South Lake Tahoe City Council
December 13, 2022

1 City of South Lake Tahoe
City Council
Meeting Agenda
Tuesday, December 13, 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 was established to provide essential,
outstanding and cost-effective services that
enhance environmental sustainability, economic
vitality and the quality of life for our residents,
businesses and guests.

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/87129127717 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: 871 2912 7717 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
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)
Regular - New Business

1. Certification of Election Results
Requested Action / Suggested Motions: Pass a Resolution certifying the results of the November 8, 2022 Consolidated General Election.

Responsible Staff Member: Susan Blankenship, City Clerk Item 1 - Executive Summary.pdf
01-Staff Report.docx
02 - Resolution - Certification of Election Results.docx 03-Certification of Election (Exh. A to Resolution).pdf 04-Ordinance 2022-1164 Amending Chapter 3.35 Cannabis Tax.pdf City Council Recognition

2. City Council Recognition
Requested Action / Suggested Motions: The City will recognize outgoing City Councilmember Devin Middlebrook for his service to the City of South Lake Tahoe.

Responsible Staff Member: Various
Inaugural Ceremony

3. Inaugural Ceremony
Requested Action / Suggested Motions: The Mayor Pro Tem will administer the Oath of Office to the 2 3
newly elected City Clerk.

The City Clerk will administer the Oath of Office to newly elected City Councilmembers.

Responsible Staff Member: Various
Reorganization of the City Council

4. 2023 Mayor and Mayor Pro Tem Selection
Requested Action / Suggested Motions: Pass a Motion selecting a Mayor and Mayor Pro Tem for the year 2023.

Responsible Staff Member: Susan Blankenship, City Clerk Item 4 - Executive Summary.pdf
01-Staff Report - Mayor and Mayor Pro Tem Selection.docx 10-Minute Recess
Roll Call
City Employee Recognition

5. City Employee Recognitions
Requested Action / Suggested Motions: Two employees will be recognized for reaching 20 Years-Service and one for reaching 5 Years-Service. Four new employees will be introduced to City Council.

Responsible Staff Member: Various
Item 5 - Executive Summary.pdf
01-Staff Report 12 13 2022.pdf
City Commission Reports and Student Advisory Reports
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.

6. City Council Meeting Minutes
Requested Action / Suggested Motions: Pass a Motion approving the November 1, 2022, City Council and Joint Powers Parking Financing Authority meeting minutes; and, the November 15, 2022, Regular City Council meeting minutes.

Responsible Staff Member: Susan Blankenship, City Clerk Item 6 - Executive Summary.pdf
11 01 2022 City Council and STJPPFA Minutes.pdf
11 15 2022 CC Minutes.pdf

7. Annual Reports - Tahoe Regional Planning Agency Advisory Planning Commission, and El Dorado County Community Action Council
Requested Action / Suggested Motions: Receive reports presented by Susan Chandler and Brian 3 4
Conway.

Responsible Staff Member: Susan Blankenship, City Clerk Item 7 - Executive Summary.pdf
01-EDC Community Action Council Report.pdf
02-TRPA APC Report_Redacted.pdf

8. Excusing City Attorney from City Council Meeting
Requested Action / Suggested Motions: Pass a Motion excusing the City Attorney from the City Council meeting on December 13, 2022
Responsible Staff Member: Heather Stroud, City Attorney Item 8 - Executive Summary.pdf
01-Staff Report.docx

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

Responsible Staff Member: Olga Tikhomirova, Director of Finance Item 9 - Executive Summary.pdf
01-Staff Report Investment Report Sep 22.docx
02-Operations Cash 09 30 2022.pdf
03-Fiscal Agent 09 30 2022.pdf
04-Graph 09 30 2022.pdf
05-Cash September 2022.pdf

10. 2022 Reimbursement Agreement with Southwest Gas
Requested Action / Suggested Motions: Pass a Resolution authorizing the execution of a Reimbursement Agreement with Southwest Gas and amending the Street Overlay Program account by appropriating $1,712,035 of in lieu paving funds from Southwest Gas for the purpose of funding the 2023 Road Rehabilitation Project.

Responsible Staff Members: Mark Frisina, Resident Engineer, and Stan Hill, Engineering Division Manager
Item 10 - Executive Summary.pdf
01-Staff Report - Southwest Gas Reimbursement Agreement.docx 02-Resolution.docx
03-Reimbursement Agreement (Exh. A to Resolution).docx

11. Purchase of a LeeBoy 7000C Paver from Nixon-Egli Equipment Co. for $180.346.46 Requested Action / Suggested Motions: Pass a Motion authorizing and directing the City Manager to execute a purchase order for one LeeBoy 7000C Paver from Nixon-Egli Equipment Co. in the amount of $180,346.46 for use in the Streets Division for Street Pavement Repair and Maintenance.

Responsible Staff Members: Anush Nejad, Director of Public Work and Phil Harwood, Fleet Supervisor
Item 11 - Executive Summary.pdf
01 - Staff Report - Paver.docx
02 - LeeBoy 7000C Paver.pdf
03-Nixon Egli Quote.pdf
04 - Sourcewell LeeBoy Contract.pdf

12. Fiscal Year 2021-22 Quarterly Financial Status Report - Quarter Ending September 2022 Requested Action / Suggested Motions: Receive and file. 4 5
Responsible Staff Member: Andrew Black, Financial Services Supervisor Item 12 - Executive Summary.pdf
01-Staff Report - Sept 2022 Budget and Financial Status Report.docx 02-FY 2021-22 Qtrly Budget Report Sep 2022
Regular-New Business

13. City Council Assignments to Boards and Commissions
Requested Action / Suggested Motions: 1) Pass a Motion approving City Council assignments to boards and commissions; and 2) Pass a Motion approving citizen representation to the El Dorado County Commission on Aging, Tahoe Regional Planning Agency Advisory Planning Commission, and the El Dorado Community Action Council.

Responsible Staff Member: Susan Blankenship, City Clerk Item 13 - Executive Summary.pdf
01-Staff Report - Assignments to Commissions and Boards.docx 02-2022 City Council Assignments
03-Notice of Solicitation - City Council Representative.pdf 04-Conway application CAC_Redacted.pdf
05-Chandler application for TRPA APC_Redacted.pdf
06-Bannister application Commissions on Aging_Redacted.pdf 07-Schenning application Commission on Aging_Redacted.pdf 08-Schenning - Letter to Council.pdf

14. South Tahoe Refuse Interim Year Rate Increase of 4.96 Percent Requested Action / Suggested Motions: Pass a Motion approving South Tahoe Refuse Interim Year Rate Increase of 4.96 percent ($1.76 per month for residential customers and $2.01 per cubic yard for commercial customers).

Responsible Staff Member: Anush Nejad Public Works Director Item 14 - Executive Summary.pdf
01-Staff Report - South Tahoe Refuse Interim Year Rate Adjustment.docx 02-Rate Setting Manual.pdf
03-STR 2023 Interim Year Rate Review Report.pdf
04-Clean Tahoe Annual Report.pdf
05-Presentation.pptx

15. 2023 City Council Meeting Schedule
Requested Action / Suggested Motions: Pass a Resolution adopting the 2023 City Council regular meeting schedule.

Responsible Staff Members: Susan Blankenship, City Clerk and Joseph Irvin, City Manager Item 15 - Executive Summary.pdf
01-Staff Report - 2023 City Council Meeting Schedule.docx 02-Resolution - 2023 City Council Regular Meeting Schedule.docx 03-2023 Meeting Calendar (Exh. A to Resolution).docx

16. Travel Authorization - League of California Cities 2023 New Mayors and Council Members Academy (Sacramento)
Requested Action / Suggested Motions: Pass a Motion approving registration and travel for Council members who would like to attend the League of California Cities 2023 New Mayors and Council Members Academy January 18-20. The estimated cost of registration and per diem is $1,250 per person.
5 6
Responsible Staff Member: Susan Blankenship, City Clerk Item 16- Executive Summary.pdf
01-Staff Report - League Registration Authorization.docx Agenda Planning Calendar

17. 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 17- Executive Summary.pdf
APC - 12 02 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 December 13, 2022 meeting of the City of South Lake Tahoe City Council was posted and available for review on Thursday, December 8, 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 December 8, 2022
\\sb\\
Susan Blankenship, Elected City Clerk
6 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 1
Agenda Item: Certification of Election Results
Executive Summary: For the November 8, 2022 General Election, the City of South Lake Tahoe consolidated with the El Dorado County Elections Department for the purpose of electing three City Council members, one City Treasurer, one City Clerk, and one City measure on the ballot. The results from the November 8, 2022 election were certified by the El Dorado County Registrar of Voters on December 1, 2022. The certification of Election results meets the requirement stipulated in Elections Code sections 10262(b) and 10263.

Requested Action / Suggested Motions: Pass a Resolution certifying the results of the November 8, 2022 Consolidated General Election.

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

Heather Stroud, City Attorney
Attachments:
01-Staff Report.docx
02 - Resolution - Certification of Election Results.docx 03-Certification of Election (Exh. A to Resolution).pdf 04-Ordinance 2022-1164 Amending Chapter 3.35 Cannabis Tax.pdf 7 Council Agenda Report- December 13, 2022 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: Certification of Election Results
Location: Citywide
Responsible Staff Member: Susan Blankenship, City Clerk (530) 542-6005 Background: For the November 8, 2022, General Election, the City of South Lake Tahoe consolidated with the El Dorado County Elections Department for the purpose of electing three City Council members, one City Treasurer, one City Clerk, and one City measure on the ballot.

Elections Code section 10262(b) stipulates:
(b) For a consolidated election, the city elections official, upon receipt of the results of the election from the elections official conducting the election, shall certify the results to the governing body which shall, no later than the next regularly scheduled city council meeting following presentation of the 28-day canvass of the returns, or at a special meeting called for this purpose, comply with the applicable provisions of Section 10263.

Elections Code section 10263 stipulates:

Upon the completion of the canvass and before installing the new officers, the governing body shall adopt a resolution reciting the fact of the election and the other matters that are enumerated in Section 10264. The governing body shall declare elected the persons for whom the highest number of votes were cast for each office.

The results from the November 8, 2022 election were certified by the El Dorado County Registrar of Voters on December 1, 2022. A copy of the Official Final Summary Report which has been certified by Bill O’Neil, Registrar of Voters, is attached to the resolution as "Exhibit A." Financial Implications: An invoice has not yet been received from El Dorado County for the City's cost of the election; however, the estimated cost for consolidation of the General Election was budgeted for in the Office of the City Clerk 2022/23 Fiscal Year Budget.

Environmental Considerations: Certification of election results is not a project requiring review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes in the environment).

Policy Implications: The certification of Election results meets the requirements of the Elections Code.
8 Resolution 2022-XXX December 13, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
December 13, 2022
Certifying the Election Results of the
Consolidated General Election held on November 8, 2022

BACKGROUND
A. On November 8, 2022, a Consolidated General Election was held in the City of South Lake Tahoe pursuant to City of South Lake Tahoe Ordinance No. 860.

B. The election returns have been canvassed by the El Dorado County Registrar of Voters pursuant to the provisions of the California Elections Code and the results have been certified and are being presented to the City Council.

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

1. Certifies that the whole number of votes cast in the City, the names of the persons voted for, the measures voted upon, for what office each person was voted for, the number of votes given at each precinct to each person and for and against each measure, the number of votes given in the city to each person and for and against each measure, are within the copy of the Official Final Summary Report which has been certified by Bill O’Neil, Registrar of Voters on December 1, 2022, is attached to this resolution as "Exhibit A" and incorporated herein by reference.

2. Certifies that the following named persons are hereby declared to have been elected as members of the City Council for a full term of four (4) years: Tamara Wallace, Cody Bass, and Scott Robbins.

3. Certifies that the following named person is hereby declared to have been elected as City Treasurer for a full term of four (4) years: David Olivo.

4. Certifies that the following named person is hereby declared to have been elected as City Clerk for a full term of four (4) years: Susan Blankenship.

5. Certifies the result of the following ballot initiative: Measure G (Ordinance 2022-1164) - Passed Adopted by the City of South Lake Tahoe City Council on December 13, 2022, by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Mayor
Attest:
________________________
Susan Blankenship, City Clerk
9 Resolution 2022-XXX December 13, 2022 Page 2 of 2
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
10 COUNTY OF EL DORADO

REGISTRAR OF VOTERS
Bill O'Neill
2850 Fairlane Court
PO Box 67800 I
Placerville CA 95667
www.edcgov.us/elections/
Phone: 530.621. 7480 Fax: 530.626.5514
Linda Webster - Assistant Registrar of Voters

CERTIFICATE OF

REGISTRAR OF VOTERS

RESULT OF THE OFFICIAL CANVASS
ST ATE OF CALIFORNIA }

COUNTY OF ELDORADO
§.

I, Bill O'Neill, Registrar of Voters of the County of El Dorado, State of California, do hereby certify that, in pursuance of the provisions of Elections Code Section 15300, et seq., I did canvass the results of the votes cast in the Statewide General Election held in said County on November 8, 2022, for federal, state and local candidates, and measures; and
Pursuant to the statewide voter registration list requirements set forth in the Help America Vote Act of2002 (HA VA) 52 U.S.C. § 21083), I complied with a!l provisions of Chapter 2 of Division 7 of Title 2 of the California Code of Regulations for said election; and
WHEREAS, the Statement of Votes Cast, to which this certificate is attached, shows the whole number of votes cast for each candidate and each measure in said election, in said County and in each of the respective precincts herein, and that the totals of the respective columns and the totals as shown for each candidate and each measure are hereby recorded; therefore,
IT IS HEREBY STATED that the attached Statement of Votes Cast is deemed to be full, true and correct.

Witness my hand and official seal
This 1st day of December 2022
Bill O'�eill
Registrar of Voters
Exhibit A
11 Candidate Party Total
BRIAN DAHLE REP 54,137 61.05%
GAVIN NEWSOM DEM 34,534 38.95%
Total Votes 88,671
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Governor (Vote for 1)
Candidate Party Total

ANGELA E UNDERWOOD
JACOBS REP 51,394 58.80%
ELENI KOUNALAKIS DEM 36,012 41.20%
Total Votes 87,406
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Lieutenant Governor (Vote for 1)
Candidate Party Total
ROB BERNOSKY REP 51,599 59.07%
SHIRLEY N WEBER DEM 35,747 40.93%
Total Votes 87,346
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Secretary of State (Vote for 1)
Precincts Reported: 192 of 192 (100.00%)
Voters Cast: 89,823 of 138,537 (64.84%)

COUNTY OF EL DORADO
TUESDAY, NOVEMBER 8, 2022

GENERAL ELECTION

OFFICIAL FINAL SUMMARY REPORT
Page: 1 of 20 12/1/2022 1:43:52 PM
12 Candidate Party Total
LANHEE J CHEN REP 54,471 62.66%
MALIA M COHEN DEM 32,460 37.34%
Total Votes 86,931
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Controller (Vote for 1)
Candidate Party Total
JACK M GUERRERO REP 51,600 59.36%
FIONA MA DEM 35,323 40.64%
Total Votes 86,923
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Treasurer (Vote for 1)
Candidate Party Total
NATHAN HOCHMAN REP 51,900 59.53%
ROB BONTA DEM 35,281 40.47%
Total Votes 87,181
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Attorney General (Vote for 1)
Candidate Party Total
ROBERT HOWELL REP 50,717 58.75%
RICARDO LARA DEM 35,609 41.25%
Total Votes 86,326
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Insurance Commissioner (Vote for 1)
Page: 2 of 20 12/1/2022 1:43:52 PM
13 Candidate Party Total
TED GAINES REP 54,051 63.01%
JOSE S ALTAMIRANO DEM 31,731 36.99%
Total Votes 85,782
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Member, State Board Of Equalization 1st District (Vote for 1) Candidate Party Total
MARK P MEUSER REP 51,025 58.19%
ALEX PADILLA DEM 36,669 41.81%
Total Votes 87,694
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
United States Senator (Full Term) (Vote for 1)
Candidate Party Total
MARK P MEUSER REP 50,871 58.20%
ALEX PADILLA DEM 36,530 41.80%
Total Votes 87,401
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
United States Senator (Partial/Unexpired Term) (Vote for 1) Candidate Party Total
KEVIN KILEY REP 13,433 51.68%
KERMIT JONES DEM 12,562 48.32%
Total Votes 25,995
Total
Times Cast 26,556 / 44,858 59.20%
Precincts Reported: 75 of 75 (100.00%)
US Representative 3rd District (Vote for 1)
Page: 3 of 20 12/1/2022 1:43:52 PM
14 Candidate Party Total
TOM MCCLINTOCK REP 37,797 61.18%
MICHAEL J "MIKE" BARKLEY DEM 23,978 38.82%
Total Votes 61,775
Total
Times Cast 63,267 / 93,679 67.54%
Precincts Reported: 117 of 117 (100.00%)
US Representative 5th District (Vote for 1)
Candidate Party Total
MARIE ALVARADO-GIL DEM 32,202 50.69%
TIM ROBERTSON DEM 31,320 49.31%
Total Votes 63,522
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
State Senator 4th District (Vote for 1)
Candidate Party Total
MEGAN DAHLE REP 11,905 53.44%
BELLE STARR SANDWITH DEM 10,374 46.56%
Total Votes 22,279
Total
Times Cast 23,147 / 39,898 58.02%
Precincts Reported: 71 of 71 (100.00%)
State Assembly 1st District (Vote for 1)
Candidate Party Total
JOE PATTERSON REP 40,166 62.71%
REBECCA L CHENOWETH DEM 23,885 37.29%
Total Votes 64,051
Total
Times Cast 66,676 / 98,639 67.60%
Precincts Reported: 121 of 121 (100.00%)
State Assembly 5th District (Vote for 1)
Page: 4 of 20 12/1/2022 1:43:52 PM
15 Candidate Party Total
YES 37,245 55.96%
NO 29,309 44.04%
Total Votes 66,554
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Supreme Court Chief Justice (Vote for 1)
Candidate Party Total
YES 36,902 56.39%
NO 28,535 43.61%
Total Votes 65,437
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Supreme Court Associate Justice, Goodwin Liu (Vote for 1) Candidate Party Total
YES 36,827 56.78%
NO 28,027 43.22%
Total Votes 64,854
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Supreme Court Associate Justice, Martin J Jenkins (Vote for 1) Candidate Party Total
YES 36,231 56.11%
NO 28,341 43.89%
Total Votes 64,572
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Supreme Court Associate Justice, Joshua P Groban (Vote for 1) Page: 5 of 20 12/1/2022 1:43:52 PM
16 Candidate Party Total
YES 36,592 58.31%
NO 26,160 41.69%
Total Votes 62,752
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Court of Appeals Associate Justice, Stacy Boulware Eurie (Vote for 1) Candidate Party Total
YES 35,056 55.95%
NO 27,595 44.05%
Total Votes 62,651
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Court of Appeals Associate Justice, Laurie M Earl (Vote for 1) Candidate Party Total
YES 39,020 63.14%
NO 22,782 36.86%
Total Votes 61,802
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Court of Appeals Associate Justice, Harry Hull (Vote for 1) Candidate Party Total
YES 35,278 57.14%
NO 26,458 42.86%
Total Votes 61,736
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Court of Appeals Associate Justice, Peter Krause (Vote for 1) Page: 6 of 20 12/1/2022 1:43:52 PM
17 Candidate Party Total
TONY K THURMOND 34,736 51.20%
LANCE RAY CHRISTENSEN 32,349 47.68%
Write-in 759 1.12%
Total Votes 67,844
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
State Superintendent (Vote for 1)
Candidate Party Total
ADAM C CLARK 8,568 62.78%
LARRY HARRIS 4,926 36.10%
Write-in 153 1.12%
Total Votes 13,647
Total
Times Cast 18,983 / 28,162 67.41%
Precincts Reported: 32 of 32 (100.00%)
County Board of Education Trustee Area 2 (Vote for 1)
Candidate Party Total
AMY SELLERS 7,333 49.73%
DARCY C KNIGHT 7,294 49.46%
Write-in 119 0.81%
Total Votes 14,746
Total
Times Cast 19,957 / 28,914 69.02%
Precincts Reported: 57 of 57 (100.00%)
County Board of Education Trustee Area 4 (Vote for 1)
Candidate Party Total
ANDREA DODSON 2,849 32.00%
JEFF BURCH 2,147 24.12%
DALE LUSBY 2,014 22.62%
RONALD "RONNIE" EBITSON 1,834 20.60%
Write-in 59 0.66%
Total Votes 8,903
Total
Times Cast 6,874 / 10,154 67.70%
Precincts Reported: 13 of 13 (100.00%)
Black Oak Mine Unified School District Trustee Area 1 Governing Board Member (Vote for 2)
Page: 7 of 20 12/1/2022 1:43:52 PM
18 Candidate Party Total
LAURI KEMPER 1,256 61.84%
BOB GRANT 767 37.76%
Write-in 8 0.39%
Total Votes 2,031
Total
Times Cast 2,344 / 4,162 56.32%
Precincts Reported: 8 of 8 (100.00%)
Lake Tahoe Unified School District Trustee Area 5 (Vote for 1) Candidate Party Total
PATRICK MOONEY 238 67.61%
RICHARD LUDKE 114 32.39%
Write-in 0 0.00%
Total Votes 352
Total
Times Cast 439 / 662 66.31%
Precincts Reported: 2 of 2 (100.00%)
Tahoe Truckee Unified School District Trustee Area 1 (Vote for 1) Candidate Party Total
DENYELLE NISHIMORI 214 60.62%
HEATHER WHITNEY 137 38.81%
Write-in 2 0.57%
Total Votes 353
Total
Times Cast 439 / 662 66.31%
Precincts Reported: 2 of 2 (100.00%)
Tahoe Truckee Unified School District Trustee Area 4 (Vote for 1) Candidate Party Total
DIANNA "DEEDEE" DRILLER 251 67.11%
SHANNON M HANSEN 123 32.89%
Write-in 0 0.00%
Total Votes 374
Total
Times Cast 439 / 662 66.31%
Precincts Reported: 2 of 2 (100.00%)
Tahoe Truckee Unified School District Trustee Area 5 (Vote for 1) Page: 8 of 20 12/1/2022 1:43:52 PM
19 Candidate Party Total
BROOKE B VAN KOMEN 32,406 25.34%
JESSICCA RODGERS 30,547 23.88%
TIMOTHY M CARY 27,744 21.69%
RAY NUTTING 23,255 18.18%
GERMAN A SIERRA 12,951 10.13%
Write-in 1,000 0.78%
Total Votes 127,903
Total
Times Cast 72,417 / 108,097 66.99%
Precincts Reported: 151 of 151 (100.00%)
El Dorado Union High School District Governing Board Member (Vote for 3) Candidate Party Total
JONATHAN D YOFFIE 6,772 19.01%
SCOTT V MASTEN 6,694 18.79%
BRENDA HANSON-SMITH 6,411 17.99%
EILEEN GRIFFIN 6,032 16.93%
RYAN MEIER 5,818 16.33%
JOELLENE J VAKULICH 3,673 10.31%
Write-in 232 0.65%
Total Votes 35,632
Total
Times Cast 20,387 / 30,873 66.04%
Precincts Reported: 30 of 30 (100.00%)
Buckeye Union School District Governing Board Member (Vote for 3) Candidate Party Total
JUDY MORRIS 1,209 29.20%
BOB VAN GILDER 1,046 25.27%
BILL SNODGRASS 979 23.65%
AL EUGENE WOODEN 861 20.80%
Write-in 45 1.09%
Total Votes 4,140
Total
Times Cast 2,463 / 3,621 68.02%
Precincts Reported: 9 of 9 (100.00%)
Camino Union School District Governing Board Member (Vote for 3) Page: 9 of 20 12/1/2022 1:43:52 PM
20 Candidate Party Total
ROY H BOYD 1,725 23.65%
CHRISTINA KARLE 1,684 23.09%
JERALD SORACCO 1,680 23.04%
SHERI A COOK 1,155 15.84%
R RENEE FERGUSON 988 13.55%
Write-in 61 0.84%
Total Votes 7,293
Total
Times Cast 3,992 / 5,840 68.36%
Precincts Reported: 12 of 12 (100.00%)
Gold Oak Union School District Governing Board Member (Vote for 3) Candidate Party Total
GREG CLARK 1,248 19.47%
JULIE AKIN BAUER 1,092 17.03%
EDDY KLIER 894 13.94%
RUSTY SAGE 787 12.28%

MATTHEW DOUGLAS
MIKLOS 684 10.67%
NATHANIEL J GRGICH 643 10.03%
JEFFERY M ALKEMA 515 8.03%
MOLLEY KLIER 515 8.03%
Write-in 33 0.51%
Total Votes 6,411
Total
Times Cast 3,585 / 4,974 72.07%
Precincts Reported: 11 of 11 (100.00%)
Gold Trail Union School District Governing Board Member (Vote for 3) Candidate Party Total
NANCY CAHILL 2,774 21.60%
VALERIE A BAKER 2,730 21.25%
BRIDGETT HARTSHORN 2,690 20.94%
PETER MARTINEZ 2,287 17.80%
RAE HARDY 2,267 17.65%
Write-in 97 0.76%
Total Votes 12,845
Total
Times Cast 7,623 / 11,515 66.20%
Precincts Reported: 18 of 18 (100.00%)
Mother Lode Union School District Governing Board Member (Vote for 3) Page: 10 of 20 12/1/2022 1:43:52 PM
21 Candidate Party Total
MISTY DI VITTORIO 3,076 27.85%
KATHARINE STABLER 2,865 25.94%
CHRIS BELMER 2,691 24.36%
ADAM DOMINGUEZ 2,338 21.17%
Write-in 76 0.69%
Total Votes 11,046
Total
Times Cast 6,513 / 10,115 64.39%
Precincts Reported: 18 of 18 (100.00%)
Placerville Union School District Governing Board Member (Vote for 3) Candidate Party Total
MICHAEL BIRD 1,539 23.93%
DAVE CAMPBELL 1,506 23.42%
SUSAN MCVEY 1,481 23.03%

CARMELA DANDAN
BUENROSTRO 1,311 20.39%
JACKIE MULLINAX 531 8.26%
Write-in 62 0.96%
Total Votes 6,430
Total
Times Cast 3,866 / 6,455 59.89%
Precincts Reported: 11 of 11 (100.00%)
Pollock Pines School District Governing Board Member (Vote for 3) Candidate Party Total
JAMIE HUNTER 7,768 29.12%
MICHELLE BEBOUT 7,353 27.57%
KIM WHITE 6,885 25.81%
JENNEY ROBLES 4,372 16.39%
Write-in 296 1.11%
Total Votes 26,674
Total
Times Cast 18,362 / 26,973 68.08%
Precincts Reported: 30 of 30 (100.00%)
Rescue Union School District Governing Board Member (Vote for 3) Page: 11 of 20 12/1/2022 1:43:52 PM
22 Candidate Party Total
BROOKE LAINE 7,346 58.32%
KENNY CURTZWILER 5,180 41.13%
Write-in 69 0.55%
Total Votes 12,595
Total
Times Cast 14,347 / 26,635 53.87%
Precincts Reported: 38 of 38 (100.00%)
County Supervisor 5th District (Vote for 1)
Candidate Party Total
NICOLE GOTBERG 1,599 18.59%
JOHN L CLERICI 1,424 16.56%
DAVID YARBROUGH 1,294 15.05%
DENNIS THOMAS 1,221 14.20%
PAUL R GODWIN 1,065 12.38%
SEAN BRIGGS 958 11.14%
RUTH CARTER 899 10.45%
DUNCAN ALLEN 108 1.26%
Write-in 32 0.37%
Total Votes 8,600
Total
Times Cast 4,108 / 6,671 61.58%
Precincts Reported: 8 of 8 (100.00%)
City Of Placerville City Council Member (Vote for 3)
Page: 12 of 20 12/1/2022 1:43:52 PM
23 Candidate Party Total
SCOTT ROBBINS 2,052 14.81%
CODY BASS 1,997 14.42%
TAMARA WALLACE 1,831 13.22%
DAVID JINKENS 1,738 12.55%
JOBY CEFALU 1,422 10.26%
NICK SPEAL 1,289 9.30%
CHANTELLE SCHENNING 1,013 7.31%
NICOLE A RAMIREZ THOMAS 979 7.07%
SHERRY EDDY 687 4.96%
BRAD DYLAN JACOBSON 540 3.90%
KEVIN BRUNNER 241 1.74%
Write-in 64 0.46%
Total Votes 13,853
Total
Times Cast 5,943 / 13,046 45.55%
Precincts Reported: 17 of 17 (100.00%)
City Of South Lake Tahoe City Council Member (Vote for 3) Candidate Party Total
SUSAN BLANKENSHIP 4,244 98.54%
Write-in 63 1.46%
Total Votes 4,307
Total
Times Cast 5,943 / 13,046 45.55%
Precincts Reported: 17 of 17 (100.00%)
City Of South Lake Tahoe City Clerk (Vote for 1)
Candidate Party Total
DAVID W OLIVO 4,323 98.50%
Write-in 66 1.50%
Total Votes 4,389
Total
Times Cast 5,943 / 13,046 45.55%
Precincts Reported: 17 of 17 (100.00%)
City Of South Lake Tahoe City Treasurer (Vote for 1)
Page: 13 of 20 12/1/2022 1:43:52 PM
24 Candidate Party Total
HEIDI HANNAMAN 10,893 27.33%
STEVE FERRY 9,203 23.09%
MICHAEL MARTINELLI 7,671 19.24%
LEWIS HAMPTON 7,540 18.92%
WILLIAM A WILLMAN 4,295 10.77%
Write-in 259 0.65%
Total Votes 39,861
Total
Times Cast 23,552 / 34,389 68.49%
Precincts Reported: 27 of 27 (100.00%)
El Dorado Hills Community Services District Director (Vote for 3) Candidate Party Total
MICHAEL WEIDERT 3,368 34.86%
MIKE PETTIBONE 3,367 34.85%
PATRICK WILLIAMS 2,870 29.71%
Write-in 56 0.58%
Total Votes 9,661
Total
Times Cast 8,123 / 12,075 67.27%
Precincts Reported: 16 of 16 (100.00%)
Diamond Springs/El Dorado Fire Protection District Director (Vote for 2) Candidate Party Total
LLOYD W OGAN 3,943 84.70%
ROBERT "BOB" TURNEY 674 14.48%
Write-in 38 0.82%
Total Votes 4,655
Total
Times Cast 6,235 / 9,232 67.54%
Precincts Reported: 21 of 21 (100.00%)
El Dorado County Fire Protection District Division 3 Director (Vote for 1) Page: 14 of 20 12/1/2022 1:43:52 PM
25 Candidate Party Total
LINNEA UGGLA 301 24.53%
DAVID BLAIN 284 23.15%
DON STEVER 274 22.33%
DANIEL E HUNT 216 17.60%
WILLIAM BUHNERKEMPE 135 11.00%
Write-in 17 1.39%
Total Votes 1,227
Total
Times Cast 601 / 928 64.76%
Precincts Reported: 2 of 2 (100.00%)
Mosquito Fire Protection District Director (Vote for 3) Candidate Party Total
MICHAEL SAUNDERS 2,894 28.16%
ROBERT STOVALL 2,845 27.68%
DONNA SEAMAN 2,803 27.27%
BONNIE NEELEY 1,627 15.83%
Write-in 108 1.05%
Total Votes 10,277
Total
Times Cast 5,906 / 8,661 68.19%
Precincts Reported: 13 of 13 (100.00%)
Georgetown Divide Public Utility District Director (Vote for 3) Candidate Party Total
NICK EXLINE 5,351 28.92%
SHANE ROMSOS 4,776 25.81%
NICK HAVEN 4,245 22.94%
DUANE WALLACE 4,018 21.72%
Write-in 112 0.61%
Total Votes 18,502
Total
Times Cast 10,063 / 19,573 51.41%
Precincts Reported: 21 of 21 (100.00%)
South Tahoe Public Utility District Director (Vote for 3) Page: 15 of 20 12/1/2022 1:43:52 PM
26 Candidate Party Total
JOHN PANG 228 44.19%
GAIL SCOVILLE 188 36.43%
MORGAHN GREY 97 18.80%
Write-in 3 0.58%
Total Votes 516
Total
Times Cast 440 / 662 66.47%
Precincts Reported: 3 of 3 (100.00%)
Tahoe City Public Utility District Director (Vote for 2) Candidate Party Total
YES 47,021 54.13%
NO 39,853 45.87%
Total Votes 86,874
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Proposition 1 (Vote for 1)
Candidate Party Total
NO 64,165 74.38%
YES 22,099 25.62%
Total Votes 86,264
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Proposition 26 (Vote for 1)
Candidate Party Total
NO 74,978 86.26%
YES 11,938 13.74%
Total Votes 86,916
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Proposition 27 (Vote for 1)
Page: 16 of 20 12/1/2022 1:43:52 PM
27 Candidate Party Total
YES 46,329 53.38%
NO 40,459 46.62%
Total Votes 86,788
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Proposition 28 (Vote for 1)
Candidate Party Total
NO 66,575 77.55%
YES 19,277 22.45%
Total Votes 85,852
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Proposition 29 (Vote for 1)
Candidate Party Total
NO 56,260 64.61%
YES 30,823 35.39%
Total Votes 87,083
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Proposition 30 (Vote for 1)
Candidate Party Total
YES 49,287 56.87%
NO 37,382 43.13%
Total Votes 86,669
Total
Times Cast 89,823 / 138,537 64.84%
Precincts Reported: 192 of 192 (100.00%)
Proposition 31 (Vote for 1)
Page: 17 of 20 12/1/2022 1:43:52 PM
28 Candidate Party Total
BONDS YES 5,133 54.29%
BONDS NO 4,322 45.71%
Total Votes 9,455
Total
Times Cast 10,093 / 19,624 51.43%
Precincts Reported: 26 of 26 (100.00%)
Measure K - Lake Tahoe USD - 55 to Pass (Vote for 1)
Candidate Party Total
BONDS YES 3,279 50.54%
BONDS NO 3,209 49.46%
Total Votes 6,488
Total
Times Cast 6,874 / 10,154 67.70%
Precincts Reported: 13 of 13 (100.00%)
Measure Q - Black Oak Mine USD - 55 to Pass (Vote for 1) Candidate Party Total
NO 38,639 54.23%
YES 32,616 45.77%
Total Votes 71,255
Total
Times Cast 75,183 / 111,580 67.38%
Precincts Reported: 155 of 155 (100.00%)
Measure R - TOT West - 2/3 to pass (Vote for 1)
Candidate Party Total
YES 3,629 81.83%
NO 806 18.17%
Total Votes 4,435
Total
Times Cast 4,589 / 7,240 63.38%
Precincts Reported: 12 of 12 (100.00%)
Measure S - TOT East - 2/3 to pass (Vote for 1)
Page: 18 of 20 12/1/2022 1:43:52 PM
29 Candidate Party Total
YES 3,521 62.95%
NO 2,072 37.05%
Total Votes 5,593
Total
Times Cast 5,943 / 13,046 45.55%
Precincts Reported: 17 of 17 (100.00%)
Measure G - City Of South Lake Tahoe - Majority (Vote for 1) Candidate Party Total
YES 1,062 90.85%
NO 107 9.15%
Total Votes 1,169
Total
Times Cast 1,214 / 1,353 89.73%
Precincts Reported: 1 of 1 (100.00%)
Measure H - Carson Creek Park LLAD - Majority (Vote for 1) Candidate Party Total
YES 152 78.35%
NO 42 21.65%
Total Votes 194
Total
Times Cast 197 / 243 81.07%
Precincts Reported: 1 of 1 (100.00%)
Measure J - Cameron Park Airport - 2/3 to Pass (Vote for 1) Candidate Party Total
YES 107 86.29%
NO 17 13.71%
Total Votes 124
Total
Times Cast 127 / 172 73.84%
Precincts Reported: 1 of 1 (100.00%)
Measure L - Highland Hills Village ZOB - 2/3 to Pass (Vote for 1) Page: 19 of 20 12/1/2022 1:43:52 PM
30 Candidate Party Total
YES 42 62.69%
NO 25 37.31%
Total Votes 67
Total
Times Cast 68 / 109 62.39%
Precincts Reported: 3 of 3 (100.00%)
Measure M - Lynx Trail ZOB - 2/3 to Pass (Vote for 1)
Candidate Party Total
YES 45 62.50%
NO 27 37.50%
Total Votes 72
Total
Times Cast 74 / 99 74.75%
Precincts Reported: 1 of 1 (100.00%)
Measure N - Hickok Road CSD - 2/3 to Pass (Vote for 1)
Candidate Party Total
YES 37 75.51%
NO 12 24.49%
Total Votes 49
Total
Times Cast 51 / 59 86.44%
Precincts Reported: 1 of 1 (100.00%)
Measure P - Knolls Property Owners CSD - 2/3 to Pass (Vote for 1) Page: 20 of 20 12/1/2022 1:43:52 PM
31 Ordinance 2022- 1164 August 9, 2022 Page 1 of 8
Ordinance 2022-1164
Adopted by the City of South Lake Tahoe
City Council
August 9, 2022
An Ordinance 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

FINDINGS
A. The City of South Lake Tahoe imposes business and profession taxes upon businesses in the City, which are imposed to raise revenue and not for regulation.

B. Currently, the City enters into development agreements with permitted local cannabis businesses, under which businesses pay a community benefit fee. These development agreements are required to undergo an annual review under state law and create an administrative burden on local businesses and City staff.

C. This Ordinance would impose a business and professions tax on persons engaged in commercial activity in the City involving cannabis products ( the “Measure”). This business and professions tax would apply to persons engaged in commercial cannabis activity instead of the business and professions tax rates set forth in Article II of Chapter 3.35 of Title 3 of the South Lake Tahoe City Code. All other regulations, which have been working, would be unaffected.

D. Since the first new business opened in 2020, several retail stores with delivery and a microbusiness with a large indoor cultivation operation have been operating legally in South Lake Tahoe, in addition to the existing medical dispensary that had been operating previously. These businesses have not attracted crime, there have been very few problems for residents, and the businesses have generated funding for the local economy and grants for local non-profit organizations.

E. The Measure would allow the City to continue to address the service priorities that residents have identified as important, including maintaining fire protection and fast emergency response, reducing the threat of wildfires, repairing streets and potholes, and maintaining snow removal, as well as nonprofit community benefit grants and other services that are critical to our neighborhoods and residents’ health and safety.

F. South Lake Tahoe residents benefit from the hundreds of thousands of dollars paid by visitors to our community who shop at local cannabis businesses. This Measure ensures that we continue to make sure visitors are contributing to the local services they use and impacts they have on residents.

G. The Measure includes fiscal accountability provisions including an annual independent financial audit to enhance accountability and transparency. No Measure funds could be taken 32 Ordinance 2022- 1164 August 9, 2022 Page 2 of 8
by the county, state, or federal government and funds must be used exclusively in South Lake Tahoe to address local needs.

H. The City Council may submit the Ordinance directly to the voters pursuant to Section 9222 of the California Elections Code.

I. The tax must be approved by a majority of the electorate to be effective.

J. At a properly noticed meeting on June 21, 2022, the City Council adopted a resolution to call a general election for November 8, 2022.

K. On the general election on November 8, 2022, the City will submit to the qualified voters of the City the Ordinance to impose a general tax on commercial cannabis activity in the City.

Now, Therefore, the City Council of City of South Lake Tahoe does ordain as follows:

SECTION 1. Article III of Chapter 3.35 of Title 3 of the South Lake Tahoe City Code is hereby adopted to read as follows:

Article III. Cannabis Business and Professions Tax

3.35.350 - Title.

This article shall be referenced as the “South Lake Tahoe Cannabis Business and Professions Tax.”

3.35.360 - Purpose.

This article is adopted for the following purposes and shall be interpreted to accomplish them:

A. To impose a tax on the privilege of conducting cannabis business in the city, under the state Medicinal and Adult-Use Cannabis Regulation and Safety Act, California Business and Professions Code section 26000, Proposition 64, approved by the voters in November 2016 and as amended to date (“ MAUCRSA”), which legalized and regulates adult use of cannabis in California, and other applicable law as it now exists or may hereafter be adopted; B. To impose a general tax to generate revenues which may be used in the discretion of the city council for any lawful purpose of the city;
C. To specify the type of tax and rate of tax to be levied and the method of collection; and D. To comply with all requirements for imposition of a general tax.

This article is enacted solely to raise revenue, not for regulation. It shall apply to all persons engaged in cannabis business in the City. The tax imposed by this article is a general tax under Article XIII C of the California Constitution.

3.35.370 - Definitions.

For the purposes of this article, the following words shall have the meanings ascribed to them by this section unless the context makes apparent another meaning was intended. 33 Ordinance 2022- 1164 August 9, 2022 Page 3 of 8
Cannabis” has the meaning stated in section 6.55.710 of this code.

Cannabis business“ means the activity of any natural or legal person, business, or collective in the City relating to cannabis, including but not limited to cultivation ( including nurseries), transportation, distribution, manufacture, compounding, conversion, processing, preparation, testing, storage, packaging, delivery and sales ( including both wholesale and retail sales) of cannabis, cannabis products, or cannabis accessories, whether or not carried on for gain or profit, whether for medical or adult use, and whether or not such business is licensed by the State. A cannabis business does not include any business the only relationship of which to cannabis or cannabis products is the production or sale of cannabis accessories.

Cannabis product” has the meaning stated in section 6.55.710 of this code.

Canopy” has the meaning stated in section 6.55.710 of this code. The city manager may, but is not required, to determine canopy from the area described in a cultivation license issued by the city whether or not the licensee actually cultivates that entire area.

City manager” means the city manager or designee.

Collector” means the city manager or a person charged by the city manager to administer this article.

Commercial cannabis cultivation” means cultivation conducted by, for, or as part of a cannabis business. Commercial cannabis cultivation does not include personal medical cannabis cultivation, or cultivation for personal adult use as authorized by the MAUCRSA, including Health & Safety Code section 11362. 1 et seq., for which the individual receives no compensation whatsoever.

Cultivation” has the meaning stated in section 6.55.710 of this code.

Delivery” has the meaning stated in section 6.55.710 of this code.

Retailer” has the meaning stated in section 6.55.710 of this code.

Distributor’’ has the meaning stated in section 6.55.710 of this code.

Gross receipts,” except as otherwise specifically provided in this article or by regulation authorized by this article, has the meaning stated in section 3.00.010 of this code.

Manufacturer” has the meaning stated in section 6.55.710 of this code.

Person” means any individual, firm, partnership, corporation, company, association, joint stock association; city, county, state, or district; and includes any trustee, receiver, assignee, or other similar representative thereof.
34 Ordinance 2022- 1164 August 9, 2022 Page 4 of 8

3.35.380 - Cannabis Business and Professions Tax.

A. There is hereby imposed on every person who engages in cannabis business in the city an annual cannabis business and professions tax in the amounts stated in this section or such lesser amounts as the City Council may from time to time establish by resolution.

B. Section 3.35.280 notwithstanding, the initial rate of the cannabis business and professions tax shall be as follows:

1. For every cannabis business engaged in commercial cannabis cultivation in the city:
a. Twenty dollars ($ 20.00) annually per square foot of canopy.

2. For every cannabis business that engages in any other cannabis business in the City whether or not that cannabis business is lawful under this code or other law:
a. Six percent ( 6%) of gross receipts annually.

Should a city cannabis use permit be issued to a business which cultivates only for certain months of the year, the collector shall prorate the tax as to sufficiently reflect the time in which cultivation occurs. In no case shall any portion of the canopy authorized by a city cannabis use permit but not used for cultivation be deducted from the tax base unless the taxpayer informs the collector in writing before the canopy or portion thereof is disused and the collector provides written evidence of relief from tax.

C. The city council may, by resolution, implement a tax rate lower than the maximum rate established in subsection ( B) of this section for all persons engaged in cannabis business, or establish differing tax rates for different categories of cannabis business. The city council may, by resolution, decrease or increase such tax rates without further voter approval provided the tax rate is not above the maximum tax rate established in subsection ( B) of this section.

3.35.390 - Payment obligations.

Each person subject to a tax under this article shall pay that tax regardless of any rebate, exemption, incentive, or other reduction elsewhere in this code, except as required by state or federal law. Failure to pay such a tax shall be subject to penalties, fines and interest charges established under section

3.35.200 of this code, and the city may resort to any or all other remedies available at law or in equity to enforce this article. No provision of this article shall be interpreted to reduce a tax rate established under this article or otherwise reduce the taxes paid hereunder unless the provision specifically requires that reduction.

3.35.400 - Tax payment does not authorize activity.

The payment of a tax imposed under this article does not authorize the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this article authorizes or implies the lawfulness of any activity connected with the distribution or possession of cannabis unless otherwise authorized and allowed in strict and full conformance with this code. Nothing in this article is intended to authorize commercial cannabis activity.
35 Ordinance 2022- 1164 August 9, 2022 Page 5 of 8

3.35.410 - Cannabis tax is not a sales tax.

The tax imposed by this article is upon the privilege of doing business in the city. It is not a sales or use tax.

3.35.420 - Returns and remittances.

The tax imposed by this article shall be due and payable as follows:

A. Each person owing tax under this article shall provide a tax return to the city manager on or before the last business day of each month stating the tax owed for the preceding month and the basis of its calculation. The taxpayer shall remit the tax owed to the city manager when the return is due.

B. The city manager may establish a form for tax returns submitted under this section and, if so, use of that form shall be mandatory.

C. Tax returns and payments for all outstanding taxes, penalties and interest owed the city are immediately due upon cessation of business for any reason.

D. Postmarks are not accepted and payments, statements, reports, requests, or other communications must be physically in the office of the collector when due. If the due date falls on a day when city offices are not open for business, the due date shall be the next following business day.

E. Unless otherwise provided by this article, the tax imposed by this article is delinquent if not paid by the due date specified in subsection ( A) of this section.

F. The city manager need not send a bill or delinquency or other notice to any person subject to a tax imposed by this article and failure to send such bill or notice shall not affect the validity of any tax, interest or penalty due under this article.

3.35.430 - Audits.

The city manager shall arrange for an annual independent audit of the receipts and expenditures of the taxes imposed by this article. He or she shall share that audit report with the city council and make it available for public inspection.

3.35.440 - Refunds.

A. No refund shall be made of any tax collected pursuant to this article, except as provided in this section.

B. No refund of any tax collected pursuant to this article shall be made because of the discontinuation, dissolution, or other termination of a cannabis business. 36 Ordinance 2022- 1164 August 9, 2022 Page 6 of 8
C. If a tax, penalty, or interest imposed under this article has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the city, such amount shall be refunded to the person who paid it upon a written claim for refund filed with the collector within one year of the payment sought to be refunded, and all such claims for refund of the amount of overpayment must be filed with the collector on forms furnished by the collector.

D. Any person entitled to a refund of sums paid under this article may ask the city to apply it as a credit against future obligations under this article.

E. The collector may examine and audit all the books and business records of a refund claimant to determine entitlement to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of the claimant’ s books and business records.

3.35.450 - Tax administration.

A. It shall be the duty of the city manager to collect the taxes, penalties, and interests, and perform the duties this article requires.

B. The city manager may from time to time promulgate such administrative rules and procedures consistent with the purpose, intent, and terms of this article as the city manager deems necessary to implement or clarify it or to aid in its enforcement. The city manager shall give notice of those regulations as required for ordinances of the city council and such regulations shall take effect upon such notice unless a particular regulation provides otherwise.

C. The city manager may take such administrative actions as needed to administer the tax, including but not limited to:

1. Provide information about this article to any taxpayer;

2. Receive and record all taxes remitted to the city under this article;

3. Maintain records of taxpayer reports and taxes collected under this article;

4. Assess penalties, fines and interest charges to taxpayers under this article;

5. Determine amounts owed and enforce collection under this article; and

6. Take such other reasonable steps as he or she deems appropriate to enforce this article.

D. The penalties, fines, and interest for delinquent payments in section 3.35.200 of this code shall apply to this article. The city council may establish by ordinance or resolution additional penalties, fines and interest charges related to this article. 37 Ordinance 2022- 1164 August 9, 2022 Page 7 of 8

3.35.460 - Appeals.

Any person aggrieved by any decision of the city manager or collector under this article may appeal to the city council pursuant to the procedures described in Section 2.35 of this code.

3.35.470 - Consistency with business license tax.

The city council intends this article to be enforced consistently with the balance of chapter 3.35 of this code and any rule or regulation promulgated under chapter 3.35 except as this article expressly requires to the contrary.

3.35.480 - Constitutionality and legality.

A. The tax imposed under this article is intended to be applied consistently with the United States and California Constitutions and applicable law. The tax shall not be applied to cause an undue burden upon interstate or inter-city commerce, a violation of the equal protection or due process clauses of those Constitutions, to constitute a special tax, or to violate any other provision of applicable law.

B. Notwithstanding section 3.35.410 of this article, a cannabis business may separately identify the tax on invoices, receipts and other evidences of transactions.

SECTION 2. To the extent Article XIII C of the California Constitution allows, the City Council may amend this Ordinance without a vote of the people, except that voter approval shall be required for any amendment that would increase, within the meaning of Government Code section 53750, subdivision h), the tax rate beyond the maximum rates this Ordinance authorizes.

SECTION 3. This Ordinance is exempt from the California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that its enactment would have a significant effect on the environment ( Pub. Resources Code 21065, CEQA Guidelines 15378( b)(4), 15061( b)(3) and because the Ordinance involves the approval of government revenues to fund existing services ( Pub. Resources Code 21080, subd. ( b)(8); CEQA Guidelines 15273( a)(4). It does not make any commercial activity lawful nor commit the City to fund any particular activity.

SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The People of the City of South Lake Tahoe declare that they would have adopted this Ordinance, and each section, subsection, sentence, clause, phrase or portion of it, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions might be declared invalid or unconstitutional.

SECTION 5. This ordinance shall take effect, under Elections Code sections 9217 and 9122, 10 days after certification of its approval by a majority of those voting on the measure at the November 8, 2022 general municipal election.
38 Ordinance 2022- 1164 August 9, 2022 Page 8 of 8
SECTION 6. Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law.

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

Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Date:_________
Devin Middlebrook, Mayor
Attest:

Susan Blankenship, City Clerk
First Reading: June 21, 2022
Published: July 1, 2022
Second Reading: August 9, 2022
Effective: Upon Approval By Voters
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.

Sue Blankenship ( Aug 10, 2022 11: 17 PDT)
Devin Middlebrook ( Aug 10, 2022 11: 26 PDT)
Aug 10, 2022
39 ORD 2022-1164 Amending Chapter 3.35
Final Audit Report 2022- 08-10
Created: 2022- 08-10
By: jo Mcdonough ( jmcdonough@cityofslt. us)
Status: Signed
Transaction ID: CBJCHBCAABAArir4rgDwSI5drAX6AAsOrtl_ FNxWRm- 4 ORD 2022-1164 Amending Chapter 3.35" History
Document created by jo Mcdonough ([email protected]) 2022- 08- 10 - 6:14:39 PM GMT- IP address: 128. 92.136. 146 Document emailed to Sue Blankenship ([email protected]) for signature 2022- 08- 10 - 6:15:16 PM GMT
Email viewed by Sue Blankenship ( sblankenship@cityofslt. us) 2022- 08- 10 - 6:17:06 PM GMT- IP address: 128. 92.136. 146 Document e-signed by Sue Blankenship ([email protected]) Signature Date: 2022- 08-10 - 6:17:39 PM GMT - Time Source: server- IP address: 128. 92.136. 146 Document emailed to [email protected] for signature 2022- 08- 10 - 6:17:41 PM GMT
Email viewed by [email protected]
2022- 08- 10 - 6:26:28 PM GMT- IP address: 128. 92.134. 66 Signer [email protected] entered name at signing as Devin Middlebrook 2022- 08- 10 - 6:26:46 PM GMT- IP address: 128. 92.134. 66 Document e-signed by Devin Middlebrook ([email protected]) Signature Date: 2022- 08-10 - 6:26:48 PM GMT - Time Source: server- IP address: 128. 92.134. 66 Agreement completed.
2022- 08- 10 - 6:26:48 PM GMT
40 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 4
Agenda Item: 2023 Mayor and Mayor Pro Tem Selection
Executive Summary: In accordance with City Code section 2.05.050(A) and City Council Protocol VII(1), City Council selects a Mayor and Mayor Pro Tem at its first meeting following an election of new councilmembers. The newly selected Mayor and Mayor Pro Tem will commence their terms of office immediately.

Requested Action / Suggested Motions: Pass a Motion selecting a Mayor and Mayor Pro Tem for the year 2023.

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

Heather Stroud, City Attorney
Attachments:
01-Staff Report - Mayor and Mayor Pro Tem Selection.docx 41 Council Agenda Report December 13, 2022 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: 2023 Mayor and Mayor Pro Tem Selection
Location: Citywide
Responsible Staff Member: Susan Blankenship, City Clerk (530) 542-6005 Background: In accordance with South Lake Tahoe City Code section 2.05.050(A) and City Council Protocol VII(1) Mayor and Mayor Pro Tem Term of Office, at its first meeting following election of new councilmembers, City Council shall select a Mayor and Mayor Pro Tem. The Mayor’s duties under the South Lake Tahoe City Code and City Council Protocols include presiding over and facilitating discussion at City Council meetings, signing written contracts and instruments, and acting as the City Council’s ceremonial representative at public events and functions. The Mayor Pro Tem assumes the Mayor’s responsibilities in the Mayor’s absence.

Issue and Discussion: The City Council is asked to deliberate and pass a Motion selecting a Mayor and Mayor Pro Tem for 2023.

Financial Implications: There are no financial obligations associated with this action.

Environmental Considerations: The selection of Mayor and Mayor Pro Tem is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes to the environment).

Policy Implications: The selection of a Mayor and Mayor Pro Tem conforms to City Code and Protocols.

The newly selected Mayor and Mayor Pro Tem will commence their terms of office immediately. 42 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 5
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 20 Years-Service and one for reaching 5 Years-Service. Four new employees will be introduced to City Council.

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

Susan Blankenship, City Clerk
Attachments:
01-Staff Report 12 13 2022.pdf
43 1
City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 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.

New Regular City Employees:

Development Services
Yvette Miranda - Administrative Clerk
Human Resources
Hilary Lee – Human Resources Analyst
Public Works
Francisco Rodriguez – Mechanic I
Parks and Recreation
Derek Beller – Head Pool Lifeguard

Service Awards:

Fire Department
James Drennan – 20 Years’ Service
Leslie Asbury – 20 Years’ Service

Police Department
Michael Gamberg Jr. – 5 Years’ Service
Council Agenda Report December 13, 2022 Page 1 of 1
44 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 6
Agenda Item: City Council Meeting Minutes
Executive Summary: City Council is asked to formally approve the November 1, 2022, City Council and Joint Powers Parking Financing Authority meeting minutes; and, the November 15, 2022, Regular City Council meeting minutes
Requested Action / Suggested Motions: Pass a Motion approving the November 1, 2022, City Council and Joint Powers Parking Financing Authority meeting minutes; and, the November 15, 2022, Regular City Council meeting minutes.

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

Attachments:
11 01 2022 City Council and STJPPFA Minutes.pdf
11 15 2022 CC Minutes.pdf
45 1
City of South Lake Tahoe
City Council and South Tahoe Joint Powers Parking
Financing Authority
Meeting Minutes
Tuesday, November 01, 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 9:00 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 Bass, Creegan, Friedrich and Wallace.

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

Closed Session Report, November 1, 2022
Public Employee Performance Evaluation – Government Code section 54957(b)(1) Title: City Manager
Action: No reportable action.

Follow-up to 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: A settlement was reached for payment of $75,000 in exchange for a compromise and release.

City Employee Recognition

1. City Employee Recognitions
Action: Myriam Reyes-Cocoletzi, Police Department was introduced to City Council.

In the Public Works Department, Roy Leufkens was recognized for reaching 20 Years’ Service and Garth Givens for reaching 5 Years’ Service. Jake Herminghaus, Police Department was recognized for reaching 15-Years’ Service.
46 2
11 01 2022 CC & STJPPFA Minutes
Public Communications
Public Comment was heard from the following people:

1. Bruce Fritz – neighbor dispute

2. Marc Meija – Rubicon Trail resident home neglect, rodents *provided visual presentation

3. Kenny Curtzweiler – annual Christmas Tree cutting for Heavenly Village

4. Mr. & Mrs. Minyosa – Regan Beach stair repair

5. Michael Zwijacz – airport hangar rent increase

6. David Triano – airport hangar rent increase

7. Tim Washick - airport hangar rent increase

8. Tasa Herndon - airport hangar rent increase

9. Jarod Yosheki, Aircraft Owners & Pilots Association *written comment also received

10. Seth Howard, Carpenters Union- core values apprenticeship program, local hire

11. Roger Collins - airport hangar rent increase

12. Greg Felton- airport hangar rent increase *written comment also received

13. Travis Riebesell - airport hangar rent increase

14. Dan Watson, Union carpenter – importance of local hire

15. Mike Bruno - airport hangar rent increase *written comment also received

16. Nick Speal - support for airport hangar rent increase

17. Mark Donnelly - airport hangar rent increase

18. Tom Meyer - airport hangar rent increase

19. Douglas Rice - airport hangar rent increase *written comment also received Written Comment received from the following people:

20. Evan Bevan – City Clerk Blankenship

21. Eric Bickert – airport hangar rent increase

22. James Bramson -City Clerk

23. Edith Chase – cell towers

24. Olivia Clemens – Mayor Middlebrook

25. Saundra Edwards – Councilmember Wallace

26. Danny Elfman – Councilmember Wallace

27. Paul Geske – City Clerk Blankenship

28. Stella Gibbons – Steve Teshara

29. Lionel Hutz – City Attorney

30. Udo Keppler- City corruption

31. A.E. Neuman – satirical criticism

32. Walter Pinniped – Councilmember Wallace

33. Jacob Riis – City corruption, Tahoe Chamber

34. George Shaw – Lew Feldman

35. Christopher Ranker - airport hangar rent increase

36. BenThomson - airport hangar rent increase

37. David Stites - airport hangar rent increase

38. Mark Sullivan - recall

39. Jonathan Swift – Councilmember Creegan

40. Demian Warner - airport hangar rent increase

41. Dennis Weaver – Councilmember Wallace

42. Paul Weitz – Councilmember Wallace

43. Brent Wisner – City corruption

City Commission and Student Advisory Reports

1. Milo King, South Tahoe High School Student Advisor – campus renovations, climate crew tree planting, fire drills, appreciation for City support. 47 3
11 01 2022 CC & STJPPFA Minutes
Consent Agenda
Action: Moved/Seconded: Wallace/Friedrich
Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace
Action: Passed Consent Agenda

2. City Council Meeting Minutes
Action: Passed Motion 2022-105 approving the September 20, 2022 and the October 4, 2022 Regular City Council meeting minutes.

3. Adoption of Non-Discrimination Implementation Plan Under Title VI of the Civil Rights Act of 1964
Action: Passed Resolution 2022-134 adopting the Title VI Implementation Plan conditions for receipt of federal funds from the U.S. Department of Transportation and the Federal Aviation Administration.

4. Resolution Ratifying Application for State and El Dorado County Funding for Police Boating Safety and Enforcement Program
Action: Passed Resolution 2022-135 ratifying the application for financial aid from the California State Boating and Enforcement Aid Program; authorizing the Mayor, or the Police Chief, to sign the application for financial aid, the program agreement, and each reimbursement claim; authorizing acceptance of financial aid award from the California State Boating and Enforcement Aid Program in amount up to $74,203.92 and acceptance of El Dorado County vessel property taxes in amount up to $75,110.00 for a total program amount up to $149,313.92; and authorizing budget of that amount into the current City’s budget into account #237 02110 effective July 1, 2023.

5. Appropriation of $150,000 of Airport Revenue for Airport Operations and Capital Improvement Project Transfer of $112,875 from Airport to General Fund Action: Passed Resolution 2022-136 Authorizing Revenue and Expense Budget Amendments due to the Adoption of the New Airport User Rates and Charges.

Public Comment was heard from the following person:

1. Douglas Rice, California Pilots Association

6. Fiscal Year 2021-2022 Budgeted Funds Re-Appropriation Action: Passed Motion 2022-106 to approve re-appropriation of Fiscal Year 2021-2022 budget for purchases and services with unfinished scope of work to Fiscal Year 2022-2023.

7. Amendment to Agreement with Landing Locals to Extend Term of "Lease to Locals" Rental Incentive Grant Program Through January 15, 2024 and to Add $214,000 to the Program Budget
Action: Passed Motion 2022-107 authorizing and directing the Mayor to execute C-186-2022 Amendment No. 1 to the Professional Services Agreement with Landing Locals to extend term of "Lease to Locals" Rental Incentive Grant Program through January 15, 2024, and to increase the not-to-exceed amount from $86,000 to $200,000 with a total program budget of $500,000.

Public Comment was heard from the following person:

1. Ed Mosur

8. Ordinance Increasing City Council Compensation (Second Reading) Action: Passed Ordinance 2022-1169 Increasing the City Council Compensation to $1,264.86 per month, effective January 23, 2023.

Public Comment was heard from the following person:

1. Ed Mosur
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11 01 2022 CC & STJPPFA Minutes

9. Solicitation of Applications for Citizen Appointments to City Commissions, Boards, and City Council Representative Seats
Action: Passed Motion 2022-108 directing the City Clerk to solicit for applicants to Commissions, Boards, and City Council Representative seats.

Consent Agenda - South Tahoe Joint Powers Parking Financing Authority

10. Amendment to Agreement with Walker Consultants on Parking Garage Access and Revenue Control for Additional Services
Action: Moved/Seconded: Bass/Creegan
Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace
Action: Passed STJPPFA Motion 2022- 001 approving Amendment No. 1 C-187-2022 to Professional Service Agreement with Walker Consultants for additional services related to City Parking Garage Access and Revenue Control System and Modification Project in an amount not to exceed $23,436.

Note: At this time, Councilmember Bass recused himself from Item 11 due to a financial interest in the Cannabis industry, and Item 13 due to real property interest and was absent for the remainder of the meeting.

Regular-Unfinished Business

11. Termination of Local Emergency Due to COVID-19
Action: Moved/Seconded: Friedrich/Wallace
Yes: Creegan, Friedrich, Middlebrook and Wallace
Absent (recused): Bass
Action: Passed Resolution 2022-137 proclaiming the termination of the local emergency due to COVID-19.

Public Comment was heard from the following person

1. Steve Teshara, Tahoe Chamber
Written comment was received from the following person:

2. Edgar Wayburn
Appeal Hearing

12. Appeal of Planning Commission Decision to Approve a Major Design Review, Special Use Permit, and Variance for The Landing at Tahoe Resort and Spa Cabins Addition, 4104 Lakeshore Blvd., File # 20-114
Action: Moved/Seconded: Wallace/Creegan
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Resolution 2022-138 denying the appeal and upholding the Planning Commission decision to approve a Major Design Review, Special Use Permit, and Variance for The Landing at Tahoe Resort and Spa Cabins Addition, 4104 Lakeshore Blvd., File # 20-114.

The following people addressed City Council:

1. Lou Feldman, Diamond Rock Hospitality, Applicant

2. Patricia Merrikh, Appellant *written material distributed Public Comment was heard from the following people:

3. Ed Mosur

4. Nick Speal

5. Craig Elliott

6. Steve Teshara, Tahoe Chamber
Written Comment was received from the following person:

7. Robert LaFollet
49 5
11 01 2022 CC & STJPPFA Minutes
Public Hearing

13. Formation of the Johnson Blvd Underground Utility District Note: Councilmember Friedrich recused himself due to real property interest in the area and left the meeting.

Action: Moved/Seconded: Wallace/Creegan
Yes: Creegan, Middlebrook and Wallace
Absent (recused): Bass and Friedrich
Action: Passed Resolution 2022-139 approving the formation of the Johnson Blvd Underground Utility District.

Public Comment was heard from the following people:

1. Nick Speal, Lake Tahoe Bicycle Coalition

2. Steve Teshara, Tahoe Chamber

14. Adoption of Local Hazard Mitigation Plan and Amendment to General Plan Health and Safety Element
Action: Moved/Seconded: Wallace/Friedrich
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Resolution 2022-140 adopting the 2022 Local Hazard Mitigation Plan (LHMP) update and amending the City of South Lake Tahoe General Plan Health and Safety Element Policy HS-1.9 to incorporate the LHMP by reference.

The following person addressed City Council:

1. Juliana Prosperi, AICP Project Manager
Regular-New Business

15. Presentation - Gun Laws and School Safety
Action: Received presentation. City Council provided direction to the City Manager to develop a Gun Violence Restraining Order Program and bring back a discussion next year regarding the use of Cannabis revenue funds for a gun buyback program.

16. Financial Policy - Granting Funds for Community Benefit and Enhancement Grant Program Action: Moved/Seconded: Wallace/Creegan
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Resolution 2022-141 adopting Financial Policy - Granting Funds for Community Benefit and Enhancement Grant Program.

17. City Clerk Compensation
Action: Moved/Seconded: Wallace/Friedrich
Yes: Creegan, Friedrich, Middlebrook and Wallace

Absent: Bass
Action: Passed Resolution 2022-142 establishing the City Clerk compensation at $9,156 monthly, effective back to the first full pay period after March 2, 2022.

Agenda Planning Calendar

18. Agenda Planning Calendar
Action: Received.
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11 01 2022 CC & STJPPFA Minutes
Updates and Announcements (City Attorney, City Clerk, City Manager) City Attorney:

1. Noted Rubicon Trail as a known enforcement issue
City Clerk:

1. Upcoming Election
City Manager:

1. Recreation Center Bids evaluation
2 Upcoming Community Playfield Consortium JPA meeting
Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions Councilmember Friedrich:

1. Police response to Lake 2.0 Event

2. Clarification of Measure G from City Manager and Mayor Middlebrook in the Tahoe Tribune Councilmember Wallace:

1. Stair repair at Reagan Beach (Middlebrook second)

2. School speed limit signs near Middle School (Middlebrook second)

3. Extension for increase of Airport fees – no second
Councilmember Creegan:

1. Upcoming Chamber Women and Leadership Luncheon

2. Upcoming Community Playfield Consortium JPA meeting

3. Upcoming Solid Waste JPA meeting

4. Clean Tahoe meeting update
Mayor Middlebrook:

1. Mountain Town Planning Summit attendance update

2. Sierra Blvd. mural funded by City and Arts, Culture and Tourism Commission

3. Upcoming Abandoned Vehicle JPA meeting

4. Upcoming Tahoe Prosperity Board meeting

5. Request for Arts, Culture and Tourism Commission to evaluate special event and temporary activity permit process (Friedrich second)
Adjournment
At 1:53 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 and South Tahoe
51 11 15 2022 Minutes
1 City of South Lake Tahoe
City Council
Meeting Minutes
Tuesday, November 15, 2022 at 5:30 PM
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 5:30 p.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 Bass, Creegan, Friedrich and Wallace.

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

Closed Session Report

1. Conference with Legal Counsel – Existing Litigation – Government Code section 54956.9(d)(1)
Case: Travis Cabral v. City of South Lake Tahoe, Workers’ Compensation Appeals Board Case No. ADJ15524733
Action: No reportable action

2. Conference with Labor Negotiator – Government Code section 54957.6(a) Designated representatives:

Joseph Irvin, City Manager
Olga Tikhomirova, Director of Finance
Thomas Stuart, Assistant to the City Manager II
Lindsey Baker, Assistant to the City Manager I
Ember Buckman, Human Resources Manager
Doug Johnson, Ralph Andersen & Associates
Employee Organizations:

Stationary Engineers Local 39 (General and Public Works) Stationary Engineers Local 39 (Administrative & Confidential Association) South Lake Tahoe Firemen’s Association
South Lake Tahoe Police Association (Police Employees Unit) South Lake Tahoe Police Officers Association
South Lake Tahoe Police Supervisors Association
Unrepresented Employees
Action: No reportable action
52 2
11 15 2022 Minutes
Public Communications
Public Comment was heard from the following people:

1. John Messina – snow removal procedure *written comment also received

2. Ed Mosur – Cost of Mountain Towns Summit 2030 attendance, lime scooters, PT Revolution contract
Written comment was received from the following person:

3. Elena Kangas – Village employee parking
City Commission and Student Advisory Reports
None.

Consent Agenda
Note: Councilmembers Bass and Friedrich recused themselves from Item 11 due to real property interest in the area.

Action: Moved/Seconded: Wallace/Creegan
Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace
Action: Passed Consent Agenda with noted recusals.

1. Annual Police Advisory Commission Report
Action: Received and Filed.

2. Annual Parks and Recreation Commission Report
Action: Received and Filed.

3. Annual Independent Citizens' Oversight Committee (Measure P) Report Action: Received and Filed.

4. Annual Planning Commission and Airport Land Use Commission Report Action: Received and Filed.

5. Annual Arts Culture and Tourism Commission Report
Action: Received and Filed.

6. Sale of Surplus Property
Action: Passed Resolution 2022-143 declaring certain vehicles and equipment as surplus and directing the sale of vehicles, equipment and other City assets.

7. Purchase of Caterpillar Street Roller for $74,421.07 Action: Passed Motion 2022-109 authorizing and directing the City Manager to execute a purchase order for one Caterpillar three (3) ton Street Roller from the National Auto Fleet Group via Cooperative Purchasing Contract in the amount of $74,421.07 for use in the Streets Division for Street Pavement Repair and Maintenance.

8. Ordinance Adopting 2022 California Building Standards Code (Second Reading) Action: Passed Ordinance 2022-1168 amending South Lake Tahoe City Code, Title 6, Chapter

6.15 Building Regulations, Articles I-IV, by adopting the 2022 California Building Standards Code (California Code of Regulations Title 24), including California Green Building Code, Building Code, Fire Code, and related Construction Codes.
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11 15 2022 Minutes

9. Acceptance of Congestion Mitigation and Air Quality (CMAQ) funding and Surface Transportation Block Grant (STBG) funding Totaling $146,907 for Lake Tahoe Boulevard Class I Bicycle Trail
Action: Passed Resolution 2022-144 accepting and appropriating Congestion Mitigation and Air Quality funding in the amount of $111,688 and Surface Transportation Block Grant funding in the amount of $35,219 and correcting the budget by removing $195,655 in excess Surface Transportation Block Grant funds in the Lake Tahoe Boulevard Class I Bicycle Trail Project account.

10. City Salary Table Amendments - Minimum Wage Increase Action: Passed Resolution 2022-145 to raise minimum wage for City employees to $15.50, effective January 1, 2023.

11. Grant Applications for Tahoe Metropolitan Planning Organization (TMPO) 2023 Regional Grant Program for Up to Ten Pedestrian, Bike Trail, and Electric Vehicle Charging Projects Action: Passed Resolution 2022- 146 Authorizing Submittal of Grant Applications to TMPO for federal fiscal years 2023-24 through 2026-27.

Regular-Unfinished Business

12. Increase to Airport Landing Fees
Action: Moved/Seconded: Friedrich/Creegan
Yes: Bass, Creegan, Friedrich, and Wallace
No: Middlebrook
Action: Passed Resolution 2022-147 adopting increased Airport Landing Fees for City Master Schedule of Fees and Charges for City Services 2022-2023. City Council provided direction to bring back an evaluation of fees after a year.

The following person addressed City Council:

1. Hilary Fletcher, Jviation
Public Comment was heard from the following people:

2. Seth Dallob

3. Scott Robbins

4. Ed Mosur

5. Amelia Richmond

6. Michael Golden, Mountain West Aviation *written comment also received

7. Gill Wright, California Pilots Association
Written comment was received from the following person:

8. Douglas Rice, California Pilots Association

13. Energy Goals Update
Action: City Council provided direction to the City Manager to: 1) identify cost and steps to form or join a Community Choice Aggregation Program; 2) send a letter to the California Public Utilities Commission requesting an Order Instituting Rulemaking; and, 3) release a Request for Proposal for energy services.

Public Comment was heard from the following people:

1. Ed Mosur

2. Scott Robbins
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11 15 2022 Minutes

14. Resolution of Intent to Award One-Year Electric Franchise to Liberty Utilities Action: Moved/Seconded: Bass/Wallace
Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace
Action: Passed Resolution 2022-148 of Intent to Award an Electric Franchise to Liberty Utilities for a Term of One Year. City Council provided direction to the City Manager to explore Municipalization.

Public Comment was heard from the following people:

1. Scott Robbins

2. Nick Exline
Written comment was received from the following person:

3. Sharon Yang, Liberty Utilities

15. Reject All Bids - Recreation and Aquatics Center Project Phase 2 Note: Councilmembers Creegan and Friedrich recused themselves from this item due to real property interest in the area.

Action: Moved/Seconded: Bass/Wallace
Yes: Bass, Middlebrook and Wallace
Absent (recused): Creegan and Friedrich
Action: Passed Motion 2022- 110 to reject all bids received for the Recreation and Aquatics Center Phase II Project - 15-30160018 - Phase 2 - BN-1 and direct staff to re-bid the Project at a future date.

The following person addressed City Council:

1. Afaf Ajamian, ACC Contractors *2 written comments received Public comment was heard from the following people:

2. Name not provided

3. Matt Star, Local carpenter

4. Seth Howard, Northern California Carpenters Union

5. Amelia Richmond

6. Scott Robbins

7. David Gregorich, Parks and Recreation Commission

8. Phillip Madero, Carpenter apprentice
Regular-New Business

16. South Lake Tahoe Tourism Improvement District Annual Report for Fiscal Year 2021-2022 Action: Received the FY 2021-2022 Annual Report of the South Lake Tahoe Tourism Improvement District.

The following people addressed the City Council:

1. Jerry Bindel, Chairman South Lake Tahoe Tourism District

2. Carol Chaplin and Tony Lyle, Lake Tahoe Visitors Authority Public comment was heard from the following people:

3. Scott Robbins

4. Ed Mosur

5. Amelia Richmond

17. Memorandum of Understanding with California Tahoe Conservancy on Defensible Space and Fuels Management
Action: Moved/Seconded: Bass/Wallace
Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace
Action: Passed Motion 2022-111 authorizing and directing the Mayor to execute a Memorandum of Understanding C-196-2022 with the California Tahoe Conservancy regarding defensible space and fuels management.

The following person addressed City Council:

1. Milan Yeates, California Tahoe Conservancy
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11 15 2022 Minutes
18 Creation of South Lake Tahoe Fire Department South Shore Fuels Reduction Program and Related Actions
Action: Moved/Seconded: Friedrich/Wallace
Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace
Action: Passed Resolution 2022-149 approving creation of the South Shore Fuels Reduction Program, purchase of a Chevy 5500 Chipper truck with tools and build up, Chipper, and the hiring of 4 personnel to form a Fire Department fuels reduction chipper crew in the total amount of $392,987.

Public Comment was heard from the following people:

1. Ed Mosur

2. Martin Goldberg, Lake Valley Fire Department District

3. David Gregorich

4. Samantha Sommatino, South Lake Tahoe Fire Rescue
Agenda Planning Calendar

19. Agenda Planning Calendar
Action: Received
Updates and Announcements (City Attorney, City Clerk, City Manager) City Attorney:

1. Measure T litigation update

2. Assistant City Attorney Bardzell will be sitting in for City Attorney Stroud at the December 13 meeting
City Clerk:

1. Open solicitations for Commissions and Boards
City Manager:

1. Upcoming Senior Management Workshop

Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions Councilmember Friedrich:

1. Congratulations to new electids and appreciation for Mayor Middlebrook’s service Councilmember Wallace:

1. Congratulations to new electids and appreciation for current Council Councilmember Creegan:

1. Solid Waste JPA meeting update
Councilmember Bass

1. Lake Tahoe Visitors Authority meeting

2. Thank you for voter support
Mayor Middlebrook:

1. Upcoming Abandoned Vehicle JPA meeting

2. Thank you to voters for Measure G support

Adjournment
At 9:29 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.
56 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 7
Agenda Item: Annual Reports - Tahoe Regional Planning Agency Advisory Planning Commission, and El Dorado County Community Action Council
Executive Summary: Following past practice, City Council Representatives are invited to present an annual report to City Council. El Dorado Commission on Aging representative Barbara Kauffman resigned in September 2022 and is unavailable to address Council.

Requested Action / Suggested Motions: Receive reports presented by Susan Chandler and Brian Conway.

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

Susan Blankenship, City Clerk
Attachments:
01-EDC Community Action Council Report.pdf
02-TRPA APC Report_Redacted.pdf
57 12-4-22
Community Action Council (CAC) report:

South Lake Tahoe City Council and Mayor,
I would like to thank you once again for the opportunity to serve as your representative on the Eldorado County Community Action Council (CAC).

The El Dorado CAC seeks to involve the community, including elected public officials, private sector representatives, and especially low-income residents, in assessing local needs and attacking the causes and conditions of poverty. In order to reduce poverty in the community, the Community Action Council works to better focus available local, state, federal, and private resources to assist low-income individuals and families to acquire useful skills and knowledge, to gain access to new opportunities, and to achieve economic self-sufficiency.

During 2022 the CAC held 8 meetings between January and November and will hold its 8 th meeting on
December 13th. During this year, the CAC was informed of progress the Home Energy Assistance Program, the Home Water Assistance Program, Community Services Block Grant funding, the senior Nutrition Program, the Public Housing Authority/Housing and Homeless programs, and the Senior Day Care program. We also received presentations from various community providers who are engaged in providing services and assistance to seniors and low-income families, and the homeless community and those at risk of homelessness. Additionally, we were kept abreast of the County’s progress on the Community Action Plan (CAP) and the delivery of CSBG services and support activities to increase the capacity of low-income families and individuals to become self-sufficient.

In the coming year if I would like work with you and the appropriate City staff to raise awareness of the CSBG services in the community and ensure the residents of South Lake Tahoe are able to take advantage of the programs and services available to them.

Brian Conway
58 Report to the SLT City Council - December 13, 2022
Susan Chandler - Layperson Representative to the TRPA APC Many thanks for allowing me to serve a 2-year term as a representative to the TRPA APC. It has been a wonderful learning experience. During my second year I feel that I have become a more productive member of the group, understanding the issues discussed and their importance in the Tahoe Basin.

I continue to be impressed by the professionalism of the group and their vision for a sustainable future for the basin, a vision that is shared by the city of South Lake Tahoe in its strategic plan for 2021 - 2026. Those priorities are related to housing, transportation, carbon neutrality, safety, invasive species, and forest and watershed management.

A nutshell overview of the year:

January:

1. A discussion to amend the tourist core action plan to allow for small-scale manufacturing and industrial use.

2. Certification of the final Environmental Impact Statement for the Tahoe Keys Lagoons Aquatic Weed Controlled Methods Test Project. Joanne Marchetta gave an overview of the history and the financial assistance of the TRPA. Dennis Zabaglo gave an overview of the process to allow the project to proceed.

February:

The TRPA Forest Health and Wildfire Committee gave an overview of their history and efforts in fighting fires. They recommended allowing mechanical equipment to operate on slopes greater that 30 degrees. They also presented an overview of their water erosion protection efforts and their Tahoe Basin Forest Action Plan.

March:

1. Shannon Friedman presented the plan to reconfigure the golf course and to restore the Upper Truckee River, explain that the project is driven by river restoration to reduce sediment flow into the lake and in order for that to be successful the golf course will be to be adjusted. In the process they will upgrade the golf course irrigation systems that will reduce water use by 30%.

2. Bijou/ Al Tahoe Community Plan - 56-Acre Plan. We had a discussion and vote to allow the height of the aquatic center to exceed current standards.

3. Overview of the Threshold Standards work, which needs to be, reviewed every 4 years and the need to elect 3 members from the APC to participate in the review process. I am proud that I was one of the 3 members to be elected to participate on this committee, along with Judith Carr and Jason Drew.

April:

Meeting cancelled
May:

1. Access to moorings for non-littoral residences in HOAs around the lake

2. Tahoe Keys Controlled methods test update. The need to have certain conditions met in order to stat the test on May 23rd.

3. John Marshall presented updates on the litigation about the cell tower on Ski Run Blvd and road access to Round Hill Pines

4. Douglas county gave an update of plans for a basin wide heliport for emergency uses
59 June, July and August:

APC Meetings cancelled
July 13 - The first meeting of the Threshold Standards Working group Dan Segan presented an overview of the process and outline for the standards.

The Threshold Standards Working Group delved into the standard related to Forest health.

August 10 - the second meeting of the TSWG. A discussion on air quality occurred. This discussion was mainly centered on whether Tahoe Basin should come up with its own standards or use other state and federal standards if they are appropriate.

September:

1. An overview of the Tahoe Keys Controlled Method Test was presented.

2. Boat inspection and education of boat owners was discussed

3. Taylor-Tallac project was updated

4. Public Safety Sites around the lake were proposed for around the lake. Options include Ski Run Marina, Richardson’s, Tahoe State Recreation area in Tahoe City and Zephyr Cove
October:

A field trip to the golf course to observe project plans and forest health (Unfortunately, due to the health of my husband I had to miss this meeting) October Threshold Working Group:

An update on Forest Health was presented and we took an initial look at the Watersheds and Water quality standards.

November and December:

APC Meetings cancelled
Threshold standards working group meet on December 12th I would like to thank John, Devin, Cody and Hilary for their support during the past 2 years. They were always available when I needed advice or background information.

I have submitted an application to continue with this commission for the next 2 years. I hope that you will consider re-appointing me to this position.

Respectfully submitted,
Susan Chandler
60 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 8
Agenda Item: Excusing City Attorney from City Council Meeting Executive Summary: The City Attorney is required to attend all City Council meetings unless excused by Council under Section 2.20.050(E) of the South Lake Tahoe City Code. The City Attorney is required to attend oral argument in South Lake Tahoe Property Owners Group v. City of South Lake Tahoe (the Measure T case), which is in Sacramento at the same time as the City Council meeting on December 13, and therefore requests to be excused from this meeting. Assistant City Attorney Daniel Bardzell will fill in for the City Attorney at the City Council meeting.

Requested Action / Suggested Motions: Pass a Motion excusing the City Attorney from the City Council meeting on December 13, 2022
Responsible Staff Member: Heather Stroud, City Attorney Responsible Staff Member: Heather Stroud, City Attorney (530) 542-6046 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Attachments:
01-Staff Report.docx
61 Council Agenda Report- December 13, 2022 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: Excusing City Attorney from City Council Meeting Location: Citywide
Responsible Staff Member: Heather L. Stroud (530) 542-6046 Background:

Under South Lake Tahoe City Code section 2.20.050(E), the City Attorney is required to “[a]ttend all city council meetings in their entirety unless excused by the council, for the purpose of giving the city council any legal advice requested by its members.” Issue and Discussion:

The Third Appellate District Court of Appeal, located in Sacramento, issued a notice of oral argument for South Lake Tahoe Property Owners Group v. City of South Lake Tahoe, Case No. 093603, scheduled for December 13, 2022, at 9:30am. Oral arguments are held in person absent court permission to appear by telephone, which is granted only upon a showing of exceptional good cause. The City Attorney has handled this case in-house since 2018 and believes it to be in the City’s best interest to appear in person for oral argument. Assistant City Attorney Daniel Bardzell will fill in for the City Attorney at the City Council meeting being held at the same time.

Financial Implications:

None.

Environmental Considerations:

This action is not a project requiring environmental review under the California Environmental Quality Act (CEQA) section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes in the environment).

Policy Implications:

None.
62 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 9
Agenda Item: Investment Portfolio Report - September 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 September 30, 2022, the City's total cash and investment balances across all funds is $99.3 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 Sep 22.docx
02-Operations Cash 09 30 2022.pdf
03-Fiscal Agent 09 30 2022.pdf
04-Graph 09 30 2022.pdf
05-Cash September 2022.pdf
63 Council Agenda Report December 13, 2022 Page | 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: Investment Portfolio Report as of September 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 September 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 $99,344,685.

Cash available for operations is $84,838,478. This includes Cash in Bank of $1,279,075 with the remaining amount in various investments diversified in accordance with the City’s adopted Investment Policy. The total portfolio yield is 1.64%. 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 $14,506,207. 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 $ 11,154,575 $ 1,103,810 $ 10,050,765
Special Revenue $ 24,646,226 $ 24,646,226 -
General Fund $ 27,249,795 $ 27,249,795 -
Internal Service $ 7,308,874 $ 7,308,874 -
Debt Service $ 1,349,119 $(269,206) $1,618,325
Enterprise $ 10,033,842 $ 7,196,725 $ 2,837,117
CIP $ 17,602,254 $ 17,602,254 -
Grand Total $ 99,344,685 $ 84,838,478 $ 14,506,207
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. 64 CITY OF SOUTH LAKE TAHOE

OPERATIONS CASH INVESTMENT PORTFOLIO REPORT
AS OF SEPTEMBER 30, 2022

INVESTMENT TYPE ISSUER PAR VALUE
Local Agency Investment Fund State Treasurer 71,552,653 $ 70,176,049 $ 1.51% 84.3% 1.28% N/AFederal Home Loan Mtg Corp Government Agency 1,000,000 $ 998,981 $ 2.10% 1.18% 0.02% 10/26/2022Federal Home Loan Bank Government Agency 1,000,000 $ 884,189 $ 1.00% 1.18% 0.01% 5/27/2026Federal Farm Credit Banks Government Agency 1,000,000 $ 889,793 $ 1.50% 1.18% 0.02% 12/14/2026Federal Farm Credit Banks Government Agency 1,000,000 $ 961,059 $ 1.67% 1.18% 0.02% 3/8/2024Fed. Home Loan Bank Government Agency 1,000,000 $ 928,146 $ 1.75% 1.18% 0.02% 3/29/2027Federal Farm Credit Banks Government Agency 1,000,000 $ 964,819 $ 3.11% 1.18% 0.04% 4/13/2026Fed. Home Loan Banks Government Agency 2,000,000 $ 1,947,762 $ 2.63% 2.36% 0.06% 2/26/2024Fed. Home Loan Banks Government Agency 1,000,000 $ 973,123 $ 2.50% 1.18% 0.03% 6/20/2025Fed. Home Loan Banks Government Agency 1,000,000 $ 963,019 $ 4.10% 1.18% 0.05% 6/30/2027Fed. Home Loan Banks Government Agency 1,000,000 $ 1,001,308 $ 5.00% 1.18% 0.06% 9/30/2027Certificate of Deposit Barclays bank/Delaware 250,000 $ 245,190 $ 2.85% 0.29% 0.01% 6/3/2024Certificate of Deposit Capital One NA 250,000 $ 242,838 $ 3.10% 0.29% 0.01% 6/2/2025Certificate of Deposit Capital One Bank (USA) NA 250,000 $ 240,560 $ 3.15% 0.29% 0.01% 6/2/2026Certificate of Deposit State Bank of India 250,000 $ 240,269 $ 3.30% 0.29% 0.01% 6/1/2027Cash in Bank 1,279,075 $ 1,279,075 $ N/A 1.51% 0.00%Petty Cash 6,750 $ 6,750 $ N/A 0.01% 0.00% TOTAL 84,838,478 $ 82,942,929 $ 1.64% (Total Portfolio Yield) The Investment porfolio at September 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
65 CITY OF SOUTH LAKE TAHOE INVESTMENT REPORT

CASH AND INVESTMENTS HELD WITH FISCAL AGENTS
AS OF SEPTEMBER 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 625 625 2.49% N/A Revenue Blackrock Treasury Trust Bank of New York Mellon 97,402 97,402 2.49% N/A Revenue Blackrock Treasury Trust Bank of New York Mellon 1,170,000 1,170,000 2.49% N/A Reserve Assured Guaranty Municipal Bank of New York Mellon - 2 0.00% N/ASo Tahoe JPFA Parking Rev Bonds 2013 Debt Service Reserve Blackrock Treasury Trust Bank of New York Mellon 574,518 574,518 2.49% N/A Refunding Account Blackrock Treasury Trust Bank of New York Mellon 74 74 2.48% N/A Debt Service Account Blackrock Treasury Trust Bank of New York Mellon 331,826 331,826 2.49% N/A Supplemental Reserve Blackrock Treasury Trust Bank of New York Mellon 1,930,699 1,930,699 2.49% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 0 0 2.38% N/ASo Tahoe JPFA Ref Rev Bonds 2014 A, 2015 A, 2017 A Revenue Fund Blackrock Treasury Trust Bank of New York Mellon 362 363 2.48% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 1,240,828 1,240,828 2.49% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 2,685,000 2,685,000 2.49% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 150 150 2.49% N/A So Tahoe JPFA (RPA 1) Reserve Blackrock Treasury Trust Bank of New York Mellon 5,131,738 5,131,738 2.49% N/A Successor Agency to the So Tahoe RDA, CFD 2001-1, Refdg Series 2015 Special Tax Blackrock Treasury Trust Bank of New York Mellon 434,567 434,567 2.49% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 11,827 11,827 2.49% N/A Reserve Blackrock Treasury Trust Bank of New York Mellon 546,054 546,054 2.49% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 238 238 2.49% N/ACity of South Lake Tahoe 2014 Pension Obligation Bonds Interest Blackrock Treasury Trust Bank of New York Mellon 932 932 2.49% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 109 109 2.49% N/A City of So Lake Tahoe 2012 COPS, Road Improvmt. Lease Payment Fund First American Govt Obligation Fund/Money Mkt US Bank 13,407 13,407 2.31% N/A Reserve Account First American Govt Obligation Fund/Money Mkt US Bank 335,848 335,848 2.31% N/A TOTAL 14,506,205 14,506,208
Valuation is based upon the valuations contained in the monthly statements provided by the trust departments of the fiscal agents. 66 LAIF
86%
Medium Term
Certificate of Dep
1%
Government Agency
13%
City of South Lake Tahoe
Operations Cash Investment Portfolio
Market Value as September 30, 2022
67 CITY OF SOUTH LAKE TAHOE

CASH REPORT
SEPTEMBER 30, 2022

FUND FUND NAME OPERATIONS CASH FISCAL AGENT TOTAL CASH TOTAL # BALANCE CASH BALANCE BALANCE OPERATIONS FISCAL AGENT CASH BALANCE 100 General Fund 26,871,799.92 $26,871,799.92
102 Measure S - Sales Tax 377,995.08 $377,995.08 $27,249,795 $0 $27,249,795 201 Gas Tax 2105 564,527.84 $564,527.84
207 Snow Removal 465,837.84 $465,837.84
208 Snow Removal - Equipment Replac 801,540.06 $801,540.06 210 Vehicle Replacement 202,058.81 $202,058.81
211 Police Vehicle Replacement 260,943.58 $260,943.58
213 Fire Vehicle Replacement (9,071.77) ($9,071.77)
216 Transit Center 56,447.99 $56,447.99
217 Arts Program 24,159.82 $24,159.82
218 VHR Program 166,594.60 $166,594.60
220 Parks and Recreation 11,080,380.31 $11,080,380.31
221 Ice Arena 84,007.22 $84,007.22
222 Fire Safety Sales Tax 429,774.89 $429,774.89
223 Cannabis Program 1,564,565.42 $1,564,565.42
224 PEG Programming 220,630.77 $220,630.77
225 Tobacco Law Enforcement Grant (76,879.84) ($76,879.84) 229 DUI/Traffic Safety Grant (9,848.23) ($9,848.23)
230 Local Law Enforcement 1,994.32 $1,994.32
231 AB3229 COPS 35,466.62 $35,466.62
232 Safety Sales Tax 488,096.30 $488,096.30
233 Forfeiture - State Fund 37,568.73 $37,568.73
235 Forfeiture - Justice Fund 12,740.81 $12,740.81
236 EMS - JPA 294,654.11 $294,654.11
237 Boat Patrol - Grant (58,191.64) ($58,191.64)
238 Domestic Violence (DVRT) Grant 38,773.94 $38,773.94 240 Solid Waste AB939 33,304.28 $33,304.28
241 Clean Community 16,178.43 $16,178.43
242 Vehicle Abatement 131,136.15 $131,136.15
243 Nuisance Abatement 173,135.33 $173,135.33
244 Solid Waste JPA 1,184,520.74 $1,184,520.74
245 Storm Water Mgmt/Sweeping 94,616.04 $94,616.04
250 Hsng&ED - Work Force Housing 601,477.68 $601,477.68 251 Hsng & Ed - Home 1,016,424.60 $1,016,424.60
252 Hsng & Ed - CDBG 130,141.12 $130,141.12
253 Hsng & Ed - Administration 183,300.50 $183,300.50
255 CDBG Program Income Loans 97,939.80 $97,939.80
256 CDBG Economic Development (38,991.78) ($38,991.78)
257 CDBG - ED Program Income 238.72 $238.72
258 Calhome Loan Repayments 129,203.76 $129,203.76
259 First Time Homebuyers Rev Loan 9,623.65 $9,623.65
263 TOT Revenue Fund 1,566,560.47 $1,566,560.47
264 Local Fiscal Recovery (ARPA) 0.00 $0.00
270 General Plan/Community Plan 560,982.30 $560,982.30
271 Building Permit Fees 1,274,105.01 $1,274,105.01
280 Ski Run Business Improvement 3,693.83 $3,693.83
281 Measure S Maintenance Fund 72,582.37 $72,582.37
284 Measure S City Maintenance 386,594.47 $386,594.47
285 Tourism Improvement District (TID) 342,685.87 $342,685.87 $24,646,226 $0 $24,646,226 301 City CIP 16,415,016.09 $16,415,016.09
303 City CIP - Reg.Surf.Transp.Progr 194,372.95 $194,372.95 306 Rehab Water Quality Projects 2,823.76 $2,823.76
310 Long term Capital Replacement 580,818.88 $580,818.88 320 Housing - CIP Projects 409,222.81 $409,222.81 $17,602,254 $0 $17,602,254 401 City Debt Service (269,206.30) 1,618,324.98 $1,349,118.68 ($269,206) $1,618,325 $1,349,119 501 Airport 2,815,271.25 $2,815,271.25
510 Parking Management Bellamy 300,788.66 $300,788.66
520 Parking Garage 3,529,080.06 2,837,117.13 $6,366,197.19 550 Transit - Stage 551,584.11 $551,584.11 $7,196,724 $2,837,117 $10,033,841 601 Self Insurance - Health, Vision, Den 598,956.31 $598,956.31 602 Self Insurance - Workers Comp 5,447,025.01 $5,447,025.01 604 Payroll 1,246,563.48 $1,246,563.48
605 Health Insurance Savings 16,329.63 $16,329.63 $7,308,874 $0 $7,308,874 701 Trust 917.00 $917.00
707 Park Avenue CFD Fund 800,768.47 992,686.93 $1,793,455.40 711 Bijou ECP CFD 165,414.80 $165,414.80
712 Harrison Avenue CFD 123,997.01 $123,997.01
725 RD Obligation Retirement Fund 4,724.76 9,058,078.48 $9,062,803.24 751 Special Assessment District 4,572.00 $4,572.00
762 Tahoe Transportation Authority 3,416.00 $3,416.00 $1,103,810 $10,050,765 $11,154,575 Total Cash and Investments $84,838,477.58 $14,506,207.52 $99,344,685.10 $84,838,478 $14,506,208 $99,344,685

SUBTOTAL BY CATEGORY
68 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 10
Agenda Item: 2022 Reimbursement Agreement with Southwest Gas Executive Summary: The Public Works Department recommends entering into a reimbursement agreement with Southwest Gas where the City will waive certain pavement restoration requirements for Southwest Gas construction projects in exchange for funding the City's paving account at a rate of $5 per square foot for restoration that would have otherwise been required. This agreement will help partially fund the City's annual paving program for the 2023 construction season.

Requested Action / Suggested Motions: Pass a Resolution authorizing the execution of a Reimbursement Agreement with Southwest Gas and amending the Street Overlay Program account by appropriating $1,712,035 of in lieu paving funds from Southwest Gas for the purpose of funding the 2023 Road Rehabilitation Project.

Responsible Staff Members: Mark Frisina, Resident Engineer, and Stan Hill, Engineering Division Manager
Responsible Staff Member: Mark Frisina, Resident Engineer, (530) 307-9607 Stan Hill, Engineering Division Manager, (530) 542-6039 Reviewed and Approved By:

Anush Nejad, Public Works Director
Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Southwest Gas Reimbursement Agreement.docx 02-Resolution.docx
03-Reimbursement Agreement (Exh. A to Resolution).docx
69 Council Agenda Report December 13, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: Reimbursement Agreement with Southwest Gas
Location: Citywide
Responsible Staff Member: Mark Frisina, Resident Engineer, (530) 307-9607 Background: In 2019, Southwest Gas Corporation (SWG) began its Vintage Steel Pipe (VSP) Replacement Project. SWG plans to replace all the steel gas lines within the City of South Lake Tahoe that were installed before 1970. These pipes no longer meet the current code; therefore, Southwest Gas plans to replace them over the next 7-10 years. The extent of gas lines installed prior to 1970 is extensive and runs throughout approximately 2/3 of City streets. Replacement of this pipe will require Southwest Gas to dig long trenches in most of the City’s right of way, significantly impacting the city streets as well as installing new gas service lines to most of the older homes within the city. This will have a significant impact on the city streets and will require repaving a majority of the streets.

The Public Works Department oversees Southwest Gas’s construction within the City's public streets rightsof-way and requires them to meet the City’s Public Improvement and Engineering Standards (PIES) for all improvements. Standard Details 60 and 62 from the PIES require that any utility trench over 250 feet in length, or when 4 or more service lateral trenches are dug within a city block, the utility company is required to repave a full traffic lane through the affected area.

Paving roads is outside SWG’s area of expertise, as well as very costly for them to implement. Therefore, they are interested in an alternative to the City’s paving requirements. A solution agreeable to SWG and the City is for SWG to pay an in-lieu fee to the City instead of using their contractor to pave City streets. The inlieu pavement fees will accumulate in the City’s Paving Fund for the annual Pavement Rehabilitation Project to pave selected streets within the City.

The City implemented a similar agreement with SWG for 2019, 2020, and 2021 construction seasons. These past agreements have supplemented the City paving budget with $3,189,940 of funds to date, which has been used each year as a part of the City’s annual paving project.

Issue and Discussion: The Public Works Department proposes an agreement with SWG that would permit them to deposit funds into the City’s Paving Fund in exchange for not being required to meet certain paving requirements from Standard Details 60 and 62 of the City’s PIES. The Public Works Department sees the following advantages to approving such an agreement:

1. Economy of Scale – Large-scale paving projects administered by the City will likely result in a greater volume of paving for a more competitive price.

2. Selection of Streets to be Paved - The City will determine which roads are in the greatest need of repaving and develop the annual Pavement Rehabilitation Project accordingly.

3. Selection of Pavement Treatments - The City will decide which pavement treatment is best suited for each roadway (i.e. cape seal, micro-pave, crack seal, or grind and overlay). 70 Council Agenda Report December 13, 2022 Page 2 of 2

4. Quality of Pavement Work - The roads reconstructed as a part of the City’s annual Pavement Rehabilitation Project will likely be of higher quality and last longer due to the materials the City specifies and construction oversite provided by the City.

Southwest Gas is also interested in entering into the proposed agreement for the following reasons:

1. Allows SWG to concentrate on gas line replacements, rather than paving streets: paving is not their area of expertise.

2. Allows SWG to speed up construction while also causing less disturbance in the neighborhoods they’re working in.

3. Greater efficiency results in cost savings for utility customers.

Financial Implications: This agreement stipulates that SWG will pay the City $5 per square foot for the roadway paving they are not required to place as a part of their VSP replacement program. During the 2022 construction season, 342,407 square feet of asphalt were not paved that would have otherwise been required to be paved. The proposed agreement will result in $1,712,035 of in-lieu paving expenses that SWG will deposit into the City Paving Fund (301-50005-48030).

If this agreement is not approved, the Public Works Department will require SWG to repave the sections of the road they worked on during 2022 and there will be no financial implications to the City.

Environmental Considerations: Approving this reimbursement agreement is not a project subject to environmental review under California Environmental Quality Act (CEQA) Guidelines section 15378(b)(4) because it is the creation of a government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

Policy Implications: This agreement would require the City Council to waive the overlay paving requirements outlined in the City PIES Standard Drawings 60 and 62. This is a one-time waiver for SWG that only applies to the 2022 construction season.

A similar agreement is anticipated for each year SWG works on its VSP replacement program. Receipt of a payment in lieu of SWG pavement grind and overlay work will provide a stream of revenue for the City’s Paving Fund Public Works estimates that over the next 7-10 years, SWG will likely need to invest approximately $20,000,000 to asphalt paving to complete their VSP replacement project. If similar agreements are approved in future years, the in-lieu payment fee approach will help supplement the City Paving Program.
71 Resolution 2022-XXX December 13, 2022 Page 1 of 2
Resolution 2022-XXX
Adopted by the City of South Lake Tahoe
City Council
December 13, 2022
Amending the FY 22-23 Street Overlay Program Fund Budget

BACKGROUND
A. In the Spring of 2019, Southwest Gas Corporation (SWG) commenced work on an annual project to repair and replace vintage steel pipe gas lines which are located under certain streets within the City. The 2022 Vintage Steel Pipe Replacement Project was located on Bill Avenue, Paradise Avenue, Osgood Avenue, Forest Avenue, Alder Avenue, Aspen Avenue, Larch Avenue, Birch Avenue, Tamarack Avenue, Spruce Avenue, Willow Avenue, Wildwood Avenue, Pine Grove Avenue, and Aspenwald Road of South Lake Tahoe.

B. In accordance with a Franchise Agreement between the City and SWG dated August 30, 2017, SWG performs gas main and service line replacements and repairs that include cutting or grinding the pavement surface to allow trenching and subsurface excavations within the City’s public rights-of-way.

C. As provided in the Franchise Agreement, after making gas line repairs, SWG is required to repair the section of the road impacted by the gas line repairs in accordance with the City’s Public Improvements and Engineering Standards (PIES).

D. The City’s PIES requires full-width traffic lane pavement surface grinding and asphalt concrete overlay, two inches in depth where trenching work extends 250 linear feet or more.

In addition, transverse pavement trenching for four or more road cuts within 250 lineal feet of roadway also requires full-width traffic lane(s) of pavement surface grinding and asphalt concrete overlay, two inches thick.

E. For the purpose of the 2022 Vintage Steel Pipe Replacement Project, SWG prefers to limit the extent of pavement repair work performed by SWG and SWG prefers to reimburse the City for the cost of pavement grinding and overlay of City streets required in accordance with the City’s PIES.

F. For the purpose of the 2022 Vintage Steel Pipe Replacement Project, the City prefers receipt of payment from SWG in lieu of SWG performing the standard PIES required pavement grinding and overlay work.

G. The City has an annual pavement rehabilitation program that may involve grinding or pulverizing the full street width of existing pavement surfaces and paving streets with asphalt concrete pavement.

H. The City routinely enters into public works contracts to maintain City roads and may achieve economies of scale by including more road sections in future contracts. 72 Resolution 2022-XXX December 13, 2022 Page 2 of 2
I. The City and SWG desire to enter into this Reimbursement Agreement to achieve efficiencies and better service for their respective customers.

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

1. Authorizes and directs the Mayor to execute the agreement with Southwest Gas attached hereto as Exhibit A; and

2. Amends the Street Overlay Program account (301-50005) by appropriating $1,712,035 in fee in lieu of paving funds from Southwest Gas into revenue code 34415 and expense code 48030 for the purpose of funding the Road Rehabilitation Projects.

Adopted by the City of South Lake Tahoe City Council on December 13, 2022, by the following vote:

Yes:

No:

Absent:

Abstain:
__________________ Date:_____________
TBD, 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.
73 CITY OF SOUTH LAKE TAHOE

AGREEMENT

FOR ROAD REPAIRS
This Agreement is made and entered into as of the 13th day of December 2022 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and Southwest Gas Corporation, a California corporation (“SWG”).

RECITALS
A. In the Spring 2022, SWG commenced a project to repair and replace vintage steel gas lines which are located under certain streets within the City. The 2022 gas line repair and replacement project was located within the Ski Run Blvd neighborhoods in the City of South Lake Tahoe in accordance with plans and the schedule attached hereto as Exhibit “A” (“2022 Vintage Steel Pipe Replacement Project”)
B. In accordance with a Franchise Agreement between the City and SWG dated August 30, 2017, SWG performs gas main and service line replacements and repairs that include cutting or grinding the pavement surface to allow trenching and subsurface excavations within the City’s public rights-ofway.

C. As provided in the Franchise Agreement, after making gas line repairs, SWG is required to repair the section of the road impacted by the gas line repairs in accordance with the City’s Public Improvements and Engineering Standards (PIES).

D. The City’s PIES requires full-width traffic lane pavement surface grinding and asphalt concrete overlay, two inches in depth where trenching work extends 250 linear feet or more. In addition, transverse pavement trenching in excess of four or more road cuts within 250 lineal feet of roadway also require fullwidth traffic lane(s) of pavement surface grinding and asphalt concrete overlay, two inches in depth.

E. For the purpose of the 2022 Vintage Steel Pipe Replacement Project, SWG prefers to limit the extent of pavement repair work performed by SWG and SWG prefers to compensate the City in the amount provided in Exhibit B for the cost of pavement grinding and overlay of City streets required in accordance with the City’s PIES.
74 F. For the purpose of the 2022 Vintage Steel Pipe Replacement Project, the City prefers receipt of payment from SWG in lieu of SWG performing the standard PIES required pavement grinding and overlay work.

G. The City has an annual pavement rehabilitation program that may involve grinding or pulverizing the full street width of existing pavement surfaces, paving streets with asphalt concrete pavement, or construction of minor storm drain and ancillary roadway improvements.

H. The City routinely enters into public works contracts to maintain City roads and may achieve economies of scale by including more road sections in future contracts.

I. The parties desire to enter into this Reimbursement Agreement to achieve efficiencies and better service for their respective customers.

AGREEMENT

1. SWG Obligations.
a. During 2022, SWG implemented its gas line repair and replacement project in multiple neighborhoods throughout the City of South Lake Tahoe in accordance with plans and the schedule attached hereto as Exhibit “A” and referred to herein as the 2022 Vintage Steel Pipe Replacement Project.
b. Instead of repaving the City-maintained roads following the 2022 Vintage Steel Pipe Replacement Project, SWG agrees to make permanent trench repairs and compensate the City, in the amount provided in Exhibit B, to repave the sections of City-maintained roads SWG would have repaved under the PIES (“Repavement Work”). For the purposes of this Agreement, the permanent trench repairs performed by SWG are defined as repairing the pavement the width of the trench (minimum of 4 ft) with 4” minimum compacted AC or match existing AC depth.
c. SWG shall pay City for Repavement Work in the amount provided in Exhibit B. SWG’s payment shall be made in a lump sum amount within 30 days of receiving a written payment request from the City.

2. City Obligations.
a. All Repavement work performed by the City shall be completed under a public works contract for road repair and be awarded 75 through a competitive bid process in accordance with California Public Contract Code, section 22030 et seq. City shall pay prevailing wage for the Repavement Work in accordance with California Labor Code section 1770 et seq. City will complete the paving of the Repavement Work at the appropriate time, in its sole discretion, based on the City’s annual paving needs and priorities.
b. City shall send to SWG a written reimbursement request. c. City shall use the funds received for the Repavement Work towards repaving roads within the City of South Lake Tahoe, including minor storm drain and ancillary roadway improvements.

3. Term/Time of Performance. This Agreement shall be effective as of the date written above, and shall terminate six months after the effective date, or sooner if full reimbursement has been made in accordance with the provisions of this Agreement or this Agreement is terminated in accordance with Section 4.

4. Termination. This Agreement may be terminated by City or SWG for cause or without cause upon thirty days (30) days written notice of termination. Upon termination, City shall be entitled to reimbursement for Repavement Work performed up to the effective date of termination.

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

5. Indemnity. SWG shall defend, indemnify, and hold the City, its officers, officials, employees, and volunteers harmless against and from any and all claims, suits, losses, damages, and liability for damages of every name, kind, and description, including attorney’s fees and costs incurred, brought for, on or account of, injuries or death to any person, including but not limited to workers, City employees, and the public, or damage to property, or any economic or consequential losses, which are claimed to or in any way arise out of SWG’s performance under this Agreement, except for the sole or active negligence of the City, its officers and employees, or as expressly prescribed by statute.

This duty of SWG to indemnify and save City harmless includes the duties to defend set forth in California Civil Code section 2778.

City shall defend, indemnify, and hold SWG, its officers, officials, employees, and volunteers harmless against and from any and all claims, suits, losses, damages, and liability for damages of every name, kind, and description, 76 including attorney’s fees and costs incurred, brought for, on or account of, injuries or death to any person, including but not limited to workers, SWG employees, and the public, or damage to property, or any economic or consequential losses, which are claimed to or in any way arise out of City’s performance under this Agreement, except for the sole or active negligence of SWG, its officers and employees, or as expressly prescribed by statute. This duty of City to indemnify and save SWG harmless includes the duties to defend set forth in California Civil Code section 2778.

6. Insurance Requirements. City and SWG attest to having adequate insurance for General Liability and Automobile Liability, and in accordance with California Labor Code section 3700 for Workers’ Compensation and shall provide evidence of insurance if requested to do so by the other party.

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

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

If to City: Public Works Director
City of South Lake Tahoe
1740 D Street
South Lake Tahoe, CA 96150
Provide a copy to: City Attorney’s Office
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 300
South Lake Tahoe, CA 96150
If to SWG: Supervisor/Engineering
Southwest Gas Corporation
P.O. Box 1190
Carson City, NV 89701

8. Assignment. Neither party shall assign this Agreement or any part thereof of any monies due hereunder.

9. No Third Party Beneficiaries. This Agreement shall not be deemed to confer any rights upon any individual or entity which is not a party hereto, and the Parties hereto expressly disclaim any such third-party benefit. 77 10.Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

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

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

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

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

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

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

17.Authority to Enter Agreement. The Parties have all requisite power and authority to conduct their business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
78 CITY OF SOUTH LAKE TAHOE: SOUTHWEST GAS CORPORATION:

By___________________________ By ________________________________ Mayor Brad Harris, VP/Northern Nevada Division

APPROVED AS TO FORM:

By____________________________
Heather Stroud, City Attorney
ATTEST:

By____________________________
Susan Blankenship, City Clerk
Attachments:

Exhibit A – Plans and Schedule
Exhibit B – Cost Estimate for Repavement Work
79 EXHIBIT A
PLANS
80 81

EXHIBIT B

COST ESTIMATE FOR REPAVEMENT WORK
SWG Work
Order
Area of Work Square footage of
paving required
4333154 Bill Ave – Entire Length 17,400
4333154 Paradise Ave - Bowers Ave to Ski Run Blvd 8,246 4333154 Osgood Ave - East end of stub to 4,395
4333154 Paradise Ave - Ski Run Blvd to Sonora Ave 9,210 4333154 Paradise Ave - Sonora Ave to Wildwood Ave 18,908 4333154 Osgood Ave - Wildwood Ave to Pine Grove
Ave 10,256
4333154 Forest Ave - Aspenwald Rd to Pine Grove Ave 3,471 4333154 Forest Ave - Pine Grove Ave to Wildwood Ave 7,728 4333154 Forest Ave - Wildwood Ave to Sonora Ave 8,554
4333154 Forest Ave - Sonora Ave to Ski Run Blvd 16,276
4333154 Forest Ave - Ski Run Blvd to Bowers Ave 15,300
4333154 Alder Ave - Ski Run Blvd to Sonora Ave 17,500
4333154 Alder Ave - Sonora Ave to Wildwood Ave 9,156
4333154 Alder Ave - Wildwood Ave to Pine Grove Ave 16,550 4333154 Aspen Ave - Wildwood Ave to Aspenwald Rd 14,700 4333154 Aspen Ave - Wildwood Ave to Sonora Ave 16,250
4333154 Aspen Ave - Sonora Ave to Ski Run Blvd 16,416
4333154 Larch Ave - Sonora Ave to Ski Run Blvd 15,863
4333154 Birch Ave - Ski Run Blvd to Sonora Ave 16,675
4333154 Birch Ave - Sonora Ave to Wildwood Ave 16,659
4333154 Tamarack Ave - Ski Run Blvd to Sonora Ave 17,920 4333154 Spruce Ave - Ski Run Blvd to Sonora Ave 9,528
4333154 WIllow Ave - Ski Run Blvd to Pioneer Trail 4,037 4333154 Wildwood Ave - Osgood Ave to Birch Ave 27,880
4333154 Pine Grove Ave - Paradise Ave to Forest Ave 1,269 4333154 Pine Grove Ave - Forest Ave to Alder Ave 2,952
4333154 Forest Ave - End to Aspenwald Rd 1,932
4333154 Aspenwald Rd - Forest Ave to Aspen Ave 14,400
4333154 Aspenwald Rd - Aspenwald Rd to Pioneer Trail 2,976 Total 342,407
The City performed an economic analysis and determined that the cost of paving has not increased since the last reimbursement agreement was executed, so the City will not require a CPI adjustment to the agreed-upon price 82 per square foot. The payment rate of $5 per square foot for paving will be used.

The CPI may be adjusted in 2024 as warranted.

City shall contact SWG if the square footage of paving required is different from the 342,407 square feet calculated above.

Estimated total payment $1,712,035.00.
83 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 11
Agenda Item: Purchase of a LeeBoy 7000C Paver from Nixon-Egli Equipment Co. for $180.346.46 Executive Summary: City Council formally adopted the FY 22-23 annual budget at the August 23, 2022 meeting. Within the budget adoption, City Council appropriated funds to purchase several vehicles and pieces of equipment for the Department of Public Works and Streets Division. The proposed purchase is for a full-size paver for street repair and maintenance. The proposed vehicle is sourced through Sourcewell, a cooperative purchasing agreement.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the City Manager to execute a purchase order for one LeeBoy 7000C Paver from Nixon-Egli Equipment Co. in the amount of $180,346.46 for use in the Streets Division for Street Pavement Repair and Maintenance.

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

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01 - Staff Report - Paver.docx
02 - LeeBoy 7000C Paver.pdf
03-Nixon Egli Quote.pdf
04 - Sourcewell LeeBoy Contract.pdf
84 Council Agenda Report December 13, 2022 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: Purchase of a Paver For Street Division
Location: Citywide
Responsible Staff Member: Anush Nejad, Director of Public Work – (530) 542-6031 Phil Harwood, Fleet Supervisor – (530) 542-6086
Background: City Council formally adopted the FY 22-23 annual budget at the August 23, 2022, meeting. Within the budget adoption, there was the appropriation to purchase several vehicles and pieces of equipment for the Department of Public Works and Streets Division. The proposed purchase is for a full-size paver for the Streets Division for pavement repair and maintenance.

Issue and Discussion: The proposed vehicle and equipment are sourced through Sourcewell, a cooperative purchasing agreement with the respective manufacturers/dealers. The financial Implications section below outlines the purchase cost and funding source. Attachment 02 details the quote from Nixon-Egli Equipment Co.

The paver is a LeeBoy 7000C with 8 to 13 feet, hydraulically extendable vibrating, and heated screed. This large-capacity paver is a classic entry-level conveyor paver able to maneuver around obstacles in smaller operational areas such as parking lots, driveways, and minor streets. It has the widest conveyor system within its class, the 7000C quickly performs the job it has set to accomplish - laying a consistently presentable mat each time. (See Attachment 02). With this equipment, the City intends to perform more pavement repair and maintenance in-house.

Financial Implications: The purchase of the vehicles and equipment will be secured through Vehicle Replacement account 210-03010-46130 (Vehicles) and is funded by the Measure S one percent sales tax increase approved by 64 percent of South Lake Tahoe voters in 2020. The current available unencumbered budget as of November 30, 2022, in this account is $590,455.44.

The proposed equipment’s total cost is $180,346.46, which is within the current available account budget balance.

Environmental Considerations: This purchase is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies) Policy Implications: Strategy EV-2 in the Climate Action Plan adopted by City Council on October 20, 2020, states that the city will “convert public agency fleets to electric vehicles (EV) or alternative fuels.” There are no EV products for this type of equipment.

The purchase of the vehicles contemplated herein will be via Sourcewll, a Cooperative Purchasing Contract. The City Code Section 3.45.090 allows for Cooperative Purchasing: “Where another 85 Council Agenda Report December 13, 2022 Page 2 of 2
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 a contractual arrangement between the city and said the 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)”
86 87
88 www.nixon-egli.com
 SO. CALIFORNIA: 2044 South Vineyard Avenue, Ontario, CA 91761 • (909) 930-1822 • FAX (909) 923-2356  NO. CALIFORNIA: 800 East Grant Line Road, Tracy, CA 95376 • (209) 830-8600 • FAX (209) 830-8884 City of South Lake Tahoe November 14, 2022
1700 D Street Quote Number- 100686
South Lake Tahoe, CA 96150
Attention- Phil Harwood South Lake Tahoe Sourcewell ID: 19333 Reference- Leeboy 7000C Paver Leeboy Sourcewell ID: 060122-VTL Dear Phil Harwood,
We are pleased to quote you One LeeBoy 7000C equipped as follows:

Standard Unit:
➢ All 7000C Pavers are equipped with: Tier 4 FINAL Turbocharged Engine ➢ 8' to 13' hydraulically-extendable vibrating and heated legend screed with four burners ➢ Dual 36" conveyors
➢ Back-up alarm
➢ Digital Display with Gauge Package, oil pressure and water temperature gauges, voltmeter, tachometer, hour meter, electric fuel gauge, and electronic throttle
➢ 10-ft wide hopper wings
➢ Wired for sonic augers
➢ Wash-Down System w/HD Pump with hose wrap
➢ Citrus Tank 7.5 Gallons
➢ Amber Safety Strobe Light
➢ Low Deck profile and 1 seat
Options Included in Pricing Below:
➢ Second Seat
➢ Hose Reel (Limited to One)
Options Not Included in Pricing Below:
➢ Truck Hitch
➢ Fail-Safe Brake with Anti-Creep
➢ Slope Meter
➢ LED Work Light Package (4 Lights)
➢ Sonic Augers, Sensors and Cords
➢ Electric Screws for Grade Control
➢ Wiring Only, Grade Control (Topcon) – includes A M Modules ➢ Sonic Grade Control, One Side (Topcon) *Requires Electric Screw Option* List Sales Price: $170,822.00
Sourcewell Discount (10%): - $17,082.20
Sales Price with Discount: $153,739.80
Dealer Items: $9,337.40

8.75% Sales Tax: $14,269.26
Delivery Freight: $3,000.00
Sales Price Total: $180,346.46
* Lead Time Estimate: June-July 2023 (Modifying existing inventory currently on order) if letter of intent to purchase is received no later than November 30th, 2022 *
** New order placed from LeeBoy would put lead time on this unit into 2025 ** 89 www.nixon-egli.com
 SO. CALIFORNIA: 2044 South Vineyard Avenue, Ontario, CA 91761 • (909) 930-1822 • FAX (909) 923-2356  NO. CALIFORNIA: 800 East Grant Line Road, Tracy, CA 95376 • (209) 830-8600 • FAX (209) 830-8884 The above price(s) are valid for 30 days.

Dealer items include: PDI/DMV Registration/Start Up Training/ Inbound freight from manufacture Due to the current supply chain and rising inflation, pricing is subject to change prior to delivery.

Thank you for the opportunity to quote on your equipment needs. Should you have any further questions, please feel free to contact me.

Sincerely,
NIXON-EGLI EQUIPMENT CO.

Sean Hines
Sean Hines (510) 318-2799
Municipal Area Manager
90 060122-VTL
Rev. 3/2022 1
Solicitation Number: RFP #060122

CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and ST Engineering LeeBoy, Inc., 500 Lincoln County Pkwy. Ext., Lincolnton, NC 28092 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Roadway Paving Equipment from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

B. EXPIRATION DATE AND EXTENSION. This Contract expires August 1, 2026, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.

C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. 






 



 


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Rev. 3/2022 2
Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.

When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be 






 



 


92 060122-VTL
Rev. 3/2022 3
returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:
x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change; 






 



 


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x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS

A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell 






 



 


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contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:








 



 


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x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.

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by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.







 



 


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E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS

Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.

12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY

1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.

2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, 






 



 


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resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.

3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.

4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.

14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota. 






 



 


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15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract.

The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:







 



 


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x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE

A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease

2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
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4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000

5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.

Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.

D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other 






 



 


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insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.

E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all 






 



 


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references to “federal” should be interpreted to mean the United States federal government.

The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.

A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-

1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.

B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.

C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).

Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of 






 



 


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not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.

F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.

G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any 






 



 


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person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).

H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.

I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.

J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.

K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers, and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.

L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.







 



 


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M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.

N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by an Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.

O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.

P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.

Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.

R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.

Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.

S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.

T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.

22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s 






 



 


107
060122-VTL
Rev. 3/2022 18
Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell ST Engineering LeeBoy, Inc.

By: __________________________ By: __________________________ Jeremy Schwartz Jay Horn
Title: Chief Procurement Officer Title: CFO
Date: ________________________ Date: ________________________ Approved:

By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________







 



 


























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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 12
Agenda Item: Fiscal Year 2021-22 Quarterly Financial Status Report - Quarter Ending September 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 September 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 - Sept 2022 Budget and Financial Status Report.docx 02-FY 2021-22 Qtrly Budget Report Sep 2022
125
Council Agenda Report- December 13, 2022 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: Fiscal Year 2021/22 Quarter End Financial Status Report as of September 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 September 30, 2022” covers the preliminary results of the entire fiscal year 2021-22 period. The report summarizes General Fund operating revenues and operating expenditures (unaudited figures) and provides an analysis of any significant budget variances.

Issue and Discussion: At the end of the fourth quarter with 100% of the year complete, primary General Fund actual revenues were at 99.3% of the amended budget, while expenditures were at 92.5% of appropriations. All departmental expenditures were below the total allocated budget with the exception of expenditures in the Public Works department due to higher than anticipated operating cost for utilities, parts, supplies, and fuel.

Through September 30th, the City received Measure S Sales Tax payments, accounted for in a separate general fund, totaling $7.0 million. 99 percent of this revenue was allocated to various projects and programs, including funding for 7 firefighters that were partially funded by a SAFER grant, streets and snow removal vehicle and equipment replacement, road rehabilitation, and communication system financing and debt service. See Attachment 2 for further analysis.

Financial Implications: At the end of the Fiscal Year 2021-22, total budgeted expenditures were projected to exceed revenues by $5.4 million. Based on preliminary unaudited actual results, General Fund expenditures exceeded revenues by $1.4 million. The Finance Department will submit the final year-end results in the form of an Annual Comprehensive Financial Report (ACFR) including audited financial statements to the City Council in May of 2023.

Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes in the environment).

Policy Implications: Consistent with City’s Financial Policies. 126
2021‐22 QUARTERLY FINANCIAL REPORT                   Page 1 of 3                     4TH QUARTER ENDING SEPTEMBER 30, 2022

CITY OF SOUTH LAKE TAHOE
2021-22 QUARTERLY FINANCIAL REPORT
4th QUARTER ENDING SEPTEMBER 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 September 2022 (preliminary unaudited figures) to the total budget.

Primary General Fund Financial Condition
As of September 30, with 100% of the year complete, General Fund revenues are at 99.3% of projections and expenditures are at 92.5% of appropriations.

Revenues. The top three
revenues, Property Tax, City
Transient Occupancy Tax
(TOT), and Sales Tax
performed above budget and
generated 57.6% of the total
$52.3 million General Fund
revenues collected through
September 30th. Overall
revenues were $2.2 million
higher than last fiscal year
2020‐21.

Property Tax and Motor
Vehicle License Fees (MVLF)
increased from the previous
fiscal year 2020‐2021 by 6.0%
($544K) and 5.2% ($126K)
respectively, reflecting an
increase in property assessed
valuation based on tax year
2021 when the South Lake Tahoe benefitted from influx of folks looking to work remotely during and after the pandemic and the resulted spike in median home sales prices.

Sales tax and Measure Q revenue combined was 9.1% or approximately $992K below previous year. The decrease is attributable to leveling of elevated sales of 2021 when many folks were taking their vacations in Tahoe to stay away from the more crowded conditions elsewhere with sales now falling back to more sustainable levels.   The receipts, however, are still considerably higher than in the pre‐pandemic year with Bradley Burns tax exceeding 2018‐19 results by $700K, or 12%, and Measure Q – by $580K, or 20%.

Revenues by Type
Total Budget as
of Sept 30
Actualsthrough
Sept 30
As % of
Budget
Property Tax 9,175,180 $              $             9,679,822 105.5% Transient Occupancy Tax ‐ City 10,227,113                            10,602,783 103.7% Transient Occupancy Tax ‐ Project Area 6,742,177                                7,463,579 110.7% Sales Tax 6,300,650                                6,369,792 101.1% Measure Q 3,192,325                                3,486,517 109.2% Motor Vehicle License Fees (MVLF) 2,285,000                                2,534,976 110.9% Franchise Taxes 1,500,000                                1,753,968 116.9% Business License Tax 1,647,000                                1,874,297 113.8% Finance ‐ Other Revenues 1,072,050                                1,251,967 116.8% General Government 309,070                                         58,090 18.8% Police                1,514,552                1,654,090 109.2% Fire 1,644,693                                1,415,902 86.1% Public Works 463,300                                      617,510 133.3% Development Services 1,548,003                                1,830,026 118.2% Parks and Recreation 1,272,400                                   703,279 55.3% Transfers In 3,764,994                                   953,537 25.3% Miscellaneous General Fund 46,005                                            81,494 177.1% REVENUES TOTAL 52,704,512 $           $          52,331,629 99.3% 127
2021‐22 QUARTERLY FINANCIAL REPORT                   Page 2 of 3                     4TH QUARTER ENDING SEPTEMBER 30, 2022 TOT receipts, including TOT from the Project area, but excluding TOT audits, were 6.8% or approximately $1.1 million higher overall compared to the previous fiscal year.  Measure T VHR ban affected occupancy within city limits, which shifted from VHRs to hotels located in the tourist core area. The City TOT was down 3% or $363K, while Project Area TOT was up 25% or $1.5 million. Total TOT receipts for the year totaled $18.1 million, which is equal to pre‐pandemic TOT revenue as of September 2019.

On the departmental side, Fire, Parks and Recreation, and General Government revenues ended the fiscal year below budget due to grants and reimbursements crossing multiple fiscal years for the Fire department and General Government, and partial campground and golf course closures for Parks and Recreation. These were offset by several departmental revenue categories that performed above budgeted projections, including Development Services ($282K), Finance‐Other ($180K), Public Works ($154K), and Police ($140K).

Budgeted Transfers‐in revenue category includes $3.7 million in American Rescue Plan Act (ARPA) funding. Due to specific revenue recognition requirements, $2.8 million of budgeted ARPA revenue is classified as deferred revenue resulting in only 23.9% of ARPA funding being recognized as revenue as of September 2022.

Expenditures. Of the $53.7
million in total actual
expenditures through
September 30th, approximately
$32.5 million or 60.5% of total
expended is personnel expense,
representing 27 payroll periods
or 100% of periods for the year.

Out of the remaining 39.5% or
approximately $21.2 million of
actual expenditures, $12.3
million is attributed to transfers‐out (including $3.8 million to City CIP and $3.3 million to City Debt Service fund), $2.5 million to professional, technical and other contract services, $3.4 million to miscellaneous general expense including taxes and fees, travel and training, and communications, $0.9 million to purchases of tools, parts, software, machinery and equipment, and the remaining $2.1 million to utilities, general supplies and other miscellaneous expense.

Total expenditures at year end were below budgeted by $4.3 million (preliminary unaudited figure). Approximately $2.3 million of these savings was carried over into the new fiscal year to pay for obligations that were budgeted and not fully received or could not be completed in fiscal year 2021‐22. Another large portion of the difference between the budgeted and actual expenditures (approximately $1.3 million, including $300K vacancy factor) is attributed to salary savings.

The overall expenditures exceeded last year by 15.0% or approximately $7.0 million. This increase is primarily attributed to increasesin transfers out totaling $3.4 million including those to the City’s Debt Service fund ($517K), City CIP ($1.2M), TOT Trust Fund ($200K), Airport ($293K), and Ice Arena ($181K), and is also attributed to several new transfers out, such as those to the Housing Fund ($310K), VHR Program ($445K), and Community/General Plan ($250K) most of which were approved during mid‐year. Additionally, total payroll costs were $1.9 million higher compared to fiscal year 2020‐21 due to the 27th pay period in fiscal year 2021‐22 and increases in salaries and benefits cost.

Expenditures by Department
Total Budget as
of Sept 30
Actualsthrough
Sept 30
As % of
Budget
General Government 4,679,763 $              $             4,228,620 90.4% Finance 2,495,288                                2,407,810 96.5% Miscellaneous General Fund 18,254,950                            16,835,399 92.2% Police 13,066,184                            12,169,167 93.1% Fire 9,945,125                                9,407,422 94.6% Public Works 4,009,353                                4,059,105 101.2% Development Services 2,176,898                                1,721,116 79.1% Parks and Recreation 3,442,641                                2,906,911 84.4% EXPENDITURES TOTAL 58,070,202 $           $          53,735,550 92.5% 128
2021‐22 QUARTERLY FINANCIAL REPORT                   Page 3 of 3                     4TH QUARTER ENDING SEPTEMBER 30, 2022 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 was projected to generate approximately $6.4 million.

Revenues. The City received Measure S Sales Tax totaling $7.0 million for Fiscal Year 2021‐22.

Expenditures. The City Council allocated the projected annual Measure S revenue and additionally, a portion of the excess revenue from last fiscal year
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 September 30, $6.9 million has
been transferred out to these
projects and programs. The Fire
Marshall position remained vacant
during fiscal year 2021‐22,
therefore, Measure S did not
contribute to the 50% cost of the
position in that fiscal year.

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

REVENUES
Measure S Sales Tax 6,440,000 $           $       6,953,250 108.0% Interest/Dividends Revenue                          ‐                   2,137 100.0% REVENUES TOTAL 6,440,000 $           $       6,955,386 108.0% 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                               396,010 100.0% Fire Marshall postion (50%) & vehicle 171,000                                 90,000 52.6% Snow Removal Equipment 454,295                               454,295 100.0% Stormwater 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 6,986,868 $           $       6,905,868 98.8% 129
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 13
Agenda Item: City Council Assignments to Boards and Commissions Executive Summary: In accordance with past practice, each year City Council discusses and selects a member(s) to serve on various boards, commissions, and subcommittees for the following year.

Requested Action / Suggested Motions: 1) Pass a Motion approving City Council assignments to boards and commissions; and 2) Pass a Motion approving citizen representation to the El Dorado County Commission on Aging, Tahoe Regional Planning Agency Advisory Planning Commission, and the El Dorado Community Action Council.

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

Susan Blankenship, City Clerk
Heather Stroud, City Attorney
Attachments:
01-Staff Report - Assignments to Commissions and Boards.docx 02-2022 City Council Assignments
03-Notice of Solicitation - City Council Representative.pdf 04-Conway application CAC_Redacted.pdf
05-Chandler application for TRPA APC_Redacted.pdf
06-Bannister application Commissions on Aging_Redacted.pdf 07-Schenning application Commission on Aging_Redacted.pdf 08-Schenning - Letter to Council.pdf
130
Council Agenda Report December 13, 2022 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: 2023 City Council Assignments to Commissions and Boards Location: Citywide
Responsible Staff Member: Susan Blankenship, City Clerk, (530) 542-6005 Background: In accordance with past practice, each year City Council discusses and selects members to serve on various boards, commissions, and subcommittees for the following year. At this time, Council also establishes or eliminates subcommittees as needed.

In addition to member assignments, City Council may appoint a community representative to the El Dorado County Commission on Aging (one-year) term, El Dorado County Community Action Council (one-year term), and TRPA Advisory Planning Commission (two-year term).

Issue and Discussion: City Council will hold a discussion and approve assignments to Commissions and Boards.

City Council may appoint a representative to the El Dorado County Commission on Aging, El Dorado County Community Action Council, and the Tahoe Regional Planning Agency Advisory Planning Commission. A solicitation was noticed, and applications were received from the following persons:

El Dorado County Commission on Aging: Brandi Bannister, Chantelle Schenning El Dorado County Community Action Council: Brian Conway Tahoe Regional Planning Agency Advisory Planning Commission: Susan Chandler Financial Implications: There are no financial obligations associated with this action.

Environmental Considerations: The selection of assignments to City Council commissions and Boards is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes to the environment).

Policy Implications: The discussion and selection of City Council Assignments to Commissions and Boards conforms to City Council Protocols. 131
1 2022 City Council Assignments
Set forth by statute:

Board Contact/ Phone Mtg. Schedule/ Place Requirement 2022 Assignment
California Tahoe
Conservancy
Mike Steeves (530) 543-6023
[email protected]
4-6 Meetings per year;
third Thursday every
other month; Alternate
South Shore and North
Shore
Voting Board Member
G.C. Sec. 66906.1
Wallace
Alt: Creegan
Staff Support:

HR
LB
City Selection
Committee
EDC Board of Supervisors
Kim Dawson (530) 621-5393
[email protected]
As needed
Placerville/TBA
Mayor
G.C. 50270
Middlebrook
Staff Support:

JI
El Dorado County
LAFCO
Erica Sanchez
(530) 295-2707
[email protected]
Jose Henriquez
[email protected]
Fourth Wednesday
every month; 5:30 p.m.

Placerville Apr-Oct CC
Rep participate via
conference call from
Council Chambers for
months of Nov – Mar
Appointment by City
Selection Committee
Appointee (Mayor)
G.C. 56325-56337
2-year term
Bass
Staff Support:

JI
HS
El Dorado
Countywide
Oversight Board
Susan Blankenship, City Clerk
City of South Lake Tahoe
[email protected]
Phone (530) 542-6005
As needed, general
once a year in January
or February
Appointed by the City
Selection Committee
G.C. 50270
HSC 34179(j)
Wallace
Staff Support:

OT
Tahoe Regional
Planning Agency
Governing Board
----------------
Advisory Planning
Comm
Marja Ambler
(775) 588-4547 x 287
[email protected]
GB Meetings meet
fourth Wednesday
every month; all day
Alternate South Shore
and North Shore
Voting Board Member
G.C. 66800-66801
Friedrich
Alt: Bass
Staff Support:

HR
LB
Susan
Chandler
Tahoe Transportation
District
Judi Allen
(775) 589-5502
[email protected]
Second Friday every
month; Alternate South
Shore and North Shore
Voting Board Member
+Alternate
G.C. 66800-66801
Bass
Alt: Wallace
Staff Support:

AN
LB
Revised 1/7/2022
132
2 2022 City Council Assignments
Set Forth by Agreement/Joint Powers Agreement/Resolution/Bylaws and/or Past Practice:

Board Contact/ Phone Mtg. Schedule/ Place Requirement 2022 Assignment
JPA - Abandoned
Vehicle Abatement-
(530) 542-6135
(PD-Code Enforcement)
Paula Fleming 530-542-6136
[email protected]
Required to Hold an
Annual Meeting
Time/Place TBA
Voting Board Member
Must be Elected
Councilmember Agmt
C-68-91
Middlebrook
Staff Support:

DS
JPA - Cal Tahoe
(California Tahoe Emergency
Services Operations Authority)
Ryan Wagoner, Executive Director
[email protected]
Kayla Galvan, Office Administrator
[email protected]
www.ctesoa.org
Quarterly; Time/Place
TBA
2 Council Appointees
Agmt C-18-10
(1/26/10)
Wallace
Bass
Alt:Middlebrook
Staff Support:

CS
Clean Tahoe Program Katie Sheehan Third Thursday of the Two Voting Board Wallace 530 544-4210 Month in the City Members Creegan
[email protected] Council Chambers; (Councilmember and Staff Support:

Designee) AN
Clean Tahoe Bylaws LB
El Dorado County
Commission on Aging
Steve Shervey
530-622-8476
[email protected]
Third Thursday Every
Month; Rotates Location
Within EDC/TBA;
Council Appointee Kaufman
Staff Support:

LT
League of CA Cities-Sac
Valley Division
Charles Anderson
(916) 798-2231
[email protected]
Quarterly Division
Meetings; Annual
Meetings Time/Place
TBA
Council Appointee
(Past Practice =
Mayor)
Wallace
Staff Support:

JI
SB
PADMA Lew Feldman Every other Month 2 Council Appointees Wallace Park Avenue Development
Project Plaza Maintenance
Association
(775) 580-7431
[email protected]
Marriott Grand
Residence
Agmt R-11-00
PADMA Bylaws
Bass
Alt: CM or CA
Staff Support:

JI
HS
South Lake Tahoe
Recreation Facilities
JPA
Bruce Eisner
(530) 545-9905
[email protected]
Shall Hold at Least One
Annual Meeting Each
Year; Time/Place TBA
Board Member Agmt
C-17-00
Middlebrook
Staff Support:

LT
Community Play Jeff DeFranco 3 times per year Council Appointee Creegan Consortium (530) 541-4660 X 210 Staff Support:
[email protected] JI
LT
JPA -South Lake Tahoe
Basin Waste
Management AuthorityGreg Stanton
(530) 621-5300
[email protected]
Shall Hold at Least One
Annual Meeting Each
Year; Time/Place TBA
Voting Board
Member-Must be a
Councilmember &
Alternate
Agmt C-25-97
Creegan
Alt: Bass
Staff Support:

AN & LB
Revised 1/7/2022
133
3 Tahoe Prosperity Center Heidi Hill Drum,
(775) 298-0265 (office)
[email protected]
January, April, July,
December
Council Liaison Middlebrook
Staff Support:

JI
LB
Lake Tahoe Visitor’s
Authority Board

1. Tahoe South

2. Tahoe Douglas
Carol Chaplin [email protected]
(775) 588-5900 x302
Jennifer Skelly – admin.
(775) 588—5900 x300
Second Thursday of each
month, 3 p.m.
169 US50, Stateline, NV
89449
Voting Member
New LTVA Bylaws
Requested from Ms.

Chaplin 12 22 20
Bass
Staff Support:

JI
LB
El Dorado Community
Action Council
(CAC)
Star Walker
(530) 621-6255
[email protected]
4th Wednesday of each
month at 10:00 a.m.

Council Appointee Conway
Staff Support
Non-Voting:
2022 City Council Assignments
Board Contact/ Phone Mtg. Schedule/ Place Requirement 2022 Assignments
Tahoe Chamber of Steve Teshara, CEO Third Thursday of each Council Liaison – Creegan Commerce (775) 588-1728 x 301 Month; Non-Voting Staff Support:
tahoechamber.org [email protected] 8 a.m./Place TBA (Past Practice) JI LB
South Lake Tahoe Lodging Rich Bodine Second Thursday of each Council Liaison – Middlebrook Association (530) 543-6515 Month Time/Place TBA Non-Voting (Past Staff Support:
[email protected] Practice) JI
LB
South Tahoe Chamber of Amanda Adams, President First Monday of each Council Liaison – Wallace Commerce (California (530) 721-0243 month Non-Voting Staff Support:

Tahoe Chamber) [email protected] (Past Practice) JI LB
El Dorado County
Transportation Commission
Woodrow Deloria
(530) 642-5265
[email protected]
[email protected]
First Thursday of most
months 2:00 PM in the
EDC Supervisors’
Council Liason
Non Voting
Bass
Alt.

Middlebrook
Chambers 330 Fair Lane,
Placerville
Revised 1/7/2022
134
4 2022 City Council Appointments to Subcommittees
Name of Committee City Council Appointees (2)
Finance Subcommittee Wallace
Friedrich
Staff Support: OT & JI
Cannabis Subcommittee
(Formerly Medical and Adult use
Cannabis Regulations
Subcommittee) est. 09 05 2017
Middlebrook
Friedrich
Staff Support: HR & HS
South Tahoe Public Utility District
Subcommittee
Wallace
Creegan
Staff Support: AN, JI & LB
Lake Tahoe Unified School District by
2 X 2
est. 01 15 2019
Creegan
Friedrich
Staff Support: JI & LB
Lake Tahoe Community College
2 X 2
est. 01 15 2019
Middlebrook
Friedrich
Staff Support: JI & LB
El Dorado County
2 X 2
est. 01 15 2019
Wallace
Bass
Staff Support: JI & LB
Charter City Subcommittee
est. 06 04 2019 (Renamed 12/1/2020)
Bass
Middlebrook
Staff Support: JI & LB
Housing Subcommittee
est. 01 14 2020
Wallace
Friedrich
Staff Support: HR & ZT
Multi-Cultural Alliance Subcommittee
est. 12 15 2020
Friedrich
Bass
Staff Support: JI, SB & DS
Mental Health Subcommittee
est. 08 03 2021
Creegan
Middlebrook
Staff Support: JI & DS
Capital Improvement Program
Subcommittee
est. 01 04 2022
Bass
Friedrich
Revised 1/7/2022
135
City of South Lake Tahoe
Notice of Solicitation of Applications
City Council Representative:

El Dorado County Commission on Aging
El Dorado County Community Action Council
Tahoe Regional Planning Agency Advisory Planning Commission (Lay Member) NOTICE IS HEREBY GIVEN that the City Council of the City of South Lake Tahoe is soliciting applications for a City Council Representative to the El Dorado County Commission on Aging, El Dorado County Community Action Council, and the Tahoe Regional Planning Agency Advisory Planning Commission.

El Dorado County Commission on Aging: (Considered annually) The City Council will be appointing one representative to the El Dorado County Commission on Aging.

Applicants must reside within the city limits. The Commission meets monthly, rotating locations within El Dorado County.

For information purposes, the following is an excerpt from the Commission’s webpage:
“The Commission on Aging is an advisory Committee to the El Dorado County Board of Supervisors. The Commission works with the Director of the Area Agency on Aging on community interests and issues faced by seniors in El Dorado County. This includes, but is not limited to, developing community centers in strategic areas of the county to make services accessible to all seniors. The group also promotes services that help seniors to remain in their homes and prevent elder abuse.” El Dorado County Community Action Council: (Considered annually) The City Council will be appointing one representative to the El Dorado County Community Action Council.

Applicants must reside within the city limits. The Council meets the fourth Wednesday of each month at 10 a.m.

For information purposes, the following is an excerpt from the By Laws:
“The purpose of this Advisory Board is to advise the El Dorado County Board of Supervisors, as the designated Community Action Agency, and Board of Directors thereto, for the County, and the Health and Human Services Agency, as the County Department designated by the Board of Supervisors to administer Community Action programs and activities, including the Community Services Block Grant, about the needs of the community on issues relating to human services needs for low-income residents of El Dorado County and to provide an avenue of participation for local government, private organizations, and private citizens of the community in serving the most vulnerable populations. The Council will provide advice and recommendations to the Board of Supervisors, provide assistance in educating the community on human services and available resources in El Dorado County and participate in developing collaborative solutions to meet ongoing community needs, while working together to meet the basic needs and to improve the quality of life for residents of El Dorado County.”
Tahoe Regional Planning Agency Advisory Planning Commission (Lay Member): (Two-Year Term) For information purposes, the following is an excerpt from the Tahoe Regional Planning Agency Compact regarding the Advisory Planning Commission (APC):
“Article Ill. Organization:
h) An advisory planning commission shall be appointed by the agency. The commission shall include: the chief planning officers of Placer County, El Dorado County, and the City of South Lake Tahoe in California and of Douglas County, Washoe County and Carson City in Nevada, the executive officer of the Lahontan 136 Regional Water Quality Control Board of the State of California, the executive officer of the Air Resources Board of the State of California, the Director of the State Department of Conservation and Natural Resources of the State of Nevada, the Administrator of the Division of Environmental Protection in the State Department of Conservation and Natural Resources of the State of Nevada, the Administrator of the Lake Tahoe Management Unit of the United States Forest Service, and at least four lay members with an equal number from each state, at least half of whom shall be residents of the region. Any official member may designate an alternate.

The term of office of each lay member of the advisory planning commission shall be 2 years.” Applications:

Applications may be obtained at City Hall located at 1901 Airport Road, South Lake Tahoe, between 8:00 a.m. and 5:00 p.m., Monday through Friday. Applications can also be downloaded from the City's website at www.cityofslt.us, or emailed to interested parties upon request to the City Clerk's Office. Completed applications must be returned to the City Clerk's Office (email preferred [email protected]) no later than 4:00 p.m., on Tuesday, December 6, 2022.

The City Council will be making appointments at their December 13, 2022, meeting.

For questions, please contact Susan Blankenship, City Clerk at 542-6005 or via email at [email protected]
137

WHEN COMPLETED RETURN FORM
TO: Office of the City Clerk
Attn: Susan Blankenship - City Clerk
1901 Lisa Maloff Way, Ste 206
South Lake Tahoe, CA 96150-6324
PH: (530) 542-6005
[email protected]

CITY OF SOUTH LAKE TAHOE

VOLUNTEER COMMISSION/BOARD MEMBER APPLICATION
Please Legibly Print or Type
NAME: FIRST MIDDLE INITIAL LAST COMMITTEE AND/OR CATEGORY APPLYING FOR:

RESIDENCE: STREET ADDRESS CITY STATE ZIP CODE
MAILING ADDRESS: P.O. BOX CITY STATE ZIP CODE
RESIDENCY: (Please select one)

CITY RESIDENT EL DORADO COUNTY RESIDENT DOUGLAS COUNTY RESIDENT STATE OF NEVADA RESIDENT PHONE NUMBER(S): RESIDENCE: BUSINESS: EMAIL ADDRESS:

EDUCATION/EXPERIENCE:

PLEASE LIST ANY PAST OR PRESENT COMMUNITY INVOLVEMENT AND/OR GROUP AFFILIATIONS:

WHAT DO YOU SEE AS THE RESPONSIBILITIES OF THIS COMMITTEE AND WHAT DO YOU HOPE TO ACCOMPLISH IF APPOINTED?
DATE:__________________________SIGNATURE:
___________________________________________
Please note that the information provided on this application, incl e a matter of public record.

Have you taken the opportunity to attend any previous commission meeting prior to the notice of this vacancy? YES NO
Please list any potential conflict of interests that you may foresee if appointed to the Commission that you’ve applied:
__________________________________________________________________________________________________ If appointed to the Airport Land Use Commission, Planning Commission Building Board of Appeals, Parks & Recreation Commission, Arts, Culture and Tourism Commission or Independent Citizens' Oversight Commitee, you will be required by the State of California Fair Political Practices Commission to file a Conflict of Interest Statement with the City Clerk. Will you be willing to comply with this requirement?
CERTIFICATE OF APPLICANT:

I certify that all statements made in this application are true and complete. I understand that any false statement or omission of material facts will subject me to disqualification or dismissal.

YES NO
138
Experience for Brian Conway – Commission/Board Appointment Application More than 35 years of experience in the areas of social services, homelessness, senior services, prevention, mental health, substance abuse treatment, developmental disabilities, education, law enforcement, and business. Developed and maintained relationships with community leaders and elected officials at the local, state and national level. Extensive experience and knowledge of policy development and advocacy in the aforementioned arenas as well as program development, implementation and expansion, contract compliance, budgeting, staffing, and leadership 139
140

WHEN COMPLETED RETURN FORM
TO: Office of the City Clerk
Attn: Susan Blankenship - City Clerk
1901 Lisa Maloff Way, Ste 206
South Lake Tahoe, CA 96150-6324
PH: (530) 542-6005
[email protected]

CITY OF SOUTH LAKE TAHOE

VOLUNTEER COMMISSION/BOARD MEMBER APPLICATION
Please Legibly Print or Type
NAME: FIRST MIDDLE INITIAL LAST COMMITTEE AND/OR CATEGORY APPLYING FOR:

MAILING ADDRESS: P.O. BOX CITY STATE ZIP CODE
RESIDENCY: (Please select one)

CITY RESIDENT EL DORADO COUNTY RESIDENT DOUGLAS COUNTY RESIDENT STATE OF NEVADA RESIDENT PHONE NUMBER(S): RESIDENCE: BUSINESS: EMAIL ADDRESS:

EMPLOYER:

EDUCATION/EXPERIENCE:

PLEASE LIST ANY PAST OR PRESENT COMMUNITY INVOLVEMENT AND/OR GROUP AFFILIATIONS:

WHAT DO YOU SEE AS THE RESPONSIBILITIES OF THIS COMMITTEE AND WHAT DO YOU HOPE TO ACCOMPLISH IF APPOINTED?
DATE:__________________________SIGNATURE:
__________________________________________
Please note that the information provided on this application, incl e a matter of public record.

Have you taken the opportunity to attend any previous commission meeting prior to the notice of this vacancy? YES NO
Please list any potential conflict of interests that you may foresee if appointed to the Commission that you’ve applied:
__________________________________________________________________________________________________ If appointed to the Airport Land Use Commission, Planning Commission, Building Board of Appeals, Parks & Recreation Commission, Arts, Culture and Tourism Commission or Independent Citizens' Oversight Committee, you will be required by the State of California Fair Political Practices Commission to file a Conflict of Interest Statement with the City Clerk. Will you be willing to comply with this requirement?
CERTIFICATE OF APPLICANT:

I certify that all statements made in this application are true and complete. I understand that any false statement or omission of material facts will subject me to disqualification or dismissal.

YES NO
141

WHEN COMPLETED RETURN FORM
TO: Office of the City Clerk
Attn: Susan Blankenship - City Clerk
1901 /iVD 0Dloff :Dy, Ste 206
South Lake Tahoe, CA 96150-6324
PH:
0
542-6005
[email protected]

CITY OF SOUTH LAKE TAHOE
VOLUNTEER &200,66,21%2$5' 0(0%(5 $33/,&$7,21
Please Legibly Print or Type
NAME: FIRST MIDDLE INITIAL LAST COMMI77(( AND/OR CATEGORY APPLYING FOR:

MAILING ADDRESS: P.O. BOX CITY STATE ZIP CODE
RESIDENCY: (Please select one)

CITY RESIDENT EL DORADO COUNTY RESIDENT DOUGLAS COUNTY RESIDENT STATE OF NEVADA RESIDENT S): RESIDENCE: BUSINESS: EMAIL ADDRESS:

EMPLOYER:

EDUCATION/EXPERIENCE:

PLEASE LIST ANY PAST OR PRESENT COMMUNITY INVOLVEMENT $1'25 *5283 $)),/,$7,216:

WHAT DO YOU SEE AS THE RESPONSIBILITIES OF THIS COMMI77(( AND WHAT DO YOU HOPE TO ACCOMPLISH IF APPOINTED?
DATE:__________________________SIGNATURE:
____________________________________________ Please note that the information provided on this application, includi come a matter of public record.

Have you taken the opportunity to attend any previous commission meeting prior to the notice of this vacancy? YES NO
Please list any potential conflict of interests that you may foresee if appointed to the Commission that you’ve applied:
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CERTIFICATE OF APPLICANT:

I certify that all statements made in this application are true and complete. I understand that any false statement or omission of material facts will subject me to disqualification or dismissal.

B
<(6 12
CHANTELLE L SCHENNING El Dorado County Commission on Aging ✔
Invitae Corporation
PhD in Health Services/Public Health, Masters in Healthcare Admin, & Bachelors in Pre-Med Biology Live Violence Free- Policy/Advocacy efforts; LTCC Tutor + Adjunct; California Association of Healthcare Leaders; Girls Inc STEM Advisory Council; Senior Center (Baltimore); Oregon Museum of Science & Industry ✔
✔
12/5/22
16 years of healthcare experience in clinical care, operations/ strategic leadership, and policy.

The responsibility of the committee is to deeply understand the needs of seniors’ wellbeing and aim to address those needs through policy and organizations throughout the community. As a new member, I hope to evaluate the population health and wellbeing data available for seniors across the county and city. From this, a detailed strategic plan can be developed to ensure we are meeting the needs of senior community members. I will also collaborate with city council and others to ensure the new recreation center/ space includes accessibility and activities for seniors. 142
Dear City Council,
Thank you for considering my application for appointment on the Commission on Aging.

My passion for improving the aging population’s health started as a child with my Aunt Josie. Long before I was born, Aunt Josie beat breast cancer, gave birth to her only son, and suffered a loss of her husband at a young age. Growing up, I worried Aunt Josie was lonely, so I spent most of my childhood with her. I volunteered at the local senior center while she painted ceramics. I was in 7th grade when her 35-year-old son died from brain cancer. I don’t remember her crying.

As Aunt Josie entered her 80s, I coordinated her care among healthcare providers and translated complex healthcare information to family and most importantly, her. I cared and worried for her. I was in high school, working as a medical assistant in a low-income community practice, and taking community college courses in anticipation for pre-medical school. Afterschool, we would sit together, and she would talk about things I’d yet to understand.

In my twenties, Aunt Josie was often admitted to Johns Hopkins Hospital (JHH) where I worked as healthcare leader, and I would visit her on lunches or afterwork. One admission was for falling and laying for hours until someone found her. “Is this the time she dies?”, I’d fear and grieve upon every hospital visit.

Aunt Josie passed away 6 years ago. As I look back on caring for her, I realize the struggles of a fragmented healthcare system and community, not being supportive pillars for seniors. She needed access to coordinated care, mental healthcare, social support, and in-home care from someone more experienced than her niece. I realize now; I was filling a void in our healthcare system from a young age.

As a long-tenured healthcare professional, I've made it my career to rectify voids in healthcare for people of all ages. I have extensive experience and expertise in the health and wellbeing of patients including seniors. My PhD focuses on health services and public health including advanced program development in communities. Everyone, especially seniors, need comprehensive care and resources to live a happy, productive life. It would be an honor to identify needs and close the gaps for our seniors here in South Lake Tahoe and collaborate with the City Council to make a difference.

Warmly,
Dr. Chantelle Schenning, PhD
143
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
Meeting Date: December 13,
2022
Agenda Item #: 14
Agenda Item: South Tahoe Refuse Interim Year Rate Increase of 4.96 Percent Executive Summary: The City maintains a solid waste franchise agreement with South Tahoe Refuse (STR) for collection and disposal services. The Franchise Agreement includes provisions for adjustments to the rates charged for these services. The interim year changes are based on changes in the Consumer Price Index and landfill disposal costs. The Rate Setting Policy and Procedures Manual is utilized by the three jurisdictional partners in the South Lake Tahoe Basin Waste Management Authority (JPA). The partner agencies include the City of South Lake Tahoe, El Dorado County and Douglas County. The analysis was conducted in accordance with the JPA’s Solid Waste Rate Setting Manual.

Crowe’s analysis identified an interim year rate increase of 4.96 percent for the City of South Lake Tahoe, which equates to $1.76/month for residential customers and $2.01/cubic yard for commercial customers.

Requested Action / Suggested Motions: Pass a Motion approving South Tahoe Refuse Interim Year Rate Increase of 4.96 percent ($1.76 per month for residential customers and $2.01 per cubic yard for commercial customers).

Responsible Staff Member: Anush Nejad Public Works Director Responsible Staff Member: Anush Nejad Public Works Director (530) 542-6031 Reviewed and Approved By:

Susan Blankenship, City Clerk
Olga Tikhomirova, Director of Finance
Heather Stroud, City Attorney
Attachments:
01-Staff Report - South Tahoe Refuse Interim Year Rate Adjustment.docx 02-Rate Setting Manual.pdf
03-STR 2023 Interim Year Rate Review Report.pdf
04-Clean Tahoe Annual Report.pdf
05-Presentation.pptx
144
Council Agenda Report December 13, 2022 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: December 13, 2022
Title: South Tahoe Refuse Interim Year Rate Adjustment
Location: Citywide
Responsible Staff Member: Anush Nejad, Director of Public Works (530) 542-6031 Background: The City maintains a franchise agreement with South Tahoe Refuse (STR) for solid waste collection and disposal. The franchise agreement includes provisions for adjustments to the rates charged for these services. In December 2011, the City Council amended the franchise agreement to reference the Solid Waste Rate Setting Policies and Procedures Manual, which was subsequently updated on March 30, 2012 (02-Rate Setting Manual) for rate-setting policies and procedures. The Manual establishes rate change policies, provides application forms, specifies reporting formats, identifies required supporting documentation, and describes the procedures for requesting, reviewing, and adopting rate changes. The Rate Setting Policy and Procedures Manual (Manual) is utilized by the three jurisdictional partners in the South Lake Tahoe Basin Waste Management Authority (JPA). The partner agencies include the City of South Lake Tahoe, El Dorado County, and Douglas County.

Issue and Discussion: The Manual describes the process for rate adjustment for both the base year and interim years on a 3-year cycle. The last base year was 2021. The current rate adjustment is for an interim year. The Manual sets a process for limited rate changes during the interim years between the three-year base-rate settings. The interim year changes are based on changes in the Consumer Price Index and landfill disposal costs.

On August 16, 2022, STR submitted its Application to the JPA for the rate year 2023. The JPA approved a contract with Crowe, LLC to review STRs interim year rate application and to recommend a proposed rate adjustment.

On November 4, 2022, Crowe LLP (Crowe) completed an analysis of South Tahoe Refuse Company’s Inc.’s (STR) 2023 Interim Rate Application. The analysis was conducted in accordance with the JTA’s Solid Waste Rate Setting Manual. Crowe’s analysis identified an interim year rate increase of 4.96 percent for the City of South Lake Tahoe. The analysis and the recommendation are included (03-STR 2023 Interim Year Rate Review Report).

The recently approved rate adjustments are shown below:
 2021 – 9.04 percent rate increase for the City of South Lake Tahoe; 7.11 percent rate increase for Douglas County; and 5.77 percent rate increase for El Dorado County – base year.
145
Council Agenda Report December 13, 2022 Page 2 of 3
 2022 – 3.77 percent rate increase for the City of South Lake Tahoe and El Dorado County; and 3.69 percent rate increase for Douglas County – interim year.

As a result of the analysis, the calculation supports a 2023 interim year rate increase of 4.96 percent for the City of South Lake Tahoe and El Dorado County and a 4.86 percent interim year rate increase for Douglas County.

Rates vary for each service area based on several factors including:
 Distance from the service area to the South Tahoe Refuse Transfer Station and truck parking and maintenance yard. The closer the collection service area is to the STR transfer station, the more efficient and cost-effective it is to provide service to those customers.
 Customer density per mile is another factor that impacts the collection rates.  Type of terrain for the service area. The City is much flatter with not as many hills and narrow service tracks which makes it the easiest area to service.  Traffic conditions contribute to the amount of “windshield” time for a particular service area.
 Road work is another factor that impacts “windshield” time.  Weather conditions, including having to run collection routes using tire chains during the winter months, also increase “windshield” time.
 Bear box enclosures. The number of bear box enclosures on a route significantly impacts the amount of time it takes to provide collection services for that route.  Type of service: mandatory or non-mandatory subscription service. Both California jurisdictions, the City of South Lake Tahoe and El Dorado County – Area A, have mandatory residential collection service requirements so all customers are required to pay for collection services.
 Residential and commercial revenues and customer mix. One important consideration is the mix of residential and commercial customers and the total revenue generated by the customers for that jurisdiction.
 Historical rate-setting practices. Current rates for each jurisdiction generally carry legacy rate structures that were established by these jurisdictions long ago based on the needs of the community at that time.

Finally, for the City of South Lake Tahoe, the rates include a $0.50 residential surcharge which covers street sweeping and nuisance abatement and the Clean Tahoe Program. The Clean Tahoe Program surcharge was $0.70 in 2022 and is increased by 4.96 percent. In 2021, the City determined that it is in the best interests of all parties for Clean Tahoe to become a subcontractor to STR for litter abatement, debris, and illegal dumping cleanup services. The Clean Tahoe Annual Report is attached as Attachment 04.

The following table includes the recommended rates for the City of South Lake Tahoe:
146
Council Agenda Report December 13, 2022 Page 3 of 3
City of South Lake Tahoe Rates
Service Level 2022 Rates
(Per customer,
per month)
Interim Year
Rate Increase
2023 Rates
(Per customer,
per month)
Residential (Unlimited
Service)
$35.89 $1.76 $37.65
Commercial (Per cubic yard) $40.49 $2.01 $42.50
On November 10, 2022, the JPA Board approved the report and recommended that each jurisdiction consider the rate adjustment by their respective governing boards.

Financial Implications: A 4.96% increase in solid waste service rates within the City of South Lake Tahoe will increase the cost of STR’s Unlimited Service by $1.76 per month for residential customers and $2.01 per Cubic Yard for commercial customers. The total City rates include Street Sweeping, Nuisance Abatement, and Clean Tahoe Program.

Environmental Considerations: CEQA does not apply. Approval of staff’s recommendation is not a “project” subject to CEQA because it (a) has no potential to cause a significant effect on the environment and (b) concerns government fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. (Cal. Code Regs., tit. 14, §§ 15061(b)(3) and 15378(b)(4).) Policy Implications: The application process and analysis utilized to determine the interim year rate adjustment are consistent with the Solid Waste Rate Setting Policies and Procedures Manual dated March 30, 2012.
147
South Lake Tahoe Basin
Waste Management Authority
Solid Waste Rate Setting
Policies and Procedures Manual
March 30, 2012
148
Table of Contents
Section

1. Rate Setting Goals and Objectives ................................................ 1-1 A. Introduction .................................. ............................................................. 1-1 B. Rate Setting Goals ...................................................................................... 1-2 C. Rate Setting Policies .............................................. ..................................... 1-3 D. Rate Application Process ............................................................................ 1-6 E. Allowable and Non-Allowable Costs .......................................................... 1-8

2. Base Year Rate Setting Process ....................................................... 2-1 A. Step 1 - Prepare and Submit Rate Application ........................................... 2-1 B. Step 2 - Verify Completeness of Rate Application ...................................... 2-8 C. Step 3 - Review Rate Application and Prepare Response ............................ 2-8 D. Step 4 - Prepare Draft Report and Final Report.. ..................................... 2-10 E. Step 5 - Present Final Report to JPA Board ............................................. 2-12 F. Step 6 - Notify Customers of Rate Hearing ............................................. 2-12 G. Step 7 - Receive Approval from City Council and County Boards ........... 2-12 H. Step 8 - Implement New Rates ................................................................ 2-13

3. Interim Year Rate Setting Process ................................................... 3-1 A. Step 1 - Prepare and Submit Rate Application ............................. .............. 3-1 B. Step 2 - Prepare Draft Report and Final Report ............. ............................ 3-2 C. Step 3 - Receive Approval from City Council and County Boards ............. 3-6 D. Step 4 -Implement New Rates ................................................................... 3-6 Appendix
A. Blank Forms and Worksheets ........... .. .................... .. ....................... A-1 149
[This page intentionally left blank.]
ii Solid Waste Rate Setting Policies and Procedures Manual 150
8 .
.

Section l
Rate Setting Goals and O~jectives
151
l . Rate Setting Goals
and Objectives
This section of the manual provides an overview of the rate setting process. The section includes five subsections:

A. Introduction
B. Rate Setting Goals
C. Rate Setting Policies
D. Rate Application Process
E. Allowable and Non-Allowable Costs.

A. Introduction
This manual is a step-by-step guide for the South Lake Tahoe Basin Waste Management Authority QPA), and its franchise hauler, to prepare and approve changes in solid waste collection rates. The manual establishes rate change policies, provides application forms, specifies reporting formats, identifies required supporting documentation, and describes the procedure for requesting, reviewing, and adopting rate changes. The following three (3) jurisdictions make up the JPA:
• City of South Lake Tahoe, California
• El Dorado County, California
• Douglas County, Nevada.

In 1996, the JPA developed a "Solid Waste Collection, Recycling, and Transfer Station Operations Rate Setting Policies and Procedures Manual' ( 1996 Manual) as a tool to use to regulate solid waste rates. This version (version 2.0) represents the first update to the 1996 Manual since that time.

The franchise hauler for the three (3) jurisdictions is South Tahoe Refuse Company, Inc. (STR). Each jurisdiction has a franchise agreement with STR for collection and disposal of refuse as follows:
• Collection Franchise Agreement between El Dorado County and South Tahoe Refase Company, Inc., dated February 13, 1995 • Solid Waste Services Agreement between City of South Lake Tahoe and South Tahoe Refase Company, Inc., dated August 21, 2001 • Solid Waste Services Agreement between Douglas County and South Tahoe Refuse Company, Inc., dated October 2006. ' ' The franchise agreement has been amended three times. On March 15, 2007, the franchise was amended to reflect the correct franchise fee (First Amendment). On October 15, 2009, the franchise was amended to update indices used in the cost-of-living adjustment (COLA, Second Amendment). The most recent amendment was signed on December 21, 2009, again revising the COLA, to account for negative rate changes (Third Amendment). 152
Table 1- 1
South Tahoe Refuse Company, Inc.

Business Divisions
-- Divisions Service Areas
I. South Tahoe • City of South
Refuse Company Lake Tahoe
• Unincorporated
El Dorado County
• Douglas County,
Nevada

2. American River • Unincorporated
Disposal El Dorado County

3. Sierra Disposal • Unincorporated
Service El Dorado County
Covered
by Manual
Yes
No
No
Each franchise agreement currently has slightly
different terms and conditions for how rates are
set. The intent of this manual update is to replace
these varied rate setting terms and conditions with
common rate setting terms and conditions that the
JPA, and the three (3) jurisdictions, can agree to,
and apply. The intent of this manual update is
for each jurisdiction to incorporate this updated
version 2.0 of the manual, by reference, into their
respective franchise agreements with STR.

This manual is meant as a tool for setting rates
for the three (3) jurisdictions, combined. The JPA
will be responsible for reviewing rate applications
submitted by the franchised hauler. The JPA will
recommend percentage rate changes to apply to the
three (3) jurisdictions.' Each jurisdiction, however,
will have the ultimate authority to approve the
JPA's rate change recommendation (i.e., at the city
council or board of supervisor level).
3 2 For base year reviews, there would be one recommended rate change for the City of South Lake Tahoe and Douglas County, and one recommended rate change for El Dorado County. For interim year reviews, there would be one recommended rate change for the City of South Lake Tahoe and El Dorado County, and one recommended rate change for Douglas County.
3 Interim year rate setting for the City of South Lake Tahoe and Douglas County is procedural and does not require a rate hearing. Interim year rate setting for El Dorado County does require a rate hearing.

The franchised hauler, South Tahoe Refuse
Company, Inc. , has three (3) divisions as shown
in Table 1-1, left. T he South Tahoe Refuse
Company represents the division covered by
this manual.

The JPA intends for this manual to be revised
over time, as needed, to reflect changes in objectives
or modifications to the franchise agreements. 4
B. Rate Setting Goals
The primary goal of the rate setting process and
methodology is to determine solid waste collection
rates which are fair to customers and which provide
a fair return to the franchise hauler. A total of six
(6) rate setting process goals were considered in
developing this rate setting methodology:

1. The JPA and franchised hauler should start
with a strong and committed partnership.

The JPA and franchised hauler should view
this franchise as a business partnership where
both parties commit to use the formal rate
setting methodology, and plan continuous
communication on rate setting
throughout the franchise term.

2. Rates requested by the franchise hauler must
be justifiable and supportable. A formal
request to change rates, submitted by the
franchise hauler, should provide the basis for
all rate changes, include only allowable and
necessary costs, and provide accountability
for expenditures. In determining rates, the
JP A shall consider both the need for fairness
to the ratepayer and the need to compensate
the franchise hauler fairly and consistently
with the methodology.

3. The estimated costs of service, and resulting
solid waste rates, should be reasonable.

The JPA acknowledges that maintenance
• Should the JPA dissolve at any time in the future, the three jurisdictions have indicated a preference to continue to use this manual on a jurisdictional basis. Jurisdiction-specific rate setting would require some modifications to the methodology in that STR would have to allocate its revenues and costs to each jurisdiction.
1-2 Solid Waste Rate Setting Policies and Procedures Manual 153
of quality service is related to providing
adequate compensation, and financial
incentives, for continued good performance.

Revenues generated should be adequate
to fully meet reasonable costs-of-service.

The resulting monthly fees for solid waste
collection service should be comparable
to those charged in other jurisdictions for
providing similar services.

4. The process should be kept as simple as
possible, while ensuring that any rate
request is justifiable and reasonable. The
process should be easy to explain and not
place an undue cost on either the JPA,
the jurisdictions, or the franchise hauler
to implement. The process also should
minimize administrative efforts of the JPA,
and its jurisdictions.

5. The rate setting process should provide
mechanisms for ongoing rate review
and rate stability. A periodic, formal, and
thorough JPA review (every three years)
of financial and operating data will set an
expectation for the hauler and ultimately
will protect the ratepayer. These reviews
should be conducted consistently and in
accordance with set schedules in the
manual. The process should prevent large,
unexpected fluctuations in rates due to
changes in costs or from the need to fund
a broadening scope of waste management
services. This formal process also serves to
meet the fiduciary responsibility of the JPA,
and individual jurisdictions, to its ratepayers.

6. The JPA and franchised hauler should
strive to maximize opportunities to
improve performance and service quality
while maintaining cost competitiveness in
the marketplace. In a "cost-plus-profit"
contract such as exists between the
jurisdictions and franchised hauler, there
can be less incentive for the hauler to
decrease costs because increases in allowable
costs actually result in increases in allowable
operating profit levels. Ideally, the JPA, and
the hauler, should set rates in a base year,
and the hauler should attempt to reduce its
costs in subsequent years.

C. Rate Setting Policies
The JPA will use the following eight (8)
policies when setting rates:

1. Use the Operating Ratio Method to
Determine Profit - The JPA will use the
operating ratio (OR) method to establish
revenue requirements for setting rates.

The operating ratio establishes revenue
requirements based on allowable expenses
and is defined as follows:

Operating = Allowable expenses
ratio Allowable expenses + Profit
The operating ratio effectively determines
the profit allowed to the franchise hauler on
operating costs. Total revenue requirements
then are determined as the sum of:
(1) allowable operating costs, (2) allowable
profit, and (3) pass-through costs (for which
the franchise hauler receives no profit).

Specific operating ratios are provided in
Exhibit 1-1 on page 1-10.

2. Do Not Allow Retroactive Rate Increases -
There will be no allowance for a retroactive
increase in rates, except by special
agreement, or by party default. Retroactive
reimbursements can move rates out of
alignment with the actual costs of providing
service. This process and methodology
codifies strict rate review timelines and
responsibilities. If the JPA, jurisdictions,
and hauler adhere to these timelines for
submission and rate change approval, and
no party defaults on these timelines, all
future rates should be established such that
there is no need for retroactive rate increases.

3. Do Not Allow Balancing Accounts -
This rate setting process is based on projecting
results during base years. Thus, actual base
year results likely will differ from base year
projections. In some regulatory environments,
these differences are "balanced" in subsequent
years by using a balancing account.

Balancing accounts are occasionally used in
the waste industry as an accounting-based
approach to true up a previous year's
1-3
154
projections to actual financial results. A
balancing account can then be used to address
differences between actual and projected
results. A balancing account requires
substantial administration, reporting, and
control measures which determine how funds
in the account are invested and managed.

When a balancing account is established,
terms and conditions related to these accounts
are clearly documented as part of a rate
setting process and methodology manual.

Also, terms and conditions are specifically
incorporated by reference into contractual
agreements between the respective parties.

The problem with balancing accounts is
that by funding surpluses and deficits using
rate revenues, rates charged to customers
ultimately do not reflect the true cost of
providing service to customers because they
include retroactive components. Over time,
current ratepayers can end up ultimately
subsidizing, or beneficing from, prior
generations of ratepayers. For example,
if rates are raised to pay off a balancing
account, then current ratepayers bear the
responsibility of what previous ratepayers
should have paid for initially.

Municipal finance principles generally
require a strong nexus between (1) cost-ofservice and benefits and (2) cost-of-service and rates. Use of a balancing account
generally breaks down this nexus and
results in rate inequalities.

A balancing account also frequently is less
useful when a long-term franchise exists.

With a long-term business partnership,
there is less need to recover variances
between actual and projected results on
a year-to-year basis. These variances can
often be absorbed over the course of a long
term franchise, such as is the case between
the jurisdictions and franchise hauler.

Balancing accounts are not designed to
account for differences between "rates asked
for" and "rates received." They also are not
designed for accounting for differences
between "rates received" and "a fair rate of
return. " Balancing accounts, by their very
nature, result in retroactive rates, which do
not reflect cost-of-service based rates.

4. Do Not Allow Fuel Surcharges - There
will be no separate "fuel surcharges" added
to rates to account for increases in fuel
costs. Fuel surcharges create accounting
problems (e.g., which fuel index to use,
over what time period to use the index,
and determining what portion of the rate
that fuel costs represent). Fuel surcharges
require separate accounting from allowable
rate changes which may already reflect
compensation to the franchise hauler for
changes in fuel costs (e.g., as part of a CPIbased rate change during interim years).

Fuel surcharges lag actual changes in fuel
prices (by as much as one year), so changes
in the fuel surcharge are disconnected
from current changes in fuel prices. Fuel
costs typically represent a relatively small
portion of the overall rate charged (less
than ten (10) percent), minimizing the
impact of fluctuating fuel prices on overall
rates. Finally, once established, fuel
surcharges can linger within rates during
periods when fuel prices are stable and
when a fuel surcharge is not necessary.

5. Analyze Related Party Transactions -
The company has certain related-party
transactions with affiliates. The company
must disclose all related party transactions
as part of the rate setting process.

The JPA will allow only those transactions
with these related parties which are "market
based." The JPA will assess whether related
party transactions are conducted on an
"arms length" basis, equivalent to terms as
with an unrelated party in the conditions
of a competitive, free market, environment.

STR related parties are identified in
Table 1-2, on the next page.

During its review, the JPA may request that
STR provide the following information in
support of related party transactions:

D Allocation methods used, if applicable
1-4 Solid Waste Rate Setting Policies and Procedures Manual 155
Table 1-2
STR Related Parties and Transactions
Related Company Relationship/Transaction
Douglas Disposal, • Owned by same ownership
Inc. (DOI) group as STR
• STR leases facility space to DOI
• STR leases office space to DOI
• STR leases computers to DOI
• STR loans money to DOI
Tahoe Basin • Owned by same ownership
Container Service group as STR
(TBC) • STR leases facility space and
equipment to TBC
• ST R leases office space to TBC
• STR rents computers to TBC
• STR loans money to TBC
American River • Owned by same ownership
Disposal (ARD) group as STR
• STR leases office space to ARD
• STR leases computers to ARD
• STR provides office contract
labor to ARD
Sierra Disposal • Owned by same ownership
Service (SOS) group as STR
• ST R leases office space to SOS
• STR leases computers to SOS
0 Nature, extent, and magnitude of
the relationship
0 Terms of the related parry transaction
(e.g., timing of payments, term length)
0 Historical information (e.g., ownership)
0 Dace of acquisition (if applicable)
0 Purchase price of item (if applicable)
0 Financing terms for item (if applicable).

The JPA may require STR to provide up
to three (3) comparable lease races for
leases of facilities and equipment. For
related parry company leases, the JPA may
require STR to identify financing charges,
or profit components, within these lease
rates. STR should be prepared to support
the business purpose for each related
parry transaction.

The JP A will examine how related parry
transactions are created for rate setting
purposes in the Base Year Rate Application.

The JPA will assess whether related
parry transactions already have a profit
component on chem, and if so, treat these
related parry transactions as pass-through
costs (without a profit component)
to avoid a "double counting" of profit.

The JPA will consider all of the above
factors in determining whether the related
parry transaction is an allowable cost and
is charged at a reasonable amount.

6. Account for Prior Resource Recovery
Facility (RRF) Rate Funding - For each of
the three consecutive years of 2005, 2006,
and 2007, each of the three jurisdictions
approved a nine (9) percent race increase
for STR. The first of these three nine (9)
percent race increases, implemented in 2005,
was provided to fund general STR cost
increases. For the second nine (9) percent
race increase implemented in 2006, a total of
six (6) percent of chis nine (9) percent rate
increase was provided to fund operating
and capital costs of the Resource Recovery
Facility (RRF) project. For the third nine (9)
percent rate increase, implemented in 2007,
a total of six ( 6) percent of chis rate increase
also was provided to fund operating and
capital costs of the Resource Recovery
Facility (RRF) Project.

For 2006, and 2007, El Dorado County
and Douglas County required chat STR
pay the six ( 6) percent race increase, which
was provided to cover the RRF, to the JPA.

The JPA then released these amounts back
to STR upon completion of certain RRF
project milestones.

For 2006, and 2007, the City of South
Lake Tahoe required chat STR pay the
six (6) percent rate increase, which was
provided to cover the RRF, to the City
of South Lake Tahoe. The City of South
Lake Tahoe then released these amounts
back to STR upon completion of certain
RRF project milestones.
1-5
156
Table 1-3
Recycling Revenue Bonus Amounts
For Extraordinary Diversion
(2012 to 2018)
-
Minimum Minimum
Diversion Rate Diversion Rate
Years To Achieve 25% To Achieve 50%
of Recycling of Recycling
Revenue Share Revenue Share
2012 to 2014 38 44
2015 to 2016 40 47
201 7 co 2018 43 50
STR received these RRF-related funds and
collected project revenues in excess of
project expenses totaling $4,722,285. The
RRF project was completed in April, 2010.

Beginning at the next base year (2012),
STR will include a credit to JPA
jurisdiction ratepayers of $787,048 each
year through the end of 2017. This
amount was determined by dividing the
credit of $4,722,285 by six years. The
credit amount of $787,048 will be applied
to the base year rate in 2012 and 2015.

This means that in each base year, the
$787,048 amount will be reset as a credit
line item in the base year rate application.

7. Use Recycling Materials Sales Revenue
Sharing - There will be a recycling revenue
bonus which is tied to STR diversion levels.

In addition to the calculation of allowed
profit, STR is allowed the recycling revenue
bonuses shown in Table 1-3, below. For
years 2019 and beyond, the JPA will reassess
whether the recycling diversion rates, which
trigger revenue sharing, remain sufficient
to meet State of California diversion
requirements. For 2019 and beyond, the
JPA may adjust the diversion rates, which
trigger revenue sharing, upward by up to
three (3) percent per year to achieve greater
State of California diversion requirements.

8. Eliminate Annual Summary Report -
Beginning in 2010, STR will no longer be
required to submit an Annual Summary
Repon as had been the required practice dating
back to the original 1996 Manual version.

9. Unforeseen Circumstances - The JPA
and/or the three jurisdictions shall consider
a proposed revision in STR's rates whenever
STR establishes to the satisfaction of the
JPA and/or each jurisdiction that unforeseen
circumstances have arisen that have or will
materially affect STR's costs or revenues
under this rate manual.

D. Rate Application Process

1. Base Year Process
The JPA requires that the franchise hauler
submit a detailed Base Year Rate Application once
every three (3) years. With the Base Year Rate
Application, the franchise hauler provides detailed
financial and operating information which is
carefully reviewed and analyzed by the JP A.

These detailed reviews are referred to as "base
year reviews" in the methodology.

With the Base Year Rate Application, the franchise
h~uler submits audited financial statements for the
previously completed fiscal year. These statements
serve as the base documents for the application.

The franchised hauler should reconcile financial
information contained in the Base Year Rate
Application with the audited financial statements
to provide assurance that all of the company's
activities are accounted for.

The timing of the base year process is shown
in Figure 1-1, on the next page. The schedule
is expected to start with submission of the Base
Year Rate Application on May 31" of the year
proceeding each base year. The process targets
an implementation date of January 1" of the
base year. 5
5 For Douglas County, the maximum rate increase is 9.9 percent before the County must take the increase to the County citizens for a vote of approval.
1-6 Solid Waste Rate Setting Policies and Procedures Manual 157
Figure 1-1
Timing of Base Year Process
2 Verify Completeness of Rate Application
3 Review Rate Application and Prepare Response
4 5
6 7
8 Prepare Draft Report and Final Report
Prepare Final Report to JPA Board
Notify Customers of Rate Hearing
Receive Approval from City Council and
County Boards
Implement New Rates
Table 1-4
Base Year Financial Statement Requirements
(Fiscal Year Ending June 30)
Base Prior Current Base
Year Year Year Year
(Audited) (Estimated) (Projected)
2012' 2010 2011 2012
2015 2013 2014 2015
2018 2016 2017 2018
2021 2019 2020 2021
2024 2022 2023 2024
2027 2025 2026 2027
The Base Year Rate Application requires three
(3) years of data, including a year of actual data
(based on audited information), a year of
estimated data (based on year-to-date information
available at the time the application is submitted),
and the projection, or base year. The required
years, and types, of data for upcoming base year
reviews are displayed in Table 1-4, above. For
• Represents the fiscal year ending June 30, 2011 .
example, for the 2012 base year, STR would
prepare the Base Year Rate Application using
audited 2010 data, estimated year-to-date 2011
data, and entirely projected 2012 data.

STR operates on a fiscal year ending June 30.

Thus, for the current year, STR should have
available the first three quarters of compiled,
not audited, fiscal year data to use for its current
year estimate (i.e., data through March of the
current year).

2. Interim Year Process
In each of the "interim" two (2) years between
"base" years, should the franchised hauler want to
increase rates, the JPA requires that the franchise
hauler submit an Interim Year Rate Application
for an interim year rate change. The scope and
content of the Interim Year Rate Application is
much more limited than a base year request. The
franchised hauler is not obligated to request an
increase in rates and can instead request to leave
rates unchanged.
1-7
158
Figure 1-2
Timing of Interim Year Process
2 Prepare Draft Report and Final Report
3 Receive Approval from City Council and County Boards. 4 Implement New Races
During the interim years, STR shall be entitled to
increase its rates based upon the following formula:
(1) eighry-five (85) percent of the annual
percentage change in the most recent actual,
not forecasted, change in the Consumer
Price Index, All Urban Consumers,
U.S. Ciry Average - Garbage and Trash
Collection (December 1983= 100, series
CUUROOOOSEHG02) ("CPI") applied to
costs other than landfill disposal costs, plus
(2) projected changes in landfill disposal costs.
7 For the first part of the calculation (noted as
(1) above), the JPA and franchised hauler will use
the percentage change in the CPI for the prior
June to June twelve-month period. This June to
June CPI data will be available at the time the
franchised hauler submits the Interim Year
Application in August (see Exhibit A-4, for sample
of CPI percent change calculation).

Interim year rate adjustments are subject to a
"floor" and 'a "cap." During interim years, rates
shall not be greater than six ( 6) percent nor less
than one (1) percent, regardless of the rate
change calculated by the interim year formula.

The timing of the interim year process is
shown in Figure 1-2, above. The schedule is
expected to start with submission of the Interim
7 These landfill disposal costs are currently set by a non-related party to STR, under a long-term disposal agreement.

Year Rate Application on August 31" of the year
proceeding the interim year. The process targets
an implementation date of January 1" of the
interim year.

E. Allowable and
Non-Allowable Costs
Rates are established for each base year based
on the hauler's projected revenue requirement.

The revenue requirement is defined as the sum
of the following: ,
• Allowable costs
• Allowable operating profits
• Pass through costs.

For purposes of computing the revenue
requirement, it is necessary to determine which
of the franchise hauler's costs are (1) allowable
costs, (2) pass through costs, and (3) nonallowable costs.

1. Allowable Costs
When a cost is said to be "allowable," that
cost, plus a profit component associated with
that cost, is included in rates charged to the
ratepayers. Allowable costs are often those costs
that are integral to the hauler's operation and/or
are associated with actual activiry performed by
the hauler.
1-8 Solid Waste Rate Setting Policies and Procedures Manual 159
Table 1-5
Allowable Depreciation Methods and Useful Lives
for STR Assets Purchased After January 1 , 201 O - -
Category Method Useful Life
(Years)
Carts SL' 5
Office Equipment SL 5
Vehicles and Equipment SL 8
Buildings and Leasehold SL 20 Improvements
The hauler is allowed to earn a profit on certain
costs. The majority of allowable costs are direct
labor, equipment costs and facility costs, landfill
disposal costs, office salaries, and general and
administrative costs. These allowable costs are
defined in Exhibit 1-1, on the following page.

Exhibit 1-2, following Exhibit 1-1, includes a
chart of expense accounts (based on current STR
financial statements) for allowable costs, which
serves to further clarify categories of allowable costs.

The following costs are clarified because of
their special treatment for rate setting:
• Depreciation - Table 1-5, above, shows
depreciation methods and useful lives, by
asset type, recommended for rate setting
purposes. Current methods used to
depreciate capital items, which were in use
prior to this version 2.0 of the manual, are
allowed to continue. Useful lives in Table
1-5 are for new capital purchases (i.e.,
those made during and after 2010).
• Officer's Salaries - Reasonable officer's
salaries are considered an allowable cost.

Officers are employees fully performing
management functions identified in the
franchise agreement. Officer's salaries
include base compensation plus bonuses
and do not include profit distributions
to owners. The JPA shall set the total
combined officer's salaries for the franchise
• Represents straight-line depreciation.
hauler, at a reasonable level, during each
base year. For purposes of establishing
base year rates, the total amount of
officer's salaries of six ( 6) percent of gross
revenues is deemed reasonable.
9 • Materials Recovery Facility and Resource
Recovery Facility Capital Costs - The
rate treatment of equipment and building
costs associated with the STR Materials
Recovery Facility (MRF) and Resource
Recovery Facility (RRF) is summarized in
Table 1-6, on page 1-13. These rate
treatment provisions are based on the
agreed upon terms and conditions at the
time the MRF and RRF were constructed.
• Blue and Green Bag Program Costs -
STR currently provides blue bag curbside
recycling services to JP A customers. STR
collects these blue bags with the refuse
container and sorts the materials at its
Materials Recovery Facility (MRF). Blue
bags are, however, currently paid for by
the jurisdictions themselves and not STR.

For the blue bag program, the costs for
blue bags are not included in current rates
charged to JPA customers.

STR plans to roll out a yardwaste program,
with or without the green bags also
collected with the refuse container.

Materials from the yardwaste program will
be sorted at STR' s Resource Recovery
Facility (RRF). For the yardwaste program,
the costs for green bags are not included in
current rates charged to JPA customers.

During the next rate review, blue bag and
yardwaste program revenues and costs will
be fully reflected in the rates charged to
JPA customers. The full costs of the blue
bag and yardwaste programs will be
9 Currently, officer salaries have been limited to an agreed upon amount specified in the franchise agreements to be adjusted annually by a CPI. STR distributes the officer salaries, under its discretion, within the limit allowed under the current franchise agreements for the City of South Lake Tahoe, El Dorado County, and Douglas County. Providing for officer salaries of 6 percent of gross revenues will provide about the same limit for officer salaries as the allowable amount specified in the franchise agreements.
1-9
160
Exhibit 1- 1
Definition of Financial Terms Page I of2
Application Line Number/Item Definition
Allowable Operating Costs
I. Direct Labor Wages, and related benefits, paid to refuse collection staff, including wages, overtime, payroll taxes, health and welfare benefits, workers compensation, and pension benefits.

2. Equipment Costs Includes cost of equipment depreciation, equipment leases, equipment insurance, equipment and Facility Costs repair and maintenance, fuel, and other miscellaneous equipment expenses. Facilities expenses consist of building rent, building depreciation, and building repair /and maintenance.

3. Landfill Disposal Costs Costs to dispose of solid waste at landfills.

4. Office Salaries Wages, and related benefits, paid to office and administrative staff, including wages, overtime, payroll taxes, health and welfare benefits, workers compensation, and pension benefits.

5. General and General and administrative coses including:

Administration Costs • Advertising
• Colleccion fees
• Contract labor
• Dues and subscriptions
• Employee education
• General insurance
• Office repair and maincenance
• Officer salaries and benefits (less chan or equal to six (6) percent of gross revenues) • Professional fees
• Property caxes
• Office expense
• Licenses
• Supplies
• Travel
• Utilities.
1-1 O Solid Waste Rate Setting Policies and Procedures Manual 161
Exhibit 1-1
Definition of Financial Terms , tir ~""J) Page2 f2
Application Line Number/Item Definition
Operating Ratio (OR)
Allowable Operating Profit
MRF and RRF Principal
Payments
Interest Expense
Franchise Fees
Resource Recovery Facility Fund
Credit
Allowable Operating Profit
For the City of South Lake Tahoe and Douglas County, a profit is allowed based on a sliding scale which varies with STR's recovery percentage as follows:

Operating Ratio Recovery Percentage

94.34 0-15%

93.90 16

93.46 17

93.02 18

92.59 19

92.17 20

91.74 21

91.32 22

90.90 23

90.50 24
89 25-28
88 29-32
87 33-100
For El Dorado County, a profit is allowed, based on a targeted operating ratio ranging betweer 87 and 91 percent. For El Dorado County, in the base year, if rates remain unchanged at an operating ratio within the range of 87 to 91 percent, and the franchise hauler actually realized an operating ratio within this range, then that same operating ratio resulting in no rate change is used, and no rate change occurs. Otherwise, an 89 percent operating ratio is used for the bas year calculation. For El Dorado County, the operating ratio for the first base year (2012) will be set at 89 percent.

Established by the allowable operating ratio and equal to total allowable costs divided by the allowable OR, less total allowable costs.

Pass Through Costs
For the City of South Lake Tahoe and Douglas County, principal payments on debt used to finance the Materials Recovery Facility (MRF) and Resource Recovery Facility (RRF). For El Dorado County, principal payments on the debt used to finance the MRF and RRF will be allowed with profit.

For the City of South Lake Tahoe and Douglas County, interest on debt used to finance all STR operations. For El Dorado County, interest on the debt used to finance the MRF and RRF will be allowed with profit.

Equal to five (5) percent of gross residential, commercial, and recycling revenues for the City of South Lake Tahoe and El Dorado County, and three (3) percent of gross residential, commercial, and recycling revenues for the Douglas County. 10 Rates will be reduced by an amount of$288,121 (plus afcer tax interest) for each year between 2012 and 2024
10 This franchise fee amount is subject to change by any of the three (3) JPA jurisdictions. 1- 11
162
Exhibit 1-2
Chart of Accounts
for Allowable Operating Costs
Category Description
Direct Labor • Direct Labor
• Direct Labor Benefits
• Direct Labor Insurance
• Direct Labor Workers Compensation
• Direct Labor Pension
• Direct Labor Payroll TaJCes
Equipment Costs and Facility Costs • Equipment and Facility Depreciation • Property Rent
• Equipment Rent
• Fuel
• Repairs and Maintenance
Landfill Disposal Costs • Dump Fees
Office Salaries • Office Scaff Salaries
• Office Scaff Benefits
• Office Scaff Insurance
• Office Scaff Workers Compensation
• Office Scaff Pension
• Office Staff Payroll T aJCes
General and Administrative Costs • Advertising
• Contract Labor
• Dues and Subscriptions
• Employee Education
• General Insurance
• Office Expense
• Officer Salaries
• O cher Administrative Costs
• Licenses and Fees
• Property T aJCes
• Supplies
• Travel
• Ucilicies
1-12 Solid Waste Rate Setting Policies and Procedures Manual 163
Table 1-6
Materials Recovery Facility and Resource Recovery Facility Capital and Operating Cost Treatment -
Description
Materials Recovery Facility and Resource Recovery Facility Depreciation Equipment Depreciation II
Building Depreciation
Materials Recovery Facility and Resource Recovery Facility Building Financing Interest
Principal
12 Materials Recovery Facility and Resource Recovery Facility Equipment Financing Interest
Principal
- Rate Setting Treatment
Allowable with Profit
Non-Allowable Cost
Pass-Through Expense
Pass-Through Expense
Pass-Through Expense
Non-Allowable Cost
11 Includes reasonable depreciation on equipment used in the Materials Recovery Facility and Resource Recovery Facility. 12 Includes debt financing on loans provided by the South Lake Tahoe Basin Waste Management Authority. For El Dorado County's portion of the debt financing, these MRF and RRF financing amounts will be treated as an allowed cost. 1-13
164
considered an allowable cost (with profit) for
rate setting purposes. STR will then thereafter
purchase and provide the blue and/or green
bags to its customers as determined by the
JPA. The individual jurisdictions will no
longer be required to purchase and provide
blue and/or green bags to their customers.

2. Pass Through Costs
Pass through costs are costs included in rates
charged to customers, however these costs do not
have an associated profit component. Pass through
costs are generally transactional in nature and
often are thought of as costs not associated with
any significant effort performed by the hauler.

The following pass through costs do not earn
a profit, but are included in determining total
revenue requirements to establish solid waste rates:
• MRF principal payments (City of South
Lake Tahoe and Douglas County) 13
• RRF principal payments (City of South
Lake Tahoe and Douglas County) 13
• I 14 nterest expense
• Franchise fees
• RRF fund credit
• Franchise fees.

3. Non-AJlowable Costs
Non-allowable costs are not allowed in rates
charged to ratepayers. These costs are disallowed
because (1) they may not be associated with the
core business, (2) they may be included implicitly
in the profit level allowed by the JPA, or (3) they
may unnecessarily complicate rate regulation
(e.g., income taxes). Costs shown in Exhibit 1-3,
on the next page, are not allowable for rate setting,
and as a result will not be passed onto ratepayers.
13 For El Dorado County, principal payments on the MRF and RRF financing are allowable costs.
14 For El Dorado County, interest on the MRF and RRF financing is an allowable cost.

Table 1-7
Recommended STR Allocation Methods For Costs
Shared with Other Non-JPA Serviced Jurisdictions
Cost Category Allocation Method
Billing costs Number of bills processed
Disposal costs Actual tonnage
Equipment costs (e.g., rental, Truck usage (over
leases, parts, fuel, supplies, representative period)
tires, repair and maintenance,
licenses, permits)
Franchise fees Revenues multiplied by
fee percentage
General and administrative Direct labor hours
costs, management fees
Loans Revenues

4. Cost AJlocations and Methodologies
The franchised hauler should provide
supporting documentation and rationale for the
allocation of expenses between the franchised
areas covered by this manual and non-JPA areas
serviced by South Tahoe Refuse Company .

Examples of the types of expenses which may
require justification for allocations may include:
• Billing costs
• Disposal costs
• Equipment costs
• General and administrative costs
• Loans to or from affiliates
• Loans to or from officers
• Management fees.

The franchised hauler should be prepared to
provide a reasonable and supportable methodology
for these cost allocations. Table 1-7, above,
provides recommended allocation methods for
various costs which may be shared between JPA
and non-JP A jurisdictions.
1-14 Solid Waste Rate Setting Policies and Procedures Manual 165
Exhibit 1-3
Non-Allowable Costs
Category
Amortization of Franchise Purchases
Charitable and Political Donations
Entertainment Expenses
Fines and Penalties
Income Taxes
Cost of Repairs Due to Operator Negligence
Costs Incurred to Serve Other Jurisdictions
(i.e., for non-JPA areas served by STR
(e.g., Forest Service areas))
-- Description
Consistent with the waste management industry, the JPA disallows amortization of franchise purchases because the operating ratio is designed to provide a return to the company sufficient to compensate for the company's investment in the business. • Costs associated with attempting to influence the outcome of any federal, state, or local election, referendum, initiative, or similar procedure, through in-kind or cash contriburions, endorsements, publicity, or similar activities. • Establishing, administering, contributing to, or paying the expenses of a political parry, campaign, political action committee, or other organization established for the purposes of influencing the outcomes of elections.

Costs incurred in hosting social events for clients or suppliers. Examples include costs of tickets, concerts, athletic events, or other performances; room rentals; cruises; entertaining guests at athletic, social, or sporting clubs and on vacation or other similar trips.

Costs associated with violations of, or failure of, the hauler to comply with federal, state, local, or foreign laws and regulations. This category of non-allowable costs can also include costs in connection with alteration or destruction of records, or other false or improper charging or recording of costs.

The operating ratio is provided on a pre-tax basis. To allow income tax expense would unnecessarily add complexity to the rate review process.

Costs of negligence on the part of the hauler which could include accidents or property damage.

The franchised hauler will be compensated for only those costs that can be directly attributable to operations within the franchised boundaries. The franchised hauler should have a clear basis for allocating shared costs to the franchise areas covered by this manual, and those franchised areas not covered by this manual.

The JPA will assess reasonableness of the revenue
and cost projections provided by the franchised
hauler in its Base Year Rate Application. Examples
of rypes of factors the JPA will consider when
assessing reasonableness of projected revenues and
costs are shown in Table 1-8, on the next page.
1-15
166
Table 1-8
Base Year Rate Review
Revenue and Cost Projection Factors ~
Description Factors to Consider in Developing Revenue and Cost Projections Revenues
RC5idential and commercial revenue5 • Projected account growth based on historical account trends, or population trends • Historical changes in tonnage (particularly for the industrial sector) Recycled materials sales revenue5 • Historical changes in recycled materials volumes • Recycled commodity pricing trends (may be highly volatile) Costs
Direct labor • Projected increases in wage rates
• Planned changes in insurance races
• Planned changes in benefit races
Equipment costs and facility costs • H istorical average trends in costs (last three years) • Inflation rates
• Fuel price history
• Depreciation schedules
• Equipment replacement plans
Landfill disposal fee5 • H istorical changes in refuse tonnage • Tipping fee rate increases, per contract
Office salaries • Projected increases in wage rates
• Planned changes in insurance rates
• Planned changes in benefit rates
General and administrative costs • Historical average trends in coses (lase three years) • Inflation rates
MRF principal payments • Loan documents
lntere5t expense • Borrowing rates
• Loan documents
Franchise fees • Projected changes in revenues multiplied by the fee amount 1-16 Solid Waste Rate Setting Policies and Procedures Manual 167
Section 2
Base Year Rate Setting Process
168

2. Base Year Rate
Setting Process
This section describes each of the eight (8) steps of the base year rate setting process.

Each step includes an overview of the seep and a detailed description of the casks required co complete the step. The section includes eight (8) subsections:

A. Step 1 - Prepare and Submit Rate Application
B. Step 2 - Verify Completeness of Rate Application
C. Step 3 - Review Rate Application and Prepare Response D. Step 4 - Prepare Draft Report and Final Report
E. Step 5 - Present Final Report to ]PA Board
F. Step 6 - Notify Customers of Rate Hearing
G. Step 7 - Receive Approval from City Council and County Boards H Step 8 - Implement New Rates.

A. Step 1 - Prepare and Submit Rate Application
Responsibility: Franchise hauler
Timing: Completed seven (7) months prior to the dace new races become effective Tasks: a.
b.
c.
d.
e.
f.
g.
h.

I.

Overview
Prepare Cost Information
Prepare Revenue Information
Prepare Operating Information
Calculate Allowable Operating Profit
Determine Franchise Fee
Calculate Revenue Requirement
Calculate Net Surplus/Shortfall and Percent Change in Rates Calculate New Percentage Race Change and Races
Prepare and Submit Race Application.

During chis seep, the franchise hauler prepares the Base Year Rate Application. This three-page form includes detailed financial and operating information and is used to determine the actual costs and revenues of the franchise hauler. Blank copies of the Base Year Rate Application are provided in Appendix A (Exhibit A-1).

Several lines in the application contain four columns. These columns are intended to show the relationship between the most recently completed year, the current year, and projections for the new "base" year. These columns are organized as follows:
169
• Column one includes actual audited
information for the franchise hauler's prior
fiscal year. This is the most recent year that
financial information is available and that
actual costs and revenues can be verified.
• Column two is for estimating performance
during the current fiscal year. The "current
year" is the franchise hauler's fiscal year prior
to the new base year. The Base Year Rate
Application is prepared during the course
of the current year. Data in this column
should include year-to-date performance
plus estimated performance during the
remaining months of the current fiscal year.
• Columns three and four are used to report
projected performance during the new base
year. This information is entirely a
projection and is utilized to determine any
rate changes. Projected information should
be developed by estimating anticipated
service levels during the base year, and
determining the revenues and expenses
which will be incurred to provide these
services. Each cost element in the application
should be reviewed and any anticipated
change in specific line items should be
included in the base year projection. For
example, if labor rates are scheduled to
change, or if landfill disposal costs are
expected to change, these changes should be
included in projections for the base year.

The relationship between these four (4) columns
for any given line item should be consistent. Any
substantial difference between each of the three (3)
years should be explained by the franchise hauler and
considered by the JPA during the review process.

The franchise hauler should provide a copy of
audited financial statements for the prior fiscal
year. Financial information from the audit is
consolidated into specific categories identified in
the application. All financial information shall be
in accordance with generally accepted accounting
principles. The franchise hauler should prepare
supplemental documentation which reconciles
the financial audit for the most recently
completed fiscal year to information provided in
the application. This documentation should be
included in the application package.
a. Prepare Cost Information
Cost information from the franchise hauler is
provided in the Base Year Rate Application. Cost
information is reported for the most recently
completed fiscal year, the current fiscal year, and the new base year. Information reported in each line item
represents the total combined costs for residential,
curbside recycling, yardwaste, commercial, transfer
station, and RRF services. Segregation of costs by
residential, curbside recycling, yardwaste, commercial, transfer station, and RRF services is not required.

Cost information includes:
• Allowable Costs
D Direct Labor (Line 5)
D Equipment Costs and Facility Costs (Line 6)
D Landfill Disposal Costs (Line 7)
D Office Salaries (Line 8)
D General and Administration Costs (Line 9)
D MRF Principal and Interest Payments
(El Dorado County) (Line 1 O)
D RRF Principal and Interest Payments
(El Dorado County) (Line 11)
• Pass Through Costs
D MRF Principal Payments (Line 15)
D RRF Principal Payments (Line 16)
D MRF and RRF Interest Expenses (Line 17)'
D Franchise Fees (Line 59)
D RRF Fund Credit (Line 18)
D Recycling Revenue Bonus (Line 19).

Definitions and specific components of these cost
categories are described in Exhibits 1-1 and 1-2,
in Section 1.
' For El Dorado County, interest on the MRF and RRF financing is an allowable cost.
2-2 Solid Waste Rate Setting Policies and Procedures Manual 170
By aggregating costs into these line items, the
JPA, and franchised hauler, can focus on major
changes without becoming distracted by large
changes in insignificant cost components. For
example, if licenses and fees doubled from
$10,000 in the current year to $20,000 in the base
year (i.e., a 100 percent increase), this might only
cause General and Administrative Costs to
increase by one percent, resulting in little impact
on the overall rate. Minor components of General
and Administrative Costs may decrease between
the current year and the base year, while others
may increase.

If one of the major cost line items in the
application changes at an unusual rate, then the
franchise hauler should be able to explain the
change. An unusual change in cost is any change
which is greater than the change in the U.S. City
Average Garbage and Trash Collection CPI. The
CPI used in the analysis should be based on the
most current actual information for the U.S. City
Average Garbage and Trash Collection CPI. This
information is available from the United States
Department of Labor, Bureau of Labor Statistics.

Cost information for the current year, and base
year, must account for any increases or decreases
in the number of customers served, or tons of
waste and recyclable material collected. Actual
increases in costs also must be included. For
example, if health benefit costs will increase in
the base year as a result of increases in premiums,
this additional cost should be included.

Cost information provided in the application
is used with operating profit to calculate the
franchise hauler's revenue requirement. The
revenue requirement is equal to the sum of the
following three categories:
• Total allowable operating costs
• Allowable operating profit
• Total pass through costs.

This revenue requirement is compared to
anticipated revenues. The JPA uses the operating
ratio (OR) method to establish revenue
requirements for setting rates.
b. Prepare Revenue Information
Revenue information is provided in this task.

Similar to cost information, revenues are reported
for the most recently completed fiscal year, the
current fiscal year, and the projected base fiscal year.

Revenues are reported in four (4) separate categories:
• Residential
• Commercial
• Transfer station and RRF revenues
• Recycled material sales.

Revenues in the base year are projected without
any changes in rates. Revenue projections are
prepared based on existing rates and the number
of customers which the franchise hauler
anticipates serving in the base year.

1. Determine Residential Revenues.

To calculate projected residential revenues
for the base year, enter the current monthly
rates by service type in the first column of
cells in lines 22 to 48, on page 2 of 3. Then
enter the projected number of accounts by
service type in the second column of cells
in lines 22 to 48, on page 2 of 3. Total
revenues for each service type are calculated
based on the following:

Multiplied lzJ
Equals
Current rate per month
Twelve months
Rate per year
Multiplied lzJ Projected residential accounts
Equals Revenues by service type.

Revenues by service type then are entered in
the third column of cells in lines 22 to 48,
on page 2 of 3. These values then are added
together, entered, and totaled in line 49.

Residential revenues should reflect all revenues
2-3
171
generated for providing curbside collection
services of refuse, recyclables, and yardwaste.

The number of accounts in each service
category may change throughout the year.

For example, some customers may request
one can service part of the year and an
additional can during the remainder of the
year. The average number of accounts by
service type should be used in these
calculations. In addition, the number of
accounts identified for these calculations
must agree with operating data provided in
Section VIII (page 3) of the application.

Multi-family can, cart, and bin services, and
mobile home park can, cart, and bin services,
should be included in residential revenues.

2. Determine Commercial Revenues.

Commercial revenue information is entered
in line 54 of page 2 of 3 of the application.

In the first column of this line, actual
revenues generated by commercial accounts
during the prior year are reported. This year
amount must reconcile with the financial
audit for that same year. Commercial
revenues for the current year are based on
actual revenue to-date plus an estimate of
the revenues that will be received through
the end of the fiscal year. Commercial
revenues in the current year should be
comparable to revenues in the prior year,
after taking into changes in accounts and
service levels.

Projected commercial revenues for the new
base year are entered in the third and fourth
columns. These amounts, net of any projected
uncollectible accounts, are based on the
estimated annual revenues received during
the current fiscal year plus any additional
revenues generated from additional accounts.

Operating data provided in Section VIII
(page 3) of the application should support any
service level changes.

In order to analyze changes in commercial
rates, rate information must be provided for
specific commercial services. These services are:

Bin Service (Compacted
and Uncompacted)
D 2 Yard Bin-once per week
D 3 Yard Bin - once per week
D 4 Yard Bin - once per week
D 5 Yard Bin - once per week
D 6 Yard Bin - once per week.

In the columns of lines 74 through 78, the
franchise hauler enters the rate for these
services for the prior year, the current year,
and the base year, respectively. Percentage
changes then are entered in columns 3 and

6. This information substantiates previously
approved changes in commercial rates.

3. Determine Allowance for Uncollectible
Accounts. The franchise hauler likely will
not be paid by all customers served. While
this amount is expected to be relatively
small, it must be accounted for in the
calculation of base year net revenues. These
amounts are reported in two places for each
service type: on line 50 for the allowance
for uncollectible residential accounts, and
line 53 for the allowance for uncollectible
commercial accounts.

These amounts can be calculated based on a
formula, such as one percent of anticipated
revenues, or based on actual experience.

Assumptions related to the projection of
uncollectible accounts must be documented and
included as a supplement to the application.

4. Determine Transfer Station and RRF
Revenues. Transfer station and RRF
revenues are included in the total revenue
calculation. In the first column of line 55,
actual revenues received during the most
recently completed fiscal year are reported.

In the second column of line 55, estimated
revenues for the current year are reported.

For the base year, transfer station and RRF
revenues are determined by the best estimate
of transfer station and RRF operations
during the new base year. The projected
revenues are reported in the third and fourth
columns of line 5 5 of the application.
2-4 Solid Waste Rate Setting Policies and Procedures Manual 172

5. Determine Revenues from Recycled
Material Sales. In addition to revenues
generated through residential and
commercial services, and from the transfer
station and RRF, additional revenues are
generated by selling recyclable materials
collected through the curbside re_cycling
program. The amount of recycling revenues
generated through the sale of these
materials is dependent upon the quantity
of material collected and the market price
for these materials. Both of these factors
are outside direct control of the franchise
hauler. Therefore, revenues generated by
recycled material sales are not subject to
an across-the-board rate changes. Revenues
generated from charging residential
customers for curbside recycling services
should not be included here, but should
be included as part of residential revenues
(#1 above).

In the first column of line 56, actual
revenues received during the most recently
completed fiscal year are reported. In the
second column of line 56, estimated
revenues for the current year are reported.

For the base year, revenues from recycled
material sales are determined by projecting
scrap prices for recycled materials and the
anticipated quantity of materials sold. The
projected scrap prices are multiplied by the
projected volume of materials to be sold
to determine projected recycled materials
sales revenues. These projected revenues are
reported in the third and fourth columns of
line 56 of the application.

6. Calculate Total Revenues. The calculation
of total revenue is as follows:

Total residential revenues (Line 51)
Plus Total commercial revenues (Line 54)
Plus Transfer station and
RRF revenues (Line 55)
Plus Recycled material sales (Line 56)
Equals Total revenues.

Total revenues are entered on line 57.
c. Prppare Operating Information
During this task, non-financial operating
information is compiled by the franchise hauler.

Operating information, requested in the application,
provides an important indicator of the franchise
hauler's performance. If costs are changing at an
unusual rate, operating data may provide some
explanation of these changes. For example, cost
increases could be attributed to the increased level of service provided (i.e., accounts served). The franchise hauler should provide the following information:
• Number of accounts
• Quantity of refuse tonnage collected
• Quantity of recycling tonnage collected
• Quantity of yard waste tonnage collected
• JPA bins provided.

Similar to cost data, the first year is "historical,"
the second year is the "current" year, and the third
year is the "base" year. Historical data are based
on actual annual operating statistics during the most
recently complete fiscal year and reflect the same
year used in the financial sections of the application.

Current year performance is based on performance
to-date plus estimated performance for the
remaining months of the current year. Projected
base year data represents the franchise hauler's best
projection of service levels during the new base year.

Year-to-year percentage changes then are
determined for each set of operating metrics. The
franchise hauler should be able to explain any
significant changes. A significant change in an
operating characteristic is an increase or decrease
of more than two (2) percent.

This information allows both the JPA, and the
franchise hauler, to monitor changes in the service
characteristics, estimate total revenues at existing
rates, and compare these to changes in total costs.

The franchise hauler should identify to the JPA
any operating information submitted as part of the
application that it considers confidential.
2-5
173
d. Calculate Allowable Operating Profit
For the historical year of actual data, the
franchise hauler will calculate the actual operating
ratio based on the formula below:

Divided bv
- Equals
Total allowable costs
Total allowable costs plus
Operating profit
Operating ratio.

These actual operating ratios on allowable costs
will reveal how well past base year projections
corresponded to actual results. Similarly, the
formula estimated above is used to calculate the
operating ratio for the current year (column 2).

The actual operating profit received by the
franchise hauler in the most recently completed
fiscal year is entered on line 13, column 1. The
estimated operating profit for the current fiscal
year also is entered on line 13, column 2.

To calculate the allowable operating profit in
the base year, the equation below is utilized:

Allowable operating costs
Divided by Operating ratio
Equals Allowable operating revenues
Minus Allowable operating costs
Equals Allowable operating profit.

The allowable operating profit is entered on line
13, columns 3 and 4 of the application.

In each base year, the operating ratio will range
as shown in Exhibit 1-1, which will help stabilize
rate changes and afford the franchise hauler an
incentive to reduce costs.
e. Determine Franchise Fee
The calculation of the franchise fee is not a
straightforward exercise because as revenue is
increased (e.g., via a rate change), so does the
amount of franchise fees increase because
franchise fees are based on a percent of gross
revenues. To calculate the franchise fee for the
base year requires the hauler to calculate the
franchise fee to be paid to each jurisdiction based
on the revenues after a rate change is applied.

Projected franchise fees should be entered on
line 59, columns 3 and 4 of the application.
f. Calculate Revenue Requirement
The revenue requirement establishes the level
of revenues needed to meet all allowable costs
and operating profit. This includes residential
and commercial waste and recycling costs, and
assumes a reasonable profit margin based on the
operating ratio calculation.

Total revenue requirement (without franchise
fees) is determined as the sum of:
• Allowable operating costs (Line 12)
• Allowable operating profit (Line 14)
• Pass through costs (Line 20).

The revenue requirement (without franchise fees)
is entered on line 21 of the application.
g. Calculate Net Surplus/Shortfall
and Percent Change in Rates
The net surplus/shortfall is determined based
on the following calculation:

Revenue requirement (Line 21)
Less Total revenues (Line 57)
Plus Residential and Commercial
Franchise Fees (Line :!2)
Equals Net surplus/shortfall (Line 60).

The projected amount of revenue generated
during the base year from the sale of recycled
materials was calculated in Step 1, #5 of
subsection b.; therefore, any increase or decrease
in revenues required must come from an increase
or decrease in rates.
2-6 Solid Waste Rate Setting Policies and Procedures Manual 174
If applicable, the percent change in existing
rates is calculated as follows:

Net surplus/shortfall (Line 60)
Divided by Total revenues without change
(Line 61)
Equals Percent change in rates (Line 62).

The percent change in rates is entered on line 62
of the application.
h. Calculate New Percentage
Rate Change and Rates
If applicable, the percentage rate change
identified on page 2 of 3, line 62 should be
entered on page 1 of 3, line 1 of the Base Year Rate
Application. Current residential rates for solid
waste collection should be entered on page 1 of 3.

The adjusted rates for each jurisdiction then are
calculated by multiplying the current rate by one
plus the rate change identified in line 1.

To determine new residential rates on page 1
of 3, column one should be added to column two
and the result should be entered in column three.

This column provides the new rate schedule.

Complete current and revised commercial rate
schedules should be provided by the hauler as an
attachment to the application.

1. Prepare and Submit Rate Application
The franchise hauler submits the completed Base
Year Rate Application to the JPA. The application
should include the following items:
• Management Representation Letter.

The management representation letter
transmits the application to the JPA, and
should provide a listing of included
documents. The letter should identify the
requested adjustment in rates and include
a discussion of specific issues which impact
new rates (e.g., significant increases in
labor costs). The letter should state that:

D Management reviewed and accepts
responsibility for the rate application
D The application is based upon
management's judgment of the most likely
set of conditions and course of action
D All significant relevant information
are made available
D Assumptions are reasonable and
are accurate.

An authorized representative from the franchise
hauler should sign and date the application.

This signature provides a certification of the
franchise hauler that the application is
complete, accurate, and consistent with the
instructions provided in this manual.
• Base Year Rate Application. The franchise
hauler should provide a Base Year Rate
Application, including completed application
forms and supporting documentation.

Supporting documentation includes the
current and proposed rate schedules for
residential and commercial customers.
• Supplemental Audited Financial
Information. For applications received after
2010, audited financial statements for the
most recently completed fiscal year should
be included, as well as other documentation
which support operating and financial data
provided in the application. Because audited
financial statements serve as base documents
for the application, statements of revenues,
expenses, and other reports contained in the
application shall be reconciled to the audited
financial statements to provide assurance
that all activities are accounted for.

Once the application materials have been
prepared, the franchise hauler submits
three (3) reproducible hard copies and
one disk copy formatted to the JPA's
specifications. They are submitted to
the JPA. The thirty (30) day review for
completeness will begin upon receipt of
the application.
2-7
175
B. Step 2 - Verify Completeness
of Rate Application
Responsibility: JPA
Timing: Completed within thirty (30) days
after the rate application is submitted
Tasks: a. Verify Financial Data and Format
b. Verify Supporting Documents
and Schedules
c. Notify Franchise Hauler.

Overview
During this step, the JPA ensures that the
application has been fully completed by the
franchise hauler and that the data provided are
consistent. During the 30-day period, the JPA will
obtain from the franchise hauler any information
necessary to complete the application.
a. Verify Financial Data and Format
The JPA staff reviews the application package
to determine if it is complete and ready for
analysis. Detailed analysis of the contents of the
application occurs during Step 3.

The JPA reviewer should determine the following:
• Has the applicant included all required forms?
• Are all forms complete?
• Are audited financial statements included?
• Are all financial calculations
mathematically correct?
b. Verify Supporting Documents
and Schedules
Various documents may be included in the
application package to support the rate change.

The purpose of these supporting documents
should be clearly identified by the franchise hauler.
c ~otify Fnnchise Hauler
If the application is complete, the JPA will notify
the franchise hauler that it will begin the process of
evaluating the application. If incomplete, the JPA
will attempt to obtain from the hauler additional
required information within the 30-day verification
period. A revision of rates shall not be authorized
until the l " day of the first calendar month
following a six (6) month period from the date
that an application is verified to be complete.

C. Step 3 - Review Rate Application
and Prepare Response
Responsibility: JP A
Timing: Completed within one and one half
(1 Yz) months after determining that
the application package is complete
Tasks: a. Review Actual and Projected
Revenue Requirements
b. Review Actual and Projected Revenues
c. Review and Verify Operating Ratio
d. Determine Components of
Requested Change in Rates
e. Review Performance Data
f. Request Additional Data and
Clarification, if Necessary
g. Document Staff Review.

Overview
During this step, JPA staff evaluates the entire
rate application. This review includes examining
significant changes in costs or operating
performance and evaluating explanations of
these changes provided by the franchise hauler.
a. Review Actual and Projected
Revenue Requirements
In this task, costs and operating profits are
reviewed and analyzed for reasonableness.

Reconciliations of costs to audited financial
statements are checked for consistency. Explanations
2-8 Solid Waste Rate Setting Policies and Procedures Manual 176
are sought from the franchise hauler for items
significantly different than would otherwise 1
normally be expected.

Percentage changes in costs for the three years
identified on the application should be calculated
and reviewed. Projections prepared from previous
years in prior Base Year Rate Applications are
compared with actual results. Costs are correlated
with operating collection efficiency statistics
provided by the franchise hauler.

Any unusual trends or variances in aggregate
areas should be explained by the franchise hauler.

An unusual increase would be a change in cost
which is greater than the change in the Trash and
Garbage Collection CPI, published by the Bureau
of Labor Statistics, and which cannot be attribured
to changes in the number of customers serviced or
tons of waste or recyclable materials collected. If
these unusual changes are not adequately explained
in the application, the JPA should request
additional clarification from the franchise hauler.

The JPA should review the allocation
methodology used by the franchise hauler to
allocate costs between ( 1) franchise areas that are
the subject of this manual, and (2) non-JPA areas
serviced by STR. At a minimum, the JPA should
check that allocations used to assign costs to
franchise area customers are reasonably consistent
with other operating metrics such as average
number of accounts and tons collected.
b. Review Actual and Projected Revenues
The JPA should review actual and projected
revenues in this task. Current rates provided in
the application are verified. Any changes in the
number of customers serviced should be identified
and explained by the franchise hauler.

The application requires the franchise hauler
to report three years of revenues: (1) actual prior
year, (2) estimated current year, and (3) projected
"base" year. For applications received after 2010,
the JPA should reconcile the most recent year
revenues with audited financial statements.

Revenues for the current year are compared with
year-to-date un-audited financial statements and
documentation supplied by the franchise hauler.

Projected revenues for the third, or "base" year,
are evaluated by the JPA for reasonableness.

Assumptions made by the hauler in preparing these
projections are reviewed. Revenues reported by the
franchise hauler should not include any rate changes
in the base year (year 3). Account information
included in the application is reviewed to determine
changes in the number of accounts served.

Allowances for uncollectible accounts also are
reviewed. These figures should be deducted from
total revenue projections. These allowances may
be based on a fixed percentage of total revenues
or on actual experience. Assumptions related to
allowances for uncollectible accounts should be
reviewed with the franchise hauler.

Revenues from recyclable material sales are
provided in the application. Amounts identified
in the prior (first) year provided should reconcile
with the financial audit. Amounts identified in
the current (second) year, the base (third) year
should be documented by the franchise hauler.

The JPA will review these projections to ensure
they are consistent with trends in recycling
collection costs, scrap values, processing costs,
as well as estimated diversion rates and tonnage.
c. Review and Verify Operating Ratio
The operating profit must be determined for the
base year. The JPA should calculate the projected
operating profit for the base year using the first
formula provided in Exhibit 1-1. For El Dorado
County, if the operating ratio is outside the 87 to 91
percent range, then the operating ratio should be
reset to 89 percent. If there are any errors by the
hauler in calculating the operating ratio, or allowable operating profits, these deficiencies are noted.
2-9
177
d. Determine Components of
Requested Change in Rates
The ]PA evaluates all costs, revenues, and
operating profits provided in the application to
determine components of the requested adjustment
in rates. This would include determining the
proportion of the requested adjustment in rates
which is due to changes in each of the following:
• Costs
• Residential revenues
• Commercial revenues
• Transfer station and RRF revenues
• Recyclable material sales revenues
• Operating profit (or loss).
e. Review Performance Data
The ]PA reviews and analyzes performance data,
which are included in the application (the number
of accounts and tons collected). Operating statistics
are reviewed to explain past historical trends and
justify future expenses. Both actual and percentage
increases are examined and any unusual changes
in performance are investigated to determine
their cause and effect on future cost performance.

Changes in accounts served, the number of routes,
tons collected, or direct labor hours generally
should correspond to changes in costs and revenues.
f. Request Additional Data and
Clarification, if Necessary
Throughout the analysis of the application, The
]PA may request clarification and/or additional
data from the franchise hauler to explain any
unusual changes in costs or operating performance.

The ]PA may have identified missing information,
or changes in the financial or operating data
between the three years which require clarification
or further explanation. The franchise hauler
should respond to the JPA's request for additional
information within two weeks. Responses will vary
depending on the specific requirements of the JP A.
g Document Staff Review
During this task, the ]PA prepares workpaper
documentation of the review of the Base Year
Rate Application.

D. Step 4 - Prepare Draft Report
and Final Report
Responsibility: JPA
Timing: Completed approximately three (3)
months after determining the
application package is complete
Tasks: a. Prepare Draft Report
b. Provide Franchise Hauler
with Copy of Draft Report
and Receive Comments
c. Prepare Final Report.

Overview
A draft report with recommendations from ]PA
staff is prepared and submitted to the franchise
hauler for review. The franchise hauler will review
the draft report. The franchise hauler will have
an opportunity to provide written comments
regarding the draft report. The ]PA will address
these comments and prepare a Final Report.
a. Prepare Draft Report
In this step, the ]PA prepares a Draft Report
including recommendations for a rate change.

The draft report includes the following sections:
• Executive Summary. This is a one or twopage summary of the review process and may include a chart showing current and proposed
rates, and the recommended rate change.
• Introduction and Background. The
section identifies any proposed changes in
services provided by the franchise hauler.

The section also identifies the review goals,
objectives, scope, and other relevant
background information. This section
of the report may provide a brief overview
2- 10 Solid Waste Rate Setting Policies and Procedures Manual 178
of the rate change process and a discussion
of significant historical rate issues. If
applicable, this report will document the
rate change proposed by the JPA.
• Analysis and Discussion of Rate
Application. This section of the report
will include a review of the analysis work
completed by JPA staff. This section
might include the following subsections:

D Review of Rate Changes, including a
discussion of interim year rate changes
since the last base year, the relationship
of these changes to changes in the
Garbage and Trash Collection CPI, and
an analysis of the significant components
of the change in rates (e.g., changes in
labor costs.)
D Analysis of Projected Costs, including a
discussion of any unusual changes in
costs which were discovered and
unresolved during the review process.

D Discussion of Service Issues, including
changes in frequency or type of curbside
service. If significant service issues are
not involved with a rate change, this
subsection would be omitted.
• Recommendations. JPA staff would
present its recommendations regarding
specific changes in rates in this section of
the document.
• Appendices. Appendices to the report
would include:

D Rate application
D Revised rate schedule
D Audited financial statements of the
franchise hauler
D Other relevant supporting materials
provided by the franchise hauler.
b. Provide Franchise Hauler with Copy of
Draft Report and Receive Comments
During this task, the franchise hauler will
review the drafr report. Each section of the report
should be reviewed to ensure that correct data are
included, the JPA's analysis is consistent with the
methodology, and if applicable the proposed rate
change is determined accurately.

If any issues are identified during this step,
the franchise hauler works with JPA staff to fully
explore and resolve these outstanding issues.

The franchise hauler then will prepare a written
response to the draft report. The response may
cover one or more of the following topics:
• If data discrepancies exist in any of the
areas noted in the prior task, the JPA
should be notified of these discrepancies.
• If the analysis conducted by the JPA can
be clarified or considered differently, this
information should be provided to the JPA.
• If the report is acceptable and no
clarification or comments can be offered,
this should be relayed to the JPA.

If no written response is received by the JPA
within two weeks of delivering the JPA's Draft
Report, then the JP A will assume that the
franchise hauler has no issues with the report.
c. Prepare Final Report
Any additional or outstanding comments or
issues raised during the franchise hauler's review
of the draft report are addressed. If necessary,
meetings are conducted with representatives from
the JPA and the franchise hauler. Final solutions
to outstanding issues are included in the report.

After final comments from the franchise hauler
have been considered, the Final Report package is
prepared. A copy of the Final Report is submitted
to the franchise hauler.
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179
E. Step 5 - Present Final Report
toJPABoard
Responsibility: JPA
Timing: Completed two (2) months prior to the
expected implementation of new rates
Tasks: a. Distribute Final Report and
Summary to JPA Board
b. Obtain JPA Board Recommendation.

Overview
During this step, the Final Report is presented
to the JPA Board for review, comment, and for a
recommendation to the three jurisdictions.
a. Distribute Final Report and
Summary to JPA Board
In this task, the Final Report is provided to
members of the JPA Board. The report is included
as an agenda item for JPA Board consideration
at a regular JPA Board meeting. The rate change
may be placed on either the regular or consent
calendar. The JPA Board Clerk should be notified
four ( 4) weeks prior to the meeting at which the
rate change will be considered and reports should
be provided two (2) weeks prior to the meeting.

The JPA Board Clerk should follow applicable
public noticing requirements, so affected customers
can participate at the Board meeting.
b. Obtain JPA Board Recommendation
The JPA Board members review the report
and proposed rate changes. If the JP A Board
agrees with the recommendations of JPA staff,
the JPA Board recommends the rate change and
rares to the three jurisdictions. If the JPA Board
does not agree with staff recommendations, the
report is returned to JPA staff for additional
analysis. If the JPA Board does nor recommend
the report and rates, the JPA Board should
specifically identify deficiencies.

F. Step 6 - Notify Customers of
Rate Hearing
Responsibility: City and Counties
Timing: Completed 10 days prior to City
Council and County Board meetings
Tasks: a. Prepare Notification of Public
Hearing for Rate Change.

Overview
During this step, the City and Counties notify
customers of the rare setting hearing.
a. Prepare Notification of Public Hearing
for Rate Change
Once the JPA Board has recommended the
report and rares, the jurisdictions will notify
customers chat a rate hearing will occur. This
notification will occur prior to the City and
County rate hearing(s) where each jurisdiction
will consider whether to approve the JPA
recommended rates.

G. Step 7 - Receive Approval from
City Council and County Boards
Responsibility: City and Counties
Timing: Completed one (1) month prior to
expected implementation of new rates
Tasks: a. Distribute Final Report to City
and Counties
b. Obtain City and County Approvals.

Overview
During chis step, the respective cities and
counties within the JPA present the Final Report
for review and approval by their respective city
council and county boards.
2-12 Solid Waste Rate Setting Policies and Procedures Manual 180
a. Distribute Final Report to
City and Counties
In this task, the Final Report is provided to
the City of South Lake Tahoe, El Dorado County,
and Douglas County for review and approval.

The report is included as an agenda item for
consideration at a regular public meeting. The
clerk of each respective jurisdiction should follow
applicable public noticing requirements.
b. Obtain City and County Approvals
The City of South Lake Tahoe City Council,
the El Dorado County Board of Supervisors, and
the Douglas County Board of Commissioners
review the report and recommended rate
changes. If the rate changes are approved, they
are implemented. 2
2 Douglas County's rates are subject to a voter-passed initiative that requires the approval of the voters if the rate will increase by ten percent or more. The rate adjustments provided for in this manual are therefore subject to the Douglas County Code and Douglas County will not be in violation of its agreement with STR if a rate adjustment is not approved because it fails to obtain the required voter approval.

H. Step 8 - Implement New Rates
Responsibility: Franchise hauler
Timing: Conducted following City Council
and County Board approval of the
new rates
Tasks: a. Implement Rate Change.

Overview
During this final step, the franchise hauler
implements new rates, if applicable.
a. Implement Rate Change
During this final task, the new rates are
entered into the franchise hauler's billing system
and included in the billing cycle. If a rate change
occurs during the middle of a billing cycle,
unbilled or overbilled amounts are calculated
and included in the next billing cycle.
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181
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2-14 Solid Waste Rate Setting Policies and Procedures Manual 182
Section 3
Interim Year Rate Setting Process
183

3. Interim Year Rate
Setting Process
This section describes each of the four (4) steps of the interim year rate setting process. Each step includes an overview of the step and a detailed description of the tasks required to complete the step. The section includes four (4) subsections:

A. Step 1 - Prepare and Submit Rate Application
B. Step 2 - Prepare Draft Report and Final Report
C. Step 3 - Receive Approval from City Council and County Boards D. Step 4 - Implement New Rates.

A. Step 1 - Prepare and Submit Rate Application
Responsibility: Franchise hauler
Timing: Completed four (4) months prior to the implementation of the new rates Tasks: a. Prepare an Interim Year Rate Application
b. Submit Application to JPA.

Overview
During this first step, the franchise hauler prepares the Interim Year Rate Application.

Blank application forms are provided in Appendix A (Exhibit A-2). Similar to the base year forms, these forms identify all areas to be completed with double outlined boxes. If data are to be entered in the form, the box has no shading. If a calculation is required, the box has light shading.
a. Prepare an Interim Year Rate Application

1. Report Changes in Landfill Disposal Costs. The first task is to provide prior year landfill disposal costs. Prior year landfill tipping fees per ton should be entered on line 1. Prior year landfill tonnage should be entered on line 2. The values entered on lines 1 and 2 should then be multiplied together and entered on line 3.

The franchise hauler estimates what landfill tipping fees and landfill tonnage will be for the next interim year. Projected interim year landfill tipping fees, per ton, are entered on line 4, and projected interim year landfill tonnage is entered on line 5.

The values entered on lines 4 and 5 then are multiplied together and entered on line 6.

The percent change in landfill disposal costs is determined as follows:
line 6 - line 3
line 3.

The result of this equation, rounded to the nearest one decimal place, is entered on line 7.
184

2. Explain Changes in Landfill Disposal
Costs. Any changes in either landfill tipping
fees or tonnage should be fully explained
in this task. For example, if a landfill closes
and the franchise hauler begins using a new
landfill with higher tipping fees, this
information should be disclosed.

Documents which suppon or further explain
any change in costs are provided, as
appropriate. This might include formal
announcements of tipping fee increases
provided by the landfill operator, which will
be paid directly by the franchise hauler.

3. Certify Application. An authorized
representative from the franchise hauler
should sign and date the application.

This signature provides certification by
the franchise hauler that the application
is complete, accurate, and consistent with
the instructions provided in this manual.

At this point, the application should be
complete. The application is submitted
to the JPA for review and calculation of
the rate change, as described in the
following subsection.
b. Submit Application to JPA
The completed application is sent to the JPA
for review and calculation of new rates. The
franchise hauler's application does not include
any new rates; these are determined by the JPA
during Step 2.

B. Step 2 - Prepare Draft Report
and Final Report
Responsibility: JPA
Timing: Completed within two (2) months
of receiving a completed Interim Year
Rate Application
Tasks: a. Identify Consumer Price Index
b. Complete Interim Year Rate Change
Worksheet and Determine New Rates
c. Request Additional Data and
Clarification, if Necessary
cl. Prepare Draft Report
e. Receive Comments from
Franchise Hauler
f. Prepare Final Report.

Overview
The Interim Year Rate Change Worksheet is
used to calculate new interim year rates. This
document is prepared by the JPA after the
franchise hauler has submitted an Interim Year
Rate Application. Interim year rate changes .are
based on a weighted increase in operating and
landfill disposal costs. Inflators for this process
include changes in the Consumer Price Index
(Garbage and Trash Collection CPI) and changes
in landfill disposal costs (documented by the
franchise hauler in the Interim Year Rate
Application). Exhibit A-3 in Appendix A
includes a sample of the two-page worksheet to
be completed by JPA staff.
a. Identify Consumer Price Index
The annual change in the U.S. City Average,
Garbage and Trash Collection, Consumer Price
Index (CPI) provides the single largest factor for
determining new rates during interim years.

Eighty-five (85) percent of the actual change in this
index during the twelve months prior to the date
the Interim Year Rate Application is submitted
to the JPA is used for the actual change in the
methodology. Because a projected change in the
3-2 Solid Waste Rate Setting Policies and Procedures Manual 185
CPI is not produced, eighty five (85) percent of the
actual change in CPI for the prior twelve months is
used as the CPI for the interim year. The period
used by the J PA and franchise hauler will be June
to June. This information is available from the
United Scates Department of Labor, Bureau of
Labor Statistics.
b. Complete Interim Year Rate Change
Worksheet and Determine New Rates
JPA staff prepares the Interim Year Rate
Change Worksheet and calculates new rates during
this task. This worksheet requires information
from the most recent Base Year Rate Application
and the current Interim Year Rate Application.

This worksheet also requires the U.S. City Average
Garbage and Trash Collection CPI information
collected in task a. The worksheet is used to
calculate the new rate change.

1. Identify Prior Base Year Operating Costs
(Other Than Landfill Disposal). Operating
costs, excluding landfill disposal costs, are
those items which can be reasonably
managed by the franchise hauler in order to
minimize future rate increases. Changes in
these costs should approximate the change
in the U.S. City Average Garbage and Trash
Collection CPI.

In order to streamline the interim year
process, operating costs are adjusted based
on an annual change in the CPI instead of
projected changes in each cost item. This
eliminates the need to conduct a derailed
review of the franchise hauler's audited
financial statements.

Landfill disposal costs are included in total
allowable costs (line 1). Because of chis, landfill
disposal costs must be deducted to determine
total operating costs (ocher than landfill
disposal) in the base year (line 1 plus line 2
plus line 3 minus line 4). This total then is
entered on line 5 of the worksheet and is used
to calculate the weighted change in operating
costs (ocher than landfill disposal).

2. Identify Prior Base Year Landfill Disposal
Costs. Landfill disposal coses are chose items
over which the franchise hauler has liccle or
no control. Adjustments to landfill disposal
costs during an interim year are based on the
franchise hauler's projections, not projected
changes in the CPI. Total landfill disposal
costs in the prior base year must be
calculated to determine the weighting of
operating costs to landfill disposal coses.

Landfill disposal coses from the base year are
entered in line 6.

3. Calculate Weightings. Total operating costs
(other than landfill disposal) (line 5) plus
total landfill disposal costs (line 6) equals the
total base year revenue requirement. This
total is entered on line 7 of the worksheet.

A weighting for both operating costs (other
than landfill disposal) and landfill disposal
costs is calculated as follows:

Operating Costs
(Other Than Landfill Disposal):

Divided by
Total operating costs (Line 5)
Base year revenue
requirement (Line 7)
Equals Operating costs (other than
landfill disposal), as a percentage of
base year revenue requirement.

This percentage figure is entered on line 5,
column 2, and line 17.

Landfill Disposal Costs:

T oral landfill disposal costs (Line 6)
Divided by Base year revenue
requirement (Line 7)
Equals Landfill disposal costs, as a percentage
of base year revenue requirement.

This percentage figure is entered on line 6,
column 2, and line 20.

4. Calculate Projected Change in Consumer
Price Index. The percent change in the
prior year June to June U.S. City Average
Garbage and Trash Collection, CPI is entered
3-3
186
on line 8. This change in CPI then is adjusted
by multiplying the figure on line 8 by 85
percent and the result entered on line 9.

This adjusted projection of the change in CPI
also is entered on line 18 of the worksheet.

5. Enter Landfill Disposal Cost Information
from Application. The figures on lines 1
through 7 of the application (actual and
projected landfill disposal costs) are entered
in lines 10 though 16, respectively, of the
worksheet. Any significant changes in these
costs are documented by the franchise
hauler. A significant change would be any
increase greater than the change in the CPI,
or a decrease of any amount. If a significant
change has not been adequately explained,
additional information is requested from the
franchise hauler.

6. Review Mathematical Accuracy. The
mathematical accuracy of the franchise
hauler's totals for T oral Prior Year Landfill
Disposal Costs (line 12), and Total Projected
Interim Year Landfill Disposal Costs (line
15) are checked during this task. The percent
change in landfill disposal costs should be
calculated as follows:
line 15 - line 12
line 12.

After the percentage change in landfill
disposal costs has been verified, this figure is
entered in lines 16 and 21 of the worksheet.

7. Calculate Weighted Change in Operating
Costs (Other Than Landfill Disposal).

Figures should have been entered on line 17,
operating costs (other than landfill disposal) as
a percent of base year revenue requirements,
and line 18, the adjusted projected change in
CPI, based on calculations completed in
previous tasks. To obtain the weighted change
in operating costs (other than landfill disposal),
line 17 is multiplied by line 18 and the result
entered on line 19.

8. Calculate Weighted Change in Landfill
Disposal Costs. Line 20, landfill disposal
costs, as a percent of base year revenue
requirements, and line 21, projected change
in landfill disposal costs, should now have
an entry based on calculations completed
in previous tasks. To obtain the weighted
change in landfill disposal costs, line 20 is
multiplied by line 21 and the result entered
on line 22.

9. Calculate Total Change in Cost. To
calculate the total percentage change in costs,
line 19, the weighted change in operating
costs (other than landfill disposal), is added
to line 22, the weighted change in landfill
disposal costs, and the result entered on lines
23 and 26, total percent change in costs.

10. Calculate Franchise Fee Adjustment. In
order to account for changes in the franchise
fee resulting from a change in rates, an
adjustment is made to the percentage change
in total costs which was entered on lines 23
and 26. The adjustment factor is equal to
one minus the franchise fee (1.00 - __ =
__ ).These values should be entered on
lines 24 and 27.

11. Calculate Percent Change in Existing Rates.

The final task in this step is to calculate the
percent changes in existing rates. To determine
these changes, line 23 (total percent change
in costs) is divided by line 24 (franchise fee
adjustment), line 26 (total percent change
in costs) is divided by line 27 (franchise fee
adjustment), and the results are entered on
lines 25 and 28. The values on lines 25 and 28
should be greater than the value on lines 23
and 26. The difference accounts for the
change in franchise fees.

12. Enter Rate Change. The rate change
identified in lines 25 and 28 should be
entered on Page l , line 1 of the worksheet.

13. Calculate New Residential Rates. Current
jurisdiction-specific rates for residential solid
waste collection are entered in column one
on page 1. The new rates (in column three)
then are calculated by multiplying the current
rate by one plus the percentage rate change
identified on line 1. The rate adjustment (or
the difference between the rate in column one
and the rate in column three) is entered in
column two.
3-4 Solid Waste Rate Setting Policies and Procedures Manual 187
To verify new rates, column one, lines 2
through 4, should be added to column two
and the result should equal the rate in
column three. This third column provides
the new schedule of residential rates.

The JPA should separately calculate new
commercial rates using the percentage
change in rates.
c. Request Additional Data, and
Clarification, if Necessary
If necessary, JPA staff requests clarification
and/or additional data from the franchise hauler.

The request is to clarify the franchise hauler's
assumptions for projected changes in landfill disposal
costs and to indicate the expected change in rates.
d. Prepare Draft Report
The JPA staff prepares a high level draft report
with recommendations of new rates for JPA
Board consideration. This report should be brief
and include the following sections:
• Executive Summary. This is a summary
of the review process and includes a chart
showing current and proposed rates, and
the recommended rate change.
• Background. This section of the report
provides a brief overview of the rate
change process and discussion of any
significant historical issues.
• Analysis and Discussion oflssues. This
section includes a review of the analysis
work completed by JPA staff. This section
also includes a discussion of any significant
changes in landfill disposal costs and an
identification of the change in CPI
assumed by the JPA.
• Recommendation. The JPA staff presents
its recommendation regarding any change
in rates in this section.
• Attachments. Attachments to the report
would include:

D Rate application
D Revised rate schedule(s)
D Interim Year Rate Change Worksheet.

After the draft report and recommendations
have been prepared, the document should be
submitted to the franchise hauler for comment
and review.
e. Receive Comments from
Franchise Hauler
The franchise hauler reviews the draft report
to ensure that any calculations and analyses
completed by JPA staff are fair, reasonable, and
justified. The franchise hauler reviews the draft
report to ensure the following:
• Correct data are included
• JPA staff analysis is accurate and fair
• Rate changes are reasonable and acceptable.

If any issues are identified during this step,
the franchise hauler works with JPA staff to fully
explore and resolve these outstanding issues.

A written response to the draft report is then
prepared. The response may cover one or more
of the following topics:
• Data discrepancies in any of the areas
noted in the prior task
• Clarification for the JPA or alternative
analysis of the application
• Responses to the JPA's request for
additional information.
f. Prepare Final Report
The JPA prepares the Final Report incorporating
comments from the franchise hauler, as
appropriate. Any comments or issues raised during
the franchise hauler's review of the draft report are
addressed. If necessary, representatives from the
JPA and the franchise hauler should meet to resolve
issues. The report should reflect final solutions to
outstanding issues.
3-5
188
After final comments from the franchise hauler
have been considered, the JPA prepares the Final
Report. The JPA should submit a copy of the
Final Report to the franchise hauler.

C. Step 3 - Receive Approval from
City Council and County Boards
Responsibility: City and Counties
Timing: Completed one month prior to
expected implementation of new rates
Tasks: a. Distribute Final Report to City
and Counties
b. Obtain City and County Approvals.

Overview
During this step, the respective cities and
counties within the JPA present the Final Report
for review and approval by their respective city
council and boards.
a. Distribute Final Report
to City and Counties
In this task, the Final Report is provided to the
City of South Lake Tahoe, El Dorado County,
and Douglas County for review and approval.

The report is included as an agenda item for
consideration at a regular public meeting. The
clerk for each applicable jurisdiction should follow
applicable public noticing requirements so affected
customers can participate at the public meetings.
b Obt· in City and ( ounty Approv·tls
The City of South Lake Tahoe City Council,
the El Dorado County Board of Supervisors, and
the Douglas County Board of Commissioners
review the report and recommended rate
changes. If the rate changes are approved, they
are implemented. If the rate changes are not,
deficiencies are noted, and the report is returned
to the JPA. Step 3 is then repeated. '
D. Step 4- Implement New Rates
Responsibility: Franchise hauler
Timing: Conducted following the approval
of the new rates by the City Council
or County Boards
Tasks: a. Implement Rate Change.

Overview
After new rates have been approved by City
Council and County Boards, the final step in the
process is to implement the new rates.
a. Implement Rate Change
During this final task, the franchise hauler
enters the new rates into their billing system and
includes the new rates on the next appropriate
customer invoice. If a rate change occurs during
the middle of a billing cycle, unbilled or
overbilled amounts are calculated and included in
the next billing cycle.
' Douglas County's rates are subject to a voter-passed initiative that requires the approval of the voters if the rate will increase by ten percent or more. The rate adjustments provided for in this manual are therefore subject to the Douglas County Code and Douglas County will not be in violation of its agreement with STR if a rate adjustment is not approved because it fails to obtain the required voter approval.
3-6 Solid Waste Rate Setting Policies and Procedures Manual 189
Appendix A
Blank Forms and Worksheets
190
Appendix A
Blank Forms and Worksheets
Exhibits A-1 through A-4, on the following pages, include blank base year rate application forms, interim year rate application forms, interim year rate change worksheets, and Consumer Price Index (CPI) percent change calculation example.

This appendix is organized as follows:
• Exhibit A-1 - Base Year Rate Application
• Exhibit A-2 - Interim Year Rate Application
• Exhibit A-3 - Interim Year Rate Change Worksheet.
• Exhibit A-4 - Consumer Price Index (CPI) Percent Change Calculation Example. 191
Exhibit A-1
Sample Bose Year Rote Application
Base Year Rate Application
Summary

1. Rate Ch:snq<'
Percent Rate Change Requested (City of South Lake Tahoe and Douglas County) Percent Rate Change Requested (El Dorado County)
Ram Schedule
(per a.mlomer, per morth) Current Ram Ram AdJU!!!!!Ont New Rate 2 Crty of Sou1h Lake Tahoe
2 1 Unlimil8d M<Vic:e

2.2 Mandabld pockup pet' 321111llon can/bag

2.3 Mandabld ptekup per cubic yard
2 4 Ouaified •nor ram
2 5 HouM •rvice • I can

26. HouseMrvice · 2cana
2 7 House service ~ 3 cans

2.8 Residential · Al other aerv!Cff
3 Oouglas Courrty

3. 1 I , 3211111on can
3 2 2. 321111lon cans

3.3 3, 321111lon cans

3.4 4, 321111lon cans
3 5 One exn 321111lon ctn (aloo the ... oonal Mrvlc<t rate)

3.11 On-cal 3211111on can biled monthly/01Teara

3. 7 Per aJbtc yard
3, 8 1, "5-galon can

3. 9 2, "5-galon cans

3.10 3, "5-galon cans
3 11 One exn 45-galon can (aloo the Maoorml Mnnce ram)
3 12 On-cal 45-galon can biled monthly/arrears

3. 13 Residenoal · Al otlltr Mrvoces
El Dorado County
s •
•
p 'QE
41 4.2 u--Mandated pockup pet' 32.galon can/bag
4 3 Manctabld ptekup P« cubic yard

4.4 Qualifiedaenornne
4 5 HouM •rvice Pef'Cln

4.6 R-noal · Al otlltr aervoces r I' I' I To tilt best of my knowledge, the data and 1nforma1JOn in 1h1t appficallOn 10 compltm. accurate, and consktent Wllh tilt 1nslruciions provided by the Soulh Lake Tahoe BaS1n Wasm Management Authonty Name nt1o
Date
Fiscal Year:

A-2 Solid Waste Rate Setting Policies and Procedures Manual