South Lake Tahoe City Council
September 6, 2022

1 City of South Lake Tahoe
City Council
Meeting Agenda
Tuesday, September 06, 2022 at 9:00 AM
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe City Council
Devin Middlebrook, Mayor
Cristi Creegan, Mayor Pro Tem
Cody Bass, Councilmember
John Friedrich, Councilmember
Tamara Wallace, Councilmember
Mission of the City Council
The City Council exists to represent the public
interest, to oversee the City's operations and to
plan for the City's future.

Public Participation
City Council meetings are held in person at the time and location listed on this agenda. Meetings are live-streamed on Channel 21, City website at www.cityofslt.us, and via ZOOM at this link https://us06web.zoom.us/j/87665073301 A public agenda packet is available for review at City Hall, 1901 Lisa Maloff Way, on the City’s Website at www.cityofslt.us, or by contacting the City Clerk’s Office, (530) 542-6005 or [email protected] Providing Public Comment:

In Person: Every agenda for regular meetings provides an opportunity for members of the public to directly address the legislative body (City Council), on any item of public interest which is within the jurisdiction of the City Council during Public Communications. For items on the agenda or in connection with any item which the City Council will consider, the public is given the opportunity to comment before or during the City Council's consideration of the item [Government Code Section 54954.3(a)].

By Phone: If you are joining the meeting via ZOOM and would like to make a comment, press the “raise a hand” button.

If you are joining the meeting via Channel 21 or live stream and would like to make a comment, please call (530) 542-6500. The meeting ID is ID: 876 6507 3301 press *9 to indicate a desire to make a comment. Press *6 to unmute your phone. The Clerk will call you by the last three digits of your phone number when it is your turn to speak.

In Writing: Written comments received by 3 p.m. the day before the meeting will be distributed to City Council prior to the meeting. Written public comment regarding any item on this agenda may be sent to [email protected].

When emailing comments, identify the agenda item number in the subject line to which your comments relate. Any such comment that is a public record and is emailed to [email protected] or otherwise provided to a majority of the City Council before the meeting will be made available for public inspection during normal business 1 2
hours at the City Clerk's Office located at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe [Government Code Section 54957.5(b)]. Written comments will not be read out loud during the meeting.

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 (530) 542-6005 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].

Spanish Interpretations: The public may access Spanish interpretation using the ZOOM link listed on the front of the Agenda from an internet device (smartphone, laptop, tablet, home computer) with audio capabilities and selecting the Spanish language option. Persons without an internet device may attend the meeting in-person and a device will be provided while supplies last. Requests for interpreter services to offer public comment may be made by contacting the City Clerk.

Call to Order/Pledge of Allegiance
Roll Call
Closed Session Report
City Employee Recognition

1. City Employee Recognitions
Requested Action / Suggested Motions: Two employees will be recognized for reaching 15 Years-Service.

Responsible Staff Member: Various
Item 1 - Executive Summary.pdf
01-Staff Report 09 06 2022.pdf
Proclamation

2. Proclamation - Recognizing September 17-23, 2022 as "Constitution Week" Requested Action / Suggested Motions: Issue a Proclamation to Laura Trimberger, Regent, Lake Tahoe Chapter, National Society Daughters of the American Revolution, recognizing September 17-23, 2022 as "Constitution Week".

Responsible Staff Member: Susan Blankenship, City Clerk Item 2 - Executive Summary.pdf
Proclamation - National Constitution Week.docx
Public Communications
This is the public's opportunity to speak on any topic NOT LISTED on this agenda. Comments shall be limited to four (4) minutes. In accordance with the Brown Act, the City Council cannot deliberate or vote on any matter raised under public communications, but may briefly respond to statements made or questions posed. (Government Code Sections 54954.2)
City Commission Reports
Presentations
2 3

3. Lake Tahoe Transportation Action Plan
Requested Action / Suggested Motions: Receive presentation and provide direction to staff on potential Resolution.

Responsible Staff Members: Joseph Irvin, City Manager and Anush Nejad, Director of Public works Item 3 - Executive Summary.pdf
01-Staff Report-TRPA Transportation Action Plan
02 - Transportation Action Plan
03 - Bi-State Commitment Letter
04 - Presentation
Consent Agenda
Public Comment - This is the public's opportunity to speak on any topic listed on the Consent Agenda. Comments shall be limited to three (3) minutes.

The consent agenda consists of items of a repeating or routine nature considered under a single action. Any Councilmember may have an item on the consent agenda removed and considered separately upon request.

Pass a Motion to adopt the Consent Agenda in one motion except as indicated at each item.

4. City Council Meeting Minutes
Requested Action / Suggested Motions: Pass a Motion approving the August 9, 2022 City Council and South Tahoe Joint Powers Financing Authority meeting minutes Responsible Staff Member: Susan Blankenship, City Clerk Item 4 - Executive Summary.pdf
08 09 2022 minutes.pdf

5. Investment Portfolio Report - June 30, 2022
Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Item 5 - Executive Summary.pdf
01-Staff Report Investment Report June 22.docx
02-Operations Cash 06 30 2022.pdf
03-Fiscal Agent 06 30 2022.pdf
04-Graph 06 30 2022.pdf
05-Cash June 2022.pdf

6. Fiscal Year 2022-2023 Investment Policy and Authority Requested Action / Suggested Motions: Pass a Resolution delegating investment authority to the City Treasurer and reconfirming and adopting the City Investment Policy for the year October 1, 2022 to September 30, 2023.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Item 6 - Executive Summary.pdf
01-Staff Report Investment Policy rv.docx
02-Resolution Investment Policy 2022_2023.docx
03-Investment Policy - 2022-2023 redline (Exh. A to Reso) rv.pdf 04-Investment Policy - 2022-2023 final rv.pdf

7. Fiscal Year 2021-22 Quarterly Financial Status Report - Quarter Ending June 2022 Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member: Andrew Black, Financial Services Supervisor 3 4
Item 7 - Executive Summary.pdf
01-Staff Report - Financial Status Report.docx
02-FY 2021-22 Qtrly Budget Report June 2022.pdf

8. Ordinance - Amending City Code Chapter 3.45 (Purchasing) to Clarify Language Regarding Bidding Process and Update Public Contract Procurement Thresholds (Second Reading) Requested Action / Suggested Motions: Pass an Ordinance amending Chapter 3.45 (Purchasing) of the South Lake Tahoe City Code to clarify language regarding the bidding process and update public contract procurement thresholds.

Responsible Staff Member: Lori Marino, Principal Management Analyst Item 8 - Executive Summary.pdf
01-Staff Report - Ordinance Purchasing Amendments.docx
02-Ordinance - Amending Chapter 3.45 Purchasing.docx
03-CSLT City Code Purchasing Chapter 3 Redline.pdf
04-Notice of Publication Amending Chapter 3.45 (Purchasing).pdf

9. California Office of Traffic Safety Enforcement Grant Fiscal Year 2022-2023 Requested Action / Suggested Motions: Pass a Resolution authorizing the application, budget, and reimbursement of grant award by California Office of Traffic Safety (OTS) for a Selective Traffic Enforcement Program (STEP) in amount up to $65,000.00, and upon final approval from OTS, authorizing the Mayor to execute the grant agreement.

Responsible Staff Member: David Stevenson, Chief of Police Item 9 - Executive Summary.pdf
01-Staff Report - Traffic Enforcement Grant.docx
02-Resolution - Traffic Enforcement Grant.docx
03-OTS Tenative Grant Approval Email 080422.pdf
04-OTS Grant Application 081722.pdf

10. State Water Resources Control Board Grant Funding and Contract Award to Herback General Engineering for Tahoe Valley Stormwater and Greenbelt Improvement Project Requested Action / Suggested Motions: (1) Pass a Resolution accepting and appropriating State Water Resources Control Board (SWRCB) Proposition 1 implementation grant funding to the Tahoe Valley Stormwater and Greenbelt Improvement Project ($6,922,904); and (2) Pass a Motion authorizing and directing the Mayor to execute an agreement with Herback General Engineering in the amount of $6,688,511.36 and approve a 10% construction contingency in the amount of $668,852 for the Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase 1.

Responsible Staff Members: Stan Hill, Engineering Manager and Jason Burke, Complete Streets Manager
Item 10 - Executive Summary.pdf
01-Staff Report.docx
02-Project Location Map.pdf
03-Resolution-SWRCB Grant Acceptance.docx
04-Agreement-Herback.docx
05-Res 2021-017.pdf
06-Grant Agreement rv

11. Community Development Block Grant CV1 Subrecipient Agreement Amendment 2 for Catalyst Family Inc.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the City Manager to execute the Subrecipient Agreement Amendment 2 with Catalyst Family Inc., extending the term for 4 5
an additional year to May 1, 2023, and increasing the budget from $96,750 to $106,176 with a revised scope of work.

Responsible Staff Member: Lydia Zuniga, Housing Programs Coordinator Item 11 - Executive Summary.pdf
01-Staff Report - Subrecipient Agreement Amendment 2 with Catalyst Family.docx 02-C-101-2021 - Catalyst Family Subrecipient Agreement
03 - Catalyst Family Subrecipient Agreement Amendment 1 04-Catalyst Family Subrecipient Agreement Amendment 2

12. Agreement with Trella Tahoe, Inc. for Snow Removal Operations Requested Action / Suggested Motions: Pass a Motion authorizing and directing the City Manager to execute a contract with Trella Tahoe, Inc. for services related to snow removal operations at the Airport, Fire Department, Police Department, and Fire Rescue Facility, plus on-call service as needed for a term of November 1, 2022 to April 30, 2023 in an amount not to exceed $94,600.00.

Responsible Staff Member: John Dickinson, Airport Manager Item 12 - Executive Summary.pdf
01-Staff Report - Snow Removal Agreement - Trella.docx
02-Trella Tahoe Proposal.pdf
03-Professional Service Agreement with Trella Tahoe, Inc. for Snow Removal Operations.pdf

13. Agreement with JYB Solutions, LLC for Custodial Services Requested Action / Suggested Motions: Pass a Resolution Amending Fiscal Year 2022-2023 Budget by appropriating $46,439.00 from General Fund Undesignated Excess Reserves and authorizing and directing the Mayor to execute an Agreement with JYB Solutions, LLC for the City Hall/Airport Custodial Services for an amount not to exceed $46,439.00 for year one, for a term of one year with four one-year extensions.

Responsible Staff Member: John Dickinson, Airport Manager Item 13 - Executive Summary.pdf
01-Staff Report-Airport Custodial Services.docx
02-JYB Solution RFP Proposal.pdf
03-Professional Services Agreement with JYB for Airport Custodial Services.pdf 04-Resolution for Airport Custodial Services.docx

14. Contract with Consolidated Engineering, Inc. for Hangar Taxilane Replacement Project Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute a contract with Consolidated Engineering Inc. to reconstruct the taxilanes near the hangars at the Airport in an amount not to exceed $413,997.50 plus 10% construction contingency of $41,339.75 .

Responsible Staff Member: John Dickinson, Airport Manager Item 14 - Executive Summary.pdf
01-Staff Report - 2022 Taxilane Rehabilitation Agreement.docx 02-Consolidated Engineering Bid.pdf
03-Construction Contract -2022 Hangar Taxilane Rehabilitation Project.pdf

15. Agreement with SNG & Associates, Inc. for Design and Engineering Services for the Barton Ave & 2nd Street Drainage Project
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute a Professional Services Agreement with SNG & Associates, Inc. for Design & Engineering Services for the Barton Ave & 2nd Street Drainage Project for an amount not to exceed $214,780.

Responsible Staff Members: Stan Hill, Engineering Manager and Jason Burke, Complete Streets 5 6
Manager
Item 15 - Executive Summary.pdf
01-Staff_Report_-_Street_Drainage_Project__4_ (1).docx
02-Location Map and Photos
03-Professional Services Agreement
04-Resolution_2022-006

16. Acceptance and Appropriation of National Opioid Litigation Settlement Funds in the Amount of $44,480.70 for Year One
Requested Action / Suggested Motions: Pass a Resolution accepting and appropriating funds from the National Opioid Litigation Settlement.

Responsible Staff Member: Heather Stroud, City Attorney Item 16 - Executive Summary.pdf
01-Staff_Report.docx
02-Resolution.docx
03-Resolution No. 2021-105.pdf

17. Appropriation to fund two Liability Claims from MetLife Home and Auto and Robert Giacomini Requested Action / Suggested Motions: Pass a Resolution appropriating $7,674.21 from General Fund Undesignated Excess Reserves to pay two liability claims.

Responsible Staff Member: Rebecca Penado, Risk Manager
Item 17 - Executive Summary.pdf
01-Staff_Report-Budget_for_Claims.docx
02-Resolution_Budget for Claims.docx
Regular-Unfinished Business

18. Broadband Feasibility Study Presentation
Requested Action / Suggested Motions: City Council is asked to provide direction to the City Manager on the Broadband Feasibility Study and options to improve service in the South Lake Tahoe.

Responsible Staff Member: Anush Nejad, Director of Public Works Item 18 - Executive Summary.pdf
01- Staff Report - Broadband Services.docx
02 - CSLT Broadband Presentation .pptx
Regular-New Business

19. Pilot Traffic Calming Projects for Lakeview (Al Tahoe) and Highland Woods Neighborhoods Requested Action / Suggested Motions: Pass a Resolution appropriating $150,000 from the General Fund Undesignated Excess Reserves and authorizing and directing the City Manager to execute the necessary Purchase Orders for procurement of supplies and materials related to the traffic calming projects in the Lakeview and Highland Woods Neighborhoods.

Responsible Staff Members: Anush Nejad, Director of Public Works and Jerry Heath, Maintenance Manager
Item 19 - Executive Summary.pdf
01-Staff_Report_Pilot_Traffic_Calming_Projects.docx
02 - Traffic Calming Presentation.pptx
6 7
03-Resolution for Traffic Calming Project.docx

20. Vision Zero Goal and Grant Application of Safe Streets and Roads for All Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Director of Public Works to file a grant application with U.S. Department of Transportation for a grant in the amount of $250,000 to prepare a Vision Zero Action Plan.

Responsible Staff Member: Anush Nejad, Director of Public Works Item 20 - Executive Summary.pdf
01-Staff Report - Grant Application - Safe Streets and Roads for All.docx 02 - Vision Zero Project Area
03 - Draft Resolution for Vision Zero Policy
04 - TRPA Support Letter
05 - CAL Trans Draft Support Letter
06 - Presentation
07 - Resolution - Vision Zero Grant Application

21. Establishment of Johnson Blvd Utility Underground District Boundary Requested Action / Suggested Motions: Pass Resolution identifying the proposed Johnson Blvd Underground Utility District boundary and setting a date for a Public Hearing on November 1, 2022 at 9:00 a.m. (or as soon thereafter) to determine if the public necessity, health or safety requires the removal of overhead electric or communication facilities within all or part the proposed district boundary.

Responsible staff Members: Stan Hill, Engineering Manager and Anush Nejad, Director of Public Works
Item 21 - Executive Summary.pdf
01-Staff Report.docx
02-Resolution UUD District Boundary.docx
03-Johnson Blvd. UUD Boundary Map (Exh. A to Reso).pdf

22. Land Exchange with California Tahoe Conservancy
Requested Action / Suggested Motions: Pass a Resolution declaring seven City-owned parcels totaling approximately 181 acres (APNs 025-061-037, 025-081-013, 025-091-012, 031-030-020, 031-030-039, 080-010-013, and 080-020-008) to be exempt surplus property and authorizing the City Manager to negotiate a land exchange agreement for 18 parcels totaling approximately 7.1 acres owned by the California Tahoe Conservancy (APNs 023-686-016, 026-065-016, 027-010-016, 027-010-024, 027-010-029, 027-053-014, 027-073-005, 027-074-006, 027-112-013, 027-112-014, 027-112-015, 027-112-016, 027-112-017, 027-112-024, 027-134-022, 031-173-002, 031-173-004, and 032-090-013).

Responsible Staff Members: Hilary Roverud, Director of Development Services and Jason Burke, Complete Streets Program Manager
Item 22 - Executive Summary.pdf
01-Staff Report
02-Location Map
03-Land Exchange
04-Resolution.docx

23. New Financial Policy - Donation, Sponsorship, and Naming Rights Policy Requested Action / Suggested Motions: Pass a Resolution adopting New Financial Policy - Donation, Sponsorship, and Naming Rights Policy.

Responsible Staff Member: Lori Marino, Principal Management Analyst 7 8
Item 23 - Executive Summary.pdf
01-Staff Report - New Policy on Donation, Sponsorship, and Naming Rights.docx 02-Resolution - New Financial Policy on Donations, Sponsorship, and Naming Rights.docx 03- Financial Policies- Donations, Sponsorships, Naming Policy (Exh. A to Reso).docx Agenda Planning Calendar

24. Agenda Planning Calendar
Requested Action / Suggested Motions: A Councilmember may request that an item be placed on a future agenda. Upon the support of one (1) additional Council Member, direction shall be given to the City Manager to calendar the item for a convenient future agenda, but no sooner than the second meeting after the request was made, and/or modify the Agenda Planning Calendar as desired.

Responsible Staff Member: Joseph Irvin, City Manager
Item 24 - Executive Summary.pdf
APC - 09 01 2022.pdf
Updates and Announcements (City Attorney, City Clerk, City Manager) Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions Adjournment
I, Susan Blankenship, City Clerk for the City of South Lake Tahoe, declare that the foregoing agenda for the Tuesday September 6, 2022 meeting of the City of South Lake Tahoe City Council was posted and available for review on Thursday, September 1, 2022 at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe, CA 96150. The agenda was also available on the City website at https://www.cityofslt.us.

Signed September 1, 2022
\\sb\\
Susan Blankenship, Elected City Clerk
8 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 1
Agenda Item: City Employee Recognitions
Executive Summary: New City employees and long-serving City employees who reach the 5, 10, 15, 20, & 25 year service milestone will be recognized at each monthly meeting.

Requested Action / Suggested Motions: Two employees will be recognized for reaching 15 Years-Service.

Responsible Staff Member: Various
Responsible Staff Member: Various Departments
Reviewed and Approved By:

Susan Blankenship, City Clerk
Attachments:
01-Staff Report 09 06 2022.pdf
9 1
City of South Lake Tahoe
Report to City Council
Meeting Date: September 6, 2022
Title: City Employee Recognition
Location: Citywide
Responsible Staff Member: Various Department Directors
Background: As part of the City’s Employee Recognition Program, employees who have reached five, ten, fifteen, twenty and twenty-five years of service are recognized for their achievements and contributions to the City.

Service Awards:

Human Resources
Ember Buckman, Human Resources Analyst – 15 Years’ Service

Fire Department
Doug Bailey, Fire Suppression – 15 Years’ Service
Council Agenda Report September 6, 2022 Page 1 of 1
10 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 2
Agenda Item: Proclamation - Recognizing September 17-23, 2022 as "Constitution Week" Executive Summary: The City Clerk received a request on June 16, 2022, from Laura Trimberger, Regent, National Society Daughters of the American Revolution, for a Proclamation recognizing September 17-23, 2022 as "Constitution Week", to be presented at a future City Council meeting. On June 21, 2022, the City Clerk receive consensus from City Council to bring forward this Proclamation.

Requested Action / Suggested Motions: Issue a Proclamation to Laura Trimberger, Regent, Lake Tahoe Chapter, National Society Daughters of the American Revolution, recognizing September 17-23, 2022 as "Constitution Week".

Responsible Staff Member: Susan Blankenship, City Clerk Responsible Staff Member: Susan Blankenship, City Clerk (530) 542-6005 Reviewed and Approved By:

Attachments:

Proclamation - National Constitution Week.docx
11 City of South Lake Tahoe
Proclamation
Recognizing September 17-23, 2022, as
“Constitution Week”
Whereas, the Constitution of the United State of America, the guardian of our liberties, embodies the principles of limited government in a republic dedicated to rule by law; and
Whereas, September 17, 2021, marks the two hundred and thirtyfifth anniversary of the framing of the Constitution of the United States of America by the Constitutional Convention; and Whereas, it is fitting and proper to accord official recognition to this magnificent document and its memorable anniversary; and Whereas, Public Law 915 guarantees the issuing of a proclamation each year by the President of the United States of America designating September 17 through 23 as Constitution Week.

Now therefore, the City Council of the City of South Lake Tahoe do hereby proclaim the week of September 17 through 23 as “Constitution Week” and ask our citizens to reaffirm the ideals the framers of the Constitution had in 1787 by vigilantly protecting the freedoms guaranteed to us through this guardian of our liberties.
_____________________ __________________________
Devin Middlebrook, Mayor Susan Blankenship, City Clerk
September 6, 2022
12 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 3
Agenda Item: Lake Tahoe Transportation Action Plan
Executive Summary: The Lake Tahoe Transportation Action Plan has been developed by the Tahoe Regional Planning Agency (TRPA) in association with the cities, counties, and regional agencies in California and Nevada. The Action Plan is a product of the Bi-State Consultation and reflects the collaboration across local, state, and federal agencies. It prioritizes the most important transportation projects in the region and establishes funding-framed work to make these projects a reality.

Transportation investments are being secured through a "7-7-7" funding framework, with which each sector of partnership - local/regional governments and businesses, state agencies, and federal government- works to allocate additional investment of $7 million per year to fund the regional and local transportation projects.

Requested Action / Suggested Motions: Receive presentation and provide direction to staff on potential Resolution.

Responsible Staff Members: Joseph Irvin, City Manager and Anush Nejad, Director of Public works Responsible Staff Member: Joe Irvin, City Manager (530) 542-6043 Anush Nejad, Director of Public Works (530) 542-6031
Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report-TRPA Transportation Action Plan
02 - Transportation Action Plan
03 - Bi-State Commitment Letter
04 - Presentation
13 Council Agenda Report- September 6, 2022 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 6, 2022
Title: Lake Tahoe Transportation Action Plan
Location: Citywide
Responsible Staff Member: Joe Irvin, City Manager – (530) 542-6043 Anush Nejad, Director of Public Works – (530) 542-6031
Background: The Tahoe Regional Planning Agency (TRPA) has been working with local/regional governments, businesses, and state agencies in collaboration with the federal government to develop the 2020 Lake Tahoe Regional Transportation Plan (RTP). The RTP includes $2.4 billion in transportation projects to achieve the region's environmental, social, and economic goals for the next 25 years. This action plan represents a collective commitment to funding initial priority transportation projects from the RTP. The projects identified were developed in consultation with local government and State representatives.

Issue and Discussion: The projects identified in the Transportation Action Plan directly address the region's equity, environmental, economic, and climate goals. The action plan prioritizes the most important transportation projects and proposes a shared funding framework to fund these projects.

The shared “7-7-7” funding framework in which each sector of the partnership – local/regional governments and businesses, state agencies, and federal government – works to allocate an additional investment of $7 million per year toward the program. These investments can include congressionally designated funds, state budget support, local jurisdiction funding, and investment from local businesses, documented in the Transportation Action Plan (Attachment 2). Bi-State Commitment for State of California and Nevada is included as Attachment 3.

The Lake Tahoe Action Plan includes City of South Lake Tahoe Capital Improvement Program (CIP) projects that are regionally significant. Staff will continue to work with TRPA to include additional CIP projects in the next RTP update to be eligible for federal and state funding.

The City of South Lake Tahoe’s priority projects in the Lake Tahoe Action Plan include:
 Dennis T. Machida Memorial Trail – Herbert Ave to Van Sickle $14,500,000  Park Avenue and Lakeshore Blvd Complete Streets $6,500,000  Johnson Blvd Complete Streets Project $4,346,450
 Y-Mobility Hub $24,000,000
 Roadway/Trail Overlay & Rehabilitation $5,000,000
14 Council Agenda Report- September 6, 2022 Page 2 of 2 Other City Projects that were previously identified in the RTP include:
 South Tahoe Greenway Bike Trail, Phase 1C $5,500,000
 Pioneer Trail Pedestrian Project, Phase II $4,200,000  Johnson Blvd Complete Streets Project $6,500,000
 Stateline Complete Streets Project $6,200,000
Partners are in various stages of endorsing the 7-7-7 shared funding approach for Transportation.

Placer County has adopted a resolution of support, and both states have provided a joint letter endorsing the funding approach. As a partner, TRPA has requested that the City Council consider adopting a Resolution supporting the 7-7-7 shared funding framework. This general endorsement would help maintain momentum with the partnership. Staff will receive input from the Council and will return with an appropriate Resolution based on Council’s direction.

Financial Implications: The proposed funding strategy is a collaborative effort between TRPA and bi-state partner agencies, including the City of South Lake Tahoe. Each agency will endeavor to generate additional funding for projects within each responsible jurisdiction. The City is currently providing the matching funds for state and federal grants, which constitutes City’s contribution.

Environmental Considerations: Receiving this report and providing direction to staff is not approval of a project subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines sections 15352 and 15378 because it does not commit the City to a definite course of action regarding the projects listed within the Capital Improvement Plan and does not have the potential for resulting in either a direct or reasonably foreseeable indirect physical change to the environment.

Policy Implications: Receiving this report and providing direction to staff demonstrates the commitment to regional transportation efforts and the proposed funding framework. 15 LAKE TAHOE

TRANSPORTATION ACTION PLAN
August 2022
Photo by: Drone Promotions
16 Tahoe Transportation & the
Environmental Improvement Program
• 197 miles of bike and
pedestrian paths constructed or improved.
• 17 complete street
projects.
• 833 miles of roadway
renovated to reduce
stormwater pollution.
• 24 percent less car
trips.
• 29 percent reduction
in transportation GHG
emissions since 2005.
• 11 percent increase in
transit ridership.

ENVIRONMENTAL IMPROVEMENT PROGRAM
outdoor recreation and tourism
accounts for 60 percent of the lake
tahoe region’s $5 billion annual economy.
60percent
The Lake Tahoe Environmental Improvement actions results Program (EIP), created in 1997, has prioritized
transportation improvements as an environmental
strategy. Tahoe partners have developed a regional
vision for our transportation system, but major
transit and infrastructure investments are needed
to improve safety and address unsustainable peak
congestion for residents and visitors.

Lake Tahoe’s awe-inspiring environment has attracted visitors from across the globe and residents for generations. Today, its proximity to major metropolitan areas in Northern California and Nevada make it a natural outdoor playground for the growing millions of people looking for unparalleled summer and winter recreation opportunities.

This action plan represents the region’s approach to funding and implementing the projects needed to create a world-class transportation system at Tahoe. 2 Photo by Jarvis Photography
17 3
Projects for transit, trails, technology,
and communities provide a reliable,
safe, and convenient transportation
system.

Providing 15-minute service between town centers and
recreation destinations, 30-to 60-minute service between neighborhoods and town centers, and inter-regional service for commuters and visitors from neighboring regions.

Connecting people with information to make travel
around the region seamless, providing better data and
analysis, and ensuring charging facilities are available for electric vehicles.

Increasing trips by foot and bike by constructing 110
miles of new trails to connect our neighborhoods and
activity centers.

Providing comprehensive solutions to mobility through
a corridor planning framework connecting workers to
jobs, visitors to recreation, and residents to town centers, housing, and recreation. transit
technology
trails
communities and corridors
transportation
vision
Photo by Sarah Underhill 18
4 challenges
Lake Tahoe’s clarity and environment are threatened by vehicle impacts to the region including greenhouse gas emissions affecting climate change and roadway runoff degrading lake clarity.

Peak periods of congestion at popular recreation sites generate clogged roadways, inhibit equitable access, create unsafe conditions for visitors, and hamper commuters during peak seasons. Tahoe serves 15 million visitors per year, but state formula funding does not provide the needed support to manage peak visitation levels.

High local housing costs are pushing more of the workforce to reside outside the region constraining economic opportunity within the region. These pressures overwhelmingly impact the region’s most underserved community members.

Unfunded needs for priority projects total $400 million over the next 20 years, or a minimum of $20 million annually of new funding to achieve the desired Regional Transportation Plan project priorities and benefits. Without this funding, the region will not be able to achieve the important goals or meet statewide priorities.

Photo by Drone Promotions
19 5
The Bi-State Tahoe Regional Planning Compact directs Tahoe’s transportation programs to reduce dependency on the automobile. Since 2017, the Director of the Nevada Department of Conservation and Natural Resources and the Secretary of the California Natural Resources Agency have convened a Bi-State Consultation on Transportation for Lake Tahoe. The Bi-State working group brings together public and private sector partners to achieve needed transportation investment in the Tahoe Region.

Bi-State Consultation on Transportation
• Improved shuttle services and piloted microtransit projects to reduce traffic congestion. • New agreements between roadway agencies,
land managers, law enforcement, and other
key partners to manage Tahoe’s busy
recreation corridors.
• Successful adoption of the 2020 Lake Tahoe
Regional Transportation Plan including
establishing new transportation standards
and priorities.
• Building consensus on regional priorities and
a multi-sector funding strategy to deliver
transportation investments.
accomplishments
2017
Bi-State Established
2018
Bi-State Alignment Report
2021
Funding Option Memo
2022
Priority Project 7-7-7
Funding Strategy
Photo by Sarah Underhill
20 focus areas total cost secured need
Transit $574 m $67 m $507 m
Trails $67 m $3 m $64 m
Technology Integrated across focus areas
Communities & Corridors $291 m $12 m $279 m
Operations & Maintenance $20 m $5 m $15 m
TOTAL $952 m $87 m $865 m
The 2020 Lake Tahoe Regional Transportation Plan (RTP) contains $2.4 billion in transportation projects to achieve environmental, social, and economic goals over the next 25 years. This action plan represents a collaborative commitment to funding the highest priority transportation projects. Every Bi-State partner must take bold action to meet this funding need and implement regionally significant priority projects.

Bi-State partners have created an initial 10-year priority transportation project list. Projects are organized within focus areas to create an innovative transportation system at Tahoe. Partners determined funding needs and priority projects based on Lake Tahoe Basin plans, project lists, and regional importance.

Additional future revenue will be necessary to meet funding needs of the Regional Transportation Plan.

Each project directly addresses equity, environmental, economic, and climate goals.

Photo by Drone Promotions
from planning to action
Ten-year Unfunded Need
6 21
There is a minimum $20 million annual funding gap in known revenue sources to implement priority transportation projects that serve residents and visitors. Without this funding, the region will not be able to achieve the important goals set by the Regional Transportation Plan or meet statewide priorities.

Building on 25 years of success with the funding model of the Lake Tahoe Environmental Improvement Program (EIP), Bi-State partners have agreed to pursue a shared multi-sector funding framework called the “7-7-7” strategy. Federal, state, and local/private partners would each seek to contribute $7 million per year from each sector for high priority, regionally significant transportation projects in the region.

In the coming decades, partner agencies will fulfill their funding commitment and modernize the region’s transportation system connecting people to jobs, housing, and Tahoe’s world-renowned environment.

Big Investments in Transportation:

The Collaborative Approach
Regional Transportation Plan
Avg Annual Funding by Sector (2021-2045)
Federal
$20.7M/yr (26%)
7-7-7 Funding Target
Approx. $20M/yr
(25%)
Local $15.8M/yr
(19%)
State
$20.8M/yr (26%)
Private
$3.2M/yr (4%)
Federal
$7M/yr
Local/Private
$7M/yr
State
$7M/yr
Approx. $20M Annual Funding Target by Sector
Photo by TTD
CA: $4.5M/yr
NV: $2.5M/yr
7 22
8 funding
framework
local/
private
Multiple funding sources will be needed to fulfill the
7-7-7 strategy. Bi-State partners have developed a suite of potential funding sources to implement priority
projects. The potential revenue sources are summarized
below.

The 7-7-7 strategy aims to fill the regional funding gap.

Traditional funding sources will continue to be utilized to implement a wide variety of transportation projects
beyond this action plan.
california
revenue
target
nevada federal
potential revenue sources
$7 million/yr $4.5 million/yr $2.5 million/yr $7 million/yr Zonal congestion/
parking fee
Increased state
support for
existing & new
competitive grant
programs
Environmental
Improvement
Program bonds
Increased
formula funding
Local taxes (sales,
hotel, vacancy)
State formula
funding
allocations
Conserve Nevada
Program
New funding
programs
Fees, philanthropy,
or other sources
Direct budget
appropriation
Direct budget
appropriation
Direct budget
appropriation
Increased general
fund allocation
Increased state
support for
existing & new
competitive grant
programs
Photo by Novus Select
23 TRPA MAP DISCLAIMER: This map was developed and
produced by the TRPA GIS department. It is provided
for reference only and is not intended to show map
scale accuracy or all inclusive map features.

DATA SOURCES: TRPA
Tahoe Region Map
Major Highways
Tahoe Basin Boundary
CSLT Boundary
0 2.5 5 10
Miles
/50
89 89
267
28 89
/50
28 431
207
Transportation
Priority Project Map
Lake
Tahoe
State Route
28 Corridor
Dennis T. Machida
Memorial Greenway
State Route 89
Corridor and West
Shore Tahoe Trail
Fanny Bridge
Complete Streets Project
Washoe County
Community Mobility Plan
Regional Transit
Service
US 50 South Shore
Community
Revitalization Project
US 50 East
Shore Corridor
Resort Triangle Transit
Priority Lanes
9 24
safety climate
equity & access environment
The priority projects identified in the action
plan will deliver on-the-ground results and
contribute to the overall goals of the Regional
Transportation Plan.

Protect and enhance the environment,
promote energy conservation, and reduce
greenhouse gas (GHG) emissions. Design
infrastructure to be resilient to future
climate impacts and support emergency
evacuations during extreme events.

Reduce dependency on automobiles,
reducing related transportation
emissions and stormwater pollution.

Maintain infrastructure to maximize
environmental benefits.

Expand transit and trails to increase
equitable access to recreation
opportunities. Develop complete
streets connecting housing to jobs
and shopping for disadvantaged
communities.
measuring
success
Enhance safety for all, including
along major highway corridors that
have high levels of crashes and
multiple fatalities.
action plan priority
project benefits
Priority projects will achieve the above benefits by:
• Building 27.2 miles of trail.
• Serving 3 million transit riders.
• Implementing seven complete street projects.
• Building two new mobility hubs.
• Investing $20 million in operations and
maintenance.

Photo by
California Tahoe
Conservancy
10 25
11 Photo by Drone Promotions
Partners are committed to implementing priority projects over the next decade that will transform transportation at Tahoe.

With agreement on a funding strategy and initial priority project list, Bi-State partners are actively working to secure funding and implement projects. It will take the full partnership and public support to reach the ambitious targets outlined in this action plan.

At all levels, funding must be secured to meet the 7-7-7 funding strategy. These sources could include congressionally designated funds, state supported grant applications, local jurisdiction funding, and private investment from local businesses.

Recent accomplishments include:
• $2 million in congressionally designated funding for state Route 28 corridor implementation. • Approximately $700,000 in new annual support for transit operations. • Nevada passage of Senate Concurrent Resolution 8 (2021) to support transportation solutions at Lake Tahoe.
• California joint funding application with Placer County. • Public-private partnerships to launch micro-transit service on both the North and South Shores.

The transportation investments in this action plan are critically important to protect and preserve the lake, communities, and economy.

Moving Forward
Photo by Tom Lotshaw
26 Published by Tahoe Regional Planning Agency
August 2022

LAKE TAHOE TRANSPORTATION ACTION PLAN
A Blueprint for Climate Resilience
27 28
A Partnership to Advance
Transportation
City Council Meeting
September 6, 2022
29 Transportation Implementation
20+ Year
Long-Range
Regional Priority
Projects
Local Priorities
Capital
Improvement
Program
Capital
Improvement
Program
30 Transportation Action Plan
• Regionally significant transportation
priorities (10-year)
• Aligns State, Federal, Regional, and
Local policy objectives
• Illustrates project benefits
• Identifies unfunded need ($20M/yr.)
31 Shared Funding Commitment (7-7-7)
32 Transportation Implementation
20+ Year
Long-Range
Regional Priority
Projects
Local Implementation
Capital
Improvement
Program
Capital
Improvement
Program
33 • Largest Federal investment in surface transportation infrastructure in history - $567 billion
• Reauthorizes and establishes new grant programs – Over $100 billion over five years – increase opportunities for MPOs and local governments • Creates new formula programs to address the impacts of climate change and reduce carbon emissions from transportation
• Invests heavily in electrification
• Incentivizes planning & coordination
Infrastructure Investment and
Jobs Act (IIJA) AKA Bi-partisan Infrastructure Legislation (BIL) 34 Moving Forward & Maintaining
Momentum
• Working within local/private sector to fulfil the $7 million commitment
• Local support of 7-7-7 approach
• Ramp up for IIJA and State project applications
• Secure Local match & leverage existing local investment • Ongoing Regional Coordination of Implementation
• Tahoe Transportation Implementation Committee (TTIC)
• Sharing knowledge and success to advance the region
• Coordinated State and Federal communications/education 35 City of South Lake Tahoe
Project
36 Priority
Projects
Dennis T. Machida Memorial Trail – Herbert Ave to Van
Sickle $14,500,000
Park Avenue and Lakeshore Blvd Complete Streets
$6,500,000
Johnson Blvd Complete Streets Project
$4,346,450
Y-Mobility Hub
$24,000,000
Roadway/Trail Overlay & Rehabilitation
$5,000,000
37 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 4
Agenda Item: City Council Meeting Minutes
Executive Summary: City Council is asked to formally approve the August 9, 2022 City Council and South Tahoe Joint Powers Financing Authority meeting minutes.

Requested Action / Suggested Motions: Pass a Motion approving the Regular City Council and South Tahoe Joint Powers Financing Authority meeting minutes.

Responsible Staff Member: Susan Blankenship, City Clerk Responsible Staff Member: Susan Blankenship, City Clerk (530) 542-6005 Reviewed and Approved By:

Attachments:
08 09 2022 minutes.pdf
38 1
City of South Lake Tahoe
City Council and South Tahoe Joint Powers Financing
Authority
Meeting Minutes
Tuesday, August 09, 2022 at 9:00 AM
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe City Council
Devin Middlebrook, Mayor
Cristi Creegan, Mayor Pro Tem
Cody Bass, Councilmember
John Friedrich, Councilmember
Tamara Wallace, Councilmember
Mission of the City Council
The City Council exists to represent the public
interest, to oversee the City's operations and to
plan for the City's future.

Call to Order/Pledge of Allegiance
At 9:03 a.m. Mayor Middlebrook called the meeting to order. Middlebrook then led the pledge of allegiance to the flag.

Roll Call
Present were Mayor Middlebrook, Councilmembers Creegan, Friedrich and Wallace.

Councilmember Bass was absent from the meeting until 2:45 p.m.

Also present were City Manager Irvin, City Attorney Stroud, and City Clerk Blankenship.

Closed Session Report June 7, 2022
Conference with Legal Counsel – Existing Litigation – Government Code section 54956.9(d)(1)
Case: Sophie Tetlow v. City of South Lake Tahoe, Workers’ Compensation Appeals Board Case No. ADJ10112646
Action: Lawsuit was settled for $35,000 by Compromise and Release to Ms.Tetlow.

Closed Session Report August 9, 2022
Conference with Legal Counsel – Existing Litigation – Government Code section 54956.9(d)(1)
Case: Christopher Wildman v. City of South Lake Tahoe, Workers’ Compensation Appeals Board Case Nos. ADJ14818866 and ADJ10106166
Action: No reportable action.

City Employee Recognition

1. Swearing In Ceremony - Fire Chief
Action: The City Clerk administered the Oath of Office to Fire Chief Jim Drennan. 39 2
08 09 2022 Minutes

2. City Employee Recognitions
Action: The following employees were introduced to City Council: Public Works - Hans Bonnicksen and John Dickinson, Fire Department - Tom Kerley, Police Department – Mathew Hazelet and Aaron Devine, Parks and Recreation - Justin Gomes, Daniel Youngblood and Adan Pulido.

Service Awards were presented to the following employees: Police Department - Jillian Gard for reaching 20 Years-Service, and Ashely Acker, Jenifer Canin and Timothy Peterson for reaching 5 Years-Service; Development Services - David Chapman for reaching 10 Years-Service; and City Clerk Department - Joanne McDonough for reaching 5 years-Service.

Public Communications
Public Comment was heard from the following people:

1. Bruce Fritz- neighbor dispute

2. Dan Brown, Lake Tahoe Veterans Alliance - Memorial, veterans and senior transportation services *material distributed

3. Sherry Eddy - unnecessary displays of LGBTQ

4. Name not provided - Fire Wise Community Montgomery Estates, fuel reduction, Fire Prevention Week

5. Seth Howard, Carpenters Union – local Union opportunities

6. Al Martinez, South Tahoe Fire Association - congratulations to Chief Drennan

7. Nancy Fagan – unnecessary displays of LGBTQ

8. Scott Robbins – workforce housing crisis

9. Ed Mosur – street striping, TID Business loan forgiveness

10. Colleen Bye– LGBTQ support
Written Comments were received from the following person:

11. Allen Miller – Toxic waste from cell towers

12. Linda Witters – Fire hazard conditions on Johnson Blvd.

City Commission Reports
None.

Presentations

3. Climate Action Plan Update and Civic Spark Fellow Close of Service Action: Received and filed.

The following people addressed City Council

1. Jenny Hatch, Sierra Nevada Alliance

2. Zoe Kusnick, Civic Spark Fellow
Public Comment was heard from the following people:

3. Sherry Eddy

4. Patricia Sussman, 100% Renewable Committee

5. Nick Speal

6. Ed Mosur

7. Jackson Realo

8. Scott Robbins

9. LW

10. Colleen Bye

11. Nick Exline

12. Molly Armanino *written comment also received
Written Public Comment was received from the following people:

13. Bob Niedermeir

14. Meredith Anderson
40 3
08 09 2022 Minutes
Consent Agenda
Action: Moved/Seconded: Wallace/Creegan
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Consent Agenda with noted recusals.

4. City Council Meeting Minutes
Action: Passed Motion 2022-077 approving the June 7, 2022 Regular City Council meeting minutes and June 21, 2022 City Council and South Tahoe Redevelopment Successor Agency meeting minutes.

5. Revised Fiscal Year 2020-2021 and Fiscal Year 2021-2022 Appropriation Limits Action: 1) Passed Resolution 2022-091 establishing the revised Appropriation Limit for Fiscal Year 2020-2021 in the amount of $83,178,448; and 2) Passed Resolution 2022-092 establishing the revised Appropriation Limit for Fiscal Year 2021-2022 in the amount of $88,788,841, in compliance with Proposition 111.

6. Financial Policy Amendments to Procurement, Travel and Training, and Capital Investments Policies
Action: Passed Resolution 2022-093 Approving Amendments to Financial Policies Regarding Procurement, Travel and Training, and Preserving Capital Investments.

Public Comment was heard from the following person:

1. Ed Mosur

7. Purchase of a Loader and Cut-Off Gates for City Snow Operations Action: Passed Resolution 2022-094 appropriating $454,295 from the Measure S Sales Tax fund and authorizing the purchase of one John Deere Loader (2021) from Pape Machinery, Inc. for $357,794.50 and eight (8) Bolt Type Henke Hi-Gate for Graders from Holt of California for $96,500.40 through Sourcewell Cooperative Purchasing Agreement for City Snow Operations Public Comment was heard from the following person:

1. Nick Speal

8. Sole Source Purchase of a Vehicle from Champion Chevrolet Action: Passed Motion 2022-078 approving a sole source purchase and authorizing and directing the City Manager to sign a Purchase Order with Champion Chevrolet for $51,027.43 to purchase a 2023 Chevrolet Silverado for the Public Works Department.

9. Cost-Sharing Agreement with Tahoe Meadows for the Installation of LED Flashing Stop Signs
Action: (1) Passed Resolution 2022-095 authorizing acceptance of $5000 from Tahoe Meadows for LED flashing stop signs; and (2) Pass a Motion authorizing and directing the Mayor to execute cost-sharing agreement C-132-2022 with Tahoe Meadows for installation of LED flashing stop signs.

Public Comment was heard from the following people:

1. Ed Mosur

2. Nick Speal

3. Ron Yank, Tahoe Meadows

10. Lease Agreement with Tahoe Art League for Art Building Note: Councilmember Creegan recused herself from this item due to financial interest in the area.

Action: Passed Motion 2022-080 authorizing and directing the Mayor to execute Lease Agreement C-133-2022 with Tahoe Art League for a 10-year term for use of the Art Building located at 3062 Lake Tahoe Boulevard.
41 4
08 09 2022 Minutes

11. Cannabis Community Benefit Grant Program Awards and Payment Authorization Action: Passed Motion 2022-081 authorizing and directing the City Manager to execute grant agreements in the amount of $50,000 with Tahoe Youth and Family Services C-136-2022 and Tahoe Coalition for the Homeless C-137-2022, and issue payments to awardees for 2022 Community Benefit Grant Program.

12. Grant Application to California Public Utilities Commission for Broadband Technical Assistance Program
Action: Passed Resolution 2022-096 authorizing submittal of a grant application to the California Public Utilities Commission for pre-construction expenses related to broadband deployment for an amount of $500,000.

13. Ordinance - Ballot Measure to Convert Existing Community Benefit Fee to Comparable Cannabis Business and Professions Tax (Second Reading)
Action: Passed Ordinance 2022-1164 Amending Chapter 3.35 of Title 3 of the South Lake Tahoe City Code to Add Article III to Impose a Cannabis Business and Professions Tax Upon Approval By Voters.

Public Comment was heard from the following people:

1. Ed Mosur

2. Nick Speal

3. Scott Robbins
Note: Item 14 was moved to the end of the agenda.

Regular-Unfinished Business

15. Memorandum of Understanding with Lake Tahoe Unified School District (LTUSD) for Park Ranger Program
Action: Moved/Seconded: Friedrich/Creegan
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: 1) Passed Motion 2022-082 authorizing the Mayor to Execute a Memorandum of Understanding with Lake Tahoe Unified School District (LTUSD) C-138-2022 to support partial funding for the Park Ranger Program. 2) Passed Resolution 2022-098 authorizing $67,000 reimbursement grant funding from LTUSD to fund a Park Ranger Coordinator Position.

16. Tahoe Valley Stormwater and Greenbelt Improvement Project Update and Request for Appropriation of Grant Matching Funds
Action: Moved/Seconded: Wallace/Friedrich
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: 1) Received status update on the Tahoe Valley Greenbelt Project; and 2) Passed Resolution 2022-099 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.

Public Comment was heard from the following people:

1. Nick Speal, Lake Tahoe Bicycle Coalition

2. Steve Teshara
Written Comment was received from the following people:

3. Lake Tahoe Bicycle Coalition

4. Keep Tahoe Blue
42 5
08 09 2022 Minutes

17. American Rescue Plan Act of 2021 (ARPA) Funding Appropriations Action: Moved/Seconded: Friedrich/Creegan
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Resolution 2022-100 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.

Public Comment was heard from the following people:

1. David Gregorich, Parks and Recreation Commission

2. Nick Speal
Note: Item 18 was moved to the end of the agenda.

Regular-New Business

19. Citizen Appointments to Commissions and Boards – Building & Housing Board of Appeals Action: Moved/Seconded: Friedrich/Wallace
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: City Council 1) Passed Motion 2022-083 appointing Seth Howard to serve a 19-month term (expiring 2/2024) to the Building Board of Appeals.

The following person addressed City Council:

1. Seth Howard, Contractor

20. Road Rehabilitation Program Update
Action: Received and filed.

Public Comment was heard from the following people:

1. Ed Mosur

2. Sherry Eddy

3. Brandi Bannister

21. Purchase Order with SRM-Kodiak America, LLC for Snow Blower Repair Action: Moved/Seconded: Wallace/Creegan
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Resolution 2022-102 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.

Public Comment was heard from the following people:

1. Ed Mosur

2. Sherry Eddy

22. Agreement with California Governor's Office of Emergency Services for Use of a Type VI Fire Engine
Action: Moved/Seconded: Creegan/Wallace
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Motion 2022-084 authorizing and directing the Fire Chief to execute a Temporary Transfer Agreement C-139-2022 with the California Governor's Office of Emergency Services (Cal OES) for a Type VI Engine.
43 6
08 09 2022 Minutes

23. ABC – Public Convenience or Necessity – Yosemite Axe Throwing Action: Moved/Seconded: Wallace/Creegan
Yes: Creegan, Middlebrook and Wallace
No: Friedrich

Absent: Bass
Action: Passed Resolution 2022-103 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.

The following person addressed City Council:

1. Nate Hodges, owner
Public Comment was heard from the following people:

2. Sherry Eddy

3. Brandi Bannister

24. Review Policy for Publicly Visible Art on Private Property Action: Moved/Seconded: Friedrich/Creegan
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Resolution 2022-104 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.

Public Comment was heard from the following people:

1. Sharon Eddy

2. Stacey Ballard, Arts, Culture and Tourism Commission

25. Program Update and Potential Expansion/Modification of "Lease to Locals" Rental Incentive Grant Program
Action: Moved/Seconded: Friedrich/Wallace
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Motion 2022-085 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.

The following person addressed City Council:

1. Colin Frolich, Landing Locals
Public Comment was heard from the following people:

2. Ed Mosur

3. Scott Robbins

4. Brandi Bannister

5. Nick Speal
Written Comment was received from the following person:

6. Bill Louie
44 7
08 09 2022 Minutes

26. An Ordinance Amending City Code Chapter 3.45 (Purchasing) to clarify language regarding Bidding Process and Update Public Contract Procurement Thresholds (First Reading) Action: Moved/Seconded: Wallace/Creegan
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Motion 2022-086 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.

Public Comment was heard from the following person:

1. Ed Mosur
Note: Councilmember Bass joined the meeting at 2:45 p.m.

Note: Councilmembers Creegan and Friedrich recused themselves from Items 14 and 18 due to property interest and left for the remainder of the meeting.

New Business - City Council and South Tahoe Joint Powers Financing Authority

18. Removal of Fire Station #1 and Police Station from 2016 Lease Revenue Bonds Action: Moved/Seconded: Wallace/Bass
Yes: Bass, Middlebrook and Wallace
Recused (absent): Creegan and Friedrich
Action: 1) Acting as the City Council, Passed Resolution 2022-101 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, Passed Resolution STJPFA Resolution 2022-002 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 following person addressed City Council:

1. Lolly Enriquez, RWG Law
Public Comment was heard from the following person:

2. Ed Mosur
Public Hearing - City Council and South Tahoe Joint Powers Financing Authority

14. Issuance of 2022 Lease Revenue Bonds Series A for the Multigenerational Recreation and Aquatic Center Construction Financing in an Amount Not to Exceed $52 Million Action: Moved/Seconded: Wallace/Bass
Yes: Bass, Middlebrook and Wallace
Recused (absent): Creegan and Friedrich
Action: 1) Held a Public Hearing with the respect to the proposed issuance of bonds by the South Tahoe Joint Powers Financing Authority (Authority) to assist the City with financing the construction of the Recreation Center Complex; 2) Acting as the City Council, Passed Resolution 2022-097 approving the issuance of the Authority Lease Revenue Bonds, 2022 Series A, and authorizing the City’s execution and delivery of related documents and taking related actions; and, 3) Acting as the Authority, Passed STJPFA Resolution 2022-001 authorizing the sale, issuance and delivery of Lease Revenue Bonds, 2022 Series A, and authorizing the execution and delivery of an indenture and other documents and taking related actions.

The following people addressed City Council:

1. Jamie Trejo, PFM Financial Advisors

2. Lolly Enriquez, RWG Law
45 8
08 09 2022 Minutes
Public Comment was heard from the following people:

3. Scott Robbins

4. David Gregorich, Parks and Recreation Commission
Agenda Planning Calendar

27. Agenda Planning Calendar
Action: Received.

Updates and Announcements (City Attorney, City Clerk, City Manager) City Clerk:

1. Election-Nomination period open until August 12 unless extended City Manager:

1. Lake Tahoe Unified School District Quarterly Safety meetings.

2. Pride Crosswalk
Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions Councilmember Wallace:

1. Veterans Memorial (Middlebrook second)

2. Jeanette Tillman, South Tahoe Refuse SB 1383 Update (Middlebrook second)

3. Welcome Jason Vasquez, Conservancy Executive Director

4. Ameca Delegation visit

5. Cal Tahoe JPA Building Remodel

6. National Night Out

7. Congratulations to Chief Drennan

8. July 4th Parade

9. Documentary on local athletes, Chris Kosuris and Ryan Wallace Mayor Middlebrook:

1. Multi-Cultural Festival – October 1st, Bijou Park

2. Upcoming JPA Recreation meeting

3. Ameca Delegation visit
Adjournment
At 3:24 p.m. Mayor Middlebrook adjourned the meeting.
________________________ _______________
Devin Middlebrook, Mayor Date
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.
.
46 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 5
Agenda Item: Investment Portfolio Report - June 30, 2022 Executive Summary: In accordance with the City of South Lake Tahoe Financial Policies and State law, a quarterly investment report is hereby submitted to the members of the City Council. As of June 30, 2022, the City's total cash and investment balances across all funds is $98.4 million.

Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 Reviewed and Approved By:

Susan Blankenship, City Clerk
Heather Stroud, City Attorney
Attachments:
01-Staff Report Investment Report June 22.docx
02-Operations Cash 06 30 2022.pdf
03-Fiscal Agent 06 30 2022.pdf
04-Graph 06 30 2022.pdf
05-Cash June 2022.pdf
47 Council Agenda Report September 6, 2022 Page | 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 6, 2022
Title: Investment Portfolio Report as of June 30, 2022
Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530)542-7431 Background: In accordance with the City of South Lake Tahoe Financial Policies and State law a quarterly investment report shall be submitted to the members of the City Council.

Issue and Discussion: The attached report for the period ending June 30, 2022, describes the type of investments, the issuers, the maturity dates, the par value and the market value. Total cash for operations and cash held by fiscal agents is $98,360,441.

Cash available for operations is $89,509,646. This includes Cash in Bank of $5,837,955 with the remaining amount in various investments diversified in accordance with the City’s adopted Investment Policy. The total portfolio yield is 0.99%. Based on this report the City of South Lake Tahoe will be able to meet projected operating expenditures for the next six months.

Cash held by fiscal agents for debt service is $8,850,795. These investments comprise the reserves and other accounts held in trust for debt service, lease financing, and capital projects financed with debt.

Fund Type Total Cash Balance Operations Balance Fiscal Agent Balance Trust and Agency $ 9,872,333 $ 4,198,590 $ 5,673,743
Special Revenue $ 25,383,177 $ 25,383,177 -
General Fund $ 27,866,826 $ 27,866,826 -
Internal Service $ 6,573,572 $ 6,573,572 -
Debt Service $ 2,297,742 $1,948,327 $ 349,415
Enterprise $ 9,909,141 $ 7,081,504 $ 2,827,637
CIP $ 16,457,650 $ 16,457,650 -
Grand Total $ 98,360,441 $ 89,509,646 $ 8,850,795
The attached documents include investment terms that are defined below:
 Current yield – The investments annual income (interest or dividends) divided by the current price of the security.
 Weighted par – Weighting the price of each bond by the total price of the entire portfolio.  Weighted yield – The current yield multiplied by the weighted par, provides the yield of the bonds in the portfolio.

Financial Implications: None.

Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies)
Policy Implications: Consistent with City’s Financial Policies. 48 CITY OF SOUTH LAKE TAHOE

OPERATIONS CASH INVESTMENT PORTFOLIO REPORT
AS OF JUNE 30, 2022

INVESTMENT TYPE ISSUER PAR VALUE
Local Agency Investment Fund State Treasurer 72,414,9 $ 71,482,629 42 $ 0.86% 80.9% 0.70% N/AFederal Home Loan Mtg Corp Government Agency 1,000,00 $ 1,000,435 0 $ 2.10% 1.12% 0.02% 10/26/2022 Federal Home Loan Bank Government Agency 1,000,000 $ 924,916 $ 1.00% 1.12% 0.01% 5/27/2026 Federal Farm Credit Banks Government Agency 1,000,000 $ 922,782 $ 1.50% 1.12% 0.02% 12/14/2026 Federal Farm Credit Banks Government Agency 1,000,000 $ 977,535 $ 1.67% 1.12% 0.02% 3/8/2024 Fed. Home Loan Bank Government Agency 1,000,000 $ 972,338 $ 1.75% 1.12% 0.02% 3/29/2027 Federal Farm Credit Banks Government Agency 1,000,000 $ 988,837 $ 3.11% 1.12% 0.03% 4/13/2026 Fed. Home Loan Banks Government Agency 2,000,000 $ 1,981,348 $ 2.63% 2.23% 0.06% 2/26/2024 Fed. Home Loan Banks Government Agency 1,000,000 $ 993,008 $ 2.50% 1.12% 0.03% 6/20/2025 Fed. Home Loan Banks Government Agency 1,000,000 $ 1,001,382 $ 4.10% 1.12% 0.05% 6/30/2027 Certificate of Deposit Amer Express Bank 250,000 $ 250,306 $ 2.30% 0.28% 0.01% 9/19/2022 Certificate of Deposit Barclays bank/Delaware 250,000 $ 248,043 $ 2.85% 0.28% 0.01% 6/3/2024 Certificate of Deposit Capital One NA 250,000 $ 247,969 $ 3.10% 0.28% 0.01% 6/2/2025 Certificate of Deposit Capital One Bank (USA) NA 250, $ 248,133 000 $ 3.15% 0.28% 0.01% 6/2/2026 Certificate of Deposit State Bank of India 250,000 $ 248,394 $ 3.30% 0.28% 0.01% 6/1/2027 Cash in Bank $ 5,837,955 5,837,955 $ N/A 6.52% 0.00%
Petty Cash $ 6,750 6,750 $ N/A 0.01% 0.00%
TOTAL $ 88,332,759 89,509,646 $ 0.99% (Total Portfolio Yield) The Investment porfolio at June 30, 2022 is in compliance with the Investment Policy of the City of South Lake Tahoe. The City of South Lake Tahoe will be able to meet its projected expenditure requirements for the next six months. Valuation is based upon the State Treasurer's Office LAIF quarterly apportionment rates and US Bank Safekeeping.

WEIGHTED
PAR

WEIGHTED

MARKET VALUE CURRENT YIELD YIELD MATURITY DATE
49 CITY OF SOUTH LAKE TAHOE INVESTMENT REPORT

CASH AND INVESTMENTS HELD WITH FISCAL AGENTS
AS OF JUNE 30, 2022

BOND ISSUE CURRENT MATURITY

ACCOUNT INVESTMENT TYPE ISSUER COST VALUE MARKET VALUE YIELD DATE So Tahoe JPFA Ref Lease Rev Bonds 2016 A Revenue Blackrock Treasury Trust Bank of New York Mellon 25 25 1.12% N/A Revenue Blackrock Treasury Trust Bank of New York Mellon 2 2 1.05% N/A Reserve Assured Guaranty Municipal Bank of New York Mellon - 2 0.00% N/A So Tahoe JPFA Parking Rev Bonds 2013 Debt Service Reserve Blackrock Treasury Trust Bank of New York Mellon 572, 572,598 598 1.10% N/A Refunding Account Blackrock Treasury Trust Bank of New York Mellon 74 74 1.10% N/A Debt Service Account Blackrock Treasury Trust Bank of New York Mellon 330, 330,717 717 1.10% N/A Supplemental Reserve Blackrock Treasury Trust Bank of New York Mellon 1,92 1,924,248 4,248 1.10% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 0 0 0.00% N/A So Tahoe JPFA 2007 A Revenue Fund Blackrock Treasury Trust Bank of New York Mellon 2,18 2,184 3 1.10% N/ASo Tahoe JPFA Ref Rev Bonds 2014 A, 2015 A, 2017 A Surplus Blackrock Treasury Trust Bank of New York Mellon 149 149 1.10% N/A So Tahoe JPFA (RPA 1) Reserve Blackrock Treasury Trust Bank of New York Mellon 5,11 5,114,590 4,590 1.10% N/ASuccessor Agency to the So Tahoe RDA, CFD 2001-1, Refdg Series 2015 Special Tax Blackrock Treasury Trust Bank of New York Mellon 565 565 1.10% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 11,7 11,787 87 1.10% N/A Reserve Blackrock Treasury Trust Bank of New York Mellon 544, 544,230 230 1.10% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 237 237 1.10% N/A City of South Lake Tahoe 2014 Pension Obligation Bonds Interest Blackrock Treasury Trust Bank of New York Mellon 929 929 1.10% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 109 109 1.10% N/A City of So Lake Tahoe 2012 COPS, Road Improvmt. Lease Payment Fund First American Govt Obligation Fund/Money Mkt US Bank 13,351 13,351 0.84% N/A Reserve Account First American Govt Obligation Fund/Money Mkt US Bank 334,996 334,996 0.84% N/A TOTAL 8,850,792 8,850,795
Valuation is based upon the valuations contained in the monthly statements provided by the trust departments of the fiscal agents. 50 LAIF
87%
Medium Term
Certificate of Dep
1%
Government Agency
12%
City of South Lake Tahoe
Operations Cash Investment Portfolio
Market Value as June 30, 2022
51 CITY OF SOUTH LAKE TAHOE

CASH REPORT
JUNE 30, 2022

FUND FUND NAME OPERATIONS CASH FISCAL AGENT TOTAL CASH TOTAL # BALANCE CASH BALANCE BALANCE OPERATIONS FISCAL AGENT CASH BALANCE 100 General Fund 28,499,677.07 $28,499,677.07
102 Measure S - Sales Tax (632,850.57) ($632,850.57) $27,866,827 $0 $27,866,827 201 Gas Tax 2105 801,339.08 $801,339.08
207 Snow Removal 670,187.37 $670,187.37
208 Snow Removal - Equipment Replac 116,953.96 $116,953.96 210 Vehicle Replacement 245,881.88 $245,881.88
211 Police Vehicle Replacement 253,337.72 $253,337.72
213 Fire Vehicle Replacement (9,071.77) ($9,071.77)
216 Transit Center 62,169.67 $62,169.67
217 Arts Program 24,159.82 $24,159.82
218 VHR Program 186,294.33 $186,294.33
220 Parks and Recreation 12,751,272.20 $12,751,272.20
221 Ice Arena 98,113.30 $98,113.30
222 Fire Safety Sales Tax 281,736.73 $281,736.73
223 Cannabis Program 1,564,857.23 $1,564,857.23
224 PEG Programming 199,686.88 $199,686.88
225 Tobacco Law Enforcement Grant (32,712.59) ($32,712.59) 229 DUI/Traffic Safety Grant (4,031.47) ($4,031.47)
230 Local Law Enforcement 1,994.32 $1,994.32
231 AB3229 COPS 68,478.80 $68,478.80
232 Safety Sales Tax 340,468.25 $340,468.25
233 Forfeiture - State Fund 37,388.92 $37,388.92
235 Forfeiture - Justice Fund 12,674.73 $12,674.73
236 EMS - JPA 281,411.92 $281,411.92
237 Boat Patrol - Grant (49,566.44) ($49,566.44)
238 Domestic Violence (DVRT) Grant 40,498.63 $40,498.63 240 Solid Waste AB939 (9,895.42) ($9,895.42)
241 Clean Community 18,856.56 $18,856.56
242 Vehicle Abatement 133,812.32 $133,812.32
243 Nuisance Abatement 164,007.22 $164,007.22
244 Solid Waste JPA 1,185,436.68 $1,185,436.68
245 Storm Water Mgmt/Sweeping 41,000.28 $41,000.28
250 Hsng&ED - Work Force Housing 593,658.80 $593,658.80 251 Hsng & Ed - Home 1,003,512.00 $1,003,512.00
252 Hsng & Ed - CDBG 130,141.12 $130,141.12
253 Hsng & Ed - Administration 282,586.50 $282,586.50
255 CDBG Program Income Loans 96,409.77 $96,409.77
256 CDBG Economic Development (32,420.21) ($32,420.21)
257 CDBG - ED Program Income 237.58 $237.58
258 Calhome Loan Repayments 128,598.21 $128,598.21
259 First Time Homebuyers Rev Loan 9,623.65 $9,623.65
263 TOT Revenue Fund 2,624,625.43 $2,624,625.43
264 Local Fiscal Recovery (ARPA) 0.00 $0.00
270 General Plan/Community Plan 460,380.02 $460,380.02
271 Building Permit Fees 75,705.05 $75,705.05
280 Ski Run Business Improvement 1,561.10 $1,561.10
281 Measure S Maintenance Fund 63,721.17 $63,721.17
284 Measure S City Maintenance 283,925.27 $283,925.27
285 Tourism Improvement District (TID) 184,170.54 $184,170.54 $25,383,177 $0 $25,383,177 301 City CIP 15,430,304.89 $15,430,304.89
303 City CIP - Reg.Surf.Transp.Progr 193,442.63 $193,442.63 306 Rehab Water Quality Projects 2,810.24 $2,810.24
310 Long term Capital Replacement 399,869.03 $399,869.03 320 Housing - CIP Projects 431,222.81 $431,222.81 $16,457,650 $0 $16,457,650 401 City Debt Service 1,948,326.73 349,414.45 $2,297,741.18 $1,948,327 $349,414 $2,297,741 501 Airport 2,837,179.99 $2,837,179.99
510 Parking Management Bellamy 245,669.49 $245,669.49
520 Parking Garage 3,422,069.89 2,827,637.10 $6,249,706.99 550 Transit - Stage 576,585.60 $576,585.60 $7,081,505 $2,827,637 $9,909,142 601 Self Insurance - Health, Vision, Den 312,672.42 $312,672.42 602 Self Insurance - Workers Comp 5,614,668.43 $5,614,668.43 604 Payroll 620,053.39 $620,053.39
605 Health Insurance Savings 26,177.50 $26,177.50 $6,573,572 $0 $6,573,572 701 Trust 917.00 $917.00
707 Park Avenue CFD Fund 1,074,133.82 556,820.14 $1,630,953.96 711 Bijou ECP CFD 164,820.78 $164,820.78
712 Harrison Avenue CFD 93,143.37 $93,143.37
725 RD Obligation Retirement Fund 2,857,586.72 5,116,923.08 $7,974,509.80 751 Special Assessment District 4,572.00 $4,572.00
762 Tahoe Transportation Authority 3,416.00 $3,416.00 $4,198,590 $5,673,743 $9,872,333 Total Cash and Investments $89,509,646.34 $8,850,794.77 $98,360,441.11 $89,509,646 $8,850,795 $98,360,441

SUBTOTAL BY CATEGORY
52 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 6
Agenda Item: Fiscal Year 2022-2023 Investment Policy and Authority Executive Summary: City Council will formally consider the City's formal Investment Policy, and reaffirm the use of this policy for fiscal year 2022-2023. California law requires all public agencies to annually present a formal investment policy to City Council approval. The fiscal year 2022-2023 policy is practically identical to the policy used in the prior year as there have been no changes to California State Law. The policy formally delegates investment authority to the City Treasurer, and grants the City Manager the formal authority to assign a second official (Finance Director) to perform investment management during absences of the City Treasurer. The policy prioritizes safety, liquidity, and then yield, and establishes various limits on the term, percentage of the City's portfolio authorized in various instruments, and caps on investments in various instruments, and prohibits certain types of investments deemed to carry greater risk. City staff presents a report on the status of the City's investments on a quarterly basis. The most recent, June 30, 2022 report is presented during this council meeting with the next report scheduled for November. The City's primary investment instrument is the Local Agency Investment Fund (LAIF), a California state pool (87% of the City's portfolio as of the quarter ended June 30, 2022). LAIF is highly liquid, safe, and typically generates a competitive yield (0.86% as of the end of the June 30, 2022 quarter). The City's other primary investment instruments are Government Agency funds and certificates of deposit.

Requested Action / Suggested Motions: Pass a Resolution delegating investment authority to the City Treasurer and reconfirming and adopting the City Investment Policy for the year October 1, 2022 to September 30, 2023.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 Reviewed and Approved By:

Susan Blankenship, City Clerk
Heather Stroud, City Attorney
Attachments:
01-Staff Report Investment Policy rv.docx
02-Resolution Investment Policy 2022_2023.docx
03-Investment Policy - 2022-2023 redline (Exh. A to Reso) rv.pdf 04-Investment Policy - 2022-2023 final rv.pdf
53 Council Agenda Report- September 6, 2022 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 6, 2022
Title: Fiscal Year 2022-2023 Investment Policy
Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 David Olivo, City Treasurer (530) 541-1910
Description/Analysis
Background: California State Law requires all public agencies to reduce to writing the investment policy that is followed for investing agency funds.

In accordance with the City’s adopted financial policies, the annual review of the investment policy has occurred and is complete.

Included in the Investment Policy is Attachment A which serves as a quick guide to permitted investments and the applicable guidelines. The guide serves as an easy reference to verify that investment purchases are made in accordance with the City Council adopted resolution, minimizing risk exposure while maximizing investment opportunities.

The most recent glossary of terms from the Association of Public Treasurers of the United States and Canada is provided for added clarification.

Issue and Discussion: Changes to the policy are as follows:

III. PRUDENT PERSON RULE – The old “Prudent Person Rule” language was updated to this new paragraph headed “Prudence” and accompanying updated paragraph: “The standard of prudence to be used shall…”
V. DELEGATION OF AUTHORITY – The California Government code that more accurately represents the City of South Lake Tahoe is Code Section 53607.

VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTION – Revise Part 1.6 -the new certification is from the Financial Industry Regulatory Authority. 54 Council Agenda Report- September 6, 2022 Page 2 of 2 IX. INVESTMENT POOLS/MUTUAL FUNDS – delete last two bullet points as they do not belong in this section – (Investments other than LAIF…) and (In the event the portfolio…).

XII. DIVERSIFICATION – The LAIF maximum investment changed from $65 million to $75 million.

ATTACHMENT A - The LAIF maximum investment changed from $65 million to $75 million. Government Security Mutual Funds maximum was corrected to 20% and per issuer was changed to 10% as allowed by California Government Code Section 53601.

GLOSSARY – Per GFOA guidance on March 9, 2021 Comprehensive Annual Financial Report should now read Annual Comprehensive Financial Report.

Financial Implications: None
Policy Implications: Updating the investment policy yearly ensures it is in compliance with California State law.
55 Resolution 2022-XXX September 6, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
September 6, 2022
Delegating investment authority to the City Treasurer and reconfirming and adopting the City Investment Policy for the fiscal year October 1, 2022 through September 30, 2023

BACKGROUND
A. In accordance with California law, the City has maintained a formal investment policy for many years.

B. City policy requires annual review and approval of the investment policy by the City Council.

C. The Fiscal Year 2022-2023 policy presented for Council review and approval is submitted with several changes which are explained in the staff report and are identified in the attached Exhibit A.

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

1. Hereby reconfirms and adopts the Fiscal Year 2022-2023 Investment Policy.

2. Delegates formal investment authority to the City Treasurer and the Finance Director (as designated by the City Manager, in the absence of the City Treasurer).

Adopted by the City of South Lake Tahoe City Council on September 6, 2022 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Devin Middlebrook, Mayor
56 Resolution 2022-XXX September 6, 2022 Page 2 of 2
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
57 City of South Lake Tahoe
Investment Policy
Fiscal Year 2021-20222022-2023
1 City of South Lake Tahoe
Investment Policy
Fiscal Year 2021-20222022-2023
I. POLICY
It is the policy of the City of South Lake Tahoe (City) to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

II. SCOPE
This investment policy applies to all financial assets of the City which are available for investment by the City's Treasurer. These funds are accounted for in the City's Comprehensive Annual Financial Report and include:
• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Project Funds
• Enterprise Funds
• Internal Service Funds
• Fiduciary Funds
III. PRUDENCET PERSON RULE
Investments shall be made with judgment and care-under circumstances then prevailingwhich persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

The standard of prudence to be used by city officials responsible for the investment of public funds shall be the “prudent investor” standard and shall be applied in the context of managing the overall city portfolio of funds. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security risk or market price change, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.The standard of prudence to be used shall be the “prudent person” standard (as cited in Probate Code Section 16040) and shall be applied in the context of managing the overall portfolio, not to a single item within a diversified portfolio. Investments shall be made with judgment and care (under circumstances then prevailing) which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

IV. OBJECTIVE
58 City of South Lake Tahoe
Investment Policy
Fiscal Year 2021-20222022-2023
2 1. Safety: Safety of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.

2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

3. Yield on Investments: The City’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

V. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code 5360153607. Management responsibility for the investment program is hereby delegated to the City Treasurer who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the City Treasurer.

The City Manager shall designate an official to manage investments and designate a second official to perform investment management during absences of the primary designee. The City Manager shall insure that competent investment management is maintained and shall insure that, if both designated investment officials are replaced or are simultaneously absent, any temporary replacement(s) shall be closely supervised, and indoctrinated in the requirements of this Statement of Investment Policy, and given written investment procedures, regulating the authority to invest in maturities beyond six months by means of appropriate controls and restraining requirements. The City Manager shall authorize preparation and filing of documents with all financial institutions with which the City conducts investment activities certifying the names of those persons authorized to effect trades on behalf of the City.

1. Investment Procedures: The City Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, SIFMA master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority of persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.

VI. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which would impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal 59 City of South Lake Tahoe
Investment Policy
Fiscal Year 2021-20222022-2023
3 financial/investment positions that could be related to the performance of the City.

All the City’s employees who are listed on the City’s Conflict of Interest Policy are required by the Fair Political Practices Commission to complete and file a Form 700 annually. All persons, broker/dealers, financial institutions and advisors providing investment services or bond issuance shall disclose to the Treasurer all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issue bonds.

VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
To promote the optimum yield on the investment of City funds, investment procedures shall be designed to encourage competitive bidding on transactions from approved financial institutions or broker/dealers.

1. On an annual basis, the Treasurer shall recommend a list of at least three broker/dealers who are authorized to provide investment services. The list shall be approved by the City Council. All broker/dealers who wish to be considered for the list must meet the following minimum requirements;

1.1 Must certify that they have read and agree to comply with the investment policies of the City.

1.2 Must be a "primary" or regional dealer that qualifies under the Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule).

1.3 Must be experienced in institutional trading practices and familiar with the California Government Code as related to investments for local governmental agencies.

1.4 Must have been in business for at least three years.

1.5 Must provide current audited financial statements.

1.6 Must provide proof of National Association of Security Dealers certification.Financial Industry Regulatory Authority certification.

2. All financial institutions in which the City's public funds are deposited will supply the Treasurer with the following;

2.1 Current audited financial statements.

2.2 Depository contracts.

2.3 Proof that the institution is State or Federally chartered.

VIII. AUTHORIZED AND SUITABLE INVESTMENTS
The City is empowered by statute to invest in the following types of securities: (see Section XII for a description of each investment type)

1. Certificates of Deposit (or Time Deposits) placed with commercial banks and or savings and loan institutions.

2. Bankers’ Acceptances.

3. Securities of the U.S. Government or its agencies.

4. Commercial Paper.

5. Medium-Term Corporate Notes.
60 City of South Lake Tahoe
Investment Policy
Fiscal Year 2021-20222022-2023
4 6. Local Agency Investment Fund (State Pool) Demand Deposits, (LAIF).

7. Negotiable Certificates of Deposit.

8. Passbook Savings Account Demand Deposits.

9. Government Security Mutual Funds.

10. Bonds, Notes or California State and Local Agencies.

11. Bond proceeds may be invested as authorized by California Government Code 53601(m) but may also be invested in authorized investments as outlined in bond covenants and agreements.

12. Notes, Bonds and other securities of all fifty United States.

13. Supranationals
Prohibited Investments: The following investments are either prohibited by law or authorized by law and prohibited by the City Treasurer. Under Provisions of California Code 53601.6 the City shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools or any investment that may result in a zero-interest accrual if held to maturity. Also, the City shall not invest in Reverse Repurchased Agreements and Mortgage Pass Through Securities.

IX. INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/funds is required prior to investing, and on a quarterly basis. There shall be a questionnaire developed which will answer the following general questions:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced, and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? • Investments other than LAIF not to exceed 5% of total City Portfolio • In the event the portfolio experiences a realized loss or investments fall out of compliance, the City Treasurer will notify the City Council immediately.

At this time there are no City investments in pools or mutual funds.

X. COLLATERIZATION
Collateralization will be required on two types of investments: certificates of deposit and sweep checking accounts. In order to anticipate market changes and provide a level of security 61 City of South Lake Tahoe
Investment Policy
Fiscal Year 2021-20222022-2023
5 for all funds, the collateralization level will be 110% of market value of principal and accrued interest.

The City chooses to limit collateral to the following: certificates of deposit and sweep checking accounting held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.

Collateral for other investments must be 110% of principal for government securities. and 150% of principal for first mortgages.

XI. SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery-versus payment (DVP) basis. Securities will be held by a third-party custodian designated by the Treasurer and evidenced by safekeeping receipts.

XII. DIVERSIFICATION
The City will diversify its investments by security type and institution in order to reduce portfolio risk while maintaining market average rates.

Security Type and Institution - U.S. Treasury securities and authorized pools, and any portfolio or institutional limits shall comply with California Government Code. Investments are further limited by specific language relating to each investment type as stated below.

Maximum Maturities - To the extent possible, the City Treasurer will attempt to match investments with anticipated cash flow requirements. The City's portfolio will be directly invested in securities with a maturity of no more than five years from the date of purchase.

The City Treasurer may invest in the following types of Investment Instruments:

1. Certificate of Deposit: Certificates of deposit or "time deposits" of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities. Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 25 percent of the portfolio (GC 53601(i)). In addition, time deposits shall be placed in institutions meeting all capital requirements and which maintain a rating equivalent to FDIC rating of "One" or "Two" or a Sheshunoff performance rating of A or better.

2. Bankers’ Acceptances: The maximum investment with any one institution will not exceed $1.0 million. The maximum maturity will be 180 days. The maximum proportion of City funds invested in Bankers’ Acceptance shall not exceed 20% of the total City portfolio. Maximum 5% invested per issuer. (Note: California Government 62 City of South Lake Tahoe
Investment Policy
Fiscal Year 2021-20222022-2023
6 Code allows a maximum of 40%).

3. Securities of the U.S. Government or its Agencies: Maximum maturity is five years and maximum investment is 50% of total City Portfolio.

4. Commercial Paper: Commercial paper will be used solely as a short-term investment not to exceed 270 days. Commercial paper will be of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical-rating organization. $2,000,000 combined any issuer, maximum 25% of City portfolio.

5. Medium-Term Corporate Notes: The City may invest in medium-term corporate notes with a maximum of five years maturity issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

Notes shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service. The maximum proportion of City funds invested in Medium Term Corporate Notes shall not exceed 30% of the total City Portfolio.

6. Local Agency Investment Fund (State Pool): The investment with LAIF may not, by state regulation, exceed $65 75 million. LAIF transactions, by LAIF guidelines, are not to exceed 15 per month.

7. Negotiable Certificates of Deposit: The maximum maturity is five years. The maximum investment is 30% of the total City Portfolio. Maximum 5% or $1,000,000 invested per issuer. Negotiable Certificates of Deposits (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.

8. Passbook Savings Account Demand Deposits: This account shall be maintained solely for the following purposes:
a. Investment of amounts over $100,000.00 received too late in the day to invest in other instruments; or,
b. Investment of amounts under $100,000.00 for periods of up to ten working days in order to fine-tune cash flow and minimize LAIF transactions in a given month.

9. Government Security Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53601, are permitted investments. Section 53601(l) further defines requirements. A maximum of 20 percent of the portfolio may be so invested.
63 City of South Lake Tahoe
Investment Policy
Fiscal Year 2021-20222022-2023
7 10. Bonds, Notes or other evidences of indebtedness issue by the California State and Local Agencies: Bonds issued by the local agency, including bonds payable solely out of the revenues from revenue -producing property owned, controlled, or operated by California state or local agency, or by a department, board, agency, or authority of the local agency as authorized by California Government Code 53601 (a). Notes eligible for investment shall be rated in a category of “A” or its equivalent by two Nationally Recognized Rating Organizations.

Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this state, include bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. A maximum of 20% of the portfolio may be so invested.

11. Bond Proceeds: Section 53601 (m) allows greater flexibility with respect to the types of investments that may be made with bond proceeds. Specifically, the law permits money from bond proceeds, obligations under a lease, installment sales, or other agreements of a local agency to be invested in any security that meets the statutory provisions governing the issuance of the bond or other agreements made by the issuing agency. In doing so, this section of the code recognizes that outstanding contracts between issuers and bond holders may not comply with the investment statutes and gives local agencies greater discretion in how to invest bond proceeds.

12. U.S. Treasury Notes and Bonds: Registered Treasury notes or bonds of all 50 United States including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency or authority of the state as authorized by California Government Code 53601 (c) and (d). Maximum maturity is five years and maximum investment is 50% of total City Portfolio.

13. Supranationals: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States.

Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.

XIII. MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow and authorized by the City Council, the City will not directly invest in securities maturing more than five years from the date of purchase.

CD maturities will normally not exceed five years. U.S. Government or Agency securities will not exceed five years. At least 50% of idle funds can be placed in investments which can be 64 City of South Lake Tahoe
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8 liquidated for at least face value in the event of an emergency. The City uses LAIF for its idle funds to insure this requirement is met.

XIV. INTERNAL CONTROL
The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures.

The Finance department shall establish a system of internal controls, which shall be documented in writing. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City. Controls deemed most important include; control of collusion, separation of duties, separating transition authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, written confirmation of telephone transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and ethical standards.

XV. PERFORMANCE STANDARDS
The investment portfolio will be designed to attain at least a market-average rate of return during budgetary and economic cycles. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek to augment returns above the market average rate of return as shown on the average CMT (Constant Maturity Treasury) whose maturity most closely matches the average maturity of the portfolio. In addition, the City portfolio will be compared with LAIF and the goal is to maintain a higher positive annual yield than LAIF’s annual yield.

1. Investment Strategy: The City’s investment strategy is to buy and hold investments until maturity. However, the Treasurer may sell a security due to adverse changes in credit risk or due to unexpected cash flow needs.

2. Market Yield (Benchmark): The basis used by the Treasurer to determine whether market yields are being achieved shall be the rates of return from the following combination of indices: Local Agency Investment Fund (LAIF) and 3-month, 6-month, and 1-year Treasury Bills.

3. Review: The investment policy shall be reviewed at least annually by the City Manager and Finance Director and approved by the City Council to ensure its consistency with the overall objectives of safety (including diversification), liquidity and return, as well as its relevance to current law and financial/economic trends.

The City's philosophy prohibits speculation; i.e., the purchase of securities with the intent to profit from favorable changes in market prices or market conditions. Leveraging or borrowing money for the purpose of investing is specifically prohibited. 65 City of South Lake Tahoe
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9 XVI. REPORTING
The City Treasurer shall provide investment information to City Council.

Periodic Reports – If any, the City Treasurer will provide a monthly transaction report detailed reports of theall investments including any in the pooled investment fund portfolio on a monthly basis to the City Council, City Manager, Chief
Financial Officer and City Clerk. Also, within thirty days of the end of each quarter a full report of the City's operational cash investment portfolio report will be provided with additional information such as market pricing. This report shall include the type of investment, issuer, date of maturity, par and dollar amount invested in all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the management of contracted parties, including lending programs.

With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund (LAIF), the report shall also include a current market value as of the date of the report and shall include the source of this same valuation.

Annual Report – This investment policy will be presented annually following the close of the fiscal year, to the City Council for approval.

Financial Statements per GASB #31 – City Treasurer will provide the portfolio’s market value gains/losses to Finance to be incorporated in the fiscal year-end balance sheet.

Financial Statements per GASB #40 – Effective June 30, 2005, additional disclosure is required. City Treasurer will provide detailed maturity and rating information to Finance to be incorporated in the Comprehensive Annual Comprehensive Financial Report (CAFRACFR).

XVII. INVESTMENT POLICY ADOPTION
The City’s investment policy shall be adopted by resolution of the City’s legislative authority. Per Government code, the policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.

XVIII. GUIDELINES
Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.

1. Investment Transactions: Every investment transaction must be authorized, documented and reviewed by the local agency Treasurer.

2. Pooled Cash: Whenever practical, local agency cash should be consolidated into one bank account and invested on a pooled concept basis. Interest earnings may be allocated to fund cash and investment balances.

Formatted: Indent: First line: 0.5"
66 City of South Lake Tahoe
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10 3. Competitive Bids: Purchase and sale of securities should be made on the basis of competitive offers and bids when practical.

4. Cash Forecast: The cash flow for the local agency should be analyzed with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements.

5. Investment Limitations: Security purchases and holdings shall be maintained within statutory limits imposed by the Investment Policy and California Government code. Any investments not listed are not subject to % limitations.

Bankers’ Acceptance 40% Code Section 53601 (f)
Commercial Paper 25% Code Section 53601 (g)
Medium-Term Corporate Notes 30% Code Section 53601 (j)
Negotiable Cert. Of Deposit 30% Code Section 53601 (h)

6. Liquidity: The marketability (salability) of a security should be considered at the time of purchase as the security may have to be sold at a later date to meet unanticipated cash demand.

7. Long-Term Maturities: As a general rule, long-term maturities should not represent a significant percentage of the total portfolio, as the principal risk involved can outweigh the potential for higher earnings.

8. Authorized Broker/Dealers: Execute investment transactions with previously approved broker/dealers who have certified compliance with the City’s investment policy.

9. Diversification: The portfolio should consist of a mix of various types of securities, issuers and maturities.

10. Annual Review: The investment portfolio will be reviewed yearly by the Treasurer, City Manager and Finance department representative.

11. Evaluation of Certificates of Deposit: The following items will govern the valuation:
a. Time Certificates of Deposit (TCD) are FDIC insured. b. Negotiable Certificates of Deposit (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.

67 City of South Lake Tahoe
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11 Attachment A:

Attachment A:

The City's specific permitted investment guidelines are summarized below. It should be noted that the City's permitted investments are more restrictive than the State guidelines.

Percentages of investment allocation and investment maximum limits apply at the time of purchase.

The designated portfolio manager may at his/her discretion temporarily exceed these guidelines when repositioning the portfolio. Should the manager recommend an extended departure from the diversification’s guideline (more than 90 days) City council approval will be required.

The Investment Policy sets forth minimum credit ratings for each type of permitted security.

These credit limits apply at the time of the initial purchase of the said security and a subsequent

PERMITTED INSTRUMENTS

CITY GUIDELINES
Certificates of Deposits 5 years / 25% max / $250,000 max per issuer Bankers Acceptances 180 days / 40% max / 5% per issuer/20% max per City Investment policy
Securities of the U.S. Government or its Agencies 5 years / 50% max Commercial Paper 270 days / 25% max / 5% per issuer combined Medium-Term Corporate Notes 5 years / 30% max / $2,000,000 combined any Issuer / max of 30% of portfolio
Local Agency Investment Fund (State Pool) LAIF $6575,000,000 / no limit Negotiable Certificates of Deposit 5 years / 30% max / lesser of 5% or $1,000,000 per issuer
Passbook Savings Account 10 days / investments under $100,000 Government Security Mutual Funds 1520% max / 510% per issuer Bonds, Notes issued by:

California State and Local Agencies
5 years / 20% max / 5% per issuer
Bond Proceeds See section XII - number 11
U.S. Treasuries Notes and Bonds 5 years / 50% of portfolio Supranationals 5 years / 30% max / AA rated
Reverse Repurchase Agreements Not allowed
Mortgage Pass Through Securities Not allowed
Repurchase Agreements Not allowed
Formatted Table
Formatted: Left
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12 change in rating status does not necessarily force the sale or disposition of the investment. In the event that the security is later downgraded below minimum required levels, the Treasurer and City staff will assess the risk exposure, make a decision on the course of action, and advise the City council.

GLOSSARY
AGENCIES: Federal agency securities.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of South Lake Tahoe. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

BANKERS= ACCEPTANCES (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered for securities. (When you are selling securities, you ask for a bid.) See offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATES OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUALANNUAL COMPREHENSIVE FINANCIAL REPORT (CAFR): The official annual report for the City of South Lake Tahoe. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer. 69 City of South Lake Tahoe
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13 DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipts is delivery of securities with an exchange of a signed receipt for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon national amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities.) DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value (e.g., U.S. Treasury bills).

DIVERSIFICATION: Dividing investment funds among a variety of securities and issuers offering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLB’s is to liquefy the housing related assets of its members who must purchase stock in their district bank.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. 70 City of South Lake Tahoe
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14 FEDERAL FUNDS: Non-interest bearing deposits held by member banks at the Federal Reserve, also used to denote immediately available funds in the clearing sense. Fed Funds also used to refer to these funds.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system.

GOVERNMENTAL NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHA mortgages. The term pass-throughs is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LAIF (Local Agency Investment Fund): A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $6575,000,000 for any agency. The City is restricted to a maximum of fifteen transactions per month. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-quarter of one percent of the earnings.

The interest rates are competitive with other securities because of pooling the State’s surplus cash with the surplus cash deposited. This creates a multi-billion-dollar money pool and allows diversified investments. In a high interest rate market, the City does better than LAIF, but in times of low interest rates, LAIF yields are higher. The City continually invests in the Local Agency Investment Fund.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
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15 MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET FUNDS: Open-ended mutual fund that invests in highly liquid and safe securities (bills, commercial paper, bankers’ acceptances, CD’s, etc.) and pays money market rates of interest. The fund’s net asset value remains a constant $1 a share.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserves most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENTS (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security Abuyer@ in effect lends the Aseller@ money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is, increasing 72 City of South Lake Tahoe
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16 bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC RULE 15C3-l: See uniform net capital rule.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

SUPRANATIONALS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRARO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.

TREASURY BILLS: A non-interest-bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from 2 to 10 years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.

Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 73 City of South Lake Tahoe
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1 City of South Lake Tahoe
Investment Policy
Fiscal Year 2022-2023
I. POLICY
It is the policy of the City of South Lake Tahoe (City) to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

II. SCOPE
This investment policy applies to all financial assets of the City which are available for investment by the City's Treasurer. These funds are accounted for in the City's Comprehensive Annual Financial Report and include:
• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Project Funds
• Enterprise Funds
• Internal Service Funds
• Fiduciary Funds
III. PRUDENCE
The standard of prudence to be used shall be the “prudent person” standard (as cited in Probate Code Section 16040) and shall be applied in the context of managing the overall portfolio, not to a single item within a diversified portfolio. Investments shall be made with judgment and care (under circumstances then prevailing) which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

IV. OBJECTIVE

1. Safety: Safety of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.

2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

3. Yield on Investments: The City’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, 74 City of South Lake Tahoe
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Fiscal Year 2022-2023
2 commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

V. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code 53607. Management responsibility for the investment program is hereby delegated to the City Treasurer who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the City Treasurer.

The City Manager shall designate an official to manage investments and designate a second official to perform investment management during absences of the primary designee.

The City Manager shall insure that competent investment management is maintained and shall insure that, if both designated investment officials are replaced or are simultaneously absent, any temporary replacement(s) shall be closely supervised, and indoctrinated in the requirements of this Statement of Investment Policy, and given written investment procedures, regulating the authority to invest in maturities beyond six months by means of appropriate controls and restraining requirements. The City Manager shall authorize preparation and filing of documents with all financial institutions with which the City conducts investment activities certifying the names of those persons authorized to effect trades on behalf of the City.

1. Investment Procedures: The City Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, SIFMA master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority of persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.

VI. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which would impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City.

All the City’s employees who are listed on the City’s Conflict of Interest Policy are required by the Fair Political Practices Commission to complete and file a Form 700 annually. All persons, broker/dealers, financial institutions and advisors providing investment services or bond issuance shall disclose to the Treasurer all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issue bonds.

VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
To promote the optimum yield on the investment of City funds, investment procedures shall be designed to encourage competitive bidding on transactions from approved financial 75 City of South Lake Tahoe
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3 institutions or broker/dealers.

1. On an annual basis, the Treasurer shall recommend a list of at least three broker/dealers who are authorized to provide investment services. The list shall be approved by the City Council. All broker/dealers who wish to be considered for the list must meet the following minimum requirements;

1.1 Must certify that they have read and agree to comply with the investment policies of the City.

1.2 Must be a "primary" or regional dealer that qualifies under the Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule).

1.3 Must be experienced in institutional trading practices and familiar with the California Government Code as related to investments for local governmental agencies.

1.4 Must have been in business for at least three years.

1.5 Must provide current audited financial statements.

1.6 Must provide proof of Financial Industry Regulatory Authority certification.

2. All financial institutions in which the City's public funds are deposited will supply the Treasurer with the following;

2.1 Current audited financial statements.

2.2 Depository contracts.

2.3 Proof that the institution is State or Federally chartered.

VIII. AUTHORIZED AND SUITABLE INVESTMENTS
The City is empowered by statute to invest in the following types of securities: (see Section XII for a description of each investment type)

1. Certificates of Deposit (or Time Deposits) placed with commercial banks and or savings and loan institutions.

2. Bankers’ Acceptances.

3. Securities of the U.S. Government or its agencies.

4. Commercial Paper.

5. Medium-Term Corporate Notes.

6. Local Agency Investment Fund (State Pool) Demand Deposits, (LAIF).

7. Negotiable Certificates of Deposit.

8. Passbook Savings Account Demand Deposits.

9. Government Security Mutual Funds.

10. Bonds, Notes or California State and Local Agencies.

11. Bond proceeds may be invested as authorized by California Government Code 53601(m) but may also be invested in authorized investments as outlined in bond covenants and agreements.

12. Notes, Bonds and other securities of all fifty United States.

13. Supranationals
Prohibited Investments: The following investments are either prohibited by law or 76 City of South Lake Tahoe
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4 authorized by law and prohibited by the City Treasurer. Under Provisions of California Code 53601.6 the City shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools or any investment that may result in a zero-interest accrual if held to maturity. Also, the City shall not invest in Reverse Repurchased Agreements and Mortgage Pass Through Securities.

IX. INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/funds is required prior to investing, and on a quarterly basis. There shall be a questionnaire developed which will answer the following general questions:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced, and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? At this time there are no City investments in pools or mutual funds.

X. COLLATERIZATION
Collateralization will be required on two types of investments: certificates of deposit and sweep checking accounts. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value of principal and accrued interest.

The City chooses to limit collateral to the following: certificates of deposit and sweep checking accounting held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.

Collateral for other investments must be 110% of principal for government securities. and 150% of principal for first mortgages.

XI. SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery-versus payment (DVP) basis. Securities will be held by a third-party custodian designated by the 77 City of South Lake Tahoe
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Fiscal Year 2022-2023
5 Treasurer and evidenced by safekeeping receipts.

XII. DIVERSIFICATION
The City will diversify its investments by security type and institution in order to reduce portfolio risk while maintaining market average rates.

Security Type and Institution - U.S. Treasury securities and authorized pools, and any portfolio or institutional limits shall comply with California Government Code. Investments are further limited by specific language relating to each investment type as stated below.

Maximum Maturities - To the extent possible, the City Treasurer will attempt to match investments with anticipated cash flow requirements. The City's portfolio will be directly invested in securities with a maturity of no more than five years from the date of purchase.

The City Treasurer may invest in the following types of Investment Instruments:

1. Certificate of Deposit: Certificates of deposit or "time deposits" of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgagebacked securities. Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 25 percent of the portfolio (GC 53601(i)). In addition, time deposits shall be placed in institutions meeting all capital requirements and which maintain a rating equivalent to FDIC rating of "One" or "Two" or a Sheshunoff performance rating of A or better.

2. Bankers’ Acceptances: The maximum investment with any one institution will not exceed $1.0 million. The maximum maturity will be 180 days. The maximum proportion of City funds invested in Bankers’ Acceptance shall not exceed 20% of the total City portfolio. Maximum 5% invested per issuer. (Note: California Government Code allows a maximum of 40%).

3. Securities of the U.S. Government or its Agencies: Maximum maturity is five years and maximum investment is 50% of total City Portfolio.

4. Commercial Paper: Commercial paper will be used solely as a short-term investment not to exceed 270 days. Commercial paper will be of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical-rating organization. $2,000,000 combined any issuer, maximum 25% of City portfolio.

5. Medium-Term Corporate Notes: The City may invest in medium-term corporate notes with a maximum of five years maturity issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

Notes shall be rated in a rating category of “A” or its equivalent or better by a nationally 78 City of South Lake Tahoe
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Fiscal Year 2022-2023
6 recognized rating service. The maximum proportion of City funds invested in Medium Term Corporate Notes shall not exceed 30% of the total City Portfolio.

6. Local Agency Investment Fund (State Pool): The investment with LAIF may not, by state regulation, exceed $75 million. LAIF transactions, by LAIF guidelines, are not to exceed 15 per month.

7. Negotiable Certificates of Deposit: The maximum maturity is five years. The maximum investment is 30% of the total City Portfolio. Maximum 5% or $1,000,000 invested per issuer. Negotiable Certificates of Deposits (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.

8. Passbook Savings Account Demand Deposits: This account shall be maintained solely for the following purposes:
a. Investment of amounts over $100,000.00 received too late in the day to invest in other instruments; or,
b. Investment of amounts under $100,000.00 for periods of up to ten working days in order to fine-tune cash flow and minimize LAIF transactions in a given month.

9. Government Security Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53601, are permitted investments. Section 53601(l) further defines requirements. A maximum of 20 percent of the portfolio may be so invested.

10. Bonds, Notes or other evidences of indebtedness issue by the California State and Local Agencies: Bonds issued by the local agency, including bonds payable solely out of the revenues from revenue -producing property owned, controlled, or operated by California state or local agency, or by a department, board, agency, or authority of the local agency as authorized by California Government Code 53601 (a). Notes eligible for investment shall be rated in a category of “A” or its equivalent by two Nationally Recognized Rating Organizations.

Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this state, include bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. A maximum of 20% of the portfolio may be so invested.

11. Bond Proceeds: Section 53601 (m) allows greater flexibility with respect to the types of investments that may be made with bond proceeds. Specifically, the law permits money from bond proceeds, obligations under a lease, installment sales, or other agreements of a local agency to be invested in any security that meets the statutory provisions governing the issuance of the bond or other agreements made by the issuing agency. In doing so, this section of the code 79 City of South Lake Tahoe
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7 recognizes that outstanding contracts between issuers and bond holders may not comply with the investment statutes and gives local agencies greater discretion in how to invest bond proceeds.

12. U.S. Treasury Notes and Bonds: Registered Treasury notes or bonds of all 50 United States including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency or authority of the state as authorized by California Government Code 53601 (c) and (d). Maximum maturity is five years and maximum investment is 50% of total City Portfolio.

13. Supranationals: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States.

Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.

XIII. MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow and authorized by the City Council, the City will not directly invest in securities maturing more than five years from the date of purchase.

CD maturities will normally not exceed five years. U.S. Government or Agency securities will not exceed five years. At least 50% of idle funds can be placed in investments which can be liquidated for at least face value in the event of an emergency. The City uses LAIF for its idle funds to insure this requirement is met.

XIV. INTERNAL CONTROL
The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures.

The Finance department shall establish a system of internal controls, which shall be documented in writing. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City. Controls deemed most important include; control of collusion, separation of duties, separating transition authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, written confirmation of telephone transactions, minimizing the number of authorized investment officials, documentation of 80 City of South Lake Tahoe
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8 transactions and strategies, and ethical standards.

XV. PERFORMANCE STANDARDS
The investment portfolio will be designed to attain at least a market-average rate of return during budgetary and economic cycles. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek to augment returns above the market average rate of return as shown on the average CMT (Constant Maturity Treasury) whose maturity most closely matches the average maturity of the portfolio. In addition, the City portfolio will be compared with LAIF and the goal is to maintain a higher positive annual yield than LAIF’s annual yield.

1. Investment Strategy: The City’s investment strategy is to buy and hold investments until maturity. However, the Treasurer may sell a security due to adverse changes in credit risk or due to unexpected cash flow needs.

2. Market Yield (Benchmark): The basis used by the Treasurer to determine whether market yields are being achieved shall be the rates of return from the following combination of indices: Local Agency Investment Fund (LAIF) and 3-month, 6-month, and 1-year Treasury Bills.

3. Review: The investment policy shall be reviewed at least annually by the City Manager and Finance Director and approved by the City Council to ensure its consistency with the overall objectives of safety (including diversification), liquidity and return, as well as its relevance to current law and financial/economic trends.

The City's philosophy prohibits speculation; i.e., the purchase of securities with the intent to profit from favorable changes in market prices or market conditions. Leveraging or borrowing money for the purpose of investing is specifically prohibited.

XVI. REPORTING
The City Treasurer shall provide investment information to City Council.

Periodic Reports – If any, the City Treasurer will provide a monthly transaction report of all investments including any pooled investment fund portfolio to the City Council, City Manager, Chief Financial Officer and City Clerk. Also, within thirty days of the end of each quarter a full report of the City's operational cash investment portfolio report will be provided with additional information such as market pricing. This report shall include the type of investment, issuer, date of maturity, par and dollar amount invested in all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund (LAIF), the report shall also include a current market value as of the date of the report and shall include the source of this same valuation.
81 City of South Lake Tahoe
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9 Annual Report – This investment policy will be presented annually following the close of the fiscal year, to the City Council for approval.

Financial Statements per GASB #31 – City Treasurer will provide the portfolio’s market value gains/losses to Finance to be incorporated in the fiscal year-end balance sheet.

Financial Statements per GASB #40 – Effective June 30, 2005, additional disclosure is required. City Treasurer will provide detailed maturity and rating information to Finance to be incorporated in the Annual Comprehensive Financial Report (ACFR).

XVII. INVESTMENT POLICY ADOPTION
The City’s investment policy shall be adopted by resolution of the City’s legislative authority. Per Government code, the policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.

XVIII. GUIDELINES
Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.

1. Investment Transactions: Every investment transaction must be authorized, documented and reviewed by the local agency Treasurer.

2. Pooled Cash: Whenever practical, local agency cash should be consolidated into one bank account and invested on a pooled concept basis. Interest earnings may be allocated to fund cash and investment balances.

3. Competitive Bids: Purchase and sale of securities should be made on the basis of competitive offers and bids when practical.

4. Cash Forecast: The cash flow for the local agency should be analyzed with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements.

5. Investment Limitations: Security purchases and holdings shall be maintained within statutory limits imposed by the Investment Policy and California Government code. Any investments not listed are not subject to % limitations.

Bankers’ Acceptance 40% Code Section 53601 (f)
Commercial Paper 25% Code Section 53601 (g)
Medium-Term Corporate Notes 30% Code Section 53601 (j)
Negotiable Cert. Of Deposit 30% Code Section 53601 (h)

6. Liquidity: The marketability (salability) of a security should be considered at the time of purchase as the security may have to be sold at a later date to meet unanticipated cash demand. 82 City of South Lake Tahoe
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10 7. Long-Term Maturities: As a general rule, long-term maturities should not represent a significant percentage of the total portfolio, as the principal risk involved can outweigh the potential for higher earnings.

8. Authorized Broker/Dealers: Execute investment transactions with previously approved broker/dealers who have certified compliance with the City’s investment policy.

9. Diversification: The portfolio should consist of a mix of various types of securities, issuers and maturities.

10. Annual Review: The investment portfolio will be reviewed yearly by the Treasurer, City Manager and Finance department representative.

11. Evaluation of Certificates of Deposit: The following items will govern the valuation:
a. Time Certificates of Deposit (TCD) are FDIC insured. b. Negotiable Certificates of Deposit (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.

83 City of South Lake Tahoe
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11 Attachment A:

The City's specific permitted investment guidelines are summarized below. It should be noted that the City's permitted investments are more restrictive than the State guidelines.

Percentages of investment allocation and investment maximum limits apply at the time of purchase. The designated portfolio manager may at his/her discretion temporarily exceed these guidelines when repositioning the portfolio. Should the manager recommend an extended departure from the diversification’s guideline (more than 90 days) City council approval will be required.

The Investment Policy sets forth minimum credit ratings for each type of permitted security.

These credit limits apply at the time of the initial purchase of the said security and a subsequent change in rating status does not necessarily force the sale or disposition of the investment. In the event that the security is later downgraded below minimum required levels, the Treasurer and City staff will assess the risk exposure, make a decision on the course of action, and advise the City council.

PERMITTED INSTRUMENTS

CITY GUIDELINES
Certificates of Deposits 5 years / 25% max / $250,000 max per issuer Bankers Acceptances 180 days / 40% max / 5% per issuer/20% max per City Investment policy
Securities of the U.S. Government or its Agencies 5 years / 50% max Commercial Paper 270 days / 25% max / 5% per issuer combined Medium-Term Corporate Notes 5 years / 30% max / $2,000,000 combined any Issuer / max of 30% of portfolio
Local Agency Investment Fund (State Pool) LAIF $75,000,000 / no limit Negotiable Certificates of Deposit 5 years / 30% max / lesser of 5% or $1,000,000 per issuer
Passbook Savings Account 10 days / investments under $100,000 Government Security Mutual Funds 20% max / 10% per issuer Bonds, Notes issued by:

California State and Local Agencies
5 years / 20% max / 5% per issuer
Bond Proceeds See section XII - number 11
U.S. Treasuries Notes and Bonds 5 years / 50% of portfolio Supranationals 5 years / 30% max / AA rated
Reverse Repurchase Agreements Not allowed
Mortgage Pass Through Securities Not allowed
Repurchase Agreements Not allowed
84 City of South Lake Tahoe
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12 GLOSSARY
AGENCIES: Federal agency securities.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of South Lake Tahoe. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

BANKERS ACCEPTANCES (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered for securities. (When you are selling securities, you ask for a bid.) See offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATES OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipts is delivery of securities with an exchange of a signed receipt for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon national amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities.) 85 City of South Lake Tahoe
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13 DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value (e.g., U.S. Treasury bills).

DIVERSIFICATION: Dividing investment funds among a variety of securities and issuers offering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLB’s is to liquefy the housing related assets of its members who must purchase stock in their district bank.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL FUNDS: Non-interest bearing deposits held by member banks at the Federal Reserve, also used to denote immediately available funds in the clearing sense. Fed Funds also used to refer to these funds.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system.

GOVERNMENTAL NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
86 City of South Lake Tahoe
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Fiscal Year 2022-2023
14 Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHA mortgages. The term pass-throughs is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LAIF (Local Agency Investment Fund): A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $75,000,000 for any agency. The City is restricted to a maximum of fifteen transactions per month.

It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-quarter of one percent of the earnings. The interest rates are competitive with other securities because of pooling the State’s surplus cash with the surplus cash deposited. This creates a multi-billion-dollar money pool and allows diversified investments. In a high interest rate market, the City does better than LAIF, but in times of low interest rates, LAIF yields are higher.

The City continually invests in the Local Agency Investment Fund.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET FUNDS: Open-ended mutual fund that invests in highly liquid and safe securities (bills, commercial paper, bankers’ acceptances, CD’s, etc.) and pays money market rates of interest. The fund’s net asset value remains a constant $1 a share.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserves most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and 87 City of South Lake Tahoe
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15 Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENTS (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security Abuyer@ in effect lends the Aseller@ money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is, increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC RULE 15C3-l: See uniform net capital rule.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

SUPRANATIONALS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRARO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
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16 TREASURY BILLS: A non-interest-bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BOND: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from 2 to 10 years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.

Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 89 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 7
Agenda Item: Fiscal Year 2021-22 Quarterly Financial Status Report - Quarter Ending June 2022 Executive Summary: In accordance with the City's Financial Policies, the Finance Department submits reports to City Council on a periodic basis to provide assurance of budget compliance and for informational and comparative purposes. Attachment 2, “FY 2021/22 Quarterly Budget and Financial Status Report for Period Ending June 30, 2022” summarizes operating revenues and operating expenditures (unaudited figures) for the General Fund and Measure S Sales Tax Fund for the year-to-date providing an analysis of any significant budget variances.

Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member: Andrew Black, Financial Services Supervisor Responsible Staff Member: Andrew Black, Financial Services Supervisor, (530) 542-6016 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Financial Status Report.docx
02-FY 2021-22 Qtrly Budget Report June 2022.pdf
90 Council Agenda Report- September 6, 2022 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 6, 2022
Title: Fiscal Year 2021/22 Quarter End Financial Status Report as of June 2022 Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance, (530) 542-7431; Andrew Black, Financial Services Supervisor, (530) 542-6016
Background: The Finance Department submits quarterly reports to City Council to provide assurance of budget compliance and for informational and comparative purposes throughout the year. Attachment 2, “FY 2021/22 Quarterly Budget and Financial Status Report for Period Ending June 30, 2022” is an unaudited snapshot of year-to-date actual revenues and expenditures for the General Fund for that period.

Issue and Discussion: At the end of June 2022 with 75.0% of the year complete, actual General Fund revenues were at 72.3% of the amended budget, while expenditures were at

62.7% of appropriations. All departmental expenditures were below the 75.0% threshold allocated to the first three quarters of the fiscal year.

See Attachment 2 for further analysis.

Financial Implications: At June 30, 2022, or after the first nine months of the fiscal year, actual General Fund revenues exceeded expenditures by $0.3 million. This net revenue can be attributed to a strong performance in Property Tax revenue that met and marginally exceeded its total budget for the fiscal year (before clean-up payment), accounting for 25.4% of total General Fund revenue received to date. Property tax revenue exceeded last year’s receipts for the same time frame by $478K or 5.5%. City Transient Occupancy Tax (TOT) and Sales Tax, the City’s other two primary revenue sources, were below last fiscal year by 2.6% and 0.7% respectively. The City TOT decrease of $1.0m is primarily due to the Measure T VHR ban impact.

It was partially offset by a $0.8m increase in the Project area TOT. Nonetheless, both, total TOT and Sales tax revenues are expected to meet their budget projections for this fiscal year.

Overall, General Fund revenues were approximately $2.6 million higher than the same period last year due to a strong revenue performance in several other revenue categories, in addition to the Property tax. This increase is also attributed to a transfer in of American Rescue Plan Act (ARPA) funding totaling $1.1 million. On the expenditure side, all departments expended less than 75% of their total budget for the current fiscal year.

Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEA) Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases of supplies)
Policy Implications: Consistent with City’s Financial Policies 91 2021‐22 QUARTERLY FINANCIAL REPORT                   Page 1 of 2                     3rd QUARTER ENDING JUNE 30, 2022

CITY OF SOUTH LAKE TAHOE
2021-22 QUARTERLY FINANCIAL REPORT
3rd QUARTER ENDING JUNE 30, 2022
Thisreportsummarizesthe City’sfinancial position forthe General Fund for Fiscal Year 2021‐22 displaying expenditures at the department level and revenues by type. It compares actual revenues and expenditures received through June 2022 to the total budget.

General Fund Financial Condition
As of June 30th, with 75% of the year complete, General Fund revenues are at 72.3% of projections and expenditures are at 62.7% of appropriations.

Revenues. The top three revenues,
Property Tax, City Transient Occupancy
Tax (TOT), and Sales Tax generated 56.6%
of the total $36.1 million General Fund
revenues collected through June 30th.

Property Tax and Motor Vehicle License
Fees (MVLF) received through June 30,
2022 reflect two major installments for
the current year. Their positive
performance compared to the same
period last year (an increase of 5.5% and

5.2% respectively) resulted in those
revenues meeting or exceeding their
total budgets for the year.

Total TOT collected comprised 54.2% of
its total budget as of June 2022.   TOT
receipts, including TOT from the Project
area, but excluding TOT audits, were
$244K or 2.6% below last year.

Approximately $250K of TOT receipts were delinquent as of June 2022 resulting in a revenue decrease compared to last year.

Sales tax and Measure Q revenues were at 63.9% and 69.7% of their total respective budgets at June 30th, and combined were $44K below last year. Decreases in Sales Tax and TOT revenue described earlier could be attributed to slight decline of tourist activity in town compared to Spring 2021.

Overall, revenues were $2.6 million higher than last year. Of this increase, $1.1 million is attributed to the revenue from the American Rescue Plan Act (ARPA) transferred to the General Fund through June 30th. Building and Planning Fees collected already exceeded their total budget by $382K and were $566K above last year’s for the same time period. Positive performance in other departmental revenuessuch asincreasesin Parks and Recreation ($218K), Police revenue ($202K), and an increase in Real Property Transfer Tax ($335K) reported under Finance‐Other Revenues also contributed to the overall revenue increase compared to the first three quarters of last year.

Expenditures. Of the $35.8 million in total actual expendituresthrough June 30th, approximately $19.6 million or 54.8% of total expended is personnel expense representing 20 payroll periods, or 74.1% of periods for the year. Out of the remaining 45.2% or approximately $16.2 million of actual expenditures, $10.5 million is attributed to transfers‐out, Revenues by Type
Total Budget as
of June 30
Actuals through
June 30
As % of
Budget
Property Tax 9,175,180 $              $             9,186,868 100.1% Transient Occupancy Tax 10,227,113                              5,021,591 49.1% Transient Occupancy Tax ‐ Project Area 6,742,177                                4,183,282 62.0% Sales Tax 6,300,650                                4,027,504 63.9% Measure Q 3,192,325                                2,225,850 69.7% Motor Vehicle License Fees (MVLF) 2,285,000                                2,534,976 110.9% Franchise Taxes 1,500,000                                1,194,314 79.6% Business License Tax 1,647,000                                   853,770 51.8% Finance ‐ Other Revenues 1,072,050                                   904,335 84.4% General Government 309,070                                           7,395 2.4% Police                1,514,552                1,110,975 73.4% Fire 1,644,693                                   840,841 51.1% Public Works 463,300                                      438,741 94.7% Development Services 1,548,003                                1,930,345 124.7% Parks and Recreation 1,205,400                                   488,058 40.5% Transfers In 70,000                                            70,000 100.0% Miscellaneous General Fund 1,086,002                                1,108,263 102.0% REVENUES TOTAL 49,982,515 $           $          36,127,109 72.3% 92 2021‐22 QUARTERLY FINANCIAL REPORT                   Page 2 of 2                     3rd QUARTER ENDING JUNE 30, 2022 $1.8 million to professional, technical and other contract services, $1.8 million to miscellaneous general expense including taxes and fees, travel and training, communications etc., $0.8 million to purchases of tools, parts, software, machinery and equipment, and the
remaining $1.3 million to utilities,
generalsupplies and other miscellaneous
expense.

All departments expended less than 75%
of the budget allocated to the first three
quarters. The annual payment of the
CalPERS Unfunded Accrued Liability
(UAL) was made in July 2022 ($6.2 million
General Fund portion) and will greatly
impact the percentage of actual
expenditures to total budget in the final
quarter of FY 2021‐22.

The overall expenditures exceeded last year’s first three quarters actuals by 11.6% or approximately $3.7 million. This increase is primarily attributed to several increases in transfers out, such as those to the City’s Debt Service fund ($517K), City CIP ($298K), TOT Trust Fund ($200K), Airport ($195K), and Ice Arena ($180K), and is also attributed to several new transfers out, such as those to the Housing Fund ($310K), VHR Program ($375K), and Community/General Plan ($250K) most of which were approved during mid‐year.

Measure S Sales Tax General Fund
Measure S, a 1% city‐wide sales and use tax, went into effect on April 1, 2021. In FY 2021/22 budget, this revenue is projected to generate approximately $6.4 million.

Revenues. The City received Measure S
Sales Tax totaling $4.5 million as of
June 30th, 2022.

Expenditures. During the FY 21/22
budget adoption, City Council allocated
the majority of the projected annual
revenue to several projects, including
the emergency communications
system for Fire, Police, and Public
Works (partially financed by a
lease/purchase agreement), Fire
Station II staffing and rehabilitation,
Stormwater management, annual road
reconstruction, and vehicle/equipment
replacement. As of June 30th, $6.1
million has been transferred out to
these projects and programs.

Measure S Sales Tax
Total Budget as
of June 30
Actuals
through
June 30
As % of
Budget

REVENUES
Measure S Sales Tax 6,440,000 $           $       4,484,563 69.6% REVENUES TOTAL 6,440,000 $           $       4,484,563 69.6% EXPENDITURES and FINANCING USES
Transfer out for:

PAYGO ‐ Communications System 1,860,920                        1,860,920 100.0% Financing ‐ Communications System 554,643                               554,643 100.0% Fire Station II Rehabilitation                 500,000              500,000 100.0% Fire Station II Staffing 396,010                  ‐                        0.0% Fire Marshall postion (50%) & vehicle                 171,000                90,000 52.6% Stromwater Management Program 50,000                                   50,000 100.0% Road Reconstruction 2,500,000                        2,500,000 100.0% Vehicle and Equipment Replacement 500,000                               500,000 100.0% EXPENDITURES TOTAL 6,532,573 $           $       6,055,563 92.7% Expenditures by Department
Total Budget as
of June 30
Actuals through
June 30
As % of
Budget
General Government 4,679,763 $              $             2,336,623 49.9% Finance 2,535,290                                1,864,285 73.5% Miscellaneous General Fund 17,295,200                            12,043,875 69.6% Police 13,058,507                              7,639,546 58.5% Fire 9,945,125                                5,855,029 58.9% Public Works 4,009,353                                2,950,081 73.6% Development Services 2,176,898                                1,269,355 58.3% Parks and Recreation 3,402,639                                1,846,400 54.3% EXPENDITURES TOTAL 57,102,775 $           $          35,805,194 62.7% 93 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 8
Agenda Item: Ordinance - Amending City Code Chapter 3.45 (Purchasing) to Clarify Language Regarding Bidding Process and Update Public Contract Procurement Thresholds (Second Reading) Executive Summary: On August 9, 2022, the City Council held a first reading of this ordinance and set the second reading for this meeting. Updates to the Purchasing Ordinance are proposed to increase the public contract thresholds consistent with state law, as well as to amend sections regarding bid protests and informal bidding, and other minor updates consistent with state law and best practices.

Requested Action / Suggested Motions: Pass an Ordinance amending Chapter 3.45 (Purchasing) of the South Lake Tahoe City Code to clarify language regarding the bidding process and update public contract procurement thresholds.

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
Attachments:
01-Staff Report - Ordinance Purchasing Amendments.docx
02-Ordinance - Amending Chapter 3.45 Purchasing.docx
03-CSLT City Code Purchasing Chapter 3 Redline.pdf
04-Notice of Publication Amending Chapter 3.45 (Purchasing).pdf 94 Council Agenda Report- September 6, 2022 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 6, 2022
Title: An Ordinance Amending City Code Chapter 3.45 (Purchasing) to clarify language regarding bidding process and update Public Contract procurement thresholds (second reading)
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: This is a second reading and consideration for final adoption of the proposed updates to section 3.45 of the City Code as follows:
 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. 95 Council Agenda Report- September 6, 2022 Page 2 of 2 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
96 Ordinance 2022-XXX September 6, 2022 Page 1 of 7
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 97 Ordinance 2022-XXX September 6, 2022 Page 2 of 7
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.
98 Ordinance 2022-XXX September 6, 2022 Page 3 of 7

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.
99 Ordinance 2022-XXX September 6, 2022 Page 4 of 7
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.
100
Ordinance 2022-XXX September 6, 2022 Page 5 of 7
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. 101
Ordinance 2022-XXX September 6, 2022 Page 6 of 7

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 September 6, 2022 by the following vote:
102
Ordinance 2022-XXX September 6, 2022 Page 7 of 7
Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Devin Middlebrook, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
First Reading: August 9, 2022
Published: August 12, 2022
Second Reading: September 6, 2022
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
103
South Lake Tahoe City Code
Chapter 3.45 PURCHASING

The South Lake Tahoe City Code is current through Ordinance 1163, passed August 9May 3, 2022.

Chapter 3.45

PURCHASING
Sections:

Article I. Purchasing of Materials, Supplies, Equipment, and Nonpublic Projects

3.45.020 Formal competitive bidding.

3.45.030 Informal bidding.

3.45.040 Control procedures.

3.45.050 Bifurcation of purchases.

3.45.060 Sole source purchases.

3.45.070 Emergency purchases.

3.45.080 Environmentally preferable products.

3.45.090 Cooperative purchasing.

3.45.095 Valid business and professions tax certificate.

Article II. Public Contracts and the Uniform Public Construction Cost Accounting Act

3.45.100 Requirements for public projects.

3.45.110 Director of public works authority.

3.45.120 Formal competitive bidding.

3.45.130 Informal bidding.

3.45.140 Waiver of irregularities and rejection of bids.

3.45.150 Lowest responsible bidder.

3.45.160 Prohibition against splitting projects.

3.45.170 Change orders.

3.45.180 Emergencies.

Article III. Expenditure of City Funds

3.45.190 Award of contracts by city council.

3.45.200 Procurement methods.

3.45.210 Blanket purchase orders.

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 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 104
South Lake Tahoe City Code
Chapter 3.45 PURCHASING

The South Lake Tahoe City Code is current through Ordinance 1163, passed August 9May 3, 2022. 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 contract 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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-1)

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,. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-2) 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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-3)

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-4)
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South Lake Tahoe City Code
Chapter 3.45 PURCHASING

The South Lake Tahoe City Code is current through Ordinance 1163, passed August 9May 3, 2022.

3.45.060 Sole source purchases.

Where an acquisition would otherwise be subject to formal 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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-5)

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-6)

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A).

Code 1997 § 22-7)

3.45.090 Cooperative purchasing.

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-8)

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. (Ord. 1109 § 1 (Exh. A)) 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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-20)

3.45.110 Director of public works authority.

A. Public project contracts of $60,00045,000 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 $200175,000 or less may be executed by the director of public works or his or her designee in accordance with the provisions of this article. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-21) 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 $200175,000 shall be bid in accordance with the procedures set forth in Public Contract Code Section 22037 et seq. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-22) This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.
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South Lake Tahoe City Code
Chapter 3.45 PURCHASING

The South Lake Tahoe City Code is current through Ordinance 1163, passed August 9May 3, 2022.

3.45.130 Informal bidding.

A. Monetary Limit. Public contracts of $200175,000 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.

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-23)

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-24)

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-25)

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-26)

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-27) 107
South Lake Tahoe City Code
Chapter 3.45 PURCHASING

The South Lake Tahoe City Code is current through Ordinance 1163, passed August 9May 3, 2022.

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-28)
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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-30)

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. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-31)

3.45.210 Blanket purchase orders.

Blanket purchase orders may be issued when a department or employee has budget authority to incur such expenses.

The blanket purchase order shall serve as authority to make purchases within the established monetary limits. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A). Code 1997 § 22-32) 1 Code reviser’s note: Ord. 1109 adds the provisions of this section as Section 3.45.100. The section has been editorially renumbered to avoid duplication of numbering.
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LEGAL PUBLICATION

CITY OF SOUTH LAKE TAHOE

SUMMARY OF PROPOSED ORDINANCE
NOTICE IS HEREBY GIVEN that on August 9, 2022, the City of South Lake Tahoe City Council waived first reading, read by title and referred to second reading and adoption at the September 6, 2022, City Council meeting the following ordinance:
“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” City Attorney’s Summary of Ordinance:
“This ordinance would make certain updates to the City’s purchasing code in to align with changes in state law and best practices. These changes include clarifying that bid protests are only available awards in response to an invitation to bid that must be awarded to the lowest qualified responsible bidder, and are not available for professional services agreements or concessionaire agreements that are awarded through a request for proposals. Additionally, the informal bidding provision is amended to allow professional service contracts to be awarded based on qualifications and not the lowest responsible quote. For public works contracts, the dollar thresholds are updated to be consistent with changes in state law. The provision for blanket purchase orders is removed because that type of purchasing is no longer used by the City.” A copy of the proposed ordinance in its entirety is available for review in the City Clerk’s Office located at 1901 Lisa Maloff Way, South Lake Tahoe, California. To receive an electronic copy, contact the City Clerk at [email protected] Susan Blankenship

SUSAN BLANKENSHIP

CITY CLERK

CITY OF SOUTH LAKE TAHOE
1901 LISA MALOFF WAY, Ste 206
SOUTH LAKE TAHOE, CA 96150
(530) 542-6005
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 9
Agenda Item: California Office of Traffic Safety Enforcement Grant Fiscal Year 2022-2023 Executive Summary: The Police Department has applied for an OTS STEP grant which has been "tentatively approved" by OTS in an amount up to $65,000.00 to fund extra traffic enforcement, training, and traffic related equipment. City Council authorization is required by OTS and the City to accept, budget, and receive reimbursement of grant funds. OTS anticipates final approval and a grant agreement in place by October 1, 2022.

Requested Action / Suggested Motions: Pass a Resolution authorizing the application, budget, and reimbursement of grant award by California Office of Traffic Safety (OTS) for a Selective Traffic Enforcement Program (STEP) in amount up to $65,000.00, and upon final approval from OTS, authorizing the Mayor to execute the grant agreement.

Responsible Staff Member: David Stevenson, Chief of Police Responsible Staff Member: David Stevenson, Chief of Police (530) 545-2765 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Traffic Enforcement Grant.docx
02-Resolution - Traffic Enforcement Grant.docx
03-OTS Tenative Grant Approval Email 080422.pdf
04-OTS Grant Application 081722.pdf
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Council Agenda Report September 6, 2022 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: September 6, 2022
Title: California Office of Traffic Safety enforcement grant FY 22-23 Location: Citywide
Responsible Staff Member: Chief David Stevenson, (530) 545-2765 Background: The California Office of Traffic Safety (OTS) provides grants to local jurisdictions for various traffic safety enforcement programs. On January 28, 2022 the Police Department submitted an application to OTS for a Selective Traffic Enforcement Program (STEP) grant. The grant amount requested was $79,023.92. On June 22, 2022 the Police Department received notification that our application has been “tentatively approved” for up to $65,000.00.

OTS and City finacial policy require approval by City Council for the application, acceptance, budget, and reimbursement for this grant.

Issue and Discussion: Traffic Collisions including those involving impaired drivers, vehicle versus bicycle and/or pedestrians, and collisions involving motorcycles continue to be a safety issue in the City.

The OTS STEP grant will be used to conduct traffic enforcement operations, public information campaigns, and officer training related to impaired drivers. The grant will also be used to purchase two “radar trailers” to provide portable traffic calming options in the City. The goal of the program is to reduce the number of injury and fatal traffic collisions in the City.

Financial Implications: There will be no impact to the general fund. This is a reimbursement grant.

The tentative approval for the program is not to exceed $65,000.00.

Expenditures for the program will be reimbursed quarterly. If approved, effective October 1, 2022; budget in account number 229 02110 should be amended as follows:

Revenue: #33130 $65,000.00
Expenditures: Final expenditure accounts to be determined after receipt of the grant agreement from OTS and after adjustments to personnel and equipment costs based on the amount approved versus the original amount requested not to exceed $65,000.00 combined.

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

Policy Implications: This type of traffic program is consistent with Police Department policy. 111
Resolution 2022-XXX September 6, 2022 Page 1 of 1
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
September 6, 2022
Authorizing the application, budget, and reimbursement of grant award by California Office of Traffic Safety (OTS) for a Selective Traffic Enforcement Program (STEP) in amount up to $65,000.00, and upon final approval from OTS, authorize the Mayor to execute a grant agreement.

BACKGROUND
A. The California Office of Traffic Safety (OTS) provides grants to law enforcement agencies to support traffic safety programs.

B. The Police Department applied for and was tentatively awarded an OTS STEP grant in an amount not to exceed $65,000.00.

C. The Police Department intends to utilize these grant funds to increase traffic safety through special enforcement operations, training, public outreach, and the purchase of two speed feedback radar trailers.

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 and accepts the OTS STEP grant award up to $65,000.00.

2. Authorizes the Mayor to execute a grant agreement including any extensions or amendments thereof and any subsequent contract with the State in relation thereto once the agreement is received from the State.

3. Authorizes increasing the 2022/2023 City budget account # 229 02110 as follows:

Revenue: #33130 $65,000.00
Expenditures: #41040 (Personnel), #44050 (Training travel), and #46110 (Equipment) to be determined after receipt of grant agreement by the State not to exceed $65,000.00 combined.

Adopted by the City of South Lake Tahoe City Council on September 6, 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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1 David Stevenson
From: OTS Email <[email protected]>
Sent: Wednesday, June 22, 2022 3:46 PM
To: David Stevenson; Doug Sentell
Subject: OTS Tentatively Approved Your Application
Congratulations! Through a competitive process, the Office of Traffic Safety (OTS) has tentatively approved your application 23‐004124 in the amount of $65,000 with the proposal titled “Selective Traffic Enforcement Program (STEP).”  This tentative award is contingent on approval from the National Highway Traffic Safety Administration.

Your OTS Coordinator will contact you to discuss your proposal and explain the grant agreement process. It is our goal to have all new grants start the first of October. If approval from a City Council or the Board of Supervisors is required, you should begin that process now. Do not incur grant reimbursable costs yet, as this is a tentative award.

The OTS will initiate a statewide media news release regarding this year's applications selected for funding. Your agency should not publicly announce this tentative award until the grant agreement is fully negotiated and signed by the OTS.

Again, congratulations on the success of your application.

Sincerely,
Barbara L. Rooney
Director
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: September 6, 2022
Agenda Item #: 10
Agenda Item: State Water Resources Control Board Grant Funding and Contract Award to Herback General Engineering for Tahoe Valley Stormwater and Greenbelt Improvement Project Executive Summary: The Director of Public Works, authorized through Resolution 2021-017, signed an implementation grant agreement between the SWRCB and the City of South Lake Tahoe for the Tahoe Valley Stormwater and Greenbelt Improvement Project (Tahoe Valley Project). The $6,922,904 implementation grant must be accepted and appropriated to the Tahoe Valley Project via resolution (Attachment 03).

Public Works issued a Notice to Bidders on April 15, 2022, soliciting bids for the Tahoe Valley Stormwater & Greenbelt Improvement Project, Phase 1. On June 1, 2022, Public Works received two competitive bids. The lowest responsive and responsible bidder was Herback General Engineering with a Base Bid total of $6,558,731.36 and an Add Bid Alternate "A" bid in the sum of $153,780.00. Public Works has determined the award of both the Base Bid amount and Add Bid Alternate "A" Bid is recommended for award to Herback General Engineering for the total contract amount of $6,688,511.36.

Project work includes construction of a storm drain collection and conveyance system between west F Street and South Bonanza Avenue, water quality treatment basins, water quality treatment swales, and storm drain system improvements between James Avenue and Council Rock Avenue.

Requested Action / Suggested Motions: (1) Pass a Resolution accepting and appropriating State Water Resources Control Board (SWRCB) Proposition 1 implementation grant funding to the Tahoe Valley Stormwater and Greenbelt Improvement Project ($6,922,904); and (2) Pass a Motion authorizing and directing the Mayor to execute an agreement with Herback General Engineering in the amount of $6,688,511.36 and approve a 10% construction contingency in the amount of $668,852 for the Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase 1.

Responsible Staff Members: Stan Hill, Engineering Manager and Jason Burke, Complete Streets Manager
Responsible Staff Member: Stan Hill, Engineering Manager (530) 542-6039 Jason Burke, Complete Streets Projects Manager (530) 542-6038 Reviewed and Approved By:

Anush Nejad, Director of Public Works
Susan Blankenship, City Clerk
Olga Tikhomirova, Finance Director
Heather Shroud, City Attorney
Joseph Irvin, City Manager
Attachments:
01-Staff Report.docx
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02-Project Location Map.pdf
03-Resolution-SWRCB Grant Acceptance.docx
04-Agreement-Herback.docx
05-Res 2021-017.pdf
06-Grant Agreement rv
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Council Agenda Report- September 6, 2022 Page 1 of 4
City of South Lake Tahoe
Report to City Council
Meeting Date: September 6, 2022
Title: State Water Resources Control Board Grant Funding and Award Construction Agreement to Herback General Engineering
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 to Tahoe Keys Blvd (see Attachment 02-Project Location Map) Responsible Staff Member: Stan Hill, Engineering Manager (530) 542-6039 Background: City Council adopted the Tahoe Valley Area Plan on June 2, 2015, which includes the Tahoe Valley Stormwater and Greenbelt Improvement Project (Tahoe Valley) as a vital environmental and community improvement project. Improvements envisioned with the Tahoe Valley Stormwater and Greenbelt Improvement Project provide multiple benefits as follows:
 Stormwater treatment collection, conveyance, treatment, and stream environment zone (SEZ) enhancement;
 Drainage infrastructure improvements to protect local businesses and support infill development;
 Bicycle and pedestrian improvements, all weather crossings, new lighting and improved connectivity; and
 Community Park and public space enhancements within the core of the Tahoe Valley town center (Greenbelt area).

The Project area can be characterized as three specifically defined geographic regions as follows:

1. Upper Region – West F Street to Emerald Bay Road at B Street;

2. Central Region – Greenbelt area; located between Emerald Bay Road and U.S. 50; and

3. Lower Region – U.S. 50 at 4th Street down to Tahoe Keys Blvd near Council Rock Ave.

Phase 1 of the Project includes the Upper Region (Item 1) and the Lower Region (Item 3) of the Project area. Phase 2 consists of the Central Region (Item 2), Greenbelt area.

Phase 1 construction is scheduled to start upon the award of the contract and be completed in the fall of 2023. Phase 2 construction is programmed to start in the spring of 2023 and be completed in the fall of 2023.
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Council Agenda Report- September 6, 2022 Page 2 of 4
Issue and Discussion:

ACTION 1: Accept and Appropriate State Water Resources Control Board (SWRCB) Proposition 1 Implementation Grant Funding for the Tahoe Valley Project ($6,922,904.00) In July 2020, the Public Works Engineering Division submitted a grant application to the SWRCB for implementation grant funding to construct the Tahoe Valley project. On February 16, 2021, the City of South Lake Tahoe (City) received a conditional grant award letter from the SWRCB noting the City was awarded an implementation grant in the sum of $6,922,904. The City and SWRCB have coordinated during the past year, to finalize and execute the agreement with SWRCB. The final agreement is included as Attachment 06. The proposed resolution (Attachment 03) attached to this City Council agenda item accepts and appropriates the SWRCB Prop 1 grant funding to the Tahoe Valley project for construction of improvements (Account No. 301-40030-48030).

ACTION 2: Award Tahoe Valley Stormwater and Greenbelt Improvement Project to Herback General Engineering ($6,688,511.36). and approve a 10% Construction Contingency ($668,852) On April 15, 2022, Public Works advertised the Tahoe Valley Stormwater & Greenbelt Improvement Project bid over the City PlanetBids website. The Project Notice to Bidders was advertised in the Tahoe Daily Tribune on April 15th and April 22, 2022. The Project bidding period closed on June 1,2022.

On June 1, 2022, Public Works received two (2) sealed bids which were publicly opened and read aloud at the scheduled bid opening located at the Public Works Department Office. The lowest responsible and responsive bidder was determined to be Herback General Engineering.

Bid results are listed in Table 1. The Engineer’s Estimate for the Total Base Bid and Add Bid Alternate “A” was for the sum of $7,386,035.

Table 1 – Summary of Bid Results
Name of Contractor Base Bid
Amount
Add Bid
Alternate “A”
Total Bid Price
Herback General Engineering $6,534,731.36 $153,780.00 $6,688,511.36 M.A. Steiner Construction, Inc. $7,399,270.00 $150,620.00 $7,549,890.00

Add Bid Alternate “A” is for Project area tree removal and construction of Buck & Pole fencing around the proposed water quality treatment basins.

Financial Implications:

ACTION 1: Accept and Appropriate State Water Resources Control Board (SWRCB) Proposition 1 Implementation Grant Funding for the Tahoe Valley Project The grant agreement (Attachment 06) between the City and the SWRCB was executed by the Director of Public Works in accordance with Resolution 2021-017 (Attachment 05) which authorized and designated the Director of Public Works to sign, for and on behalf of the City of South Lake Tahoe, the grant agreement for the Project and any amendments thereto. The grant agreement was signed by the Director of Public Works in accordance with directives defined within Resolution 2021-017.
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Council Agenda Report- September 6, 2022 Page 3 of 4
The proposed resolution accompanying this staff report (Attachment 03) will formally accept the $6,922,904 in SBWRCB Proposition 1 Implementation Grant funding and appropriate the funding to the Tahoe Valley Stormwater and Greenbelt Improvement Project.

The SWRCB implementation grant Agreement No. D2112147 includes a total match contribution of $1,869,035, which includes both Phases I and 2. Table 2 lists the components of the local matching funds.

Table 2 – Match Contributions
Local Match Contribution Source Amount
City-met Planning Grant Local Contribution per SWRCB $52,710 City Local Match Contribution Appropriated by City Council via Resolution $706,442 TRPA Mitigation Funds $941,548
S.W. Gas In-lieu Paving Fees (paving residential streets following construction) $425,750 Total Funding Programmed for Local Contribution Requirement: $2,126,450 Table 2 demonstrates the qualifying local match contribution of $2,126,450 exceeds the SWRCB Proposition 1 grant match contribution requirement ($1,869,035).

Approval for use of the TRPA Mitigation Funds for the Tahoe Valley Project is scheduled to be heard at the September TRPA Governing Board meeting. TRPA staff have advised Public Works of their support to use the Mitigation Funds to construct the Tahoe Valley Project. Although the TRPA Mitigation Funds will be necessary to complete construction of Phase 2, the current matching funds on hand are sufficient budget to award and construct Phase 1 of the Project.

ACTION 2: Award Tahoe Valley Stormwater and Greenbelt Improvement Project to Herback General Engineering
At the August 9, 2022, City Council meeting, the Engineering Division, Complete Streets Manager, Jason Burke requested through resolution, City Council’s commitment and appropriation of $706,442.00 in undesignated general reserve funding. City Council approved the resolution, which provides a 10% local match requirement to allow award of the construction agreement (Attachment 04) between Herback General Engineering and the City.

Funding for the Project as of this date is summarized in Table 3.

Table 3 – Project Funding Summary
Funding Source Revenue Code Grant Amount
State Water Resources Control Board, Prop. 1 33241 $6,922,904.00 City Council Approved City Match – Phase 1 36300 $ 706,442.00 Total Funding-to-Date Available for Phase I Project Construction: $7,629,346.00 The total anticipated cost to award Phase I, including the 10% contingency and other costs are summarized in Table 4.
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Council Agenda Report- September 6, 2022 Page 4 of 4
Table 4 – Phase 1 Construction Expenses
Construction Account
Categories
Description of Expenses Amount
301-40030-48030 Herback General Engineering Contract $6,688,511.36 301-40030-48030 10% Construction Contingency $668,851.14 301-40030-48044 Labor Compliance $24,000.00
301-40030-48033 Materials Testing $30,000.00
Anticipated Total Phase 1 Construction Expenses: $7,411,362.50 The total existing allocated local funding, plus the SWRCB grant exceeds the anticipated total construction cost of the project.

Public Works will continue seeking sufficient funding to construct Phase 2 of the Project which is programmed to start and finish in 2023. The balance of funding appropriated to overall Project construction will be applied to the construction of Phase 2 project improvements and construction administration.

Environmental Considerations: The Project includes work within jurisdictional wetlands, stream environment zones, and a perineal streambed. Consequently, the Project requires significant environmental permitting as follows:
 CEQA Mitigated Negative Declaration – Adopted by the Planning Commission on May 9, 2019.
 TRPA Construction Permit – Issued by TRPA in April 2022.  Lahontan Construction Permit – Issued by Lahontan in June 2022  401/404 Permit – Issued as a part of the Lahontan permit in June 2022  Tree Removal Permit – Issued by Cal Fire in June 2022  Streambed Alteration Permit – Determined unnecessary by default All environmental permitting for Phase 1 construction is complete.

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).

Phase 2 (Greenbelt area) of the Tahoe Valley project not only includes Stream Environment Zone (SEZ) restoration and expanded water quality treatment. Phase 2 includes construction of new bike and pedestrian facilities, playground equipment, wayfinding signs, park benches, streetlights, and other public park and sustainable transportation improvements for public use. 131
South Y
Tahoe Valley Storm Water
Improvement Project Area Map
Department of
Public Works -
Engineering Division
Document Path: \\sltpublicworks\public works\GIS files\Projects\Engineering\TahoeValleyGreenbelt\TahoeValleyGreenbeltProjectMap.mxd 12/16/2019 ±
0 500 1,000
Feet
Tahoe Valley Greenbelt Location
Tahoe Valley SWIP Project Boundary
City Boundary
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133
Resolution 2022-XXX September 6, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
September 6, 2022
`
Accept and Appropriate State Water Resources Control Board, Proposition 1 Implementation Grant ($6,922,904) to the Tahoe Valley Stormwater and Greenbelt Improvement Project

BACKGROUND
A. City Council adopted the Tahoe Valley Area Plan on June 2, 2015, which includes the Tahoe Valley Stormwater and Greenbelt Improvement Project (Tahoe Valley) as a vital environmental and community improvement project.

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

C. On July 2, 2020, Public Works, Engineering Division submitted a Proposition 1 grant application to the State Water Resources Control Board (SWRCB) for implementation grant funding for construction of the Tahoe Valley project.

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

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

F. The City and SWRCB have executed grant agreement GA D2112147 allocating $6,922,904 in Proposition 1 implementation grant funding to the Tahoe Valley project.

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 accept $6,922,904 in State Water Resources Control Board, Proposition 1 implementation grant funding for construction of the Tahoe Valley Stormwater and Greenbelt Improvement Project.

2. Authorizes modification of the Annual Operating and Capital Improvement Budget for Fiscal Year 2021-22 and appropriation of grant funds as follows:

REVENUE
301 40030 Revenue (33241) State Water Resources Control Board (+) 6,922,904

EXPENSE
301-40030 Expense (48030) Tahoe Valley Stormwater & Greenbelt EIP (+) 6,922,904 134
Resolution 2022-XXX September 6, 2022 Page 2 of 2
Adopted by the City of South Lake Tahoe City Council on September 6, 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.
135

CITY OF SOUTH LAKE TAHOE

DEPARTMENT OF PUBLIC WORKS
City of South Lake Tahoe

DEPARTMENT OF PUBLIC WORKS

AGREEMENT
for

TAHOE VALLEY STORMWATER AND GREENBELT IMPROVEMENT
PROJECT, PHASE 1
PUBLIC WORKS CONTRACT NO. 11-30140030-01
INFORMAL BID No. 22-30140030-BN1
THIS AGREEMENT is made and entered into this ______ day of August, 2022, by and between the City of South Lake Tahoe, a political subdivision of the State of California, herein designated “City”, and Herback General Engineering, herein designated as “Contractor.” WITNESSETH, that the City and the Contractor, in consideration of the mutual covenants hereafter set forth, agree as follows:

ARTICLE 1 - THE WORK
Contractor agrees to furnish all labor, tools, equipment, facilities, materials, transportation and services necessary to perform and complete, in a good and workmanlike manner, the

TAHOE VALLEY STORMWATER AND GREENBELT IMPROVEMENT PROJECT, PHASE 1 as required pursuant to the Contract Documents.

ARTICLE 2 - COMMENCEMENT AND COMPLETION
The Work to be performed under this Agreement shall commence at the time as specified in the Notice to Proceed, and the Contractor shall diligently undertake the performance of the obligations as set forth in the Contract Documents to achieve Final Completion of the Work (as defined at Section 9.9 Special Provisions) on or before October 15, 2022 (the “Contract Time”). No grading or excavation or other land disturbance will be allowed between October 15th and May 1st; all Work shall be performed after the issuance of the Notice to Proceed, and Final Completion achieved within the contract time as set forth in these Contract Documents.

The City and the Contractor recognize that time is of the essence of this Agreement and that the City will suffer financial loss if the Work is not completed within the time specified herein, plus any extensions thereof allowed in accordance with the Contract Documents. The City and Contractor also recognize the delays, expense, and difficulties involved in proving the actual loss suffered by the City if the Work is not completed within the Contract Time. Accordingly, instead of requiring any such proof, and pursuant to the Contract Documents, the City and the Contractor agree that as liquidated damages (but not as a penalty), the Contractor shall pay the City the sum of 136
$1,000 for each calendar day beyond October 1, 2022, and continuing until Bidder achieves Milestone #1, Substantial Completion (per Document 00100, Article 1.04.A.1), and $500 for each calendar day beyond October 15, 2022, that portion of the Contract Time within which the Bidder is required to achieve Milestone #2, Final Completion (per Document 00100, Article 1.04.A.3).

In accordance with the Contract Documents, including, without limitation Document 00400.4.2 (“Bid Proposal”), the daily amount that Contractor may charge to the City for all delay costs, direct and indirect (and inclusive of all expenses and damages, including, without limitation, jobsite and home office overhead costs and extended general conditions) applicable to the first sixty (60) calendar days of Compensable Delay, if any, is $400 per day, the amount set forth by Contractor in Document 00400.4.2 (“Bid Proposal”). This sum shall represent the exclusive and sole amount (i.e., payment in full for any and all direct and indirect delay costs) that Contractor, on behalf of itself and subcontractors and suppliers, of every tier, shall receive for any and all Compensable Delay(s) during the first sixty (60) calendar days of actual, Compensable Delay at the Project.

Delay costs that may arise from Compensable Delay, if any, beyond the first sixty (60) calendar days of a Compensable Delay, if allowable, shall thereafter be governed by, and subject to, the applicable provisions of Sections 8 and 9 of the Standard Specifications, as modified by the Special Provisions, and the Contract Documents.

ARTICLE 3 - CONTRACT PRICE
The City agrees to pay, and the Contractor agrees to accept, in current funds for the performance of the Work pursuant to the Contract Documents, the Contract Sum for the completion of the Work in accordance with the Contract Documents as follows:

BASE BID SCHEDULE
BID
ITEM
NO.

BID ITEM DESCRIPTION
UNIT
OF
MEAS.

BID ITEM

QUANTITY

UNIT BID BID ITEM

PRICE TOTAL
1 Mobilization LS $ 898,500.00
2 Temporary Traffic Control LS $ 153,500.00
3 Temporary Staging, Construction Access &
Project Sign LS $ 990.00
4 Construction Surveying and Staking LS $ 52,000.00
5 Temporary Erosion, Water Pollution, Dust
Controls, & BMPs LS $ 168,000.00
6 Temporary Barriers, Fencing, and Vegetation
Protection LS $ 29,300.00
7 Subsurface Facility Locations / Verification LS $ 76,824.00 8 Pothole Subsurface Facility (As Directed) EA 35 $ 520.00 $ 18,200.00 9 Clearing and Grubbing LS $ 165,000.00
10 Remove Fence LF 286 5.50 $ 1,573.00
11 Remove Roadway Markers/Snow Poles EA 20 46.00 $ 920.00 12 Remove AC Surfaces (for project
installations, incl. saw-cutting - does not
include quantity/removals for mill/overlay
work) [FP Item]
SF 38,430
$ 0.55
$ 21,136.50
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13 Remove Storm Drain Pipe (Up to/Incl. 36"
DIA.) LF 1,192 $ 38.00 $ 45,296.00
14 Remove Storm Drain Minor Structures (e.g.
drain inlets, manholes, pipe FES, headwalls,
basin outlets)
EA 27
$ 500.00
$ 13,500.00
15 Adjust Minor Utility Box/Manhole Covers to
FG (e.g. meter box, valve can, pull box,
manholes)
EA 50
$ 995.00
$ 49,750.00
16 Utility Service Lateral Replacement (by
contractor) - Ex. Sanitary Sewer Service
Lateral (STPUD)
EA 16
$ 4,712.00
$ 75,392.00
17 Utility Service Lateral Replacement (by
contractor) - Ex. 3/4" Domestic Water
Service Lateral (STPUD)
EA 20
$ 4,620.00
$ 92,400.00
18 Utility Service Lateral Replacement (by
contractor) - Ex.1" Domestic Water Service
Lateral (STPUD)
EA 5
$ 4,870.00
$ 24,350.00
19 Utility Service Lateral Replacement (by
contractor) - Ex. 2" Domestic Water Service
Lateral (STPUD)
EA 5
$ 5,300.00
$ 26,500.00
20 Utility Service Lateral Replacement
(coordination w/ utility) - Ex. Natural Gas
Service Lateral (Southwest Gas Corp.)
EA 27
$ 166.00
$ 4,482.00
21 Remove, Salvage & Reset Fencing (As
Directed or Authorized) LF 200 $ 40.00 $ 8,000.00
22 Remove, Salvage & Reset Common
Landscape/Site Facilities (Miscellaneous
Project Areas)
LS $ 6,020.00
23 Removal of Unsuitable Subgrade Material
(As Directed or Authorized) CY 100 $ 166.50 $ 16,650.00 24 Rock Fracture and Removal (As Directed or
Authorized) CY 50 $ 582.00 $ 29,100.00
25 Earthwork - South Bonanza Basin LS $ 52,000.00
26 Earthwork - Margaret/D St Basin LS $ 50,200.00
27 Earthwork - North Bonanza Basin LS $ 358,428.00
28 Earthwork - Vegetated Swale (James/Eloise
Site) LF 550 $ 89.00 $ 48,950.00
29 Slurry Cement (structural backfill / shallow
pipe installations) CY 70 $ 54.00 $ 3,780.00
30 12" DIA. HDPE Storm Drain Pipe LF 18 $ 191.00 $ 3,438.00 31 18" DIA. HDPE Storm Drain Pipe LF 784 $ 286.00 $ 224,224.00 32 24" DIA. HDPE Storm Drain Pipe LF 606 $ 296.00 $ 179,376.00 33 30" DIA. HDPE Storm Drain Pipe LF 637 $ 388.00 $ 247,156.00 34 24" DIA. HDPE Storm Drain, Perforated Pipe
Sub-Drain LF 803 $ 384.00 $ 308,352.00
35 30" DIA. HDPE Storm Drain, Perforated Pipe
Sub-Drain LF 1,138 $ 402.00 $ 457,476.00
36 12" DIA. RCP (Class III) Storm Drain LF 139 $ 254.00 $ 35,306.00 37 18" DIA. RCP (Class III) Storm Drain Pipe LF 318 $ 343.00 $ 109,074.00 38 18" DIA. RCP (Class IV) Storm Drain Pipe LF 40 $ 420.00 $ 16,800.00 138
39 24" DIA. RCP (Class III) Storm Drain Pipe LF 0 $ - $ - 40 24" DIA RCP (Class IV) Storm Drain Pipe LF 94 $ 388.00 $ 36,472.00 41 30" DIA. RCP (Class III) Storm Drain Pipe LF 103 $ 427.00 $ 43,981.00 42 30" DIA RCP (Class IV) Storm Drain Pipe LF 549 $ 463.00 $ 254,187.00 43 22" x 13.5" RCPA (Class IV) Storm Drain
Pipe LF 100 $ 426.00 $ 42,600.00
44 28.5" x 18" RCPA (Class IV) Storm Drain
Pipe LF 40 $ 422.00 $ 16,880.00
45 36.25" x 22.5" RCPA (Class IV) Storm Drain
Pipe LF 100 $ 579.00 $ 57,900.00
46 Storm Drain FES & Rip-Rap Dissipater
(match culvert size/material type) EA 16 $ 4,550.00 $ 72,800.00 47 48" DIA. Storm Drain Manhole EA 8 $ 10,132.00 $ 81,056.00 48 60" DIA. Storm Drain Manhole EA 16 $ 12,500.00 $ 200,000.00 49 60" DIA. Storm Drain Manhole w/ 36" Grate
Inlet Top EA 2 $ 15,509.00 $ 31,018.00
50 72" DIA. Storm Drain Manhole EA 1 $ 16,700.00 $ 16,700.00 51 72" DIA. Storm Drain Manhole w/ Diverter EA 1 $ 12,300.00 $ 12,300.00 52 Drainage Inlet, Type 1 - Sediment Trap (36"
DIA. CMP, 10 Gauge Min.) EA 17 $ 4,900.00 $ 83,300.00
53 Drainage Inlet, Type 1 - Sediment Trap (48"
DIA. CMP, 8 Gauge Min.) EA 1 $ 6,300.00 $ 6,300.00
54 Drainage Inlet, Type 2 - Sediment Trap (36"
DIA. CMP, 10 Gauge Min.) EA 2 $ 5,900.00 $ 11,800.00
55 Sediment Trap w/ Hinged Cover Top (36"
DIA. CMP, 10 Gauge Min.) EA 1 $ 5,300.00 $ 5,300.00
56 Sediment Trap w/ Hinged Cover Top (60"
DIA. CMP, 8 Gauge Min.) EA 1 $ 8,400.00 $ 8,400.00
57 Drainage Inlet, Type 3 EA 5 $ 12,500.00 $ 62,500.00
58 Drainage Inlet, Type 4 EA 2 $ 12,620.00 $ 25,240.00
59 Basin Outlet Structure EA 3 $ 24,000.00 $ 72,000.00
60 Rock Lined Swale LF 1,583 $ 23.00 $ 36,409.00
61 Rock Weir, Gravel Check Dams, Extended
Rock Apron Culvert Inlet/Outlet Controls,
Rock Lined Swale Transitions, & Drainage
Erosion Protections
CY 290
$ 150.00
$ 43,500.00
62 Concrete Curb & Gutter (Vertical Battered) LF 316 $ 65.00 $ 20,540.00 63 Concrete Curb & Gutter (Rolled) LF 20 $ 70.00 $ 1,400.00 64 Concrete Edging (For Gravel Paver System) LF 1,430 $ 54.00 $ 77,220.00 65 Concrete Curb Transition (Type 1, Curb End) EA 12 $ 1,200.00 $ 14,400.00 66 Road Shoulder Stabilization (Gravel
Paver/Permeable SubBase) SF 5,720 $ 14.00 $ 80,080.00
67 Replace Asphalt Concrete Surfacing (Mill &
Overlay, 4-INCH, 1 LIFT - Type A, PG 64-
28M, 3/4" aggregate)
TON 1,440
$ 255.00
$ 367,200.00
68 Replace Asphalt Concrete Surfacing (Mill &
Overlay, 3-INCH, 1 LIFT - Type A, PG 64-
28M, 3/4" aggregate)
TON 1,370
$ 260.00
$ 356,200.00
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69 HMA Paving - Misc. Roadway / Driveway
Patch Repairs (4-INCH, 1 LIFT - Type A, PG
64-28, 1/2" Aggregate) - [As Directed or
Authorized]
TON 160
$ 265.00
$ 42,400.00
70 HMA Paving - Roadside AC Swale, and F St.

Drainage "V" Ditch (3-INCH, 1 LIFT - Type A,
PG 64-28, 1/2" aggregate)
SF 8,765
$ 8.00
$ 70,120.00
71 Object Marker, Type A EA 40 $ 365.00 $ 14,600.00
72 Traffic Striping / Markings LS $ 7,500.00
73 Revegetation Treatment, Type 1 (Organic
Matter and Topsoil Salvage and
Replacement)
LS
$ 29,102.33
74 Revegetation Treatment, Type 2 (Sod
Salvage and Replacement) SY 1,250 $ 14.00 $ 17,500.00
75 Revegetation Treatment, Type 3 (Woody
Vegetation Salvage and Processing) LS $ 11,640.93
76 Revegetation Treatment, Type 4 (Native
Willow and Rose Salvage and Replacement) EA 10 $ 756.66 $ 7,566.60 77 Revegetation Treatment, Type 5 (Seeding
Mixes 1, 2, or 3 respectively identified as
TT5-1, TT5-2, TT5-3)
SY 12,360
$ 1.75
$ 21,630.00
78 Revegetation Treatment, Type 6 (Hydraulic
Mulch Application - Recycled Paper Mulch
with Tackifiers)
SY 11,110
$ 0.62
$ 6,888.20
79 Revegetation Treatment, Type 7 (Mulch
Application - Processed Woody Vegetation
[TT3], and/or Wood Chips / Tub Grindings)
SY 120
$ 23.09
$ 2,770.80
80 Revegetation Treatment, Type 8 (Coir
40/400 Netting Installation) SY 7,890 $ 7.40 $ 58,386.00 81 Revegetation Maintenance (2-Years) LS $ 35,000.00
BASE BID AMOUNT: $6,534,731.36
Add Bid Alternate “A” Bid Schedule:

BID
ITEM
NO.

BID ITEM DESCRIPTION
UNIT
OF
MEAS.

BID ITEM

QUANTITY UNIT BID PRICE BID ITEM
A1 Tree Removal (10” – 18” DBH Tree) EA 152 $500.00 $76,000.00 A2 Tree Removal (19” – 24” DBH Tree) EA 9 $1,000.00 $9,000.00 A3 Tree Removal (25” – 35” DBH Tree) EA 3 $1,500.00 $45,000.00 A4 Tree Removal ( >36” DBH Tree) EA 1 $3,360.00 $3,360.00 A5 Buck & Pole Fencing LF 1,523 $40.00 $60,920.00
ADD BID ALTERNATE “A” AMOUNT: $153,780.00
TOTAL CONTRACT SUM: $6,688,511.36
For the Total Contract Sum of SIX-MILLION SIX-HUNDRED EIGHTY-EIGHT THOUSAND FIVE-HUNDRED ELEVEN dollars and THIRTY-SIX cents.
140
The above Total Contract Sum includes all allowances, if any, provided for in the Contract Documents.

Compensation for Unit Price Items shall be based upon the unit prices stated in the above schedule multiplied by the actual quantities or units of work and materials performed or furnished. Unit prices paid by the City may change depending on actual quantities or units of work completed in accordance with the Contract Documents.

ARTICLE 4 - PREVAILING WAGES
Pursuant to the provisions of California Labor Code, Sections 1770 to 1780, inclusive thereof, the Contractor, and any subcontractor, of any tier, shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations.

In compliance with Senate Bill 854 and the California Labor Code, this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Contractors must submit their certified payroll records directly to the Division of Labor Standards Enforcement Compliance Monitoring Unit through the electronic certified payroll reporting (eCPR) system, as well as to the City.

Pursuant to the provisions of California Labor Code Section 1773.2, the Contractor is hereby advised that copies of the prevailing rate of per diem wages and a general prevailing rate for holidays, Saturdays and Sundays and overtime work in the locality in which the Work is to be performed for each craft, classification, or type of worker required to execute the Contract, are on file in the City's office. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this public works contract as required by Labor Code Section 1774. These rate determinations are found on the State of California Department of Industrial Relations’ website at: http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm.

ARTICLE 5 - CONTRACT DOCUMENTS
The Agreement includes and incorporates by reference the Contract Documents for the Project, which consists of the following documents:
(a) Notice to Bidders (Document 00100);
(b) Instructions to Bidders (Document 00200);
(c) Bid Proposal (Document 00400);
(d) Bidder's Bond (Document 00410);
(e) Designation of Subcontractors (Document 00420);
(f) Self-Performance Declaration (Document 00425);
(g) Debarment and Suspension Certifications (Document 00430); (h) Non-Collusion Declaration (Document 00432);
(i) Worker's Compensation Certification (Document 00435); (j) Business and Professions Code Sections 7028.15 and 7031 Statement (Document 00440);
141
(k) Bidder's Statement of Financial Responsibility, Technical Ability and Experience (Document 00450);
(l) Blank
(q) Agreement (Document 00500);
(r) Payment Bond Form (Document 00610);
(s) Performance Bond Form (Document 00620);
(t) Sample Escrow Agreement for Security Deposits In Lieu of Retention (Document 00630);
(u) Warranty/Guaranty Form (Document 00635);
(v) Acknowledgment of City Code (Document 00640);
(w) Bid Document Certification (Document 00650);
(x) The Standard Specifications of the State of California, Department of Transportation, dated 2018; the Standard Plans of the State of California, Department of Transportation, dated 2018, and the South Lake Tahoe Public Improvement and Engineering Standards;
(y) Special Provisions (which incorporate by reference, and, as specified, modify the Standard Specifications of the State of California, Department of Transportation, dated 2018; the Standard Plans of the State of California, Department of Transportation, dated 2018, and the South Lake Tahoe Public Improvement and Engineering Standards) (Document 00700);
(z) Supplemental Conditions (Document 00800), if any;
(aa) General Requirements, if any;
(bb) Construction Progress Schedule;
(cc) Technical Specifications;
(dd) Contract Drawings;
(ee) Addenda (numbers 1 to 3), inclusive; and
(ff) Permits from other agencies as may be required by law. (gg) All Documents referenced as constituting the “Bid Documents” pursuant to Section

1.3 (“Bid Documents”) of the Special Provisions.

Exhibits to this Agreement are enumerated as follows:
• Exhibit A: Accepted Contractor’s Bid,
• Exhibit B: Escrow Bid Document Certification; and
• Exhibit C: Insurance Certificates and Endorsements.

ARTICLE 6 - WORKERS’ COMPENSATION
Contractor shall take out and maintain during the life of the Agreement, adequate and sufficient workers’ compensation insurance for all Contractor’s employees employed at the site of improvements, and, if any Work is sublet, Contractor shall require each subcontractor similarly to 142
provide workers’ compensation insurance for all of the latter’s employees, unless such employees are covered by the protection afforded by Contractor. If any class of employees engaged in Work under this contract at the site of the Project is not protected under workers’ compensation law, Contractor shall provide, and shall cause each subcontractor to provide, adequate insurance for the protection of employees not otherwise protected. Contractor shall indemnify the City and the California Department of Transportation for any damage resulting to it from failure of either Contractor or any subcontractor to take out or maintain such insurance.

By its signature upon this Agreement, Contractor certifies that it has carefully reviewed and is aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for worker's compensation, or to undertake self-insurance in accordance with the provisions of the labor Code. Contractor, as a condition precedent to the commencement of its Work pursuant to the Agreement, shall comply with such provisions.

ARTICLE 7 - INDEMNITY AND INSURANCE
To the fullest extent permitted by law, including, without limitation, Civil Code section 2782, et seq., and in strict accordance with the Contract Documents, Contractor shall defend, indemnify, and hold harmless the City, its officials, officers, City Council members, employees, agent, the California Department of Transportation, the Project Manager, the Architect/Engineer, the Project consultants, and their respective principals, officers and employees, and each of them, of and from any and all claims, demands, suits, causes of action, damages, costs, expenses, attorneys' fees, losses, or liability, in law or in equity, of every kind and nature whatsoever related to, arising out of, or in connection with, Contractor's operations to be performed under this Agreement, and as otherwise set forth in Contract Documents, including, without limitation, Section 7-1.05A of the Standard Specifications, as modified by Section 7.11 of the Special Provisions. The obligations of defense and indemnity set forth in this Article, and in the Contract Documents, shall not be limited by any insurance requirements or obligations pursuant to the Contract Documents, and shall not extend to the sole negligence or willful misconduct of the City, or the active negligence of the City.

The obligations arising from this Article shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity (including all duties to defend), which would otherwise exist as to a party, or person described elsewhere in the Contract Documents.

Contractor shall maintain the insurance coverage described in Section 7-1.06 of the Standard Specifications, as modified by Section 7.12 of the Special Provisions, throughout the performance of the Agreement, including any maintenance, warranty and/or guaranty periods. This Agreement shall not be operative until evidence of such insurance has been provided to, and approved by, the City as to form, amount, and carrier. Contractor shall not allow any subcontractor to commence Work at the Project until subcontractor provides evidence to Contractor and City that subcontractor has obtained insurance acceptable to the City.

ARTICLE 8 - NOTICES
Whenever any provision of the Contract Documents requires the giving of written notice, it shall be deemed to have been validly given if delivered in person to the individual for whom it is intended, or if delivered at or sent by registered or certified mail, postage prepaid, to the address listed below:
143
Notices required to be given to Contractor:

Herback General Engineering
Greg Herback
2531 Nowlin Road
Minden, NV 89423
Notices required to be given to City:

Public Works Director/City Engineer
City of South Lake Tahoe
1740 D Street
South Lake Tahoe, CA 96150-6251
Notices required to be given to any surety(ies):

ARTICLE 9 - MISCELLANEOUS

9.1 Terms. Terms used in this Agreement will have the meanings indicated in the Contract Documents.

9.2 Assignment. No assignment by a party hereto of any rights under or interests in the Agreement will be binding on another party hereto without the written consent of the party sought to be bound; and, specifically but without limitation, moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents.

9.3 Successors and Assigns. City and Contractor each binds itself, its partners, successors, assign, and legal representatives to the other party hereto, its partners, successors, assigns, and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents.

9.4 Severability. Any provision or part of the Contract Documents held to be void or unenforceable under any law or regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision.

9.5 South Lake Tahoe City Code. Contractor acknowledges that all pertinent provisions within the South Lake Tahoe City Code are incorporated by reference as though set forth in full herein, and, further, the failure of Contractor or any subcontractor, of any tier, to comply with any of its/their obligations under the Contract Documents, or the requirements of the South Lake Tahoe City Code, or any other applicable law, code, statute, or regulation, shall be deemed a material breach of the Agreement.
144

9.6 Third Party Beneficiary. Contractor expressly acknowledges the City's status as a third party beneficiary solely with respect to the performance to be rendered under each subcontract, of any tier, upon the Project, and, as a result, Contractor acknowledges that City possesses, inter alia, the rights enumerated within the South Lake Tahoe City Code as to the enforcement of obligations under subcontracts of any tier.

9.7 Regulatory Requirements. Contractor acknowledges that the Project is subject to requirements and regulations issued on behalf of various governmental and/or regulatory bodies, including, without limitation, the Lahontan Regional Water Quality Control Board and the Tahoe Regional Planning Agency, among others. Contractor agrees to fully and promptly comply with any and all requirements and regulations issued on behalf of such entities.

9.8 Governing Law. This Agreement and the Contract Documents shall be deemed to have been entered into in the County of El Dorado, State of California, and governed by California law.

By entering into this Agreement, the Contractor consents and submits to the jurisdiction of Courts of the State of California, County of El Dorado, over any action of law, suit in equity, and/or other proceeding that may arise out of the Contract Documents.

IN WITNESS HEREOF, the said City of South Lake Tahoe, State of California, has caused this Agreement to be executed by its Mayor in its behalf, and the said Contractor has signed this Agreement the day and year first above written.

CITY OF SOUTH LAKE TAHOE Contractor: Herback General Engineering By By Greg Herback
Mayor, City of South Lake Tahoe,
State of California Title

Business License No.

ATTEST: APPROVED AS TO FORM:

By By
City Clerk City Attorney
City of South Lake Tahoe City of South Lake Tahoe
145
Resolution 2021-017 March 16, 2021 Page 1 of 1
Resolution 2021-017
Adopted by the City of South Lake Tahoe
City Council
March 16, 2021
Authorizing a Funding Agreement with the State Water Resources Control Board and authorizing and designating a representative for the Tahoe Valley Greenbelt and Stormwater Improvement Project

BACKGROUND
A. The City of South Lake Tahoe has submitted an application to the State Water Resources Control Board for funding for the Tahoe Valley Greenbelt and Stormwater Improvement Project for construction of improvements (Project).

B. Prior to the State Water Resources Control Board's executing a funding agreement, the City of South Lake Tahoe is required to adopt a resolution authorizing an agent, or representative, to sign the funding agreement, amendments, and requests for disbursement on behalf of the City of South Lake Tahoe, and to carry out other necessary Project-related activities.

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

1. Authorizes staff to carry out the Project, enter into a funding agreement with the State Water Resources Control Board, and accept and expend State funds for the Project.

2. Authorizes and designates the Director of Public Works, or designee to sign, for and on behalf of the City of South Lake Tahoe, the funding agreement for the Project and any amendments thereto.

3. Authorizes and designates the Director of Public Works, or designee to represent the City of South Lake Tahoe in carrying out the City of South Lake Tahoe’s responsibilities under the funding agreement, including certifying invoices and disbursement requests for Project costs on behalf of the City of South Lake Tahoe and in compliance with applicable state and federal laws.

4. Ratifies, approves, and confirms, in all respects, any and all actions, whether previously or subsequently taken by the City of South Lake Tahoe, which are consistent with the intent and purposes of the foregoing resolution.

Adopted by the City of South Lake Tahoe City Council on March 16, 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.

DocuSign Envelope ID: 838A793C-B546-4D8A-92CD-4F76DD3C708E 3/17/2021
146

STORM WATER
GRANT
AGREEMENT NO. D2112147
by and between
CITY OF SOUTH LAKE TAHOE (“Recipient”)
AND
CALIFORNIA STATE WATER RESOURCES CONTROL BOARD (“State Water Board”) for the purpose of the

TAHOE VALLEY STORMWATER AND GREENBELT IMPROVEMENT PROJECT (“Project”)
Section 79747 of the Water Code, and Resolution No. 2019-0059.

PROJECT FUNDING AMOUNT: $6,922,904
MATCH CONTRIBUTION: $1,869,035
ESTIMATED REASONABLE PROJECT COST: $9,864,194
ELIGIBLE WORK START DATE: OCTOBER 1, 2021
WORK COMPLETION DATE: FEBRUARY 29, 2024
FINAL REIMBURSEMENT REQUEST DATE: MARCH 31, 2024
RECORDS RETENTION END DATE: FEBRUARY 29, 2060
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1. The State Water Board and the Recipient mutually promise, covenant, and agree to the terms, provisions, and conditions of this Agreement, including the following Exhibits, which are attached hereto or are incorporated by reference:
 EXHIBIT A – SCOPE OF WORK AND SCHEDULE
 EXHIBIT B – FUNDING TERMS
 EXHIBIT C – GENERAL TERMS AND CONDITIONS 2019-NOV
 EXHIBIT D – SPECIAL CONDITIONS

2. Party Contacts during the term of this Agreement are:

State Water Board City of South Lake Tahoe
Section: Division of Financial
Assistance

Name: Spencer Joplin, Project
Manager
Name: Anush Nejad, Director of
Public Works
Address: 1001 I Street, 17th Floor Address: 1901 Lisa Maloff Road, Suite 210
City, State,
Zip:

Sacramento, CA 95814 City, State,
Zip:

South Lake Tahoe, CA
96150
Phone: (916) 341-5636 Phone: (530) 542-6031
Email: Spencer.Joplin@waterboards
.ca.gov
Email: [email protected]
Each party may change its contact upon written notice to the other party. While Party Contacts are contacts for day-to-day communications regarding Project work, the Recipient must provide official communications and notices to the Division’s Deputy Director.

3. Conditions precedent to this Agreement are set forth as follows:
(a) The Recipient must deliver to the Division a resolution authorizing this Agreement and identifying its authorized representative by title.

4. The Recipient represents, warrants, and commits to the following as of the Eligible Work Start Date and continuing thereafter for the term of this Agreement, which shall be at least until the Records Retention End Date:
(a) The Recipient agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents. (b) The execution and delivery of this Agreement, including all incorporated documents, has been duly authorized by the Recipient. Upon execution by both parties, this Agreement constitutes a valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as such enforcement may be limited by law.
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(c) None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of Recipient. The Recipient is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement.

The Recipient is able to pay its debts as they become due. The Recipient maintains sufficient insurance coverage considering the scope of this Agreement, including, for example but not necessarily limited to, general liability, automobile liability, workers compensation and employer liability, and professional liability.
(d) The Recipient is in compliance with all State Water Board funding agreements to which it is a party.

5. This Agreement, and any amendments hereto, may be executed and delivered in any number of counterparts, each of which when delivered shall be deemed to be an original, but such counterparts shall together constitute one document.

The parties may sign this Agreement, and any amendments hereto, either by an electronic signature using a method approved by the State Water Board or by a physical, handwritten signature. The parties mutually agree that an electronic signature using a method approved by the State Water Board is the same as a physical, handwritten signature for the purposes of validity, enforceability, and admissibility.
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IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

CITY OF SOUTH LAKE TAHOE: STATE WATER RESOURCES
CONTROL BOARD:

By: By:

Name: Anush Nejad Name: Joe Karkoski
Title: Director of Public Works Title: Deputy Director
Division of Financial Assistance

Date: Date:
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Exhibit A
EXHIBIT A – SCOPE OF WORK AND SCHEDULE
A.1 PROJECT PURPOSE AND DESCRIPTION.

The Project is for the benefit of the Recipient and has a Useful Life of at least twenty (20) years. The funding under this Agreement shall be used for the purpose of constructing storm water management improvements and a greenbelt to provide riparian restoration, floodplain enhancement, improved drainage capacity, and reduce pollutant load discharges to Lake Tahoe and the Upper Truckee River, both 303(d) listed water bodies.

A.2 SCOPE OF WORK.

The Recipient agrees to do the following:

1. Project Management

1.1 Provide all technical and administrative services as needed for Project completion; monitor, supervise, and review all work performed; and coordinate budgeting and scheduling to ensure the Project is completed within budget, on schedule, and in accordance with approved procedures, applicable laws, and regulations.

1.2 Notify the Project Manager at least fifteen (15) working days in advance of upcoming meetings, workshops, and trainings.

1.3 Develop and update appropriately a detailed Project schedule, including key Project milestones, and submit to the Project Manager.

1.4 Conduct periodic and final site visits with the Project Manager.

1.5 Conduct pre-, during, and post-construction photo monitoring at the Project site and submit to the Project Manager.

2. General Compliance Requirements/Project Effectiveness and Performance

2.1 Submit Global Positioning System (GPS) information for project site(s) and monitoring location(s) for this Project to the Project Manager.

Submittal requirements for GPS data are available at:
http://www.waterboards.ca.gov/water_issues/programs/grants_loans/ grant_info/docs/gps.pdf.

2.2 Prepare and submit an updated Project Assessment and Evaluation Plan (PAEP) which describes the manner in which the Project performance will be assessed, evaluated, and reported to the Project Manager for approval. The PAEP shall detail the methods of measuring and reporting Project benefits. Implementation of any 151
City of South Lake Tahoe
Agreement No.: D2112147

Exhibit A
monitoring and performance assessment and/or evaluation actions shall not occur prior to PAEP approval by the Project Manager.

2.3 Measure, evaluate, and document Project performance based on the effectiveness criteria in the approved PAEP. Include results of the performance assessment, along with any supporting data and analysis, in the associated quarterly progress report and the Final Project Report.

3. Environmental Compliance and Permitting
Project Funds will not be disbursed until California Environmental Quality Act (CEQA) documents, permitting, access negotiations and other required approvals are complete.

3.1 Complete documentation required under the CEQA for the proposed implementation project. Take all required steps to prepare, circulate, and certify the required CEQA document(s).

3.1.1 Submit the draft CEQA document to the Project Manager for comment, if applicable.

3.1.2 Submit the final CEQA document to the Project Manager.

3.1.3 Obtain written environmental clearance from the Project Manager confirming the State Water Board has made its own environmental findings and concurred that
implementation/construction may proceed. The State Water Board may deem implementation/ construction costs incurred prior to obtaining such confirmation ineligible for
reimbursement.

3.2 Obtain all public agency approvals, entitlements, or permits required for Project implementation before field work begins. If the Project is carried out on lands not owned by the Recipient, the Recipient must obtain adequate rights of way for the Useful Life of the Project.

Submit a list and signed copies of such approvals, entitlements or permits to the Project Manager.

4. Planning, Design, and Engineering

4.1 Prepare a Design Report that includes a geotechnical analysis and a hydrologic and hydraulic analysis to support the design plans and specifications, and submit to the Project Manager for comment.

4.2 Prepare the one hundred percent (100%) design plans and final secured match sources and amounts that will satisfy Match Contribution, and submit to the Project Manager for approval. The 152
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Exhibit A
Project shall be designed to capture, treat, and/or infiltrate a minimum of twenty-four (24) acre-feet per year of storm water runoff using the following approaches:

4.2.1 Phase 1

4.2.1.1 Install a minimum of twenty-five (25) drainage inlets with a minimum of eighteen (18) sediment traps.

4.2.1.2 Install a minimum of five thousand (5,000) linear feet of storm drain.

4.2.1.3 Install a minimum of six and a half (6.5) acre feet of constructed wetland/infiltration basins with a
minimum of one hundred one thousand (101,000)
square feet of vegetation.

4.2.1.4 Install a minimum of five hundred (500) linear feet of vegetated swale.

4.2.1.5 Install a minimum of one thousand five hundred
(1,500) linear feet of rock-lined low flow swale.

4.2.2 Phase 2

4.2.2.1 Install a minimum of four (4) drainage inlets with a minimum of three (3) sediment traps.

4.2.2.2 Install a minimum of six hundred thirty (630) linear feet of storm drain.

4.2.2.3 Install a minimum of one thousand one hundred
(1,100) linear feet of rock-lined low flow swale.

4.2.2.4 Install a minimum fifteen (15) acre feet of
constructed wetland/infiltration basins with a
minimum of one hundred thirty thousand (130,000)
square feet of vegetation.

4.2.2.5 Install a minimum of one thousand eight hundred (1,800) square feet of rockery wall face.

4.2.2.6 Install a minimum of ten thousand (10,000) square feet of permeable pavers and boardwalk.

4.3 Complete the bid documents in accordance with the approved design plans, after receiving all required approvals, and advertise the Project for bid. Submit the advertised bid documents and bid summary to the Project Manager.
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Exhibit A

5. Construction and Implementation

5.1 Award the construction contract(s) and submit the Notice(s) to Proceed and awarded contract(s) for the Project to the Project Manager.

5.2 Construct the Project in accordance with the approved design plans and specifications in Item 4.2 after obtaining environmental clearance in Item 3.1.3 and the necessary approvals, entitlements, or permits in Item 3.2.

5.3 Submit any proposed changes that arise during construction that may affect the Project’s benefits listed in Item 4.2, schedule, or costs to the Project Manager for approval prior to proceeding with the changes.

5.4 Submit as-built drawings and a summary of changes from the approved design plans and specifications that occurred during construction to the Project Manager.

5.5 Prepare an Operations and Maintenance Plan that addresses operation and maintenance of the Project for its Useful Life and submit to the Project Manager for approval.

6. Stakeholder Outreach

6.1 Install interpretive educational elements describing the benefits of the Project. Submit a draft design of interpretive elements to the Project Manager for comment prior to installation.

6.1.1 Submit photo documentation of the installed elements to the Project Manager.

A.3 PROGRESS REPORTS.

The Recipient must submit quarterly progress reports, using a format provided by the Project Manager, within forty-five (45) days following the end of the calendar quarter (March, June, September, and December) to the Project Manager.

Progress reports must provide a brief description of activities that have occurred, milestones achieved, monitoring results (if applicable), and any problems encountered in the performance of the work under this Agreement during the applicable reporting period. Reporting is required even if no Project-related activities occurred during the reporting period. The Recipient must document all activities and expenditures in progress reports, including work performed by contractors.
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Exhibit A
A.4 AS-NEEDED REPORTS.

The Recipient must provide expeditiously any reports, data, and information reasonably required by the Division including, but not limited to, material necessary or appropriate for evaluation of the funding program or to fulfill any reporting requirements of the state or federal government.

A.5 FINAL REPORTS.
(a) At the conclusion of the Project, the Recipient must submit the following to the Project Manager:
(1) Draft Final Project Report. Prepare and submit to the Project Manager for comment a draft Final Project Report in a format provided by the Project Manager.
(2) Final Project Report. Prepare a Final Project Report that addresses, to the extent feasible, comments made by the Project Manager on the draft Final Project Report. Submit one (1) reproducible master copy and an electronic copy. Upload an electronic copy in pdf format to the FAAST system.
(3) Final Project Summary. Prepare a brief summary of the information contained in the Final Project Report using a format provided by the Project Manager and include accomplishments, recommendations, and lessons learned, as appropriate. Upload an electronic copy of the Final Project Summary in pdf format to the FAAST system. (4) Final Project Inspection and Certification. Upon completion of the Project, the Recipient shall provide for a final inspection and shall certify that the Project has been completed in accordance with this Agreement, any final plans and specifications submitted to the State Water Board, and any amendments or modifications thereto. If the Project involves the planning, investigation, evaluation, design, or other work requiring interpretation and proper application of engineering, or other professionals, the final inspection and certification shall be conducted by a California Registered Civil Engineer or other appropriate California registered professional. The results of the Final Project Inspection and Certification shall be submitted to the Project Manager.
(b) If the Recipient fails to submit a timely Final Project Report, the State Water Board may stop processing pending or future applications for new financial assistance, withhold reimbursements under this Agreement or other agreements, and begin administrative proceedings. 155
City of South Lake Tahoe
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Exhibit A
A.6 SIGNAGE.

The Recipient must place a professionally prepared sign at least four (4) feet tall by eight (8) feet wide made of ¾-inch thick exterior grade plywood or other approved material in a prominent location on the Project site and must maintain the sign in good condition for the duration of Project implementation. The sign may include another agency’s required information and must include, prominently displayed, the following disclosure statement and color logos (available from the Division):

“Funding for this project has been provided in full or in part under the Proposition 1 – the Water Quality, Supply, and Infrastructure Improvement Act of 2014 through an agreement with the State Water Resources Control Board.” A.7 SCHEDULE.

Failure to provide items by the due dates indicated in the table below may constitute a material violation of this Agreement. The Project Manager may adjust the dates in the “Estimated Due Date” column of this table, but “Critical Due Date” adjustments will require an amendment to this Agreement. The Recipient must complete and submit all work in time to be approved by the Division prior to the Work Completion Date. As applicable for specific submittals, the Recipient must plan adequate time to solicit, receive, and address comments prior to submitting the final submittal. The Recipient must submit the final Reimbursement Request prior to the Final Reimbursement Request Date set forth on the Cover Page.

ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE

ESTIMATED

DUE DATE
EXHIBIT A.2 – SCOPE OF WORK

1. Project Management

1.2 Notification of Upcoming Meetings,
Workshops, and Trainings
As Needed

1.3 Detailed Project Schedule 60 Days After
Execution

1.4 Site Visits As Needed

1.5 Photo Documentation Ongoing

2. General Compliance Requirements/Project Effectiveness and Performance
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Exhibit A

ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE

ESTIMATED

DUE DATE
EXHIBIT A.2 – SCOPE OF WORK

2.1 GPS Information Complete

2.2 Project Assessment and Evaluation
(PAEP)
Complete

3. Environmental Compliance and Permitting

3.1.1 Draft CEQA Complete

3.1.2 Final CEQA Complete

3.2 List and Signed Approvals,
Entitlements and Permits
September 30,
2022

4. Planning, Design, and Engineering

4.1 Design Report Complete

4.2 100% Plans and Specifications Complete

4.3 Advertised Bid Documents and Bid
Summary
Phase 1:

August 2022
Phase 2:

April 2023

5. Construction and Implementation

5.1 Notice(s) to Proceed Phase 1:

September 30,
2022
Phase 2:

May 31, 2023

5.3 Proposed Changes During
Construction
As Needed

5.4 As-Built Drawings and Summary of
Changes
October 31, 2023

5.5 Operations and Maintenance Plan November
2023

6. Stakeholder Outreach

6.1 Draft Interpretive Elements October 2023

6.1.1 Photo Documentation of the Installed
Elements
October 2023
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Exhibit A

ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE

ESTIMATED

DUE DATE

REPORTS
A.3 Progress Reports Quarterly
A.4 As Needed Reports As Needed
A.5 Final Reports
A.5(a)(1) Draft Final Project Report December 31,
2023
A.5(a)(2) Final Project Report January 31, 2024
A.5(a)(3) Final Project Summary Before Work
Completion Date
A.5(a)(4) Final Project Inspection and
Certification
Before Work
Completion Date
EXHIBIT B – FUNDING TERMS
B.6(e) Reimbursement Requests Quarterly
B.6(i) Final Reimbursement Request March 31, 2024
EXHIBIT D – SPECIAL CONDITIONS
D.1 Executed Legal Opinion Before
Disbursement of
Project Funds
The Division may require corrective work to be performed prior to Project Completion.

Any work occurring after the Work Completion Date will not be reimbursed under this Agreement.
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Exhibit B
EXHIBIT B – FUNDING TERMS
B.1 ESTIMATED REASONABLE COST AND PROJECT FUNDS.

The estimated reasonable cost of the total Project is set forth on the Cover Page of this Agreement, and is greater than or equal to the funding anticipated to be provided by the State Water Board under this Agreement. Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds not to exceed the amount of the Project Funding Amount set forth on the Cover Page of this Agreement.

B.2 RECIPIENT CONTRIBUTIONS.

The Recipient must pay any and all costs connected with the Project including, without limitation, any and all Project Costs. If the Project Funds are not sufficient to pay the Project Costs in full, the Recipient must nonetheless complete the Project and pay that portion of the Project Costs in excess of available Project Funds, and shall not be entitled to any reimbursement therefor from the State Water Board.

The Recipient agrees to provide a Match Contribution in the amount of the Match Contribution set forth on the Cover Page of this Agreement.

This Match Contribution is based on the budget, funding sources, and amounts submitted by the Recipient in its application and during the negotiation of this Agreement. Any Match Contribution changes or adjustments requested by the Recipient must be approved, in advance and in writing, by the Project Manager and may require an amendment to this Agreement.

Only expenses that would be considered eligible under the Guidelines will be counted towards the Recipient’s Match Contribution.

Any costs incurred prior to the adoption of Proposition 1 on November 4, 2014, will not count towards the Recipient’s Match Contribution.

If, at Work Completion, the Recipient has provided a Match Contribution in an amount that is less than the Match Contribution set forth on the Cover Page of this Agreement, the State Water Board may proportionately reduce the Project Funds amount and/or Recipient’s Match Contributions amount, upon approval of the Deputy Director of the Division, provided the reduced amount(s) satisfy statutory requirements and Guidelines.

B.3 VERIFIABLE DATA.

Upon request by the Division, the Recipient must submit verifiable data to support deliverables specified in the Scope of Work. The Recipient’s failure to comply with this requirement may be construed as a material breach of this Agreement. 159
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