Agenda packet — South Lake Tahoe City Council, September 12, 2023 (part 1 of 4)

City Council
Cristi Creegan, Mayor
Cody Bass, Mayor Pro Tem
John Friedrich, Councilmember
Tamara Wallace, Councilmember
Scott Robbins, 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.

City of South Lake Tahoe
City Council
Meeting Agenda
Tuesday, September 12, 2023 at 9:00 am
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe 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, YouTube at https://www.youtube.com/channel/UC3LYne8Ih-kTPLnnuyJW9SQ/live and via ZOOM at this link https://us06web.zoom.us/j/88436938069
A public agenda packet is available for review at City Hall, 1901 Lisa Maloff Way, on the City 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: 884 3693 8069 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 1 1. Proclamation Recognizing September 2023 as "National Suicide Prevention and Action Month"

2. Proclamation Recognizing September 17-23, 2023 as "National Constitution Week" will be made available for public inspection during normal business hours at the City Clerk's Office located at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe [Government Code Section 54957.5(b)]. Written comments will not be read out loud during the meeting.

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

Contact the City Clerk at (530) 542-6005 at least 48 hours in advance of the meeting for assistance [28 CFR 35.102.35.104 ADA Title II and Brown Act Government Code Sections 54953.2, 54954.1, 54954.2, and 54957.5]
Spanish Interpretations: The public may access Spanish interpretation using the ZOOM link listed on the front of the Agenda from an internet device (smartphone, laptop, tablet, home computer) with audio capabilities and selecting the Spanish language option. Persons without an internet device may attend the meeting in-person and a device will be provided while supplies last. Requests for interpreter services to offer public comment may be made by contacting the City Clerk.

Call to Order/Pledge of Allegiance
Roll Call
Closed Session Report
Proclamations
Requested Action / Suggested Motions: Issue a Proclamation to Angie Regan of Peace Love Tahoe, Recognizing September 2023 as "National Suicide Prevention and Action Month" Responsible Staff Member(s): Susan Blankenship, City Clerk Item 1 - Executive Summary.pdf
Proclamation - National Suicide Prevention and Action Month.docx Requested Action / Suggested Motions: Issue a Proclamation to the Lake Tahoe Chapter of the Daughters of the American Revolution recognizing September 17-23, 2023 as "National Constitution Week".

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

4. Investment Portfolio Report - June 30, 2023

5. Fiscal Year 2023-2024 Investment Policy and Authority

6. Fiscal Year 2022-23 Quarterly Financial Status Report - Quarter Ending June 2023

7. Ordinance Establishing Residential Parking Permit Program (Second Reading)

8. Ordinance Establishing Chain Control Zone (Second Reading) Pass a Motion to adopt the Consent Agenda in one motion except as indicated at each item.

Requested Action / Suggested Motions: Pass a Motion approving the August 8, 2023, City Council meeting minutes.

Responsible Staff Member(s): Susan Blankenship, City Clerk Item 3 - Executive Summary.pdf
08 08 2023 Minutes.pdf
Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member(s): Olga Tikhomirova, Director of Finance Item 4 - Executive Summary.pdf
01-Staff Report - Investment Report Jun 2023.docx
02-Operations Cash 06 30 2023.pdf
03-Fiscal Agent 06 30 2023.pdf
04-Graph 06 30 2023.pdf
05-Cash June 2023.pdf
Requested Action / Suggested Motions: Pass a Resolution delegating investment authority to the City Treasurer and adopting the City Investment Policy for the fiscal year from October 1, 2023 to September 30, 2024.

Responsible Staff Member(s): Olga Tikhomirova, Director of Finance Item 5 - Executive Summary.pdf
01-Staff Report - Investment Policy 23-24.docx
02-Resolution_Investment_Policy 2023_2024.docx
03-Investment Policy - 2023-2024 (Exh. A to Reso).pdf
04-Investment Policy - 2023-2024 reline.pdf
Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member(s): Andrew Black, Financial Services Supervisor Item 6 - Executive Summary.pdf
01-Staff Report - FY 2022-2023 Quarterly Budget
02_FY 2022-23 Qtrly Budget Report June 2023.pdf
Requested Action / Suggested Motions: Pass an Ordinance amending South Lake Tahoe City Code, Title 4, Chapter 4.25, Article V (Stopping, Standing and Parking) by adding Section 4.25.365 (Residential Parking Permit Program)
CEQA Determination: This project is categorically exempt from environmental review under CEQA Guidelines section 15301(c) (Existing Facilities) because the Ordinance addresses parking regulations on existing roadways.

Responsible Staff Member(s): Anush Nejad, Director of Public Works and David Stevenson, Chief of Police
Item 7 - Executive Summary.pdf
01-Staff Report - Ordinance for Residential Permit Parking Program.docx 02 - Residential Parking Permit Program Ordinance.docx
03-Proof of Publication.pdf
Requested Action / Suggested Motions: Pass an Ordinance amending South Lake Tahoe City 3 9. Ordinance Establishing Angle Parking Zones (Second Reading)

10. Hazardous Fuel Reduction Agreement with Mountain Enterprises, Inc.

11. Ratification of California Department of Alcoholic Beverage Control Grant Application and Award

12. Appropriation for Airport Maintenance and Repairs of Pavement and Facilities Code, Title 4, Chapter 4.25, by adding Article IX (Chain Control Zone).

Responsible Staff Member(s): Anush Nejad, Director of Public Works and David Stevenson, Chief of Police
Item 8 - Executive Summary.pdf
01 - Staff Report - Chain Control Ordinance.docx
02 - Chain Control Ordinance.docx
03 - Proof of Publication.pdf
Requested Action / Suggested Motions: Pass an Ordinance amending City of South Lake Tahoe City Code section 4.25.420 to establish angle parking on the east side of Ski Run Boulevard from David Lane to Regina Road and removing outdated angle parking areas.

CEQA Determination: The actions proposed in this item are exempt from review under CEQA Guidelines section 15301 (Existing Facilities) because the Ordinance addresses parking striping and regulations on an existing roadway.

Responsible Staff Member(s): Anush Nejad, Director of Public Works and David Stevenson, Chief of Police
Item 9 - Executive Summary.pdf
01 - Staff Report - Angle Parking Ordinance.docx
02 - Ordinance - Angle Parking.docx
03 - Proof of Publication.pdf
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the City Manager to execute a professional services agreement with Mountain Enterprises, Inc. in an amount not to exceed $136,969.50 for Lake Tahoe Airport Hazardous Fuels Reduction Project CEQA Determination: The Forest Practice Actâ€™s regulatory scheme has been certified for exemption from CEQAâ€™s requirements for preparation of an Environmental Impact Report. A Timber Harvest Plan in Title 14 of the California Code of Regulations is functionally equivalent to an Environmental Impact Report under the California Environmental Quality Act under Public Resources Code section 21080.5. Because the subject area is within a Fire Hazard Severity Zone Map, it is subject to the forest fire prevention exemption in California Code of Regulations, Title 14, section 1038.3, from the requirement to prepare a Timber Harvest Plan. This exemption is being submitted to Cal Fire for review and approval.

Responsible Staff Member(s): John Dickinson, Airport Manager Item 10 - Executive Summary.pdf
01 - Staff Report - Airport Fuel Reduction.docx
02 - Mountain Enterprises Agreement.pdf
03 - Mountain Enterprises Bid.pdf
Requested Action / Suggested Motions: Pass a Resolution ratifying the application, authorizing the Chief of Police to accept and execute agreement, budget, and reimbursement of grant award by California Department of Alcoholic Beverage Control in Amount up to $98,136.00 to facilitate extra enforcement and education efforts for alcohol-related offenses for State fiscal year 2023/2024, effective July 1, 2023
Responsible Staff Member(s): David Stevenson, Chief of Police Item 11 - Executive Summary.pdf
01-Staff Report - ABC Grant.docx
02-Resolution - ABC Grant 23-24.docx
03 GRANT AGREEMENT.pdf
04-Exhibits to ABC Grant Agreement
Requested Action / Suggested Motions: Pass a Resolution authorizing the Finance Director to 4 13. Fire Station 3 Renovation or Replacement Options

14. Chateau at the Village and Zalanta Project Update

15. Supplemental Commercial Linkage Fee Analysis
appropriate $150,000 from airport available fund balance into the airport expenditures for winter repair and general facilities maintenance.

CEQA Determination: The project is exempt from review under CEQA Guidelines section 15301(d) (Existing Facilities - restoration or rehabilitation of deteriorated or damaged facilities to meet current standards of public health and safety).

Responsible Staff Member(s): John Dickinson, Airport Manager Item 12 - Executive Summary.pdf
01-Staff Report - Airport Maintenance Pavement and Facilities.docx 02-Resolution-Budget Appropriation for Airport Maintenance Regular-Unfinished Business
Requested Action / Suggested Motions: Pass a Motion to provide direction to the City Manager on whether to (A) Make minor renovations to 2nd floor only of Fire Station 3 for an estimated cost of $500,000; (B) Renovate Fire Station 3 to update living quarters including Building Code and ADA upgrades for an estimated cost of $3.5 million; (C) Begin planning to construct a new two-story fire station behind Fire Station 3 for an estimated cost of $19.25 million; or (D) Begin planning to construct a new one-story fire station on the adjacent Bank of Montreal site for an estimated cost of $19.75 million.

CEQA Determination: For Options A and B, this project is categorically exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines 15301 (Existing Facilities) because it consists of the repair or minor alteration of an existing public structure involving negligible or no expansion of existing or former use. For Options C and D, a CEQA environmental clearance will be required. Direction to move forward with planning for Options C and D are statutorily exempt from CEQA under CEQA Guidelines section 15262 (feasibility and planning studies for possible future actions which the City has not yet approved, adopted, or funded).

Responsible Staff Member(s): Anush Nejad, Director of Public Works and Jim Drennan, Fire Chief Item 13 - Executive Summary.pdf
01-Staff_Report_-_Fire_Station_3_Options.docx
02 - Fire Station 3 Condition Assessment.pdf
03 - Fire Station 3 2nd Story Renovation Estimate Nov 22.pdf 04 - Fire Station 3 Space Needs.pdf
05 - South Lake Tahoe Site Layout Options C and D Floor Plans.pdf 06 - Estimates of Probable Cost - Option D.pdf
07 - Bank of Montreal Property.pdf
08- Fire_Station_3_Update_Presentation.pptx
Requested Action / Suggested Motions: Receive presentation and pass a motion to provide direction to the City Manager regarding potential public financing options (direct financial contributions, commitment to fee reductions, creation of a Mello-Roos Community Facilities District and special tax assessment to support bond sales, tax increment financing (TIF) district, enhanced Infrastructure Financing District (EIFD), and Infrastructure and Revitalization Financing District (IRFD).

Responsible Staff Member(s): Hilary Roverud, Director of Development Services Item 14 - Executive Summary.pdf
01-Staff Report - Chateau.docx
02 - Presentation.pdf
03-Market conditions and project challenges summary
Requested Action / Suggested Motions: Pass a Motion providing direction to the City Manager to not prepare a commercial linkage fee ordinance at this time.

Responsible Staff Member(s): Zach Thomas, Housing Manger 5 16. California Department of Housing and Community Development's Prohousing Designation Program

17. Affordable Housing Waitlist and Rental Registry Discussion

18. Financial Policy Amendments Regarding Cell Phones, Local Training and Meetings, Procurement, Grant Funding and Compliance, Travel, and Preserving Capital Investments, and New Financial Policy - Leases and Subscription Based Information Technology Arrangements (SBITAs)

19. Snow Removal Operations Agreement with Trella Tahoe, Inc.

Item 15 - Executive Summary.pdf
01-Staff_Report_-_Commercial_Linkage.docx
02-Supplemental_Linkage_Analysis.pdf
03-Local Housing Funding Feasibility Study.pdf
Regular-New Business
Requested Action / Suggested Motions: Pass a Resolution authorizing the City Manager to submit an application for participation in the California Department of Housing and Community Development's Prohousing Designation Program.

Responsible Staff Member(s): Jessica Wackenhut Lomeli, Associate Housing Planner Item 16 - Executive Summary.pdf
01-Staff Report - Prohousing Designation.docx
02-Prohousing Designation Program Application.pdf
03-Resolution - Prohousing.docx
Requested Action / Suggested Motions: Pass a Motion to provide direction to the City Manager on:
(1) whether to conduct affordable housing waitlist monitoring and reporting; and (2) whether to bring back an ordinance to require registration of rental properties.

Responsible Staff Member(s): Zach Thomas, Housing Manager Item 17- Executive Summary.pdf
01-Staff Report - Affordable Housing Waitlist and Rental Registry.docx 02-Affordable Properties Waitlist.pdf
Requested Action / Suggested Motions: Pass a Resolution amending financial policies regarding Cell Phones, Local Training and Meeting, Procurement, Grant Funding and Compliance, Travel, and Preserving Capital Investments, and adopting New Financial Policy - Leases and Subscription Based Information Technology Arrangements (SBITAs)
Responsible Staff Member(s): Andrew Black, Financial Services Supervisor, Lori Marino, Principal Management Analyst and Olga Tikhomirova, Finance Director Item 18- Executive Summary.pdf
01-Staff Report - Financial Policy Amendments and New Policy.docx 02-Resolution - Financial Policy Amendments and New Policy.docx 03-CSLT Cell Phones Policy Redline.pdf
04-CSLT Cell Phones Policy (Exh. A to Reso).pdf
05-CSLT Local Training and Meeting Policy Redline.pdf
06-CSLT Local Training and Meeting Policy (Exh. B to Reso).pdf 07-CSLT Procurement Policy Redline.pdf
08-CSLT Procurement Policy (Exh. C to Reso).pdf
09-CSLT Grant Funding Compliance Policy Redline.pdf
10- CSLT Grant Funding Compliance Policy (Exh. D to Reso).pdf 11-CSLT Travel Policy Redline.pdf
12-CSLT Travel Policy (Exh. E to Reso).pdf
13-CSLT Preserving Capital Investments Redline.pdf
14-CSLT Preserving Capital Investments (Exh. F to Reso).pdf 15-CSLT Leases and SBITAs Policy (Exh. G to Reso).pdf
Requested Action / Suggested Motions: Pass a Resolution amending Fiscal Year 2023-2024 budget and authorizing and directing the Mayor to execute a contract with Trella Tahoe, Inc. for 6 20. Agenda Planning Calendar
snow removal services at the Airport, Fire Department, Police Department, and Fire Rescue Facility, sidewalks not maintained by City Park forces, plus on-call service as needed for a term of November 1, 2023 to April 30, 2024 in an amount not to exceed $385,390.00.

CEQA Determination: The Project is categorically exempt from review under CEQA Guidelines section 15301 (Existing Facilities) because it consists of the operation of existing public facilities and mechanical equipment involving negligible or no expansion of use.

Responsible Staff Member(s): John Dickinson, Airport Manager and Anush Nejad, Public Works Director
Item 19- Executive Summary.pdf
01 - Staff Report - Snow Removal Contract.docx
02-Resolution for Snow Operations.docx
03- Snow Removal PSA
04-Trellas Bid.pdf
05-Sidewalk Map
06 - Presentation.pptx
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(s): Joseph Irvin, City Manager Item 20- Executive Summary.pdf
APC - 09 07 2023.pdf
Updates and Announcements (City Attorney, City Clerk, City Manager) Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Adjournment
I, Susan Blankenship, City Clerk for the City of South Lake Tahoe, declare that the foregoing agenda for the Tuesday September 12, 2023 meeting of the City of South Lake Tahoe City Council was posted and available for review on Thursday, September 7, 2023 at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe, CA 96150. The agenda was also available on the City website at https://www.cityofslt.us.

Signed September 7, 2023
\\sb\\
Susan Blankenship, Elected City Clerk
7 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:1
Agenda Item: Proclamation Recognizing September 2023 as "National Suicide Prevention and Action Month"
Executive Summary: On August 8, 2023, City Council approved the dafting of this Proclamation.

Requested Action / Suggested Motions: Issue a Proclamation to Angie Regan of Peace Love Tahoe, Recognizing September 2023 as "National Suicide Prevention and Action Month" Responsible Staff Member: Susan Blankenship, City Clerk Reviewed and Approved By: Susan Blankenship, City Clerk Attachments:

Proclamation - National Suicide Prevention and Action Month.docx 8 City of South Lake Tahoe
Proclamation
Recognizing September 2023 as
“National Suicide Prevention & Action Month”
Whereas; the “National Suicide Prevention & Action Month” Proclamation was created to raise the visibility of mental health and proactive suicide prevention resources in our community. We also want to start the conversation, destigmatize it, and help connect people with the appropriate support services; and
Whereas; according to the American Foundation for Suicide Prevention (A.F.S.P.), suicide is the second leading cause of death among individuals between the ages 10 and 34 with more than 48,000 people dying by suicide annually in the United States; and Whereas; according to Hope For The Day (H.F.T.D.), with an average of 132 suicides completed daily and each one directly impacting 100 additional people, including friends, service members, family, social media connections, and neighbors we can safely assume everyone has been impacted by suicide; and
Whereas; City of South Lake Tahoe publicly places its' full support behind those who work in the field of mental health, education, and law enforcement; and Whereas; global organizations like Hope For The Day and our local mental health partners, serve on the front lines of a war that many refuse to discuss due to stigma as suicide and mental health remain too uncomfortable to talk about; and
Whereas; every member of our community should understand that throughout life’s struggles we all need the occasional reminder that we are all fighting our own battles; and
Whereas; we encourage all residents to take time to understand mental health through education and recognize that we need to take care of our mental health while we take care of each other. We encourage all residents to take the time to check in with their family, friends, and neighbors on a regular basis and to honestly communicate their appreciation for their existence by any gesture they deem appropriate. A simple phone call, message, handshake, or hug can go a long way towards helping someone realize that suicide is not the answer.

Therefore, the City Council of the City of South Lake Tahoe, do hereby proclaim September 2023 as “National Suicide Prevention & Action Month” in the City of South Lake Tahoe.
________________________ __________________________
Cristi Creegan, Mayor Susan Blankenship, City Clerk
9 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:2
Agenda Item: Proclamation Recognizing September 17-23, 2023 as "National Constitution Week" Executive Summary: On August 8, 2023, City Council approved the drafting of this Proclamation.

Requested Action / Suggested Motions: Issue a Proclamation to the Lake Tahoe Chapter of the Daughters of the American Revolution recognizing September 17-23, 2023 as "National Constitution Week".

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

Proclamation - National Constitution Week.docx
10 City of South Lake Tahoe
Proclamation
Recognizing September 17-23, 2023, as
“Constitution Week”
Whereas, the Constitution of the United State of America, the guardian of our liberties, embodies the principles of limited government in a republic dedicated to rule by law; and
Whereas, September 17, 2023, marks the two hundred and thirtysixth anniversary of the framing of the Constitution of the United States of America by the Constitutional Convention; and Whereas, it is fitting and proper to accord official recognition to this magnificent document and its memorable anniversary; and Whereas, Public Law 915 guarantees the issuing of a proclamation each year by the President of the United States of America designating September 17 through 23 as Constitution Week.

Now therefore, the City Council of the City of South Lake Tahoe do hereby proclaim the week of September 17 through 23 as “Constitution Week” and ask our citizens to reaffirm the ideals the framers of the Constitution had in 1787 by vigilantly protecting the freedoms guaranteed to us through this guardian of our liberties.
_____________________ __________________________
Cristi Creegan, Mayor Susan Blankenship, City Clerk
11 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:3
Agenda Item: City Council Meeting Minutes
Executive Summary: City Council is asked to formally approve the August 8, 2023, City Council meeting minutes.

Requested Action / Suggested Motions: Pass a Motion approving the August 8, 2023, City Council meeting minutes.

Responsible Staff Member: Susan Blankenship, City Clerk Attachments:
08 08 2023 Minutes.pdf
12 08 08 2023 Minutes
City of South Lake Tahoe
City Council, South Tahoe Joint Powers Parking
Financing Authority and South Tahoe Joint
Powers Financing Authority
Meeting Minutes
Tuesday, August 8, 2023 at 9:00 am
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe City Council Mission of the City Council
Cristi Creegan, Mayor The City was established to provide essential, Cody Bass, Mayor Pro Tem outstanding and cost-effective services that John Friedrich, Councilmember enhance environmental sustainability, economic Tamara Wallace, Councilmember vitality and the quality of life for our residents, Scott Robbins, Councilmember businesses and guests.

NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council. Complete Council members discussions on Regular Session meeting items can be viewed in archived video recordings on the City’s website at http://www.cityofslt.us Public submittals on items are retained in the administrative record and can be viewed in the City Clerk’s repository at http://www.cityofslt.us
Call to Order/Pledge of Allegiance
At 9:25 a.m. Mayor Creegan called the meeting to order. Creegan then led the pledge of allegiance to the flag.

Roll Call
Present were Mayor Creegan, Mayor Pro Tem Bass, Councilmembers Friedrich, Robbins and Wallace.

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

Closed Session Report 08 08 2023

1. Conference with Legal Counsel - Anticipated Litigation - Gov. Code section 54956.9(d)(4) (one case)
Action: City Attorney Stroud reported that City Council voted 5-0 to authorize initiation of litigation in one case.

2. Conference with Labor Negotiator - Government Code section 54957.6(a) Action: No reportable action.
.

Note: Mayor Creegan noted that Item #14 would be heard after Item #19. 13 08 08 2023 Minutes
City Employee Recognition

1. City Employee Recognitions
Action: Joseph Chaisson, Myles Galdi, Heidi Wilson and Emma Morena, Police Department, . Jeremy Harrison, Development Services, and Nicholas Steffen, Fire Department were introduced to City Council. Sebastian Knapp, Information Technology, and Melissa Dube, Police Department, were recognized for reaching 15 Years-Service.

Jeff Roberson, Police Department, and Gildardo Navarro, Public Works Department, were recognized for reaching 20 Years-Service.

Public Communications
Public Comment was heard from the following people:

1. Ed Mosur – e-scooter danger, report from Riva Feldman contract

2. Mary McCall – Bijou Golf Course improvements, transients living in meadows

3. No name provided – banning horse drawn carriages.

4. Angie Reagan – Accessibility for all, horse drawn carriages, Suicide Prevention Month, Access Tahoe meeting

5. Stacy Ballard – Access Tahoe meeting

6. Molly Armanino – banning fireworks

7. Dr. Katie Lawler – animal ethics, and horse drawn carriages

8. Eugene Aguilar – horses are well treated by the Borges family Written Comment was received from the following people:

9. Jim Bohlen – Diana Madson

10. Asa Briggs – cell towers

11. Shirley Briggs – cell towers

12. Margaret Byers – broadband

13. David Chain – environmental procedures, cell towers

14. Edith Chase – cell towers, Tahoe Prosperity Center

15. Ernest Coe – cell towers

16. Granville Fortescue – scenic corridors, cell towers *2 comments received

17. Steven Hart – cell towers

18. Patrick Henry – cell towers

19. Phillip McGraw – cell towers

20. Peter Norman – over tourism

21. Renuka Ray – cell towers

22. David Sive – cell towers

23. Edgar Wayburn – Danielle Hughes

24. Dennis Weaver - cell towers

25. Brent Wisner – Verizon, cell towers
City Commission Reports

1. Nicole Ramirez Thomas, Parks and Recreation Commission – equitable access to beach and bike paths, need for additional staff at the Recreational Center.

14 08 08 2023 Minutes
Consent Agenda
Note: Councilmember Robbins requested Item 9 be pulled from the Agenda and added to a future meeting as New Business. This action required a vote of the Council.

Action: Moved/Second: Robbins/Wallace
Yes: Bass, Creegan, Friedrich, Robbins and Wallace
Action: Passed Motion 2023-064.

Note: Mayor Creegan recused herself from voting on Item 7 due to property interest in the area and Councilmember Bass recused himself from voting on Item 7 due to financial interest in the industry.

Action: Moved/Seconded: Wallace/Friedrich
Yes: Bass, Creegan, Friedrich, Robbins and Wallace
Action: Passed Consent Agenda with noted recusals and Item 9 pulled.

2. City Council Meeting Minutes
Action: Passed Motion 2023-062 approving the June 6, 2023 City Council meeting minutes and the June 20, 2023 City Council and South Tahoe Joint Powers Financing Authority meeting minutes.

3. ALS Cardiac Monitor Lease Agreement with Zoll Medical Corporation Action: Passed Resolution 2023-066 Authorizing Sole Source Purchase and Execution of Lease Agreement C-153-2023 with Zoll Medical Corporation for Six Cardiac Monitors and Amending the FY 2022-2023 Budget by Appropriating $147,000 into Emergency Medical Services Account 236 02262 46110.

4. Quitclaim U.S. Highway 50 - South Lake Tahoe Safety Project Utility Easements Action: Passed Resolution 2023-067 approving Easement Quitclaim Deed D-036-2023 to remove City easement rights on APN 029-161-025 as described within the Easement Quitclaim Deed and authorizing the City Manager to sign the Quitclaim Deed.

5. Amendment No. 1 to California Tahoe License Agreement No. 2022-0214-LT-279 Action: Passed Resolution 2023-068 approving C-154-2023 Amendment No. 1 to the existing California Tahoe Conservancy License Agreement No. 2022-0214-LT-279 (Tahoe Valley Stormwater and Greenbelt Improvement Project).

6. Winter Storm 2023 Reconciliation Budget Appropriation Action: Passed Resolution 2023-069 appropriating $968,447 from General Fund Undesignated Excess Reserves Account for Reconciliation of Winter 2023 Expenditures.

7. Ordinance - Confirmation of Termination and Rescission of Development Agreement with Perfect Union SLT, LLC (Second Reading)
Action: Passed Ordinance 2023-1175 Confirming Termination and Rescission of Development Agreement with Perfect Union SLT, LLC.

8. Community Development Block Grant CV 1 Subrecipient Agreement and Scope of Work for the Boys and Girls Club of Lake Tahoe
Action: Passed Motion 2023-063 authorizing and directing the Mayor to execute C-155- 2023 Subrecipient Agreement for the Boys and Girls Club with an expenditure term until February 28th, 2024, and not to exceed amount of $87,594.00.

Public Comment was heard from the following person:

1. Jude Wood, Boys and Girls Club of South Lake Tahoe
15 08 08 2023 Minutes

9. Financial Policy Amendments Regarding Cell Phones, Local Training & Meeting, Procurement, Grant Funding and Compliance, Travel, and Preserving Capital Investments, and New Financial Policy - Leases and Subscription Based Information Technology Arrangements (SBITAs)
This item was pulled and will be placed on a future agenda as New Business.

10. El Dorado Community Foundation Grant Acceptance
Action: Passed Resolution 2023-070 authorizing the City to (1) execute Agreement C-156-2023 for Funding with El Dorado Community Foundation to accept the Foundation's grant in the amount of $20,000, and (2) amend FY 22/23 budget and accept El Dorado Community Foundation's grant of $20,000 into the Parks Maintenance account 100-04170-36280 (Contributions and Donations) designated to sustain the Park Ranger Program.

11. Professional Services Agreement with CentralSquare Technologies LLC. to provide property information and permit management software and Professional Services Agreement with HdL Companies to provide business licensing and transient occupancy tax administration software.

Action: Passed Resolution 2023-071: (1) authorizing and directing the City Manager to execute the Software and Professional Services Agreement C-157-2023 with CentralSquare Technologies, LLC in the amount of $279,475 including one-time implementation cost and first year annual maintenance fee of $72,600 (subject to 3% increase for year two, 4% for year three and 5% year over year thereafter) for Community Development Software Implementation for the five year initial term which will automatically renew for additional successive one year terms thereafter; (2) authorizing corresponding budget appropriations transferring a total of $279,475 from Long Term Building Permit Fees account 271-03110-50014 into Software/Hardware Capital Project account 301-70008-46122; and (3) authorizing and directing the City Manager to execute the Software and Professional Services Agreement C-158-2023 with HdL in the amount of $76,500 for one-time implementation cost and $22,000 for first year annual subscription fee for Prime Cloud Software Implementation for twelve months initial term which will automatically renew for successive twelve months terms thereafter
Public Hearing - City Council and South Tahoe Joint Powers Financing Authority

12. Issuance of 2023 Lease Revenue Bonds Series A for the Multigenerational Recreation and Aquatic Center Construction Financing in a Principal Amount Not to Exceed $59 Million Note: Mayor Creegan recused herself from this item due to financial interest in the area and left the meeting. Mayor Pro Tem Bass presided.

Action: Moved/Seconded: Wallace/Friedrich
Yes: Bass, Friedrich, Wallace and Robbins
Absent (recused): Creegan
Action: Acting as the City Council, Passed Resolution 2023-072 approving the issuance of the Authority Lease Revenue Bonds, 2023 Series A, and authorizing the City`s execution and delivery of related documents and taking related actions; and, Acting as the Authority, Passed STJPFA Resolution 2023-001 authorizing the sale, issuance and delivery of Lease Revenue Bonds, 2023 Series A, and authorizing the execution and delivery of an indenture and other documents and taking related actions.

The following person addressed City Council:

1. Christine Choi, PFM Financial Advisors
Public Comment was heard from the following people:

2. Jerry Bindel, Chairman Independent Citizens Oversight Committee

3. Nicole Ramirez, Parks and Recreation

4. Carl Rubado

5. Jude Wood, Boys and Girls Club

6. David Gregorich, Independent Citizens’ Oversight Committee, Parks and Recreation 16 08 08 2023 Minutes

7. Ed Mosur

8. Amelia Richmond

9. Michael Glover, CEO Tahoe Chamber
Regular-Unfinished Business

13. Agreement with Roebbelen Contracting, Inc. for Multi-Generational Recreation and Aquatic Center
Note: Mayor Creegan recused herself from this item due to financial interest in the area and left the meeting. Mayor Pro Tem Bass presided.

Action: Moved/Seconded: Friedrich/Wallace
Yes: Bass, Friedrich, Wallace and Robbins
Absent (recused): Creegan
Action: Passed Resolution 2023-073 appropriating $71,578,652 for the Multi-Generational Recreation and Aquatic Center Project upon successful bond sale and authorizing and directing the Mayor Pro Tem to execute a construction contract C-161-2023 with Roebbelen Contracting, Inc. in the amount of $67,851,097.00.

The following person address the City Council:

1. Chris Vicencio, JK Architecture Engineering
Public Comment was heard from the following people:

2. David Gregorich

3. Jerry Bindel, Chairman Independent Citizens’ Oversight Committee

4. Nicole Ramirez, Parks and Recreation Commission

5. Jude Wood, Boys and Girls Club

6. Amelia Richmond

7. Molly Armanino

8. Mike Glover, Tahoe Chamber
Note: This Item was heard after Item 19 under Regular Unfinished Business (continued)

14. Heavenly Valley Neighborhood Traffic and Parking Plan and Negotiations with Heavenly Resort Related to On-Street Parking Agreement
Note: City Manager Irvin recused himself from this item due to residence in the area, and left the meeting.

Action: Moved/Seconded: Wallace/Bass
Yes: Bass, Creegan, Friedrich, Wallace and Robbins
Action: Passed Motion 2023-065 to Hold the first reading (by title only) of an Ordinance amending South Lake Tahoe City Code, Title 4, Chapter 4.25, by adding Article IX (Chain Control Zone), and refer the second reading and adoption to the September 12, 2023 meeting; and Hold the first reading (by title only) of an Ordinance amending City of South Lake Tahoe City Code Section 4.25.420 to establish Angle Parking on the East Side of Ski Run Boulevard from David Lane to Regina Road and Removing Outdated Angle Parking Areas, and refer the second reading and adoption to September 12, 2023 meeting; Passed Resolution 2023-074 Establishing Seasonal No Parking Restrictions and Residential Parking Permit zones on Certain Streets in the Heavenly Valley Neighborhoods with a change of one side of Verdon reserved for permit parking; 4) Passed Resolution 2023-075 appropriating $200,000 from the Parking Bellamy Court Fund Available Fund Balance and Authorizing the City Manager to execute the necessary purchase orders for implementation of the No Parking and Residential Parking Permit program in Heavenly Valley Neighborhood; and City Council provided direction to staff to continue negotiating with Heavenly Valley Limited Partnership for On-Street Parking related to the Heavenly Resort area.
17 08 08 2023 Minutes

15. Supplemental Analysis of Tiered Inclusionary Housing Requirement and In-Lieu Fee Action: Moved/Seconded: Wallace/Bass
Yes: Bass, Creegan, Wallace and Robbins

Absent: Friedrich
Action: Passed Motion 2023-066 directing staff to draft a Tiered Inclusionary Housing Requirement Ordinance for presentation and adoption by the City Council.

The following person addressed the City Council:

1. Aaron Nousaine, Consultant
Written Comment was received from the following person:

2. Seth Dallob
New Business - City Council and South Tahoe Joint Powers Parking Financing Authority

16. Bellamy Parking Garage Upgrade Project
Action: Moved/Seconded: Wallace/Bass
Yes: Bass, Creegan, Friedrich, Wallace and Robbins
Action: Passed STJPPFA Resolution 2023-001 authorizing and directing the South Tahoe Joint Powers Parking Financing Authority Chair to execute contract C-163-2023 with JPB Designs, Inc. for $478,300, plus 10% contingency of $47,830 for the Bellamy Parking Garage Upgrade Project and amending FY 2022/23 Parking Garage Budget, including appropriating $171,130 from the Parking Garage Fund balance.

Regular-New Business

17. Citizen Appointments to Commissions and Boards
Note: Updated application from Nolan Barichievich distributed to Council.

El Dorado County Community Action Council
Action: Moved/Seconded: Wallace/Bass
Yes: Bass, Creegan, Friedrich, Wallace and Robbins
Action: Passed Motion 2023-069 appointing Chelsea Thomas.

Airport Land Use Commission
Action: Moved/Seconded: Bass/Wallace
Yes: Bass, Creegan, Friedrich, Wallace and Robbins
Action: Passed Motion 2023-068 appointing Joshua Cleaver Arts, Culture, and Tourism Commission
Action: Moved/Seconded: Wallace/Bass
Yes: Bass, Creegan, Friedrich, and Wallace
No: Robbins
Action: Passed Motion 2023- 067 appointing Rachel Carlson and Nolan Barichievich and directed City Clerk to resolicit for the position of non-voting representative associated with the South Lake Tahoe Tourism Improvement District or Lake Tahoe Lodging Association Written Comment was received from the following person:

1. Aubrie Williams, applicant Arts, Culture and Tourism Commission

2. Chelcee Thomas, applicant, EDC Community Action Council 18 08 08 2023 Minutes

18. Residential Parking Permit Program
Note: City Manager Irvin recused himself from this item due to residency in the area and left the meeting.

Action: Moved/Seconded: Friedrich/Robbins
Yes: Bass, Creegan, Friedrich, Wallace and Robbins
Action: Passed Motion 2023-070 to hold the first reading of an Ordinance amending South Lake Tahoe City Code, Title 4, Chapter 4.25, Article V (Stopping, Standing and Parking) by adding Section 4.25.365 (Residential Parking Permit Program), and refer the second reading and adoption to the September 12, 2023 meeting.

Public Comment was heard from the following people:

1. Mike Keck

2. Zoey Siegal
Written Comment was received from the following person:

3. Englehardt

19. Building Energy Efficiency Reach Code
Action: Moved/Seconded: Bass/Friedrich
Yes: Bass, Creegan, Friedrich, Wallace and Robbins
Action: Passed Motion 2023-071 providing direction components of the reach code, including:
applicable building types - all Single Family Residential, including condominiums, Accessory Dwelling Units, Multi-Family Residential, Commercial Retail, Office, Restaurant and Hotel, and Public Service Facilities; desired reach code option – electric preferred, and exemptions – all; a complimentary educational program and associated budget to increase local knowledge of building energy efficiency and electrification measures - yes, and to conduct additional economic impact analysis to determine impacts on local construction industry, real estate market and housing costs – yes; and direction to bring this item back in a year for review.

The following person addressed the City Council:

1. Leila Silver, Sustainable Policy & Programs Manager, Integrated Design 360 Public Comment was heard from the following person:

2. Molly Armanino
Written Comment was received from the following person:

3. Seth Dallob
Agenda Planning Calendar

20. Agenda Planning Calendar
Action: Received and filed.

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

1. Petition filed for South Lake Tahoe Property Owners group vs. City – Measure T case City Clerk:

1. Proclamation request from Angie Reagan to designate September 2023 as Suicide Prevention and Action Month and a Proclamation request from Daughters of the American Revolution to designate September 17 – as Constitution Week. (Council consensus)
City Manager:

1. Update on preliminary Caltrans response on the US 50 and 89 speed limits 19 08 08 2023 Minutes
Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Councilmember Robbins:

1. Attended Bicycle Advisory Committee meeting

2. Access Tahoe Round Table attendance

3. Scooter corrals for future agenda item (Wallace second)

4. Security analysis for possible ransomware attacks (Bass second)

5. Rental registry discussion (City Manager noted it could be merged into existing APC item)
Councilmember Bass:

1. Upcoming meetings
Councilmember Friedrich:

1. Tahoe Regional Planning Governing Board meeting attendance

2. Upcoming September Multicultural Festival

3. Onsite consumption Ordinance (Wallace second)
Mayor Creegan:

1. Solid Waste JPA meeting attendance

2. Upcoming Tahoe Summit
Adjournment
At 4:44 p.m. Mayor Creegan adjourned the meeting.
__________________________ _______________
Cristi Creegan, 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.
20 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:4
Agenda Item: Investment Portfolio Report - June 30, 2023 Executive Summary: In accordance with the City of South Lake Tahoe Financial Policies and State law, a quarterly investment report is hereby submitted to the members of the City Council. As of June 30, 2023, the City's total cash and investment balances across all funds is $119.1 million.

Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report - Investment Report Jun 2023.docx
02-Operations Cash 06 30 2023.pdf
03-Fiscal Agent 06 30 2023.pdf
04-Graph 06 30 2023.pdf
05-Cash June 2023.pdf
21 Council Agenda Report September 12, 2023 Page | 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 12, 2023
Title: Investment Portfolio Report as of June 30, 2023
Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 Background: In accordance with the City of South Lake Tahoe Financial Policies and State law a quarterly investment report shall be submitted to the members of the City Council.

Issue and Discussion: The attached report for the period ending June 30, 2023, 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 $119,107,061.

Cash available for operations is $110,109,163. This includes Cash in Bank of $12,092,293 with the remaining amount in various investments diversified in accordance with the City’s adopted Investment Policy. The total portfolio yield is 3.57%. Based on this report the City of South Lake Tahoe will be able to meet projected operating expenditures for the next six months.

Cash held by fiscal agents for debt service is $8,997,898. 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 $ 11,926,677 $ 6,064,321 $ 5,862,356
Special Revenue $29,327,206 $29,327,206 -
General Fund $ 37,975,656 $ 37,975,656 -
Internal Service $6,925,379 $6,925,379 -
Debt Service $2,840,801 $2,477,056 $363,745
Enterprise $9,593,262 $6,821,465 $2,771,797
CIP $20,518,080 $20,518,080 -
Grand Total $119,107,061 $110,109,163 $8,997,898
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. 22 CITY OF SOUTH LAKE TAHOE

OPERATIONS CASH INVESTMENT PORTFOLIO REPORT
AS OF JUNE 30, 2023

INVESTMENT TYPE ISSUER PAR VALUE
Local Agency Investment Fund State Treasurer 55,897,120$ 55,049,077$ 3.17% 50.8% 1.61% N/AFederal Home Loan Bank Government Agency 1,000,000$ 892,583$ 1.00% 0.91% 0.01% 5/27/2026 Federal Farm Credit Banks Government Agency 1,000,000 $ 889,897$ 1.50% 0.91% 0.01% 12/14/2026Federal Farm Credit Banks Government Agency 1,000,000 $ 972,314$ 1.67% 0.91% 0.02% 3/8/2024Fed. Home Loan Bank Government Agency 1,000,000$ 936,362$ 1.75% 0.91% 0.02% 3/29/2027Federal Farm Credit Banks Government Agency 1,000,000 $ 942,745$ 3.11% 0.91% 0.03% 4/13/2026 Fed. Home Loan Bank Government Agency 2,000,000$ 1,958,564$ 2.63% 1.82% 0.05% 2/26/2024Fed. Home Loan Bank Government Agency 1,000,000$ 980,495$ 4.25% 0.91% 0.04% 6/20/2025Fed. Home Loan Bank Government Agency 1,000,000$ 961,576$ 4.10% 0.91% 0.04% 6/30/2027Fed. Home Loan Bank Government Agency 1,000,000$ 978,820$ 5.00% 0.91% 0.05% 9/30/2027Fed. Home Ln Mtg Corp Government Agency 1,000,000$ 989,692$ 5.05% 0.91% 0.05% 12/19/2024Fed. Home Ln Mtg Corp Government Agency 1,000,000$ 990,828$ 5.30% 0.91% 0.05% 11/28/2025Fed. Home Ln Mtg Corp Government Agency 2,000,000$ 1,982,659$ 5.00% 1.82% 0.09% 8/22/2024Fed. Home Loan Bank Government Agency 2,000,000$ 1,968,248$ 4.75% 1.82% 0.09% 1/30/2025Fed. Home Ln Mtg Corp Government Agency 2,000,000$ 1,985,035$ 5.50% 1.82% 0.10% 3/13/2025Fed. Home Loan Bank Government Agency 1,000,000$ 996,755$ 5.00% 0.91% 0.05% 1/5/2024Fed. National Mtg Association Government Agency 2,500,000$ 2,484,193$ 5.13% 2.27% 0.12% 4/26/2024Fed. Home Loan Bank Government Agency 2,500,000$ 2,492,600$ 5.13% 2.27% 0.12% 1/26/2024Fed. Home Loan Bank Government Agency 2,500,000$ 2,500,383$ 5.10% 2.27% 0.12% 2/15/2024U.S. Treasury Bill Government Agency 7,307,025$ 7,317,593$ 5.37% 6.64% 0.36% 12/14/2023U.S. Treasury Bill Government Agency 7,305,975$ 7,309,506$ 5.43% 6.64% 0.36% 12/21/2023Certificate of Deposit Barclays bank/Delaware 250,000 $ 244,144$ 2.85% 0.23% 0.01% 6/3/2024Certificate of Deposit Capital One NA 250,000$ 239,545$ 3.10% 0.23% 0.01% 6/2/2025

WEIGHTED
PAR

WEIGHTED

MARKET VALUE CURRENT YIELD YIELD MATURITY DATE
1 of 2
23 CITY OF SOUTH LAKE TAHOE

OPERATIONS CASH INVESTMENT PORTFOLIO REPORT
AS OF JUNE 30, 2023
Certificate of Deposit Capital One Bank (USA) NA 250,000$ 234,920$ 3.15% 0.23% 0.01% 6/2/2026Certificate of Deposit State Bank of India 250,000$ 232,395$ 3.30% 0.23% 0.01% 6/1/2027Cash in Bank General & Sweep 12,092,293$ 12,092,293$ 0% - 4.94614% 10.98% 0.20% N/APetty Cash 6,750$ 6,750$ N/A 0.01% 0.00% N/A TOTAL 110,109,163$ 108,629,970$ 3.57% (Total Portfolio Yield) The Investment porfolio at June 30, 2023 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. 2 of 2
24 CITY OF SOUTH LAKE TAHOE INVESTMENT REPORT

CASH AND INVESTMENTS HELD WITH FISCAL AGENTS
AS OF JUNE 30, 2023

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 788 788 5.02% N/A Revenue Blackrock Treasury Trust Bank of New York Mellon 37 37 5.01% N/A Revenue Blackrock Treasury Trust Bank of New York Mellon 2 2 5.05% N/A Reserve Assured Guaranty Municipal Bank of New York Mellon - 2 0.00% N/A So Tahoe JPFA Parking Rev Bonds 2013 Debt Service Reserve Blackrock Treasury Trust Bank of New York Mellon 583,550 583,550 5.02% N/A Refunding Account Blackrock Treasury Trust Bank of New York Mellon 76 76 5.03% N/A Debt Service Account Blackrock Treasury Trust Bank of New York Mellon 201,705 201,705 5.02% N/A Supplemental Reserve Blackrock Treasury Trust Bank of New York Mellon 1,986,466 1,986,466 5.02% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 0 0 4.76% N/A So Tahoe JPFA Ref Rev Bonds 2014 A, 2015 A, 2017 A Revenue Fund Blackrock Treasury Trust Bank of New York Mellon 3,525 3,526 5.02% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 1,100 1,100 5.02% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 1,124 1,124 5.02% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 154 154 5.02% N/A So Tahoe JPFA (RPA 1) Reserve Blackrock Treasury Trust Bank of New York Mellon 5,279,965 5,279,965 5.02% N/ASuccessor Agency to the So Tahoe RDA, CFD 2001-1, Refdg Series 2015 Special Tax Blackrock Treasury Trust Bank of New York Mellon 2,183 2,183 5.02% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 12,232 12,232 5.02% N/A Reserve Blackrock Treasury Trust Bank of New York Mellon 561,827 561,827 5.02% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 245 245 5.02% N/A City of South Lake Tahoe 2014 Pension Obligation Bonds Interest Blackrock Treasury Trust Bank of New York Mellon 3,246 3,246 5.02% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 1,103 1,103 5.02% N/ACity of So Lake Tahoe 2012 COPS, Road Improvmt. Lease Payment Fund First American Govt Obligation Fund/Money Mkt US Bank 13,961 13,961 4.56% N/A Reserve Account First American Govt Obligation Fund/Money Mkt US Bank 344,606 344,606 4.56% N/A TOTAL 8,997,895 8,997,898
Valuation is based upon the valuations contained in the monthly statements provided by the trust departments of the fiscal agents. 25 LAIF
57%
Medium Term
Certificate of Dep
1%
Government Agency
42%
City of South Lake Tahoe
Operations Cash Investment Portfolio
Market Value as June 30, 2023
26 CITY OF SOUTH LAKE TAHOE

CASH REPORT
JUNE 30, 2023

FUND FUND NAME OPERATIONS CASH FISCAL AGENT TOTAL CASH TOTAL # BALANCE CASH BALANCE BALANCE OPERATIONS FISCAL AGENT CASH BALANCE 100 General Fund 37,112,730.00 $37,112,730.00
102 Measure S - Sales Tax 862,925.87 $862,925.87 $37,975,656 $0 $37,975,656 201 Gas Tax 2105 626,063.51 $626,063.51
207 Snow Removal (319,017.93) ($319,017.93)
208 Snow Removal - Equipment Replac 3,237,479.40 $3,237,479.40 210 Vehicle Replacement 307,725.14 $307,725.14
211 Police Vehicle Replacement 570,129.09 $570,129.09
213 Fire Vehicle Replacement 850,028.23 $850,028.23
216 Transit Center 11,330.02 $11,330.02
217 Arts Program 14,659.82 $14,659.82
218 VHR Program 351,788.69 $351,788.69
220 Parks and Recreation 12,412,931.09 $12,412,931.09
221 Ice Arena 107,426.92 $107,426.92
222 Fire Safety Sales Tax (7,205.17) ($7,205.17)
223 Cannabis Program 1,640,411.09 $1,640,411.09
224 PEG Programming 280,475.00 $280,475.00
225 Tobacco Law Enforcement Grant (21,273.48) ($21,273.48) 229 DUI/Traffic Safety Grant (6,883.44) ($6,883.44)
230 Local Law Enforcement 874.99 $874.99
231 AB3229 COPS 119,670.20 $119,670.20
232 Safety Sales Tax 354,032.32 $354,032.32
233 Forfeiture - State Fund 37,769.13 $37,769.13
235 Forfeiture - Justice Fund 10,423.92 $10,423.92
236 EMS - JPA 326,481.09 $326,481.09
237 Boat Patrol - Grant 14,297.59 $14,297.59
238 Domestic Violence (DVRT) Grant 39,835.34 $39,835.34 240 Solid Waste AB939 (12,663.65) ($12,663.65)
241 Clean Community 30,391.93 $30,391.93
242 Vehicle Abatement 161,718.14 $161,718.14
243 Nuisance Abatement 154,014.25 $154,014.25
244 Solid Waste JPA 1,118,712.70 $1,118,712.70
245 Storm Water Mgmt/Sweeping 177,539.96 $177,539.96
250 Hsng&ED - Work Force Housing 789,139.54 $789,139.54 251 Hsng & Ed - Home 1,016,113.50 $1,016,113.50
252 Hsng & Ed - CDBG 130,141.12 $130,141.12
253 Hsng & Ed - Administration 315,155.66 $315,155.66
255 CDBG Program Income Loans 140,595.73 $140,595.73
256 CDBG Economic Development (72,596.69) ($72,596.69)
257 CDBG - ED Program Income 0.00 $0.00
258 Calhome Loan Repayments 129,892.97 $129,892.97
259 First Time Homebuyers Rev Loan 9,674.99 $9,674.99
263 TOT Revenue Fund 1,774,916.93 $1,774,916.93
264 Local Fiscal Recovery (ARPA) 0.00 $0.00
270 General Plan/Community Plan 605,420.88 $605,420.88
271 Building Permit Fees 1,175,047.40 $1,175,047.40
280 Ski Run Business Improvement 4,989.14 $4,989.14
281 Measure S Maintenance Fund 64,417.77 $64,417.77
284 Measure S City Maintenance 321,105.28 $321,105.28
285 Tourism Improvement District (TID) 182,075.68 $182,075.68 290 Opioid Settlement Proceeds 151,949.74 $151,949.74 $29,327,206 $0 $29,327,206 301 City CIP 19,619,810.31 $19,619,810.31
303 City CIP - Reg.Surf.Transp.Progr 195,409.79 $195,409.79 306 Rehab Water Quality Projects 2,838.82 $2,838.82
310 Long term Capital Replacement 441,917.03 $441,917.03 320 Housing - CIP Projects 258,103.97 $258,103.97 $20,518,080 $0 $20,518,080 401 City Debt Service 2,477,055.64 363,744.74 $2,840,800.38 $2,477,056 $363,745 $2,840,800 501 Airport 1,914,508.31 $1,914,508.31
510 Parking Management Bellamy 319,265.09 $319,265.09
520 Parking Garage 4,006,155.46 2,771,797.56 $6,777,953.02 550 Transit - Stage 581,536.15 $581,536.15 $6,821,465 $2,771,798 $9,593,263 601 Self Insurance - Health, Vision, Den 614,227.53 $614,227.53 602 Self Insurance - Workers Comp 5,715,436.98 $5,715,436.98 604 Payroll 563,330.29 $563,330.29
605 Health Insurance Savings 32,384.62 $32,384.62 $6,925,379 $0 $6,925,379 701 Trust 917.00 $917.00
707 Park Avenue CFD Fund 1,265,146.02 576,486.86 $1,841,632.88 711 Bijou ECP CFD 167,895.95 $167,895.95
712 Harrison Avenue CFD 154,134.46 $154,134.46
725 RD Obligation Retirement Fund 4,468,239.88 5,285,868.77 $9,754,108.65 751 Special Assessment District 4,572.00 $4,572.00
762 Tahoe Transportation Authority 3,416.00 $3,416.00 $6,064,321 $5,862,356 $11,926,677 Total Cash and Investments $110,109,162.70 $8,997,897.93 $119,107,060.63 $110,109,163 $8,997,898 $119,107,061

SUBTOTAL BY CATEGORY
27 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:5
Agenda Item: Fiscal Year 2023-2024 Investment Policy and Authority Executive Summary: City Council will formally consider the City's formal Investment Policy, and reaffirm the use of this policy for fiscal year 2023-2024. California law requires all public agencies to annually present a formal investment policy to City Council approval. The fiscal year 2023-2024 policy is submitted with several changes which are explained in the staff report and are identified in the attached Exhibit A. The policy formally delegates investment authority to the City Treasurer, and grants the City Manager the formal authority to assign a second official (Finance Director) to perform investment management during absences of the City Treasurer. The policy prioritizes safety, liquidity, and then yield, and establishes various limits on the term, percentage of the City's portfolio authorized in various instruments and caps on investments in various instruments, and prohibits certain types of investments deemed to carry greater risk. City staff presents a report on the status of the City's investments on a quarterly basis. The most recent, June 30, 2023 report is presented during this council meeting with the next report scheduled for November. The City's primary investment instrument is the Local Agency Investment Fund (LAIF), a California state pool (57% of the City's portfolio as of the quarter ended June 30, 2023). LAIF is highly liquid, safe, and typically generates a competitive yield (3.167% as of the end of the June 30, 2023 quarter). The City's other primary investment instruments are Government Agency funds and certificates of deposit.

Requested Action / Suggested Motions: Pass a Resolution delegating investment authority to the City Treasurer and adopting the City Investment Policy for the fiscal year from October 1, 2023 to September 30, 2024.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report - Investment Policy 23-24.docx
02-Resolution_Investment_Policy 2023_2024.docx
03-Investment Policy - 2023-2024 (Exh. A to Reso).pdf
04-Investment Policy - 2023-2024 reline.pdf
28 Council Agenda Report- September 12, 2023 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 12, 2023
Title: Fiscal Year 2023-2024 Investment Policy
Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 David Olivo, City Treasurer (530) 307-8972
Background: California State Law requires all public agencies to reduce to writing the investment policy that is followed for investing agency funds.

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

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

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

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

II. SCOPE – Added language to show exempt funds not required or covered in the policy.

III. PRUDENCE – Updated language to better represent the City’s definition of prudence and to reference California Government Code Section 53600.3.

IX. INVESTMENT POOLS/MUTUAL FUNDS – Removed time-sensitive sentence regarding current City investments in pools or mutual funds.

XII. DIVERSIFICATION – Replaced 50% restriction for Securities of the U.S. Government or its Agencies and U.S. Treasury Notes and Bonds with “no limit”. Added Money Market Mutual Funds at 20% maximum per California Code Section 53601(l) and 53601.6(b). 29 Council Agenda Report- September 12, 2023 Page 2 of 2 ATTACHMENT A – Replaced 50% restriction with “no limit” for Securities of the U.S.

Government or its Agencies and U.S. Treasuries Notes and Bonds. Added Money Market Mutual Funds at 20% maximum as allowed by California Government Code Section 53601(l) and 53601.6(b).

ATTACHMENT B – Added a list of recommended brokers/dealers for City investments for FY 2023-2024, for City Council approval.

Financial Implications: Financial Policies that are up to date with current laws, governmental accounting standards and compliance are essential to the prudent financial management of the City’s assets and resources.

Environmental Considerations: These policy additions and amendments are not a project subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15378(b)(2) (continuing administrative activities such as general policy and procedure making).

Policy Implications: Updating the investment policy yearly ensures it is in compliance with California State law.
30 Resolution 2023-XXX September 12, 2023 Page 1 of 1
Resolution 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
September 12, 2023
Delegating investment authority to the City Treasurer and reconfirming and adopting the City Investment Policy for the fiscal year October 1, 2023 through September 30, 2024

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

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

C. The Fiscal Year 2023-2024 policy presented for Council review and approval is submitted with several changes which are explained in the staff report and are incorporated in the attached Exhibit A.

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

1. Hereby reconfirms and adopts the Fiscal Year 2023-2024 Investment Policy (attached hereto as Exhibit A).

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

Adopted by the City of South Lake Tahoe City Council on September 12, 2023 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Cristi Creegan, 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.
31 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
1 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
I. POLICY
It is the policy of the City of South Lake Tahoe (City) to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

II. SCOPE
This investment policy applies to all financial assets of the City which are available for investment by the City's Treasurer. These funds are accounted for in the City's Comprehensive Annual Financial Report and include:
• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Project Funds
• Enterprise Funds
• Internal Service Funds
• Fiduciary Funds
The following assets are exempt from the policy: proceeds of City bond issues, Hourly/ Part-time Employee Retirement Plan, Other Postemployment Benefits Plan, Pension Rate Stabilization Trust Fund and assets held by the City as fiduciary for other agencies and subject to separate agency agreement(s). The exempt assets are invested in accordance with regulations established by the State of California and any agreements specific to the funds.

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

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

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

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

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

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

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

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

VI. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which 33 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
3 would impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City.

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

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

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

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

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

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

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

1.5 Must provide current audited financial statements.

1.6 Must provide proof of Financial Industry Regulatory Authority certification.

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

2.1 Current audited financial statements.

2.2 Depository contracts.

2.3 Proof that the institution is State or Federally chartered.

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

1. Certificates of Deposit (or Time Deposits) placed with commercial banks and or savings and loan institutions.
34 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
4 2. Bankers’ Acceptances.

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

4. Commercial Paper.

5. Medium-Term Corporate Notes.

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

7. Negotiable Certificates of Deposit.

8. Passbook Savings Account Demand Deposits.

9. Government Security Mutual Funds.

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

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

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

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

IX. INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/funds is required prior to investing, and on a quarterly basis. There shall be a questionnaire developed which will answer the following general questions:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced, and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? X. COLLATERIZATION
Collateralization will be required on two types of investments: certificates of deposit and sweep checking accounts. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value of principal and accrued 35 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
5 interest.

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

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

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

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

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

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

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

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

2. Bankers’ Acceptances: The maximum investment with any one institution will not exceed $1.0 million. The maximum maturity will be 180 days. The maximum proportion of City funds invested in Bankers’ Acceptance shall not exceed 20% of the total City portfolio.

Maximum 5% invested per issuer. (Note: California Government Code allows a maximum of 40%).
36 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
6 3. Securities of the U.S. Government or its Agencies: Maximum maturity is five years.

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

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

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

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

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

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

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

10. Money Market Mutual Funds: Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Must receive the highest ranking or the highest letter and numerical rating by no less than two nationally recognized rating services. A maximum of 20 percent of the portfolio may be so 37 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
7 invested.

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

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

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

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

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

XIII. MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow and authorized by the City Council, the City will not directly invest in securities maturing more than five years from the date of purchase.
38 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
8 CD maturities will normally not exceed five years. U.S. Government or Agency securities will not exceed five years. At least 50% of idle funds can be placed in investments which can be liquidated for at least face value in the event of an emergency. The City uses LAIF for its idle funds to insure this requirement is met.

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

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

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

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

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

3. Review: The investment policy shall be reviewed at least annually by the City Manager and Finance Director and approved by the City Council to ensure its consistency with the overall objectives of safety (including diversification), liquidity and return, as well as its relevance to current law and financial/economic trends. 39 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
9 The City's philosophy prohibits speculation; i.e., the purchase of securities with the intent to profit from favorable changes in market prices or market conditions. Leveraging or borrowing money for the purpose of investing is specifically prohibited.

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

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

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

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

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

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

XVIII. GUIDELINES
Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.
40 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
10 1. Investment Transactions: Every investment transaction must be authorized, documented and reviewed by the local agency Treasurer.

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

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

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

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

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

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

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

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

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

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

11. Evaluation of Certificates of Deposit: The following items will govern the valuation:
a. Time Certificates of Deposit (TCD) are FDIC insured. b. Negotiable Certificates of Deposit (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.
41 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
11 Attachment A:

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

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

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

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

PERMITTED INSTRUMENTS

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

California State and Local Agencies
5 years / 20% max / 5% per issuer
Bond Proceeds See section XII - number 11
U.S. Treasuries Notes and Bonds 5 years / no limit
Supranationals 5 years / 30% max / AA rated
Reverse Repurchase Agreements Not allowed
Mortgage Pass Through Securities Not allowed
Repurchase Agreements Not allowed
42 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
12 Attachment B:

The City’s approved and active broker/dealers are shown below:

Douglas Robinson – Robinson Capital
27 Reed Blvd.

Mill Valley, CA 94941
(415) 771-9421
John R. Williams – Wells Fargo Bank
333 Market St.

San Francisco, CA 94105
(415) 644-9026
Rene Molina – Mutual Securi0es
807-A Camarillo Spring Rd.

Camarillo, CA 93012
(866) 899-5544
Possible new broker/dealer – applied for:

Don Collins – Wedbush Securi0es
500 Newport Center Dr. #850
Newport Beach, CA 92660
(949) 719-3237

43 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
13 GLOSSARY
AGENCIES: Federal agency securities.

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

ASKED: The price at which securities are offered.

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

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

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

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

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

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

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

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

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

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

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon national amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities.) 44 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
14 DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

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

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

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

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

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

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

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

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

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system. 45 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
15 GOVERNMENTAL NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

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

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

LAIF (Local Agency Investment Fund): A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $75,000,000 for any agency. The City is restricted to a maximum of fifteen transactions per month. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-quarter of one percent of the earnings. The interest rates are competitive with other securities because of pooling the State’s surplus cash with the surplus cash deposited. This creates a multi-billion-dollar money pool and allows diversified investments. In a high interest rate market, the City does better than LAIF, but in times of low interest rates, LAIF yields are higher. The City continually invests in the Local Agency Investment Fund.

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

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

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

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

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

Open market operations are the Federal Reserves most important and most flexible monetary policy tool.
46 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
16 PORTFOLIO: Collection of securities held by an investor.

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

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

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

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

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

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

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

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

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

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.
47 City of South Lake Tahoe
Investment Policy
Fiscal Year 2023-2024
17 SUPRANATIONALS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRARO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.

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

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

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

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

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

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 48 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
1 City of South Lake Tahoe
Investment Policy
Fiscal Year 20223-20234
I. POLICY
It is the policy of the City of South Lake Tahoe (City) to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all state and local statutes governing the investment of public funds.

II. SCOPE
This investment policy applies to all financial assets of the City which are available for investment by the City's Treasurer. These funds are accounted for in the City's Comprehensive Annual Financial Report and include:
• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Project Funds
• Enterprise Funds
• Internal Service Funds
• Fiduciary Funds
The following assets are exempt from the policy: proceeds of City bond issues, Hourly/Part-time Employee Retirement Plan, Other Postemployment Benefits Plan, Pension Rate Stabilization Trust Fund and assets held by the City as fiduciary for other agencies and subject to separate agency agreement(s). The exempt assets are invested in accordance with regulations established by the State of California and any agreements specific to the funds.

III. PRUDENCE
The standard of prudence to be used for managing the City's investments shall be California Government Code Section 53600.3, the prudent investor standard, which states “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
The standard of prudence to be used shall be the “prudent person” standard (as cited in Probate Code Section 16040) and shall be applied in the context of managing the overall portfolio, not to a single item within a diversified portfolio. Investments shall be made with judgment and care (under circumstances then prevailing) which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. 49 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
2 IV. OBJECTIVE

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

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

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

VI. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which would impair their ability to make impartial investment decisions. Employees and investment 50 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
3 officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City.

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

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

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

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

1.5 Must provide current audited financial statements.

1.6 Must provide proof of Financial Industry Regulatory Authority certification.

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

2.1 Current audited financial statements.

2.2 Depository contracts.

2.3 Proof that the institution is State or Federally chartered.

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

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

2. Bankers’ Acceptances.

3. Securities of the U.S. Government or its agencies.
51 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
4 4. Commercial Paper.

5. Medium-Term Corporate Notes.

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

7. Negotiable Certificates of Deposit.

8. Passbook Savings Account Demand Deposits.

9. Government Security Mutual Funds.

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

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

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

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

X. COLLATERIZATION
Collateralization will be required on two types of investments: certificates of deposit and sweep checking accounts. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value of principal and accrued interest.
52 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
5 The City chooses to limit collateral to the following: certificates of deposit and sweep checking accounting held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.

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

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

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

3. Securities of the U.S. Government or its Agencies: Maximum maturity is five years. 53 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
6 and maximum investment is 50% of total City Portfolio.

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

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

10. Money Market Mutual Funds: Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 Formatted: Indent: First line: 0"
54 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
7 et seq.). Must receive the highest ranking or the highest letter and numerical rating by no less than two nationally recognized rating services. A maximum of 20 percent of the portfolio may be so invested.
101. Bonds, Notes or other evidences of indebtedness issue by the California State and Local Agencies: Bonds issued by the local agency, including bonds payable solely out of the revenues from revenue -producing property owned, controlled, or operated by California state or local agency, or by a department, board, agency, or authority of the local agency as authorized by California Government Code 53601 (a). Notes eligible for investment shall be rated in a category of “A” or its equivalent by two Nationally Recognized Rating Organizations.

Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this state, include bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. A maximum of 20% of the portfolio may be so invested. 112. Bond Proceeds: Section 53601 (m) allows greater flexibility with respect to the types of investments that may be made with bond proceeds. Specifically, the law permits money from bond proceeds, obligations under a lease, installment sales, or other agreements of a local agency to be invested in any security that meets the statutory provisions governing the issuance of the bond or other agreements made by the issuing agency. In doing so, this section of the code recognizes that outstanding contracts between issuers and bond holders may not comply with the investment statutes and gives local agencies greater discretion in how to invest bond proceeds. 123. U.S. Treasury Notes and Bonds: Registered Treasury notes or bonds of all 50 United States including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency or authority of the state as authorized by California Government Code 53601 (c) and (d). Maximum maturity is five years and maximum investment is 50% of total City Portfolio. 134. Supranationals: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States.

XIII. MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow and authorized by the City Council, 55 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
8 the City will not directly invest in securities maturing more than five years from the date of purchase.

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

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

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

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

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

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

Formatted: Indent: First line: 0.06"
57 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
10 1. Investment Transactions: Every investment transaction must be authorized, documented and reviewed by the local agency Treasurer.

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

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

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

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

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

11. Evaluation of Certificates of Deposit: The following items will govern the valuation:
a. Time Certificates of Deposit (TCD) are FDIC insured. b. Negotiable Certificates of Deposit (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.
58 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
11 59
City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
12 Attachment A:

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

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

PERMITTED INSTRUMENTS

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

California State and Local Agencies
5 years / 20% max / 5% per issuer
Bond Proceeds See section XII - number 11
U.S. Treasuries Notes and Bonds 5 years / 50% of portfoliono limit Supranationals 5 years / 30% max / AA rated
Reverse Repurchase Agreements Not allowed
Mortgage Pass Through Securities Not allowed
Repurchase Agreements Not allowed
60 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
13 council.

Attachment B:

The City’s approved and active broker/dealers are shown below:

Douglas Robinson – Robinson Capital
27 Reed Blvd.

Mill Valley, CA 94941
(415) 771-9421
John R. Williams – Wells Fargo Bank
333 Market St.

San Francisco, CA 94105
(415) 644-9026
Rene Molina – Mutual Securi0es
807-A Camarillo Spring Rd.

Camarillo, CA 93012
(866) 899-5544
Possible new broker/dealer – applied for:

Don Collins – Wedbush Securi0es
500 Newport Center Dr. #850
Newport Beach, CA 92660
(949) 719-3237

61 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
14 GLOSSARY
AGENCIES: Federal agency securities.

ASKED: The price at which securities are offered.

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

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

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

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

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

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

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

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon national amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities.) 62 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
15 DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

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

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

GOVERNMENTAL NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
63 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
16 Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHA mortgages. The term pass-throughs is often used to describe Ginnie Maes.

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

The City continually invests in the Local Agency Investment Fund.

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

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

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and 64 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
17 Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.

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

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

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

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

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

SUPRANATIONALS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRARO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
65 City of South Lake Tahoe
Investment Policy
Fiscal Year 20232--20234
18 TREASURY BILLS: A non-interest-bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

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

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

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 66 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:6
Agenda Item: Fiscal Year 2022-23 Quarterly Financial Status Report - Quarter Ending June 2023 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, â€œFY 2022/23 Quarterly Budget and Financial Status Report for Period Ending June 30, 2023â€ summarizes operating revenues and operating expenditures (unaudited figures) for the General Fund and Measure S Sales Tax fund for the year-todate providing an analysis of any significant budget variances.

Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member: Andrew Black, Financial Services Supervisor Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - FY 2022-2023 Quarterly Budget
02_FY 2022-23 Qtrly Budget Report June 2023.pdf
67 Council Agenda Report- September 12, 2023 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 12, 2023
Title: Fiscal Year 2022/23 Quarter End Financial Status Report as of June 2023 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 2022/23 Quarterly Budget and Financial Status Report for Period Ending June 30, 2023” is an unaudited snapshot of year-to-date actual revenues and expenditures for the General Fund for that period.

Issue and Discussion: At the end of June 2023 with 75% of the year complete, actual revenues within the primary General Fund were at 70.8% of the amended budget, while expenditures were at 59.2% of appropriations. All departmental expenditures were below the total 75% threshold allocated to the first three quarters of the fiscal year.

Measure S Sales Tax revenue, accounted for in a separate general fund, amounted to approximately 57.8% of the adopted budget, while the scheduled transfers used up 74.3% of the total expenditures budget. See Attachment 2 for further analysis.

Financial Implications: As of June 30, 2023, or after the first nine months of the fiscal year, actual General Fund revenues exceeded expenditures by $5.2 million. Strong performance in the City’s top two revenue sources, Property Tax and Transient Occupancy Tax (TOT) including the Project area TOT, as well as Building fees, contributed to this net revenue.

Compared to the same period last year, overall revenues have increased by approximately

7.9%, or $2.8 million, due to increases in Property Tax, TOT, Business License Fees, FEMA public assistance, and interest revenue, while expenditures were down by approximately 7.7%, or $2.8 million, largely as a result of decreased transfers-out compared to FY 2021/22, which included one-time transfer for various capital expenditures and projects.

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. 68 2022-23 QUARTERLY FINANCIAL REPORT Page 1 of 2 3rd QUARTER ENDING JUNE 30, 2023

CITY OF SOUTH LAKE TAHOE
2022-23 QUARTERLY FINANCIAL REPORT
3 rd QUARTER ENDING JUNE 30, 2023
This report summarizes the City’s financial position for the General Fund for Fiscal Year 2022-23 displaying expenditures at the department level and revenues by type. It compares actual revenues and expenditures received through June 2023 to the total budget.

General Fund Financial Condition
As of June 30th, with 75% of the year complete, General Fund revenues are at 70.8% of projections and expenditures are at 59.2% of appropriations.

Revenues. The top three revenues, Property Tax, City Transient Occupancy Tax (TOT), and Sales Tax generated 55.7% of the total $38.5 million General Fund revenues collected through June 30th .

Property Tax and Motor Vehicle License
Fees (MVLF) received through June 30,
2023 reflect two major installments for
the current year. Their positive
performance compared to the same
period last year (with an increase of

12.4% and 8.3% respectively), has
resulted in these revenues exceeding
their annual budget allocations.

Transient Occupancy Tax (TOT) receipts,
including TOT from the Project area but
excluding TOT audits, showed an
increase of $410K, or 4.5%, despite a
decrease in the total number of room
nights and units rented compared to the
same period last year.

The combined revenue from Sales tax
and Measure Q decreased by about
$51K, representing a 1% decline.

Increases in various other revenue categories and sources have significantly contributed to the overall revenue growth of $2.8 million in comparison to the first three quarters of the previous year. These increases include Pooled Income ($910K; to be distributed between funds at fiscal year-end), Business License Tax ($398K), Parking/Code Citation Fines ($249K), and building fees ($189K). Furthermore, the City received federal and state public assistance in the current fiscal year: $322K for emergency work during the Caldor Fire and $175K towards protective measures in response to COVID-19.

Expenditures. Out of the actual expenditures totaling $33.3 million through June 30th, approximately $19.7 million or

59.1% was allocated to personnel expenses, covering 19 payroll periods, which represents 73.1% of the total payroll periods for the year. Out of the remaining 40.9% or approximately $13.6 million of actual expenditures, $7.0 million is attributed to transfers-out, $2.2 million to professional, technical and other contract services, $1.7 million to miscellaneous general expense including taxes and fees, travel and training, communications etc., $1.0 million to purchases of tools, parts, software, machinery and equipment, and the remaining $1.7 million to utilities, general Revenues by Type
Total Budget
as of
June 30
Actuals
through
June 30
As % of
Budget
Property Tax 10,160,000$ 10,321,582$ 101.6%
Transient Occupancy Tax - City 10,413,562 5,289,834 50.8% Transient Occupancy Tax - Project Area 7,040,000 4,324,918 61.4% Sales Tax 7,100,000 3,806,820 53.6%
Measure Q 3,500,000 2,026,688 57.9%
Motor Vehicle License Fees (MVLF) 2,515,000 2,745,534 109.2% Franchise Taxes 1,650,000 1,252,886 75.9%
Business License Tax 1,692,000 1,252,019 74.0%
Finance - Other Revenues 1,128,050 1,705,998 151.2%
General Government 252,483 5,635 2.2%
Police 2,233,796 1,376,704 61.6%
Fire 2,946,285 405,108 13.7%
Public Works 493,300 588,655 119.3%
Development Services 1,459,503 2,028,320 139.0%
Parks and Recreation 1,048,481 483,120 46.1%
Transfers In 392,438 362,438 92.4%
Miscellaneous General Fund 351,699 533,162 151.6%
REVENUES TOTAL 54,376,597$ 38,509,422$ 70.8%
69 2022-23 QUARTERLY FINANCIAL REPORT Page 2 of 2 3rd QUARTER ENDING JUNE 30, 2023 supplies, and other miscellaneous expense. All departments have maintained expenditures below the 75% threshold allocated to the first three quarters of
the fiscal year.

In comparison to the same period of the
previous fiscal year, overall expenditures
were lower by 7.7%, or $2.8 million. The
most significant decrease occurred in the
Miscellaneous General Fund category,
primarily resulting from decreased
transfers out for one-time capital
projects and a reduction in the required
transfer to the TOT Revenue fund, which
supports any tax increment revenue shortfalls in the Redevelopment Successor Agency. These expenditure reductions were partially offset by city-wide increases in personnel costs, utilities expense, and technical/professional services.

Measure S Sales Tax General Fund
Measure S, a 1% city-wide sales and use tax, went into effect on April 1, 2021 and is projected to generate $7.0 million for fiscal year 2022/23.

Revenues. The City received Measure S
Sales Tax totaling approximately $4.0
million as of June 30th, 2023.

Expenditures. During the adoption of the
FY 2022/23 budget, City Council allocated a
significant portion of the total projected
annual revenue for various purposes
including funding for annual road
reconstruction, seven firefighter positions
previously funded by the SAFER grant,
setting aside funds for the rehabilitation of
Fire Station II, and year 3 debt service for
the emergency communications system for
Fire, Police, and Public Works. Throughout
the fiscal year, City Council additionally
designated Measure S funds for the
creation of the South Shore Fuels
Reduction Program and for the purchase of
snow removal equipment and related debt
service. As of June 30th, approximately
$5.4 million has been transferred out for
these Measure S designated projects and
programs.

Expenditures by Department
Total Budget
as of
June 30
Actuals
through
June 30
As % of
Budget
General Government 5,326,124$ 2,694,042$ 50.6%
Finance 2,636,315 1,929,017 73.2%
Miscellaneous General Fund 12,989,866 8,431,491 64.9%
Police 13,617,368 7,978,134 58.6%
Fire 11,474,696 5,966,075 52.0%
Public Works 4,750,338 3,154,631 66.4%
Development Services 2,120,137 1,186,813 56.0%
Parks and Recreation 3,364,195 1,961,038 58.3%
EXPENDITURES TOTAL 56,279,039$ 33,301,241$ 59.2%
Measure S Sales Tax Total Budget as
of June 30
Actuals
through
June 30
As % of
Budget

REVENUES
Measure S Sales Tax 7,000,000$ 4,046,506$ 57.8%
Interest/Dividends Revenue - 7,366 100.0%
REVENUES TOTAL 7,000,000$ 4,053,872$ 57.9%
EXPENDITURES and FINANCING USES
Technical Services 5,000 - 0.0%
Transfer out to/for:

Debt Service - Communication System 554,643 554,643 100.0% Debt Service - Snow Removal Equip 301,361 301,361 100.0% Fire Marshall postion (50%) 110,692 - 0.0%
Fire Station II Rehabilitation 500,000 500,000 100.0%
General Fund - Safety Equip. 121,400 29,400 24.2%
Hazardous Fuels Reduction - Airport 200,000 - 0.0%
Police Lieutenant position 271,745 - 0.0%
Police Officer (Tobacco grant not renewed) 70,013 70,013 100.0% Road Reconstruction 2,500,000 2,500,000 100.0%
Seven (7) Firefighters 979,030 202,830 20.7%
South Shore Fuels Reduction Program 392,987 - 0.0%
Stateline Ave Complete Streets 100,000 100,000 100.0%
Storm Water Program 50,000 50,000 100.0%
Stormdrain Replacement 200,000 200,000 100.0%
Street and Snow Vehicle Replacement 843,263 843,263 100.0% EXPENDITURES TOTAL 7,200,134$ 5,351,510$ 74.3%
70 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:7
Agenda Item: Ordinance Establishing Residential Parking Permit Program (Second Reading) Executive Summary: City staff has received several requests for a Residential Parking Permit Program (RPPP). A shortage of reasonably available and convenient residential-related parking spaces exists in some areas in the city and alternative solutions are not feasible or practical. The City has authority under California Vehicle Code section 22507 to grant preferential parking privileges to residents on streets where parking is prohibited. On August 8, 2023, City Council held a first reading (by title only) and referred second reading and adoption to the City Council meeting on September 12, 2023.

Requested Action / Suggested Motions: Pass an Ordinance amending South Lake Tahoe City Code, Title 4, Chapter 4.25, Article V (Stopping, Standing and Parking) by adding Section 4.25.365 (Residential Parking Permit Program)
Responsible Staff Member: Anush Nejad, Director of Public Works and David Stevenson, Chief of Police
Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - Ordinance for Residential Permit Parking Program.docx 02 - Residential Parking Permit Program Ordinance.docx
03-Proof of Publication.pdf
71 Council Agenda Report September 12, 2023 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 12, 2023
Title: Residential Parking Permit Program (Second Reading) Location: Citywide
Responsible Staff Member: Anush Nejad, Director of Public Works - (530) 542-6031 David Stevenson, Chief of Police – (530) 542-6120
Background: City staff has received several requests for a Residential Parking Permit Program (RPPP), specifically from the Heavenly Valley and Tahoe Meadow residents. These neighborhoods and others near recreational and tourist activities are adversely impacted by motor vehicle congestion, particularly the long-term parking of motor vehicles on the streets. In these areas, non-resident vehicles substantially and regularly interfere with the use of most available onstreet spaces by adjacent residents, interfering with regular and significant daily or weekly intervals. The volume of non-resident vehicles in these certain areas causes unreasonable traffic hazards, noise, and trash impacts. A shortage of reasonably available and convenient residentialrelated parking spaces exists in these areas, and alternative solutions are not feasible or practical.

The City has authority under California Vehicle Code section 22507 to grant preferential parking privileges to residents on streets where parking is otherwise prohibited.

Issue and Discussion: On August 8, 2023, the City Council passed a Motion to hold the first reading of an Ordinance amending South Lake Tahoe City Code, Title 4, Chapter 4.25, Article V (Stopping, Standing and Parking) by adding Section 4.25.365 (Residential Parking Permit Program), and refer the second reading and adoption to the September 12, 2023 meeting.

Financial Implications: There will be a cost to administer the RPPP program, which is expected to be offset by the permit fees. The permit cost will be calculated once the program is implemented and incorporated into the Fee Schedule. Initially, staff is proposing no fee for the permits for the first year. $20,000 was approved by City Council on August 8, 2023 by Resolution 2023-075 for the initial RPPP implementation. The amount was allocated into account 515-05330 Parking Management Program.

Environmental Considerations: This project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301(c) (Existing Facilities) because the Ordinance addresses parking regulations on existing roadways.

Policy Implications: This project advances the City Council's Strategic Priorities and Goals related to traffic safety and neighborhood preservation. 72 Ordinance 2023-XXX September 12, 2023 Page 1 of 3
Ordinance 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
September 12, 2023
An Ordinance Amending South Lake Tahoe City Code Title 4, Chapter 4.25 to Add Section 4.25.365 (Residential Parking Permit Program) to Designate Areas Where On-Street Parking Permits are Available to Residents of Streets Where Parking is Otherwise Prohibited

FINDINGS
A. The City has authority under California Vehicle Code section 22507 to grant preferential parking privileges to residents on streets where parking is otherwise prohibited.

B. The Public Works Director/City Traffic Engineer recommends adopting this Ordinance to establish a Residential Parking Permit Program that would allow the City Council to designate such areas where on-street parking permits are available to residents of streets where parking is otherwise prohibited.

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

SECTION 1. South Lake Tahoe City Code Title 4, Chapter 4.25 (Motor Vehicles and Traffic), is hereby amended to add Section 4.25.365 (Residential Parking Permit Program) as follows:

4.25.365 Residential Parking Permit Program.

A. City Council Findings. In certain areas of the City of South Lake Tahoe, non-resident vehicles do or may substantially and regularly interfere with the use of the majority of the available on-street spaces by adjacent residents; this interference occurs at regular and significant daily or weekly intervals; the volume of non-resident vehicles in these certain areas cause unreasonable traffic hazards, noise, and trash impacts; a shortage of reasonably available and convenient residential related parking spaces exist in these areas; and alternative solutions are not feasible or practical.

B. Authorization. The City Council, upon finding that such zone is required to provide reasonably available and convenient parking for the benefit of adjacent residents, may designate certain streets or any portions thereof as residential permit parking zones, in which zones vehicles displaying a permit that is visible from the outside of the vehicle are exempt from parking prohibitions otherwise posted.

C. Definition of resident. For the purpose of this section, a “resident” means a person who owns or rents a dwelling unit within a residential permit parking zone for their own living 73 Ordinance 2023-XXX September 12, 2023 Page 2 of 3
accommodations, including owner-occupants, long-term tenants, and second homeowners.

D. Permits. The City Manager is authorized to develop an application for residential parking permits. Applicants for such permits must present proof of residence adjacent to the area designated as a residential permit parking zone. Permits for multifamily units will be issued to the owner of the property for distribution to tenants. Two guest vehicle permits will be issued per address of applicant(s). Permits are to be effective for one year from the date of issuance.

E. Prohibitions. Residential parking permits are not transferable, and it is unlawful for a person to give, sell, or rent a residential parking permit to another person.

SECTION 3. The City Council finds that adoption of the proposed Ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301(c) (Existing Facilities) because the Ordinance addresses parking regulations on existing roadways.

SECTION 4. The City Clerk is directed to certify this Ordinance and cause it to be published in the manner required by law.

SECTION 5. This Ordinance shall become effective thirty days after the date of its adoption.

Adopted by the City of South Lake Tahoe City Council on September 12, 2023 by the following vote:

Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Cristi Creegan, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
74 Ordinance 2023-XXX September 12, 2023 Page 3 of 3
First Reading:

Published:

Second Reading:

Effective:

The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
75 ORD 2023-Residential Parking - Page 1 of 2
FILER
Jo Mcdonough
[email protected]
(530) 542-6005

FILING FOR
Tahoe Daily Tribune
Columns Wide: 1 Ad Class: Legals

INTERIM AD DRAFT
This is the proof of your ad scheduled to run in Tahoe Daily Tribune on the dates indicated below. If changes are needed, please contact us prior to deadline at (530) 541-3880.

Notice ID: LNV81DMfzZGVY7WACIY1 | Proof Updated: Aug. 29, 2023 at 01:00pm PDT Notice Name: ORD 2023-Residential Parking
This is not an invoice. Below is an estimated price, and it is subject to change. You will receive an invoice with the final price upon invoice creation by the publisher.
09/01/2023: Other 127.86
Affidavit flat charge 4.00
Internet Flat Fee Charge 40.00
Subtotal $156.24
Tax $0.00
Processing Fee $15.62
Total $171.86
See Proof on Next Page
76 ORD 2023-Residential Parking - Page 2 of 2
77 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:8
Agenda Item: Ordinance Establishing Chain Control Zone (Second Reading) Executive Summary: During the winter of 2022-23, City staff received several complaints and concerns from the residents of the Heavenly Valley neighborhood regarding traffic congestion, overflow parking, illegal parking, and general nuisance in the area during winter periods. Staff organized a public meeting on May 15, 2023, and presented options to the City Council on June 6, 2023, for neighborhood preservations, including a chain control zone on Ski Run Blvd. On August 8, 2023, City Council held a first reading (by title only) and referred second reading and adoption to the City Council meeting on September 12, 2023.

Requested Action / Suggested Motions: Pass an Ordinance amending South Lake Tahoe City Code, Title 4, Chapter 4.25, by adding Article IX (Chain Control Zone).

Responsible Staff Member: Anush Nejad, Director of Public Works and David Stevenson, Chief of Police
Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01 - Staff Report - Chain Control Ordinance.docx
02 - Chain Control Ordinance.docx
03 - Proof of Publication.pdf
78 Council Agenda Report September 12, 2023 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 12, 2023
Title: Chain Control Ordinance (Second Reading)
Location: Ski Run Blvd
Responsible Staff Member: Anush Nejad, Director of Public Works - (530) 542-6031 David Stevenson, Chief of Police – (530) 542-6120
Background: During the winter of 2022-23, City staff received several complaints and concerns from the residents of the Heavenly Valley neighborhood regarding traffic congestion, overflow parking, illegal parking, and general nuisance in the area during winter periods. Staff organized a public meeting on May 15, 2023, and presented options to the City Council on June 6, 2023, for neighborhood preservations, including establishing a chain control zone on Ski Run Blvd.

Issue and Discussion: In order to create a safer driving environment during winter conditions, due to steep grades in the Heavenly Valley area, staff is proposing the adoption of a Chain Control Ordinance on certain streets and recommended establishing a Chain Control Zone on certain Streets including Ski Run Boulevard, Wildwood Avenue, Keller Road, Need Peak Road, Saddle Road, and Regina Road, east of Pioneer Trail, to be activated when winter conditions warrant upon the order of the Police Chief.

Staff recommends establishing a chain control checkpoint on Ski Run Boulevard near David Lane, where vehicles without tire traction devices or four-wheel drive with snow-tread tires will be turned back. The Chief of Police recommends establishing a fine of $205 for drivers of vehicles operating within the Chain Control Zone without tire chains or four-wheel drive with snow-tread tires during times when the Police Chief has issued an order activating the Chain Control Zone.

Financial Implications: No additional funding is needed for the Chain Control program, and Police Staff will manage it.

Environmental Considerations: Adoption of the proposed Ordinance is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) because the Ordinance is general policy and procedure making.

Policy Implications: This project advances the City Council Strategic Priorities and Goals related to traffic safety and neighborhood preservation. 79 Ordinance 2023-XXX September 12, 2023 Page 1 of 3
Ordinance 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
September 12, 2023
An Ordinance Amending South Lake Tahoe City Code Title 4, Chapter 4.25 (Motor Vehicles and Traffic) to Add Article VIIII (Chain Control Zone) to Establish a Chain Control Zone on Certain Streets in the Heavenly Valley Neighborhood

FINDINGS
A. The city streets leading up to the Heavenly California Base are steep and become icy and slick in winter conditions, which has led to an increasing number of accidents and vehicles becoming stuck and blocking snow removal operations, especially vehicles without proper traction such as tire chains or four-wheel drive with snow-tread tires, further exacerbating the public safety issues on these streets and in surrounding neighborhoods.

B. As part of the ongoing effort to improve parking and traffic conditions in the Heavenly Valley neighborhood, especially during winter conditions and the Heavenly ski season, the Public Works Director/City Traffic Engineer and Police Chief have recommended establishing a Chain Control Zone on certain Streets including Ski Run Boulevard, Wildwood Avenue, Keller Road, Needle Peak Road, Saddle Road, and Regina Road, to be activated when winter conditions warrant upon the order of the Police Chief.

C. The Public Works Director/City Traffic Engineer and Police Chief intend to establish a chain control checkpoint on Ski Run Boulevard near David Lane, where vehicles without tire traction devices or four-wheel drive with snow-tread tires will be turned back.

D. The Public Works Director/City Traffic Engineer and Police Chief recommend establishing a fine of $205 for drivers of vehicles operating within the Chain Control Zone without tire chains or four-wheel drive with snow-tread tires during times when the Police Chief has issued an order activating the Chain Control Zone.

E. The City has authority to establish a chain control zone on highways (including city streets) under California Vehicle Code section 27459.

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

SECTION 1. South Lake Tahoe City Code Title 4, Chapter 4.25 (Motor Vehicles and Traffic), is hereby amended to add Article IX (Chain Control Zone) as follows:
80 Ordinance 2023-XXX September 12, 2023 Page 2 of 3
Article IX. Chain Control Zone

4.25.810 Chain Control Zone Established.

No person shall operate a motor vehicle without tire traction devices on the following streets during times when the Police Chief has issued an order activating the chain control zone and chain control zone signage is in place:

Streets east of Pioneer Trail between the intersection with Price Road and the intersection with Keller Road:

A. Ski Run Boulevard south of Pioneer Trail;
B. Wildwood Avenue south of Pioneer Trail;
C. Keller Road south of Pioneer Trail;
D. Needle Peak Road;
E. Saddle Road; and
F. Regina Road.

4.25.820 Required Tire Traction Devices.

A. Tire traction devices are devices or mechanisms having a composition and design capable of improving vehicle traction, braking, and cornering ability upon snow or icecovered surfaces, such as chains or cables. Tire traction devices shall meet the requirements in California Vehicle Code section 605, as may be amended from time to time.

B. Snow-tread tires shall be of a type and design manufactured for use on snow as a replacement for tire traction devices, shall be in good condition, and shall bear the marking of M-S, M/S, or other marking indicating that the tire was manufactured for use on snow.

C. When the chain control zone is activated and chain control signage is in place, tire traction devices shall be placed on at least two drive wheels, or in the alternative, fourwheel drive vehicles may be equipped with snow-tread tires on all four wheels.

4.25.830 Penalty.

Any person violating the provisions of this article shall be guilty of an infraction and upon conviction shall be punished by a fine of not less than $205 or a greater amount set by resolution of the city council.

SECTION 2. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. 81 Ordinance 2023-XXX September 12, 2023 Page 3 of 3
SECTION 3. The City Council finds that adoption of the proposed Ordinance is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) because the Ordinance is general policy and procedure making.

SECTION 4. The City Clerk is directed to certify this Ordinance and cause it to be published in the manner required by law.

SECTION 5. This Ordinance shall become effective thirty days after the date of its adoption.

Adopted by the City of South Lake Tahoe City Council on September 12, 2023 by the following vote:

Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Cristi Creegan, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
First Reading:

Published:

Second Reading:

Effective:

The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
82 ORD 2023-Chain Control - Page 1 of 2
FILER
Jo Mcdonough
[email protected]
(530) 542-6005

FILING FOR
Tahoe Daily Tribune
Columns Wide: 1 Ad Class: Legals

INTERIM AD DRAFT
This is the proof of your ad scheduled to run in Tahoe Daily Tribune on the dates indicated below. If changes are needed, please contact us prior to deadline at (530) 541-3880.

Notice ID: Nj1Sd8ZL9OOY3eWSZ6z4 | Proof Updated: Aug. 29, 2023 at 11:52am PDT Notice Name: ORD 2023-Chain Control
This is not an invoice. Below is an estimated price, and it is subject to change. You will receive an invoice with the final price upon invoice creation by the publisher.
09/01/2023: Other 102.37
Affidavit flat charge 4.00
Internet Flat Fee Charge 40.00
Subtotal $133.06
Tax $0.00
Processing Fee $13.31
Total $146.37
See Proof on Next Page
83 ORD 2023-Chain Control - Page 2 of 2
84 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:9
Agenda Item: Ordinance Establishing Angle Parking Zones (Second Reading) Executive Summary: This ordinance will establish angle parking on the east side of Ski Run Boulevard from David Lane and Regina Road and removes outdated angle parking areas. On August 8, 2023, the City Council held a first reading (by title only) and referred second reading and adoption to the City Council meeting on September 12, 2023.

Requested Action / Suggested Motions: Pass an Ordinance amending City of South Lake Tahoe City Code section 4.25.420 to establish angle parking on the east side of Ski Run Boulevard from David Lane to Regina Road and removing outdated angle parking areas.

Responsible Staff Member: Anush Nejad, Director of Public Works and David Stevenson, Chief of Police
Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01 - Staff Report - Angle Parking Ordinance.docx
02 - Ordinance - Angle Parking.docx
03 - Proof of Publication.pdf
85 Council Agenda Report September 12, 2023 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 12, 2023
Title: Establishing Angle Parking (Second Reading)
Location: Ski Run Blvd between David Lane and Regina Road, and Westerly Side of Harrison Avenue between San Jose Avenue and Los Angeles Ave
Responsible Staff Member: Anush Nejad, Director of Public Works - (530) 542-6031 David Stevenson, Chief of Police – (530) 542-6120
Background: During the winter of 2022-23, City staff received several complaints and concerns from the residents of the Heavenly Valley neighborhood regarding traffic congestion, overflow parking, illegal parking, and general nuisance in the area during winter periods. Staff organized a public meeting on May 15, 2023, and presented options to the City Council on June 6, 2023, for neighborhood preservations, including establishing an angle parking on Ski Run Blvd. In addition, this Ordinance addresses the current angle parking on Harrison Ave.

Issue and Discussion: The City must establish “Angle Parking” by Ordinance to allow parking on Ski Run. The attached Ordinance establishes Angle Parking on Ski Run and updates all Angle Parking in the City.

Financial Implications: No additional funding is required to establish angle parking as described in the Ordinance.

Environmental Considerations: The actions proposed in this item are exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301 (Existing Facilities).

Policy Implications: This project advances the City Council's Strategic Priorities and Goals related to traffic safety and neighborhood preservation. 86 Ordinance 2023-XXX September 12, 2023 Page 1 of 2
Ordinance 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
September 12, 2023
An Ordinance Amending South Lake Tahoe City Code Section 4.25.420 to Establish Angle Parking on the East Side of Ski Run Boulevard from David Lane to Regina Road and Remove Outdated Angle Parking Areas

FINDINGS
A. As part of the ongoing effort to improve parking and traffic conditions in the Heavenly Valley neighborhood, especially during winter conditions and the Heavenly ski season, the Public Works Director/City Traffic Engineer has recommended angle parking on the east side of Ski Run Boulevard from David Lane to Regina Road.

B. The Public Works Director/City Traffic Engineer recommends removing outdated angle parking areas referencing sections of Ski Run Boulevard where angle parking is no longer used or needed, and updating the segment of Harrison Avenue where angle parking is installed.

C. Under California Vehicle Code section 22503, a local authority may adopt an ordinance to permit angle parking on any roadway.

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

SECTION 1. Section 4.25.420 (Manner of parking – Angle parking) of the South Lake Tahoe City Code is hereby amended to read as follows:

Angle parking is permitted upon the following city streets upon the following conditions:

A. Upon the westerly side of Harrison Avenue between San Jose Avenue and Los Angeles Avenue; provided that, no portion of any stopped or parked vehicle shall extend over the roadway side of a white line painted upon the road surface parallel to and eight feet from the westerly boundary line of the right-of-way of such Harrison Avenue.

B. Upon the easterly side of Ski Run Boulevard between David Lane and Regina Road; provided that, the front of the vehicle is parked within 18 inches of the edge of the rolled curb and entirely within any white lines painted on the road surface designating parking spaces.

SECTION 2. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, 87 Ordinance 2023-XXX September 12, 2023 Page 2 of 2
such decision will not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 4. The City Clerk is directed to certify this Ordinance and cause it to be published in the manner required by law.

SECTION 5. This Ordinance shall become effective thirty days after the date of its adoption.

Adopted by the City of South Lake Tahoe City Council on September 12, 2023, by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Cristi Creegan, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
First Reading:

Published:

Second Reading:

Effective:

The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
88 ORD 2023-Angle Parking - Page 1 of 2
FILER
Jo Mcdonough
[email protected]
(530) 542-6005

FILING FOR
Tahoe Daily Tribune
Columns Wide: 1 Ad Class: Legals

INTERIM AD DRAFT
This is the proof of your ad scheduled to run in Tahoe Daily Tribune on the dates indicated below. If changes are needed, please contact us prior to deadline at (530) 541-3880.

Notice ID: YjjvrGCz0VImcuCRLSKL | Proof Updated: Aug. 29, 2023 at 12:52pm PDT Notice Name: ORD 2023-Angle Parking
This is not an invoice. Below is an estimated price, and it is subject to change. You will receive an invoice with the final price upon invoice creation by the publisher.
09/01/2023: Other 94.31
Affidavit flat charge 4.00
Internet Flat Fee Charge 40.00
Subtotal $125.74
Tax $0.00
Processing Fee $12.57
Total $138.31
See Proof on Next Page
89 ORD 2023-Angle Parking - Page 2 of 2
90 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:10
Agenda Item: Hazardous Fuel Reduction Agreement with Mountain Enterprises, Inc.

Executive Summary: The Airport is seeking approval to enter into a Professional Services Agreement with Mountain Enterprises, Inc. for hazardous fuels reduction. The scope of work includes environmental permitting and the project operations include the cutting, removal, and/or rearrangement of fuels to meet the vegetation specifications of the Cal Fire Forest Fire Prevention Exemption. The project will take place on 12.7 acres of airport property. The total amount of this contract will not exceed $136,969.50.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the City Manager to execute a professional services agreement with Mountain Enterprises, Inc. in an amount not to exceed $136,969.50 for Lake Tahoe Airport Hazardous Fuels Reduction Project Responsible Staff Member: John Dickinson, Airport Manager Reviewed and Approved By: Anush Nejad, Director of Public Works Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney Attachments:
01 - Staff Report - Airport Fuel Reduction.docx
02 - Mountain Enterprises Agreement.pdf
03 - Mountain Enterprises Bid.pdf
91 Council Agenda Report September 12, 2023 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 12, 2023
Title: Approval of Professional Services Agreement with Mountain F. Enterprises in the amount of $136,969.50 for the “Lake Tahoe Airport Hazardous Fuels Reduction” Project Location: City of South Lake Tahoe property, as located at the South Lake Tahoe Airport.

Responsible Staff Member: John Dickinson, Airport Manager (530) 542-6182 Background: The City of South Lake Tahoe is committed to protecting life, property, and the environment from the effects of a catastrophic wildfire. The City’s objective is to work closely with experts in resource management to plan, implement, and support fuel reduction and forest restoration projects. By preparing for the threat of a catastrophic wildfire, the City looks to create an Fire Adapted Community (FAC) as described in the Lake Tahoe Community Wildfire Protection Plan (CWPP). In support of this objective, the City pursued and received funding through the USDA Forest Service Lake Tahoe Basin Management Unit to support fuel reduction efforts on the Lake Tahoe Airport Hazardous Fuels Reduction project.

Issue and Discussion: The Airport desires to enter an agreement with a competitively selected contractor, Mountain F. Enterprises Inc., not exceeding $136,969.50 to provide hazardous fuels reduction work on the Lake Tahoe Airport Hazardous Fuels Reduction project. Services will include mechanical cutting and vegetation removal based on feasible entry of mechanical equipment and available merchantable timber. The project area, located at the Airport, consists of approximately

12.7 acres, as showcased in the attached treatment area map.

Responsible state land managers and the City will perform all planning and permitting acquisition and serve as project management to the project. Each unit has specific operational plans, specifications, and treatment prescriptions, as outlined in a Vegetation Management Plan included in the RFP and agreement. All timber operations shall comply with the CA Forest Practice Rules and 14 CCR 1038.3, Forest Fire Prevention Exemption.

The RFP-solicitation process was compliant and per City policies and federal funding award terms and regulations. An RFP was posted on Planet Bids on July 10, 2023. Four proposals were received on August 4, 2023, and reviewed by a panel of four evaluators comprised of staff from the Airport, the Fire Department, the Finance Department, and an independent forester. Proposals were reviewed for responsiveness and evaluated on proposal content requirements based on weighted points criteria. Mountain F. Enterprises scored the highest points and was ranked #1. Upon approval of the contract award, Mountain F. Enterprises, Inc. can commence services before the end of the 2023 season and further fuel reduction efforts in the City. 92 Council Agenda Report September 12, 2023 Page 2 of 2 Financial Implications: Available funds for this contract are currently appropriated in the Airport budget through previously awarded USFS grant funding in the amount of $200,000 for Airport Hazardous Fuel Reduction. Funds are available in account number 501 80041 42020 Airport Vegetation Management, Professional Services. The City will follow all federal regulations, OMB circulars, and USFS grant terms and conditions to ensure the highest degree of compliance for full reimbursement of expenses for this project.

Environmental Considerations: The Forest Practice Act’s regulatory scheme has been certified for exemption from CEQA’s requirements for preparation of an Environmental Impact Report. A Timber Harvest Plan in Title 14 of the California Code of Regulations is functionally equivalent to an Environmental Impact Report under the California Environmental Quality Act under Public Resources Code section 21080.5. Because the subject area is within a Fire Hazard Severity Zone Map, it is subject to the forest fire prevention exemption in California Code of Regulations, Title 14, section 1038.3, from the requirement to prepare a Timber Harvest Plan. This exemption is being submitted to Cal Fire for review and approval. The project will require a Tahoe Basin Tree Removal Permit or be conducted under a valid TRPA Memorandum of Understanding under Section 1038.3(n). No work will begin until all environmental permitting is complete.

Policy Implications: Approval of this contract will allow the City to meet the goals of fuel reduction and vegetation management around the airport. 93 CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of the 12th day of September 2023 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and Mountain F. Enterprises, Inc. (“Consultant”).

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

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

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

AGREEMENT

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

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

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

2. Term/Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue for one year. 94 3. Compensation. Compensation to be paid to Consultant shall be in accordance with the Schedule set forth in Exhibit B which is attached hereto and incorporated herein by reference. In no event shall Consultant’s compensation, including travel and out-of-pocket expenses, exceed $136,969.50 without additional written authorization from City. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to City at the time of payment. Payment is contingent upon compliance with all terms and conditions of this Agreement, as set forth herein. Consultant shall obtain prior written authorization from the City Project Manager for any costs in excess of budgeted amounts for each line item, task, or obligation under the Scope of Services.

4. Prevailing Wages Required. Pursuant to the provisions of California Labor Code, Sections 1770 to 1780, inclusive thereof, Consultant, and any subcontractor, of any tier, shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations. Consultant must comply with all applicable requirements of the California Labor Code, including, without limitation, all requirements set forth in Division 2, Part 7, Chapter 1. Attention is specifically directed to the following sections of the California Labor Code: Prevailing Wage Requirements (§§ 1771.5 and 1776); Apprentices (§1777.5); Working Hours (§§ 1810 to 1815); Workers’ Compensation (§ 1860); and Protection of Workers in Trench Excavations (§§ 6705 and 6707). In accordance with Labor Code section 1771.5, that the Project is subject to monitoring and enforcement by the Department of Industrial Relations pursuant to 8 Cal. Code Reg. §§16450 through 16464, including the obligation to furnish certified payroll records directly to the Division of Labor Standards Enforcement’s Compliance Monitoring Unit (CMU), using the CMU’s electronic certified payroll reporting (eCPR) system.

Pursuant to the provisions of California Labor Code Section 1773.2, Consultant is hereby advised that copies of the prevailing rate of per diem wages and a general prevailing rate for holidays, Saturdays and Sundays and overtime work in the locality in which the Work is to be performed for each craft, classification, or type of worker required to execute the Agreement, are on file in the City's office. Consultant agrees that not less than said prevailing rates shall be paid to workers employed on this public works contract as required by Labor Code Section 1774. These rate determinations are found on the State of California Department of Industrial Relations' website at:
http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm.
95 Pursuant to the provisions of California Labor Code Section 1813, Consultant or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit twenty-five dollars ($25) for each worker employed in the execution of the Agreement by the respective Consultant or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article.

In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the execution of the contract and shall report them to the Division of Labor Standards Enforcement.

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

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

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

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

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

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

9. Consultant’s Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law or funding agreements (Exhibit F), from the date of final payment to Consultant for services provided pursuant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law or funding agreements (Exhibit F), from records shall be available at Consultant’s address indicated for the date of termination or completion of this Agreement.
c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to City for inspection at City offices when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or 97 termination of Consultant’s business, City may, by written request by any of the above-named officers, require that custody of the records be given to City and that the records and documents be maintained at City offices. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

10. Independent Contractor. It is understood that Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and shall not act as an agent or employee of City.

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

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

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

Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
a. Will conduct research and arrive at conclusions with respect to his/her rendition of information, advice, recommendation or counsel 98 independent of the control and direction of City or of any City official, other than normal agreement monitoring; and,
b. Possesses no authority with respect to any city decision beyond rendition of information, advice, recommendation or counsel. [FPPC Reg. 18700(a)(2)].

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

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

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

15. Indemnity. Consultant hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, officers, agents, employees and volunteers from and against any liability for any and all claims, demands, actions, losses, damages and injuries, direct or indirect (including any and all costs and expenses in connection therein), arising out of this Agreement or caused in any way by Consultant’s negligent performance of this Agreement 99 or its breach of its obligations contained in this Agreement, except for any such claims arising out of the negligence or willful misconduct of the City.

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

City does not, and shall not, waive any rights against Consultant which it may have by reason of the aforesaid hold harmless agreement, because of the acceptance by City, or the deposit with City by Consultant, of any of the insurance policies hereinafter set forth.

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

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

16. Insurance Requirements.
a. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies.
i. Workers’ Compensation Coverage. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers’
Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation of all Workers’ Compensation policies must be received by City at least thirty (30) days prior to such change. Consultant shall provide thirty (30) days written notice of nonrenewal of any 100
Workers’ Compensation policies. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work
performed by Consultant for City.
ii. Commercial General Liability Coverage. Consultant shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. Coverage must be made on
the standard Occurrence form. Claims-Made forms are not acceptable without prior written consent of City. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of Consultant. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general
aggregate limit shall be at least twice the required
occurrence limit.
iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and nonowned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant or by its employees, or subcontractors. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit per occurrence basis.
b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a AM Best’s rating of 101
no less than A:VII and shall be endorsed with the following specific language:
i. City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional
insured’s under Consultant’s General Liability and Automobile Liability policies with respect to liability arising out of this Agreement and/or work performed by or on behalf of the
Consultant, including materials, parts or equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by City, including any self-insured retention City may have, shall be considered excess insurance only and shall not contribute with it.
iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each,
except with respect to the limits of liability of the insuring Consultant.
iv. The insurer waives all rights of subrogation against City except for Consultant’s Professional Liability and Employers’ Liability policies, its elected or appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. No policies of insurance carried by Consultant shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail.
c. Deductibles and Self-Insured Retentions. The Consultant shall be responsible for all deductibles in all of Consultant’s insurance policies.

The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.
102
d. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Consultant shall not commence work under this contract until all insurance required under this section has been approved by City as to form, amount and carrier, nor shall Consultant allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.

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

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

If to City: City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Provide a copy to: City Attorney’s Office
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 300
South Lake Tahoe, CA 96150
If to Consultant: Jim Finney
Mountain F. Enterprise
950 Iron Point Rd. Suite 210
Folsom, CA 95630

18. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in the Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. 103

19. 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.

20. 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.

21. 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.

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

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

24. Drug-Free Workplace Certification. By signing this Agreement, Consultant hereby certifies under penalty of perjury under the laws of the State of California that the Consultant will comply with the requirements of the Drug104 Free Workplace Act of 1990 (Government Code Section 8350, et seq.) and will provide a drug-free work place by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355 (a). b. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b) to inform employees about all of the following:
i. The dangers of drug abuse in the workplace;
ii. The person’s or organization’s policy of maintaining a drug-free workplace;
iii. Any available counseling, rehabilitation and employee assistance program; and
iv. Penalties that may be imposed upon employees for drug abuse violations.
c. Provide, as required by Government Code Section 8355(c), that every employee who performs grant activities under this Agreement:
i. Will receive a copy of the Consultant’s drug-free policy statement; and
ii. Will agree to abide by the terms of the Consultant’s statement as a condition of employment on this Agreement.

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

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

26. Debarment, Suspension, Ineligibility and Voluntary Exclusion. By signing this Agreement, Consultant assures that neither it nor its principals, is presently debarred, suspended, proposed for debarment, declared ineligible, or 105
voluntarily excluded from participating in covered transactions by any Federal department or agency.

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

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

29. 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.

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

31. 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.

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

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

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

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
106
CITY OF SOUTH LAKE TAHOE: CONSULTANT:

By___________________________ By ________________________________ City Manager Jim Finney, Project Manager
Date __________________________ Date _____________________________ Business License # ___________________
APPROVED AS TO FORM:

By____________________________ Date ________________________________ City Attorney
ATTEST:

By______________________________ Date ________________________________ City Clerk
Attachments:

Exhibit A – Scope of Services
Exhibit B – Compensation Schedule
Exhibit C- Anti-Lobbying Certification
Exhibit D - COI
Exhibit E – Vegetation Management Plan
Exhibit F – Cal Fire Forest Fire Prevention Exemption
Exhibit G – USDA, Forest Service – Lake Tahoe Basin Management Unit – Agreement #21-PA-11051900-016
107

EXHIBIT A

SCOPE OF SERVICES
The Consultant will provide hazardous fuels reduction services in the City and consistent to the “Lake Tahoe Airport Hazardous Fuels Reduction” project (Exhibit D, Exhibit E, Exhibit F) during the 2023 operational season. Services will include mechanical cutting and removal of vegetation, based on feasible entry of mechanical equipment and available merchantable timber. The project area consists of a total of approximately 12.7 acres. Responsible state land managers and the City of South Lake Tahoe will perform all planning and permitting acquisition, as well as serve as project management. Each unit has specific operational plans, specifications and treatment prescriptions. Specific project details are outlined in the Vegetation Management Plan (Exhibit D) and all timber operations shall be compliant with the CA Forest Practice Rules and 14 CCR 1038.3, Forest Fire Prevention Exemption.

Project Requirements:

When completed, all requirements for the Vegetation Management Plan (Exhibit D), including special contract requirements not contained in the master contract, will be included in the information furnished to the Contractor with the request for proposal.

Representatives and Certifications during the Contract Performance Period:

Over the period of the contract and any extensions, if there are any changes to the Certifications and Representations submitted by the contractor at the time of award, the contractor shall notify the City of South Lake Tahoe of the changes in writing within 10 days of their occurrence.
108

EXHIBIT B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees (not to exceed) $136,969.50
Price per Unit: $10,785.00
Travel and out-of-pocket expenses $nil
(travel is included in the TOTAL (not to exceed amount)) TOTAL (not to exceed) $136,969.50

TIMELINE
Project start date, pending permitting*** September 12, 2023 Project end date September 12, 2024
109

EXHIBIT C

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

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

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

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

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

Consultant:

Jim Finney, Project Manager
By:________________________________________
110

EXHIBIT D
Certificate of Insurance
111

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A : NAIC #
NAME: CONTACT
(A/C, No): FAX
E-MAIL ADDRESS:

PRODUCER
(A/C, No, Ext): PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A

SUBR WVDADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person) COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOS ONLY AUTOS NON-OWNED OWNED SCHEDULED

ANY AUTO

AUTOMOBILE LIABILITY

Y / N WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $ AGGREGATE $
$
OCCUR
CLAIMS-MADE DED RETENTION $
PRODUCTS - COMP/OP AGG $ GENERAL AGGREGATE $ PERSONAL & ADV INJURY $ MED EXP (Any one person) $
EACH OCCURRENCE $ DAMAGE TO RENTED
PREMISES (Ea occurrence) $ COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)

CANCELLATION

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
8/22/2023
Arthur J. Gallagher Risk Management Services, LLC
419 Flint Street
Reno NV 89501
Vicki Vanderberg 775-419-0773 805-545-8224 [email protected] Houston Specialty Insurance Company 12936 MOUNFEN-04 Imperium Insurance Company 35408 Mountain F Enterprises, Inc
950 Iron Point Road, Suite 210
Folsom, CA 95630
536205090
A X 1,000,000 X 100,000 5,000 1,000,000 2,000,000 X
ECAP1-HS-GL-000076-04 6/1/2023 6/1/2024
2,000,000
B 1,000,000 X
X X
ECAP1-IIC-CA-000076-04 6/1/2023 6/1/2024
A X 4,000,000 X
ECAP1-HS-CX-000076-04 6/1/2023 6/1/2024
4,000,000 X
0 B ECAP1-IIC-WC-000076-04 6/1/2023 6/1/2024
X
1,000,000 1,000,000 1,000,000
Evidence of Coverage
The City of South Lake Tahoe
1052 Tata Ln
South Lake Tahoe CA 96150 112

EXHIBIT E

VEGETATION MANGEMENT PLAN
113
-1-

VEGETATION MANAGEMENT PLAN
General Description
The City of South Lake Tahoe will complete approximately 18.5 acres of hazardous fuel reduction located on land owned by the City of South Lake Tahoe. The unit is located within the vicinity of the South Lake Tahoe Airport; a high threat exists of wildland fire damage to both this important community infrastructure from the adjacent wildland due to a fire ignited from within the community or vice-versa. The goal of this Project is to reduce the risk of catastrophic wildfire within the Wildland Urban Interface (“WUI”). This goal will be achieved by reducing the horizontal and vertical continuity of forest fuels, and will allow for effective fire suppression activities as well as offer increased protection to life, property and the natural environment. Positive impacts to forest health can also be expected as inter-tree competition will be reduced, supporting increased vigor and growth rates for residual conifers, thereby reducing damage from agents such as insect and disease. With this increase in forest health comes an increase in fire resiliency; as the post-treatment stand will be dominated by larger, more fire tolerant trees more capable of surviving a wildfire event.

The overall goal of the proposed fuel treatment is to lower fire intensity and create a defense zone where firefighters can safely but aggressively achieve control of an advancing fire. By reducing fuel volume, disrupting fuel continuity, removing ladder fuels, and altering fuel composition; the intensity of the fire can be reduced resulting in shorter flame lengths, slower rates of spread, and flames burning surface fuels rather than spreading through tree crowns. Keeping fire on the surface also reduces the production of airborne embers and firebrands, the major source of spot fires and home ignition. While protecting community homes and lives is the paramount justification for creating the fuel break, the established defense zone also protects the surrounding property and watersheds from fire that may start in and spread from the community. The treatment of fuels at the Lake Tahoe Airport represents the final phase Airport projects hazardous fuels reduction projects.

Project Location
The Lake Tahoe Airport project is located at 1901 Airport Road in the City of South Lake Tahoe, California. More specifically, the fuel treatment unit is located to the west of the airport landing strip between the airport landing strip and Highway 89; Township 12 North, Range 18 East, Sections 9 and 16.

Project Timeframe of Operations
September 13, 2023 – October 15, 2023 Mechanical Treatment unit 1 114
-2-
Fuel Treatment Units
The proposed project contains a single unit of 18.5 net acres.

Maps attached to this Vegetation Management Plan outline the general location of the project area as well as unit specific maps.

1. Unit 1
Location
East of Hwy 89 at the Lake Tahoe Airport.

Fuel Type
Small diameter Jeffrey pine and Lodgepole pine with an average stand diameter of 9.4 inches. Bitterbrush and sagebrush scattered throughout the understory.

Fuel Treatment
Cutting and removal of merchantable timber, creating 20 foot spacing between healthy trees. Smaller diameter material to be masticated and spread on-site, or cut and removed via whole tree chipping. Wood chip should not exceed 3 inches in depth.

Access
Access for Unit 1 is provided through the Lake Tahoe Airport parking lot, Airport Road, and Kyburz Avenue.

Acres Treated by Combination of Hand Crew and Mastication 0 Acres Treated by Direct Thinning with Follow-Up Mastication 18.5 Acres Treated Total 18.5
115

EXHIBIT E

CAL FIRE FOREST FIRE PREVENTION EXEMPTION
116

FOREST FIRE PREVENTION

STATE OF CALIFORNIA, DEPARTMENT OF FORESTRY AND FIRE PROTECTION

NOTICE OF TIMBER OPERATIONS THAT ARE EXEMPT
FROM TIMBER HARVESTING PLAN REQUIREMENTS RM-73 (1038.3) (03/2019)

VALID FOR ONE YEAR FROM DATE OF RECEIPT BY CAL FIRE
FOR ADMIN. USE ONLY
EX. # ___________________________
Date of Receipt ____________________
Date Validated by CAL FIRE _________
The Director of the Department of Forestry and Fire Protection (CAL FIRE) is hereby notified of timber operations under the requirements of 14 CCR § 1038.3 for the purpose of cutting and removing of trees to eliminate the vertical continuity of vegetative fuels and the horizontal continuity of tree crownsfor the purpose of reducing flammable materialsto reduce fire spread, duration, and intensity, fuel ignitability, or ignition of tree crowns.

NOTE: • Notice of Exemption SHALL only be used on Timberlandsthat are within the most recent version of the Departments Fire Hazard Severity Zone Map, located at the Departments website at: https://osfm.fire.ca.gov/divisions/wildfire-prevention-planningengineering/wildland-hazards-building-codes/fire-hazard-severity-zones-maps/ that showsthe exemption will occur in areas determined to be moderate, high, or very high fire threat. 14 CCR § 1038.3(b) • Harvest Area shall not exceed three-hundred (300) acres. 14 CCR § 1038.3(c) • Only treeslessthan 30 inches outside bark stump diameter 8 inches above ground level may be harvested. 14 CCR § 1038.3(h) • Road Construction and Reconstruction:
➢ No tree larger than 36 inchesin diameter at stump height, measured 8 inches above ground level, may be removed for the purpose of road construction or reconstruction. 14 CCR § 1038.3(e)(5)(F) ➢ Trees between 30 and 36 inchesin stump diameter at stump height, measured 8 inches above the ground may be removed for the purpose of road construction and reconstruction, WHEN NO OTHER FEASIBLE OPTION EXISTS FOR ROAD ACTIVITIES. 14 CCR § 1038.3(e)(5)(F)
Timber Operations pursuant to the notice of exemption may not commence for ten (10) working days from the date of the Directors receipt of the notice unlessthis delay is waived by the director. If the Director does not act within ten (10) working days of receipt of the notice of exemption, Timber Operations may commence. 14 CCR § 1038.3(s)(4) REGISTERED PROFESSIONAL FORESTER (RPF) CERTIFICATION:
• In the professional judgement of the RPF the post-harvest slash treatment and stand conditions will lead to more moderate fire behavior. 14 CCR § 1038.3(s)(2)(B)
• RPF is certifying that the level of residualstocking SHALL be consistent with maximum sustained production of high-quality timber products. 14 CCR § 1038.3(s)(3)(A)
• RPF affirmsthat the construction or reconstruction of Temporary Roadsis necessary to provide accessto Harvest Areas when no other feasible alternatives exist. 14 CCR § 1038.3(s)(3)(B)
The Notice of Exemption SHALL be prepared,signed and submitted by a RPF. The RPF SHALL be retained to oversee all construction of Roads and Landings, and provide for necessary mitigation to avoid potential impacts. 14 CCR § 1038.3(s)

1. REGISTERED PROFESSIONAL FORESTER: Name: RPF #:

Address
City State Zip Phone
Signature:

Date:

EMAIL:
(optional)
Per 14 CCR 1038.3(f) The RPF responsible for submission of the Notice of Exemption shall designate Temporary Road locations, Landing locations, Tractor Road crossings of Class III Watercourses, Unstable Areas, or Connected Headwall Swales on the ground prior to submission of the notice of exemption.

Per 14 CCR 1038.3(m) the RPF shall comply with 14 CCR 1035.2 relating to the interaction between LTO and RPF. After approval of the Plan preparation process but before commencement of Timber Operations by each LTO assigned to the Plan, the responsible RPF or Supervised Designee, shall meet with either the LTO, or their representative, who will be on the ground and directly responsible for Timber Operation. The purpose of the meeting shall be for the RPF to familiarize the LTO with the Plan, the Plan area, and specific applicable requirements of the Plan. The meeting shall be on-site if requested by either the RPF or LTO. An on-site meeting is required between the RPF or supervised designee familiar with on-site conditions and LTO to discuss protection of any archaeological or historical sites requiring protection if any such sites exist within the Site Survey Area pursuant to Section 929.2[949.2,969.2](b).

Date Expires ______________________
Danielle E. Bradfield 2808
PO Box 1411
Quincy CA 95971 (530) 927-7095
117

2. LICENSED TIMBER OPERATOR(S): Name: Lic #:

Address
City State Zip Phone
EMAIL: (optional)

3. TIMBERLAND OWNER(S) OF RECORD: Name:

Address
City State Zip Phone
EMAIL: (optional)
I certify, under penalty of perjury, that I have read and understand the information on this form and that I am the Timberland Owner of record.

Signature: Date:

4. TIMBER OWNER(S) OF RECORD: Name
Address
City State Zip Phone
EMAIL: (optional)
TBD
City of South Lake Tahoe
1052 Tata Ln
South Lake Tahoe CA 96150
City of South Lake Tahoe
1052 Tata Ln
South Lake Tahoe CA 96150
530-542-6182
530-542-6182
118
TIMBER TAX NOTICE: The TIMBER OWNER is responsible for payment of a yield tax.

For timber yield tax information or for assistance with these questions call 1-800-400-7115, or write: Timber Tax Section, MIC: 60, California Department of Tax and Fee Administration, P.O. Box 942879, Sacramento, CA 94279-0060; or see the CDTFA Web Page on the Internet http://www.cdtfa.ca.gov.

TIMBER TAX INFORMATION: Some small or low value harvests may be exempt from the timber yield tax (Revenue and Taxation Code sec. 38116)
Timber Owners may be considered exempt if the value of the harvesting operations does not exceed $3,000 dollars within a quarter, according to CDTFA Harvest Value Schedules, Rule 1024.

IF THE TIMBER OWNER BELIEVES HARVESTING MAY BE EXEMPT (see timber tax exemption language above for low value harvests) PLEASE CHECK BELOW:

FINAL DETERMINATION of tax exempt status will be made by the Timber Tax Section of the California Department of Tax and Fees Administration. If you think you are exempt based on the directions above please complete the below information so the Timber Tax Section can make the final determination.

IF YOU WOULD LIKE CDTFA TIMBER TAX SECTION TO CONSIDER A TAX EXEMPTION BASED ON PROJECTED HARVEST PLEASE COMPLETE THE INFORMATION BELOW.

A. Circle/Check the option that most closely estimates the total volume for this harvest, in thousands of board feet (mbf - Net Scribner short log):

Under 8 mbf 8-15 mbf 16-25 mbf Over 25 mbf
B. Estimate what percentage of timber will be removed during this harvest: (percentages provided should equal 100%) % % % %
Redwood Ponderosa/Sugar
Pine
Cedar Port-Orford Cedar Other Conifer Other
Hardwoods
C. Fuelwood over 150 cords? Yes No D. Christmas trees over 3,000 lineal feet? Yes No

5. 14 CCR § 1038.1(c)(12) NO timber harvesting is permitted within the standard width of a Watercourse or Lake Protection Zone (WLPZ) per 14 CCR § 916.4 [936.4, 956.4](b) (exceptions apply - see below) or within a WLPZ in a watershed identified as Anadromous Salmonids Planning watersheds(ASP) per 14 CCR § 916.9 [936.9, 956.9](s), unless the harvesting in an ASP WLPZ is recommended in writing by CDFW to address specifically identified forest conditions, 14 CCR § 916.9(s)(6) (optional) Two exceptions permitted in WLPZs outside of an ASP watershed:
(Please indicate below if trees meeting the exception identified below are anticipated to be harvested. (If not, then leave blank) • SANITATION-SALVAGE harvesting per 14 CCR § 913.3 [933.3, 953.3] or • for the removal of DEAD or DYING trees per 14 CCR § 916.4 [936.4, 956.4](b) Exception in WLPZ of ASP Watersheds
• Will harvesting occur within a WLPZ of an ASP watershed based on written recommendation from CDFW? Yes No If YES then provide a copy of the written recommendation from CDFW identifying the specific reason for the recommended harvesting.

NOTE: Trees to be harvested shall be marked by a RPF or a supervised designee of the RPF, PRIOR TO TIMBER OPERATIONS.

6. 14 CCR § 1038.3(p) No Timber Operations on any site that satisfies the criteria listed in 14 CCR § 895.1 for a Significant Archaeological or Historical Site (information on some of these sites may be available from the Information Centers of the California Historical Resources Information System within the Department of Parks and Recreation):

Per 14 CCR § 1038.3(o) upon submission of theNotice of Exemption, a Confidential Archaeological Letter pursuant to 14 CCR § 929.1[949.1, 969.1] must be provided to the Director.

Douglas-Fir Fir
✓ ✓
51 48
1 ✓
✓
119
Per 14 CCR § 1038.3(o) upon submission of the Notice of Exemption the RPF shallsend a copy of theNotice of Exemption to the current list of Native Americans as defined in 14 CCR § 895.1.

Has the RPF sent a copy of the Notice of Exemption to the Native Americans on the current Contact List as defined in 14 CCR § 895.1? (required)
YES NO
DATE Notice of Exemption was mailed: __________________ If ‘NO” Do not submit Notice of Exemption until the notice has been sent to the appropriate Native Americans PRE-HARVEST STAND STRUCTURE: (required)

7. Description of the preharvest stand structure: (14 CCR § 1038.3(s)(2)(A): (consider in your description species, basal area, and diameter distributions)
Preharvest stand structure estimates:

Tree Status Data
Cut Leave Total TPA Total TPA %
DBH (inches) TPA TPA % TPA TPA %
4 114.6 100.0% 0.0% 114.6 100.0%
6 178.3 100.0% 0.0% 178.3 100.0%
8 157.6 100.0% 0.0% 157.6 100.0%
10 73.3 88.9% 9.2 11.1% 82.5 100.0%
12 6.4 16.7% 31.8 83.3% 38.2 100.0%
14 4.7 25.0% 14.0 75.0% 18.7 100.0%
16 3.6 12.5% 25.1 87.5% 28.6 100.0%
18 0.0% 14.1 100.0% 14.1 100.0%
20 0.0% 4.6 100.0% 4.6 100.0%
22 0.0% 1.9 100.0% 1.9 100.0%
24 0.0% 1.6 100.0% 1.6 100.0%
26 0.0% 2.7 100.0% 2.7 100.0%
28 0.0% 1.2 100.0% 1.2 100.0%
30 0.0% 1.0 100.0% 1.0 100.0%
32 0.0% 0.9 100.0% 0.9 100.0%
34 36 0.0% 0.7 100.0% 0.7 100.0%
38 40
42 44
50 Stand Total 538.4 83.2% 108.8 16.8% 647.2 100.0%
Table 1: Pre & Post harvest Stand Density by DBH Class
✓
120
Species Basal Area Description of Diameter
The exemption area Distribution
contains the Sierra
Mixed Conifer type,
including Jeffrey Pine
(51%), White Fir (1%),
and Lodgepole Pine
(48%), as determined
through forest
inventory sample plots
of trees 4” DBH and
greater.

The preharvest stand contains excessive
stand density of approximately 310 square
feet basal area per acre in trees 4” DBH and
greater. Table 1 shows preharvest and
harvest stand density by diameter class,
and Table 2 depicts preharvest and harvest
stand density by species. Post-harvest stand
density will be consistent with 14 CCR
1038.3(j).

The preharvest project area contains conifers 1” – 36” DBH (see Figure 1) with a QMD of 9.4 inches. The preharvest stand historically had been occupied by mixed conifer forest dominated by Jeffrey Pine.

Currently, the project area exhibits a much higher prevalence of trees below 20” DBH, primarily Jeffrey Pine and lodgepole pine with a very small proportion of white fir present. Preharvest stand density in the preharvest stand averages 647 TPA, excessive for Site Class Ill mixed conifer stand types. The proposed treatment will reduce overstocking in the treatment area through thinning the 4”-16” DBH classes, and it will reduce the TPA to approximately 109 (Table 3). Furthermore, a reduced stand density will aid to increase stand resilience to wildfire.

PRE & POST-HARVEST Quadratic Mean Diameter (QMD): (required)

8. QMD of trees 8 inches dbh or greater in the pre-harvest stand SHALL be increased in the post-harvest stand. The submitted notice of exemption SHALL report the expected post-harvest increase inQMD: 14 CCR § 1038.3(g) Pre-harvest QMD: Post-harvest QMD: 14 CCR § 1038.3(s)(2)(B) Expected Post-harvest QMD Increase: 6.8

9. TIMBER MARKING: 14 CCR § 1038.3(i) All treesthat are harvested or all treesthat are retained SHALL be marked or sample marked by, or under the supervision of a RPF before felling operations.

Completed by RPF Supervised Designee Both
Trees marked: Leave trees Harvest trees Both

9.4 16.2
121
Harvest area marked: Entire area
Sample area 10% up to 20 acres per stand type Both
NOTE: Sample marking shall be limited to homogeneous forest stand conditions typical of plantations.

When trees are sample-marked, the prescription for unmarked areas SHALL be in writing. 14 CCR 1038.3(i) RPF shall provide written prescription describing how trees will be designated in the unmarked areas: (required) (if
prescription will exceed the space provided, please send as attachment) TREE SELECTION CRITERIA: 14 CCR § 1038.3(s)(3)(C) (required)

10. Provide the selection criteria for the trees to be removed or the trees to be retained. The RPF SHALL consider retaining elements, where feasible, including, but not limited to ground level cover necessary for the long-term management of local wildlife populations. Selection criteria shallspecify how the treesto be removed, or how the treesto be retained, will be designated.

RPF Prescription for unmarked
areas:

Trees to be harvested in unmarked areas shall be harvested according to the following designation prescription:

A) Tree removal shall target suppressed, Intermediate, and understory trees In order to increase crown to base height and the Quadratic Mean Diameter of the stand.

B) Only trees less than thirty (30) Inches in stump diameter, measured eight (8) Inches above ground level, may be removed as per 14 CCR 1038.3(h).

C) In stands where the preharvest crown canopy of Dominants and Codominants is occupied by trees less than fourteen (14) inches in dbh, a minimum of one-hundred (100) trees over four inches in diameter shall be retained per acre for site I, II, and III lands as per 14 CCR 1038.3(j).

D) The following canopy, retention, and spacing standards shall be achieved on at least eighty (80) percent of the Harvest Area as per 14 CCR 1038.3(k):
(1) Minimum 50% post treatment canopy closure shall be retained as per 14 CCR 1052.4 (d)(3)(A) for the mixed conifer stand type.
(2) Post treatment stand shall contain no more than two-hundred (200) trees per acre over three (3) inches in dbh.
(3) Vertical spacing shall be achieved by treating dead fuels, excluding dead branches on the trees retained for stocking, to a minimum clearance distance of eight (8) feet measured from the base of the live crown of the post-harvest Dominants and Codominants to the top of the dead surface or ladder fuels, whichever Is taller.

E) Slash and woody debris shall be treated to achieve a maximum post-harvest depth of eighteen (18) Inches above the ground as per 14 CCR 1038.3(d)(1) except within onehundred-fifty (150) feet from any point of an approved and legally permitted structure that complies with the California Standards Building Code.
(1) All surface fuels within one-hundred-fifty (150) feet of an Approved and Legally Permitted Structure, which could promote the spread of wildfire, shall be chipped, burned, or removed within forty-five (45) days from the start of Timber Operations. (2) All fuel treatments shall be completed within one (1) year from the date the Director receives the notice. This requirement does not apply to burning, which Instead shall be completed within two (2) years from the date the Director receives the notice.

F) To provide for wildlife habitat as per 14 CCR 1038.3(s)(3)(C), conifer snags 16” DBH and greater and over 20 feet tall shall be retained at a minimum rate of 2 per acre where they exist in the preharvest stand, provided they do not pose a safety risk during and following timber operations. Native shrubs, brush, large down woody debris, and similar ground cover may be retained in a “mosaic” arrangement provided such arrangement does not provide for the vertical or horizontal continuity of fuels within the residual stand.

G) The level of residual Stocking shall be consistent with maximum sustained production of high-quality timber products. The residual stand shall consist primarily of healthy and vigorous Dominants and Codominants from the preharvest stand. Trees retained to meet the Basal Area stocking standards shall be selected from the largest trees available on the project area prior to harvest. In no case shall stocking be reduced below the standards found within 14 CCR § 913.3 [933.3, 953.3] (a): 14 CCR 933.3(a)(1)(A)(Southern) states: On Site III mixed conifer lands, at least 75 sq. ft. per acre of basal area shall be left, and on Site III lands where greater than 50% of the basal area Is pine, at least 75 sq. ft. per acre of basal area shall be left. 122
(if
description will exceed the space provided, please send as attachment) POST-HARVEST CANOPY STOCKING LEVELS: 14 CCR § 1038.3(s)(3)((A) (required) The residual stand shall consist primarily of healthy and vigorous Dominants and Codominants from the preharvest stand. Trees retained to meet the Basal Area stocking standards shall be selected from the largest trees available on the project area prior to harvest. In no case, shall stocking be reduced below the standards found within 14 CCR § 913.3 [933.3, 953.3] (a).

11. Willstocking be met where the pre-harvest dominant and codominant crown canopy is occupied primarily by trees? (optional) Specify the dominant and codominant crown canopy which will be occupied by the following tree sizes:

Greater than 14 inches dbh Lessthan 14 inches dbh
Coastal Forest District Northern Forest District Southern Forest District

12. Site Classification: Site I Site II Site III Site IV Site V (optional)

13. Forest Type: Mixed Conifer Pine East Side Pine Conifer Coast Redwood Douglas Fir (optional) NOTE: Basal area stocking standard requirements may change based on Forest District Site Classification, and Forest Type per 14 CCR § 913.3 [933.3, 953.3] (a).

POST-HARVEST CANOPY CLOSURE REQUIREMENTS:

14. 14 CCR § 1038.3(j): if the preharvest crown canopy of Dominants and Codominantsis occupied by treeslessthan 14 inchesin dbh, a minimum of 100 trees over 4 inchesin dbh shall be retained per acre for Site I, II, and III lands and a minimum of 75 trees over 4 inchesin dbh shall be retained per acre for Site IV and V lands. 14 CCR § 1038.3(j) Please select below:

Treeslessthan 14 inches dbh for Site I, II, and III lands(100 trees per acre) Treeslessthan 14 inches dbh for site IV and V lands(75 trees per acre) 14 CCR § 1038.3(k)(1-2) reference 14 CCR § 1052.4(d)(3)(A) Minimum post treatment canopy closure of dominant and codominant trees shall be:
• 40% east side pine forest types.
• 50% for Coastal Redwood and Douglas-fir forest typesin or adjacent to communities and legalstructures per 14 CCR 1052.4(c)(1-2) • 60% for Coastal Redwood and Douglas-fit types outside of communities and legalstructures per 1052.4(c)(1-2) • 50% for mixed conifer and all forest types.

15. Will operations within Coastal Redwood and Douglas-fir forest types occur within ¼ mile or 500 feet of an approved and legally permitted structure defined by the California Building Code? YES NO

16. Isthe legally permitted structure within or adjacent to a “Community at Risk” defined by the “California Fire Alliance List of Communities at Risk”.

YES NO
If yes, Identify the name of the Community at Risk:

17. Isstructure density greater than 1 structure per 20 acres? YES NO NOTE: • Canopy closure requirements change based on forest type and proximity to legally permitted structures within or Describe how trees will be
designated:
(for removal or retention)
TREE SELECTION: Trees to be harvested will include select codominant, intermediate, and suppressed trees where upon removal will eliminate the vertical continuity of fuels (ladder fuels) and horizontal continuity of fuels (tree crowns) for the purpose of reducing the rate of spread, duration and intensity, fuel ignitability, or ignition of tree crowns. Only trees less than thirty (30) inches in stump diameter, measured eight (8) inches above ground level, may be removed as per 14 CCR 1038.3(h). Trees specifically targeted for removal include those 1) In the suppressed and Intermediate crown classes, 2) those with poor vigor such as less than 30% live crown, sparse crown, or otherwise poor form; 3) and those with visible structural defects, and/or evidence of insect and/or disease infestation. Codominant trees may be removed to reduce horizontal crown fuel continuity and stand density, provided the stand QMD increases within the residual stand as per 14 CCR 1038.3(g) and the minimum stocking standards of 14 CCR 933.3 are met.

WILDLIFE CONSIDERATIONS: Conifer Snags 16”+ DBH and over 20 feet tall shall be retained at a minimum rate of 2 per acre where they exist in the preharvest stand provided they do not pose a safety risk during and following timber operations. Native shrubs, brush, large down woody debris, and similar ground cover may be retained in a “mosaic” arrangement provided such arrangement does not provide vertical or horizontal continuity of fuels within the residual stand. ✓
✓
✓
South Lake Tahoe
123
adjacent to communities at risk identified by the “California Fire Alliance List of Communities at Risk.” • Post-harvest treatment stand shall contain no more than 200 trees per acre over 3 inches in dbh. 14 CCR § 1038.3(k)(2) • Vertical spacing shall be achieved by treating dead fuels excluding dead branches on the tree retained for stocking, to a minimum clearance distance of 8 feet measured from the base of the live crown of the post-harvest Dominants and Codominants to the top of the dead surface or ladder fuels, whichever is taller. 14 CCR § 1038.3(k)(3) FUEL TREATMENT: 14 CCR § 1038.3(d)(1-4)
• All logging slash created by the timber operations shall be treated to achieve a maximum post-harvest depth of 18” inches above the ground except within 150 feet from any point of a legally permitted structure that complies with the California Standards Building Code. 14 CCR § 1038.3(d)(1)
• All surface fuels within 150 feet of an Approved and Legally Permitted Structure, which could promote the spread of wildfire, SHALL be chipped, burned, or removed within 45 days from the start of Timber Operations. 14 CCR § 1038.3(d)(2) • All fuel treatments SHALL be completed within 1 year from the date the Director receives the Notice. This does not apply to burning, which instead shall be completed within 2 years from the date the Director receives the notice. 14 CCR § 1038.3(d)(3) • The requirements of this subsection shall not supersede the requirements of PRC § 4291

18. Will any timber operations be within 150 feet of an Approved and Legally Permitted Structure? YES NO Fuel Treatment Method: Chipping Removing Burning Other
OTHER: Machine Mastication
CONSTRUCTION or RECONSTRUCTION OF TEMPORARY ROADS ON SLOPES OF 30% OR LESS: 14 CCR § 1038.3(e) 14 CCR § 1038.3(e) The construction or reconstruction of temporary roads on slopes of 30% or less shall be allowed if ALL of the following conditions are meet.
• Temporary Roads or Landings SHALL NOT be located on unstable areas. 14 CCR § 1038.3(e)(1) • Temporary Roads SHALL BE single lane in width. 14 CCR § 1038.3(e)(2) • Temporary Roads SHALL NOT be located across a Connected Headwall Swale. 14 CCR § 1038.3(e)(3) • Construction or reconstruction of Temporary Roads, Landings or Watercourse crossings SHALL NOT occur during the winter period.
• NO operations SHALL BE permitted on roadsthat are notsubject to Hydrological Disconnection, or exhibit Saturated Soil Conditions.
• NO Logging Road or Landing construction, or re-construction, activities shall occur within 200 feet of a ClassI and II watercourse.
• NO Logging Road or Landing Construction, or re-construction, activitiesshall occur within 50 feet of a ClassIII watercourse.
14 CCR §
1038.3(e)(4)(A)
14 CCR §
1038.3(e)(4)(D)
14 CCR §
1038.3(e)(4)(D)
14 CCR § 1038.3(e)(5) Temporary Road construction or re-construction, shall be limited to no more than two (2) miles of road per ownership within a single Planning Watershed (CALWATER 2.2) per any five (5) year period. ➢ Has temporary road construction or reconstruction within the planning watershed occurred within the last 5 years under a Forest Fire Prevention Exemption?
YES NO
If YES indicate how many feet/miles:___________
NOTE: If total is greater than 2 miles, within the previous 5 years no additional road construction may occur.

20. Temporary road construction and/or reconstruction shall not exceed:
(please select which criteria below will be applied to this Exemption and list the total length of temporary road(s) to be constructed or reconstructed)
Will any
temporary roads constructed or reconstructed be connected to other temporary roads construction under previous or subsequent exemptions filed pursuant of this section 14 CCR § 1038.3(e)(5)(D)? YES NO
If YES then no additionalroad construction may occur
NOTE: • Prior to the completion of Timber Operations, all Temporary Roads constructed or reconstructed under this section shall undergo Abandonment in a manner which uses protective measures that will effectively remove them from the Permanent Road Network, as defined in 14 CCR § 895.1. 14 CCR § 1038.3(e)(5)(E) • The RPF responsible for submission of the Notice of Exemption shall designate Temporary Road locations, Landing locations, Tractor Road crossings of Class III Watercourses, Unstable Areas, or Connected Headwall Swales on the ground prior to submission of the Notice of Exemption. 14 CCR § 1038.3(f) 14 CCR § 1038.3(e)(5)(A-C) ✓ Feet/ Miles
Exemptions Less than 40 acres Cumulative length of 300 feet Exemptions between 40 and 80
acres
14 CCR § 1038.3(e)(4)
NOT to exceed 300 to 600 feet determined on a pro rata
basis by total acreage affected by exemption.

Exemptions over 80 acres Shall not exceed 600 feet
✓
✓
124

21. TENTATIVE COMMENCEMENT DATE OF TIMBER OPERATIONS: (required)_ TBD Following Approval _ 14 CCR § 1038.3(s)(D) Before beginning Timber Operations, the RPF responsible for submittal of the Notice of Exemption shall notify the Department, the appropriate RWQCB, the CDFW, and the CGS of the actual commencement date of operations. The notification, by telephone, mail, or email, shall be directed to the appropriate agency personnel and contact information for the appropriate agency personnel shall be provided by the Department on the notice of exemption form (see Below) If the notification is provided by mail, Timber Operations may not commence for three (3) days after the postmark date of notification.

Region Email Region Email Region Email

CDFW CRWQB CGS
1 – Inland [email protected] 1 [email protected] Sacramento [email protected] 1 – Coast [email protected] . 5 [email protected] Eureka [email protected] 2 [email protected] 6 [email protected] Redding [email protected] 3 [email protected] Santa Rosa [email protected] 4 [email protected]
125

22. 14 CCR 1038.2 - The submitted Notice of Exemption shall indicate if more than one Yarding system is to be used and identify the systems.

CHECK each Yarding method to be utilized: If more than one type of method is selected, these methods must be identified on the accompanying maps. (required)
Tractor, including end/long lining Cable, ground lead Helicopter Rubber tired skidder, Forwarder Cable, High lead Other
Feller buncher Cable, Skyline
Shovel yarding

23. 14 CCR § 1038.3(s)(C) - Designate the legal land description of the location of the Timber Operation. 14 CCR § 1038.4 attach a USGS 7.5- minute quadrangle map or equivalent map showing the location of:
• Boundaries of logging areas 14 CCR § 1038.4(a)
• Boundaries of Yarding (logging) systems, if more than one system is used. 14 CCR § 1038.4(b) • Location of all roads to be used for, or potentially impacted by, Timber Operations. 14 CCR § 1038.4(c) ➢ Classification of ALL roads as Proposed, Permanent, Seasonal, Temporary, Deactivated, or Proposed. 14 CCR § 1038.4(c)(1)
➢ Roads and Landings located in Watercourses, Lakes, WLPZs, Marshes, Wet Meadows and other Wet Areas, other than at road Watercourse crossings. 14 CCR § 1038.4(c)(2)
➢ Logging Roads that provide access to rock pits and water drafting sites, and the location of water drafting sites. 14 CCR § 1038.4(c)(3)
➢ Public Roads within one-quarter (1/4) mile of the Harvest Area. 14 CCR § 1038.4(c)(4) ➢ The location of Significant or Existing Potential Erosion Sites on all Roads and Landings pursuant to 14 CCR § 923.1 (e). 14 CCR § 1038.4(c)(5)
• For all constructed and reconstructed Logging Roads and Landings, the following shall be mapped: 14 CCR § 1038.4(d) ➢ Location of Logging Road grades greater than fifteen (15) percent for over two-hundred (200) continuous feet or Logging Roads grades exceeding twenty (20) percent. 14 CCR § 1038.4(d)(1) ➢ Location of Road Failures on existing Logging Roads to be Reconstructed. 14 CCR § 1038.4(d)(2) ➢ Location of Landings, specifying those that require substantial excavation and those in excess of one-quarter acre in size. 14 CCR § 1038.4(d)(3)
➢ Location of excess material disposal sites on slopes greater than forty (40) percent or on active Unstable Areas. 14 CCR § 1038.4(d)(4)
• Location of all Tractor Road Watercourse crossings of classified Watercourses. 14 CCR § 1038.4(e) ➢ Location of Erosion Hazard Ratings, if more than one rating exists. 14 CCR § 1038.4(f) ➢ Location of Watercourses and Lakes with Class I, II, III, or IV waters. 14 CCR § 1038.4(g) ➢ Location of known Unstable Areas. 14 CCR § 1038.4(h)
➢ Location of understocked areas prior to Timber Operations, and other areas not normally bearing timber to at least a 20- acre minimum, or as specified in the district rules. 14 CCR § 1038.4(i) ➢ Location of boundaries of timber-site classes needed for determination of Stocking Standards to be applied, down to at least a twenty (20) acre minimum, or as specified in the Forest Practice District Rules. 14 CCR § 1038.4(j) ➢ Location of any Special Treatment Areas. 14 CCR § 1038.4(k) • Appurtenant Roads may be shown on a separate map which may be planimetric with a scale as small as one-half inch equals one mile. Color coding may not be used. 14 CCR § 1038.4
Additional maps, which may be topographic or planimetric, may be used to provide additional information, to show details, and improve map clarity. A legend shall be included indicating the meaning of the symbols used. It will be helpful to describe the accessroute to the timber operation so that it can be easily located, and/or include an assessor's parcel map for small areas. (required) The following are limitations or requirements for timber operations conducted under a Notice of Exemption for the cutting and removing of Base Meridian Township Range Section County Acreage (estimated) PLANNING WATERSHED - CALWATER V2.2
Name Watershed Identification Number CALWATER Version
Assessors Parcel
# (optional)
MDBM 12N 18E 9,16 El Dorado 12.7
Truckee Marsh 8634.100402 V2.2
126
trees to eliminate the vertical continuity of vegetative fuels and the horizontal continuity of tree crowns for the purpose of reducing flammable materials to reduce fire spread, duration, intensity, fuel ignitability, or ignition of tree crowns:

1. This Notice of Exemption SHALL be prepared, signed, and submitted to the Department by a Registered Professional Forester (RPF) 14 CCR § 1038.3(s) and received by CAL FIRE at the appropriate office listed below prior to the commencement of timber operations. ➢ Coastal Special Treatment Areas and Marin County the Director shall have ten calendar days from date of receipt to accept or reject the Notice of Timber Operations.

2. 14 CCR § 1038.3(a-t) places certain limits on the harvesting. These limits need to be reviewed to assure compliance.

3. 14 CCR § 1038.3 Timber operations conducted under this notice shall comply with all operational provisions of the Forest Practice Act and District Forest Practice Rules applicable to "Timber Harvest Plan," "THP," and "plan." The requirements to submit a completion and stocking report normally do not apply. However, Completion and Stocking reports are required for areas when operations occur within COASTAL SPECIAL TREATMENT AREAS and / or MARIN COUNTY. The landowner shall submit to CAL FIRE a RM-71 Completion and Stocking report, per PRC 4585 and PRC 4587. The requirements for environmental review under the California Environmental Quality Act (See 14 CCR § 15300.1) do not apply.

4. There are special requirements for timber operations conducted in Coastal Commission Special Treatment Areas and in counties with special rules adopted by the Board of Forestry and Fire Protection. These rules should be reviewed prior to submitting this notice to CAL FIRE. 14 CCR § 1038.1(c)(6)

5. All timber operations conducted in the Lake Tahoe Region must have a valid Tahoe Basin Tree Removal Permit, as defined by the Tahoe Regional Planning Agency (TRPA), or shall be conducted under a valid TRPA Memorandum of Understanding, when such a permit is required by TRPA, 14 CCR § 1038.3(n)

6. Harvesting under this Notice of Exemption is limited to those trees that eliminate the vertical continuity of vegetative fuels and the horizontal continuity of tree crowns, for the purpose of reducing the rate of fire spread, duration intensity, fuel ignitability, or ignition of tree crowns. 14 CCR § 1038.3

7. The logging area shall not exceed 300 acres in size. 14 CCR § 1038.3(c) and tree harvesting shall decrease fuel continuity and Increase the quadratic mean diameter (QMD) of the stand. 14 CCR § 1038(j)(1)

8. No trees larger than thirty (30) inches outside bark stump diameter, measured eight (8) inches above ground level may be removed for commercial purposes. 14 CCR § 1038.3(h)

9. 14 CCR § 1038.3(s)(3)(A) The residual stand shall consist primarily of healthy and vigorous Dominants and Codominants from the preharvest stand. Trees retained to meet the Basal Area stocking standards shall be selected from the largest trees available on the project area prior to harvest. In no case shall stocking be reduced below the standards found within 14 CCR § 913.3 [933.3, 953.3] (a).

10. Road Construction and Reconstruction:
➢ No tree larger than 36 inches in diameter at stump height, measured 8 inches above ground level, may be removed for the purpose of road construction or reconstruction. 14 CCR § 1038.3(e)(5)(F) ➢ Trees between 30 and 36 inches in stump diameter at stump height, measured 8 inches above the ground may be removed for the purpose of road construction and reconstruction, WHEN NO OTHER FEASIBLE OPTION EXISTS FOR ROAD ACTIVITIES. 14 CCR § 1038.3(e)(5)(F)

11. Timber Operations conducted during the Winter Period shall comply with the applicable Rule sections under 14 CCR § 923 [943, 963] et seq. 14 CCR § 1038.3(e)(4)(B)

12. Use of Temporary Roads shall comply with the operational provisions of 14 CCR § 923 [943, 963] et seq. 14 CCR § 1038.3(e)(4)(C)

13. Per 14 CCR 1038.3(f) The RPF responsible for submission of the Notice of Exemption shall designate Temporary Road locations, Landing locations, Tractor Road crossings of Class III Watercourses, Unstable Areas, or Connected Headwall Swales on the ground prior to submission of the nNotice of Exemption.

14. No helicopter yarding shall be allowed 14 CCR § 1038.3(l)

15. 14 CCR § 1038.3(d)(1-3) Slash and Woody Debris shall be treated to achieve a maximum post-harvest depth of eighteen (18) inches above the ground except within one-hundred-fifty (150) feet from any point of an approved and legally permitted structure that complies with the California Standards Building Code.
➢ All surface fuels within one-hundred-fifty (150) feet of an Approved and Legally Permitted Structure, which could promote the spread of wildfire, shall be chipped, burned, or removed within forty-five (45) days from the start of Timber Operations. ➢ All fuel treatments shall be completed within one (1) year from the date the Director receives the notice. This requirement does not apply to burning, which instead shall be completed within two (2) years from the date the Director receives the notice. 127

16. No tractor or heavy equipment operations on slopes greater than 50%. 14 CCR § 1038.1(c)(5)

17. No construction of new tractor roads on slopes greater than 40%. 14 CCR § 1038.1(c)(5)

18. No tractor or heavy equipment operations on known Unstable Areas. 14 CCR § 1038.1(c)(7)

19. No timber harvesting within the standard width of a watercourse or lake protection zone, as defined in 14 CCR § 916.4 [936.4, 956.4](b), except Sanitation-Salvage harvesting, as defined in 14 CCR § 913.3 [933.3,953.3], where immediately after completion of operations, the area shall meet the stocking standards of 14 CCR § 912.7 [932.7,952.7](b)(2), or, except the removal of dead or dying trees where consistent with 14 CCR § 916.4 [936.4,956.4] (b). Trees to be harvested within a WLPZ shall be marked by, or under the supervision of, a RPF prior to timber operations. 14 CCR § 1038.1(c)(12)

20. ASP watersheds – No timber operations are allowed in a WLPZ, or within any ELZ or EEZ designated for watercourse or lake protection, under exemption notices except (1) Hauling on existing roads (2) Road maintenance (3) Operations conducted for public safety (4) Construction or reconstruction of approved watercourse crossings (5) Temporary crossings of dry Class III watercourses that do not require notification under Fish and Game Code §1600 et seq. (6) Harvesting recommended in writing by CDFW to address specifically identified forest conditions.

21. If a Notice of Exemption has been accepted by the Director and will use pesticides or herbicides on the Harvest Area within one (1) calendar year of the date of acceptance, the timberland owner shall notify the appropriate Regional Water Quality Control Board within ten (10) days prior to application of pesticides or herbicides.

22. Subsequent to the completion of Timber Operations operating under this section, the Department shall conduct an onsite inspection to determine compliance with this section. The Department shall notify the appropriate RWQCB, the CDFW, and the CGS seven (7) days prior to conducting the onsite inspection

23. Operations conducted under a Notice of Exemption are NOT permitted in known sites of rare, candidate, threatened or endangered plants and animals if the sites will be disturbed or damaged. NO timber operations may occur within a buffer zone of a listed, or sensitive species defined by 14 CCR § 895.1. 14 CCR § 1038.1(c)(10-11)

24. If any activities related to timber operations, as defined by PRC 4527, are to include any of the following activities in any river, stream or lake, including episodic and perennial waterways, a notification to the California Department Fish and Wildlife is required pursuant to Fish and Game Code §1602: 1) A substantial alteration of the bed, bank, or channel; 2) A substantial diversion (i.e. water drafting) or obstruction of the natural flow; or 3) use of material from or deposit of material into the watercourse. Information on the Lake and Streambed Alteration Program, as well as notification forms, may be found at the following link:
https://www.wildlife.ca.gov/conservation/lsa.

25. All activities conducted pursuant to this Notice of Exemption occur within the most recent version of the Department’s “Fire Hazard Severity Zone Map in moderate, high, and very high fire threat zones. 14 CCR § 1038.3(b)

26. The requirements to submit a completion and stocking report do not normally apply. However, Completion and Stocking reports are required for areas when operations occur within COAST, SPECIAL TREATMENT AREAS and / or MARIN COUNTY. The landowner shall submit to CAL FIRE form RM-71 Completion and Stocking report. Per PRC 4585 and PRC 4587.

27. A Licensed Timber Operator must be designated upon submission of this notice.

28. RPF shall include a Confidential Archaeological Letter (CAL) with the exemption notice submitted to the Director. The CAL shall include all information required by 14 CCR § 929.1 [949.1, 969.1](c)(2), (7), (8), (9), (10) and (11), including site records, if required pursuant to 14 CCR §§ 929.1 [949.1, 969.1](g) and 929.5. The discovery of human remains requires immediate notification to appropriate agencies. 14 CCR § 929.3 [949.3, 969.3] requires notification to CAL FIRE. The area must not be further disturbed, and any area reasonably suspected to overlie adjacent human remains, until an evaluation is completed by the County Coroner pursuant to Health and Safety Code § 7050.5. If the human remains are determined to be Native American, the Native American Heritage Commission must also be notified pursuant to Public Resources Code § 5097.98. 14 CCR § 1038(j)(11) 128
The following suggestions may help ensure your compliance with the Forest Practice Rules:

1. Timber Owners, Timberland owners and Timber Operatorsshould obtain and review copies of the Forest Practice Rules pertaining to the Notice of Emergency. Copies may be obtained from BARCLAYS LAW PUBLISHERS, P.O. Box 2006, San Francisco, CA 94126, CAL FIRE, Forest Practice, P.O. Box 944246, Sacramento, CA 94244-2460; or CAL FIRE’s Web Page at http://www.fire.ca.gov.

2. Contact the CAL FIRE office listed below for questionsregarding the use of this notice.

FILE THISNOTICE WITH THE CAL FIRE OFFICE BELOW FOR THE COUNTY IN WHICH THE OPERATION WILL OCCUR:

Alameda, Colusa, Contra Costa, Del Norte Humboldt, Lake, Marin, Mendocino, Napa, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, western Trinity and Yolo Counties.

Forest Practice Program Manager

CAL FIRE
135 Ridgway Avenue
Santa Rosa, CA 95401
Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou, Sutter, Tehama, eastern Trinity and Yuba Counties.

Forest Practice Program Manager

CAL FIRE
6105 Airport Road
Redding, CA 96002
Alpine, Amador, Calaveras, El Dorado, Fresno, Imperial, Inyo, Kern, Los Angeles, Madera, Mariposa, Merced, Mono, Monterey, Orange, Riverside, San Benito, San Bernardino, San Diego, San LuisObispo, Santa Barbara, Stanislaus, Tuolumne, Tulare, and Ventura Counties.

Forest Practice Program Manager

CAL FIRE
1234 East Shaw Avenue
Fresno, CA 93710
129
Copyright:© 2013 National Geographic Society, i-cubed
Feather River Forestry LLC
Danielle E. Bradfield, RPF #2808
PO Box 1411
Quincy, CA. 95971
O (530) 927-7095
Lake Tahoe Airport Forest Fire Prevention Exemption
General Vicinity Map
T12N, R18E, S9,16, MDBM
South Lake Tahoe, CA USGS 7.5' Quad Contour Interval = 40' Ownership Boundary
Exemption Area
0 0.25 0.5 1
Miles 1:24,000
1 in = 2,000 ft
130
! !
! !
! !
! !
!!
!
! !
! !
! !
! !
! ! ! ! ! ! !
!
!
! ! !
!!
!
!!!
#
#
#
City of South Lake Tahoe "Lake Tahoe Airport Fuels Reduction Project" Exemption Map
T12N, R18E, S9,16, MDBM South Lake Tahoe USGS 7.5' Quad Contour Interval = 40' 0 340 680 1,360
Feet 1:6,000
N Feather River Forestry LLC
P.O. Box 1411
Quincy, CA. 95971
(530) 927-7095
Exemption Area
Watercourse
name
! ! Class 2 Watercourse
!!! !!! Class 3 Watercourse
Class 4 Watercourse
Class_2_Riparian_Area
Existing Road, Public, Permanent
Overhead_Power_Line
# Landing, Existing
Non_Treatment_Area (Existing Parking Lot)
131

EXHIBIT F

USDA, FOREST SERVICE

LAKE TAHOE BASIN MANAGEMENT UNIT
AGREEMENT #21-PA-11051900-016
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 12,
2023
Agenda Item #:11
Agenda Item: Ratification of California Department of Alcoholic Beverage Control Grant Application and Award
Executive Summary: City Council is asked to ratify the application for, and accept a grant award from California Department of Alcoholic Beverage Control in the amount of $98,136.00 for special enforcement of alcohol-related crimes, community education, and press releases. Grant funds will be used to carry out enforcement and education efforts related to a host of criminal violations in our community including, but not limited to, unlawful possession and distribution of alcoholic beverages, unlawful provision of alcohol to minors, contributing to the delinquency of minors, public intoxication, and disturbances of the peace due to alcohol related parties, special events, and gatherings within City limits.

Requested Action / Suggested Motions: Pass a Resolution ratifying the application, authorizing the Chief of Police to accept and execute agreement, budget, and reimbursement of grant award by California Department of Alcoholic Beverage Control in Amount up to $98,136.00 to facilitate extra enforcement and education efforts for alcohol-related offenses for State fiscal year 2023/2024, effective July 1, 2023
Responsible Staff Member: David Stevenson, Chief of Police Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - ABC Grant.docx
02-Resolution - ABC Grant 23-24.docx
03 GRANT AGREEMENT.pdf
04-Exhibits to ABC Grant Agreement
162
Council Agenda Report September 12, 2023 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: September 12, 2023
Title: Ratification of California Alcoholic Beverage Control (ABC) Alcohol Policing Partnership Grant Application
Location: Citywide
Responsible Staff Member: Chief David Stevenson, (530) 545-2765 Background: California Department of Alcoholic Beverage Control (ABC) provides grant assistance to law enforcement agencies through the Alcohol Policing Partnership Program. This is a competitive grant process through ABC. The South Lake Tahoe Police Department applied for these grant funds in March of 2023. The grant application was due by March 31, 2023. On August 4, 2023 we received confirmation of a grant award and the grant agreement. The grant requires approval via a resolution from City Council to accept, budget, spend and reimburse the funds from the grant.

Issue and Discussion: The ABC Alcohol Policing Partnership Grant is a tool for the City of South Lake Tahoe in enforcement of alcohol related criminal offenses committed by both juveniles and adults.

The South Lake Tahoe Police Department will utilize these grant funds to carry out enforcement efforts related to a host of criminal violations in our community including, but not limited to, unlawful possession and distribution of alcoholic beverages, unlawful provision of alcohol to minors, contributing to the delinquency of minors, public intoxication, and disturbances of the peace due to alcohol related parties, events, and gatherings within City limits. Grant funds may also be used to conduct alcohol related community and local business trainings. In the past we have used these funds for overtime at events like the Lakeview Commons outdoor concert series, New Year’s Eve, and the 4th of July fireworks celebration.

Financial Implications: There will be no impact to the general fund. This is a reimbursement grant from California ABC. Expenditures for the program will be reimbursed quarterly. If approved by City Council, effective July 1, 2023; budget in account 229 02112 should be amended as follows:

Revenue: #33229 $98,136.00
Expenditures: #41040 (Overtime) $93,736.00
#46120 (Equipment) $1,400.00
#44048 (Investigations) $500.00
#44060 (Training) $650.00
#44050 (Travel) $1,850.00
Environmental Considerations: The proposed action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (creation of government funding mechanisms or government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).

Policy Implications: This grant supports strategic priority “5.1 Public Safety”. 163
Resolution 2023-XXX September 12, 2023 Page 1 of 2
Resolution 2023-XXX
Adopted by the City of South Lake Tahoe
City Council
September 12, 2023
Ratifying the application, authorizing acceptance, budget, and reimbursement of grant award by California Department of Alcoholic Beverage Control in Amount up to $98,136.00 to facilitate extra enforcement and education efforts for alcohol related offences for State fiscal year 2023/2024 effective July 1, 2023

BACKGROUND
A. California Department of Alcoholic Beverage Control (ABC) provides grant assistance to law enforcement agencies through the Alcohol Policing Partnership Program.

B. The South Lake Tahoe Police Department applied for these grant funds in March of 2023 and was awarded grant funds in amount up to $98,136.00.

C. The South Lake Tahoe Police Department intends to utilize these grant funds to carry out enforcement and education efforts related to a host of criminal violations in our community including, but not limited to, unlawful possession and distribution of alcoholic beverages, unlawful provision of alcohol to minors, contributing to the delinquency of minors, public intoxication, and disturbances of the peace due to alcohol related parties, events, and gatherings within City limits.

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

1. Ratifies the application for, authorizes acceptance, budget, and reimbursement of a grant award up to $98,136.00 to carry out enforcement efforts related to alcohol and drug related criminal violations within the City of South Lake Tahoe.

2. Authorizes and directs the Chief of Police to execute, on behalf of the City Council, a grant agreement, including any extensions or amendments thereof and any subsequent contract with the State in relation thereto.

3. Acknowledges that any liability arising out of the performance of this agreement, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency.

The State of California and ABC disclaim responsibility for any such liability.

4. Acknowledges that the funds received hereunder shall not be used to supplant expenditures controlled by this body.

5. Acknowledges that this award is not subject to local hiring freezes.

6. Authorizes increasing 2022/2023 City budget for the account 229-02112 as described in the staff report in amount up to $98,136.00
Adopted by the City of South Lake Tahoe City Council on September 12, 2023 by the following vote:

Yes:

No:

Absent:

Abstain:
164
Resolution 2023-XXX September 12, 2023 Page 2 of 2
________________________ Date: _________
Cristi Creegan, 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.
165
166
Agreement Number: 23-APP47
City of South Lake Tahoe through South Lake Tahoe Police Department

Page 1 of 2 ends

EXHIBIT A

SCOPE OF WORK
I. SCOPE OF WORK
• Contractor agrees to implement the Department of Alcoholic Beverage Control (ABC), Alcohol Policing Partnership program. This program is intended to work with law enforcement agencies to develop an effective, comprehensive and strategic approach to eliminate the crime and public nuisance problems associated with problem alcoholic beverage outlets.
• Contractor agrees to implement ABC’s Minor Decoy, Shoulder Tap Programs and conduct Informed Merchants Preventing Alcohol-Related Crime Tendencies (IMPACT) Inspections. These programs target both ABC licensed premises and individuals who furnish alcoholic beverages to the underage operators. The project is targeted to reduce underage drinking and the resultant DUI driving injuries and fatalities, and/or property damages, reduce youth access to alcoholic beverages through the education of licensee(s), enforcement intervention and the impressions of omnipresence of law enforcement. In addition, Contractor agrees to the following goals:

1. The operation period of the grant is July 1, 2023 through June 30, 2024.

2. Contractor agrees to raise public awareness that selling, serving and/or furnishing alcoholic beverages to individuals under twenty-one years old is a criminal violation that will be prosecuted by local city and district attorneys.

3. Minor Decoy operations are designed to educate and deter licensed locations from selling/furnishing alcohol to minors. Contractor agrees to conduct Minor Decoy Operations at both “On-Sale” and “Off-Sale” licensed establishments within the operation period of the grant.

4. Shoulder Tap operations are used to detect and deter adult furnishers outside of a licensed business. Contractor agrees to conduct Shoulder Tap Operations at “Off-Sale” licensed locations to apprehend adults that are unaffiliated with the licensed businesses and who are purchasing alcohol for minors outside of the stores within the operation period of the grant.

5. Informed Merchants Preventing Alcohol-Related Crime Tendencies (IMPACT) primary goal is to educate licensee’s on alcohol related laws to help reduce alcohol-related crime in and around licensed premises. Contractor agrees to conduct visits and inspections of licensed premises identifying areas of non-compliance at “On-Sale” and “Off-Sale” licensed locations within the operation period of the grant.

II. GOALS AND OBJECTIVES

1. Conduct at least four (4) Minor Decoy operations.

2. Conduct at least four (4) Shoulder Tap operations, including participating in the Statewide operation conducted by ABC.

3. Conduct at least four (4) IMPACT operations.
167
Agreement Number: 23-APP47
City of South Lake Tahoe through South Lake Tahoe Police Department

Page 2 of 2 ends

South Lake Tahoe City CouncilSeptember 12, 2023

South Lake Tahoe City Council
September 12, 2023