing herein contained shall relieve any such officer, agent or employee from the performance of any official duty provided by law.

SECTION 9.10 Partial Invalidity. If any one or more of the covenants or agreements, or portions thereof, provided in this Indenture on the part of the Authority (or of the Trustee) to be performed should be contrary to law, then such covenant or covenants, such agreement or agreements, or such portions thereof, shall be null and void and shall be deemed separable 670
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from the remaining covenants and agreements or portions thereof and shall in no way affect the validity of this Indenture or of the Bonds; but the Bond Owners shall retain all rights and benefits accorded to them under the Bond Law or any other applicable provisions of law.

SECTION 9.11 Destruction of Canceled Bonds. Whenever in this Indenture provision is made for the surrender of any Bonds which have been paid or canceled pursuant to the provisions of this Indenture, the Trustee shall cancel and destroy such Bonds and upon Request of the Authority furnish to the Authority a certificate of such destruction.

SECTION 9.12 Funds and Accounts. Any fund or account required by this Indenture to be established and maintained by the Authority or the Trustee may be established and maintained in the accounting records of the Authority or the Trustee, as the case may be, either as a fund or an account, and may, for the purpose of such records, any audits thereof and any reports or statements with respect thereto, be treated either as a fund or as an account. All such records with respect to all such funds and accounts held by the Authority shall at all times be maintained in accordance with generally accepted accounting principles and all such records with respect to all such funds and accounts held by the Trustee shall be at all times maintained in accordance with corporate trust industry practices; in each case with due regard for the protection of the security of the Bonds and the rights of every Owner thereof.

SECTION 9.13 Payment on Business Days. Whenever in this Indenture any amount is required to be paid on a day that is not a Business Day, such payment shall be required to be made, without accruing additional interest thereby, on the Business Day immediately following such day.

SECTION 9.14 Notices. Any notice, request, complaint, demand or other communication under this Indenture shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, by overnight mail, as a .pdf attachment to electronic mail, or by telecopy or other form of telecommunication, confirmed by telephone at its number set forth below. Notice shall be effective either (i) upon transmission by telecopy or other form of telecommunication, (ii) 48 hours after deposit in the United States mail, postage prepaid, (iii) in the case of overnight mail, upon delivery to the addressed destination, or (iv) in the case of personal delivery to any person, upon actual receipt. The Authority, the City or the Trustee may, by written notice to the other party, from time to time modify the address, email address, or number to which communications are to be given hereunder.

If to the Authority: South Tahoe Joint Powers Financing Authority 1901 Lisa Maloff Way, Suite 210
South Lake Tahoe, CA 96150
Attention: Executive Director
Phone: (530) 542-6043
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If to the City: City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 210
South Lake Tahoe, CA 96150
Attention: City Manager
Phone: (530) 542-6043
If to the Trustee: The Bank of New York Mellon Trust Company, N.A. 333 South Hope Street, Suite 2525
Los Angeles, CA 90071
Phone: (213) 630-6417
Attention: Alex Dominguez, Client Service Manager
Email: [email protected]
Any party listed above may designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent.

SECTION 9.15 Unclaimed Moneys. Anything in this Indenture to the contrary notwithstanding, any moneys held by the Trustee in trust for the payment and discharge of any of the Bonds that remain unclaimed for two years after the date when such Bonds have become due and payable, either at their stated maturity dates or by call for earlier redemption, if such moneys were held by the Trustee at such date, or for two years after the date of deposit of such moneys if deposited with the Trustee after said date when such Bonds become due and payable, shall be repaid by the Trustee to the Authority, as its absolute property and free from trust, and the Trustee shall thereupon be released and discharged with respect thereto and the Bond Owners shall look only to the Authority for the payment of such Bonds; provided, however, that before being required to make any such payment to the Authority, the Trustee shall, at the expense of the Authority, cause to be mailed to the Owners of all such Bonds, at their respective addresses appearing on the Registration Books, a notice that said moneys remain unclaimed and that, after a date named in said notice, which date shall not be less than 30 days after the date of mailing of such notice, the balance of such moneys then unclaimed will be returned to the Authority.

SECTION 9.16 Governing Law. This Indenture shall be construed and governed in accordance with the laws of the State of California.

SECTION 9.17 Execution in Counterparts. This Indenture may be executed in any number of counterparts. Each of such counterparts shall for all purposes be deemed to be an original and all such counterparts shall together constitute but one and the same instrument. 672
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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be signed by their respective authorized representatives, all as of the day and year first above written.

SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY
By:

Joe Irvin, Executive Director
ATTEST:

Secretary
The Bank of New York Mellon Trust Company, N.A.,
as Trustee
By:

Print Name:

Title:
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EXHIBIT A
[FORM OF BOND]
[Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Authority or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.]
No. R-___ $_____________

SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY

LEASE REVENUE BOND
2022 SERIES A

INTEREST RATE MATURITY DATE ORIGINAL ISSUE DATE CUSIP
% October 1, 20__ __ 2022 84049M___
REGISTERED OWNER: [CEDE & CO.]
PRINCIPAL AMOUNT: ______________________________ DOLLARS The SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY, a joint powers authority organized and existing under the laws of the State of California (the “Authority”), for value received, hereby promises to pay (but only out of the Revenues, as defined in the Indenture hereinafter referred to, and certain other moneys) to the Registered Owner identified above or registered assigns (the “Registered Owner”), on the Maturity Date identified above or any earlier redemption date, the Principal Amount identified above in lawful money of the United States of America; and to pay interest thereon at the Interest Rate identified above in like money from the Interest Payment Date (as hereinafter defined) next preceding the date of authentication of this Bond (unless this Bond is authenticated on or before an Interest Payment Date and after the fifteenth calendar day of the month preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or unless this Bond is authenticated on or prior to the fifteenth calendar day of the month preceding the first Interest Payment Date, in which event it shall bear interest from the Original Issue Date identified above; provided, however, that if, at the time of authentication of this Bond, interest is in default on this Bond, this Bond shall bear interest from the Interest Payment Date to which interest hereon has previously been paid or made available for payment), payable semiannually on April 1 and October 1 in each year, commencing April 1, 2023 (each an “Interest Payment Date”) until payment of such Principal Amount in full.
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The Principal Amount of this Bond is payable by check upon presentation hereof upon maturity or earlier redemption at the principal corporate trust office of The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), in [Los Angeles, California], or at such other office as the Trustee may designate (the “Trust Office”). Interest hereon is payable by check or draft of the Trustee mailed by first class mail on each Interest Payment Date to the Registered Owner hereof at the address of the Registered Owner as it appears on the registration books of the Trustee as of the fifteenth calendar day of the month preceding such Interest Payment Date (except that in the case of a Registered Owner of at least $1,000,000 in aggregate principal amount of the Bonds, such payment may, at such Registered Owner’s option, be made by wire transfer of immediately available funds in accordance with written instructions provided by such Registered Owner prior to the 15th calendar day of the month immediately preceding such Interest Payment Date).

This Bond is one of a duly authorized issue of bonds of the Authority designated the “South Tahoe Joint Powers Financing Authority, Lease Revenue Bonds, Series 2022A” (the “Bonds”), limited in principal amount to ___ Dollars ($[principal amount]) secured by an Indenture, dated as of October 1, 2022 (the “Indenture”), by and between the Authority and the Trustee. Reference is hereby made to the Indenture and all indentures supplemental thereto for a description of the rights thereunder of the owners of the Bonds, of the nature and extent of the Revenues (as that term is defined in the Indenture), of the rights, duties and immunities of the Trustee and of the rights and obligations of the Authority thereunder; and all of the terms of the Indenture are hereby incorporated herein and constitute a contract between the Authority and the Registered Owner hereof, and to all of the provisions of which Indenture the Registered Owner hereof, by acceptance hereof, assents and agrees.

The Bonds are authorized to be issued pursuant to the provisions of the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4, Chapter 5, Division 7, Title 1 of the Government Code of the State of California (the “Act”). The Bonds are special obligations of the Authority and, as and to the extent set forth in the Indenture, are payable solely from and secured by a first lien on and pledge of the Revenues and certain other moneys and securities held by the Trustee as provided in the Indenture. All of the Bonds are equally secured by a pledge of, and charge and lien upon, all of the Revenues and such other moneys and securities, and the Revenues and such other moneys and securities constitute a trust fund for the security and payment of the principal of and interest on the Bonds. The full faith and credit of the Authority are not pledged for the payment of the principal of or interest on the Bonds. The Bonds are not secured by a legal or equitable pledge of, or charge, lien or encumbrance upon, any of the property of the Authority or any of its income or receipts, except the Revenues and such other moneys and securities as provided in the Indenture.

The Bonds have been issued for the purpose of assisting the City with the cost of construction of a new recreation center. In connection with the issuance of the Bonds, the Authority has entered into the Sublease, dated as of October 1, 2022 (the “Sublease”) with the City, under which the City is obligated to pay amounts which are anticipated to be sufficient to enable the Authority to pay the principal of and interest on the Bonds. 675
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The Bonds are subject to redemption prior to their respective maturity dates, upon notice as hereinafter provided, as a whole or in part, on any date, from prepaid Base Rental Payments made by the City from funds received by the City due to a taking of the Leased Properties (as defined in the Sublease) or any portion thereof under the power of eminent domain or from net proceeds of insurance received for material damage or destruction, defects in title to the Leased Properties, under the circumstances and upon the conditions and terms prescribed in the Indenture and in the Sublease, at a redemption price equal to the sum of the principal amount of the Bonds to be redeemed plus accrued interest thereon to the date fixed for redemption, without premium.

The Bonds maturing on or after October 1, [2032], shall be subject to redemption prior to their respective maturity dates, as a whole or in part, from prepayments of Base Rental made at the option of the City under the Sublease on any date with respect to which such prepayment have been made (which shall be on or after October 1, [2031]). The Bonds called for such optional redemption shall be redeemed at a redemption price equal to 100 percent of the principal amount of the Bonds to be redeemed, without premium, plus accrued interest thereon to the date of redemption.

The Bonds maturing on October 1, 20__ and October 1, 20__ shall be subject to redemption in part by lot from sinking account payments made by the Authority, at a redemption price equal to the principal amount thereof to be redeemed with accrued interest thereon to the redemption date, without premium, in the aggregate respective principal amounts and on the respective dates as set forth in the following tables; provided, however, if some but not all of the Term Bonds of a maturity have been redeemed pursuant to the extraordinary redemption or optional redemption described above, each future sinking account payment with respect to such Term Bonds will be reduced on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, so that the total amount of sinking account payments with respect to such Term Bonds to be made subsequent to an extraordinary redemption or an optional redemption shall be reduced by an amount equal to the principal amount of the Term Bonds so redeemed, all as shall be designated pursuant to written notice filed by the Authority with the Trustee:

Bonds Maturing on October 1, 20__
Redemption Date
(October 1)
Principal Amount
to be Redeemed
______________
* maturity
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Bonds Maturing on October 1, 20__
Redemption Date
(October 1)
Principal Amount
to be Redeemed
______________
* maturity
The Trustee on behalf and at the expense of the Authority shall send by first class mail (or if the registered owner of such Bond is a depository, by such method as acceptable to such depository), notice of any redemption to the respective owners of any Bonds designated for redemption, at their respective addresses appearing on the registration books maintained by the Trustee, to the Securities Depositories and to one or more Information Services (as such terms are defined in the Indenture), at least 30 but not more than 60 days prior to the redemption; provided, however, that neither failure to receive any such notice so sent nor any defect therein shall affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. Such notice shall state the date of the notice, the redemption date, the redemption place and the redemption price and shall designate the CUSIP numbers, the serial numbers of each maturity or maturities (except that if the event of redemption is of all of the Bonds of such maturity or maturities in whole, the Trustee shall designate such maturities or the maturity in whole without referencing each individual number) of the Bonds to be redeemed, and shall require that such Bonds be then surrendered at the Trust Office of the Trustee for redemption at the redemption price, giving notice also that further interest on such Bonds will not accrue after the redemption date.

The Bonds shall be issued in denominations of $5,000 or any integral multiple thereof.

Subject to the limitations and upon payment of the charges, if any, provided in the Indenture, this Bond may be exchanged at the Trust Office of the Trustee for a like aggregate principal amount, interest rate and maturity of fully registered Bonds of other authorized denominations.

This Bond is transferable by the Registered Owner hereof, in person or by such Registered Owner’s attorney duly authorized in writing, at the Trust Office of the Trustee, but only in the manner, subject to the limitations and upon payment of the charges provided in the Indenture, and upon surrender and cancellation of this Bond. Upon such transfer a new fully registered Bond or Bonds, of authorized denomination or denominations, for the same aggregate principal amount and of the same maturity will be issued to the transferee in exchange herefor. The Authority and the Trustee may treat the Registered Owner hereof as the absolute owner hereof for all purposes, and the Authority and the Trustee shall not be affected by any notice to the contrary. The Trustee shall not be required to register the transfer or exchange of any Bond during the period in which the Trustee is selecting Bonds for redemption or any Bond selected for redemption.
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The Indenture and the rights and obligations of the Authority and of the owners of the Bonds and of the Trustee may be modified or amended from time to time and at any time in the manner, to the extent, and upon the terms provided in the Indenture; provided that no such modification or amendment shall (a) extend the maturity of or reduce the interest rate on any Bond or otherwise alter or impair the obligation of the Authority to pay the principal, interest or premiums at the time and place and at the rate and in the currency provided therein of any Bond without the express written consent of the owner of such Bond, (b) reduce the percentage of Bonds required for the written consent to any such amendment or modification, or (c) without its written consent thereto, modify any of the rights or obligations of the Trustee, all as more fully set forth in the Indenture.

It is hereby certified that all things, conditions and acts required to exist, to have happened and to have been performed precedent to and in the issuance of this Bond do exist, have happened and have been performed in due time, form and manner as required by the Constitution and statutes of the State of California and by the Act and the amount of this Bond, together with all other indebtedness of the Authority, does not exceed any limit prescribed by the Constitution or statutes of the State of California or by the Act.

This Bond shall not be entitled to any benefit under the Indenture, or become valid or obligatory for any purpose, until the certificate of authentication hereon shall have been signed by the Trustee.
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IN WITNESS WHEREOF, the Authority has caused this Bond to be executed in its name and on its behalf, and attested, by the manual or facsimile signatures of its Chair and Secretary as of the Original Issue Date identified above.

SOUTH TAHOE JOINT POWERS FINANCING

AUTHORITY
By:

Chair
Attest:

Secretary
================================================================== [TRUSTEE’S CERTIFICATE OF AUTHENTICATION]
This is one of the Bonds described in the within-mentioned Indenture and registered on the Bond Registration Books.

Date: The Bank of New York Mellon Trust Company, N.A.,
as Trustee
By:

Authorized Signatory
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[FORM OF ASSIGNMENT]
For value received the undersigned do(es) hereby sell, assign and transfer unto, whose tax identification number is _________________________, the within-mentioned registered 2022A Bond and hereby irrevocably constitute(s) and appoint(s) attorney to transfer the same on the books of the Trustee with full power of substitution in the premises.

Dated:

Signature guaranteed:

NOTE: The signature(s) on this Assignment
must correspond with the name(s) as written
on the face of the within 2022A Bond in
every particular without alteration or
enlargement or any change whatsoever.

NOTICE: Signature must be guaranteed by a
member of an institution which is a participant
in the Securities Transfer Agent Medallion
Program (STAMP) or such other similar
program approved by the Trustee.
680
B-1
12463-0017\2678945v6.doc

EXHIBIT B
[FORM OF REQUISITION (COSTS OF ISSUANCE)]
REQUISITION NO. __
(Costs of Issuance Fund)
with reference to
$[principal amount]
South Tahoe Joint Powers Financing Authority
Lease Revenue Bonds
Series 2022A
[Date]
I. The South Tahoe Joint Powers Financing Authority (the “Authority”) hereby requests The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) pursuant to that certain Indenture, dated as of October 1, 2022 (the “Indenture”), by and between the Authority and the Trustee, under the terms of which the above-captioned bonds, to pay from the moneys in the Costs of Issuance Fund established pursuant to the Indenture, the amounts shown on Schedule I attached hereto to the parties indicated in Schedule I.

II. The payees, the purposes for which the costs have been incurred, and the amount of the disbursements requested are itemized on Schedule I hereto.

III. Each obligation mentioned in Schedule I hereto has been properly incurred and is a proper charge against the Costs of Issuance Fund. None of the items for which payment is requested has been reimbursed previously from the Costs of Issuance Fund.

All capitalized terms not defined herein have the meanings ascribed to them in the Indenture.

SOUTH TAHOE JOINT POWERS FINANCING AUTHORITY
By:
[Name]
[Title]
681
C-1
12463-0017\2678945v6.doc

EXHIBIT C
[FORM OF REQUISITION (PROJECT FUND)]
REQUISITION NO. __
(Project Fund)
with reference to
$[principal amount]
South Tahoe Joint Powers Financing Authority
Lease Revenue Bonds
Series 2022A
[Date]
I. Pursuant to Section 3.06 of the Indenture, dated as of October 1, 2022 (the “Indenture”), by and between the South Tahoe Joint Powers Financing Authority (the “Authority”) and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), under the terms of which the above-captioned bonds were issued, the undersigned, City of South Lake Tahoe, hereby requests the Trustee, to pay from the moneys in the Project Fund the amounts shown on Schedule I attached hereto to the parties indicated in Schedule I.

II. The payees, the purposes for which the costs have been incurred, and the amount of the disbursements requested are itemized on Schedule I hereto.

III. Each obligation mentioned in Schedule I hereto has been properly incurred and is a proper charge against the Project Fund. None of the items for which payment is requested has been reimbursed previously from the Project Fund.

All capitalized terms not defined herein have the meanings ascribed to them in the Indenture.

CITY OF SOUTH LAKE TAHOE
By:
[Name]
[Title]
682
Notice of Public Hearing
City of South Lake Tahoe City Council
NOTICE IS HEREBY GIVEN that the City of South
Lake Tahoe City Council will conduct a public hearing
on August 9, 2022, at 9:00 a.m., or as soon thereafter
as possible, at City Hall, City Council Chambers, 1901
Lisa Maloff Way (formerly Airport Road), South Lake
Tahoe, to consider the following agenda item:

Proposed issuance of bonds (the “Authority
Bonds”) by the South Tahoe Joint Powers
Financing Authority . The Authority Bonds are
being issued to assist the City with the financing of
certain public capital improvements, including the
costs of construction and installation of the City’s
new recreation and aquatics center.

Any interested person may appear at the public
hearing and speak in favor or against this item. Written testimony may be delivered at, or prior to, the Public
Hearing addressed to the City Council in care of the
City Clerk at [email protected] or at the
address listed below.

City Council agendas and related staff reports are
available at least 72 hours in advance of regular
meetings on the City Council page of the City’s website www.cityofslt.us or by contacting the City Clerk.

The City Council Chambers meeting facility is
accessible to people with disabilities. Every reasonable effort will be made to accommodate any person
needing special assistance to attend this meeting.

Contact the City Clerk at least 48 hours in advance
of the meeting for assistance [28 CFR 35.102.35.104
ADA Title II and Brown Act Government Code Sections
54953.2, 54954.1, 54954.2, and 54957.5].

Susan Blankenship
Susan Blankenship
Elected City Clerk
City of South Lake Tahoe
1901 Lisa Maloff Way, Ste 206
South Lake Tahoe, CA 96150
(530) 542-6005
Published: July 29, 2022
683
City of South Lake Tahoe
Series 2022 Lease Revenue Bonds
August 9, 2022
684
The Multigenerational Center
2  Over the next two years the City plans to construct a new recreation and aquatics facility to replace the existing recreation center
 Located on south side of Highway 50 on western end of the City, across from the lake 60,000-square-foot facility planned on 56-acre project site Aquatics center with 6-lane lap pool and separate activity pool with lazy river and spray features
 Multi-purpose gymnasium, fitness and dance studios Commercial grade kitchen and multiple community gathering spaces 685
Plan of Finance
3  The administration has developed a financing plan based on a number of considerations
 Use of funds on hand: use funds on hand to limit the amount of lease revenue bonds (LRBs) being issued
 Type of financing: fixed rate to take advantage of current low interest rates Repayment structure: use of a 30-yr level debt service structure  Repayment source: Pledge of City’s general fund revenues for use and occupancy of the leased property
 City intends to use Measure P revenues as primary source for base rental payments  Timing: price in early fall to take advantage of relatively low interest rates; construction to begin next spring
686
Projected Debt Service – Scenario 1
4  At current market interest rates, we expect annual debt service to be approximately $2.8 million through fiscal year 2052-53
 Assumptions
 50bps interest rate cushion ‘AA’ Rating
Period Ending Principal Coupon Interest Debt Service
10/01/2023 $745,000 5.000% $2,058,715 $2,803,71510/01/2024 680,000 5.000% 2,123,500 2,803,50010/01/2025 715,000 5.000% 2,089,500 2,804,50010/01/2026 750,000 5.000% 2,053,750 2,803,75010/01/2027 790,000 5.000% 2,016,250 2,806,25010/01/2028 830,000 5.000% 1,976,750 2,806,75010/01/2029 870,000 5.000% 1,935,250 2,805,25010/01/2030 915,000 5.000% 1,891,750 2,806,75010/01/2031 960,000 5.000% 1,846,000 2,806,00010/01/2032 1,005,000 5.000% 1,798,000 2,803,00010/01/2033 1,055,000 5.000% 1,747,750 2,802,75010/01/2034 1,110,000 5.000% 1,695,000 2,805,00010/01/2035 1,165,000 5.000% 1,639,500 2,804,50010/01/2036 1,225,000 5.000% 1,581,250 2,806,25010/01/2037 1,285,000 5.000% 1,520,000 2,805,00010/01/2038 1,350,000 5.000% 1,455,750 2,805,75010/01/2039 1,415,000 5.000% 1,388,250 2,803,25010/01/2040 1,485,000 5.000% 1,317,500 2,802,50010/01/2041 1,560,000 5.000% 1,243,250 2,803,25010/01/2042 1,640,000 5.000% 1,165,250 2,805,25010/01/2043 1,720,000 5.000% 1,083,250 2,803,25010/01/2044 1,810,000 5.000% 997,250 2,807,25010/01/2045 1,900,000 5.000% 906,750 2,806,75010/01/2046 1,995,000 5.000% 811,750 2,806,75010/01/2047 2,095,000 5.000% 712,000 2,807,00010/01/2048 2,200,000 5.000% 607,250 2,807,25010/01/2049 2,305,000 5.000% 497,250 2,802,25010/01/2050 2,425,000 5.000% 382,000 2,807,00010/01/2051 2,545,000 5.000% 260,750 2,805,75010/01/2052 2,670,000 5.000% 133,500 2,803,500 43,215,000 40,934,715 84,149,715
Sources
Par Amount $ 43,215,000
Premium 2,212,524
45,427,524
Uses:

Project Fund 45,000,000
Cost of Issuance 254,664Underwriter's Discount 172,860
45,427,524
Good Faith Estimates
Net Proceeds to be Received* $45,000,000True Interest Costs 4.602%Total Debt Service 84,149,715 UW Discount 172,850 Cost of Issuance 254,664
*Net of cost of issuances and underwriter’s discount
687
Projected Debt Service – Scenario 2
5  At current market interest rates, we expect annual debt service to be approximately $3.2 million through fiscal year 2052-53
 Assumptions
 50bps interest rate cushion ‘AA’ Rating
Period Ending Principal Coupon Interest Debt Service
10/01/2023 $715,000 5.000% $2,376,942 $3,091,94210/01/2024 790,000 5.000% 2,459,000 3,249,00010/01/2025 830,000 5.000% 2,419,500 3,249,50010/01/2026 870,000 5.000% 2,378,000 3,248,00010/01/2027 915,000 5.000% 2,334,500 3,249,50010/01/2028 960,000 5.000% 2,288,750 3,248,75010/01/2029 1,005,000 5.000% 2,240,750 3,245,75010/01/2030 1,055,000 5.000% 2,190,500 3,245,50010/01/2031 1,110,000 5.000% 2,137,750 3,247,75010/01/2032 1,165,000 5.000% 2,082,250 3,247,25010/01/2033 1,225,000 5.000% 2,024,000 3,249,00010/01/2034 1,285,000 5.000% 1,962,750 3,247,75010/01/2035 1,350,000 5.000% 1,898,500 3,248,50010/01/2036 1,415,000 5.000% 1,831,000 3,246,00010/01/2037 1,490,000 5.000% 1,760,250 3,250,25010/01/2038 1,560,000 5.000% 1,685,750 3,245,75010/01/2039 1,640,000 5.000% 1,607,750 3,247,75010/01/2040 1,720,000 5.000% 1,525,750 3,245,75010/01/2041 1,810,000 5.000% 1,439,750 3,249,75010/01/2042 1,900,000 5.000% 1,349,250 3,249,25010/01/2043 1,995,000 5.000% 1,254,250 3,249,25010/01/2044 2,095,000 5.000% 1,154,500 3,249,50010/01/2045 2,200,000 5.000% 1,049,750 3,249,75010/01/2046 2,310,000 5.000% 939,750 3,249,75010/01/2047 2,425,000 5.000% 824,250 3,249,25010/01/2048 2,545,000 5.000% 703,000 3,248,00010/01/2049 2,670,000 5.000% 575,750 3,245,75010/01/2050 2,805,000 5.000% 442,250 3,247,25010/01/2051 2,945,000 5.000% 302,000 3,247,00010/01/2052 3,095,000 5.000% 154,750 3,249,750 49,895,000 47,392,942 97,287,942
Sources
Par Amount $ 49,895,000
Premium 2,557,874
52,452,874
Uses:

Project Fund 52,000,000
Cost of Issuance 253,294Underwriter's Discount 199,580
52,452,874
Good Faith Estimates
Net Proceeds to be Received* $52,000,000True Interest Costs 4.602%Total Debt Service 97,287,942UW Discount 199,580 Cost of Issuance 253,294
*Net of cost of issuances and underwriter’s discount
688
6 Interest rate Movement
As of 7/29/2022

0.00%1.00%2.00%3.00%4.00%5.00%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 AAA Curve
10 yr Historical Range 7/29/2021 7/29/2022

0.00%1.00%2.00%3.00%4.00%5.00%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Yield
Maturity
MMD AAA General Obligation Curve
Current 1 Wk Ago 1 Mo Ago 1 Yr Ago
689
 The City leases assets to the South Lake Tahoe Joint Powers Financing Authority in exchange for an upfront payment through a Lease Agreement and Sublease  The City leases the assets back from the Authority in exchange for an agreement to make payments over time through a Sublease
 The Authority signs over its rights to collect and enforce payments to a trustee bank (BNY Mellon) through an Assignment Agreement
 Once all payments have been made or the LRBs are refunded, the Lease Agreement and Sublease will be terminated
Financing Structure
7 690
 Security
 Pledge of revenues, consisting mainly of base rental payments payable from the City’s general fund revenues for use and occupancy of the leased properties  City intends to use Measure P revenues as primary source for base rental payments; FY2021 Measure P revenues totaled $3.3 million
 City covenants to budget and appropriate annual base rental payments Subject to abatement by reason of any damage, destruction, condemnation or impairment of leasehold interest, there is substantial interference with the use and occupancy of the Leased Properties  Reserve requirement not required but may be funded for marketing purposes  Leased Properties
 Police Station (to be released from the 2016 LRBs)  Fire Station #1 (to be released from the 2016 LRBs) Ice Arena Bijou Park Series 2022 Bonds
8 691
 Given that lease payments are subject to appropriation and abatement, the value, essentiality, and resiliency of the assets are key credit considerations  Value: Value of the assets (typically based on insured values) must be approximate to the value of the lease revenue bonds
 The rent in each year represents the “fair rental value” of the premises  Essentiality: Is the asset essential to the operations of the City Resiliency: Assets must pass a seismic test to receive a rating by S&P  Together, the leased assets provide sufficient value, essentiality, and resiliency Credit Considerations
9 Value Essentiality Resiliency
Police Station Insufficient  Fire Station #1 Insufficient  Ice Arena Insufficient - Bijou Park Insufficient - NA 692
 Financing Resolutions
 Authorizes the issuance of lease revenue bonds in the not to exceed amount of $50 million to finance the construction of the new Multi-generational Recreation and Aquatics Center  Approves certain legal and disclosure documents as to form Acknowledges certain ongoing obligations of the City in connection with the financing Authorizes the execution of the closing documents by City staff  Property Release Resolutions
 Removal of certain properties under the lease and the sublease relating to the South Tahoe Joint Powers Financing Authority Refunding Lease Revenue Bonds, 2016 Series A Actions of Joint Powers Financing Authority and City Council 10 693
 Our strategy is to apply to a single rating
agency, to apply for bond insurance, and to purchase such bond insurance only to the extent that its benefit exceeds its cost  We made a presentation to Standard &
Poor’s on Friday, July 22nd
 S&P assigned their ‘AA’ rating to the bonds The rating is one notch below the City’s implied GO rating due to the appropriation structure
 Implied GO rating ‘AA+’ Appropriation rating ‘AA’
 An issue with a “AA” rating is less likely to
require the purchase of bond insurance
Credit Ratings
11 694
Financing Schedule
12  The financing is scheduled to price Tuesday, October 4th and to close on Tuesday, October 18th
Date ActivityAugust 9th
• Presentation of financing plan and financing resolutions to City Council• City Council approval of bond documents and substantially final preliminary official statement
September 20th Phase II bid awardSeptember 22nd Post preliminary official statementOctober 4th Pricing of LRBs. Establishment of interest ratesOctober 18th Closing. City receives funds 695
Questions?
696
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 15
Agenda Item: Memorandum of Understanding with Lake Tahoe Unified School District (LTUSD) for Park Ranger Program
Executive Summary: City staff have been working with Lake Tahoe Unified School District (LTUSD) staff to design and implement a Park Ranger Program managed by the City Parks and Recreation Department. LTUSD staff have successfully applied for and been subsequently awarded a workforce development grant to support partial funding of the program and provide entry level job opportunities to local youth. The purpose of the Intergovernmental Agreement is to establish the overarching arrangement by which the City will receive pass through funding for a period of two years for specific expenses related to the implementation of the Park Ranger Program including funding for a seasonal Program Coordinator totaling $67,000. Under the Agreement the City agrees to provide matching funds of $122,000 in salaries and benefits for staff managing the program and Park Ranger wages. The additional ranger wages identified in the matching funds are accounted for in the annual budget for seasonal temporary labor. The MOU supports Strategic Priority #3 Community for All - Goal 3.4 Waste Management and Stewardship and Priority #4 - Economic Development - Goal 4.3 Resident Retention and Workforce Development by providing a career path and opportunity to local youth.

Requested Action / Suggested Motions: 1) Pass a Motion authorizing the Mayor to Execute a Memorandum of Understanding with Lake Tahoe Unified School District (LTUSD) to support partial funding for the Park Ranger Program. 2) Pass a Resolution authorizing $67,000 reimbursement grant funding from LTUSD to fund a Park Ranger Coordinator Position.

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

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - LTUSD MOU Park Ranger Program.docx
02-LTUSD MOU.pdf
03-Resolution_Reimbursement_Grant_from_LTUSD_for_Park_Ranger_Program.docx 697
Council Agenda Report- August 9, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: Memorandum of Understanding with Lake Tahoe Unified School District for Park Ranger Program
Location: Parks and Beaches
Responsible Staff Member: Lauren Thomaselli, Director of Parks and Recreation (530) 542-6197
Background: In 2021 the City collaborated with Lake Tahoe Unified School District (LTUSD) and Lake Tahoe Community College (LTCC) and Sierra Nevada Alliance (SNA) to implement a pilot program on City parks and beaches called the Youth Ambassador Program. The intent of the program was two-fold: 1) To provide job opportunities to local youth and inspire career pathways in natural sciences, environment, sustainable recreation, and park management. 2) To directly interact with park users to educate and inform the public on best practices, park rules, waste management, history, culture, and general information. LTUSD raised all the program funds and program management for the pilot program was the role of Sierra Nevada Alliance, while the City provided some training and support to the Ambassadors as needed.

Following an end of season evaluation and analysis of the pilot program, all partners agreed the program fulfilled its core purpose and should continue as a Park Ranger Program to be managed by the City under the Parks and Recreation Department. The primary difference between the pilot program and new program is the staff will be working directly for the City rather than an outside agency managing a program on City property. Bringing the program inhouse allows the City to continue to coordinate with LTUSD and LTCC to hire local students, while also providing more hands on training and oversight to more effectively achieve program objectives.

At the February 15, 2022 City Council meeting, Council authorized a salary table amendment to include the classification positions for the program including Park Stewards, Park Rangers, and a Park Ranger Program Coordinator classifications. Additionally, Council was informed the program has been identified for supplemental funding from a workforce development grant led by Lake Tahoe Unified School District, Strong Workforce Pathway Coordinator, Kim Carr. Staff also indicated the intention to return to Council to authorize an Agreement between LTUSD and the City to appropriate the grant funding into the budget.

Issue and Discussion: On June 28, 2022 LTUSD board adopted the Memorandum of Understanding (MOU) with the City (02 Attachment). The MOU identifies the City as a collaborative partner receiving pass through grant funds awarded to LTUSD to provide workbased learning opportunities to high school students. The City shall seek qualified students to work as Park Stewards to interact with the public by sharing the stewardship messages. The MOU obligates the City to recruit, hire, train, and manage the park ranger program for two summers 698
Council Agenda Report- August 9, 2022 Page 2 of 2
beginning in 2022. Ms. Carr has participated in recruitment efforts for high school and college students and assisted with the selection of the Park Ranger Program Coordinator. At the conclusion of each summer season the Program Coordinator shall draft a report highlighting program progress, identifying weaknesses and recommendations for program improvements. The report shall be provided to LTUSD for review at the end of each season.

Financial Implications: The LTUSD Strong Workforce Program Grant funds is identified specifically for funding the cost of the program coordinator for two seasons at a cost not to exceed $67,000. The funding will be received through reimbursement based on actual hours worked submitted in writing to LTUSD as outlined in the Agreement. The City matching funds of $122,000 is identified as a portion of existing salaries and benefits associated with full time staff directly associated with the Park Ranger Program. More specifically the Parks and Recreation Director is responsible for program design and implementation while the Parks Manager is responsible for training and overseeing the program upon implementation. The additional seasonal Park Ranger positions are anticipated to be approximately $40,000 and funded within the existing annual Parks Maintenance Temporary Labor budget 100-04170-41020. Additionally, the City shall provide the Coordinator, Park Rangers and Stewards uniforms and equipment to support a safe work environment. The equipment consists of high visibility vests and hats as part of standard issue equipment in the park maintenance classification. The Park Rangers work in coordination with Park Maintenance and Park Attendants to provide quality park experiences to the public.

It is worthy to note that the City did receive $10,000 of additional grant funds for the park ranger program through the CalRecycle Grant for SB 1383.

Policy Implications: This program meets the following strategic priorities adopted by Council in the Strategic Plan:

Priority 3 - Community for All – goal 3.4 Waste Management and Stewardship. The Park Rangers/Stewards will specifically educate visitors on the “Tahoe Way” encouraging personal actions to protect the environment.

Priority 4 - Economic Development – goal 4.3 Resident Retention and Workforce Development.

The Strong Workforce Program Grant specifically focuses on recruiting local high school and college students to provide an introduction to a variety of career pathways in recreation and the environment.
699
700
701
702
703
704
705
Resolution 2022-XXX August 9, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
August 9, 2022
Authorizing $67,000 reimbursement grant funding from Lake Tahoe Unified School District to fund a Park Ranger Coordinator Position

BACKGROUND
A. In Summer 2021 the City collaborated with Lake Tahoe Unified School District (LTUSD) to implement a pilot program on city parks and beaches called the Youth Ambassador Program.

B. In Fall 2021 the City and LTUSD established a park ranger program to replace the ambassador program and integrate the program into the City Parks and Recreation Services as part of a workforce development strategy.

C. On January 1, 2022 LTUSD was awarded a Strong Workforce grant in the amount of $688,220 to develop concentrator and completer course for the CTE Forestry and Natural Resources Pathway to attract more diverse student enrollment by use of varied learning experiences. CSLT is a collaborative partner in the grant award and will partner with South Tahoe High School to provide work-based learning opportunities by offering full-time seasonal jobs as Park Stewards.

D. LTUSD will provide CSLT a total of one-time funding of $67,000 through the grant award to fund a temporary seasonal full-time program coordinator to recruit and supervise workbased learning.

E. CSLT will provide match funds by way of salaries and benefits of City staff managing the program (Director of Parks and Recreation and Parks Manager) as well as through Park Steward wages. Total financial match is $122,000.

F. On February 15, 2022 the City authorized a salary table amendment to include classifications positions for Park Stewards, Park Rangers, and Park Ranger Coordinator.

G. City staff has developed a Memorandum of Understanding with LTUSD for the implementation of the program.
706
Resolution 2022-XXX August 9, 2022 Page 2 of 2
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Finds the implementation of the MOU with LTUSD will support workforce development and position Park Stewards to help manage public parks and interact wit the public by sharing stewardship messages.

2. Authorizes the City to amend FY 21/22 budget and accept LTUSD grant reimbursement funds of $67,000 into the Parks Maintenance account 100-04170-33320 (Other Local Grants) to fund a seasonal full-time program coordinator to implement the program.

Adopted by the City of South Lake Tahoe City Council on August 9, 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.
707
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 16
Agenda Item: Tahoe Valley Stormwater and Greenbelt Improvement Project Update and Request for Appropriation of Grant Matching Funds
Executive Summary: Based on previous years of public outreach, community feedback and Town-Center planning for the Tahoe Valley Area Plan, the concept to create a central Greenbelt feature was developed reflecting community input from public participation to improve connectivity for bicyclists and pedestrians, while providing lighting, bridges, public gathering space for public art, new recreational park improvements and features, drainage and public infrastructure to better serve businesses, residents and encourage new infill businesses development and housing, as envisioned in the Area Plan and regional plan Town Center approach to infill development. Floodplain improvements within the greenbelt area will provide climate change resilience through expanded floodplain capacity for future flooding scenarios and riparian habitat value.

Requested Action / Suggested Motions: 1) Receive status update on the Tahoe Valley Greenbelt Project; and 2) Pass a Resolution appropriating $706,442 in undesignated General Funds Reserves for the match required to secure $6.9 million in implementation grant funds from the State Water Resources Control Board for the Tahoe Valley Greenbelt and Storm Water Improvement Project.

Responsible Staff Members: Jason Burke, Complete Streets Program Manager, Hilary Roverud, Director of Development Services and Stan Hill, Engineering Manager Responsible Staff Member: Jason Burke, Complete Streets Program Manager Hilary Roverud, Director of Development Services
Stan Hill, Engineering Manager
Reviewed and Approved By:

Anush Nejad, Director of Public Works
Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Tahoe Valley Greenbelt SWRCB Matching Grant.docx 02-Project Location Map.pdf
03-Greenbelt Concept Plan.pdf
04-Tahoe Valley Greenbelt Public Survey Results.pdf
05-Resolution-Tahoe Valley Greenbelt SWRCB Grant.docx
06-Presentation.pptx
708
Council Agenda Report August 9, 2022 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: Tahoe Valley Stormwater and Greenbelt Improvement Project Update and Request for Appropriation of Grant Matching Funds
Location: Tahoe Valley drainage watershed, inclusive to the “Greenbelt” area located behind The Crossing (AKA “factory stores”) at the South Y and the drainage watershed extending between west F Street down to Tahoe Keys Blvd (see Attachment 02 - Project Location Map) Responsible Staff Member: Jason Burke, Complete Streets Program Manager (530) 542-6038 Hilary Roverud, Development Services Director (530) 542-6024 Stan Hill, Engineering Manager (530) 542-6039
Background: Based on the results of community participation, visioning and planning enabled under the Regional Plan Town-Center goals, City Council adopted the Tahoe Valley Area Plan on June 2, 2015, which includes the Tahoe Valley Greenbelt and Stormwater Improvement Project (Tahoe Valley) as a vital community and environmental improvement project. Based on feedback from the public received during the Area Plan process, and subsequent design meetings and public survey for the Greenbelt area, the project has been developed to provide the following benefits requested by the community and stakeholders:
 Improved connectivity for bicyclists and pedestrians between neighborhoods and Town Center amenities, including bridges over flooded portions of the trails  Safety lighting that is dark sky compatible and improves safety for active transportation  Area-wide stormwater treatment compliance to facilitate commercial and attainable housing development on Area Plan Town-Center parcels
 Public gathering space for public art and educational signage to provide enhanced amenities for increased residential development in and around the Town-Center  New community park improvements and features to serve residents and visitors  New bicycle and pedestrian path connections to the Y area and public gathering space to facilitate private investment on adjacent commercial and residential properties  Expanded floodplain and Stream Environment Zone (SEZ) riparian habitat to provide for increased climate resiliency
 Natural treatment, permeable pavements, and source control to reduce sediment and nutrients carried in urban stormwater runoff, as required by the Lake Tahoe Total Maximum Daily Load (TMDL) and associated Municipal Stormwater Permit.

Due to the size and diversity of the overall project, the City has split the project into two phases in order to secure funding from a variety of eligible and applicable funding sources. The currently funded portion (Phase 1) consists of stormwater and water quality improvement work upstream (Bonanza neighborhood) and downstream (James, Eloise to Tahoe Keys Blvd.) with the Central Greenbelt Area (behind the Crossings) spanning from Emerald Bay Road at B Street to Hwy 50 at 4th Street. 709
Council Agenda Report August 9, 2022 Page 2 of 3
Since Phase 1 is focused on removing nutrients and sediment from urban stormwater runoff, this portion of the project was funded by State Water Resources Control Board (SWRCB) Prop. 1 funds focused on water quality. Public Works staff plan to formally appropriate the SWRCB Prop 1. grant funds along with supplemental funds from the California Tahoe Conservancy (CTC) to award the construction contract at the next City Council meeting, pending timely turnaround of the final grant agreement documents by the SWRCB.

The central greenbelt portion still seeking funding (Phase 2) consists of public park amenities in upland areas surrounding areas of expanded SEZ restoration and a ‘mountain meadow’ themed meandering stormwater treatment system. Phase 2 includes new bicycle and pedestrian trails, two bridges of flooded portions of the existing paths, dark-sky compatible lighting, public gathering places and future public art locations. As a public green space improvement, the City recently submitted a grant application for the California Natural Resources Agency Prop. 68 Urban Greening Grant program, with results expected at the end of July. This phase has not yet been funded but will benefit from carrying forward any unused construction funding from Phase 1.

Issue and Discussion: In February 2021, the City was notified of the award from the (SWRCB), Proposition 1 grant award in the sum of $6,922,904. The SWRCB Prop. 1 grant program typically has a 50% match requirement, but the City qualifies for a reduced 10% match as a disadvantaged community (DAC). In the March 16, 2021 staff report for the resolution authorizing a funding agreement for this project noted a need for a General Fund match obligation up to $769,212 in the Financial Implications. With help from a variety of funding sources, primarily TRPA mitigation funds, the local City match of $706,442 is currently being requested based on updated financial information. The Prop. 1 grant will cover all construction expenses for Phase 1. The funds will also cover a portion of Phase 2 construction.

For this project, the City has received large sums of federal and state assistance to scope, develop, conduct public and stakeholder meetings, complete environmental review and permitting, complete remaining critical acquisitions, and complete detailed 100% level engineering construction bid documents to attain a ‘shovel ready’ project status. In summary the City has directly received over $1.7M in federal and state grant funding, and approximately $2.25M in indirect support (acquisition and stakeholder outreach facilitation) needed to advance this project to shovel ready status based on feedback from the public and stakeholders.

Additionally, the California Tahoe Conservancy invested approximately $2 million in State funds towards completing critical acquisitions in support of the City’s project and Town- Center concept envisioned Tahoe Valley Area Plan adopted by the City Council, including:
 Acquisition and demolition of the former South Y Lodge (0.81-acre parcel at 1120 Emerald Bay Road)
 Acquisition and demolition of the Psychic building and A-frame “Heads Up” smoke shop (0.5-acre site at 2122 Lake Tahoe Blvd.)
 Acquisition and demolition of the Tahoe Urgent Care building (0.5-acre site at 2130 Lake Tahoe Blvd.)
Financial Implications: Currently, implementation grant funding awarded to the Tahoe Valley Stormwater and Greenbelt Improvement Project is approaching final execution and approval of the construction contract utilizing the SWRCB Proposition 1 Storm Water Grant Program grant, requiring appropriation of $706,442 of the previously presented match requirement of up to $769,212. This grant match will enable to City to leverage upwards in $15M in grant funding for community and environmental improvements.
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Council Agenda Report August 9, 2022 Page 3 of 3
Environmental Considerations: The Planning Commission adopted the CEQA and Mitigated Negative Declaration for the Greenbelt and Stormwater Improvement Project on May 9, 2019, SCH# 20190292152. The Project TRPA and Lahontan permitting is completed and ready for construction of the Phase 1 Project improvements.

Policy Implications: Completing project improvements will assist with meeting the sediment and nutrient reductions mandated by the Lake Tahoe Total Maximum Daily Load (TMDL) program. Fulfilling mandated TMDL reduction goals will assist with maximizing residential housing allocations under TRPA Code section 50.5.2.E.2 (Distribution and Administration of Residential Allocations – TMDL Implementation). The Project advances the City Council Strategic Priorities and Goals, specifically:
 Action Item 1.4 (Transportation) to prioritize implementation of mixed-use recreational trails and Class 1 bike trails and closing gaps in the bicycle trail system.  Action Item 2.3 (Connectivity) to facilitate implementation of trail infrastructure prioritizing the connection of bicycle and walking trails, from neighborhoods near the Greenbelt to the South Y commercial area and beyond.
 Action Item 5.3 (Infrastructure and Maintenance) by actively seeking funding to develop sustainable infrastructure projects, based on the prioritized capital improvement project list.

The project will also provide greenhouse gas reduction benefits, providing progress on Action #WB-1 of the 2020 Climate Action Plan: Improve bicycle and pedestrian networks. 711
South Y
Tahoe Valley Storm Water
Improvement Project Area Map
Department of
Public Works -
Engineering Division
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June 2018

TAHOE VALLEY GREENBELT
SOUTH LAKE TAHOE, CA • THE CITY OF SOUTH LAKE TAHOE
LEGEND

CITY-OWNED PARCELS IN THE GREENBELT

CTC-OWNED PARCELS IN THE GREENBELT
THE

CROSSINGS

SEATING AREAS
(TYPICAL)

INTERPRETIVE
PATH

WAYFINDING MAP/

KIOSK (TYPICAL)

SHARED USE CL ASS I PATH

WITH USER YIELD SIGN
MEADOW

CROSSINGS

SEZ AND PATH
MEADOW

OVERLOOK

EXPANDED PLAZA/

AMPHITHEATER

FUTURE SHARED

USE CL ASS I PATH

CONNECTS TO

SAWMILL BIKE PATH

STORMWATER

IMPROVEMENTS

SHARED USE CL ASS I PATH

WITH USER YIELD SIGN

SEASONALLY

WET MEADOW

SHARROWS
RALEY’S

SHOPPING
CENTER
CONCEPTUAL PLAN: MOUNTAIN MEADOW

TRASH AND RECYCLING
RECEPTACLES T YP.

PROVIDE ADEQUATE

EMERGANCY TURN-AROUND

ADVENTURE PL AY

AND PARCOURSE

FOURTH ST

THIRD ST

THIRD ST

FOURTH ST

MCDONALDS
SUBWAY
CVS
TAHOE
URGENT

MY THAI CARE

CUISINE
KEN’S
TIRES
50’S
DINER
BARTON
HEALTH
TAHOE
VALLEY

PHARMACY

GOODWILL

BONANZA AVE

MELBA DRIVE

JEAN AVE

BARTON AVE

HELEN AVE

B STREET

B STREET

LAKE TAHOE BOULEVARD

SOUTH AVE
US 50
US 50/SR 89

BARTON MEMORIAL

HOSPITAL
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SCALE: 1”=200’

CONCEPTUAL PLAN
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TAHOE VALLEY GREENBELT

PUBLIC SUMMARY
JANUARY 2017

PREPARED BY
128 MARKET STREET, SUITE 3E, PO BOX 5666
STATELINE, NV 89449
775.588.5929 715
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TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS

1. ON A SCALE OF 1-5, HOW WELL DO THE IMAGES ON PAGE 3 REPRESENT THE VISUAL CHARACTER AND PROGRAM ELEMENTS YOU PREFER FOR THE GREENBELT? (TRAILS, SIGNAGE, OUTDOOR SPACE, SEATING, ART, LANDSCAPE) (# OF RESPONDENTS = 235) public meeting
online survey
DECEMBER 14, 2016 PUBLIC MEETING
A public meeting was held on December 14th, 2016 to discuss preliminary concepts that were developed for the Tahoe Valley Stormwater and Greenbelt Improvement Project. Members from the City, Cardno and Design Workshop presented the project overview, stormwater alternatives, and recreational concepts. The intent of the public workshop was to gather feedback from the community in order to help inform the design moving forward. Twenty one people attended the Public Workshop and an additional 224 people responded to an online survey which was open to the public between 12/12/16 and 1/30/17.
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3. WHICH OF THE EXAMPLES BELOW REPRESENT YOUR PREFERENCE FOR THE VISUAL CHARACTER OF PLAY ELEMENTS IN THE GREENBELT? (SELECT ALL THAT APPLY) (# OF RESPONDENTS = 231)

2. REFERRING TO THE IMAGERY ABOVE, WHAT TYPE OF PLAY ELEMENTS DO YOU PREFER FOR THE GREENBELT? (# OF RESPONDENTS = 230)
TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
None
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Additional Comments

1. Slide and swings

2.if no bathroom, playground doesn’t make sense
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4. WHAT IS THE VISUAL CHARACTER OF STORMWATER ELEMENTS DO YOU PREFER FOR THE GREENBELT? (# OF RESPONDENTS = 232)

5. WHICH OF THE IMAGE(S) BELOW REPRESENT YOUR PREFERENCE FOR THE VISUAL CHARACTER OF STORMWATER ELEMENTS? (# OF RESPONDENTS = 231) TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
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1. Falling into the trench in image 3 would be a concern

2.Somwhere in between
719
6 | Tahoe Valley Greenbelt

6. WHAT IS YOUR PREFERRED CIRCULATION ALTERNATIVE ACCORDING TO THE IMAGES ON PAGE 7? (# OF RESPONDENTS = 227)
TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
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2.Or #1 with an added class I instead of proposed red sidewalk to 50 and need a crosswalk ped activated beacon on HWY 50

3.I don’t see any significant differences

4.I just think there should be a good at-grade crossing for HWY 50, with features to slow speeds all the way from the Y
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TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
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TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
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7. WHAT ELEMENTS OF THE CONCEPTUAL PLAN DO YOU LIKE THE MOST? (SELECT ALL THAT APPLY) (# OF RESPONDENTS = 218)
TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
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Additional Comments

1. Chess table

2.Perhaps consider artist painting on the building
that would both blend in with the scenery and
discourage graffiti.

3.Bike connectivity is my top priority

4.Bike pump track

5.Wow!! I hope this happens. I live in gardener mt
w kids. It would definitely draw us out into the
community.

6.Looks fantastic!!!!!!

7. I like most everything here. What about security or
lighting? I would hate to see the homeless take this
thing over. Also, is there a funding mechanism to
maintain this?

8.maximize wetlands and natural undeveloped space

9.Keep it natural

10. how about fixing our roads

11. I like the overall appearance, but it seems like it is trying to be a park and a bike- and pedestriantransportation route but is missing both marks a bit.

I see little point in a playground in the middle (or at all) if there’s no parking near it. I don’t see families coming to use this park as it is depicted. Where is
the amphitheater? I looked closely enough to see
the bad parking job in the 2nd photo but not an
amphitheater) would need parking, too.

12. more natural paths

13. Adult exercise- PAR course?

14. WHere are the adult play stations? We could use
some workout stations for those of us who run and
do cross fit - big kids play and need exercize too!

15. The artist rendering does a great job of blending
the natural with the man-made. This concept does
an excelland job of opening up the areas for loacl
and tourist use. Critical will be the long term cost for maintenance of the area. Ensure the materials used
are easily obtainable and maintainable given climate
expectations.

16. adequate parking

17. openness of the central areas.

18. ped crossing on HWY 50

19. ped crossing on HWY 50

20. wayfinding
723
10 | Tahoe Valley Greenbelt

8. WHAT ELEMENTS OF THE CONCEPTUAL PLAN DO YOU NOT LIKE? (SELECT ALL THAT APPLY) (# OF RESPONDENTS = 176)
TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
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Question 8. Additional Comments

1. amphitheatre. Is this really needed? Too many
gathering areas could be asking for trouble. Need
to discourage motorized vehicles of any sort. Long
sight lines might help discourage the wrong element
from using this as a gathering place.

2. Nothing

3. Nothing jumps out as impressive. Needs more variety
of plants and colors

4. I needs to connect into other (Improved) bike routes - Its almost a stand alone rather than part of community
connectivity

5. Maximize Stormwater treatment and natural areas;
minimize hardscape!

6. Some how at congested areas bikes need to be able
to get around walkers and have signs for walkers to
go single file like you want bikes todo

7. Amphitheater - what will it be used for?

8. Not handicap friendly. Needs handicap parking areas.

In fact, it needs parking, period. Visitors will be filling up Raley’s, MaiTai and other business’ lots. need to
make sure Barton Ave stays open

9. I dont like so many areas pathed. I think its better to keep it more natrual

10. appropriately sited, no not imposed, cohesive
character

11. No community gardens

12.Love it!

13. Art seems to be missing

14. these conflict with optimum wetlands/natural
retention

15. don’t like the frog statue - it doesn’t fit with nature

16. No play elements please (these are used rarely and
add unnecessary cost and maintenance and liability).

Just place a few granite rocks.

17.The elements are all nice. However, as I noted above, I don’t think the layout will attract people. Some
of the park’s attractions should be visible (and eyecatching) from outside the park.

18. less pavement, less tree clearing = slower snow
melt / run off

19. Less parking and more bike racks. Also, a bus
stop? Make highway crossings safe for peds and
bikers.

20. They all look great - not too much concrete please! Love the art.

21.Ensure the artwork can be periodically modified
to reflect Tahoe community values, if needed.
overlooks seem like a waste in an area like this

22. I don’t see people using a plaza right on 50 unless, possibly, there was an associated eatery.

23. Connectivity down 50 (without going throught the
Y) is essential, but plan 2 seems to duplicate the bike paths a bit. Maybe better to have one clear path for
peds and another for bikes?

24. Ampitheater.... unless really used like the
commons I dont think this is necessary.

25. not “natural” enough - too developed

26. Room for a small amphitheater and seating?

27.I like everything shown but it would be nice to see
more future/planned path connections (across 50 @
B street, across 50 to bike path @ 3rd or 4th, crossing Truckee and connecting to Greenway near Barton
Hospital).

28. no bathrooms

29. need to consider transit park and ride facilities

30. bench style is dull 724
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9. WHAT ELEMENTS DO YOU FEEL ARE EITHER MISSING FROM THE PLAN OR MORE OF THE PROGRAM ELEMENT NEEDS TO BE PROVIDED? (# OF RESPONDENTS = 183) TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
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Question 9. Additional Comments

1.The use of native/ drought resistant plants would be
great! I’d tags for the species as a learning element.

Plaques explaining what the stormwater bmps are
doing and why they are so important

2.Signs explaining history and landscape

3.Bathrooms

4.Restroom facilities

5.Why doesn’t alternative #1 have a bike trail connection to B street (only a proposed sidewalk is listed)?

6.Stroller & bicycle parking at play areas and seating
areas

7. drinking water fountain

8.separate pedestrian walkways from bike ways (don’t
walk in the bike lane)

9.Signs that say watc out for bikes

10. Connections to the South Tahoe Bikeway, possibly
via additional bike/ped crossings of Highway 50 east of the Y.

11. Bike pump track

12. Handicap and regular parking.

13. Demonstration gardens

14. need to make sure Barton Ave stays open

15. disc golf practice areas, mini-courses targeting
beginners and youth and signage with map/mileage
to local course(s) and explanation of the game, how to
play and get involved....

16. bathrooms, turf area for family play, consider a dog run because this area is likely mostly used by locals.

17. convenient connectivity to existing bike paths
north of Y

18. Conceptual plan does not indicate how you cross
Hwy 50 safely or how it will connect with other
existing trails.

19. our roads need to be taken care of first

20. Definitely need lighting at key areas of the bike
path.

21. I am a strong proponent of active transportation
but where are the users of the park going to come
from in this case? A block off 89 and 50, you’re going
to have to have parking for any attractions. Otherwise, consider focusing on the active-transportation route
aspect, making the route through the greenbelt/
wetland clear and skip the playground and
amphitheater ideas. If you do have plans for adequate
parking, I’d think about designing in a space for a
farmers’ market.

22. adult recreation

23. Security for the area due to homeless population
that could use the area for outside camping as the area is know for that behind McDonald’s and CVS

24. Outdoor theater space or amphitheater?

25. water bottle refill stations

26. Vendors

27. Recreational elements. How about a giant chess
set, bike racks next to seating areas or a designated
walking route to encourage exercise?

28. Maybe a “gateway” to South Lake feature,
especially if it could incorporate a pedestrian/cyclist crossing of the highway. Less parking and more bike
racks. Also, a bus stop? Make highway crossings safe
for peds and bikers.

29. safe busy road crossing

30. PAR course features spaced throughout
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12 | Tahoe Valley Greenbelt
TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS
Additional Overall Comments

1. Are bikes allowed? Will they be on the same trail as walkers. Would be nice to separate them.

2.Thanks!

3.Your doing a great job

4.Looks terrific!

5.I would like to select both for questions 2 and 4 and select multiple playground and storm water images.

6.Great job everyone - enjoying all the redevelopment
and growth going on in the city!

7. Some kind of crossingnear B street is imperative.

Jaywalking is a common issue in this area, and
it would greatly benefit the connectivity of the Y
community.

8.Great plan, looking forward to utilizing the new
spaces.

9.So excited!

10. Would like to see more bike/run trails separate
from roadways! Would like to connect around the
lake

11. It is great to connect people to nature- natural
wetlands, meadows and stormwatervtreatment
through infiltration, and vegetation

12. “I,m concerned on who will do the maintenance
on all these projects once they are built. As a
highway maintenance worker in Meyers it is almost
impossible to maintain the little things we have now,
such as our roads, drains, and catch basins in and
around Tahoe.

13. All these items you have listed are a great idea,
but we need to be able to maintain them as well.

The Commons for instance is one that does not get
maintained well and is already looking in bad shape.

14. So please look to who will maintain these
projects. “

15. I don’t live in Tahoe but I’m a Busness that
supports you. I’m there riding about 6 times a year
just to ride. I love what you guys do and so that’s
why I send you money because I use your trials. I
wish nv would fix there side. When I ride around the
lake my life is in danger on the nv side.

16. I like the ideas presented...

17. “More art - consider a musical park - http://
freenotesharmonypark.com/

18. like in Moab at the rotary park.”

19. Not immediately sure where parking opportunities
exist with the plan. Also, I get confused with the
characteristics of class 1, 2, and 3 paths.

20. Safe connectivity to the bike trail across Highway
50 that leads to Taylor Creek, Fallen Leaf Lake, and
Emerald Bay.

21. We need more homeless shelters first. Otherwise,
the homeless will be drawn to this area as they have
to The Commons.

22. Thank you for being bold and brave enough to
imagine and present such a wholistic and revitalizing
plan to our community.

23. I am very excited about these coming changes!

24.“Need to make sure that existing businesses in
town are not affected by the greenbelt

25. ie: Barton Ave needs to remain open”

26. Since it is out of view from highway 50 the
homeless problem in summer will be an issue. The
bike path behind the lumber store near Al Tahoe
had about 20 homeless people camping along it this
summer.

31. Adult exercize stations http://www.nytimes.
com/2012/07/01/nyregion/new-york-introduces-itsfirst-adult-playground.html

32. Lake Tahoe is slowly becoming a 18-24 hour
tourist community. Due to the proximity of this area to businesses appropriate lighting should be considered
for evening activities or gatherings.

33. plentiful parking

34. lighting huge issue for safety as well as people
vandalizing it & doing illegal activity

35. Water fountains

36. places to secure bicycles; water fountains, etc.

There should definitely be some kind of key focal point where people will want to get a photo...

37. dog park-area

38. Keep separated and distinct the (paved?), most
direct bike commuter route and the (packed dirt?)
leisure/walker/family route.

39. Really want to see lighting at night here

40. Parking?

41. And outdoor concert venue would be amazing

42. Where is the art? How about a sculpture or other
art piece?

43. What is presented looks great, I am just curious
about larger connections to other paths and parts of
town.

44. A very small place for local music. 20 -30 people.

45. native plant demos

46. class 1 bike path

47. more sidewalks around 3rd street

48. missing frequently used path from the pharmacy
to the crossing

49. need safer crossing at B st. and Hwy 50

50. too many gathering areas

51. dog run
Question 9. Additional Comments - Continued
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TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS

27. Please carefully review the comments submitted
to the South Shore Parks, Trails and Recreation
Plan submitted in November 15 regarding disc
golf, signed by Mike Plansky, William McKissock,
Scott Prescott and Damon Kixmiller. It provides
a fairly comprehensive overview of disc golf can
serve the community through accessible recreation,
environmental participation, sustainable trailbuilding, youth recreation programs and regional tourism strategies.

28. Looks nice overall. Not wild about overly
geometric paved areas. Would prefer mor
naturalized.

29. It would be great to incorporate some public
art like the town of Yountville, CA has done along
public walks.

30. I am curious about what South Street from the
hospital to the greenbelt will look like.

31. Artwork and lighting would be good. Please
build this, but please maintain it if it gets built!

32. crossing 50 south of Raley’s seems unrealistic
and dangerous. Maybe the lot south of Raley’s is a
dog run.

33. SLT needs to enhance development of more
such open areas. Use Tahoe Meadows as an
optimum paradigm

34. Looks good. Settle on design and get started
ASAP. Please link to other existing trails. Use
some of project funds to tear acquire land and tear
down eyesore buildings around Y and along Hwy
50 (there are many)

35. Keep it natural like the beauty of Tahoe

36. impact on neighboring areas

37. “Already commented in the prior questions.

38. In full disclosure, I am not a SLT resident, but
rather a frequent visitor.”

39. There needs to be more “critical mass” to attract
people to this area and keep it from becoming a
homeless encampment.

40. Tahoe is naturally beautiful. People walk/bike
trails for this reason. Keep the pavement for the
roads. If you make the trails more natural, it will
slow things down, mellow the atmosphere of the
area. People flood the local meadows to escape
the hustle. For bike commute it would be just as
easy to stay on the sidewalks along 50 where
you would need the crosswalks to move around
the Y anyways. As a destination that would
promote people getting off their bikes, and walking
them instead of colliding with walkers. Less fast
pace movement = less stress = more pleasant
community. That is why people live here, and not
in big cities.

41. may promote illegal camping, needs ample
lighting. Parking?

42. Awesome work so far - thank you. A focus
on making it a community gathering place (like
Lakeview Commons) and accessible by bike, foot,
and bus (including safe highway crossings) would
be a huge benefit to both residents and visitors
(this is the main gateway to South Lake).

43. Slide 5 only allows 1 choice. I’ve crossed that
intersection many times as a pedestrian. I would
prefer a crossing someplace other than the main
intersection with signals

44. Despite the Tahoe Coalition Warm House, I
feel that seating benches and pergolas will invite
the homeless to camp out there. They currently
are, being that it is well secluded. More lighting is
crucial.

45. This is great and we are excited to make it easier
to not drive in SLT! The concepts are beautiful!
Please add Exercise stations for adults along the
trails. Kids play areas are great but we need to
encourage adults to stretch, do step ups, and
other exercizes to get/stay in shape and this is
the perfect opportunity to scatter then along the
trails so we can run/walk and do an exercise. The
stations do not need to be big! They have these in
San Diego scattered along the walking paths and
they are great and used constantly!

46. transients will use any developed facilities,
therefore they should be left out!

47. I really wish we could improve the area behind
my house at the dead end of Chonokis. It is heavily
used by everyone as a dog feces catch all with
no trash or or dog bags offered. It’s beginning to
smell really bad when the wind blows. Also, I am
surrounded by low income properties and the bad
behavior that accompanies it. Also, this area has a
high concentration of homeless transients. More
patrols via forestry as well as local PD would be
much appreciated.

48. These types of community transition areas
between business, residential, tourist activities are
very important to opening up the entire Lake Tahoe
community to locals and visitors while preserving
the natural beauty of the Tahoe Basin. These types
of areas also promote community volunteer efforts
to keep the communities clean and managed.

Hopefully a visitor will eventually be able to transit
from South Shore to North Shore via these types
of transition areas without ever getting on Hwy 50
or 89.

49. parking areas are ugly and use a lot of space yet
are absolutely necessary

50. are there public bathrooms & drinking faucets?

51. Lighting would be very important especially in
the winter, when it gets dark at 4:30pm

52. Love the idea!!
727
14 | Tahoe Valley Greenbelt

53. Thank you - looking forward to the area getting
improved. Please keep it family friendly as
opposed to a “party” hang-out for drinking etc. -
thx much

54. The crossing(s) at 50 is/are key. As it is, a
pedestrian at 50 has several long wait times if
going diagonally across the intersection, and
has to worry about cars which have barely
slowed turning right. Visibility is poor on the
TJ Maxx corner. The crossing are too quick
for some walkers and uncomfortable for the
rest of us. Realistically, to stitch together the
various shopping centers means making it more
enjoyable and fast for the pedestrian by using
traffic calming, or other strategies.

55. Although art is a nice compliment, I don’t think
it is a necessary cost. The natural elements of
Lake Tahoe provide plenty of “art” I believe.

56. Really excited for this! I live on Helen right by
this development, and I’m excited for more open
space and better pedestrian/bike connectivity.

Right now, we drive too often to the Y. This will
change that.

57. Will it be well lit at night? Could there be
emergency call towers, much like they have on
college campuses? (It won’t look very natural, but
that area can be so remote at night...)

58. Please build this! Our community is starving for
more connectivity, outdoor activities and visually
pleasing recreation areas that provide stormwater
treatment!

59. PLEASE PLEASE PLEASE make this happen,
our community has so much potential and this
would be another great change.

60. Long overdue.

61. I cannot wait to see this implemented!

62. Great idea

63. The more places that are built for people to sit
around or gather, the more opportunity there will
be for people to damage the environment. I thing
a path with limited places to stop would be best

64. It will look better if not over-developed.

Play areas should be as natural as possible.

Remember kids will play with an empty box. They
don’t need fancy equipment. Keep it simple.

Simple is classy overdone is vegas!!

65. I love this idea! Please make this project
happen!

66. Would love to see it extend further up 50 to the
meadow near Sierra Tract.

67. 100% for this project.

68. add crossings at HWY 50
TAHOE VALLEY GREENBELT | PUBLIC MEETING SURVEY RESULTS

69. add sharrows on Melba to Campground

70. wood play features double as art

71. too many overlooks, never seen people using the
benches along Kahle path

72. needs crossing at Hwy 50 and B St.

73. love the open section behind the crossing

74. Consider a taller feature for an overlook such as a viewing mound

75. maybe a tunnel under HWY 50

76. Bike lanes or bike boxes at the intersections

77. Show how this connects to the South Tahoe
bikeway
Overall Additional Comments - Continued
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Resolution 2022-XXX August 9, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
August 9, 2022
Appropriating Undesignated General Funds Reserves in the Amount of $706,442 in Grant Match for the Tahoe Valley Greenbelt and Storm Water Improvement Project

BACKGROUND
A. City Council adopted the Tahoe Valley Area Plan on June 2, 2015, which included the Tahoe Valley Stormwater and Greenbelt Improvement Project (Tahoe Valley) as a vital environmental and community improvement project to support housing, infill, and community development in the Tahoe Valley portion of the City.

B. The Tahoe Valley Stormwater and Greenbelt Improvement Project is included on priority lists and plans for watershed and water quality improvements projects under the Lake Tahoe basin Environmental Improvement Program (EIP #01.01.01.0033).

C. On March 1, 2016, City Council authorized Public Works to submit Proposition 1 grant applications for the Tahoe Valley project (Resolution 2016-11).

D. On July 2, 2020, the Public Works Department submitted a Proposition 1 grant application to the State Water Resources Control Board (SWRCB) for implementation of the Project.

E. On February 16, 2021, the City received a letter from the SWRCB announcing a Proposition 1 implementation grant award for $6,922,904 with a 10% local match requirement.

F. On March 16, 2021, City Council authorized a funding agreement with the SWRCB, and authorized and designated the Director of Public Works to sign the funding agreement, amendments, and requests for disbursement on behalf of the City (Resolution 2021-017).

G. Of the requested appropriation of grant matching funds, an additional $14,152 will be needed for upfront payment for eligible reimbursement expenses through the Franchise Utility fee agreements upon completion of underground utility relocation work during project construction.

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

1. Does hereby authorize modification of the Annual Operating and Capital Improvement Budget for Fiscal Year 2021-22 and appropriates the required matching funds into the budget as follows:

REVENUE
301 40030 Revenue (36300) Transfer in from General Fund Grant Match Set Aside (+) 706,442* ($14,152 needed to load budget upfront for reimbursement later through Franchise Utility fee for STPUD and underground utility relocation work)

EXPENSE
301-40030 Expense (48030) Tahoe Valley Stormwater & Greenbelt EIP Construction (+) 706,442 Adopted by the City of South Lake Tahoe City Council on August 9, 2022 by the following vote:

Yes:

No:

Absent:

Abstain:
729
Resolution 2022-XXX August 9, 2022 Page 2 of 2
________________________ 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.
730
Update and Match Request:

Tahoe Valley Stormwater and Greenbelt
Improvement Project
731
Tahoe Valley
Stormwater
Improvement Project
732
Current Condition
733
Bike Network Connectivity
Future Dennis Machida Trail
Watershed
Area Plan
Boundary
734
TRPA Permit
$
City Council
Approves Area
Plan Permit
Park & Rec.

Commission
Review
Planning
Commission CEQA
Adoption
CTC Approval
$ $
City Council
Approves CTC
License Agreement
Area Plan Stormwater & Greenbelt Design Permitting Construction Public Outreach
City Council
Planning Commission
Parks & Rec Commission
TRPA
CTC
$ Legend
735
Public Engagement
TUESDAY, SEPTEMBER 30TH, 2014
736
Grant Funding Priorities
737
Grant Match
Request
Funding for this project has been provided in full or in part through an agreement with the State Water Resources Control Board using funds from Proposition 1. The contents of this document do not necessarily reflect the views and policies of the foregoing, nor does mention of trade names or commercial products constitute endorsement or recommendation for use. 738
Questions?
Thanks to our project partners….

Agency Stakeholders Private/Non-profit Stakeholders
Business
Owners
Local
Residents
739
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 17
Agenda Item: American Rescue Plan Act of 2021 (ARPA) Funding Appropriations Executive Summary: On January 6th, 2022 the U.S. Department of the Treasury issued the Final Rule for the State and Local Fiscal Recovery Funds (SLFRF) program. The final rule provides state and local governments with increased flexibility to pursue a wider range of uses, as well as greater simplicity so the government can focus on responding to the crisis in the communities and maximizing the impact of their funds. In addition to several expansions to the statutory categories of uses, it provided the option to elect a standard allowance for revenue loss rather than calculating revenue loss through the formula. Under this option, Treasury presumes that up to $10 million in revenue has been lost due to the public health emergency and recipients are permitted to use that amount (not to exceed the award amount) to fund “government services.” On February 1, 2022, the City Council through Resolution 2022-019, elected the provision of a “standard allowance” for the $5,309,994 allocated to the City to spend on government services through the period of performance.

The balance from the second tranche the City received in July 2022 is $2,654,997 Staff is proposing to transfer these funds to the General Fund under the provision of revenue loss and use these funds for government services towards the Fire Station 3 remodel and the Al Tahoe Bijou Area Plan. Staff will bring these project forward to City Council for budget appropriations as soon as the projects scope of work are developed.

Requested Action / Suggested Motions: Pass a Resolution authorizing transfer of remaining $2,654,997 in American Rescue Plan Act (ARPA) funding to the General Fund under the statutory category C, Revenue Loss, for the provision of government services.

Responsible Staff Member: Joseph Irvin, City Manager
Responsible Staff Member: Joseph D. Irvin, City Manager (530) 542-6043 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Finance Director
Heather Stroud, City Attorney
Attachments:
01-Staff Report - ARPA Funding Appropriations.docx
02-Resolution_-_ARPA_Appropriations.docx
740
Council Agenda Report- August 9, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: American Rescue Plan Act of 2021 (ARPA) funding appropriations Location: Citywide
Responsible Staff Member: Joseph D. Irvin, City Manager (530) 542-6043 Background: The American Rescue Plan Act (ARPA) of 2021 was signed into law by President Biden on March 11, 2021. The bill, intended to mitigate many of the worst effects of the COVID-19 pandemic, included $1.9 trillion in stimulus measures and ranged from targeting individual families, health care, affected sectors, and government action. The funding to local government was approximately $130 billion which was to be divided between cities and counties. This funding intended to replace pandemic-impacted revenues, support the government’s work and invest in building resilient infrastructure. On May 10, 2021, the U.S. Treasury released initial guidance for recipients of ARPA State and Local Funds via an Interim Final Rule (“IFR”). The guidance provided direction on allocation, disbursement timing, eligible and ineligible uses, reporting requirements and other important rules surrounding the funding.

The U.S. Treasury provides direct disbursements of funds to each state, metropolitan city (generally defined as population > 50,000), county, territory and tribal government. Non-entitlement units of government (generally defined as population < 50,000) receive funding through their applicable state government. The U.S. Department of the Treasury designated 291 non-entitlement cities in California. Non-entitlement cities receive Coronavirus Local Fiscal Recovery Fund payments via the California Department of Finance. Payments to local governments are made in two equal payments, 50% was provided in summer 2021 and the balance to be delivered approximately 12 months later.

The deadline to expend funds is December 31, 2024. Additional guidance provided by the US Treasury, recognizing the difficulty that some cities would have spending every dollar by this deadline particularly while using this funding for long-term or transformative change projects, clarified that the dollars only need to be obligated by the end of 2024 and fully spent by the end of 2026 when this federal program is expected to wind down.

On August 17, 2021 City Council discussed the results of a community survey representing a variety of projects and programs to assist the City in providing economic assistance from the negative impacts of the Covid-19 pandemic and chose several projects as viable uses of ARPA funding directing staff to move forward in developing and implementing the projects.

On January 6, 2022 the U.S. Department of the Treasury issued the Final Rule for the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The final rule provides state and local governments with increased flexibility to pursue a wider range of uses, as well as greater simplicity so the government can focus on responding to the crisis in the communities and maximizing the impact of their funds. In addition to several expansions to the statutory categories of uses, it provided the option to elect a standard allowance for revenue loss rather than calculating revenue loss 741
Council Agenda Report- August 9, 2022 Page 2 of 2
through the formula. Under this option, Treasury presumes that up to $10 million in revenue has been lost due to the public health emergency and recipients are permitted to use that amount (not to exceed the award amount) to fund “government services.” On February 1, 2022, the City Council through Resolution 2022-019, elected the provision of a “standard allowance” for the allocated to the City $5,309,994 to spend on government services through the period of performance. The second tranche of $2,654,997, received on July 21st, 2022, is proposed to be used for the following two projects, consistent with the Treasury Final Rule and previous City Council discussions:

1. Fire Station 3 remodel - $2,400,000

2. Bijou Al Tahoe Area Plan - $254,997
Issue and Discussion: The balance from the second tranche the City received in July 2022 is $2,654,997. To streamline the reporting process and consistent with the election of “standard allowance” to replace lost public sector revenue to pay for “government services” including police, fire, public works, housing, parks and recreation, and other, staff is requesting to transfer these funds to the General Fund under the provision of revenue loss and use these funds for government services towards previously and future approved projects. The proposed projects include Fire Station 3 remodel ($2.4M), and the Bijou Al Tahoe Area Plan ($254,997). These projects will be brought to City Council for budget appropriations as soon as the projects’ scope of work are developed.

Financial Implications: The attached resolution will appropriate the second tranche, $2,654,997, from the City’s Local Fiscal Recovery Fund into the General Fund based on the election of a standard allowance for revenue loss of up to $10 million, for government services towards two proposed projects.

Environmental Considerations: Future appropriations of funds for the above-mentioned projects are subject to review under the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines. Section 15301 exempts the operation, maintenance, repair, or minor alteration of existing public facilities.

Policy Implications: Consistent with City’s Financial Policies and City Council priorities. 742
Resolution 2022-XXX August 9, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
August 9, 2022
Authorizing a transfer of the second tranche of $2,654,997 in American Rescue Plan Act (ARPA) funding to the General Fund under the statutory category C, Revenue Loss for the provision of government services
A. The American Rescue Plan Act (ARPA) (Public Law No. 117-2) was signed into law by the President of the United States on March 11, 2021
B. The Act appropriated Coronavirus State and Local Fiscal Recovery Funds (SLFRF) for allocation by the U.S. Department of the Treasury to states, counties, metropolitan cities, and small cities with population under 50,000 (referred to as non-entitlement units of local government).

C. On June 15, 2021 the City Council adopted Resolution 2021-052 establishing the special fund “Local Fiscal Recovery Fund” and authorizing the Director of Finance to accept all funds received under the American Rescue Plan Act and deposit them in the Local Fiscal Recovery Fund.

D. On August 17, 2021 the City Council considered a list of potential projects and chose several projects as viable uses of ARPA funding directing staff to move forward in developing and implementing the projects.

E. On January 6, 2022, the U.S. Department of the Treasury issued the Final Rule for the SLFRF program that provided increased flexibility allowing recipients to elect a “standard allowance” of up to $10 million (not to exceed the award amount) to replace lost public sector revenue to pay for “government services”, with streamlined reporting requirements.

F. On February 1, 2022, the City Council adopted Resolution 2022-019 electing the provision of a “standard allowance” of up to $10 million provided in the Treasury Final Rule to spend on government services through the period of performance, for the allocated to the City $5,309,994 to be received in two tranches.

G. To streamline the reporting process and consistent with the election of “standard allowance” to replace lost public sector revenue to pay for “government services”, the City Council may transfer the full amount up to $10 million (not to exceed the award amount, $5,309,994) to the General fund.

H. The second tranche of $2,654,997 was received on July 21st, 2022 and is proposed to be used for government services towards Fire Station 3 remodel and the Bijou Al Tahoe Area Plan, consistent with the Treasury Final Rule and previous City Council discussions.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
743
Resolution 2022-XXX August 9, 2022 Page 2 of 2

1. Appropriates ARPA (SLFRF) funds as follows:

Fund/Account Description
Revenue
(Increase)
Decrease
Expense
Increase
(Decrease)
264-01952-33132 Appropriate Funds into ARPA
Revenue Account ($2,654,997)
264-01952-50001 Transfer out to General Fund $2,654,997 100-01951-36375 Transfer in from ARPA (264) ($2,654,997) Adopted by the City of South Lake Tahoe City Council on August 9, 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.
744
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 18
Agenda Item: Removal of Fire Station #1 and Police Station from 2016 Lease Revenue Bonds Executive Summary: Construction of the City’s new Multigenerational Recreation and Aquatics Center is proposed to be financed by the South Tahoe Joint Powers Financing Authority issuing 2022 Lease Revenue Bonds. The release of the Fire Station #1 property and the Police Station property from the 2016 lease revenue bonds will free up those assets so they can serve as the leased property with respect to the proposed 2022 lease revenue bond financing. There is sufficient value in the remaining leased assets in the 2016 lease revenue bonds to release these two properties.

Requested Action / Suggested Motions: 1) Acting as the City Council, Pass a Resolution authorizing the execution and delivery of documents in connection with the removal of certain properties under the Lease and the Sublease Relating to the South Tahoe Joint Powers Financing Authority Refunding Lease Revenue Bonds, 2016 Series A, and taking related actions; and 2) Acting as the South Tahoe Joint Powers Financing Authority, Pass a Resolution authorizing the execution and delivery of documents in connection with the removal of certain properties under the Lease and the Sublease Relating to the Authority’s Refunding Lease Revenue Bonds, 2016 Series A, and taking related actions.

Responsible Staff Members: Joe Irvin, City Manager and Authority Executive Director Olga Tikhomirova, Finance Director and Authority Treasurer
Responsible Staff Member: Joe Irvin, City Manager and Authority Executive Director Olga Tikhomirova, Finance Director and Authority Treasurer Reviewed and Approved By:

Susan Blankenship, City Clerk
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Removal of Properties from Lease Revenue Bonds.docx 02-City Resolution-2022-Removal of Property from 2016 Leases.docx 03-STJPFA Resolution - Removal of Property from 2016 Leases.docx 04-Lease Amendment No. 2 (Exh. A to City and STJPFA Resos).DOCX 05-Sublease Amendment No. 2 (Exh. B to City and STJPFA Resos).DOCX 06-Assignment Agreement Amendment No. 2 (Exh. C to STJPFA Reso).DOCX 745
Council/STJPFA Agenda Report- August 9, 2022 Page 1 of 3 City of South Lake Tahoe
Report to City Council and
South Tahoe Joint Powers Financing Authority
Meeting Date: August 9, 2022
Title: 2022 Removal of Properties from 2016 Lease Revenue Bonds Location: Citywide
Responsible Staff Member: Joe Irvin, City Manager and Authority Executive Director (530) 542- 6043; Olga Tikhomirova, Director of Finance and Authority Treasurer, (530) 542-7431 Background: In conjunction with the construction of the City’s new recreation and aquatics center (“Recreation Center Complex”), the City contemplates financing for the project by the issuance of 2022 Lease Revenue Bonds by the South Tahoe Joint Powers Financing Authority (“Authority”) and requests the removal of certain properties under the leases related to the South Tahoe Joint Powers Financing Authority Refunding Lease Revenue Bonds, 2016 Series A (the “2016 Bonds”). In particular, the property at 1252 Ski Run Boulevard (the “Fire Station #1 Property”) and the property at 1352 Johnson Boulevard (the “Police Station Property”) will be removed from the 2016 leases The South Tahoe Joint Powers Financing Authority (the “Authority”) issued the 2016 Lease Revenue Bonds to refund bonds issued in 2006 that were in turn used in a series of previous refunding bond issuances. The original bonds were issued to finance public improvements and property acquisition in the Stateline/Tourist Core area. The 2016 Bonds are structured as lease revenue bonds, involving a lease-lease back arrangement, in light of State law requirements and restrictions. The 2016 Bonds were issued pursuant to an Indenture (the "Indenture"). Concurrently with the issuance of the 2016 Bonds, the City and the Authority entered into a Lease Agreement (the “Lease”) and a Sublease Agreement (the “Sublease”). Under the Lease, the City leased certain City-owned properties (the “Demised Properties”) to the Authority. Under the Sublease, the Authority subleases the Demised Properties back to the City, and the City pays certain rental payments (the “Lease Payments”), in an amount sufficient to pay debt service on the 2016 Bonds, which Lease Payments are assigned to the Trustee for the Bonds pursuant to an Assignment Agreement. The 2016 Bonds are payable from "Revenues" of the Authority derived from such Lease Payments.

Originally, the Demised Properties consisted of the following (land and improvements thereon):
(i) the Recreation Center Complex, (ii) the Police Station Property, (iii) 2101 Lake Tahoe (“Fire Station #3 Property”). In 2018, the City and the Authority amended the Lease, Sublease and Assignment Agreements pursuant to Amendment No. 1 to such agreements to remove the 746
Council/STJPFA Agenda Report- August 9, 2022 Page 2 of 3 Recreation Center Complex from the 2016 leases and substituted the Fire Station #1 Property and the Public Works Facility Property located at 1740 D Street in its stead. The City and Authority now desire to release the Fire Station #1 Property and the Police Station Property from such leases. In order to accomplish such property removal, the value of the remaining Demised Properties must be greater than or equal to the outstanding principal amount of the bonds, which is currently $4,870,000. At the time that the 2016 Bonds were issued, the City satisfied this requirement by showing that the combined insured value of these three properties ($14,350,000) was greater than the original principal amount of the 2016 Bonds being issued ($10,550,000). The Demised Properties remaining after such removal would be the Fire Station #3 Property and the Public Works Facility Property which are worth more than the outstanding principal amount of the 2016 Bonds, currently $4,870,000.

Issue and Discussion: The release of the Fire Station #1 Property and the Police Station Property from the 2016 leases will free up those assets so they can serve as the leased property with respect to the proposed 2022 Lease Revenue Bond financing for the construction of the new Recreational Complex. This property removal under the 2016 Bonds leases does not impact, in any way, the underlying payment structure with respect to the 2016 Bonds.

The 2016 Bonds documents permit the City to release a portion of the Demised Properties, so long as certain conditions are met. Among them, the City must show that, after the removal, the appraised value of the remaining Demised Properties under the Sublease, is equal or greater than the outstanding principal amount of the 2016 Bonds, which is currently $4,870,000. Staff has obtained Appraisals from Johnson Valuation Group, LTD, which show that the appraised value of the Demised Properties after the removal (i.e., consisting of the Fire Station #3 Property, and the Public Works Facility Property) total $5,050,000, which is greater than the outstanding principal amount of the 2016 Bonds.

The 2016 Bonds are partially insured by Assured Guaranty Municipal Corp. (“AGM”). The City is required to obtain AGM’s consent to the property removal. Staff has contacted AGM and expects to obtain such consent.

In 2016, S&P Global had assigned an underlying rating of ’AA-’ to the 2016 Bonds, and an insured rating of ’AA’ to the insured bonds. In September 2018, S&P raised its underlying rating to ‘AA’. The City is required to obtain a confirmation from S&P that the ratings on the 2016 Bonds will not be negatively impacted by the property removal. S&P has provided such confirmation.

Staff recommends adopting the following Resolutions:

City Council of the City South Lake Tahoe (the “City”) (Attachment 2)

1. Resolution of the City Council Authorizing the Execution and Delivery of Documents in Connection with the Removal of Certain Properties under the Lease and the Sublease Relating to the South Tahoe Joint Powers Financing Authority Refunding Lease Revenue Bonds, 2016 Series A, and Taking Related Actions (the “City Council Resolution”) 747
Council/STJPFA Agenda Report- August 9, 2022 Page 3 of 3 South Tahoe Joint Powers Financing Authority (the “Authority”) (Attachment 3)

2. Resolution of the Authority Authorizing the Execution and Delivery of Documents in Connection with the Removal of Certain Properties under the Lease and the Sublease Relating to the Authority’s Refunding Lease Revenue Bonds, 2016 Series A, and Taking Related Actions (the “Authority Resolution”)
Upon the adoption of the attached Resolutions, the City will proceed with the removal of certain properties under the leases related to the South Tahoe Joint Powers Financing Authority Refunding Lease Revenue Bonds, 2016 Series A (the “2016 Bonds”). In particular, the property at 1252 Ski Run Boulevard (the “Fire Station #1 Property”) and the property at 1352 Johnson Boulevard (the “Police Station Property”) will be removed from the 2016 leases.

Financial Implications: The proposed property removal has no impact on the underlying payment structure with respect to the 2016 Bonds (which was described in detail in the June 7, 2016 Agenda Report relating to the issuance of the 2016 Bonds). The release of the Fire Station #1 Property and the Police Station Property from the Lease and Sublease for the 2016 Bonds will facilitate the financing for the new Recreation Center Complex construction project.

Environmental Considerations: The Removal of Properties from 2016 Lease Revenue Bonds is exempt from CEQA under State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). Section 15061(b)(3) of the CEQA Guidelines states that an activity is covered by the commonsense exemption that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.

Policy Implications: Consistent with City’s Financial Policies 748
Resolution 2022-XXX August 9, 2022 Page 1 of 3
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
August 9, 2022
Authorizing the Execution and Delivery of Documents in Connection with the Removal of Certain Properties under the Lease and the Sublease Relating to the South Tahoe Joint Powers Financing Authority Refunding Lease Revenue Bonds, 2016 Series A, and Taking Related Actions

BACKGROUND
A. In 2016, the South Tahoe Joint Powers Financing Authority (the “Authority”) issued $10,055,000 in aggregate principal amount of its Refunding Lease Revenue Bonds, 2016 Series A (the “2016 Bonds”), to refund prior Authority bonds.

B. The 2016 Bonds were issued pursuant to an Indenture, dated as of August 1, 2016 (the “Indenture”), by and between the Authority and the Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

C. In connection with 2016 Bonds, there were executed and delivered in addition to the Indenture: (i) a Lease Agreement, dated as of August 1, 2016, as amended by Amendment No. 1 to Lease, dated as of March 1, 2018 (as so amended, the “Lease”), each by and between the City of South Lake Tahoe (“City”), as lessor, and the Authority as lessee, with respect to certain real properties owned by the City (collectively, the “Demised Properties”); (ii) a Sublease Agreement, dated as of August 1, 2016, as amended by Amendment No. 1 to Sublease, dated as of March 1, 2018 (as so amended, the “Sublease”), each by and between the Authority, as sublessor, and the City, as sublessee, with respect the Demised Properties; and (iii) an Assignment Agreement, dated as of August 1, 2016, as amended by Amendment No. 1 to Assignment Agreement, dated as of March 1, 2018 (as so amended, the “Assignment Agreement”), each by and between the Authority and the Trustee, pursuant to which the Authority assigned its rights to receive base rental payments under the Sublease to the Trustee for the benefit of the owners of the 2016 Bonds.

D. As identified under the Lease, the Sublease and the Assignment Agreement, the Demised Properties include the following (including land and improvements thereon):
(i) 1352 Johnson Boulevard (the “Police Station Property”), (ii) 1252 Ski Run Boulevard (the “Fire Station #1 Property”), (iii) 2101 Lake Tahoe Boulevard (the “Fire Station #3 Property”); and (iv) 1740 D Street (the “Public Works Facility Property”).
749
Resolution 2022-XXX August 9, 2022 Page 2 of 3
E. The City is permitted to remove a portion of the Demised Properties under the Lease and the Sublease, upon the satisfaction of the conditions set forth in the Indenture, the Lease and the Sublease.

F. The City desires to release the Police Station Property and the Fire Station #1 Property from the Lease, Sublease and Assignment Agreement (such Removal being referred to herein as the “Property Removal”).

G. To affect the Property Removal, there has been presented to the City Council forms of amendments to the Lease and the Sublease.

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

1. Finds the above recitals are true and correct and are a substantive part of this Resolution.

2. Hereby approves the Amendment No. 2 to Lease (the “Lease Amendment No. 2”), proposed to be entered into by and between the City and the Authority, in the form on file with the City Clerk, and attached hereto as Exhibit “A”. Each of the Mayor (or in the Mayor’s absence, the Mayor Pro Tem) and the City Manager (together, the “Authorized Officers”), acting individually, is hereby authorized, for and in the name and on behalf of the City, to execute and deliver the Lease Amendment No. 2 in substantially said form, with changes therein as such Authorized Officer may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).

3. Hereby approves the Amendment No. 2 to Sublease (the “Sublease Amendment No. 2”), proposed to be entered into by and between the City and the Authority, in the form on file with the City Clerk, and attached hereto as Exhibit “B”. Each of the Authorized Officers, acting individually, is hereby authorized, for and in the name and on behalf of the City, to execute and deliver the Sublease Amendment No. 2 in substantially said form, with changes therein as such Authorized Officer may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).

4. Hereby finds and determines that the execution and delivery of the Lease Amendment No. 2 and the Sublease Amendment No. 2 (and the implementation of the provisions thereof) will not, in and of themselves, materially adversely affect the security for the payment of the 2016 Bonds or the interests and rights of the owners of the 2016 Bonds or the Trustee under the Indenture and the Sublease.

5. Hereby authorizes the Authorized Officers, the Finance Director and all other officers of City, jointly and severally, to execute and deliver any and all necessary instruments (including, but not limited to, any certificate of acceptance relating to the quitclaim of the Authority’s and the Trustee’s interests in any property released from the Lease and the Sublease) which they may deem necessary or advisable in order to effectuate the purposes of this Resolution, the Lease Amendment No. 2 and the Sublease 750
Resolution 2022-XXX August 9, 2022 Page 3 of 3
Amendment No. 2 and such actions previously taken by such officers are hereby ratified.

Adopted by the City of South Lake Tahoe City Council at a duly noticed regular meeting on August 9, 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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Resolution 2022-XXX August 9, 2022 Page 1 of 3
Resolution 2022-XXX
Adopted by the South Tahoe Joint Powers Financing Authority August 9, 2022
Authorizing the Execution and Delivery of Documents in Connection with the Removal of Certain Properties under the Lease and the Sublease Relating to the Authority’s Refunding Lease Revenue Bonds, 2016 Series A, and Taking Related Actions

BACKGROUND
A. In 2016, the South Tahoe Joint Powers Financing Authority (the “Authority”) issued $10,055,000 in aggregate principal amount of its Refunding Lease Revenue Bonds, 2016 Series A (the “2016 Bonds”), to refund prior Authority bonds.

B. The 2016 Bonds were issued pursuant to an Indenture, dated as of August 1, 2016 (the “Indenture”), by and between the Authority and the Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

C. In connection with 2016 Bonds, there were executed and delivered in addition to the Indenture: (i) a Lease Agreement, dated as of August 1, 2016, as amended by Amendment No. 1 to Lease, dated as of March 1, 2018 (as so amended, the “Lease”), each by and between the City of South Lake Tahoe (“City”), as lessor, and the Authority as lessee, with respect to certain real properties owned by the City (collectively, the “Demised Properties”); (ii) a Sublease Agreement, dated as of August 1, 2016, as amended by Amendment No. 1 to Sublease, dated as of March 1, 2018 (as so amended, the “Sublease”), each by and between the Authority, as sublessor, and the City, as sublessee, with respect the Demised Properties; and (iii) an Assignment Agreement, dated as of August 1, 2016, as amended by Amendment No. 1 to Assignment Agreement, dated as of March 1, 2018 (as so amended, the “Assignment Agreement”), each by and between the Authority and the Trustee, pursuant to which the Authority assigned its rights to receive base rental payments under the Sublease to the Trustee for the benefit of the owners of the 2016 Bonds.

D. As identified under the Lease, the Sublease and the Assignment Agreement, the Demised Properties include the following (including land and improvements thereon):
(i) 1352 Johnson Boulevard (the “Police Station Property”), (ii) 1252 Ski Run Boulevard (the “Fire Station #1 Property”), (iii) 2101 Lake Tahoe Boulevard (the “Fire Station #3 Property”); and (iv) 1740 D Street (the “Public Works Facility Property”).

E. The City is permitted to remove a portion of the Demised Properties under the Lease and the Sublease, upon the satisfaction of the conditions set forth in the Indenture, the Lease and the Sublease.
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Resolution 2022-XXX August 9, 2022 Page 2 of 3
F. The City desires to release the Police Station Property and the Fire Station #1 Property from the Lease, Sublease and Assignment Agreement (such Removal being referred to herein as the “Property Removal”).

G. To affect the Property Removal, there has been presented to this Board proposed forms of amendments to the Lease, the Sublease and the Assignment Agreement.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the Governing Board of the South Tahoe Joint Powers Financing Authority hereby finds, determines, resolves and orders as follows:

1. The above recitals are true and correct and are a substantive part of this Resolution.

2. The Amendment No. 2 to Lease (the “Lease Amendment No. 2”), proposed to be entered into by and between the City and the Authority, in the form on file with the Clerk of this Board and attached hereto as Exhibit “A”, is hereby approved. Each of the Chairperson, the Vice Chairperson and the Executive Director of the Authority (each, an “Authorized Officer”), acting individually, is hereby authorized, for and in the name and on behalf of the Authority, to execute and deliver the Lease Amendment No. 2 in substantially said form, with changes therein as such Authorized Officer may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).

3. The Amendment No. 2 to Sublease (the “Sublease Amendment No. 2”), proposed to be entered into by and between the Authority and the City, in the form on file with the Clerk of this Board and attached hereto as Exhibit “B”, is hereby approved. Each Authorized Officer, acting individually, is hereby authorized, for and in the name and on behalf of the Authority, to execute and deliver the Sublease Amendment No. 2 in substantially said form, with changes therein as such Authorized Officer may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).

4. The Amendment No. 2 to Assignment Agreement (the “Assignment Agreement Amendment No. 2”), proposed to be entered into by and between the Authority and the City, in the form on file with the Clerk of this Board and attached hereto as Exhibit “C”, is hereby approved. Each Authorized Officer, acting individually, is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Assignment Agreement Amendment No. 2 in substantially said form, with changes therein as such Authorized Officer may require or approve (such approval to be conclusively evidenced by the execution and delivery thereof).

5. This Board hereby finds and determines that the execution and delivery of the Lease Amendment No. 2, the Sublease Amendment No. 2 and the Assignment Agreement Amendment No. 2 (and the implementation of the provisions thereof) will not, in and of themselves, materially adversely affect the security for the payment of the 2016 Bonds 753
Resolution 2022-XXX August 9, 2022 Page 3 of 3
or the interests and rights of the owners of the 2016 Bonds or the Trustee under the Indenture and the Sublease.

6. The Authorized Officers, the Treasurer and all other officers of Authority, are hereby authorized, jointly and severally, to execute and deliver any and all necessary instruments which they may deem necessary or advisable in order to effectuate the purposes of this Resolution, the Lease Amendment No. 2, the Sublease Amendment No. 2 and the Assignment Agreement Amendment No. 2, and such actions previously taken by such officers are hereby ratified.

ADOPTED by the South Tahoe Joint Powers Financing Authority at a duly noticed regular meeting of the Governing Board held on August 9, 2022, by the following vote:

Yes:

No:

Absent:

Abstain:
___________________________ Date:___________
Devin Middlebrook, Chair
Attest:
____________________________
Susan Blankenship, Authority Secretary
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Tahoe Joint Powers Financing Authority. 754
12463-0016\2688014v2.doc

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

South Tahoe Joint Powers Financing Authority
c/o Richards, Watson & Gershon,
A Professional Corporation
350 South Grand Avenue, 37th Floor
Los Angeles, California 90071
Attention: Lolly Enriquez, Esq.
[SPACE ABOVE FOR RECORDER’S USE ONLY]
This Document is recorded for the benefit of the City of South Lake Tahoe and is exempt from California documentary transfer tax pursuant to Section 11928 of the California Revenue and Taxation Code and from recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.

AMENDMENT NO. 2 TO LEASE
This Amendment No. 2 to Lease (this “Lease Amendment No. 2”), dated as of [August] 1, 2022, is entered into by and between the City of South Lake Tahoe (the “City”), a municipal corporation duly organized and existing under the laws of the State of California, as lessor, and the South Tahoe Joint Powers Financing Authority (the “Authority”), a joint powers authority duly organized and existing pursuant to the laws of the State of California, as lessee.

Reference is hereby made to the (i) Lease, dated as of August 1, 2016 (the “Original Lease”), by and between the City, as lessor, and the Authority, as lessee, and recorded on August 23, 2016 in the Official Records of the County of El Dorado, California (the “Official County Records”), as Document No. 2016-9003921400015 and (ii) Amendment No. 1 to Lease, dated as of March 1, 2018 (the “Lease Amendment No. 1” and together with the Original Lease, the “Lease”), by and between the City and the Authority, recorded on March 1, 2018 in the County Official Records as Document No. 2018-0007460-00. Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Lease.

Recitals
In 2016, the Authority issued $10,055,000 aggregate principal amount of its Refunding Lease Revenue Bonds, 2016 Series A (the “2016 Bonds”), to refund prior Authority bonds.

The 2016 Bonds were issued pursuant to an Indenture, dated as of August 1, 2016 (the “Indenture”), by and between the Authority and the Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).
755
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In connection with 2016 Bonds, there were executed and delivered in addition to the Indenture: (i) the Original Lease with respect to certain real properties owned by the City (collectively, the “Demised Properties”); (ii) a Sublease Agreement, dated as of August 1, 2016 (the “Original Sublease”), by and between the Authority, as sublessor, and the City, as sublessee, with respect the Demised Properties, and recorded on August 23, 2016 in the Official County Records as Document No. 2016-9003921500025; and (iii) an Assignment Agreement, dated as of August 1, 2016 (the “Original Assignment Agreement”), by and between the Authority and the Trustee, pursuant to which the Authority assigned to the Trustee for the benefit of the owners of the 2016 Bonds its rights under the Original Lease and Original Sublease, including its right to receive base rental payments under the Sublease, and recorded on August 23, 2016 in the Official County Records as Document No. 2016-003921600011; and As identified under the Original Lease, the Original Sublease and the Original Assignment Agreement, the Demised Properties include the following (including land and all improvements thereon): (i) 1352 Johnson Boulevard (the “Police Station Property”), (ii) 1180 Rufus Allen Boulevard (the “Recreational Complex Property”), and (iii) 2101 Lake Tahoe Boulevard (the “Fire Station #3 Property”).

The City is permitted to remove or substitute a portion of the Demised Properties under the Lease and the Sublease, upon the satisfaction of the conditions set forth in the Indenture, the Lease and the Sublease.

In 2018 the City and the Authority released the Recreational Complex Property and substituted, in its stead, the following (including land and improvements thereon): (i) 1252 Ski Run Boulevard (the “Fire Station #1 Property”), and (ii) 1740 D Street (the “Public Works Facility Property”) (referred to herein as the “2018 Property Substitution”).

In connection with the 2018 Property Substitution, the following documents were executed: (i) the Lease Amendment No. 1; (ii) Amendment No. 1 to Sublease, dated as of March 1, 2018 (the “Sublease Amendment No. 1” and together with the Original Sublease, the “Sublease”), by and between the Authority, as and the City, recorded on March 1, 2018 in the County Official Records as Document No. 2018-0007461-00; and (iii) Amendment No. 1 to Assignment Agreement, dated as of March 1, 2018 (the “Assignment Agreement Amendment No. 1” and together with the Original Assignment Agreement, the “Assignment Agreement”), by and between the Authority and the Trustee, recorded on March 1, 2018 in the County Official Records as Document No. 2018-0007462-00.

The City and the Authority desire to remove the Police Station Property and the Fire Station #1 Property from the Lease, Sublease and Assignment Agreement (such Removal being referred to herein as the “Property Removal”).

To effect the Property Removal, the following documents will be executed and delivered on the same date as the execution and delivery of this Lease Amendment No. 2: (i) an Amendment No. 2 to Sublease (the “Sublease Amendment No. 2”), by and between the City 756
3 12463-0016\2688014v2.doc
and the Authority, and (ii) an Amendment No. 2 to Assignment Agreement (the “Assignment Agreement Amendment No. 2”), by and between the Authority and the Trustee.

NOW, THEREFORE, THE CITY AND THE AUTHORITY, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES AND AGREEMENTS CONTAINED HEREIN, DO AGREE AS FOLLOWS:

Section 1. City Representations. The City hereby represents that each condition precedent to the execution and delivery of this Lease Amendment No. 2 and the Sublease Amendment No. 2, as set forth in the Lease (including particularly the provisions of Section 20 thereof), the Sublease (including particularly the provisions of Section 19 thereof) and the Indenture (including particularly the provisions of Section 5.07 thereof) has been satisfied. The City has determined that the fair rental value of the Demised Properties, upon the effectiveness of this Lease Amendment No. 2 and the Sublease Amendment No. 2, is at least equal to the remaining Base Rental Payments payable under the Sublease. The City has determined that the execution and delivery of this Lease Amendment No. 2 and the Sublease Amendment No. 2 (and the implementation of the provisions hereof and thereof) will not, in and of themselves, materially adversely affect the security for the payment of the Base Rental Payments, the 2016 Bonds or the interests and rights of the owners of the 2016 Bonds or the Trustee under the Indenture and the Sublease.

Section 2. Amendments to Lease. The Lease is hereby amended as follows:
(a) The definition of “Demised Properties” set forth in Section 1 of the Lease is hereby amended to read in its entirety as follows:
“Demised Properties” means the real property in the City described in Exhibit A of this Lease, and incorporated herein by reference, including all improvements thereon, and known as the following: (i) the property located at 2101 Lake Tahoe Boulevard (known as Fire Station #3 Property), and (ii) the property located at 1740 D Street (known as Public Works Facility Property).
(b) Exhibit A of the Lease is hereby replaced in its entirety with Exhibit A attached to this Lease Amendment No. 2:

Section 3. Release of Police Station Property and the Fire Station #1 Property. The City and the Authority agree and confirm that the Police Station Property and the Fire Station #1 Property is released from the Lease and the Sublease.

Section 4. Lease to Remain in Effect Except as Amended Hereby. Save and except as amended by this Lease Amendment No. 2, the Lease shall remain in full force and effect.

Section 5. Recordation of Documents. The City shall cause this Lease Amendment No. 2, the Sublease Amendment No. 2, and the Assignment Agreement Amendment No. 2 to be recorded in the County Official Records.
757
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Section 6. Miscellaneous Provisions.
(a) This Lease Amendment No. 2 shall be governed by, interpreted under, construed and enforced in accordance with the laws of the State of California. (b) If any provision of this Lease Amendment No. 2 is found to be invalid, or if the application of this Lease Amendment No. 2 to any person or circumstance is disallowed or found to be invalid, the remainder of the provisions of this Lease Amendment No. 2, or the application thereof, to persons or circumstances other than those to which its application was disallowed or found invalid, will not be affected and will remain in full force and effect. (c) This Lease Amendment No. 2 may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts shall together constitute but one and the same.

IN WITNESS WHEREOF, the City and the Authority have caused this Lease Amendment No. 2 to be executed by their duly authorized officers.

CITY OF SOUTH LAKE TAHOE, as lessor
By
Devin Middlebrook
Mayor
ATTEST:

Susan Blankenship, City Clerk

SOUTH TAHOE JOINT POWERS FINANCING
AUTHORITY, as lessee
By
Devin Middlebrook
Chair
ATTEST:

Susan Blankenship, Secretary
758
12463-0016\2688014v2.doc
State of California )
County of El Dorado )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 759
-6-
12463-0016\2688014v2.doc
State of California )
County of El Dorado )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 760
A-1
12463-0016\2688014v2.doc

EXHIBIT A
(Amended and Restated)
Description of Demised Properties

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SOUTH LAKE TAHOE,

COUNTY OF EL DORADO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS (AND INCLUDING ALL IMPROVEMENTS THEREON):

Tract One (1740 D Street - Public Works Facility):

A portion of Lot 21, Tahoe Valley Center Unit No. 2, as shown on the official map thereof filed in the office of the Recorder of the County of El Dorado, State of California on November 21, 1962 in Map Book C, Page 108, being more particularly described as follows:

Beginning at the Northwest corner of said Lot 21, Tahoe Valley Center Unit No. 2; thence North 89°22’46” East, 117.11 feet; thence South 51°38’00” East, 25.28 feet; thence South 00°37’14” East, 304.46 feet; thence South 89°58’39” West, 136.77 feet; thence North 00°37’14” West, 318.94 feet to the point of beginning.

APN: 032-313-35-100
Tract Two (2101 Lake Tahoe Blvd. - Fire Station #3):

All that portion of Section 4, Township 12 North, Range 18 East, M.D.B.&M., more particularly described as follows:

Commencing at the most Westerly corner of the parcel herein described, from which point the West quarter corner of said Section 4, bears North 40°22’ West, 109.0 feet and North 87°56’ West, 561.0 feet; thence leaving said point of beginning, South 40°22’ East, 100.0 feet to an auto axle set on the Northerly boundary of U. S. Highway No. 50; thence along the Northerly boundary of said Highway, North 49°38’ East, 100.00 feet to a 2 inch by 2 inch White Stake; thence leaving said Highway, North 40°22’ West, 100.00 feet to a similar stake; thence South 49°38’ West, 100.0 feet to the point of beginning.

APN: 023-201-40-100
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12463-0016\2687999v2.doc

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

City of South Lake Tahoe
c/o Richards, Watson & Gershon,
A Professional Corporation
350 South Grand Avenue, 37th Floor
Los Angeles, California 90071
Attention: Lolly Enriquez, Esq.
[SPACE ABOVE FOR RECORDER’S USE ONLY]
This Document is recorded for the benefit of the City of South Lake Tahoe and is exempt from California documentary transfer tax pursuant to Section 11928 of the California Revenue and Taxation Code and from recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.

AMENDMENT NO. 2 TO SUBLEASE
This Amendment No. 2 to Sublease (this “Sublease Amendment No. 2”), dated as of [August] 1, 2022, is entered into by and between the South Tahoe Joint Powers Financing Authority (the “Authority”), a joint powers authority duly organized and existing pursuant to the laws of the State of California, as lessor, and the City of South Lake Tahoe (the “City”), a municipal corporation duly organized and existing under the laws of the State of California, as lessee.

Reference is hereby made to: (i) the Sublease Agreement, dated as of August 1, 2016 (the “Original Sublease”), by and between the Authority, as lessor, and the City, as lessee, and recorded on August 23, 2016 in the Official Records of the County of El Dorado, California (the “Official County Records”), as Document No. 2016-9003921500025; and (ii) Amendment No. 1 to Sublease, dated as of March 1, 2018 (the “Sublease Amendment No. 1” and together with the Original Sublease, the “Sublease”), by and between the Authority, as and the City, recorded on March 1, 2018 in the County Official Records as Document No. 2018-0007461-00.

Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Sublease.

Recitals
In 2016, the Authority issued $10,055,000 aggregate principal amount of its Refunding Lease Revenue Bonds, 2016 Series A (the “2016 Bonds”), to refund prior Authority bonds.

The 2016 Bonds were issued pursuant to an Indenture, dated as of August 1, 2016 (the “Indenture”), by and between the Authority and the Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).
762
2 12463-0016\2687999v2.doc
In connection with 2016 Bonds, there were executed and delivered in addition to the Indenture: (i) a Lease Agreement, dated as of August 1, 2016 (the “Original Lease”), by and between the City, as lessor, and the Authority, as lessee, with respect to certain real properties owned by the City (collectively, the “Demised Properties”), and recorded on August 23, 2016 in the Official Records of the County of El Dorado, California (the “Official County Records”) as Document No. 2016-9003921400015; (ii) the Original Sublease with respect the Demised Properties; and (iii) an Assignment Agreement, dated as of August 1, 2016 (the “Original Assignment Agreement”), by and between the Authority and the Trustee, pursuant to which the Authority assigned to the Trustee for the benefit of the owners of the 2016 Bonds its rights under the Original Lease and Original Sublease, including its right to receive base rental payments under the Sublease, and recorded on August 23, 2016 in the Official County Records as Document No. 2016-003921600011; and
As identified under the Original Lease, the Original Sublease and the Original Assignment Agreement, the Demised Properties include the following (including land and all improvements thereon): (i) 1352 Johnson Boulevard (the “Police Station Property”), (ii) 1180 Rufus Allen Boulevard (the “Recreational Complex Property”), and (iii) 2101 Lake Tahoe Boulevard (the “Fire Station #3 Property”).

The City is permitted to remove or substitute a portion of the Demised Properties under the Lease and the Sublease, upon the satisfaction of the conditions set forth in the Indenture, the Lease and the Sublease.

In 2018 the City and the Authority released the Recreational Complex Property and substituted, in its stead, the following (including land and improvements thereon): (i) 1252 Ski Run Boulevard (the “Fire Station #1 Property”), and (ii) 1740 D Street (the “Public Works Facility Property”) (referred to herein as the “2018 Property Substitution”).

In connection with the 2018 Property Substitution, the following documents were executed: (i) Amendment No. 1 to Lease, dated as of March 1, 2018 (the “Lease Amendment No. 1” and together with the Original Lease, the “Lease”), by and between the City and the Authority, recorded on March 1, 2018 in the County Official Records as Document No. 2018- 0007460-00; (ii) the Sublease Amendment No. 1 and (iii) Amendment No. 1 to Assignment Agreement, dated as of March 1, 2018 (the “Assignment Agreement Amendment No. 1” and together with the Original Assignment Agreement, the “Assignment Agreement”), by and between the Authority and the Trustee, recorded on March 1, 2018 in the County Official Records as Document No. 2018-0007462-00.

The City and the Authority desire to remove the Police Station Property and the Fire Station #1 Property from the Lease, Sublease and Assignment Agreement (such Removal being referred to herein as the “Property Removal”).

To effect the Property Removal, the following documents will be executed and delivered on the same date as the execution and delivery of this Sublease Amendment No. 2: (i) an Amendment No. 2 to Lease (the “Lease Amendment No. 2”), by and between the City and the 763
3 12463-0016\2687999v2.doc
Authority, and (ii) an Amendment No. 2 to Assignment Agreement (the “Assignment Agreement Amendment No. 2”), by and between the Authority and the Trustee.

NOW, THEREFORE, THE AUTHORITY AND THE CITY, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES AND AGREEMENTS CONTAINED HEREIN, DO AGREE AS FOLLOWS:

Section 1. City Representations. The City hereby represents that each condition precedent to the execution and delivery of the Lease Amendment No. 2 and the Sublease Amendment No. 2, as set forth in the Lease (including particularly the provisions of Section 20 thereof), the Sublease (including particularly the provisions of Section 19 thereof) and the Indenture (including particularly the provisions of Section 5.07 thereof) has been satisfied. The City has determined that the fair rental value of the Demised Properties, upon the effectiveness of the Lease Amendment No. 2 and the Sublease Amendment No. 2, is at least equal to the remaining Base Rental Payments payable under the Sublease. The City has determined that the execution and delivery of the Lease Amendment No. 2 and the Sublease Amendment No. 2 (and the implementation of the provisions hereof and thereof) will not, in and of themselves, materially adversely affect the security for the payment of the Base Rental Payments, the 2016 Bonds or the interests and rights of the owners of the 2016 Bonds or the Trustee under the Indenture and the Sublease.

Section 2. Amendments to Sublease. The Sublease is hereby amended as follows:
(a) The definition of “Demised Properties” set forth in Section 1 of the Sublease is hereby amended to read in its entirety as follows:
“Demised Properties” means the real property in the City described in Exhibit A of this Sublease, and incorporated herein by reference, including all improvements thereon, and known as the following: (i) the property located at 2101 Lake Tahoe Boulevard (known as Fire Station #3 Property), and (ii) the property located at 1740 D Street (known as Public Works Facility Property). (b) Exhibit A of the Sublease is hereby replaced in its entirety with Exhibit A attached to this Sublease Amendment No. 2:

Section 3. Release of Police Station Property and the Fire Station #1 Property. The City and the Authority agree and confirm that the Police Station Property and the Fire Station #1 Property is released from the Lease and the Sublease.

Section 4. Sublease to Remain in Effect Except as Amended Hereby. Save and except as amended by this Sublease Amendment No. 2, the Sublease shall remain in full force and effect.

Section 5. Recordation of Documents. The City shall cause this Sublease Amendment No. 2, the Lease Amendment No. 2, and the Assignment Agreement Amendment No. 2 to be recorded in the County Official Records.
764
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Section 6. Miscellaneous Provisions.
(a) This Sublease Amendment No. 2 shall be governed by, interpreted under, construed and enforced in accordance with the laws of the State of California. (b) If any provision of this Sublease Amendment No. 2 is found to be invalid, or if the application of this Sublease Amendment No. 2 to any person or circumstance is disallowed or found to be invalid, the remainder of the provisions of this Sublease Amendment No. 2, or the application thereof, to persons or circumstances other than those to which its application was disallowed or found invalid, will not be affected and will remain in full force and effect.
(c) This Sublease Amendment No. 2 may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts shall together constitute but one and the same.

IN WITNESS WHEREOF, the Authority and the City have caused this Sublease Amendment No. 2 to be executed by their duly authorized officers.

SOUTH TAHOE JOINT POWERS FINANCING
AUTHORITY, as lessor
By
Devin Middlebrook
Chair
ATTEST:

Susan Blankenship, Secretary
CITY OF SOUTH LAKE TAHOE, as lessee
By
Devin Middlebrook
Mayor
ATTEST:

Susan Blankenship, City Clerk
765
12463-0016\2687999v2.doc
State of California )
County of El Dorado )
On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 766
-6-
12463-0016\2687999v2.doc
State of California )
County of El Dorado )
On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 767
A-1-
12463-0016\2687999v2.doc

EXHIBIT A
(Amended and Restated)
Description of Demised Properties

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SOUTH LAKE TAHOE,

COUNTY OF EL DORADO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS (AND INCLUDING ALL IMPROVEMENTS THEREON):

Tract One (1740 D Street - Public Works Facility):

A portion of Lot 21, Tahoe Valley Center Unit No. 2, as shown on the official map thereof filed in the office of the Recorder of the County of El Dorado, State of California on November 21, 1962 in Map Book C, Page 108, being more particularly described as follows:

Beginning at the Northwest corner of said Lot 21, Tahoe Valley Center Unit No. 2; thence North 89°22’46” East, 117.11 feet; thence South 51°38’00” East, 25.28 feet; thence South 00°37’14” East, 304.46 feet; thence South 89°58’39” West, 136.77 feet; thence North 00°37’14” West, 318.94 feet to the point of beginning.

APN: 032-313-35-100
Tract Two (2101 Lake Tahoe Blvd. - Fire Station #3):

All that portion of Section 4, Township 12 North, Range 18 East, M.D.B.&M., more particularly described as follows:

Commencing at the most Westerly corner of the parcel herein described, from which point the West quarter corner of said Section 4, bears North 40°22’ West, 109.0 feet and North 87°56’ West, 561.0 feet; thence leaving said point of beginning, South 40°22’ East, 100.0 feet to an auto axle set on the Northerly boundary of U. S. Highway No. 50; thence along the Northerly boundary of said Highway, North 49°38’ East, 100.00 feet to a 2 inch by 2 inch White Stake; thence leaving said Highway, North 40°22’ West, 100.00 feet to a similar stake; thence South 49°38’ West, 100.0 feet to the point of beginning.

APN: 023-201-40-100
768
12463-0016\2688006v2.doc

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

South Tahoe Joint Powers Financing Authority
c/o Richards, Watson & Gershon,
A Professional Corporation
350 South Grand Avenue, 37th Floor
Los Angeles, California 90071
Attention: Lolly Enriquez, Esq.
[SPACE ABOVE FOR RECORDER’S USE ONLY]
This Document is recorded for the benefit of the City of South Lake Tahoe and is exempt from California documentary transfer tax pursuant to Section 11928 of the California Revenue and Taxation Code and from recording fees pursuant to Sections 6103, 27383 and 27388.1of the California Government Code.

AMENDMENT NO. 2 TO ASSIGNMENT AGREEMENT
This Amendment No. 2 to Assignment Agreement (this “Assignment Agreement Amendment No. 2”), dated as of [August] 1, 2022, is entered into by and between the South Tahoe Joint Powers Financing Authority, a joint powers authority, duly organized and existing pursuant to the laws of the State of California (the “Authority”), and The Bank of New York Mellon Trust Company, N.A., a national banking association, duly organized and existing under, and by virtue of the laws of the United States of America, as trustee (the “Trustee”).

Reference is hereby made to the: (i) Assignment Agreement, dated as of August 1, 2016 (the “Original Assignment Agreement”), by and between the Authority and the Trustee, and recorded in the Official Records of the County of El Dorado, California (the “Official County Records”), as Document No. 2016-003921600011 (recorded on August 23, 2016); and (ii) Amendment No. 1 to Assignment Agreement, dated as of March 1, 2018 (the “Assignment Agreement Amendment No. 1” and together with the Original Assignment Agreement, the “Assignment Agreement”), by and between the Authority and the Trustee, recorded on March 1, 2018 in the County Official Records as Document No. 2018-0007462-00.

Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Assignment Agreement.

Recitals
In 2016, the Authority issued $10,055,000 aggregate principal amount of its Refunding Lease Revenue Bonds, 2016 Series A (the “2016 Bonds”), to refund prior Authority bonds. 769
2 12463-0016\2688006v2.doc
The 2016 Bonds were issued pursuant to an Indenture, dated as of August 1, 2016 (the “Indenture”), by and between the Authority and the Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

In connection with 2016 Bonds, there were executed and delivered in addition to the Indenture: (i) a Lease Agreement, dated as of August 1, 2016 (the “Original Lease”), by and between the City, as lessor, and the Authority, as lessee, with respect to certain real properties owned by the City (collectively, the “Demised Properties”), and recorded on August 23, 2016 in the Official Records of the County of El Dorado, California (the “Official County Records”) as Document No. 2016-9003921400015; (ii) a Sublease Agreement, dated as of August 1, 2016 (the “Original Sublease”), by and between the Authority, as sublessor, and the City, as sublessee, with respect the Demised Properties, and recorded on August 23, 2016 in the Official County Records as Document No. 2016-9003921500025; and (iii) the Original Assignment Agreement, pursuant to which the Authority assigned to the Trustee for the benefit of the owners of the 2016 Bonds its rights under the Original Lease and Original Sublease, including its right to receive base rental payments under the Sublease.

As identified under the Original Lease, the Original Sublease and the Original Assignment Agreement, the Demised Properties include the following (including land and all improvements thereon): (i) 1352 Johnson Boulevard (the “Police Station Property”), (ii) 1180 Rufus Allen Boulevard (the “Recreational Complex Property”), and (iii) 2101 Lake Tahoe Boulevard (the “Fire Station #3 Property”).

The City is permitted to remove or substitute a portion of the Demised Properties under the Lease and the Sublease, upon the satisfaction of the conditions set forth in the Indenture, the Lease and the Sublease.

In 2018 the City and the Authority released the Recreational Complex Property and substituted, in its stead, the following (including land and improvements thereon): (i) 1252 Ski Run Boulevard (the “Fire Station #1 Property”), and (ii) 1740 D Street (the “Public Works Facility Property”) (referred to herein as the “2018 Property Substitution”).

In connection with the 2018 Property Substitution, the following documents were executed: (i) Amendment No. 1 to Lease, dated as of March 1, 2018 (the “Lease Amendment No. 1” and together with the Original Lease, the “Lease”), by and between the City and the Authority, recorded on March 1, 2018 in the County Official Records as Document No. 2018- 0007460-00; (ii) Amendment No. 1 to Sublease, dated as of March 1, 2018 (the “Sublease Amendment No. 1” and together with the Original Sublease, the “Sublease”), by and between the Authority, as and the City, recorded on March 1, 2018 in the County Official Records as Document No. 2018-0007461-00; and (iii) the Assignment Agreement Amendment No. 1.

The City and the Authority desire to remove the Police Station Property and the Fire Station #1 Property from the Lease, Sublease and Assignment Agreement (such Removal being referred to herein as the “Property Removal”).
770
3 12463-0016\2688006v2.doc
To effect the Property Removal, the following documents will be executed and delivered on the same date as the execution and delivery of this Assignment Agreement Amendment No. 2: (i) an Amendment No. 2 to Lease (the “Lease Amendment No. 2”), by and between the City and the Authority), and (ii) an Amendment No. 2 to Sublease (the “Sublease Amendment No. 2”), by and between the Authority and the City.

NOW, THEREFORE, THE CITY AND THE AUTHORITY, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES AND AGREEMENTS CONTAINED HEREIN, DO AGREE AS FOLLOWS:

Section 1. Trustee Consent to Sublease Amendment No. 2. For the purpose of Section 5.07 of the Indenture, the Trustee consents to the City’s and the Authority’s execution and delivery of the Sublease Amendment No. 2.

Section 2. Amendment to Assignment Agreement. The Assignment Agreement is hereby amended as follows:
(a) Exhibit A of the Assignment Agreement is hereby amended and restated in its entirety with Exhibit A attached to this Assignment Agreement Amendment No. 2.

Section 3. Assignment Agreement to Remain in Effect Except as Amended Hereby.

Save and except as amended by this Assignment Agreement Amendment No. 2, the Assignment Agreement shall remain in full force and effect.

Section 4. Quitclaim of Any Remaining Authority and Trustee Interest on Released Property. It is hereby acknowledged that, as the result of the Property Removal, the Fire Station #1 Property and the Police Station Property have been released from the Lease and the Sublease. To the extent that the Authority or the Trustee have any remaining right, title and interest to and in the Fire Station #1 Property or the Police Station Property by reason of the Lease, the Sublease, the Indenture, the Assignment Agreement or any other documents executed in connection with the Bonds, the Authority and the Trustee quitclaim such right, title and interest to and in the Fire Station #1 Property and the Police Station Property to the City.

Section 5. Miscellaneous Provisions.
(a) This Assignment Agreement Amendment No. 2 shall be governed by, interpreted under, construed and enforced in accordance with the laws of the State of California.
(b) If any provision of this Assignment Agreement Amendment No. 2 is found to be invalid, or if the application of this Assignment Agreement Amendment No. 2 to any person or circumstance is disallowed or found to be invalid, the remainder of the provisions of this Assignment Agreement Amendment No. 2, or the application thereof, to persons or circumstances other than those to which its application was disallowed or found invalid, will not be affected and will remain in full force and effect. 771
4 12463-0016\2688006v2.doc
(c) This Assignment Agreement Amendment No. 2 may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts shall together constitute but one and the same.

IN WITNESS WHEREOF, the Authority and the Trustee have caused this Agreement to be executed by their duly authorized representatives.

SOUTH TAHOE JOINT POWERS FINANCING

AUTHORITY
By
Devin Middlebrook
Chair

THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as Trustee
By
Print Name:

Title:
772
12463-0016\2688006v2.doc
State of California )
County of Los Angeles)
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 773
-6-
12463-0016\2688006v2.doc
State of California )
County of El Dorado )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 774
12463-0016\2688006v2.doc A-1

EXHIBIT A
(Amended and Restated)
Description of Demised Properties

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SOUTH LAKE TAHOE,

COUNTY OF EL DORADO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS (AND INCLUDING ALL IMPROVEMENTS THEREON):

Tract One (1740 D Street - Public Works Facility):

A portion of Lot 21, Tahoe Valley Center Unit No. 2, as shown on the official map thereof filed in the office of the Recorder of the County of El Dorado, State of California on November 21, 1962 in Map Book C, Page 108, being more particularly described as follows:

Beginning at the Northwest corner of said Lot 21, Tahoe Valley Center Unit No. 2; thence North 89°22’46” East, 117.11 feet; thence South 51°38’00” East, 25.28 feet; thence South 00°37’14” East, 304.46 feet; thence South 89°58’39” West, 136.77 feet; thence North 00°37’14” West, 318.94 feet to the point of beginning.

APN: 032-313-35-100
Tract Two (2101 Lake Tahoe Blvd. - Fire Station #3):

All that portion of Section 4, Township 12 North, Range 18 East, M.D.B.&M., more particularly described as follows:

Commencing at the most Westerly corner of the parcel herein described, from which point the West quarter corner of said Section 4, bears North 40°22’ West, 109.0 feet and North 87°56’ West, 561.0 feet; thence leaving said point of beginning, South 40°22’ East, 100.0 feet to an auto axle set on the Northerly boundary of U. S. Highway No. 50; thence along the Northerly boundary of said Highway, North 49°38’ East, 100.00 feet to a 2 inch by 2 inch White Stake; thence leaving said Highway, North 40°22’ West, 100.00 feet to a similar stake; thence South 49°38’ West, 100.0 feet to the point of beginning.

APN: 023-201-40-100
775
12463-0016\2688006v2.doc

CERTIFICATE OF ACCEPTANCE
(California Government Code Section 27281)
This is to certify that the interest in real property conveyed by quitclaim to the City of South Lake Tahoe (the “City”) by that certain Amendment No. 2 to Assignment Agreement, dated as of [August] 1, 2022, by and between the South Tahoe Joint Powers Financing Authority and The Bank of New York Mellon Trust Company, N.A., as trustee, is hereby accepted by the undersigned officer on behalf of the City, pursuant to the authority conferred by Resolution No. 2022-__ of the City Council of the City, adopted on __, 2022, and the City consents to recordation thereof by its duly authorized officer.

Dated: [August] 1, 2022

CITY OF SOUTH LAKE TAHOE
By:

Devin Middlebrook
Mayor
776
12463-0016\2688006v2.doc
State of California )
County of El Dorado )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared , who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 777
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 19
Agenda Item: Citizen Appointments to Commissions and Boards – Building & Housing Board of Appeals
Executive Summary: The Building Board of Appeals consists of at least three but no more than five members. There are two vacancies on this Board. An open solicitation for applications for appointment to this Board has been posted to the City's website since February 2022. One application was received responsive to the solicitation for appointment to the Board from Seth Howard. The current Board has three members, meeting the quorum threshold to hold a meeting. City Council may make appointment to the Board or wait for additional applications to be submitted in January 2023 during the next solicitation period. If an appointment is made, the term of office will expire 2/2024.

Requested Action / Suggested Motions: City Council may either: 1) Pass a Motion appointing Seth Howard to serve a 19-month term (expiring 2/2024) to the Building Board of Appeals; or, 2) Decline to fill the vacancy until additional applications are received.

Responsible Staff Member: Susan Blankenship, City Clerk Responsible Staff Member: Susan Blankenship, City Clerk Reviewed and Approved By:

Heather Stroud, City Attorney
Attachments:
01-Staff Report - Citizen Commissions and Boards.docx
02-BBOA Howard (Redacted).pdf
778
Council Agenda Report August 9, 2022 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: Citizen Appointments to Commissions and Boards – Building & Housing Board of Appeals
Location: Citywide
Responsible Staff Member: Susan Blankenship, City Clerk (530) 542-6005 Background: The Building Board of Appeals consists of at least three but no more than five members. There are two vacancies on this Board. An open solicitation for applications for appointment to this Board has been posted to the City's website since February 2022.

Issue and Discussion: One application was received responsive to the solicitation for appointment to the Board from Seth Howard.

The current Board has three members, meeting the quorum threshold to hold a meeting. City Council may make appointment to the Board or wait for additional applications to be submitted in January 2023 during the next solicitation period.

If an appointment is made, the term of office will expire 2/2024.

Financial Implications: Costs associated with staff support of the individual commissions/boards have been budgeted for within the department who oversees the commission.

Environmental Considerations: Appointments are exempt from CEQA under State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). Section 15061(b)(3) of the CEQA Guidelines states that an activity is covered by the commonsense exemption that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.

Policy Implications: The solicitation and appointment of citizens to various boards and commissions meets the requirements set forth in Resolution 2022-011 and conforms to City Council Protocols.
779
780
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 20
Agenda Item: Road Rehabilitation Program Update
Executive Summary: The Public Works Department will provide an update on the City paving program.

The update will address the 2022 Road Rehabilitation Project, an overview of the City’s roadway network, how roadway conditions are rated, the overall condition of City roadways, how roads are prioritized for paving, utility coordination, how the paving program is funded and next steps in project prioritization.

Requested Action / Suggested Motions: Receive and File.

Responsible Staff Member: Mark Frisina, Engineer /Inspector and Randy Carlson, Associate Civil Engineer
Responsible Staff Member: Mark Frisina, Engineer /Inspector - (530) 307-9607 Randy Carlson, Associate Civil Engineer - (530) 542-6033 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff_Report_-_Road_Rehabilitation_Program_Update.docx 02-Presentation - Road Rehabilitation Program.pptx
781
Council Agenda Report August 9, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: Road Rehabilitation Program Update
Location: Citywide
Responsible Staff Member: Mark Frisina (530) 307-9607
Randy Carlson (530) 542-6033
Background: The City currently owns and maintains approximately 257 lane miles of streets. The average Pavement Condition Index (PCI) of City maintained streets is 57, which is rated on a scale from 1 to 100. This represents the lower range of fair condition roadways.

Overall, the city has approximately 10% of its roads in a failed condition, 37% in poor condition, 23% in fair condition, and 30% in good or excellent condition.

Over the last five years, the Public Works Department has developed a paving program and bid construction contracts for paving each year. To date, the program is working satisfactorily. Public Works has fully reconstructed 7.84 lane miles and overlayed 11.75 lane miles of roadways. This represents approximately 7.6% of the City-maintained roadway system. These projects have resulted in the overall network PCI increasing by approximately one percentage point each year.

Issue and Discussion: The Public Works Department is providing an update on the City paving program. The update will address the 2022 Road Rehabilitation Project, an overview of the City’s roadway network, how roadway conditions are rated, the overall condition of City roadways, how roads are prioritized for paving, utility coordination, how the paving program is funded and next steps in project prioritization.

In the past, the Public Works Department has been utilizing a worst-first treatment plan for prioritizing which roads get paved first. This plan has boosted the overall condition of the City’s roadways and increased the condition of some of the most highly traveled roads within the City.

The City is now beginning to incorporate lower-cost maintenance treatments for the overall paving program, such as fog seals, slurry seals, chip seals, and micro-overlays. Each construction season, the Public Works Department will begin issuing two separate construction contracts. One for a roadway maintenance construction contract and one for a paving project. Public Works is also advertising a request for proposals that will engage a consultant to update the existing paving program, given the number of requests for prioritization of the City’s street network. A new paving plan is expected to be brought to City Council for approval in early 2023.

Financial Implications: There are no financial implications with this presentation. Future financial implications from the Road Rehabilitation Program will be funded with Measure S, gas 782
Council Agenda Report August 9, 2022 Page 2 of 2
taxes, and utility in-lieu reimbursement agreements, which will be brought forth with future City Council items.

Environmental Considerations: This presentation is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2).

Policy Implications: This presentation is consistent with the City’s Strategic Plan 2021- 2026. It aligns with goal 1.4 Transportation, by planning the rehabilitation of City-owned streets.

The presentation is also consistent with goal 5.3 Infrastructure and Maintenance. This presentation will review how the City plans to fund and maintain City-owned streets. 783
Road
Rehabilitation
Program
AUGUST 9, 2022
784
This Year’s Project
• West Coast Paving
• Work began 8/8
• 3.59 lane miles
• $2,357,000
• 4” mill & overlay
785
Paving Funds Set Aside
• Public Works has set aside
$1.2M worth of paving funds (in
lieu funds) so we can include
additional paving within other
City projects.
• This creates economy of scale
for the projects, stretches grant
dollars, and results in less
disturbance to the
neighborhoods.
786
General Roadway Information
Roadway Classification Lane Miles Example Roadways
Arterial 16.5 Pioneer Trail, Lake Tahoe
Blvd, Al Tahoe
Collectors 41.6 Tahoe Keys, Glenwood,
Johnson, Lakeview, 3rd
Residential 196.9
Total 256.7
257 lane miles of roadways
$180-200 million replacement cost
787
General Roadway Information
You could drive all
the way to Santa
Cruz on the lane
miles of roadways
that the City owns
and maintains
788
How do we Measure Pavement
Condition?
Excellent
Good
Fair
Poor
Failed
Preventative
Maintenance
100
70 50
25 0
Thin Overlays
Thick Overlays
Full Reconstruction
Pavement Condition Index (PCI):

PCI measures pavement
conditions on a numerical scale
from 0 to 100. The PCI rating
gives an indication of pavement
structural integrity and
operational condition.
789
Condition of City Roads
Good or
Excellent 30%
Fair 23%
Poor 37%
Failed
10%
47% of our roads need
Major structural repair
Rehab Maintenance
790
How do Our Roads Compare?
0 10
20 30
40 50
60 70
80 90
City of South
Lake Tahoe
El Dorado
County
Placer County Town of
Truckee
Washoe County California
Agency Reported Network PCIs
We are lagging behind most of our neighbors. The Town of Truckee has the best roads in the region. This is largely due to multiple sales taxes and parcel taxes that are allocated to road and trail maintenance and repair.

PCI
791
Are Our Roads Getting Better?
51 52
53 54
55 56
57 58
2018 2019 2020 2021 2022*
Average PCI
*PCI after completion of the 2022 Road Rehabilitation Project Yes!
792
Why They’re Getting Better

1. Steady funding from taxes

2. Innovative utility reimbursement agreements brought by staff provide even more funding

3. 7.84 lane miles fully reconstructed & 11.75 lane miles overlayed in the last 5 years

4. Coordination with utility work
Measure S is the biggest
funding source, which
contributes $2.5M annually.

5.3 lane miles repaved since
inception
Gas Tax passed by California
voters in 2017 contributes
$533k annually
Southwest Gas has
Contributed approximately
$3.19M over the previous
3 years
STPUD will be contributing
approximately $379K this
fall and likely similar
amounts in the coming
years
793
Pavement Rehab vs Maintenance
Slurry Seal
Chip Seal
Thin Overlay
Thick Overlay
$80-100/SY Reconstruction
$45/SY
$28/SY
$6/SY
100
70 50
25 0
PCI
Time (Years)
57 PCI
794
Pavement Maintenance
Pothole patching and minor paving
can be done in-house utilizing the
new zipper, roller, & paving machine
that were recently approved for
purchase with Measure S funds.
795
• The Five-Year Plan
will be updated in
2023 with the new
Prioritization Plan.
• Five-Year Plan will be
subject to change
based on plan
update and
comments received.
796
Thank you
797
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 21
Agenda Item: Purchase Order with SRM-Kodiak America, LLC for Snow Blower Repair Executive Summary: The City of South Lake Tahoe has six Snow Blowers. During the winter of 2022-23, one of the Snow Blowers broke down and started smoking and was removed from operations.

Staff has attempted to repair the blower, but the entire engine requires to be re-built. The equipment must be shipped to the factory for the necessary repairs. This is one of the largest snow blowers in operation and the repairs are essential to the snow operations.

Requested Action / Suggested Motions: Pass a Resolution appropriating $93,915.51, plus a 10% contingency for $9,391.50, from General Fund Undesignated Excess Reserves and authorizing, approving the sole source request, and authorizing and directing the City Manager to execute a Purchase Order with SRM-Kodiak, LLC for the repair of the Snow Blower.

Responsible Staff Members: Anush Nejad, Director of Public Works and Phil Harwood, Fleet Supervisor Responsible Staff Member: Anush Nejad, Director of Public Works (530) 542-6031 Phil Harwood, Fleet Supervisor (530) 542-6086
Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Kodiak Repair.docx
02 - Kodiak Quote.pdf
03 - Sole Source Request.pdf
04-Resolution for Kodiak Repair.docx
798
Council Agenda Report- August 9, 2022 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: Appropriation of $93,916.51, plus 10% contingency for $9,391.65, from General Fund Undesignated Excess Reserves and Approval of Purchase Order with SRM-Kodiak America, LLC for Snow Blower Repair
Location: Citywide
Responsible Staff Member: Anush Nejad, Director of Public Work – (530) 542-6031 Phil Harwood, Fleet Supervisor – (530) 542-6086
Background: The City of South Lake Tahoe has six Snow Blowers. During the winter of 2022-23, one of the Snow Blowers broke down and started smoking and eventually was removed from operations. Staff has attempted to repair the blower, but the entire engine requires to be re-built.

The manufacturer of the equipment, SRM-Kodiak, inspected the vehicle and they require the equipment to be shipped to the factory for the necessary repairs, which involves a complete engine re-built.

Issue and Discussion: This damaged Snow Blower is one of the largest pieces of equipment in the Streets inventory and the proposed repairs are essential to the snow operations. The engine requires complete re-built for optimal operation and compliance with Air Quality regulations. SRM-Kodiak, as the manufacturer, is the only vendor that can repair the equipment.

Financial Implications: Staff has received a quote for $93,916.51 for the necessary repairs.

See Attachment 2. Staff is also requesting a 10% contingency in the amount of $9,391.65, for a total of $103,308.16. This repair will be performed by SRM-Kodiak America, LLC. Staff is requesting via the attached Resolution General Fund Undesignated Excess Reserves appropriations of $103,310 into Snow Removal Repair and Maintenance Outside account 207- 03610-43025.

Environmental Considerations: This repair work is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies) Policy Implications: The repair of the Snow Blower is essential in Snow Operations. 799
800
801
Resolution 2022-XXX August 9, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
August 9, 2022
Appropriating $103,310 from General Fund Undesignated Excess Reserves and Authorizing the City Manager to execute a Sole Source Purchase Order with SRM-Kodiak America, LLC for the Snow Blower Repair for $93,916.51, plus a 10% contingency for $9,391.65

BACKGROUND
A. During the Winter of 2022-2023, one of the City’s Snow Blowers, Kodiak Unit Number 5064, Manufactured in 2008, broke down with extensive damage to the engine and was removed from operations.

B. City staff has attempted to repair the unit with the assistance of the manufacturer, but the engine must be rebuilt entirely.

C. SRM-Kodiak America, LLC, the manufacturer of the equipment, has inspected the vehicle and has determined that the best option is to transport the vehicle to their facilities for the necessary repairs.

D. Repair costs will be funded through funds transfer from the General Fund Undesignated Excess Reserves Outside account.

E. The Blower is one of the largest pieces of equipment for snow operations and is essential for winter snow operations and must be repaired and returned to the fleet prior to this Winter Season.

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

1. Approves the sole source request for snow blower repair with SRM-Kodiak American, LLC.

2. Authorizes and directs the City Manager to sign a Purchase Order with SRM-Kodiak American, LLC in the amount of $93,916.51, plus a 10% contingency in the amount of $9,391.65.

3. Appropriates $103,310 from General Fund Undesignated Excess into Snow Removal Repair and Maintenance Outside account 207-03610-43025 for the repair of the snow blower.

Adopted by the City of South Lake Tahoe City Council on August 9, 2022 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Devin Middlebrook, Mayor
Attest:
________________________
802
Resolution 2022-XXX August 9, 2022 Page 2 of 2
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.
803
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 22
Agenda Item: Agreement with California Governor's Office of Emergency Services for Use of a Type VI Fire Engine
Executive Summary: The Fire Department is looking to replace current Squad 3, a 2008 Ford F350, with a new Type VI Engine from Cal OES which would operate as a squad and small pumping engine.

Cal OES offers an assortment of apparatus around the state to local government agencies. The vehicle comes equipped with a compliment of auto extrication tools, low angle rope rescue equipment, hose and appliances. The vehicle would then be available for strike team response much like our current Type I and Type III engines. The Type VI engine would improve our wildland fire response capabilities. The current squad carries rescue equipment but has no pumping capabilities. The Cal OES Type VI is equipped with a 500 gallons per minute pump and carries 280 gallons of water as well as 20 gallons of foam.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Fire Chief to execute a Temporary Transfer Agreement with the California Governor's Office of Emergency Services (Cal OES) for a Type VI Engine.

Responsible Staff Member: Jim Drennan, Interim Fire Chief Responsible Staff Member: Jim Drennan, Interim Fire Chief 530-542-6152 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Acceptance of Type VI Vehicle from Cal OES.docx 02 - Cal OES Temporary Transfer Agreement Type VI Engine 03 - Type VI photo.jpg
04 - Type VI Wildland for Cal OES Ford Drawing.pdf
804
Council Agenda Report- August 9, 2022 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9th, 2022
Title: Acceptance of Type VI Engine from Cal OES
Location: Fire Department
Responsible Staff Member: Jim Drennan, Interim Fire Chief (530) 542-6152 Background: The California Governor’s Office of Emergency Services (Cal OES) manages a statewide fire and rescue program, providing apparatus on loan to local fire departments for use in their districts/cities, while requiring those departments to staff vehicles for the state when needed.

SLTFR currently maintains a light duty Squad assigned to station 3. It is our intention to replace this vehicle with a Type VI Engine from Cal OES.

Issue and Discussion: The Fire Department is looking to replace current Squad 3, a 2008 Ford F350, with a new Type VI Engine from Cal OES which would operate as a Squad and small pumping engine. OES offers an assortment of apparatus around the state to local government agencies.

The vehicle comes equipped with a compliment of auto extrication tools, low angle rope rescue equipment, hose and appliances. The vehicle would then be available for strike team response much like our current Type I and Type III engines. The Type VI engine would improve our wildland fire response capabilities. The current squad carries rescue equipment but has no pumping capabilities. The OES Type VI is equipped with a 500 gpm pump and carries 280 gallons of water as well as 20 gallons of foam.

Financial Implications: The vehicle is offered by Cal OES at no purchase cost to the City or Fire Department. We would not be purchasing the vehicle. There is a requirement to show proof of insurance so that in the event of an accident the vehicle is covered. In addition to this, the City would agree to all maintenance costs and light repairs; however, in the event of a mechanical failure or warranty issue then Cal OES would cover the cost. The vehicle is valued at $215,599. The equipment provided with the vehicle is valued at $41,826.

Environmental Considerations: This purchase is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies) Policy Implications: The Fire Department would agree to staff the Type VI for an out of county request by OES for strike teams. In the event we have already responded an engine out of county we would not necessarily be required to send the type VI because it would adversely affect the daily staffing of the fire department.
805

GAVIN NEWSOM

GOVERNOR
MARK S. GHILARDUCCI

DIRECTOR
3650 SCHRIEVER AVENUE  MATHER, CA 95655

FIRE AND RESCUE DIVISION
PHONE: (916) 845-8711  FAX: (916) 845-8396
Date
[INSERT NAME OF FIRE CHIEF], Fire Chief
[ADDRESS]
[City], CA, [Zip Code]
Dear Chief [INSERT NAME FO FIRE CHIEF]
You will find enclosed two copies of Assignment of Equipment Form, and Agreement for Temporary Transfer of Vehicular Equipment covering the transfer of Cal OES Fire Engine Number: [INSERT FIRE ENGINE NUMBER] to the [INSERT FIRE AGENCY]. The agreement is effective [INSERT DATE].

Please have the authorized official sign both copies of the above-mentioned documents and return one original set to our office. Cal OES cannot transfer the fire engine to your agency until this signed agreement is returned.

Cal OES must also be furnished with a Certificate of Insurance, or a letter certifying selfinsurance in the amounts required, in accordance with Paragraph 11 of the Agreement for Temporary Transfer of Vehicular Equipment.

If you have any questions regarding this transfer, please feel free to contact our office.

Sincerely,
BRIAN S. MARSHALL
State Fire and Rescue Chief
BSM/ro-b
Enclosures
Cc: [INSERT NAME], Region [INSERT REGION] Fire and Rescue Coordinator [INSERT NAME] Operational Area Coordinator
[INSERT NAME], Cal OES Fire and Rescue Deputy Chief, North or South Operations [INSERT NAME], Cal OES Fire and Rescue Assistant Chief
[INSERT NAME], Cal OES fire and Rescue Assistant Chief
806
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
1 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine

AGREEMENT FOR TEMPORARY TRANSFER OF

VEHICULAR EQUIPMENT-TYPE VI FIRE ENGINE
THIS AGREEMENT, entered into this [INSERT DATE], by and between the STATE OF CALIFORNIA acting by and between its duly appointed, qualified Director of the Governor’s Office of Emergency Services (Cal OES), hereinafter called the "STATE," and the [INSERT NAME OF FIRE AGENCY], acting by and through its duly appointed, qualified and acting officers, hereinafter called "TRANSFEREE",
W I T N E S S E T H:

IT IS HEREBY MUTUALLY AGREED between the parties hereto as follows:

1. The STATE hereby transfers possession to TRANSFEREE and TRANSFEREE hereby accepts possession from STATE of the fire engine and equipment listed on the attached Exhibit "A" which is by this reference made a part hereof, for the period commencing [INSERT DATE] through [INSERT DATE], for the following all-hazard events, emergency incidents, civil defense, and disaster purposes, namely:

Mutual aid, multiple alarm events and emergency incidents, emergency incidents threatening properties vital to national defense or important military installations, parades and displays, training of regular, volunteer and auxiliary firefighters and temporary standby for assignee's regular fire engine and the regular fire engines of other fire departments while out of service for repairs. a. Vehicle Description: 2020 HME/Ahrens-Fox Type 6 Wildland Fire Engine Vehicle Designation: [INSERT VEHICLE DESIGNATOR]
Vehicle License Number: [INSERT LICENSE NUMBER]
Vehicle Identification Number: [INSERT VIN]
Value of Vehicle: $215,599.00
Value of Hose and Appliances: $41,826.00
b. Equipment inventories (Exhibit "A") may by mutual concurrence of the STATE and TRANSFEREE be changed during the term of this agreement, utilizing property accountability procedures established or approved by the STATE.

A. Transfer of Possession
The following outlines the steps required to complete the transfer of the fire engine from the STATE to the TRANSFEREE:
a. The STATE shall send two copies of the Assignment of Equipment Form and Agreement for Temporary Transfer to the TRANSFEREE for signatures. b. The TRANSFEREE shall obtain the necessary signatures from the Fire Chief. c. The TRANSFEREE shall send the completed Assignment of Equipment Form and Agreement for Temporary Transfer forms back to the STATE. d. The STATE shall then contact the TRANSFEREE to schedule a date for the 807
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
2 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine transfer to take place.
e. The TRANSFEREE shall travel to the Cal OES Fire and Rescue Fleet Services Division, located at:
3791 Bradview Drive
Sacramento, California 95827
f. TRANSFEREE shall be responsible for all travel expenses (to and from) including, vehicle, fuel, food, and lodging.
g. The STATE shall provide the TRANSFEREE with a comprehensive training session specific to the operation and maintenance of the fire engine. h. TRANSFEREE shall notify the STATE and the appropriate CAL OES Fire and Rescue Region Assistance Chief(s), Operational Area and Region Dispatch centers of the fire engine assignment and entering the fire engine information into the resource ordering system of record.

The following outlines the steps required to complete the return of the fire engine from the TRANSFEREE to the STATE:
a. This section does not apply to the return of the fire engine from the TRANSFEREE to the STATE when a new or replacement fire engine is assigned by the STATE to the TRANSFEREE.
b. The TRANSFEREE shall notify the STATE of the intent to return the fire engine to the STATE.
c. The STATE shall coordinate a pre-inspection to be performed on the fire engine to determine the condition of the fire engine and equipment inventory of equipment. This pre-inspection shall be performed by the Cal OES Fire and Region Division Assistance Chief.
d. The TRANSFEREE shall return the fire engine to the Cal OES Fire and Rescue Fleet Services Division, located at:
3791 Bradview Drive
Sacramento, California 95827
e. TRANSFEREE shall be responsible for all travel expenses (to and from) including, vehicle, fuel, food, and lodging.
f. The STATE shall preform a final inspection on the fire engine and the equipment inventory.

B. Housing, Maintenance, Repair and Replacement
During the term of this transfer, TRANSFEREE agrees to adequately house in an enclosed secure structure, staff, operate, maintain and repair (consistent with section 2 b.) said fire engine and equipment (hereinafter collectively referred to as the ”fire engine" except where it is desired to refer to equipment alone, in which case the term "equipment" will be used) at its sole cost and expense, save as otherwise expressly provided in this agreement. Fire engine shall be housed on property of the TRANSFEREE in a manner to provide reasonable protection against inclement weather, sabotage, theft or malicious damage. Fire engine shall be maintained in accordance with manufacturer’s recommendations, and in such condition that it is available for immediate emergency use.

Maintenance shall include care of hose, batteries, tires, appliances, lubrication and fuel, general cleaning and polishing, minor body repairs and periodic 808
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
3 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine testing. Repairs shall include, without being limited to, motor tune-ups, pump repairs, transmission, differential and all running gears, brake and exhaust systems, cooling devices including radiator, pump packing, equipment assigned to apparatus and so forth.
a. Repairs up to and including $100.00 for each individual item of repair shall be the responsibility of TRANSFEREE.
b. Repairs exceeding $100.00 for each individual item of repair shall be the responsibility of STATE; however, a $100.00 deductible shall apply, unless in the judgment of the STATE the repairs results from misuse or negligence on the part of TRANSFEREE in the maintenance or use of the fire engine, in which event the cost of each such item of repair above $100.00 shall also be the responsibility of TRANSFEREE. In no event shall TRANSFEREE arrange for repairs costing above $100.00 for any item of repair, whether it deems the same to be the responsibility of STATE or TRANSFEREE, without first obtaining authorization in writing from STATE.
c. Notwithstanding the foregoing, replacement of hose, batteries and tires shall be the responsibility of STATE, save to the extent STATE deems damage thereto to be the result of negligence or misuse on the part of TRANSFEREE, in which event TRANSFEREE will bear such portion of the replacement cost thereof as the STATE deems equitable. Procurement of tires, hose and batteries is subject to State fiscal policies and procedures, and written approval must be obtained by STATE prior to procurement. d. Maintenance and repairs must be requested and authorized pursuant to Cal OES, Fire and Rescue Division Operations Bulletin # 18, which is here by incorporated into this agreement by reference.
e. Repair or replacement of the fire engine transferred hereunder which is consumed, lost, stolen, damaged or destroyed during mutual aid operations when STATE has dispatched or directed the dispatch of said apparatus through Regional or Operational Area Fire and Rescue Coordinators, or when STATE has reassigned said apparatus pursuant to the provisions of paragraph 10 of this agreement, shall be the responsibility of STATE However, in the event that any such loss or damage is due to the negligence of TRANSFEREE, under such circumstances, TRANSFEREE shall be liable therefore to the extent that the STATE deems equitable.

TRANSFEREE agrees that it will assume responsibility in full for the repair or replacement of equipment which has been consumed, lost, stolen, damaged or destroyed in operations other than referred to in this paragraph.

3. Inspection of Apparatus
TRANSFEREE agrees that representatives of STATE and other authorized State personnel may inspect the fire engine at any time, with or without advance notice.
809
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
4 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine

4. Staffing
Reasonable and continual training shall be carried on so that trained personnel shall at all times be available to staff and operate said fire engine. The TRANSFEREE shall provide personnel to staff the transferred fire engine per FIRESCOPE ICS standards with the expectation of staffing with three trained fire personnel for out of operational area assignments.

Per the California Fire Assistance Agreement, personnel under this Agreement are expected to be available for a minimum of seven (7) days (elapsed time) excluding travel, before needing replacement, regardless of the number of assignments from original dispatch. When local government personnel, staffing the fire engine, are committed to extended assignments there may be a need to replace or rotate personnel. Personnel rotation will follow the direction outlined in the California Fire Assistance Agreement when assigned to an incident within California. Crew rotation for incidents outside of California shall be consistent with the appropriate forest’s agencies policy and coordinated by STATE.

5. Personal Protective Equipment (PPE) and Specialized Equipment In addition to providing the standard complement of firefighting PPE, it shall be the TRANSFEREE’S responsibility to provide its personnel with all other PPE that may be required by NFPA 1901, other NFPA Standards, and 8 CA ADC § 3401 et seq. This shall include, but not be limited to, one Traffic Vest (ANSI / ISEA 207) for each seating position. In addition, we recommend chainsaw chaps be provided.

6. Training
Personnel assigned shall meet wildland fire and ICS standards established in the California Incident Command Certification System (CICCS) (January 2014 version) or NWCG 310-1 (October 2020 version). Personnel staffing STATE Type VI Fire Engines shall include the following qualifications: Company Officer (Engine Boss/ENGB), Apparatus Operator (engineer), and Firefighter (FFT1 or FFT2).

TRANSFEREE agrees to participate in an off-road train-the-trainer course and to adopt an off-road training program for their respective agencies.

7. Dispatching
All movement of the fire engine shall be handled through the official dispatching channels of TRANSFEREE. TRANSFEREE dispatchers will recognize and act on all official requests for movement of the fire engine in conformance with the Fire and Rescue Annex (California Fire and Rescue Mutual Aid System) to the State Emergency Plan and its subsequent revisions. STATE reserves the right to dispatch, direct the dispatch of, or temporarily reassign the said apparatus and equipment whenever, in the opinion of the Director of the Governor’s Office of Emergency Services, their representatives, or Operational Area and Regional Fire 810
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
5 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine and Rescue Coordinators, such equipment and apparatus is essential to the protection of life and property in another jurisdiction or in the best interest of the STATE.

8. Mutual Aid Response
Procedures for mutual aid response shall be in accordance with California Fire Service and Rescue Emergency Mutual Aid Plan.

9. Reimbursable Response
Reimbursement for mutual aid may be provided pursuant to a governor’s disaster proclamation or when conditions warrant invoking the California Fire Assistance Agreement, the State of Nevada Cooperative Agreement, the Emergency Management Assistance Compact, or the Interstate Compact as appropriate. There is no other existing provision for mutual aid reimbursement.

10. Temporary Use
TRANSFEREE shall be permitted to use the fire engine for temporary cover of fire stations when emergency conditions warrant, or when regular fire engine is out of service for repairs. In either case, the TRANSFEREE shall immediately notify the Operational Area Dispatch Center. The TRANSFEREE further agrees that Cover-in or Standby of the fire engine exceeding 90 days is at the discretion of the STATE.

11. Temporary Transfer
a. A transfer of the fire engine or any portion thereof by TRANSFEREE for any period not exceeding seven consecutive days within a given Operational Area may be made with the consent of the Operational Area Fire and Rescue Coordinator and the STATE, providing that at the time such fire engine is received, such Temporary Transferee furnish TRANSFEREE and STATE a letter to the effect that Temporary Transferee assumes all obligations and criteria of TRANSFEREE with respect to such fire engine under this agreement during the period of transfer, including insurance coverage in accordance with Paragraph 13 or 14, as appropriate, and a copy of this Agreement is provided to the Temporary Transferee. Any transfer by TRANSFEREE for a period of more than seven consecutive days shall be subject to authorization by the STATE and execution of an “Agreement for the Temporary Transfer of Vehicular Equipment”, with the agency requesting the transfer.
b. Whenever fire engine is transferred in accordance with the provisions of paragraph 11.a, regular TRANSFEREE shall be relieved of its obligations under this agreement during such period of transfer.
811
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
6 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine c. Complete a written Temporary Cal OES Fire Engine Transfer Record, Exhibit “B”. The TRANSFEREE will retain one copy, the Temporary Transferee will retain one copy, and one copy will be forwarded to the STATE.

12. Reports and Records
TRANSFEREE shall maintain daily and monthly reports on the details of fire engine Use on OES F-101 Form. A Smoke Opacity Test, Pump Test, and Hose Test, and Ladder Test shall be completed annually. Written results of all tests and reports shall be forwarded to the STATE, by the end of the calendar year. A recent copy of the tests and reports shall be maintained in the vehicle logbook.

13. Report of Accidents
TRANSFEREE shall immediately notify STATE following any and all accidents involving this fire engine. It shall be the responsibility of TRANSFEREE to fill out State Form 270, "Report of Automobile Accident," and file the report with the STATE. A copy of this report shall be retained by the TRANSFEREE and the original and four copies forwarded to the STATE.

14. Insurance Protection (Non- State Agencies)
a. TRANSFEREE agrees forthwith to furnish evidence of insurance protecting the legal liability of the TRANSFEREE and the STATE for liability and/or property damage with a combined single limit of 1,000,000.00 per occurrence, by means of a Certificate of Insurance naming State of California as Additional Insured. Said certificate shall contain an agreement by the insurance company that it will not cancel said policy without 15 days prior written notice to the STATE and that the STATE is not liable for the payment of any premiums or assessments thereon. Said certificate must include the description of the fire engine including VIN, state license number and fire engine number.
b. In the event the TRANSFEREE is self-insured, TRANSFEREE in lieu of a certificate of insurance shall furnish the STATE a written statement of such fact. In such event TRANSFEREE agrees to hold the STATE harmless from any personal injury or property damage claims arising out of its maintenance, use or operation of the fire engine under the terms of this agreement.
c. Physical damage insurance, including collision coverage and comprehensive coverage, shall be obtained. The STATE will be named as a loss payee. The description of the vehicle and the necessary amount of insurance required is outlined in attached Exhibit "C" which is by this reference made a part hereof.
812
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
7 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine

15. Insurance Protection (State Agencies)
Any insurance necessary for coverage of the fire engine shall be the sole responsibility of the department having custody of the vehicle. TRANSFEREE agrees to report apparatus as being under its control to the Insurance Officer, Department of General Services.

16. Termination of Agreement
a. Either party may terminate this agreement upon 14 days written notice to other party, or TRANSFEREE may relinquish or STATE may repossess any portion of the fire engine upon like notice to the other party, except that STATE may repossess any portion thereof without written notice whenever it deems the same is not being maintained in accordance with this agreement.
b. Upon the termination of this agreement, TRANSFEREE agrees to return said fire engine in the same condition as received, reasonable wear and tear excepted.
c. As inventory changes occur, or items of equipment are replaced, deleted or added by the STATE or replaced by TRANSFEREE, it is mutually agreed that no amendment to this agreement need be made at the time of the change; provided however, at the termination of this agreement a complete reconciliation of all equipment will be made. TRANSFEREE further agrees that all replacements for fire engine or equipment will be made with identical or substantially like items as approved by the STATE. d. Nothing in this agreement shall be construed to create a new property interest or right of action for the TRANSFEREE.

17. Unauthorized Use of STATE Fire Engine and Equipment Use of this fire engine other than as specified in paragraph 1 will be considered a breach of this agreement.

18. Use of Radio Equipment
a. STATE will furnish at STATE's sole cost, radio equipment installed in the fire engine to be operated on the current approved State radio load. b. STATE agrees to maintain said radio equipment without cost to TRANSFEREE.
c. The TRANSFEREE agrees to operate said radio equipment in accordance with the Rules and Regulations of the Federal Communications Commission.
813
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
8 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine d. Ownership of said equipment is in the STATE, and all applications to the Federal Communications Commission seeking authority to add, modify or replace radio equipment covered by this agreement shall be made by and in the name of the State of California. To activate this agreement and in compliance with the control requirements of the Communications Act of 1934, as amended, the STATE hereby deputizes the Chief of the agency of said TRANSFEREE, and such volunteers, regularly employed and salaried assistants as shall be designated by the Chief of the agency as his agents to operate said radio equipment as specified in paragraph ''c" above.
e. STATE assumes no liability hereunder for claims or losses accruing or resulting to any person, firm or corporation furnishing or supplying work, services or material or services in connection with the performance of this agreement or for any claims and losses accruing or resulting to any person, firm or corporation injured or damaged by performance of either party hereunder.

19. Notices
All notices herein provided to be given, or which may be given by either party to the other shall be deemed to have been fully given when made in writing and deposited in the U.S. mail, registered and postage prepaid and addressed as follows: To the TRANSFEREE at [INSERT NAME AND ADDRESS OF FIRE AGENCY] and to the STATE at Governor’s Office of Emergency Services, Fire and Rescue Division, 3650 Schriever Avenue, Mather, CA 95655. The address to which notices shall or may be mailed as aforesaid to either party may be changed by written notice given by such party to the other, as hereinabove provided; but nothing herein contained shall preclude the giving of any such notice by personal service.

20. Alterations and Variations
It is mutually understood and agreed that no alteration or variation of the terms of this agreement shall be valid unless made in writing and signed by the parties hereto, and that no oral understanding or agreements not incorporated herein, and no alterations or variations of the terms hereof unless made in writing between the parties hereto shall be binding on any of the parties hereto.

21. Waivers
The STATE may in its sole discretion and for such good cause as it determines waive in writing in whole or in part any requirement of this agreement that fire engine and/or equipment shall be maintained in operating condition, or repaired, or replaced, providing that any such waiver shall be applicable only to the specific fire engine or equipment to which it refers. No failure to enforce any provision of this Agreement shall be construed as a waiver of the provision. Any waiver, in order to be effective, must be in writing and shall only be effective for the instance specified in the writing.
814
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
9 10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine IN WITNESS WHEREOF the parties hereto have executed this agreement upon the date first above written.

TRANSFEREE: STATE OF CALIFORNIA:
______________________ ___________Mark S. Ghilarducci _ Director
Governor’s Office of Emergency Services
By: By:

Brian S. Marshall
State Fire and Rescue Chief
815
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Fire Engine EXHIBIT “A”
EQUIPMENT INVENTORY: Type VI Fire Engine

QUAN DESCRIPTION OES
NUMBER
SERIAL
NUMBER

FIRE HOSE
3 1 ½” NH X 50’, Structural Hose
1 1 ½” NH X 35’, Structural Hose
1 1 ½” NH X 35’, Wildland Hose
1 3” NH X 15’ Soft Suction Hose
8 3” NH X 50 Structural Hose
3 1 ½” NH X 100’, Wildland Hose
3 1” NPSH X 100’, Wildland Hose
3 5/8” GHT X 100’, Wildland Hose

HOSE REEL FIRE HOSE
2 ¾” NPSHX 50’, Hose Reel

SUCTION HOSE
2 3” NH X 9’, Suction Hose
1 1 ½” NH X 8, Suction Hose

NOZZLES
1 1 ½” NH Nozzle Structural, 30-125 GPM, Pistol Grip
1 1 ½” NH Nozzle, Structural, 30-125 GPM, Break-Apart
2 1 ½” NH Nozzle, Wildland, 20-60 GPM
1 1” NPSH Foam Nozzle, Pistol Grip
1 ¾” GHT Nozzle, Wildland
4 1” NPSH Nozzle, Wildland, 10-23 GPM
1 1 ½” NH Nozzle, Wildland w/ Foam Nozzle Attached

ADAPTERS AND FITTINGS
1 2 ½” NH Double Male
1 2 ½” NH Double Female
1 2 ½” NH-F X 1 ½” NH-M Reducer
1 1 ½” NH Double Male
2 1 ½” NH Double Female
1 1” NPSH Double Male
1 1” NPSH Double Female
1 1 ½” NH-F X 1” NH-M Reducer
2 1 ½” NH-F X 1” NPSH-M Reducer
3 1” NPSH-F X ¾” GHT-M Reducer
1 1 ½” NH-F X 2 ½” NH-M Increaser
1 ¾” GHT-F X 1” NSPH-M Increaser
1 1” NPSF-F X 1 ½” NH-M Increaser
1 3” NH-F X 2 ½” NH-F Adapter
1 1 ½” NPSH-F X 1 ½” NH-M Adapter
1 1 ½” NH-F X 1 ½” NPSH-M Adapter
1 1” NH-F X 1” NPSH-M Reducer
1 1 ½” NH-F X 1 ½” NH-M In-Line Shut-Off
1 1” NPSH-F X 1” NPSH-M In-Line Shut-Off
5 ¾” GHT-F X ¾” GHT-M In-Line Shut-Off

HOSE APPLIANCES
1 2 ½” NH-F X 1 ½” NH-F X 1 ½” NH-F Gated Wye
2 1 ½” NH-F X 1 ½” NH-M X 1 ½” NH-M Gated Wye
A-1
816
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Fire Engine 1 1” NPSH-F X 1” NPSH-M X 1” NPSH-M Gated Wye
1 ¾” GHT-F X ¾” GHT-M X ¾” GHT-M Gated Wye
3 1 ½” NH-F X 1 ½” NH-M X 1” NPSH-M Tee
3 1” NPSH-F X 1” NPSH-M X 1” NPSH-M Tee
1 3” NH Suction Hose Strainer
1 1 ½” NH Strainer/Foot Valve
1 1 ½” NH Floating Strainer

LADDERS
1 Little Giant Ladder, 20’

HAND TOOLS
1 Pick-Head Axe, 6 LB, 36” Handle
1 Flat-Head Axe, 6 LB, 36” Handle
1 Pike Pole, 6’
1 Rubbish Hook, 6’
2 Forest Fire Shovel
1 McLeod
1 Pulaski
1 Fire Rake
1 Council Combination Tool
2 Hay Hooks
1 Pipe Wrench, 24”
1 Bolt Cutters, 24”
1 Fence Pliers

HOSE ACCESSORIES
2 Forestry Spanner Wrench, Combination
1 Dead-Blow Hammer, 2 LB
1 Hydrant Wrench
2 Spanner Wrench
1 Foam Can Wrench
1 Hose Roller
2 Wildland Hose Clamp

PORTABLE PUMP
1 Portable Pump, 119 GPM, 64 PSI
2 2” NPT-F X 1 ½” NH-M Adapter
1 Fuel Can, 2 ½ Gallon, Regular Fuel

BACKPACK PUMP
1 Backpack Pump, 5 Gallon

DRIP TORCH
1 Drip Torch

TRUCK EQUIPMENT
2 Chock Blocks
1 Triangle Warning Reflectors
1 Electronic Road Flare Kit
1 Traffic Cones, Collapsible Kit,
1 Jack, 8-Ton
1 Tow Chain, 25’ X 3/8”, 6,660 LB Working Load

CHAIN SAW
1 Chain Saw, 24” Bar, Standard Chain
1 Spark Plug, Spare
1 Air Filter, Spare
1 Bar, 24”, Spare
A-2
817
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Fire Engine 1 Bar Oil, 1 Gallon
1 Chain Saw Tool Kit

FIRE EXTINGUISHERS
1 30 LB BC Fire Extinguisher
1 5 LB ABC Fire Extinguisher

EXTRICATION EQUIPMENT
1 Spreader, eDRAULIC
1 Cutter, eDRAULIC
1 Ram, eDRAULIC
Rechargeable Battery
1 Battery Charger, Multi-Bank

MEDICAL EQUIPMENT
1 Trauma Kit
1 Burn Kit
ROPE
1 Utility Rope, ½” X 100’
1 Rope Bag
G.P.S.
1 Garmin
A-3
818
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Fire Engine EXHIBIT “B”
RADIO INVENTORY: Type VI Fire Engine

QUAN DESCRIPTION OES NUMBER SERIAL NUMBER

MOBILE RADIOS
1 Mobile Radio, Bendix-King, KNG M-150

PORTABLE RADIOS
1 Portable Radio, Bendix-King, KNG P-150
1 Speaker Microphone
1 Battery Holder
1 Carrying Case, Leather
B-1
819
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Fire Engine EXHIBIT “C”

TEMPORARY CAL OES FIRE ENGINE TRANSFER RECORD
NO. A R T I C L E OES
DECAL

QUANTITY

1. 500 GPM Type IV Fire Engine, complete with
equipment per attached Exhibit "A" of Agreement
for Temporary Transfer of Vehicular Equipment.

OES - 1

2. License No:

3. VIN No:

4. Engine Number:

5. Proof of Insurance:

6. Inventory Completed:

7. 8.

9. 10.

11. REASON FOR TEMPORARY TRANSFER:

SIGNATURES:

Date

PERMANENT TRANSFEREE
Date

TEMPORARY TRANSFEREE
C-1
820
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine EXHIBIT “D”

INSURANCE REQUIREMENTS
Part of the agreement through which the STATE makes a temporary transfer of vehicular equipment is the agreement on the part of the TRANSFEREE to furnish certain evidence of insurance. Your organization, as a transferee of equipment, will want to be mindful of these requirements and assure they are complied with.

Liability Insurance
A certificate of insurance shall be furnished to the STATE providing minimum limits of insurance as follows:

BODILY INJURY and PROPERTY DAMAGE LIABILITY $1,000,000.00 PER OCCURANCE A certificate of insurance will have the following provisions included:

1. The State of California shall be named Loss Payee and Additional Insured.

2. The insurance company shall agree that in the event of cancellation, 15 days prior written notice will be given to the STATE.

3. The STATE shall not be responsible for premium or assessments.

4. Certificate of Insurance must include the description of the fire engine including identification number, State license number and Cal OES unit number.

Physical Damage Insurance
The transfer agreements place certain responsibilities upon your organization for the safekeeping of the vehicle and equipment. The STATE will look to your organization for reimbursement for repair or replacement cost in the event the vehicle or equipment is damaged by misuse or negligence or by other causes, except normal wear and tear, acts of God and conditions over which your organization has no control.

D-1
821
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine Description of Fire Engine

VEHICLE VALUE
$215,599.00
License Number:

VIN Number:

Engine Number:

EQUIPMENT
Hose and Appliance $41,826.00
D-2
822
State of California
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Fire and Rescue Division
10/2020
Agreement for Temporary Transfer of Vehicular Equipment-Type VI Engine EXHIBIT “E”
Original text of letter addressed to the California Fire Service outlining the specifications to be considered for a Type VI fire engine assignment:

As a result of the Governor’s Blue-Ribbon Commission of the 2003 Fire Siege, the Governor’s Office of Emergency Services, Fire and Rescue Division has purchased seventy-nine Type VI fire engines.

Cal OES, Fire and Rescue Division is notifying agencies that are interested in becoming a transferee of the new Type VI fire engines. These fire engines will be assigned within the Cal OES Regions. Agencies desiring to house and staff these fire engines must meet the following criteria for consideration of transfer. All these items must be addressed in your fire engine request.

Training:
· Personnel responding with the fire engine shall meet wildland fire and ICS training standards established in the California Incident Command Certification System (CICCS) or NWCG 310-1 (Current version) for the following positions; 1 Engine Boss or Company Officer
1 Apparatus Operator (Engineer)
1 Firefighter (Type 1 or 2 Firefighter)
· The department has or will adopt a 4X4 Driver Training Program Cal OES, Fire and Rescue Division Type VI TRANSFEREE will be expected to meet and accept the following work assignments & staffing:
· Backfire, Burnout, Holding, and Mop-Up
· Progressive Hose Lays, Hose Lays supplemented with portable pumps · Construct Hand lines
· Mobile Pumping
· Operate in Off-Road Environment
· Meet the expected 7-Day minimum assignment period in compliance with the California Fire Assistance Agreement.
· Meet FIRESCOPE compliant 3-person staffing
· The ability to staff 3-person staffing for out of Operational Area dispatches · The transfer agreement that transfers the fire engine requires that a fire department staff the fire engine for immediate need with 3 fully trained personnel.
· The department should assess if it has the staffing capability to send the engine out (minimum 3 fire fighters) for 7-14 days (excluding travel time) E-1
823
824
825
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 23
Agenda Item: ABC – Public Convenience or Necessity – Yosemite Axe Throwing Executive Summary: Under State law, the issuance of a new alcohol retail license is prohibited in any area that has an undue concentration of alcohol outlets or high crime unless a determination is made that the license would serve public convenience or necessity (Cal. Bus. & Prof. Code § 23958.4). The determination of “public convenience or necessity” is either made by the Department of Alcoholic Beverage Control (ABC), or by a local governing body, depending on the license type.

Where the ABC license type necessitates a determination of public convenience or necessity by the local governing body, the local governing body must issue a letter to ABC stating that it has made the finding of public convenience or necessity for ABC to issue a new alcohol retail license.

Requested Action / Suggested Motions: Pass a Resolution Approving Issuance of a Letter of Public Convenience or Necessity (PCN) to the California Department of Alcoholic Beverage Control (ABC) for the Issuance of a Type 40 License for the Premises at 3979 Lake Tahoe Boulevard Unit #1 (Yosemite Axe Throwing), APN 029-083-016.

Responsible Staff Member: Madison Dederick, Assistant Planner Responsible Staff Member: Madison Dederick, Assistant Planner (530) 542-6022 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - ABC Public Necessity Letter.docx
02-Yosemite Axe Throwing ABC Application 22-086.pdf
03-Resolution PNC 22-086.docx
04-Exhibit A PCN Letter 22-086.docx
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City Council Agenda Report August 9, 2022 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: ABC – Public Convenience or Necessity – Yosemite Axe Throwing Location: 3979 Lake Tahoe Boulevard, Unit # 1
Responsible Staff Members: Madison Dederick, Assistant Planner Background: Under State law, the issuance of a new alcohol retail license is prohibited in any area that has an undue concentration of alcohol outlets or high crime unless a determination is made that the license would serve public convenience or necessity (Cal. Bus. & Prof. Code § 23958.4). The determination of “public convenience or necessity” is either made by the Department of Alcoholic Beverage Control (ABC), or by a local governing body, depending on the license type.

Where the ABC license type necessitates a determination of public convenience or necessity by the local governing body, the local governing body must issue a letter to ABC stating that it has made the finding of public convenience or necessity for ABC to issue a new alcohol retail license.

Issue and Discussion: Project Description This item is before the City Council to consider approval of a Letter of Public Convenience or Necessity (PCN) to the State of California Department of Alcoholic Beverage Control (ABC) for a Type 40 On-Sale Beer license request from Yosemite Axe Throwing at 3979 Lake Tahoe Boulevard, Unit # 1. A Type 40 license authorizes the sale of beer for consumption on or off the premises where sold. No wine or distilled spirits may be on the premises. Full meals are not required; however, sandwiches or snacks must be available. Minors are allowed on the premises.

Yosemite Axe Throwing is currently operating under a special use permit for an amusement and recreation use. Yosemite Axe Throwing is proposing to install a fridge that will be stocked with a variety of bottled and canned beer; no beer will be sold on tap.

A Type 40 On-Sale Beer license also requires sandwiches or snacks to be available.

Yosemite Axe Throwing will not be altering the facility for any type of food preparation, only small, prepackaged snacks will be available. The sale of beer is considered an accessory use to the primary amusement and recreation use and consistent with the Tourist Core Area Plan. Due to the scope of sales, the proposal does not modify Yosemite Axe Throwing’s current operation plan approved though a special use permit. The South Lake Tahoe Police Department has reviewed the request and does not object to the proposed issuance of this type of license to the applicant. 827
City Council Agenda Report August 9, 2022 Page 2 of 3
Site Description The business is located within a developed commercial complex at 3979 Lake Tahoe Boulevard. The site is bordered on the east and west by hotels and restaurants. The parcel behind the property is parking for the commercial complex which leads out to Cedar Avenue and residential uses.

Existing Site Factors
Parcel Size 24,715 ft2 (estimated)
Assessor's Parcel Number 029-083-016
General Plan Land Use Designation Tourist Center
Planning Area Tourist Core Area Plan
Zoning Tourist Center Mixed-Use (TSC-MU)
Use Amusement & Recreation
Flood Zone Area of Minimal Flood Hazard, FEMA Panel
06017C0380F
Airport Land Use Compatibility Plan Not Applicable
Surrounding Land Uses/Zoning
General Plan
Land Use
Zoning Development Status
North Tourist Center TSC-MU Restaurant & Tourist Accommodations East Tourist Center TSC-C Commercial & Retail Uses
South Tourist Center TSC-MU Restaurant & Tourist Accommodations West Tourist Center TSC-MU Residential
Public Notice and Public Comments: The applicant, according to the California Business and Professions Code, Chapter 6, 23985.5(a) has notified all residences within 500 feet of the site. No notices on behalf of the City of South Lake Tahoe are required under California Business and Professions Code, Chapter 6, 23985.5.

However, a notice of public hearing was mailed to property owners within 300 feet of the property on July 29, 2022 and published in the Tahoe Daily Tribune on July 29, 2022 in compliance with Government Code Division 1, Chapter 2.7 (Public Hearings). Any comments received will be transmitted to the City Council and posted on the City web site.

Financial Considerations: There is a potential for additional tax revenue generated by the sale of beer.

Environmental Considerations: The proposed Project is exempt from CEQA under State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). Section 15061(b)(3) of the CEQA Guidelines states that an activity is covered by the commonsense exemption that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. Granting this PCN will not bring 828
City Council Agenda Report August 9, 2022 Page 3 of 3
about any physical change to the environment and will not have any potential for causing a significant effect on the environment.

Policy Implications: The Strategic Plan incorporates the concept of expanding retail opportunities as part of Economic Development. As the City has been endeavoring to “increase the top line”, it is important to encourage and assist private enterprise to create new economic models within the City.
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Resolution 2022-XX August 9, 2022 Page 1 of 2
Resolution 2022-XX
Adopted by the City of South Lake Tahoe City Council
August 9, 2022
Approving Issuance of a Letter of Public Convenience or Necessity (PCN) to the California Department of Alcoholic Beverage Control (ACB) for the Issuance of a Type 40 License for the Premises at 3979 Lake Tahoe Boulevard Unit #1 (Yosemite Axe Throwing), APN 029-083-016

BACKGROUND
A. Pursuant to applicable provisions of the Business and Professions Code, the Department of Alcoholic Beverage Control (hereinafter “ABC”) is charged with the responsibility of reviewing applications and issuance of licenses for the sale and /or manufacture of alcoholic beverages in the State of California.

B. Section 23958 of the Business and Professions Code provides that ABC shall deny an application for a license if issuance of that license would tend to create law enforcement problem, or if issuance would result in or add to an undue concentration of licenses, excepted as provided in Section 23958.4 of said Business and Professions Code.

C. Section 23958.4 of the Business and Professions Code provides that, notwithstanding the limitations of Section 23958, ABC shall issue a license if the applicant shows that “public convenience or necessity” would be served by the issuance of such license.

D. Section 23958.4 further provides that the determination of “public convenience or necessity” shall be made by ABC with regard to certain applications and shall be made by the local governing body of the area in which the applicant premises are located with regard to certain other applications.

E. As a local governing body within the meaning of said Section 23958.4 of the Business and Profession Code, the City Council of South Lake Tahoe (hereinafter the “City Council”) has the discretion to determine when the public convenience or necessity would be served by allowing an alcohol license in an area where there is an undue concentration of licenses.

F. Under state law Section 23790 of the Business and Professions Code, ABC may not issue an alcohol license if it violates an existing zoning ordinance.

G. The subject site is zoned mixed use and is in a designated town center and operates under a special use permit for amusement and recreation. 832
Resolution 2022-XX August 9, 2022 Page 2 of 2
H. Yosemite Axe Throwing has applied for a Type 40 On-Sale Beer License that authorizes the sale of beer for consumption on or off the premises where sold.

I. The City has determined that the issuance of a of PCN is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3).

Section 15061(b)(3) is a general rule exemption applying to projects that have no possibility of having a significant impact on the environment. The determination that the public convenience or necessity that would be served by the issuance of a Type 40 ABC license would not cause environmental impacts as there is no direct physical effect.

J. The City of South Lake Tahoe has prepared a Letter of Public Convenience or Necessity provided as Exhibit A attached hereto.

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

1. Finds that the public convenience or necessity would be served by the proposed sale of beer at Yosemite Axe Throwing, 3979 Lake Tahoe Boulevard Unit #1, APN 029-083-016.

2. Authorizes and directs the Planning Manager to issue the Letter of Public Convenience or Necessity attached hereto as Exhibit A.

Adopted by the City of South Lake Tahoe City Council at a meeting on August 9, 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.
833

EXHIBIT A
August 9, 2022 Certified Mail
State Department of Alcoholic Beverage Control
2400 Del Paso Road, Suite 155
Sacramento CA, 95834
SUBJECT: Letter of Public Convenience or Necessity for Yosemite Axe Throwing, located at 3979 Lake Tahoe Blvd. Unit #1, South Lake Tahoe, CA 96150 Attention:

This letter is regarding the Yosemite Axe Throwing application for a Type 40 On-Sale Beer License for 3979 Lake Tahoe Boulevard Unit #1. The California Department of Alcoholic Beverage Control (ABC), under state statute, must review and issue licenses for the sale and/or manufacture of alcoholic beverages. State law provides that ABC shall deny an application for a license if the issuance of that license would either create a law enforcement problem or result in or add to an undue concentration of licenses unless a determination is made that public convenience or necessity would be served by the issuance of that license.

Pursuant to Section 23958.4 of the California Business and Professions Code, the City of South Lake Tahoe City Council must issue a letter of Public Convenience or Necessity (PCN) for ABC to grant Yosemite Axe Throwing a Type 40 On-Sale Beer License due to “undue concentration” in census tract 316.01. The census tract is allowed 4 on-sale licenses, while 38 have been issued. ABC requires the City of South Lake Tahoe to make a finding of public convenience or necessity before a new alcohol license may be issued in census tract 316.01.

If you have any questions or concerns, please contact Madison Dederick, Assistant Planner, at (530) 542-6022 or [email protected].

Sincerely,
____________________________ ____________________________ John Hitchcock
Planning Manager
David Stevenson
Chief of Police
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 24
Agenda Item: Review Policy for Publicly Visible Art on Private Property Executive Summary: At the May 10, 2022, Art, Culture, and Tourism (ACT) Commission meeting, staff was directed to draft a new policy for public art located on private property. On June 14, 2022, the ACT Commission reviewed a draft policy and provided staff with feedback, as well as discussed amending the application fees. The ACT Commission reviewed the revised policy and proposed application fees on July 12, 2022. The item before the Council is to consider a resolution adopting a review policy for publicly visible art on private property and amending the master fee schedule to establish no fee for public murals and a $250 fee for all other publicly visible art.

Requested Action / Suggested Motions: Pass a Resolution adopting a review policy for publicly visible art on private property and amending the master fee schedule to establish no fee for public murals and a $250 fee for all other publicly visible art.

Responsible Staff Member: Madison Dederick, Assistant Planner Responsible Staff Member: Madison Dederick, Assistant Planner (530) 542-6022 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report-Art Review Policy.docx
02-Resolution-Art Review Policy
03-2003 Planning Department On-Site Private Art Policy.pdf 835
City Council Agenda Report August 9, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: Review Policy for Publicly Visible Art on Private Property Location: Citywide
Responsible Staff Member: Madison Dederick, Assistant Planner Background: At the May 10, 2022, Art, Culture, and Tourism (ACT) Commission staff was directed to draft a new policy for public art located on private property. On June 14, 2022, the ACT Commission reviewed a draft policy and provided staff with feedback, as well as discussed amending the application fees. The ACT Commission reviewed the revised policy and proposed application fees on July 12, 2022.

Issue and Discussion: The duties and responsibilities of the ACT Commission include the following: (1) Act in advisory capacity to the City Council and no express authority or power to act on behalf of the City; (2) Review proposed policies on Arts, Culture and Tourism programs and report findings; and (3) Review proposed public art projects and make recommendations for the appropriation of funds for specific projects.

The recommendation of the ACT Commission includes adoption of the Publicly Visible Art Review Policy included in the attached resolution. The policy would require publicly visible art to be reviewed by the ACT Commission for consistency with specified criteria. The ACT Commission further recommends an amendment to the Master Fee Schedule to establish no fee for public murals and a $250 fee for all other publicly visible art.

The recommendation before the Council aligns with all three of the ACT Commissions' duties and responsibilities. Additionally, the new policy aligns with Goal 3.3 of the City's strategic plan for an Arts and Cultural Program by ensuring that art on private property provides a safe and quality experience for our residents and visitors.

Financial Implications: If the new fees of $0 for murals and $250 for all other visible public art are adopted, the financial cost of providing services to process applications will not be recovered. The estimated average amount of staff time to review art installation application is twenty (20) hours.

However, providing this service at little to no cost aligns with Goal 3.3 of the City's 2021-2026 Strategic Plan, to invest in arts and culture. If the amendment to the Master Fee Schedule is not adopted and the new policy is adopted, the application would continue to be processed as a Minor Design Review with a fee of $925.00.
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City Council Agenda Report August 9, 2022 Page 2 of 2
Environmental Considerations: The proposed policy and fee schedule amendment is exempt from CEQA under State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). Section 15061(b)(3) of the CEQA Guidelines states that an activity is covered by the commonsense exemption that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. Most projects proposed under the public art review policy would be exempted from CEQA under Section 15304, Minor Alterations to Land. However, project level review would be conducted at the time of project application review.

Policy Implementations: The proposed policy would replace the current department policy for art on private property and designate the ACT Commission as the approval body for publicly visible art on private property.
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Resolution 2022-XX August 9, 2022 Page 1 of 2
Resolution 2022-XX
Adopted by the City of South Lake Tahoe
City Council
August 9, 2022
Review Policy for Publicly Visible Art On Private Property

BACKGROUND
A. On February 21, 2003, the Development Service Department established a policy for the review of “on-site” private art.

B. The Art, Culture and Tourism Commission was established by Resolution 2021-061 with the following duties and responsibilities:
i. Act in advisory capacity to the City Council and no express authority or power to act on behalf of the City.
ii. Review proposed policies on Arts, Culture and Tourism programs and report findings. iii. Review proposed public arts projects and make recommendations for the appropriation of funds for specific projects.

C. At the May 10, 2022, Art, Culture and Tourism Commission meeting, staff was directed to create a new public art review policy based on the Commission’s discussions during the meeting.

D. On July 12, 2022, the Art, Culture and Tourism Commission recommended the City Council adopt the review policy for publicly visible art and amend the master fee schedule to establish no fee for public murals and a $250 fee for all other publicly visible art.

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

1. Adopts the following policy for review of public art (replacing the Department policy), to ensure that art on private property provides a safe and quality experience for our residents and visitors:
a. Applications for all private art shall be submitted to the City’s Development Service Department. Planning staff will review the application for completeness and then present the submitted Public Art Application to the Arts, Culture, and Tourism Commission at the next scheduled meeting.
b. The Art, Culture and Tourism Commission will review the proposal for consistency with the following findings:
i. Art shall be consistent with the mission, vision, and core values of the Art, Culture and Tourism Commission;
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Resolution 2022-XX August 9, 2022 Page 2 of 2
ii. Art shall be consistent with the mission, vision, and values of the City Strategic Plan;
iii. Art pieces are to reflect a degree of originality and should not duplicate other art pieces;
iv. Art must exhibit good craftsmanship and be able to withstand the stresses of the mountain environment;
v. Art shall not be construed as signage through means of any character, letter, figure, symbol, model or device or combination of these used to attract attention or convey a message and which is readable from a public street, public recreation area, bicycle trail or from Lake Tahoe.
c. The Art, Culture and Tourism Commission will make a recommendation directing staff to either approve or deny the application. Upon recommendation of approval, staff and the Commission may condition the permit, including but not limited to, location, site enhancements, lighting, or obtaining building permits to ensure the art is consistent with the above findings.

2. Adopts an amendment to the Master Fee Schedule to include the following fees:
a. A zero-dollar ($0) fee for public murals.
b. A two-hundred-and-fifty-dollar fee ($250) fee for non-mural publicly visible art.

Adopted by the City of South Lake Tahoe City Council on August 9, 2022, by the following vote:

Yes:

No:

Absent:

Abstain:
____________________________ Date: _____________
Devin Middlebrook, Mayor
Attest:
____________________________ Date: _____________
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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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 25
Agenda Item: Program Update and Potential Expansion/Modification of "Lease to Locals" Rental Incentive Grant Program
Executive Summary: City Council will receive an update regarding the operational status of the Lease to Locals rental incentive grant program with a recommendation to extend the operation of the program with modifications to the program guidelines based on data, information, and experience collected during the operation of the pilot program.

Requested Action / Suggested Motions: Pass a Motion directing staff to prepare an amendment to the Professional Services Agreement with Landing Locals for subsequent City Council approval to allow for continued administration of the program through 2023 and allocate the $214,000 that was set aside for a property management incentive grant to continue funding the existing program.

Responsible Staff Member: Zach Thomas, Housing Manager
Responsible Staff Member: Zach Thomas, Housing Manager (530) 542-7400 Reviewed and Approved By:

Hilary Roverud, Director of Development Services
Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Lease to Locals Expansion.docx
02-Program-Guidelines-12-8-21.pdf
03-PSA C-137-2021 Landing Locals.pdf
04-Res 2021-082 Long Term Rental Grant Pilot Program.pdf 841
Council Agenda Report August 9, 2022 Page 1 of 4
City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: Program Update and Potential Expansion/Modification of “Lease to Locals” Rental Incentive Grant Program
Location: Citywide
Responsible Staff Member: Zach Thomas, Housing Manager (530) 542-7400 Background: At its August 3, 2021 meeting, the City Council was presented potential strategies to incentivize the use of existing vacant housing stock to convert to long-term rental housing. Initially, these strategies were informed in part by results of a survey done in conjunction with Tahoe Home Connection. The survey was sent to second home owners and sought to inquire about potential incentives that may encourage the conversion of vacant properties for long-term rentals. After the staff presentation and discussion by the City Council, direction was given to staff to finalize a scope of work with Landing Locals to administer a pilot rental incentive grant program.

At its October 19, 2021 meeting, the City Council adopted a resolution appropriating $500,000 in American Rescue Plan Act (ARPA) funds to initiate the long-term rental incentive grant pilot program and authorized the City Manager to enter into a Professional Services Agreement (PSA) with Landing Locals to administer the program. The resolution allocated $86,000 for program administration and marketing costs as well as $200,000 for incentive grants to property owners. Staff was also directed to initiate a Request for Proposals (RFP) to use $214,000 for a property management incentive program. A recommendation for entering into a PSA with a property management company was to be brought to council at a future date along with updates regarding the rental incentive program success.

Upon entering into the PSA, City staff and Landing Locals finalized the program guidelines consistent with the parameters approved by the City Council and launched the program in December under the name “Lease to Locals”.

While the Lease to Locals program guidelines are more detailed, the program consists of the following basic structure approved by the City Council:
 Household average income cannot be more than 125% of the Area Median Income (AMI)
 Properties cannot already be used as a long-term rental (but did incentivize the conversion of month-to-month leases to long-term leases)  Properties must be rented for at least 12 months and are subject to a rent cap based on the size of the house
 Incentive payments are $2,000 per local resident housed 842
Council Agenda Report August 9, 2022 Page 2 of 4
Issue and Discussion: Given the originality and unknown impact of the program, Lease to Locals was initiated as a pilot program by the City Council. In much the same way that the second homeowner survey provided some preliminary information to conceptually guide the development of the program guidelines, data collected during actual program operation provides even more powerful insight regarding the direction of the program moving forward.

At approximately mid-way through its first year, the Lease to Locals program has built significant “brand recognition” which has proven valuable in the spring and summer months to increase interest in what are typically busy times for the real estate and rental markets. As of the date of this report the program has housed 23 residents with another 31 residents in the process of completing applications, leases and income verification. This will bring the total to 54 people housed which is slightly more than half of the original 100 residents ($200,000) budgeted for.

Program guidelines were designed to cast a wide net to allow for maximum flexibility in program implementation by striving to unlock new long-term rental units and improve housing stability for households in month-to-month rental situations while also not limiting tenants that may have seasonal employment that fluctuates geographically.

As had been anticipated, data, information and experience collected during the operation of the pilot program is now serving to provide meaningful insight regarding future operation of the program.

Key Findings
1) Program Success - The program is successful and on track to expend the initial $200,000 in grant funding during the first year (Providing incentive grants for 100 residents).
2) Property Management Incentive - Little, if any, need for a property management incentive has been identified. Property owners have not identified a lack of property management services as a barrier to renting long-term.
3) Local Employment Requirement - While the 125% Area Median Income cap has helped ensure that moderate income households are served by the program, it has not prevented moderate-income remote workers from also benefiting from the program. It was initially thought that remote-workers would generally exceed the income cap and therefore not use the program. However, data suggests a notable amount of moderateincome remote workers have sought to use the program.

Based on the findings noted above, staff recommends allocating the remaining $214,000 to continue the program for another year and modify the program guidelines consistent with key finding and data collected during the operation of the pilot program:

Key Recommendations
1) Extend the program through the end of 2023. This would require bringing an amended PSA with Landing Locals back to Council for approval to allow for continued administration of the program.
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Council Agenda Report August 9, 2022 Page 3 of 4
2) Add in a regional employment requirement – Adding a requirement that at least 50% of household adults over the age of 18 years work at least 20 hours per week for an employer based in the “South Shore” as defined in the South Shore Housing Needs Assessment. While adults not working locally can live at properties participating in the program, only locally employed adults may count towards the property owner receiving the grant.
3) Further defining that grant payments are made for “Qualifying Tenants” by clarifying the regional employment requirement and adding the definition that a child or children in the household can be considered as one additional qualifying tenant. Also, add further clarification that a qualifying tenant may not be an immediate family member (son, daughter, brother, sister, parent, including step or in-law relations) of the owner. 4) Remove the current rent caps per unit size ($2,000 for 1 bedroom, $2,500 for 2 bedroom, $2,800 for 3 bedroom and $3,100 for 4+ bedroom) and the corresponding maximum number of grants per unit size and replace it with a rent cap of $3,500 per property. Data has shown this system works better in addressing the unique circumstance of individual properties and allowing moderate-income buyers (one of the target demographics of the program) to rent properties that often fall more within this price range.
5) Remove the ability for landlords operating existing long-term but month-to-month rentals to participate. As the program matures, this will help focus the effort on “unlocking” new units for long-term rental rather than the broader strategy of simply encouraging longterm rentals.

Financial Implications: The ARPA established the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. This program is intended to provide support to state, territorial, local, and tribal governments in responding to the economic and public health impacts of COVID-19 and assist efforts to mitigate impacts on communities, residents, and businesses. Council Resolution 2021-082 appropriated $500,000 in ARPA funds into account 320-30003 Long-Term Rental Incentive Grant Pilot Program to initiate the program. The current PSA with Landing Locals for administration of the program includes a budget of $286,000 of which $86,000 is allocated to Professional Services and marketing cost, and $200,000 to Grant Payments. An additional $214,000, originally allocated to a property management incentive program, can be reallocated to the grant program. If directed by City Council, staff will bring back an amended PSA with Landing Locals for approval of the longterm rental incentive grant pilot program extension through the end of 2023.

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, Section 15378(b)(2) and 15378(b)(4) and is, therefore, not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).

Policy Implications: The effort to increase the use of existing housing stock for longterm rental is identified as the first housing action item in the City’s 2021-2026 Strategic Plan.

The Lease to Locals program is also consistent with the following adopted General Plan Housing Element policies and programs:
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Council Agenda Report August 9, 2022 Page 4 of 4
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 2-3 The City shall encourage a range of housing options so that people who work in South Lake Tahoe can choose to live in the City.

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.

Program 3-9 Landlord/Tenant Matching Program
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City of South Lake Tahoe Lease to Locals Pilot Program
Guidelines

1.0 PROGRAM OVERVIEW
Background: The Lease to Locals Pilot Program (the “Program”), offers cash incentives to property owners who convert their underutilized housing units to rentals for qualified households. The goal of the program is to increase the supply of rental housing available for moderate and low income households.

Who the Program Serves:

The target population served with the Program are households that average no more than 125% of the Area Median Income (AMI) which is $79,688 (2021 published AMI) for an individual per standards set by the California Department of Housing and Community Development for El Dorado County.

Program Definitions:

Underutilized Housing Unit: For the purpose of the Program, an “underutilized housing unit” is one that is occupied less than full-time and not currently being rented long-term (30 days or more). Examples include rooms in primary homes, short-term rentals, vacation and second homes.

Long-Term Rental: For the purpose of the Program, a long-term lease is defined as 12- months. The goal of the program is to secure long-term leases.

Definition of a Household: For the purpose of the Program, a household is defined as related adults (e.g.family/marriage) or unrelated adults living together in one house. To be considered a household, all residents in the home must live together in a home as their primary residence.

Definition of a Tenant: For the purpose of the Program, a tenant is a single person applying to be matched into a rental unit in South Lake Tahoe for use as their primary residence.

Definition of an Adult: For this Program, Adult is considered 18 years or older.

2.0 PROGRAM ADMINISTRATION
The City will administer the Lease to Locals Program with support from a third-party administrator, Landing Locals. Landing Locals is a California Benefit Corporation, based in Truckee, Calif. with a mission to unlock new rentals for local employees in resort towns.

1. City of South Lake Tahoe Role: The City will oversee and fund the Program.

This includes managing a contract with Landing Locals, grant disbursements and program evaluation.

2. Grant Amounts: The City will offer a $2,000 grant per tenant housed through the Program, with a maximum amount of incentives based on the unit size in the table below. In the case of families with children, in order to encourage rentals to larger families, children under age 18 will be counted as tenants for 846
the purpose of calculating grant payments.

1. Maximum Rental Rate: To ensure affordability the Program requires that units 1 bedroom or greater in size be priced at or below the Maximum Rental Rate called out in the table below. Rooms or Studios do not have a maximum rental rate.

2. Grant Administration: The City will issue grant payments to property owners as follows: 50% of total grant within 30-days of the start of the lease and 50% at successful close of 12 month lease.

3. Grant Disbursements: Prior to grant disbursements, the City will review documentation submitted by Landing Locals including: a copy of signed lease agreement (by landlord and tenant(s)), proof of income for all tenants over 18, homeowner W-9, and check request form.

4. Landing Locals Role: Per the executed annual scope of services and contract, Landing Locals will provide the following services for the Program: program development, customer service, marketing, compliance, reporting, and processing applications per Program Guidelines.

Monthly Rent Not
to Exceed
Maximum number
of Grants Per Unit*
Maximum Total Grant
Amount per Unit
Room or Studio N/A 1 $2,000
1 bedroom $2,000 2 $4,000
2 bedroom $2,500 3 $6,000
3 bedroom $2,800 4 $8,000
4 bedroom or greater $3,100 5 $10,000
* The maximum number of grants possible per unit is based on the size of the unit and number of tenants. For Example, a 3 bedroom unit can qualify for up to 4 grants ($8,000) if four qualifying tenants rent the property. If a 3 bedroom unit is rented to only 2 qualifying tenants, the property owner would only receive 2 grants ($4,000).

3.0 PROGRAM DURATION
The Program is a one-year pilot program that starts on Dec 15, 2021. Quarterly, staff will review program progress, housing needs and scope of service from Landing Locals to determine recommendations to City Council on continuance and/or modifications of the Program.

4.0 ELIGIBILITY FOR HOMEOWNERS

1. Grant Application: Homeowners must submit a complete on-line form and sign a self-certification checklist with Landing Locals and comply with the following criteria to have their home considered for the grant program. 847

1.1. Location: The home must be located within the City-limits of South Lake Tahoe.

1.2. Status: The home must be a legally permitted dwelling unit and each bedroom in the property must have a door and window.

1.1. New Rental: The unit must have not already been an existing longterm rental in the past 18 months.

1.2. Eligible Properties: Properties must be single-family homes, townhomes, privately-owned condos or vacant rooms in owneroccupied properties. Multi-family rental properties are not eligible for the program.

1.3. Ownership: The applicant must be the owner of the property or able to represent the owner or ownership group legally.

1.4. Property Condition: The home or room must meet basic health and safety criteria per CALIFORNIA HEALTH AND SAFETY
CODE, DIVISION 13. HOUSING, PART1.5. REGULATIONS OF
BUILDINGS USED FOR HUMAN HABITATION, CHAPTER 2.

RULES AND REGULATIONS.

1.5. Signed Lease Agreement And Complete Lease Packet: The homeowner must complete the Lease Packet and sign a Lease Agreement with qualified tenants.

1.6. Successful Six-Month Lease Checks: Homeowners must successfully meet lease agreements for the full length of the lease and will be checked for compliance, by Landing Locals, via phone/emails interviews, at six months. Failure to meet lease requirements at either of these points could disqualify the homeowner for grant payments.

1. Contingency:

1.1. Change of Ownership: If the property is sold during the lease period, the lease agreement is broken and the homeowner is disqualified from the Program. In this case, Landing Locals would work to place the tenants into another property or work with new owners to submit an application to the Program. The new owners could qualify for the second half of the grant payment if they continue to rent to the existing tenants for the remainder of the lease in place.

1.1. Failure to Comply with Lease: If the homeowner does not meet lease agreements at the six-month mark because of an eviction or move-out, Landing Locals will work with homeowners to rectify the situation. If an agreement cannot be reached, the homeowner will be disqualified from receiving the second installment of the grant disbursements but will not be required to pay back the first installment of the grant.

1.2. Property Condition: If the property is deemed in violation of CALIFORNIA HEALTH AND SAFETY CODE, DIVISION 13.

HOUSING, PART 1.5. REGULATIONS OF BUILDINGS USED
FOR HUMAN HABITATION, CHAPTER 2. RULES AND
REGULATIONS the grant payment(s) can be withheld.

5.0 ELIGIBILITY REQUIREMENTS FOR TENANTS

1. Income Qualification:
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The average annual income of all adult residents of a household (related or unrelated) can be no more than 125% of the area median income ($79,688) as set by CA Dept. of Housing and Community Development.

1.1. Documentation: Each adult applicant in the household must submit the following documentation along with their applications in order to determine total household income:
● Copy of driver’s license or other photo ID for each adult. ● Verification of annual gross income for each adult as follows:
o Related households: Tax returns (prior year)
o Unrelated households. For each adult over 18 need
one of the following:
▪ Copy of W-2 (1 year)
▪ A recent pay stub (past three months) or an
offer letter or email from the employer that
verifies total annual gross income for the
new position.
▪ Summary of unemployment benefits for the
year
▪ Trust fund disbursement statements
▪ Spousal support or alimony payments
▪ Other explanation of income in a written
format

6.0 PROGRAM EVALUATION
Annually, the Program will be evaluated to ensure City resources are being efficiently utilized.

City staff will produce a program report using the following criteria to measure success of the program:
● Number of people served (including children)
● Number of homes unlocked
● Types/Sizes of units unlocked
● Rental prices for each home, average per room
● Income of renters (area median income of each adult in the home) being served ● Number of rentals extended beyond 12-month lease program ● Program participant surveys (homeowners and tenants)
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CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of the 1st day of December, 2021 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and Landing Locals (“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 upon the execution of the Agreement and continue for one year.

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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 $86,000 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 C-137-2021
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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 C-137-2021
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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 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 acquireany 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 beaffected 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 tohis/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,
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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.

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.

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 C-137-2021
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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.

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 C-137-2021
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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.

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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.

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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
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: Colin Frolich, Chief Executive Officer 10418 Donner Pass Road Unit C
Truckee CA 96161

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, which shall not be unreasonably withheld. 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
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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 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.

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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.

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.

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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.

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
Joseph Irvin, City Manager Colin Frolich, Chief Executive Officer Date Date
APPROVED AS TO FORM:

By___________________________
Heather Stroud, City Attorney
ATTEST:

By
Susan Blankenship,
City Clerk
Attachments:

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

SCOPE OF SERVICES
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Scope of Work
To: Zach Thomas - Housing Manager, City of South Lake Tahoe From: Colin Frolich, Chief Executive Officer
Kai Frolich, Chief Impact Officer
(530) 213-3093
[email protected]
10418 Donner Pass Road Unit C
Truckee CA 96161
Date: Oct 5, 2021
Re: Scope of Work to Administer The Long-Term Rental Grant Pilot Program for The City of South Lake Tahoe
The Long-Term Rental Grant Program (the “Program”), originally piloted in Truckee, is geared at increasing the inventory of rental homes for local households. Long-term rental inventory is added to the local housing market by offering homeowners a one-time cash grant to encourage property owners to convert their homes and rooms into long-term rentals.

The following scope of work and budget are intended to respond to the City of South Lake Tahoe’s desire to test an incentive program to respond to the local-housing crisis residents face.

Incentive Structure

1. Incentive Amount

2. Term of Leases Permitted

3. Type of Properties allowed

4. Tenant Employment Restrictions
(1) Incentive Amount:
$2,000 grant per local housed (including children), up to $10,000 per home, with “local” defined below. The grant will be broken up into two payments: One at lease signing, and one at the 12-month mark
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(2) Term of Lease
Property owner would be required to sign a 12-month lease with the tenant(s) (3) Type of Units Allowed
First and foremost, we want to ensure that the properties and rooms participating in the Program were not previously long-term rentals and we are unlocking new housing units. Target housing inventory for the Program includes short-term rentals with expired permits, vacation and second homes, or rooms that are empty due to changes in property use or ownership (converting an office, empty nesters, recently purchased properties, etc.).

There are two requirements for the property:

1. The following types of housing units that will be eligible in the program:
● Single family homes, townhomes, and condos
● Room rentals (must be owner-occupied property)

2. The property must be located in the city limits of South Lake Tahoe. (4) Tenant Qualification Requirements:

Household income must not exceed 125% of the Area Median Income (AMI). For unrelated adults we will take the average of the income of each of the adults in the household.

Program Tasks
The following outlines the tasks that Landing Locals will complete to help administer the Program for the City of South Lake Tahoe.
1) Outreach and Education
Working with local homeowners, property managers, realtors, and other real estate professionals to get the word out about the program and ensure they understand how it works and how they can qualify for the incentive. This includes building a dedicated webpage on LandingLocals.com and dedicated (530) phone number for the program. 2) Customer Service
Responding to all inbound inquiries via web, email, and phone for qualifying properties to ensure homeowners understand the program and how they can qualify for the grant.. landing Locals will compile feedback on the program to inform program modifications.
3) Administration
Working with Staff to ensure we have backend operations to process and approve the grants. This includes setting up systems like Excel Spreadsheets and Dropbox folder.

Landing Locals would review leases, qualify tenants, and ensure property owners receive grant payment(s). To process the grants, Landing Locals will provide the City Staff with:
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● A signed copy of the lease agreement signed by property owner/manager and tenant(s)
● A w9 and check request from the property owner
● Supporting Income verification (w2, paystub, or tax return) to ensure household income does not exceed 125% AMI
4) Reporting
We'd identify a cadence for meeting and reporting out to stakeholders (Staff, Council).

We'd provide bi-weekly updates to Staff on results vs. targets and feedback we are hearing from renters, homeowners, property managers, and the public. 5) Auditing
Landing Locals would ensure the full lease term was executed and tenants are still meeting employment/income requirements by following up directly with the tenant and landlord. Landing Locals would also report back on the landlord's intentions after the initial lease to see what units remain long term rentals and which ones go back to their original use.

Proposed Program Budget and Timing
Dec 1, 2021 — Nov 30, 2022
Housing Grants: $200,000
● up to 100 housing grants at $2,000/each
Administration Fee: $72,000
● Billed monthly at $6,000/mo
Marketing/Advertising Costs: $14,000
● Postcard Mailing to Second-Home Owners ($4,000)
○ $0.40 per postcard to 10k addresses
● Various other marketing opportunities including setting up website, print, digital, and outreach opportunities geared at property owners ($10,000) Total Budget = $286,000
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EXHIBIT B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees (not to exceed) $86,000
(travel is included in the TOTAL (not to exceed amount) TOTAL (not to exceed) $ 86,000
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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.

Consultant:

Colin Frolich, Chief Executive Officer
By:

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Resolution 2021-082 October 19, 2021 Page 1 of 2
Resolution 2021-082
Adopted by the City of South Lake Tahoe
City Council
October 19, 2021
Authorizing $500,000 of American Rescue Plan Act (ARPA) funds for use toward a long-term rental incentive pilot program

BACKGROUND
A. The American Rescue Plan Act (ARPA) ( Public Law No. 117-2) was signed into law by the President of the United States on March 11, 2021.

B. The Act appropriated Coronavirus State and Local Fiscal Recovery Funds for allocation by the U.S. Department of the Treasury to states, counties, metropolitan cities, and small cities with population under 50,000 (referred to as non-entitlement units of local government).

C. On June 15, 2021 the City Council adopted Resolution 2021-052 establishing the special fund “Local Fiscal Recovery Fund” and authorizing the Director of Finance to accept all funds received under the American Rescue Plan Act and deposit them in the Local Fiscal Recovery Fund.

D. On June 15, 2021 the City Council considered a list of potential projects for ARPA funding and requested that City staff develop a Long-Term Rental Incentive Pilot Program for ARPA funding appropriation of $500,000.

E. As economic conditions and workforce behaviors changed as a result of the Coronavirus pandemic, the City of South Lake Tahoe experienced heightened real estate activity due to worker ability to work remotely and live further from their place of employment. This heightened market impacted the supply of single-family residences available for rent as homes previously used as rentals sold to owners looking to live in the home. These impacts contributed to an existing shortage of long-term rental supply and increased rental rates.

F. The City of South Lake Tahoe has historically had a large inventory of vacant “ second homes” along with Vacation Home Rentals ( VHRs) that have lost permits as a result of measure T, the owners of which maybe incentivized to convert to long-term rentals.

G. The impact to the housing market occurred at a time when many workers within the community lost wages as businesses dependent on tourism and recreation were impacted by the Coronavirus pandemic. As businesses and public agencies became able to return to pre pandemic operations, re-hiring workers became a barrier due to a shortage of rental housing availability.

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Resolution 2021-082 October 19, 2021 Page 2 of 2
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Finds that establishment of a Long-Term Rental Incentive Grant Pilot Program will address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector.

2. Authorizes the appropriation of ARPA funds into the fiscal year 2021/2022 budget as follows:

Local Fiscal Recovery Fund/ARPA Account Number: 264-01952 ARPA Revenue 33132: $ 500,000
Transfer out to Housing CIP 50036: $ 500,000
LT Rental Incentive Pilot Program Housing CIP Account Number: 320-30003 Transfer In from ARPA 36375: $ 500,000
Professional services 42020: $ 86,000
Grant payments 4XXXX: $ 200,000
Property Maintenance Incentive Program Expenses 4XXXX: $ 214,000 Adopted by the City of South Lake Tahoe City Council on October 19, 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.

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870
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: August 9, 2022
Agenda Item #: 26
Agenda Item: An Ordinance Amending City Code Chapter 3.45 (Purchasing) to clarify language regarding Bidding Process and Update Public Contract Procurement Thresholds (First Reading) Executive Summary: The City Council adopted the California Uniform Public Construction Cost Accounting Act (CUPCCAA) on April 1, 2014. CUPCCAA is a voluntary streamlined, public project procurement program established by the State of California. These procedures and procurement thresholds have been in the City Code, Purchasing- title 3.45 Article II, since approval in 2014. The threshold limits determining Formal versus Informal bidding are established by the State of California and are adjusted periodically. Updates are proposed to increase these thresholds to align with the CUPCCAA established posted thresholds, as well as to clarify language in Bid Protest Section

3.45.020 E. and Section 3.45.030 Informal Bidding C. regarding the award criteria for Professional Services Agreements. Staff is recommending removing Section 3.45.210 Blanket Purchase Orders, which are no longer used since most staff members use a City issued Cal Card for most small purchases.

Requested Action / Suggested Motions: Pass a Motion to Hold a First Reading (By Title Only) of an Ordinance amending Chapter 3.45 (Purchasing) of the South Lake Tahoe City Code to clarify language regarding bidding process and update Public Contract procurement thresholds, and refer to second reading for an adoption to the September 6, 2022, meeting.

Responsible Staff Member: Lori Marino, Principal Management Analyst Responsible Staff Member: Lori Marino, Principal Management Analyst (530) 542-7410 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Finance Director
Heather Stroud, City Attorney
Attachments:
01-Staff Report-Ordinance - Amendment Purchasing.docx
02-Ordinance - Amending Chapter 3.45 (Purchasing).docx
03-CSLT City Code_Purchasing_ Chapter 3 Redline Aug 2022.pdf 871
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City of South Lake Tahoe
Report to City Council
Meeting Date: August 9, 2022
Title: An Ordinance Amending City Code Chapter 3.45 (Purchasing) to clarify language regarding bidding process and update Public Contract procurement thresholds Location: Citywide
Responsible Staff Member: Lori Marino, Principal Management Analyst (530) 542- 7410 Background: The City Council adopted a comprehensive new Purchasing code to include and adopt the California Uniform Public Construction Cost Accounting Act (CUPCCAA) on April 1, 2014. CUPCCAA is a voluntary streamlined, public project procurement program, in which to use it, the City is required to adopt an ordinance setting forth its procedures for formal and informal bidding and adopt a resolution to become part of the CUPPCAA. These procedures and procurement thresholds have been in the City Code, Purchasing- title 3.45 Article II, since approval in 2014. The threshold limits determining Formal versus Informal bidding are established by the State of California and are adjusted periodically. Adjustments are permitted as necessary in the City Code. Since other minor clarifications are being made to City Code 3.45, the threshold limits can be updated and clarified as well.

Issue and Discussion: The proposed updates to section 3.45 of the City Code include the following updates:
 Section 3.45.020 Formal competitive bidding, subsection E. Bid Protests: Clarify the type of Bids subject to Bid Protests. Bid protests are permissible for Bid awards, not RFP or Concessionaire awards.
 Section 3.45.030 Informal Bidding, subsection C: Clarify the evaluation criteria in an award for Professional Services Agreements (PSA). A PSA is awarded a contract based solely upon evaluation of the qualifications held by responsible bidders, as opposed to the lowest responsible quote required with a BID award.  Section 3.45.110 Director of public works authority: Increase thresholds from $45,000 to $60,000 and from $175,000 to $200,000 for public projects contracts per the State Uniform Public Construction Cost Accounting Legislative Act.  Section 3.45.120 Formal competitive bidding and Section 3.45.130 Informal bidding:

Increase thresholds from $175,000 to $200,000 for public projects subject to formal competitive bidding.
 Section 3.45.210: Remove Blanket Purchase Orders, which are no longer utilized within the City, as staff uses Cal Card procurement cards for most small purchases. 872
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Financial Implications: City Code along with Financial Policies that are up to date with current laws, governmental accounting standards and compliance are essential to the prudent financial management of the City’s assets and resources.

Environmental Considerations: These Amendments are exempt from CEQA under State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). Section 15061(b)(3) of the CEQA Guidelines states that an activity is covered by the commonsense exemption that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.

Policy Implications: Applicable adopted policies include:

Finance Policy – Procurement Policy and Procedures
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Ordinance 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
September 6, 2022
Amending Chapter 3.45-Purchasing of the South Lake Tahoe City Code to clarify language regarding Bidding Process and update Public Contract procurement thresholds.

FINDINGS
A. The City Council previously adopted regulations, policies, and procedures associated with making the City’s purchase of materials, supplies, equipment, nonpublic and public projects.

B. Section 3.45.020 E. Bid Protests proposes to clarify the type of Bids subject to Bid Protests. Bid protests are permissible for Bid awards. Request for Proposals or Concessionaire awards are not based on quantitative bids; they are awarded based on qualifications and are not subject to Bid Protests.

C. Section 3.45.030 Informal Bidding, C, proposes to clarify the evaluation criteria in awarding a Professional Services Agreements (PSA). A PSA is awarded based solely upon evaluation of the qualifications held by responsible bidders, as opposed to the lowest responsible quote required with a BID award.

D. Article II, Public Contracts and the Uniform Public Construction Cost Accounting Act, sections

3.45.110 and 3.45.120, propose increases to the bidding thresholds per the established State of California thresholds.

E. Section 3.45.210 proposes to remove Blanket Purchase Orders which are no longer used within the City. City issued Cal Card procurement cards are used for most small purchases, eliminating the need for Blanket Purchase Orders.

Now, Therefore, the City Council of City of South Lake Tahoe does ordain as follows:

SECTION 1. Chapter 3.45 of Title 3 of the South Lake Tahoe City Code is hereby adopted to read as follows:

Article I. Purchasing of Materials, Supplies, Equipment, and Nonpublic Projects

3.45.020 Formal competitive bidding.

Where the cost of materials, supplies, equipment and services for nonpublic projects equals or exceeds a sum set forth by separate resolution of the city council, the city manager shall require that a formal competitive bidding process be used by advertising on PlanetBids or another medium of similar scope and circulation. Where the cost of materials, supplies, equipment and services for nonpublic projects is less than the sum set forth by separate resolution of the city council, the city may select a contractor, supplier or provider without using a formal competitive bidding process. The 874
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city manager shall implement procedures for formal competitive bidding. Such procedures shall include the following guidelines:

A. Invitations to Bid, RFPs, and RFQs. Invitations to bid, requests for proposals (RFP) and requests for qualifications (RFQ) shall include specifications that describe the material, supplies, equipment and services for nonpublic projects with sufficient particularity to allow for competitive bidding and evaluation. The specifications shall also describe the functions and performance that are required.

B. Bid Opening. A bid opening will occur at a time and place noticed in the invitation to bid, RFP or RFQ.

C. Award of Contracts. Contracts for materials, supplies, equipment and services for nonpublic projects shall be awarded to the lowest qualified responsible bidder with the following exception: Where a contract is for professional services, the city is authorized to award contracts based solely upon evaluation of the qualifications held by responsible bidders.

D. Waiver of Defects and Technicalities. The city may waive defects and technicalities when to do so would be in the best interests of the city.

E. Bid Protests.

1. A nonselected bidder may protest award of an Invitation to Bid by submitting a written bid protest which shall be received by the city clerk no later than seven calendar days after the city’s selection of the winning bidder or no later than 10 calendar days from the date that the city issues notice of designation of a bidder as nonresponsible. A nonselected proposer may not protest the award of a Professional Service or Concessionaire Agreement.

2. The bid protest shall state all grounds claimed for the protest and include supporting documentation. Failure to clearly state the grounds for the protest and provide supporting documentation shall be deemed a waiver of all protest rights.

3. Where award of the contract is to be made by the city council, the city clerk shall place a discussion of the bid protest on the next regularly scheduled council meeting agenda and the city council shall determine whether, based on the protest, to award the contract to the selected bidder, to reject all bids, or to award the contract to the next lowest responsible bidder.

F. Local Business Preference. The city shall apply a five percent discount to all local businesses which submit bids for materials, supplies, equipment and services for nonpublic projects. The city shall evaluate the local businesses’ bids as though the bid had been submitted at a cost of five percent lower than the cost submitted.

G. Bidder’s Security. When deemed necessary, bidders’ security may be prescribed in invitations to bid, RFPs, and RFQs. 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 the contract.
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3.45.030 Informal bidding.

Where the cost of materials, supplies, equipment and services for nonpublic projects is less than a sum set forth by separate resolution of the city council, the city manager shall require that an informal bidding process be used. The city manager shall implement procedures for informal bidding. Such procedures shall include the following guidelines:

A. The city manager or his or her designee shall obtain three quotes for the materials, supplies, equipment or services for nonpublic projects; documentation of said quotes shall be submitted to the finance department.

B. Though the quotes need not be submitted to the city in writing, for each quote received, the city manager or his or her designee shall document the quote in writing.

C. The city manager or his or her designee shall select the lowest responsible quote, with the following exception: where a contract is for professional services, the city is authorized to award contracts based solely upon evaluation of the qualifications held by responsible bidders.

3.45.040 Control procedures.

The city manager shall institute procedures for the execution of contracts and purchase orders as required herein. The city attorney shall approve the form and legality of all written agreements prior to the execution thereof.

3.45.050 Bifurcation of purchases.

No acquisition of materials, supplies, equipment or services from a single vendor, provider or contractor shall be accomplished by the issuance of several purchase orders or contracts for portions thereof.

3.45.060 Sole source purchases.

Where an acquisition would otherwise be subject to competitive bidding, the acquisition of materials, supplies, equipment or services from a sole source may be permitted only where the requesting department submits to the finance department and the city attorney’s office an explanation as to why a sole source is necessary and in the best interest of the city.

3.45.070 Emergency purchases.

Whenever the procedures set forth in this chapter would result in hazardous delays, loss to the city, or damage to life, health or convenience of citizens, the city manager or his/her designee may purchase materials, supplies, equipment or services.

3.45.080 Environmentally preferable products.

The city desires to purchase environmentally preferable products that minimize environmental impacts, reduce waste by increasing product efficiency, contain recycled content, and contain U.S.

Environmental Protection Agency Energy Star-certified materials whenever economically feasible.

3.45.090 Cooperative purchasing.
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Where another governmental agency performs a solicitation and/or bid process for the city and/or multiple agencies or jurisdictions, and where the purchase of materials, supplies and equipment is based on an agreement or cooperative purchasing program pursuant to authority granted by statute or ordinance, pursuant to contractual arrangement between the city and said governmental agency, or pursuant to a determination by the city manager that the governmental agency conducted a competitive bidding process, the city may purchase materials, supplies and equipment based upon the governmental agency’s solicitation and/or bid process without complying with the bidding requirements of this chapter.

3.45.095 Valid business and professions tax certificate.1 The city shall not render payment to any vendor or professional services provider where such vendor or provider does not possess a valid South Lake Tahoe business and professions tax certificate.

Article II. Public Contracts and the Uniform Public Construction Cost Accounting Act

3.45.100 Requirements for public projects.

Awarding contracts for public projects shall be in accordance with the Uniform Public Construction Cost Accounting Act (the “Act”) (Public Contract Code Section 22000 et seq. or any successor provision thereto) for all public projects except those in which grant funds require alternate bidding procedures.

3.45.110 Director of public works authority.

A. Public project contracts of $60,000 or less may be executed by the director of public works or his or her designee by force account, negotiated contract, or purchase order.

This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

B. Public project contracts of $200,000 or less may be executed by the director of public works or his or her designee in accordance with the provisions of this article. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

3.45.120 Formal competitive bidding.

Public projects of greater than $200,000 shall be bid in accordance with the procedures set forth in Public Contract Code Section 22037 et seq. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

3.45.130 Informal bidding.

A. Monetary Limit. Public contracts of $200,000 or less may be let to contract by informal procedures as set forth in this section. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

B. Contractors List. The city shall maintain a contractors list and contractors shall be selected to perform public projects in accordance with the provisions of Public Contract Code Section 22034.
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C. Notice Inviting Informal Bids. Not less than 10 calendar days before bids are due, the city will mail notices inviting informal bids to all contractors on the contractors list and/or all trade journals specified in Public Contract Code Section 22034(b). a. If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission.
b. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
c. The notice inviting informal bids shall include specifications that describe the public project with sufficient particularity to allow for competitive bidding and evaluation. The specifications shall also describe the functions and performance that are required.

3.45.140 Waiver of irregularities and rejection of bids.

A. At its discretion, the city may waive any irregularity in any bid received and award the contract.

B. At its discretion, the city may reject all bids presented and may readvertise the project.

C. At its discretion, the city may abandon the project.

3.45.150 Lowest responsible bidder.

Contracts for public projects shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses. In determining the lowest responsible bidder, the following factors may be considered in addition to price:

A. The ability, capacity and skill of the bidder to perform the contract or provide the service required;
B. The character, integrity, reputation, judgment, experience, efficiency and performance demonstrated in previous contracts or services for the city; C. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the services;
D. The ability of the bidder to provide future maintenance for service for the public project.

3.45.160 Prohibition against splitting projects.

It shall be unlawful to split or separate any public project into smaller work orders or projects for the purpose of circumventing or evading the requirements of the Act.

3.45.170 Change orders.

The director of public works is delegated authority to approve, without seeking new bids, contract change orders to public projects up to the combined amounts authorized in this chapter so long as the combined amounts are within the approved project budget. 878
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3.45.180 Emergencies.

In cases of emergency, when repair or replacements are necessary, the governing body may proceed to replace or repair any public facility by complying with Public Contract Code Section 22050.

Article III. Expenditure of City Funds

3.45.190 Award of contracts by city council.

All contracts for supplies and services involving an expenditure beyond the spending limit authority of a department or employee shall be awarded by the city council.

3.45.200 Procurement methods.

Expenditure of city funds for all materials, supplies, equipment and services (for both public projects and nonpublic projects) shall be made using the following methods:

A. City-issued CalCards, or other approved credit cards, shall be used for purchases of materials, supplies, and equipment of a monetary amount set forth by separate resolution of the city council. Where city-issued CalCards are not accepted, invoices accompanied by a city purchase order may be used for purchases of materials, supplies, and equipment equal to this amount.

B. Invoices (submitted to the city’s accounts payable division) shall be used for purchases of materials, supplies and equipment of a monetary amount set forth by separate resolution of the city council.

C. Invoices accompanied by a city purchase order signed by a city employee possessing the authority to approve such a purchase order shall be used for all services of a monetary amount set forth by separate resolution of the city council.

D. Written contracts shall be used for all materials, supplies, equipment, and services of a monetary amount set forth by separate resolution of the city council.

SECTION 2. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 3. The City Clerk is directed to certify this ordinance and cause it to be published in the manner required by law.

SECTION 4. This ordinance shall become effective thirty days after the date of its adoption.

Adopted by the City of South Lake Tahoe City Council on August 9, 2022 by the following vote:
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Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Devin Middlebrook, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
First Reading:

Published:

Second Reading:

Effective:

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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South Lake Tahoe City Code
Chapter 3.45 PURCHASING