Agenda packet — South Lake Tahoe City Council, June 4, 2024 (part 3 of 3)

The South Lake Tahoe City Code is current through Ordinance 1180, passed November 21, 2023.

4.150.290 Increase in rates for failure to provide access.

In the event that a person fails to comply with SLTCC 4.150.280, the removal franchisee may increase the rate for the collection and removal of refuse for that person by the total sum of 10 percent over the then-established rate for the month in which such noncompliance occurs. Upon cessation of the violation of SLTCC 4.150.280, the rate shall be reduced to the previously established rate.

4.150.300 Liability for payment of fees.

Each owner, occupant or person in possession, charge or control of a parcel of property upon which there exists a residential unit or commercial enterprise within the city is hereby made liable for the payment of the refuse collection fees levied against such premises for required refuse collection services, irrespective of the actual use of the refuse collection services provided by the city or its authorized removal franchisee. Services made available to those premises required to receive such services shall be considered as services utilized. It shall be the duty of the owner of such premises to provide for payment of the refuse collection and disposal fees. It shall be the duty of the franchisee to bill separately each residential unit.

Nothing in this section shall prevent an arrangement for the continuance of an existing arrangement under which payments of refuse collection fees are made by a tenant or tenants or any agent on behalf of the owner. Any such arrangement will not affect the owner’s obligation to the city or its authorized removal franchisee.

4.150.310 Billing and collection – Discounts – Penalty for delinquent payments.

Refuse cCollection fees shall be billed and paid in advance on a monthly, bi-monthly, or quarterly basis.

Payment shall be due upon, and shall become delinquent after, the fifteenth day following the date of billing. Notwithstanding the above, each person who receives a bill for quarterly service shall have the option of paying for service through the end of the year billed.

A finance charge of one and one-half percent of the amount of the fee shall be added at the end of each month following the delinquency date.

4.150.320 Fee a civil debt.

The refuse collection fee shall be a civil debt owed by the owner, occupant or person in possession, charge or control of the real property and/or structures of a residential unit or commercial enterprise. In the event that any civil action to enforce the collection of the refuse collection fee is brought in any court, the prevailing party shall be entitled to reasonable attorney’s fees to be determined by the court. The prevailing party shall be the party in whose favor final judgment is entered.

4.150.330 Mandatory collection areas.

A mandatory collection area is established and shall consist of the current incorporated city limits of the city of South Lake Tahoe within the Lake Tahoe basin, county of El Dorado, state of California.

4.150.340 Liability for payment of fees – Mandatory collection.

Each owner, occupant or person in possession, charge or control of any collection premises located in a mandatory collection area is hereby made liable jointly and severally for the payments of the solid waste collection, processing and disposal fees levied against such premises for required solid waste collection, processing and disposal services, irrespective of the actual use of the service provided by the district or grantee. Services made available to those premises required to receive service shall be considered as services utilized. It shall be the duty of the owner of such premises to provide for the payment of the services.
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4.150.350 Billing cycle and penalty for delinquent payments.

Solid waste collection fees may be billed and paid in advance on a monthly, bi-monthly, or quarterly basis. Payment shall be due upon, and shall become delinquent 15 days after, the date of any billing. A finance charge and late payment penalty as permitted by law shall be added at the end of each month following the delinquency date.

4.150.360 Discontinuation of service.

The city may direct the franchisee to discontinue service for any customer whose account remains unpaid for 60 days after the date of billing as long as the customer has received a notice on a form approved by the city manager or his/her designee stating that service will be discontinued 15 days from the date of the notice if payment is not made by that time. Upon payment of the delinquent fees, collection shall resume on the next regularly scheduled collection day. Fees shall continue to be assessed and billed notwithstanding that service has been discontinued and notice of same shall be included in the form sent to the customer.

4.150.370 Lien for 180-day delinquencies.

Mandatory collection fees authorized pursuant to these articles, which remain unpaid for a period of 180 days or more, after the date upon which they were billed, may be collected thereafter by the franchisee as provided herein.

A. Once a year the franchisee shall cause to be prepared a report of delinquent fees. The city planning commission shall fix a time, date and place for a public hearing for the report and any objections or protests thereto.

B. The commission shall cause notice of the hearing to be mailed, by certified mail, return receipt requested to the landowners listed on the report as well as publication of notice of the hearing in a newspaper of general circulation as well as posted pursuant to law not less than 30 days prior to the date of the hearing.

C. At the hearing, the commission shall hear any objections or protests of landowners liable for delinquent fees. The commission may make such revisions or corrections to the report as is deemed just and thereafter the report shall be forwarded to the city council for confirmation. Notice of the hearing to confirm the report shall be mailed to the landowners listed on the report.

D. The delinquent fees set forth in the report as confirmed shall constitute a special assessment against the respective parcels of land and are a lien of the property for such delinquent fees. A certified copy of the confirmed report shall be filed with the county auditor and/or county recorder’s office on or before August 10th, for the amounts of the respective assessments against the respective parcels of land as they appear on the current assessment roll. The lien created attaches upon recordation of the office of the county recorder of the county in which the property is situated with a certified copy of the resolution of confirmation. The assessment may be collected at the same time and in the same manner as ordinary county ad valorem property taxes. All laws applicable to the levy, collection and enforcement of ad valorem property taxes shall be applicable to such lien, except that if the real property to which such lien would attach has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide purchaser for value has been created and attaches thereon, prior to the date on which the first installment of such taxes should become delinquent, then the lien which would otherwise be imposed by this section shall not attach to such real property and the delinquency fees, as confirmed relating to such property, shall be transferred to the unsecured roll for collection or a private collection agency.

4.150.390 Exemptions.

A. The provisions of this article shall not apply to any of residential units or commercial enterprises which are not connected to water and electric power and where water or electric power cannot be 1165
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B. Provisions of this article shall not apply to any commercial enterprise which fully suspends its operation due to the seasonal nature of its particular business.

C. Provisions of this article shall not apply to any home business which operates fully out of a residential property, complies with business license requirements and does not exceed residential discarded materialrefuse limitations.

D. Exemption from the mandatory collection may be granted to nonresidential and non-food-producing businesses which submit a waste management plan to the city analyzing the business waste stream, and documenting: (1) the ability to recycle or reuse more than 50 percent of that waste stream; (2) the ability to source separate organic waste from other waste and either recycle its organic waste on site or self-haul its own organic waste for recycling. Any business that received an exemption from mandatory collection under this subsection (D) prior to January 1, 2022, and desires to maintain its exemption from mandatory collection shall submit a new request to the city containing the information required by this subsection prior to January 31, 2022.

Any person claiming an exemption pursuant to subsection (A) or (B) of this section shall file a statement under oath or under penalty of perjury with the city removal franchisee stating the facts upon which exemption is claimed and, in the absence of such statement substantiating the claim, such person shall be liable for the payment of the refuse collection fees required by this article.

The removal franchisee, after giving notice of not less than 10 days and a reasonable opportunity for hearing to any person claiming an exemption pursuant to this section, may revoke any exemption granted upon information that the person is not entitled to the exemption as provided herein.

Article IV. Prohibited Acts and Enforcement

4.150.400 Collection or disposal by unauthorized persons.

No person, other than those persons permitted by the terms of this chapter, shall collect, and/or dispose of, or process refusediscarded materials, for commercial gain, in, along or over any public street, alley or highway in the city. No two or more owners of separate properties shall organize to jointly or collectively remove refusediscarded materials from their respective properties.

4.150.410 Placement of refusediscarded materials in receptacle or upon land of another.

No person shall place refusediscarded materials upon the land of another, or in the refuse receptaclecontainer of another, or upon premises other than those from which refusethe discarded materials originated, for the purpose of making such refusediscarded materials available for collection and disposal. This section shall not prohibit the deposit of refusediscarded materials at a duly permitted transfer station.

4.150.420 Placement of refuse containers on vacant lots.

No person shall place refuse or a refuse receptaclea container, including dumpsters, upon a vacant lot or any site from which the refusediscarded material was not originally generated. This includes property owned, leased, or rented by the person generating the refusediscarded material.

4.150.430 Placement for collection of items other than refusediscarded materials.

No person shall place for collection and disposal, or place in public view, any item other than refusediscarded materials, or bulky items or other waste, including cardboard or any other paper product and carpeting, carpet pads and associated flooring materials. 1166
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Neither the city, nor its authorized franchisee, shall collect or dispose of any item other than refuse or other wastediscarded materials or bulky items; provided, that this section shall not prohibit the deposit and disposal of any item at a duly permitted transfer station.

4.150.440 Littering public or private property.

No person shall throw, place, scatter, dump or otherwise deposit any refuse or other waste in or upon the private property of another. No person shall throw, place, scatter, dump or otherwise deposit any refuse or other waste in or upon any public property.

4.150.450 Burning refuse.

No person shall burn refuse within the city unless such act complies with all applicable laws of each and every jurisdictional agency.

4.150.460 Rendering of fat, distillation of bones, etc.

No person shall render any meat, grease, fat, offal, bones, animals, animal parts, animal substances, garbage, fish or parts of fish, or distill bones or reduce refuse, offal or dead animals or operate or conduct any plant or establishment for the distillation of bones, or the rendering of fat, or further reduction of refuse, offal or dead animals.

4.150.470 Bringing refusediscarded materials into the city.

No person shall bring into or cause to be brought into the city any refusediscarded materials or receive or possess any refusediscarded materials brought into the city from beyond the city limits; provided, that the provisions of this section shall not apply to refusediscarded materials being transported directly to, and received at, a duly permitted transfer station.

4.150.480 Storing of refuse or wastediscarded materials inside buildings.

No person shall keep or maintain any refuse or other wastediscarded materials inside any building in violation of any provision of law.

4.150.490 Connection of water or electrical services prior to issuance of permit.

No person shall connect or cause to be connected to any residential unit not then receiving such services any water or electrical service without first obtaining from the city manager or his/her designee a permit therefor. Such permit shall be issued by the city manager or his/her designee upon request of any person without fee. Refuse cCollection fees shall be charged for service to such residential unit upon the issuance of such a permit or occupancy of such unit, whichever first occurs. The sole purpose of the permit required by this section is to advise the city manager or his/her designee that the residential unit should be charged refuse collection fees, and such permit shall not authorize the connection of any water or electrical services to any premises in violation of any other provision of law.

4.150.500 Disclosure required upon sale of real property.

No person shall sell, or act as an agent for the purpose of selling, any parcel of real property without first disclosing, in writing, the amount or amounts, if any, of unpaid collection fees due and owing for refuse collection services made available to such parcel of real property.

4.150.505 Compliance inspections.

The city or its agent may enter a commercial premises or common areas of a multiresidential property of five or more units to conduct a compliance inspection of any collection container or collection vehicle load, and may enter a transfer, processing, or disposal facility to conduct a compliance inspection.

Compliance inspections may be performed without prior notice during normal business hours. 1167
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4.150.510 Violations of chapter declared a nuisance.

All violations of any portion of this chapter are hereby declared to be a nuisance and may be abated as such in the manner provided by law. Additionally and alternatively, violations of any portion of this chapter are subject to administrative citations and fines under Chapter 2.30 SLTCC.

Article V. Recycling Regulations
Division 1. Generally

4.150.520 Purpose and intent of article.

The purpose and intent of this article is to establish by ordinance:

A. The goal of recycling at least 50 percent, by weight, of the city of South Lake Tahoe’s waste; B. To require that the city of South Lake Tahoe develop and maintain a substantial, comprehensive, coordinated, and integrated recycling system for the efficient, cost-effective and environmentally sound disposal of waste;
C. To require the development and implementation of a solid waste management plan for the city of South Lake Tahoe;
D. To help preserve the quality of the environment for city of South Lake Tahoe residents by preserving resources, conserving energy, and reducing waste;
E. To improve the city of South Lake Tahoe’s economy by creating useful and rewarding jobs for its residents; and
F. To protect and promote the health, safety, and well-being of the city of South Lake Tahoe residents.

4.150.530 Collection of general refusediscarded materials by other than exclusive franchisee prohibited.

No refuse hauler or disposal company other than the exclusive franchisee of the city or its appropriately authorized designee shall in any way collect refuse discarded materials or remove refuse placed in refuse disposal containers from any location within the city limits. No individual, company or entity other than city’s exclusive franchisee may remove recyclable materials from refuse disposal containers once said material has been placed in those containers.

4.150.540 Removal of recyclable materials from existing state-authorized buyback centers prohibited.

No individual, company or entity other than city’s exclusive franchisee, or its authorized designee, shall be authorized to remove recyclable materials from any state-authorized buyback center. Said locations, for purposes of clarity of this regulation, are identified as follows:

Ruth Avenue Recycling Center.

Nothing in this section shall be construed to limit any individual, company or entity other than city’s exclusive franchisee from developing additional recycling sites; provided applicable zoning, building, fire and other requirements of local and state regulatory agencies are met.

4.150.550 Reporting requirements.

Any individual, company or entity engaging in the recycling materials must, prior to the commencement of such activities, obtain a permit from the city manager or his/her designee and any other city-required permits and/or licenses. The permit will be issued when permitee provides the names, addresses and 1168
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A. The physical location of the recyclable materials operation; B. The certified weight of the volumes of each product taken to market; C. The market to which each of the materials was sent, along with the method of shipment; D. An accounting (by weight) by geographical area (jurisdiction) from which the recyclables were collected.

On an annual basis, a compilation of the information provided to the city through the required monthly reporting process as specified herein, shall be provided to the city on a schedule to be determined by the city manager or his/her designee. All required information will be considered proprietary and not available for public information. Failure to provide required information will result in the revocation of this permit. Permit fee will cover reasonable costs of administration.

4.150.560 Compliance with local, state and federal regulations.

All individuals, companies or entities engaged in the collection of recyclable materials shall adhere to all applicable local, state and federal regulations in carrying out their operations. Such compliance shall include but not necessarily be limited to conducting operations from a location which has been approved by all applicable governmental entities for such use and utilizing appropriate recyclable material handling and hauling practices. To the extent that any recycling operation, by virtue of its size or nature, may become subject to laws relating to the provision of workers’ compensation benefits, or other similar regulatory authority, the recycling operator shall comply with all such laws in existence.

4.150.570 Disposal of unmarketable recyclable materials.

Any recyclable materials collected by any individual, company or entity which cannot be stored or sustained in accordance with all applicable health, safety, fire, building, and visual codes and/or standards shall be turned over to the transfer station of the city’s exclusive refuse franchisee and all applicable disposal fees shall be paid.

Anyone engaging in the disposal of such materials in any manner other than that described within this section shall be guilty of an infraction.

4.150.580 Recyclable materials of city – No fee for processing.

Any and all recycling collection services are subject to payment of a five percent franchise fee to the city if any fee is charged to the customers for service collection. Fee shall be based on gross revenue as reported on the annual city business licenses. In the event no fee is charged by the collection service, the city council may either waive the franchise fee or require that the collection service provide similar services to city facilities without charge.

4.150.590 Indemnification of city by those engaged in recycling activities.

Any person, company or entity engaged in recycling activities which requires removal and transport of recyclable materials over city rights-of-way shall obtain an encroachment permit from the public works department in accordance with Chapter 7.05 SLTCC, and any such encroachment permit issued shall be subject to the customary hold harmless and indemnity provisions established by city ordinance as contained in Chapter 7.05 SLTCC.
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4.150.600 No vesting of rights, entitlements or rights to operate recycling facilities shall be recognized prior to effective date of ordinance.

No person, company or entity shall be deemed by the city council to have developed any legal, nonconforming use, vested right or entitlement to engage in recycling operations by virtue of commencement of recycling prior to the effective date of the ordinance codified in this chapter. No recycling operator, irrespective of the date of commencement of their recycling activities, shall be exempt from the requirements and regulations established by this article. Any person or business currently operating a recycling collection service shall obtain required permits within 60 days of the adoption of the ordinance codified in this chapter.

4.150.610 Development of materials recovery facility prohibited.

No person, company or entity shall develop or create any type of materials recovery facility (MRF) without review and approval by the city council to ensure consistency with the county integrated waste management plan during the term the ordinance codified in this chapter remains in effect.

Division 2. Recycling Organic Waste

4.150.620 Requirements for residential organic waste recycling.

A. Owners and occupants of single-family units and multiresidential properties of four or less units shall:

1. Subscribe to the city’s organic waste collection service for organic waste generated, except for food waste and food-soiled paper; and

2. Participate in the city’s organic waste collection service by placing organic waste generated, except for food waste and food-soiled paper, in a separate container in accordance with SLTCC

4.150.110.

B. Owners of multiresidential properties of five or more units who have not received a de minimis waiver or physical space waiver shall:

1. Subscribe to the city’s organic waste collection service;

2. Participate in the city’s organic waste collection service by placing organic waste generated, except for food waste and food-soiled paper, in a separate container in accordance with SLTCC

4.150.120;

3. Annually provide information to tenants about organic waste recovery requirements and about proper sorting of organic waste;

4. Provide educational information within 14 days of occupation of the premises to new tenants that describes requirements to keep organic waste separated and the location of containers and the rules governing their use at the property; and

5. Provide access for the city or its agent to the property during all inspections conducted under SLTCC 4.150.505 to confirm compliance with the requirements of this division.

C. De Minimis Waiver.

1. Owners of multiresidential properties of five or more units may request a de minimis waiver from some or all of the requirements of this section by submitting the following information:
a. The requirements requested to be waived;
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2. A de minimis waiver granted by the city will be effective for five years unless circumstances change such that the thresholds are exceeded, in which case the city will rescind the waiver. An applicant may reapply prior to the expiration of its waiver by providing the required information in this subsection (C).

D. Physical Space Waiver.

1. Owners of multiresidential properties of five or more units may request a physical space waiver from some or all of the requirements of this section by submitting documentation from the franchisee, a licensed architect, or a licensed engineer demonstrating that the premises lacks adequate space for the organic waste container that would otherwise be required.

2. The city manager may grant a physical space waiver based on the information submitted in addition to any evidence from city staff justifying the waiver. A physical space waiver granted by the city will be effective for five years unless the portion of the premises where containers are stored is reconfigured, in which case the city will rescind the waiver. An applicant may reapply prior to the expiration of its waiver by providing the required information in subsection (D)(1).

4.150.630 Requirements for commercial organic waste recycling.

A. Owners and operators of commercial businesses generating more than two cubic yards of solid waste per week and have not received a physical space waiver shall arrange for organic waste recycling services, including food waste, consisting of at least one of the following:

1. Source separating organic waste from other waste and subscribing to a basic level of organic waste recycling services that includes collection and recycling of organic waste, including food waste;

2. Recycling organic waste on site or self-hauling organic waste, including food waste, for recycling; or

3. Subscribing to an organic waste recycling service that may include mixed waste processing that specifically recycles organic waste, including food waste; and

4. For owners and operators of commercial businesses complying with this subsection (A) through means other than subscribing to an organic waste recycling service provided by the city’s franchisee, an annual report shall be provided to the city by October 1st of each year to certify compliance through on-site recycling or self-hauling. Annual reports shall include the following information for the preceding 12-month period of June 30th to July 1st:
a. The name of the owner and operator for the commercial business; b. The name and address for the commercial business; and c. The volume in cubic yards or gallons, measured by the size of the containers in use, of organic waste recycled on site, through self-hauling including the destination(s), or by other means. 1171
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B. In addition to the applicable requirements of subsection (A) of this section, owners and operators of commercial businesses not granted an exemption from mandatory collection under SLTCC 4.150.390 and who have not received a de minimis waiver or physical space waiver shall:

1. Subscribe to the city’s organic waste collection service;

2. Participate in the city’s organic waste collection service by placing organic waste generated, except for food waste and food-soiled paper, in a separate container for collection;

3. Provide labeled containers for the collection of organic waste, except for food waste and food-soiled paper, if any is generated by the business or its customers, in all indoor and outdoor areas where disposal containers are provided for customers, except in restrooms;

4. Prohibit employees from placing materials in a container not designated for those materials, to the extent practical through measures such as education, training, and inspection;

5. Periodically inspect the organic waste container for contamination and take corrective measures when contamination is found including reminding employees not to place materials in a container not designated for those materials;

6. Annually provide information to employees, contractors, tenants, and customers about organic waste recovery requirements and about proper sorting of organic waste;

7. Provide education information before or within 14 days of occupation of the premises to new tenants that describes requirements to keep organic waste materials, except for food waste, separated and the location of containers and the rules governing their use; and

8. Provide access to the city or its agent to its properties during all inspections conducted under SLTCC 4.150.505 to confirm compliance with the requirements of this division.

C. In addition to the applicable requirements of subsections (A) and (B) of this section, owners and operators of tier one commercial edible food generators shall:

1. Arrange to recover the maximum amount of edible food that would otherwise be disposed;

2. Contract with food recovery organizations or food recovery services for collection or acceptance of self-hauled edible food for food recovery;

3. Allow the city or agent to access the premises and review records pursuant to Section 18991.4 of Title 14 of the California Code of Regulations, as may be amended from time to time; and

4. Keep records that include the following information as required by Section 18991.4 of Title 14 of the California Code of Regulations, as may be amended from time to time:
a. A list of each food recovery service or organization that collects or receives the generator’s edible food pursuant to contract;
b. A copy of all such contracts;
c. A record of the following information for each contracted food recovery service or food recovery organization:
i. Name, address, and contact information;
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D. Commencing on January 1, 2024, owners and operators of tier two commercial edible food generators shall:

1. Comply with the requirements for tier one commercial edible food generators in this section; and

2. For large venue or large event operators not providing food services, but allowing for food to be provided by others, require food facilities operating at the large venue or large event to comply with the requirements for tier one commercial edible food generators in this section.

E. De Minimis Waiver.

1. Owners and operators of commercial businesses may request a de minimis waiver from some or all of the requirements of this sectionsubsections (A) and (B) of this section by submitting the following information:
a. The requirements requested to be waived;
b. Documentation that either: (a) the commercial business’s total solid waste collection service is two cubic yards or more per week and source separated organic waste subject to collection comprises less than 20 gallons per week; or (b) the commercial business’s total solid waste collection service is less than two cubic yards per week and source separated organic waste subject to collection comprises less than 10 gallons per week.

F. Physical Space Waiver.

1. Owners and operators of commercial businesses may request a physical space waiver from some or all of the requirements of subsections (A) and (B) of this section by submitting documentation from the franchisee, a licensed architect, or a licensed engineer demonstrating that the premises lacks adequate space for the organic waste container that would otherwise be required.

4.150.640 Requirements for food recovery organizations and services.

A. Owners and operators of food recovery services maintaining their principal place of business within the city and having a contract with commercial edible food generators to collect or receive edible food directly shall:

1. Report to the city the total pounds of edible food recovered for the previous calendar year from tier one and tier two commercial edible food generators with which the food recovery service has 1173
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2. Maintain the following records:
a. Name, address, and contact information for each commercial food generator from which edible food is collected;
b. Quantity, measured in pounds per month, of edible food collected from each commercial edible food generator;
c. Quantity, measured in pounds per month, of edible food transported to each food recovery organization; and
d. Name, address, and contact information for each food recovery organization to which the food recovery service transports edible food.

B. Owners and operators of food recovery organizations maintaining their principal place of business within the city and having a contract to collect or receive edible food directly shall:

2. Maintain the following records:
a. Name, address, and contact information for each commercial food generator from which edible food is received;
b. Quantity, measured in pounds per month, of edible food received from each commercial edible food generator; and
c. Name, address, and contact information for each food recovery service from which edible food is received.
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: June 4, 2024
Agenda Item #:18
Agenda Item: Award of 2024 Road Rehabilitation Project to All-American Construction, Inc.

Executive Summary: The City Council has committed to funding the Cityâ€™s annual paving program each fiscal year with $2,500,000 of Measure S funds for rehabilitating and reconstructing the Cityâ€™s roadways. The Public Works Department assembles an annual paving project to maintain the Cityâ€™s roadway network. On April 01, 2024, the Public Works Department advertised the 2024 Road Rehabilitation Project bid on the City PlanetBids website. The Project Notice to Bidders was also advertised in the Tahoe Daily Tribune per Public Contract Code requirements and the Cityâ€™s Main Website. Public Works received four sealed bids, which were publicly opened and read aloud at the scheduled bid opening located at the City Public Works Building. The lowest responsible and responsive bidder was determined to be All-American Construction, Inc. with a base bid amount of $3,232,981.60. In addition to the award of the Base Bid, the Public Works Department recommends awarding Bid Alt 3, which consists of paving Tenth St. from Taylor Way to Roger Ave. This portion of the contract will be funded with the Road Maintenance and Rehabilitation Account (RMRA SB-1). The Public Works Department recommends the award of Base Bid and Alternative 3 to All-American Construction, Inc. for a total of $3,609,812.40, plus a 10% contingency for $360,981.24.

Requested Action / Suggested Motions: 1) Pass a Resolution authorizing the transfer of $519,161 in SB-1 from Account 301-50024-36304 to 310-50005-36304 and allocating $580,000 in reserve Measure S funds to Account 301-5005-36374; and 2) Pass a Motion authorizing and directing the Mayor to execute a contract with All-American Construction, Inc. for a total of $3,609,812.40, plus a 10% contingency, in the amount of $360,981.24 for City Road Rehabilitation.

Responsible Staff Member: Stephen Anderjack, Associate Civil Engineer 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 - 2024 Road Rehabilitation Award.docx
02-Resolution - 2024 Road Rehabilitation Award.docx
03-Contract - All American Construction.docx
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Council Agenda Report June 04, 2024 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: June 04, 2024
Title: Construction Contract Award and Funding Transfer for the 2024 Road Rehabilitation Project
Location: Keller Rd. (Bridle Rd. to Saddle Rd.), Saddle Rd. - East (Keller Rd. to Saddle Rd.), Saddle Rd. - Central (Keller Rd. to Ski Run Blvd.), Saddle Rd. - West (Ski Run Blvd. to End), Sherman Rd. (Keller Rd. to End), Ledge Ct. (Saddle Rd. to End), Sterling Ct. (Saddle Rd. to End), Tenth St. (Taylor Way to Roger Ave.)
Responsible Staff Members: Stephen Anderjack, Associate Civil Engineer

Background: The City Council has committed to funding the City’s annual paving program each fiscal year with $2,500,000 of Measure S funds for rehabilitating and reconstructing the City’s roadways. The Public Works Department assembles an annual paving project to maintain the City’s roadway network. In coordination with other utility infrastructure improvements, the 2024 Road Rehabilitation Project has proceeded in implementing the City’s 5 Year Paving Plan.

Issue and Discussion: This year’s project proposes to repave the following roadways:

Roadway Extents Base Bid/Bid Alt
Keller Rd. Bridle Rd. to Saddle Rd. Base Bid
Ledge Ct. Saddle Rd. to End. Base Bid
Regina Rd. Keller Rd. to Wildwood Ave. Base Bid
Saddle Rd. (East) Keller Rd. to Saddle Rd. Base Bid
Saddle Rd. (Central) Keller Rd. to Ski Run Blvd. Base Bid Saddle Rd. (West) Ski Run Blvd. to Keller Rd. Base Bid
Sherman Rd. Keller Rd. to End. Base Bid
Sterling Ct. Saddle Rd. to End. Base Bid
Tenth St. Taylor Way to Roger Ave Bid Alt 3
This project and has been designed by City Engineering staff and will include a 4” mill and fill treatment for each of the roadways. This will provide a new wearing course as well as restore most of the structural integrity of each of the roadways. The city will also utilize a polymer modified binder oil in our asphalt, which provides additional flexibility and resiliency in harsh mountain climates.

On April 01, 2024, the Public Works Department advertised the 2024 Road Rehabilitation Project bid on the City PlanetBids website. The Project Notice to Bidders was also advertised in the Tahoe Daily Tribune per Public Contract Code requirements and the City’s Main Website. 430 bidders were notified on PlanetBids; 12 prospective bidders downloaded the documents. The Project bidding period closed on May 06, 2024 at 1:00 pm. 1176
Council Agenda Report June 04, 2024 Page 2 of 3
Public Works received four sealed bids, which were publicly opened and read aloud at the scheduled bid opening located at the City Public Works Building. The lowest responsible and responsive bidder was determined to be All-American Construction, Inc., with a base bid amount of $3,232,981.60. The Engineer’s Estimate for the bid was $2,785,000 to $3,185,000.

The bid results are as follows (Base Bid Amounts):

Name of Contractor Bid Price
All-American Construction, Inc. $3,232,981.60
Granite Construction $3,322,140.00
Martin Brothers $3,515,890.00
FW Carson Company $3,783,128.56
In addition to the award of the Base Bid, the Public Works Department is proposing to award Bid Alt 3, which consists of paving Tenth St. from Taylor Way to Roger Ave. This portion of the contract will be funded by the Road Maintenance and Rehabilitation Account (RMRA SB-1). All-American Construction’s price for Bid Alt 3 is $376,830.80. This would bring their total contract value to $3,609,812.40.

The RMRA (SB-1) funding for the 23/24 FY was originally transferred to the Pioneer Trail Ped Improvement Phase II project, however this project was unable to be fully constructed in 2024 due to acquisition challenges. The Public Works Department’s goal is to bid and start construction of the Pioneer Trail Ped Improvement Ph II project during the 2024 construction season, however this will be dependent on the speed of the acquisition process. Due to this delay, the Public Works Department is requesting to transfer this funding into the 2024 Road Rehabilitation Project, to enable the City to use the 23/24 FY RMRA fund this year. The Public Works Department is planning on supplementing Pioneer Trail Ped Improvement Ph II with the 24/25 FY RMRA Funding.

In addition to the 2024 Road Rehabilitation Project, the Public Works Department is continuing to fund the Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase I, and the Pioneer Trail Pedestrian Improvement Project, Phase II. These funds have been approved as a part of a separate request.

Financial Implications: The lowest responsive, responsible bid received for this project is AllAmerican Construction, Inc., with a Base Bid of $3,232,981.60. With Bid Alt 3 included the total contract value will be $3,609,812.40.

The total expected expense for this project is listed in the table below:

Expense Description Amount
All-American Construction, Inc. $3,609,812.40
10% Construction Contingency $360,981.24
Materials Testing $58,000.00
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Labor Compliance Oversite $8,000.00
TOTAL ANTICIPATED EXPENSES $4,036,793.64
The currently available budget in the Street Overlay Program Account (30150005) is $2,939,254.82 in Measure S funds. Based on the total project anticipated costs, an additional $580,000 in Measure S funds, including the contingency, is required. In addition, $519,161 should be transferred from the SB1 account that was previously allocated to Pioneer Trail Ped Improvement Ph II to fund the project.

Historically, only a small amount of contingency funds has been used due to the project's limited risks.

Staff is requesting the City Council transfer of $519,161 from the SB-1 account and allocation of $580,000 from Measure S proceeds as shown in the table below:

Transfer From
Account #
Transfer To
Account #
Amount Funding Source Object Code
to Load
301-50024-36304 301-50005-36304 $519,161.00 RMRA (SB-1) Funding 48030 102-01511-50014 301-50005-36374 $580,000.00 Measure S 48030 Environmental Considerations: This project is considered roadway rehabilitation and will not extend the boundaries of the existing roadways. As such, the project is exempt from Tahoe Regional Planning Agency (TRPA) permits and the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301(c) (Existing Facilities). All applicable best management practices will be utilized to protect air and water quality during construction.

Policy Implications: The City Council has included Street Rehabilitation as one of their Strategic Priorities and Goals in their 2021-2026 Strategic Plan. This project will help accomplish the City Council’s objective as well as provide adequate roadways for all to use. 1178
Resolution 2024-XXX June 04, 2024 Page 1 of 3
Resolution 2024-XX
Adopted by the City of South Lake Tahoe
City Council
June 04, 2024
Award of 2024 Roadway Rehabilitation Construction Contract, and Transfer/Allocation of Funds for Project Implementation

BACKGROUND
A. City Council has committed to funding the City’s annual paving program each fiscal year with Measure S funds for rehabilitating and reconstructing the City’s roadways. The Public Works Department assembles an annual paving project to maintain the City’s roadway network.

B. The city advertised the 2024 Road Rehabilitation project on April 1, 2024; bids were received on May 6, 2024. All-American Construction, Inc. was deemed as the apparent low bidder with a Base Bid of $3,232,981.60 and Bid Alt 3 (10th Street) for $376,830.80, for a total contract cost of $3,609,812.40.

C. The City has received RMRA SB-1 funding for 10th Street rehabilitation.

D. The total expected expenses for this project are shown in the table below:

Expense Description Amount
All-American Construction, Inc. $3,609,812.40
10% Construction Contingency $360,981.24
Materials Testing $58,000.00
Labor Compliance Oversite $8,000.00
TOTAL ANTICIPATED EXPENSES $4,036,793.64
E. The City has on-call contracts with Black Eagle Consulting, Inc. for Material Testing and Willdan Engineering for Labor compliance services.

F. The currently available budget in the Street Overlay Program Account (30150005) is $2,939,254.82 in Measure S funds. Based on the total project anticipated costs, an additional $580,000 in Measure S funds, including the contingency, is required. In addition, $519,161 should be transferred from the SB-1 account that was previously allocated to Pioneer Trail to fund the project.

BASED ON THE FACTS SET FORTH HEREIN, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
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Resolution 2024-XXX June 04, 2024 Page 2 of 3

1. Authorize the transfer of $519,161 in SB-1 from Account 301-50024-36304 to 310-50005- 36304 and allocate $580,000 in reserve Measure S funds to Account 301-5005-36374 as shown in the table below:

2. Authorizes the Mayor to sign the contract with All-American Construction, Inc. for a total of $3,609,812.40, plus a 10% contingency for $360,981.24.

Adopted by the City of South Lake Tahoe City Council on June 04, 2024, by the following vote:

Yes:

No:

Abstain:

Absent:

The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
__________________ Date:_____________
Cody Bass, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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CITY OF SOUTH LAKE TAHOE

DEPARTMENT OF PUBLIC WORKS

AGREEMENT
DOCUMENT 00500 - AGREEMENT

CITY OF SOUTH LAKE TAHOE

DEPARTMENT OF PUBLIC WORKS

AGREEMENT
for
2024 ROAD REHABILITATION PROJECT
PWC 24-30150005-01
CITY BID NO. 24-30150005-01-BN1
THIS AGREEMENT is made and entered into this ______ day of ___________, 20___, by and between the City of South Lake Tahoe, a political subdivision of the State of California, herein designated “City”, and All-American Construction, Inc., herein designated as “Contractor.” WITNESSETH, that the City and the Contractor, in consideration of the mutual covenants hereafter set forth, agree as follows:

ARTICLE 1 — THE WORK
Contractor agrees to furnish all labor, tools, equipment, facilities, materials, transportation and services necessary to perform and complete, in a good and workmanlike manner, the 2024 ROAD REHABILITATION PROJECT, as required pursuant to the Contract Documents.

ARTICLE 2 — COMMENCEMENT AND COMPLETION
The Work to be performed under this Agreement shall commence at the time as specified in the Notice to Proceed, and the Contractor shall diligently undertake the performance of the obligations as set forth in the Contract Documents to achieve Final Completion of the Work (as defined at Section 9.9 Special Provisions) within 89 calendar days after the date commencement of the Work is authorized as set forth in the Notice to Proceed (the “Contract Time”). No grading or excavation or other land disturbance will be allowed between October 15th and May 1st; all Work shall be performed after the issuance of the Notice to Proceed, and Final Completion achieved within the contract time as set forth in these Bid Documents. 1182
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The City and the Contractor recognize that time is of the essence of this Agreement and that the City will suffer financial loss if the Work is not completed within the time specified herein, plus any extensions thereof allowed in accordance with the Contract Documents. The City and Contractor also recognize the delays, expense, and difficulties involved in proving the actual loss suffered by the City if the Work is not completed within the Contract Time. Accordingly, instead of requiring any such proof, and pursuant to the Contract Documents, the City and the Contractor agree that as liquidated damages (but not as a penalty), the Contractor shall pay the City the sum of $1,000 for each calendar day beyond August 30, 2024 and continuing until Bidder achieves Milestone #1, Substantial Completion (per Document 00100, Article 1.04.A.1). The Contractor shall pay the City the sum of $500 for each calendar day beyond that portion of the Contract Time within which the Bidder is required to achieve Milestone #2, Final Completion (per Document 00100, Article 1.04.A.3).

In accordance with the Contract Documents, including, without limitation Document 00400.4.2 (“Bid Proposal”), the daily amount that Contractor may charge to the City for all delay costs, direct and indirect (and inclusive of all expenses and damages, including, without limitation, jobsite and home office overhead costs and extended general conditions) applicable to the first sixty (60) calendar days of Compensable Delay, if any, is zero dollars, the amount set forth by Contractor in Document 00400.4.2 (“Bid Proposal”). This sum shall represent the exclusive and sole amount (i.e., payment in full for any and all direct and indirect delay costs) that Contractor, on behalf of itself and subcontractors and suppliers, of every tier, shall receive for any and all Compensable Delay(s) during the first sixty (60) calendar days of actual, Compensable Delay at the Project. Delay costs that may arise from Compensable Delay, if any, beyond the first sixty (60) calendar days of a Compensable Delay, if allowable, shall thereafter be governed by, and subject to, the applicable provisions of Sections 8 and 9 of the Standard Specifications, as modified by the Special Provisions, and the Contract Documents.

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

BASE BID - Keller Rd., (Bridle Rd. to Sherman Way), Sherman Way, (Keller Rd. to End), Keller Rd., (Sherman Way to Saddle Rd.), Ledge Ct., (Saddle Rd. to End), Saddle Rd., (Keller Rd. to Saddle Rd.), Saddle Rd., (Keller Rd. to Ski Run Blvd.), Saddle Rd., (Ski Run Blvd. to End), Sterling Ct., (Saddle Rd. to End), Regina Rd., (Keller Rd. to Wildwood Ave.).

BID
ITEM
NO.

BID ITEM DESCRIPTION UNIT ESTIMATED

BID QTY

UNIT BID
PRICE
BID
ITEM
TOTAL
1 Mobilization/Demobilization LS 1 $50,000.00 $50,000.00 2 Traffic Control LS 1 $81,000.00 $81,000.00
3 Temporary Erosion Control LS 1 $3,500.00 $3,500.00
4 Fabricate and Install Project Signs EA 2 $1,500.00 $3,000.00 1183
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5 Lower and Raise Utilities (water,
sewer, storm drain, gas, etc.)
EA 100 $1,450.00 $145,000.00
6 Dig Out & Repair (Unsuitable Material) CY 100 $785.00 $78,500.00 7 Mill 4” AC SY 55,920 $1.23 $68,781.60
8 Placement of 4” of AC (2 Lifts) SY 55,920 $50.00 $2,796,000.00 9 Roadway Striping (12” Stop Bar) LF 160 $10.00 $1,600.00 10 Roadway Striping (4” Yellow Line) LF 400 $5.00 $2,000.00 11 AC Dike LF 200 $18.00 $3,600.00

5.3 ADD BID ALTERNATIVE 3 BID SCHEDULE
10th ST. (Roger Ave. to Taylor Way)
BID
ITEM
NO.

BID ITEM DESCRIPTION UNIT ESTIMATED

BID QTY

UNIT BID

PRICE BID ITEM TOTAL
A3-1 Mobilization LS 1 $6,000.00 $6,000.00
A3-2 Traffic Control LS 1 $8,000.00 $8,000.00
A3-3 Temporary Erosion Control LS 1 $1,200.00 $1,200.00 A3-4 Lower and Raise Utilities (water,
sewer, storm drain, gas) EA 25 $1,450.00 $36,250.00
A3-5 Dig Out & Repair (Unsuitable
Material) CY 25 $1,300.00 $32,500.00
A3-6 Mill 4” AC SY 5,245 $2.84 $14,895.80
A3-7 4” of AC (2 Lifts) SY 5,245 $53.00 $277,985.00
TOTAL BASE AND ADDITIVE 3 BID SUM $3,609,812.40
For the Total Contract Sum of THREE MILLION, SIX HUNDRED AND NINE THOUSAND, EIGHT HUNDRED AND TWELVE DOLLARS AND FORTY CENTS. .

The above Total Contract Sum includes all allowances, if any, provided for in the Contract Documents.

Compensation for Unit Price Items shall be based upon the unit prices stated in the above schedule multiplied by the actual quantities or units of work and materials performed or furnished.

Unit prices paid by the City may change depending on actual quantities or units of work completed in accordance with the Contract Documents.
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ARTICLE 4 — PREVAILING WAGES
Pursuant to the provisions of California Labor Code, Sections 1770 to 1780, inclusive thereof, the Contractor, and any subcontractor, of any tier, shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations.

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

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

ARTICLE 5 — CONTRACT DOCUMENTS
The Agreement includes and incorporates by reference the Contract Documents for the Project, which consists of the following documents:
(a) Notice to Bidders (Document 00100);
(b) Instructions to Bidders (Document 00200);
(c) Bid Proposal (Document 00400);
(d) Bidder's Bond (Document 00410);
(e) Designation of Subcontractors (Document 00420);
(f) Good Faith Effort for Local Hiring on Public Works Contracts (00421); (g) Verification of Contractor and Subcontractor DIR Registration (00423); (h) California Air Quality Control Board (CARB, Certificates of Reported Compliance (CRC) (00424);
(i) Self-Performance Declaration (Document 00425);
(j) Debarment and Suspension Certifications (Document 00430); (k) Non-Collusion Declaration (Document 00432);
(l) Worker's Compensation Certification (Document 00435); (m) Business and Professions Code Sections 7028.15 and 7031 Statement (Document 00440);
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(n) Bidder's Statement of Financial Responsibility, Technical Ability and Experience (Document 00450);
(o) Equal Employment Opportunity Certification (Document 00460); (p) Non-Lobbying Certification (Document 00465);
(q) Disclosure of Lobbying Activities (Document 00466); (r) Agreement (Document 00500);
(s) Payment Bond Form (Document 00610);
(t) Performance Bond Form (Document 00620);
(u) Sample Escrow Agreement for Security Deposits In Lieu of Retention (Document 00630);
(v) Warranty/Guaranty Form (Document 00635);
(w) Acknowledgment of City Code (Document 00640);
(x) Bid Document Certification (Document 00650);
(y) The Standard Specifications of the State of California, Department of Transportation, dated 2023; the Standard Plans of the State of California, Department of Transportation, dated 2023, and the South Lake Tahoe Public Improvement and Engineering Standards;
(z) Special Provisions, Document 00700 of the Bid Documents (which incorporate by reference, and, as specified, modify the Standard Specifications of the State of California, Department of Transportation, dated 2023; the Standard Plans of the State of California, Department of Transportation, dated 2023, and the South Lake Tahoe Public Improvement and Engineering Standards);
(aa) Supplemental Conditions (Document 00800), if any;
(bb) General Requirements, if any;
(cc) Construction Progress Documentation (Document 01300); (dd) Technical Specifications;
(ee) Contract Drawings;
(ff) Addenda (numbers ___ to____, inclusive; and
(gg) Permits from other agencies as may be required by law.

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

ARTICLE 6 — WORKERS’ COMPENSATION
Contractor shall take out and maintain during the life of the Agreement, adequate and sufficient workers’ compensation insurance for all Contractor’s employees employed at the site of 1186
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improvements, and, if any Work is sublet, Contractor shall require each subcontractor similarly to provide workers’ compensation insurance for all of the latter’s employees, unless such employees are covered by the protection afforded by Contractor. If any class of employees engaged in Work under this contract at the site of the Project is not protected under workers’ compensation law, Contractor shall provide, and shall cause each subcontractor to provide, adequate insurance for the protection of employees not otherwise protected. Contractor shall indemnify the City for any damage resulting to it from failure of either Contractor or any subcontractor to take out or maintain such insurance.

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

ARTICLE 7 — INDEMNITY AND INSURANCE
To the fullest extent permitted by law, and in strict accordance with the Contract Documents, Contractor shall defend, indemnify, and hold harmless the City, its officials, officers, City Council members, employees, agents, the Architect/Engineer, the Project Manager and the Project consultants, and their respective principals, officers and employees, and each of them, of and from any and all claims, demands, suits, causes of action, damages, costs, expenses, attorneys' fees, losses, or liability, in law or in equity, of every kind and nature whatsoever related to, arising out of, or in connection with, Contractor's operations to be performed under this Agreement, and as otherwise set forth in Contract Documents, including, without limitation, Section 7-1.05A of the Standard Specifications, as modified by Section 7.11 of the Special Provisions. The obligations of defense and indemnity set forth in this Article, and in the Contract Documents, shall not be limited by any insurance requirements or obligations pursuant to the Contract Documents. The obligations arising from this Article shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity (including all duties to defend), which would otherwise exist as to a party, or person described elsewhere in the Contract Documents.

Contractor shall maintain the insurance coverage described in Section 7-1.06 of the Standard Specifications, as modified by Section 7.12 of the Special Provisions, throughout the performance of the Agreement, including any maintenance, warranty and/or guaranty periods.

This Agreement shall not be operative until evidence of such insurance has been provided to, and approved by, the City as to form, amount, and carrier. Contractor shall not allow any subcontractor to commence Work at the Project until subcontractor provides evidence to Contractor and City that subcontractor has obtained insurance acceptable to the City.

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

Public Works Director/City Engineer All-American Construction, Inc.

City of South Lake Tahoe 1700 Acacia Ave.

South Lake Tahoe, CA 96150-6251 Sutter, CA 95982
Notices required to be given to any surety(ies):

ARTICLE 9 — MISCELLANEOUS

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

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

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

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

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

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

9.7 Regulatory Requirements. Contractor acknowledges that the Project is subject to requirements and regulations issued on behalf of various governmental and/or regulatory bodies, 1188
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including, without limitation, the Lahontan Regional Water Quality Control Board and the Tahoe Regional Planning Agency, among others. Contractor agrees to fully and promptly comply with any and all requirements and regulations issued on behalf of such entities.

9.8 Governing Law. This Agreement and the Contract Documents shall be deemed to have been entered into in the County of El Dorado, State of California, and governed by California law. By entering into this Agreement, the Contractor consents and submits to the jurisdiction of Courts of the State of California, County of El Dorado, over any action of law, suit in equity, and/or other proceeding that may arise out of the Contract Documents.

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

CITY OF SOUTH LAKE TAHOE Contractor: All-American Construction, Inc.

By By
Cody Bass, Mayor
City of South Lake Tahoe
State of California Title

Business License No.

ATTEST: APPROVED AS TO FORM:

By By
Susan Blankenship City Clerk Heather Stroud, City Attorney City of South Lake Tahoe City of South Lake Tahoe
END OF DOCUMENT 00500
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Exhibit A
Insurance Certificates and Endorsements
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Exhibit B
Payment Bond & Performance Bond
1191
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: June 4, 2024
Agenda Item #:19
Agenda Item: Commercial Use of the City’s El Dorado Beach Boat Launch Executive Summary: At the March 26, 2024, City Council meeting, Councilmember Robbins requested (Councilmember Wallace seconded) a discussion of the commercial usage of City docks. On March 16, 2021, City Council adopted an ordinance amending South Lake Tahoe City Code section 8.05.050 (Boating and Docks) prohibiting use of public docks for commercial activity. Leading up to this amendment, commercial use at the boat launch and dock had significantly increased with boat rental companies using the boat dock for private business purposes. The increased use resulted in adverse impacts to public recreational uses and public safety concerns. The amendment to the ordinance eliminated negative impacts from commercial uses and improved public safety on and off the water. The City constructed the boat launch under a grant agreement with the California Department of Boating and Waterways (DBW) that requires the City operate the boat launch as a recreational boat launching facility.

The amendment to the ordinance aligned the Cityâ€™s boat launch program within the terms of use of the DBW grant agreement. An additional restriction prohibiting commercial activity for the boat launch includes the Tahoe Regional Planning Agencyâ€™s (TRPA) Ordinance 84.10.2 Water Oriented Recreation Concessions, specifically section B.2 of the ordinance states new motorized boat concessions may be allowed only within an existing marina. El Dorado Boat Launch is not a marina and new motorized boat concessions would not be approved by the TRPA per this code section.

Requested Action / Suggested Motions: Receive & File.

Responsible Staff Member: John Stark, Director of Parks & Recreation Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff_Report_-_Commercial_Use_of_the_City_s_El_Dorado_Beach_Boat_Launch.docx 02-Boat Launch Grant Contract DBW.pdf
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May 21, 2024 Council Agenda Report June 4, 2024 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: June 4, 2024
Title: Commercial Use of the City’s El Dorado Beach Boat Launch Location: Citywide
Responsible Staff Member: John Stark, Director of Parks & Recreation Background: At the March 26, 2024 City Council meeting, Councilmember Robbins requested (Councilmember Wallace seconded) a discussion of the commercial usage of City docks.

On March 16, 2021, City Council adopted an ordinance amending South Lake Tahoe City Code section 8.05.050 (Boating and Docks) prohibiting use of public docks for commercial activity.

Leading up to this amendment, commercial use at the boat launch and dock had significantly increased with boat rental companies using the boat dock for private business purposes. The increased use resulted in adverse impacts to public recreational uses and public safety concerns.

The amendment to the ordinance eliminated negative impacts from commercial uses and improved public safety on and off the water.

Issue and Discussion: The City constructed the boat launch under a grant agreement with the California Department of Boating and Waterways (DBW) that requires the City operate the boat launch as a recreational boat launching facility (Attachment 02 -Article 7-Operation of Project). Prior to the adoption of the South Lake Tahoe City Code section 8.05.050 (Boating and Docks) amendment prohibiting use of public docks for commercial activity, private boat rental companies were using the public boat dock to shuttle passengers on and off rental boats every day throughout the summer. This resulted in capacity issues at the boat dock, negatively impacted the recreational boater experience, and created numerous public safety concerns on and off the water. The amendment to the ordinance aligned the City’s boat launch program within the terms of use of the DBW grant agreement.

An additional restriction prohibiting commercial activity for El Dorado Beach Boat Launch includes the Tahoe Regional Planning Agency’s (TRPA) Ordinance 84.10.2 Water Oriented Recreation Concessions which states the following:
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May 21, 2024 Council Agenda Report June 4, 2024 Page 2 of 2 Section B.2 of the ordinance states new motorized boat concessions may be allowed only within an existing marina. El Dorado Beach Boat Launch is not a marina and new motorized boat concessions would not be approved by the TRPA per this code section.

Financial Implications: There is an administrative citation of $1,000 for each violation of the ordinance under Chapter 2.30 SLTCC.

Environmental Considerations: The past amendment to the ordinance to prohibit commercial activity at the public dock is not a project under the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) and will not result in direct or indirect physical changes on the environment.

Policy Implications: The amended code aligned the City with the DBW grant agreement terms and follows TRPA ordinance 84.10.2 related to Water Oriented Outdoor Recreation Concessions. 1194
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: June 4, 2024
Agenda Item #:20
Agenda Item: City Development Rights Annual Report
Executive Summary: Pursuant to City Council Resolution 2023-051, the Development Services Department shall have an appraisal prepared annually, analyzing the sale of development rights and recommending a fair-market value for such rights.

Requested Action / Suggested Motions: Pass a Resolution accepting the development rights appraisal prepared by Johnson Valuation Group Limited and establishing a price point for the calendar year 2024 at one-third of the recommended fair market value outlined in the appraisal.

Responsible Staff Member: John Hitchcock, Planning Manager Reviewed and Approved By: Zachary Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - Development Rights Appraisal.docx
02-Development Rights Accounting.docx
03-Res. 2023-051 - TRPA Development Commodities.pdf
04-2024 Revised Appraisal.pdf
05-Resolution - Appraisal of Development Rights.docx
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Council Agenda Report June 4, 2024 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: June 4, 2024
Title: City Development Rights Annual Report
Location: Citywide
Responsible Staff Member: John Hitchcock, Planning Manager, (530) 542-7472 Background: The City maintains an inventory of potential residential units of use, single and multi-family residential units of use, tourist accommodation units, commercial floor area, and land coverage, which have been accumulated from various sources (e.g., Environmental Improvement Projects, implementing of Community Plans and Area Plans, City purchase of land with attached development right). See Attachment 02 for an inventory of development rights owned by the City.

In order to establish a clear City policy for the disposition of these assets, the City Council on September 3, 2019, adopted Resolution 2019-067, which provided for a consistent and equitable disposition process, promoted the achievement of the City's affordable housing and community development goals, and provided certainty for the development community. The adopted resolutions 1) established an annual determination for the fair market value of the development rights and specifies that the City Council will establish a price point for each category by applying a factor of one-third to be the recommended rate, 2) provides for the earmarking of sales revenue in the City's new Workforce Housing Fund (to be used for targeted affordable housing initiatives), 3) provides for the sale of development rights for deed-restricted housing projects at no cost, 4) provides for the sale of development rights for multi-family residential projects and mixed-use projects within an established Town Center at no cost, 5) provides for the sale of development rights for commercial or industrial projects that redevelop distressed properties at no cost, and 6) delegates authority to complete transactions to the City Manager.

On June 6, 2023, the City Council adopted Resolution 2023-051 (see Attachment 03) amending Resolution 2019-067 to set aside up to 70 banked tourist accommodation units to be converted to residential units of use and provided at no cost to construct new accessory dwelling units or multifamily rental units. The resolution requires deed restrictions be placed on the properties prohibiting their use as a vacation home rental and for multi-family projects, Language was also adopted, restricting the conversion of commercial floor area to other development rights.

As of the writing of this staff report, the City has received $422,503.94 in revenue from the sale of commodities that is set aside for Housing program and project implementation. In addition the City has converted 41 TAUs for the construction of 15 accessory dwelling units, 21 multi-family rental untis, and 21 student housing units.

Issue and Discussion: Pursuant to Resolution 2023-051 the City contracted with Mr. Ben Johnson of Johnson Valuation Group Limited, to revise his 2023 appraisal and estimate the market value of the assets owned by the City. Mr. Johnson was tasked with providing a general overview of the market conditions in the Lake Tahoe Basin and providing a detailed analysis of the 1226
Council Agenda Report June 4, 2024 Page 2 of 3
market for each development right and recommending a per unit market value for each development right.

Mr. Johnson's scope of work included interviewing experienced land use planners well versed in TRPA's growth management system and project permitting, real estate agents, developers and the staff of the California Tahoe Conservancy (CTC) & Nevada State Lands. Historically, these two state agencies have been the primary source for development rights in the Tahoe Basin. Mr.

Johnson also did extensive research on the existing market conditions, analyzed the sale of development rights, and completed a comparable sales analysis of each development right.

Appraisal and findings on the current state of the market are included in Attachment 04, which analyzes the change in market conditions for development rights from January 1, 2023 to December 31, 2023. After extensive research and careful consideration of all data available, site inspections, recent sales of development rights, and comparative analysis of comparable properties, Mr. Johnson recommends changes to the fair market value for Commercial Floor Area, Tourist Accommodation Units of Use and Commercial Floor Area.

Commercial Floor Area
The appraisal noted that Barton Healthcare has been the largest seller of CFA in the past and has historically asked $25 per square foot. However, Barton Healthcare did not have sell any CFA in 2023, and Mr. Johnson was only able to find one CFA transaction for $22.50 per square foot.

Thus, Mr. Johnson is recommended reducing the estimated value of CFA from $25 to $22.50 per square foot.

Residential Units of Use
The appraisal noted that in 2023 the estimated value of a RUU has raised significantly from the previous year’s estimated value of $15,000 due a scarcity of available RUUs on the open market.

The appraisal noted four transactions with a price ranging from $27,500 to $35,000. There are also currently two listings for RUUs with an asking price of $30,000 that has generated interest on the open market. Based on the information considered in the appraisal, it is estimated that the market value of an RUU is presently in the range of $27,500 to $30,000 each. Thus, Mr. Johnson is recommended a correlated estimated value of $28,750.

Mr. Johnson also recommends increasing the value of potential coverage in the Upper Truckee Watershed from $6.00 per square foot to $7.50 per square foot. This recommended change would align the City market value with the CTC, which is the primary agency in the basin selling potential land coverage for the construction of residential uses.

Tourist Accommodation Units
Based on the research conducted as part of this market conditions update letter, a sale of a TAU for $25,000 was identified in 2023. There is also reported to be interest in the market for additional TAUs from a hospitality redevelopment project presently proposed in the Washoe County portion of the Tahoe Basin that has not yet been able to secure the necessary number of TAUs. Thus Mr.

Johnson recommends an estimated market value of a TAU at $25,000, an increase of $10,000 over the previous year.
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Council Agenda Report June 4, 2024 Page 3 of 3
Based on the research conducted as part of this market conditions update letter, a sale of a TAU for $25,000 was identified in 2023. There is also reported to be interest in the market for additional The recommended market values for all city-owned development rights is listed in the table below.

Development Right Market Value Per Unit Based
on Typical Retail Quantity
Price Point Based on
City Council policy
Land Coverage 1B $30/Sq. Ft. $9.99/Sq. Ft.

Land Coverage 4-7 (Potential)
South Stateline HRA
Upper Truckee HRA
$7.50/Sq. Ft.
$7.50/Sq. Ft.
$2.50/Sq. Ft.
$2.50/Sq. Ft.

Land Coverage 4-7 (Hard) $25/Sq. Ft. $8.33/Sq. Ft.

Commercial Floor Area $22.50/Sq. Ft. $7.42/Sq. Ft.

Potential Residential Units of
Use
$5,000/Unit $1,666/Unit
Residential Units of Use $28,750/Unit $9,487/Unit
Tourist Accommodation Units
(City Owned)
$25,000/Unit $8,250/Unit
Tourist Accommodation Units
(Successor Agency)
$25,000/Unit $25,000/Unit
Environmental Considerations: Implementing a policy for the sale of development rights and land coverage is not approval of a project under the California Environmental Quality Act (CEQA) Guidelines Sections 15352 and 15378. Any proposed project that uses development rights and /or land coverage purchased from the City would be required to go through a project-level environmental analysis pursuant to the CEQA Guidelines.

Financial Implications: Revenue generated from the sale of development rights and/or land coverage is used to support City Council Housing priorities. The revenue generated from direct sales of the development rights/land coverage is earmarked to support the City's Workforce Housing Fund (to be used for targeted housing initiatives). Satisfaction with all conditions of an approved sale, including project completion, is required before the funds are available for use.

Policy Implication: The City Council policies for distribution of development commodities is consistent with the following General Plan Land Use Element policy. Note that the target number of residential units has been updated in the recently adopted Housing Element.

Policy LU1.10: Future Residential Development Rights (RDR) Commodities. The City shall pursue the maximum amount of available residential unit allocations from the Tahoe Regional Planning Agency in order to use them as an incentive for revitalization, including workforce housing, up to an additional 940 market rate units and 222 affordable units. (Note: please see the Housing Element for additional policies related to market rate and affordable housing, incentives, and locations).
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CITY VERIFIED & BANKED DEVELOPMENT RIGHTS

STATELINE HRA
Low Capability Hard Coverage 68,143 SF
Low Capability Hard Coverage (ROW) 4,170 SF
High Capability Hard Coverage 68,460 SF
High Capability Hard Coverage (ROW) 40,784 SF
Soft Coverage 7,706 SF
Soft Coverage (ROW) 4,134 SF

UPPER TRUCKEE HRA
Low Capability Hard Coverage 92,956 SF
Low Capability Hard Coverage (ROW) 1,927 SF
High Capability Hard Coverage 24,849 SF
High Capability Hard Coverage (ROW) 37,367 SF
Soft Coverage -
Soft Coverage (ROW) 2,625 SF

OTHER DEVELOPMENT RIGHTS
Airport 1b Hard Coverage 63,472 SF
SEZ Restoration Credit 17,260 SF
ERUU 8.5
PRUU 6
TAU City Owned* 137
CFA Banked 20,390 SF
Sewer Units 67
Potential Coverage (LC 5) 150,000 SF

COMMERCIAL FLOOR AREA POOLS
South Y Industrial Community Plan 0
Bijou/Al Tahoe Community Plan 6,150 SF
Tahoe Valley Area Plan 944 SF
Tourist Core Area Plan 0
EIP 1 Pool 1,333 SF
EIP 2 Pool 8,000 SF
Community Plan Recharge 3,134 SF

RESIDENTIAL ALLOCATIONS
Single Family Pool 53
Multi-Family Pool 24
Town Center Pool 55
* 64 TAUs reserved for Placer County
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CITY-OWNED COMMODITIES TRANSACTIONS
Location Project Type
Development
Right Amount Cost Notes
1195 Ski Run Blvd
Recreation - Ski Run
Park Coverage 1,115 SF $ 0 City Council granted at no cost 2877 Lake Tahoe
Blvd Commercial Remodel Coverage 2,803 SF $ 23,349.00 Coverage for LTSLT Office Remodel 1772 D Street
Commercial
(Industrial Park) Coverage 38,000 SF
$
316,540.00 Coverage for New Commercial Buildings
1772 D Street
Commercial
(Industrial Park) CFA 1,407 SF $ 9,384.69
CFA for New Commercial/Industrial
Building
980 Link Rd Commercial CFA 972 SF $ 8,096.76
CFA for New Commercial/Industrial
Building
Tahoe Valley MFD
Project
Multi-Family
Residential CFA 2,800 SF $ 14,000.00
CFA Converted tor 14 Unit market Rate
Multi-Family Project
1181 Emerald Bay
Rd Commercial Addition CFA 1,141 SF $ 5,705.00 CFA for Outdoor Dining 933 Poplar
Tourist
Accommodation CFA 650 SF $ 5,414.50 CFA for Maggi's Restaurant 1056 Ski Run Blvd
Single Family
Residential ERUU 1 $ 7,500.00
ERUU to Convert Commercial Building to
Residential Unit
2494 Conestoga
Multi-Family
Residential ERUU 1 $5,000.00 ERUU for a New Duplex
3067 Bellevue Ave ADU ERUU 1 $ 0 TAU Conversion
1061 William Ave ADU ERUU 1 $ 0 TAU Conversion
1051 William Ave ADU ERUU 1 $ 0 TAU Conversion
1320 Bonanza Ave ADU ERUU 1 $ 0 TAU Conversion
1029 Tata Ln
Multi-Family
Residential (SPV) ERUU 1 $ 0 ERUU for Manager's Unit
2 College Dr
Multi-Family
Residential ERUU 14 $ 0 TAU Conversion
3317 Fir ADU ERUU 1 $ 0 TAU Conversion
2532 Palmira ADU ERUU 1 $ 0 TAU Conversion
1109 Tata Ln ADU ERUU 1 $ 0 TAU Conversion
1149 Long Valley
Ave ADU ERUU 1 $ 0 TAU Conversion
1051, 1057 & 1065
Fern Rd
Multi-Family
Residential & ADU ERUU 8 $ 0 TAU Conversion
3054 Fresno Ave
Multi-Family
Residential ERUU 1 $ 0 TAU Conversion for a New Duplex
4130 Lake Tahoe
Blvd
Tourist
Accommodation CFA 825 SF $ 6,872.25 CFA for Outdoor Dining 4130 Lake Tahoe
Blvd
Tourist
Accommodation CFA 1,147 SF $ 9,554.51 CFA for Outdoor Dining 1888 Lake Tahoe
Blvd MFD ERUU 1 $ 0 TAU Conversion
1971 F Street MFD ERUU 7 $ 0 TAU Conversion
3631 Spruce Ave ADU ERUU 1 $ 0 TAU Conversion
940 Cave Rock ADU ERUU 1 $ 0 TAU Conversion
1001 Heavenly
Village Wy Commercial Addition CFA 1,331 SF $ 11,087.23 CFA for Outdoor Dining (Transfer Pending
Payment)
$422,503.94
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Resolution 2023- 051 June 6, 2023 Page 1 of 5
Resolution 2023-051
Adopted by the City of South Lake Tahoe
City Council
June 6, 2023
Adopting Policy Regarding Disposition of Tahoe Regional Planning Agency Development Commodities Owned by the City of South Lake Tahoe (Replaces Resolution 2022-051)

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

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

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

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

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

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

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

H. Through the sale of TRPA development rights and land coverage, the City has also provided an environmental and economic incentive to projects which otherwise would not have been economically feasible.
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Resolution 2023- 051 June 6, 2023 Page 2 of 5
I. The City believes it is appropriate and transparent to establish a policy that addresses the future distribution and sale of development rights and land coverage maintained by the City.

Based on the facts set forth in the background, be it resolved, that the City Council of the City of South Lake Tahoe:

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

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

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

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

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

C. The distribution and sale of development rights and land coverage shall be to the affected parcel( s), not the developer/ applicant; and
i. Any change to an approved project ( e.g., elevations, building size or siting, land uses, or density) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. The City Manager has the discretion to require any project change to be reviewed by the City Council to 1232
Resolution 2023- 051 June 6, 2023 Page 3 of 5
determine whether development rights or land coverage should be revoked. If revoked, the developer/ applicant will return to the City the allocated development rights and/or land coverage. The City shall reimburse the developer/ applicant the price of sale, less the City's administrative processing fee.

D. The distribution and sale of TRPA development rights and land coverage shall be at no cost for the following projects:
i. The sale of city-owned development rights and land coverage shall be at no cost to single or multi-family residential projects, which are deed restricted to accommodate low, very-low, and moderate- income families, as defined by the Department of Housing and Community Development HCD) annual State Income Limits, pursuant to Health & Safety Code Section 50093. ii. The sale of city-owned development rights and land coverage shall be at no cost to a developer/ applicant of a multi-family residential project or a mixeduse project containing multi-family residential units, if the project is located with the boundaries of an identified Town Center.
a. A mixed- use project can be the horizontal or vertical mix of uses residential, commercial and industrial).
iii. The sale of city-owned development rights and land coverage shall be at no cost to commercial/ industrial projects, when the property is deemed to be distressed and/or blighted, and the value of the proposed improvements and/or new construction are greater than fifty-one percent of the El Dorado County assessed value.
iv. Seventy ( 70) City banked Tourist Accommodation Units are set aside and may only be used for converting to Residential Units of Use and sold at no cost for the construction of new Accessory Dwelling Units or the construction of new multi-family rental units (2 or more units) projects.

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

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

3.50.370.
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Resolution 2023- 051 June 6, 2023 Page 4 of 5
F. Commercial Floor Area shall only be provided or sold to a commercial project and shall not be converted to other development right types.

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

A. The Development Services Department will have an appraisal prepared by a California licenses appraiser, analyzing the sale of each development right potential residential units of use (PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), commercial floor area CFA); and land coverage, for the preceding calendar year. i. The appraiser shall prepare the above- described report for presentation to the City Council on or before February 1 of each calendar year. a. The report shall describe the methodology used in determining the value of each development right category, including commercial floor area, and b. The report shall contain recommendations for each development right category, including land coverage; and
c. The report shall also include a recommended tiers rate structure to address variances based on the scale of the project.
ii. The City Council reserves the right to annually set the price point for each development right type and/or land coverage; and
a. The established cost per category, shall be based upon one-third of the recommended appraisal rate.
iii. A developer/ applicant shall have one-year from the date of the approved development right/land coverage request to submit and obtain a building permit, issued through the City. If this milestone is unachievable the applicant may apply for an extension or relinquish the City granted development rights and land coverage.
iv. One, one-year extension for the retention of approved development rights/ land coverage may be granted by the City Manager, based on the project continuing to meet the distribution policy and proceeding in a diligent manner, or relinquish the City granted development rights and land coverage.
v. The sale and transfer of development rights/ land coverage shall be completed prior to the issuance of a Certificate of Occupancy. vi. If any of the associated City Planning, Building and/or TRPA permits expire, the allocated development rights/ land coverage shall be returned 1234
Resolution 2023- 051 June 6, 2023 Page 5 of 5
to the City. The City shall also reimburse the developer/ applicant for the cost of those development rights/land coverage, less the City's administrative processing fee.
vii. Should the project parcel( s) change ownership the development rights may be transferred to a new owner so long as the project is constructed as approved. Any change to an approved project ( e.g., elevations, building siting, interior configuration) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. viii. When approved development rights/ land coverage is banked on a sending parcel, the developer/ applicant shall obtain TRPA Transfer of Development Rights approval prior to the issuance of a Certificate of Occupancy.
ix. The proceeds from the sale of city-owned development rights/ land coverage shall be dedicated to the City's Workforce Housing Fund to support the City's affordable housing initiatives.

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

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

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

E. These policies supersede all other distribution and sale of development rights and land coverage policies adopted by the City Council through Resolution 2017- 73, Resolution 2019-067, and Resolution 2022-051.

Adopted by the City of South Lake Tahoe City Council on June 6, 2023 by the following vote:

Yes: Bass, Creegan, Friedrich, Robbins and Wallace
Date:_________
Cristi Creegan, Mayor
Attest:

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

Sue Blankenship ( Jun 8, 2023 12: 42 PDT)
Cristi Creegan ( Jun 9, 2023 08:15 PDT)
Cristi Creegan Jun 9, 2023
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Res 2023-051 TRPA Development
Commodities
Final Audit Report 2023- 06-09
Created: 2023- 06-08
By: jo Mcdonough ( jmcdonough@cityofslt. us)
Status: Signed
Transaction ID: CBJCHBCAABAAqlqlVoiljZR8JQTKvqp7F- 2XkGjkOuBt Res 2023-051 TRPA Development Commodities" History
Document created by jo Mcdonough ([email protected]) 2023- 06- 08 - 6:05:52 PM GMT- IP address: 128. 92.136. 146 Document emailed to Sue Blankenship ([email protected]) for signature 2023- 06- 08 - 6:20:58 PM GMT
Email viewed by Sue Blankenship ( sblankenship@cityofslt. us) 2023- 06- 08 - 7:41:55 PM GMT- IP address: 104. 47.65.254 Document e-signed by Sue Blankenship ([email protected]) Signature Date: 2023- 06-08 - 7:42:07 PM GMT - Time Source: server- IP address: 128. 92.136. 146 Document emailed to [email protected] for signature 2023- 06- 08 - 7:42:08 PM GMT
Email viewed by [email protected]
2023- 06- 09 - 3:15:03 PM GMT- IP address: 104. 47.65.254 Signer [email protected] entered name at signing as Cristi Creegan 2023- 06- 09 - 3:15:16 PM GMT- IP address: 47.25.118. 95 Document e-signed by Cristi Creegan ([email protected]) Signature Date: 2023- 06-09 - 3:15:18 PM GMT - Time Source: server- IP address: 47.25.118. 95 Agreement completed.
2023- 06- 09 - 3:15:18 PM GMT
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  
JohnsonValuation Group, Ltd.

Post Office Box 11430 124 McFaul Way, Ste. 201 Lake Tahoe, Nevada 89448 (775) 588-4787 www.johnsonvaluationgroup.com
California / Nevada
March 8, 2024
Via E-Mail: [email protected]
Mr. John Hitchcock
Planning Manager
City of South Lake Tahoe
Re: TRPA Intangible Development Rights Valuation update letter Dear Mr. Hitchcock:

This is in response to your request for a letter addressing updated Market Values of the City of South Lake Tahoe’s Lake Tahoe Basin Development Rights (intangible development rights). These Development Rights include Land Coverage, Commercial Floor Area (CFA), Residential Development Rights, Residential Units of Use, Potential Residential Units of Use, and Tourist Accommodation Units (TAUs). The undersigned previously prepared a narrative appraisal of the City’s TRPA Development Rights with a date of valuation of January 30, 2020 and a date of issuance of March 26, 2020 (“Original Appraisal”). Subsequently, on August 28, 2020, the First Supplemental Letter to the Original Appraisal addressing updated market conditions from January 30, 2020 to August 28, 2020 was issued. On January 14, 2021, the Second Supplemental Letter to the Original Appraisal addressing Market Conditions from January 30, 2020 to January 14, 2021 was issued. On February 24, 2022 the Third Supplemental Letter to the Original Appraisal, with an effective date of valuation of January 31, 2022 was issued. On February 16, 2023 the Fourth Supplement Letter to the Original Appraisal was issued predicated upon a date of valuation of January 31, 2023. This is the Fifth Supplement Letter to the Original Appraisal and is based on a date of valuation of January 31, 2024. This Fifth Supplemental Letter is incorporated by reference to the Original Appraisal, the First Supplemental Letter, the Second Supplemental Letter, the Third Supplemental Letter and the Fourth Supplemental Letter. It is assumed the reader of this update letter has access to all Draft -For Discussion Purposes Only
3/8/2024
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California Nevada 
JohnsonValuation Group, Ltd.

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23-003
aforementioned documents that are incorporated by reference herein and has reviewed full copies of all of these documents.

This report is being prepared as a new Appraisal Report under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). It is an extraordinary assumption1 of this appraisal that the reader of this appraisal has access to and has fully reviewed a full copy of the Original Appraisal and First through Fourth Update Letters Advisory Opinion 3 of the 2024/25 edition of USPAP provides the following guidance relative to updating a prior appraisal.
“When developing an opinion regarding a property that was the subject of a previous assignment, the scope of work in the new assignment may be different from the scope of work in the prior one. In addition, rather than duplicating steps in the appraisal process, the appraiser can elect to incorporate some of the analyses from the previous assignment (those items that the appraiser concludes are credible and in compliance with the applicable development Standard) into the new assignment through the use of an extraordinary assumption.” This appraisal incorporates by reference the Original Appraisal. Advisory Opinion 3 of the 2024/25 edition of USPAP provides the following guidance relative to incorporating by reference a prior appraisal when completing a new assignment:
“a new report that incorporates by reference specified information/analysis from the prior report so that, in combination, the referenced portions and the new information/analysis added satisfies the applicable reporting requirements. When this incorporation by reference option is used, the following items from that prior report should be specifically identified in the new report to avoid being misleading:
• subject property

1 This report, and the value conclusion(s) set forth herein, is subject to an extraordinary assumption. An extraordinary assumption is defined by the 2024/25 version of USPAP as “an assignment specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.”1 Draft -For Discussion Purposes Only
3/8/2024
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California Nevada 
JohnsonValuation Group, Ltd.

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• client and any other intended users
• intended use
• appraiser(s)
• effective date of value or assignment results
• date of report, and
• interest(s) appraised”
Pursuant to your request, I have prepared this Fifth Supplemental Letter to update the 100% fee simple Market Values for TRPA commodities owned by the City of South Lake Tahoe to January 31, 2024 in typical retail quantities as identified in the Original Appraisal. In order to analyze how market conditions may have changed, the undersigned has reviewed market conditions for the improved commercial and residential real estate market and the changes in the market for TRPA Development Rights and interviewed various market participants. The Client and Intended User of this letter is the City of South Lake Tahoe. The intended use is to assist the City of South Lake Tahoe in establishing the value of their owned TRPA intangible development rights in considering potential offers they may receive to purchase some of these rights.

Draft -For Discussion Purposes Only
3/8/2024
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California Nevada 
JohnsonValuation Group, Ltd.

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The South Lake Tahoe Board of Realtors has collected the following data for the California side of the Lake Tahoe Basin:

In 2023, the median sale price decreased by 5.5% and the median sale price per square foot decreased by 5.0%. The total sales volume decreased by 38.2% and the average number days on market increased by 18.6%. Brokers and Realtors indicated buyers are becoming more price resistant at the present time and the increases in interest rates in 2022 and 2023 have had an adverse affect on affordability.

Currently (as of 1/24/24) there are 124 listing in the El Dorado County portion of South Shore. The median listing price is $791,000 and average listing price is $1,697,577. Inventory is beginning to increase with 3.8 months of supply of units presently available for on the market based on 2023’s total number of sales. In January, 2023, there was less than a two-month supply of inventory.

Changes in the commercial market have also been considered. The demand for sale commercial properties is largely being driven by buyers completing tax deferred exchanges (1031 exchange) and desiring a replacement property in the Tahoe area. The market for Draft -For Discussion Purposes Only
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development land has experienced strong headwinds due to the increases in costs of construction (both labor and materials) and increased interest rates. Many commercial agents and owners indicate the market is in stage of pause at the present time.

Next, the market for TRPA development rights has been considered. The undersigned interviewed staff at the California Tahoe Conservancy, real estate agents, and private TRPA consultants in January and February of 2024. These interviews indicated that there has been very limited sales of TRPA development rights over the last year and market participants have widely varying views of pricing and demand. Due in part to the very limited sales volume, market participants do not appear to have enough data points through which to form a consolidated view of market conditions and pricing for some TRPA development rights.

Class 1b Land Coverage
In the Fourth Update Appraisal (date of value of January 31, 2023), the value per square foot of 1b land coverage was estimated to be $30.00 per square foot. The California Tahoe Conservancy had four sales for SEZ restoration credit in 2023 that all transacted at a price of $30 per square foot. Two of these sales were in the Upper Truckee Hydrological Area and two of these sales were in the Tahoe City Hydrological Area. In discussions with Land Planners it was indicated that there is a relatively small market for 1b coverage and sellers are largely able to name their price as the primary buyers are higher end residential properties that have inelastic demand. Land Planners reported sale prices of up to $35 per square foot for 1b Land Coverage in 2023, but generally indicated that the market accepts the CTC’s established price of $30 per square foot for the primary basis of establishing value. Based on the CTC’s current asking price the Market Value for 1b Coverage is estimated, as of January 31, 2024, at $30 per square foot.

High Capability Potential Coverage – Upper Truckee
In the Fourth Update Appraisal (date of value of January 31, 2023), the Market Value of high capability potential coverage in the Upper Truckee Hydrologic Basin was estimated at $7.50 per square foot. The CTC presently has an asking price of $7.50 per square foot.

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Below is a summary of the high capability potential coverage sales by the CTC in 2023 for the Upper Truckee Hydrologic Basin:

High Capability Potential Coverage Sales
Upper Truckee Hydrological Basin
Commodity Amount of Coverage Sale Price per SF Sale Price Escrow Close Date Class 7 - Potential 224 $7.50 $1,680 12/13/2023
Class 7 – Potential 185 $7.50 $1,365 6/19/2023
As indicated, all of the CTC’s sales of high capability potential coverage in the Upper Truckee Hydrologic Basin in 2023 were for $7.50 per square foot. Based on this data the Market Value of high capability potential coverage in the Upper Truckee Hydrologic Basin is estimated, as of January 31, 2024, at $7.50 per square foot for a typical retail quantity.

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High Capability Potential Coverage – South Stateline
In the Fourth Update Appraisal (date of value of January 31, 2023), the Market Value of high capability potential coverage in the South Stateline Hydrologic Basin was estimated at $7.50 per square foot. The CTC presently has an asking price of $7.50 per square foot. Below is a summary of the high capability potential coverage sales by the CTC in 2023 for the South Stateline Hydrologic Basin:

High Capability Potential Coverage Sales
South Stateline Hydrological Basin
Commodity Amount of Coverage Sale Price per SF Sale Price Escrow Close Date Class 7 - Potential 1,498 $7.50 $11,235 03/22/2023
As indicated, the CTC’s only sale of high capability potential coverage in the South Stateline Hydrologic Basin in 2023 was for $7.50 per square foot. Based on this data and the data contained in prior update appraisals, the Market Value of high capability potential coverage in the South Stateline Hydrologic Basin is estimated, as of January 31, 2024, at $7.50 per square foot for a typical retail quantity.

Restored Hard Coverage
In the In the Fourth Update Appraisal (date of value of January 31, 2023)l, the Market Value of restored hard coverage in the South Stateline Hydrologic Area and the Upper Truckee Hydrologic Area was estimated at $25.00 per square foot. The undersigned is not aware of any 2023 sales of restored hard coverage . The CTC’s present asking price for restored hard coverage is $25.00 per square foot. Based on the limited information, the Market Value of restored hard coverage in the South Stateline Hydrologic Area and the Upper Truckee Hydrologic Area is estimated at $25 per square foot.

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Commercial Floor Area (CFA)
In the Fourth Update Appraisal (date of value of January 31, 2023), the value per square foot of CFA was estimated to be $25.00 per square foot. The undersigned identified one sale of CFA in 2023 for $22.50 per square foot. Of note, Barton Healthcare, which has been one of the larger sellers of CFA in the past, did not have any transactions of CFA in 2023. Barton Healthcare has historically asked $25.00 per square foot for their CFA. Based on the lack of sales by Barton Healthcare and the one sale for $22.50 per square foot. The estimated value of CFA, as of January 31, 2024, is $22.50 per square foot.

Residential Unit of Use (RUU)
In the Fourth Update Appraisal (date of value of January 31, 2023), the value of a Residential Unit of Use (RUU) was estimated to be $15,000.

In 2023, there was a sale facilitated by Wyatt Ogilvy for a price of $28,000. Wyatt indicated that due to scarcity of the commodity prices have been escalating substantially over the last year.

In February of 2024 there was a two part transaction involving two RUUs. The first RUU sold for $35,000 and then the buyer asked the same seller for a second RUU and negotiated a purchase price of $20,000. The combined price of $55,000 for two RUUs reflects an average price of $27,500 per RUU.

Nick Exline, a TRPA consultant and land planner, indicated that his most recent sale price of an RUU was for $32,500.

There is a current listing of two RUUs in South Lake Tahoe for $60,000 ($30,000 per RUU). The selling agent indicated they have received market interest in the listing and would be willing to sell each RUU individually for $30,000.

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The undersigned is also aware of CFA being converted to residential units of use to create new RUUs, with property owners using existing CFA that was already owned or CFA that they acquired on the open market. At the current market price of $22.50 per square foot for CFA and 300 square feet of CFA being convertible to a single-family residential unit of use, it indicates the implied value of an RUU is $6,750. However, this process takes time, uncertainty and cost to purchase and covert CFA into an RUU. The lack of sales data uncovered as part of this assignment for RUUs indicates that buyers would rather go through the process of converting CFA as opposed to buying an RUU right on the open market at the present time. On the other hand, there would likely be a market premium attached to a RUU as opposed to buying CFA and converting it.

Based on the information considered herein, it is estimated that the Market Value of an RUU is presently in the range of $27,500 to $30,000 each. This range will be correlated to $28,750.

Tourist Accommodation Unit (TAU)
In the Fourth Update Appraisal (date of value of January 31, 2023) the value of a TAU was estimated to be $15,000. Based on the research conducted as part of this market conditions update letter, a sale of a TAU for $25,000 was identified in 2023. There is also reported to be interest in the market for additional TAUs from a hospitality redevelopment project presently proposed in the Washoe County portion of the Tahoe Basin that has not yet been able to secure the necessary number of TAUs. Therefore, the estimated present value of a TAU, as of January 31, 2024, is $25,000/each.

Potential Residential Unit of Use (Formerly Residential Development Right) In the Fourth Update Appraisal (date of value of January 31, 2023), the Market Value of a Potential Residential Unit of Use was estimated at $5,000. The undersigned is not aware of any 2023 sales of a Potential Residential Unit of Use and the value is opined to be unchanged.

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Overall, the market values summarized herein are based on limited sales data and values may continue to change in the near term as additional transactions occur. It is noted that of the various interviews conducted, many had materially different views of the pricing and future demand for various TRPA development rights. The value conclusions are summarized as follows:

Summary of Value Conclusions
As of January 31, 2024
Development Resource Acronym
Market Value Per Unit
Based on Typical Retail
Quantity
Land Coverage 1B N/A $30.00/SF
Potential High Capability Land Coverage
South Stateline Hydrological Area N/A $7.50/SF
Potential High Capability Land Coverage
Upper Truckee Hydrological Area N/A $7.50/SF
Restored Hard High Capability Land Coverage
South Stateline and Upper Truckee Hydrological Areas N/A $25.00/SF Commercial Floor Area CFA $22.50/SF
Residential Unit of Use RUU $28,750/Ea.

Tourist Accommodation Unit TAU $25,000/Ea.

Potential Residential Unit of Use PRU $5,000/Ea.

Respectfully Submitted,
_________________________________
Benjamin Q. Johnson, MAI
California Certified General Appraiser
License Number AG043925
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APPRAISER’S CERTIFICATION
Each of the undersigned do hereby certify that, unless otherwise noted in this appraisal report:
• I have not made a personal inspection of the property that is the subject of this report as it involves intangible development rights.
• I have no present or contemplated future interest in the real estate that is the subject of this appraisal report.
• I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• I am acting independently of the borrower.
• To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analysis, opinions, and conclusions herein are based, are true and correct.
• This report sets forth all the limiting conditions (imposed by the terms of our assignment or by the undersigned) affecting the analysis, opinions, and conclusions contained in this report.
• The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
• My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. • The appraisal was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• This appraiser has performed services involving the subject property within the prior three years as an appraiser from the date of acceptance of this assignment.

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• No one other than the undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report. • The Appraisal Institute conducts a mandatory program of continuing education for its designated members. As of the date of this report, Benjamin Q. Johnson has completed the requirements under the continuing education program of the Appraisal Institute.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

Respectfully Submitted,
____________________________
Benjamin Q. Johnson, MAI
California Certified General Appraiser
License Number AG043925
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STANDARD ASSUMPTIONS AND LIMITING CONDITIONS
The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are contingent upon the following assumptions and limiting conditions.

LIMITS OF LIABILITY
This report was prepared by Johnson Valuation Group, Ltd. All opinions, recommendations, and conclusions expressed during the course of this assignment are rendered by the staff of Johnson Valuation Group, Ltd., as employees, not as individuals. The liability of Johnson Valuation Group, Ltd. and its employees and associates is limited to the client only and to the fee actually received by the appraisal firm. There is no accountability, obligation, or liability to any third party. If the appraisal report is disseminated to anyone other than the client, the client shall make such party or parties aware of all limiting conditions and assumptions affecting the appraisal assignment. Neither the appraisers nor the appraisal firm is in any way to be responsible for any costs incurred to discover or correct any physical, financial and/or legal deficiencies of any type present in the subject property. In the case of limited partnerships or syndication offerings or stock offerings in real estate, the client agrees that in the event of a lawsuit brought by a lender, a partner or part owner in any form of ownership, a tenant or any other party, the client will hold the appraiser(s) and the appraisal firm completely harmless in such action with respect to any and all awards or settlements of any type in such lawsuits.

COPIES, PUBLICATION, DISTRIBUTION AND USE OF REPORT
Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for any purpose or any function other than its intended use, as stated in the body of the report. The appraisal fee represents compensation only for the analytical services provided by the appraiser(s). The appraisal report remains the property of the appraisal firm, though it may be used by the client in accord with these assumptions and limiting conditions.

This appraisal is to be used only in its entirety, and no part is to be used without the whole report. All conclusions and opinions concerning the analysis as set forth in the report were prepared by the appraiser(s) whose signature(s) appears on the appraisal report, unless it is indicated that one or more of the appraisers was acting as "Review Appraiser." No change of any item in the report shall be made by anyone other than the appraiser(s). The appraiser(s) and the appraisal firm shall bear no responsibility for any such unauthorized changes.

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CONFIDENTIALITY
Except as provided for subsequently, neither the appraiser(s) nor the appraisal firm may divulge the analyses, opinions or conclusions developed in the appraisal report, nor may they give a copy of the report to anyone other than the client or his designee as specified in writing. However, this condition does not apply to any requests made by the Appraisal Institute for purposes of confidential ethics enforcement. Also, this condition does not apply to any order or request issued by a court of law or any other body with the power of subpoena.

INFORMATION SUPPLIED BY OTHERS
Information (including projections of income and expenses) provided by informed local sources, such as government agencies, financial institutions, Realtors, buyers, sellers, property owners, bookkeepers, accountants, attorneys, and others is assumed to be true, correct and reliable. No responsibility for the accuracy of such information is assumed by the appraiser(s). Neither the appraiser(s) nor the appraisal firm is liable for any information or the work product provided by subcontractors. The client and others utilizing the appraisal report are advised that some of the individuals associated with Johnson Valuation Group, Ltd. are independent contractors and may sign the appraisal report in that capacity. The comparable data relied upon in this report has been confirmed with one or more parties familiar with the transaction or from affidavit or other sources thought reasonable. To the best of my judgment and knowledge, all such information is considered appropriate for inclusion. In some instances, an impractical and uneconomic expenditure of time would be required in attempting to furnish absolutely unimpeachable verification. The value conclusions set forth in the appraisal report are subject to the accuracy of said data. It is suggested that the client consider independent verification as a prerequisite to any transaction involving a sale, a lease or any other commitment of funds with respect to the subject property.

TESTIMONY, CONSULTATION, COMPLETION OF CONTRACT FOR APPRAISAL

SERVICE
The contract for each appraisal, consultation or analytical service is fulfilled and the total fee is payable upon completion of the report. The appraisers(s) or those assisting in the preparation of the report will not be asked or required to give testimony in court or in any other hearing as a result of having prepared the appraisal, either in full or in part, except under separate and special arrangements at an additional fee. If testimony or a deposition is required, the client shall be responsible for any additional time, fees and charges, regardless of the issuing party. Neither the appraiser(s) nor those assisting in the preparation of the report is required to engage in post- appraisal consultation with the client or other third parties, except under a separate and special arrangement and at an additional fee.

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EXHIBITS AND PHYSICAL DESCRIPTIONS
A survey of the property has not been made by the appraiser(s) and no responsibility is assumed in connection with such matters. Any maps, plats, or drawings reproduced and included in the report are there to assist the reader in visualizing the property and are not necessarily drawn to scale. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced or used apart from the report.

TITLE, LEGAL DESCRIPTIONS, AND OTHER LEGAL MATTERS
No responsibility is assumed by the appraiser(s) or the appraisal firm for matters legal in character or nature. No opinion is rendered as to the status of title to any property. The title is presumed to be good and merchantable. The property is appraised as if free and clear, unless otherwise stated in the appraisal report. The legal description, as furnished by the client, his designee or as derived by the appraiser(s), is assumed to be correct as reported. The appraisal is not to be construed as giving advice concerning liens, title status, or legal marketability of the subject property.

ENGINEERING, STRUCTURAL, MECHANICAL, ARCHITECTURAL CONDITIONS This appraisal should not be construed as a report on the physical items that are a part of any property described in the appraisal report. Although the appraisal may contain information about these physical items (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed report on these physical items. The appraiser(s) is not a construction, engineering, or architectural expert, and any opinion given on these matters in this report should be considered tentative in nature and is subject to modification upon receipt of additional information from appropriate experts. The client is advised to seek appropriate expert opinion before committing any funds to the property described in the appraisal report.

Any statement in the appraisal regarding the observed condition of the foundation, roof, exterior walls, interior walls, floors, heating system, plumbing, insulation, electrical service, all mechanicals, and all matters relating to construction is based on a casual inspection only. Unless otherwise noted in the appraisal report, no detailed inspection was made. For instance, the appraiser is not an expert on heating systems, and no attempt was made to inspect the interior of the furnace. The structures were not investigated for building code violations, and it is assumed that all buildings meet the applicable building code requirements unless stated otherwise in the report.

Such items as conditions behind walls, above ceilings, behind locked doors, under the floor, or under the ground are not exposed to casual view and, therefore, were not inspected, unless specifically so stated in the appraisal. The existence of insulation, if any is mentioned, Draft -For Discussion Purposes Only
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was discovered through conversations with others and/or circumstantial evidence. Since it is not exposed to view, the accuracy of any statements regarding insulation cannot be guaranteed.

Because no detailed inspection was made, and because such knowledge goes beyond the scope of this appraisal, any comments on observed conditions given in this appraisal report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is given as to the adequacy or condition of the foundation, roof, exterior walls, interior walls, floors, heating systems, air conditioning systems, plumbing, electrical service, insulation, or any other detailed construction matters. If any interested party is concerned about the existence, condition, or adequacy of any particular item, we would strongly suggest that a mechanical and/or structural inspection be made by a qualified and licensed contractor, a civil or structural engineer, an architect or other experts. This appraisal report is based on the assumption that there are no hidden, unapparent or apparent conditions on the property or improvements which would materially alter the value as reported. No responsibility is assumed for any such conditions or for any expertise or engineering to discover them. All mechanical components are assumed to be in operable condition and standard for the properties of the subject type.

Conditions of heating, cooling, ventilating, electrical and plumbing equipment are considered to be commensurate with the condition of the balance of the improvements unless otherwise stated.

No judgment is made in the appraisal as to the adequacy of insulation, the type of insulation, or the energy efficiency of the improvements or equipment which is assumed to be standard for the subject's age, type and condition.

TOXIC MATERIALS AND HAZARDS
Unless otherwise stated in the appraisal report, no attempt has been made to identify or report the presence of any potentially toxic materials and/or condition such as asbestos, urea formaldehyde foam insulation, PCBs, any form of toxic waste, polychlorinated biphenyl, pesticides, lead-based paints or soils or ground water contamination on any land or improvements described in the appraisal report. Before committing funds to any property, it is strongly advised that appropriate experts be employed to inspect both land and improvements for the existence of such potentially toxic materials and/or conditions. If any potentially toxic materials and/or conditions are present on the property, the value of the property may be adversely affected and a reappraisal at an additional cost may be necessary to estimate the effects of such circumstances.

SOILS, SUB-SOILS, AND POTENTIAL HAZARDS
It is assumed that there are no hidden or unapparent conditions of the soils or subsoil which would render the subject property more or less valuable than reported in the appraisal. No engineering or percolation tests were made and no liability is assumed for soil conditions. Unless otherwise noted, the land and the soil in the area being appraised appeared to be firm, but no investigation has been made to determine whether or not any Draft -For Discussion Purposes Only
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detrimental sub-soil conditions exist. Neither the appraiser(s) nor the appraisal firm is liable for any problems arising from soil conditions. These appraisers strongly advise that, before any funds are committed to a property, the advice of appropriate experts be sought.

If the appraiser(s) has not been supplied with a termite inspection report, survey or occupancy permit, no responsibility is assumed and no representation is made for any costs associated with obtaining same or for any deficiencies discovered before or after they are obtained.

Neither the appraiser(s) nor the appraisal firm assumes responsibility for any costs or for any consequences arising from the need or lack of need for flood hazard insurance.

An Agent for the Federal Flood Insurance Program should be contacted to determine the actual need for flood hazard insurance.

ARCHEOLOGICAL SIGNIFICANCE
No investigation has been made by the appraiser and no information has been provided to the appraiser regarding potential archeological significance of the subject property or any portion thereof. This report assumes no portion of the subject property has archeological significance.

LEGALITY OF USE
This appraisal report assumes that there is full compliance with all applicable federal, state and local environmental regulations and laws, unless non-compliance is stated, defined and considered in the appraisal report. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been stated, defined and considered in the appraisal report. It is assumed that all required licenses, consents, or other legislative or administrative authority from any local, state or national government, private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

COMPONENT VALUES
Any distribution of the total value between the land and improvements, between partial ownership interests or any other partition of total value applies only under the stated use.

Moreover, separate allocations between components are not valid if this report is used in conjunction with any other analysis.

COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The Americans with Disabilities Act ("ADA") became effective January 26, 1992. It is assumed that the property is in direct compliance with the various detailed requirements of the ADA.

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AUXILIARY AND RELATED STUDIES
No environmental or impact studies, special market studies or analyses, special highest and best use studies or feasibility studies have been requested or made by the appraiser(s) unless otherwise specified in an agreement for services and so stated in the appraisal report.

DOLLAR VALUES AND PURCHASING POWER
The estimated market value set forth in the appraisal report and any cost figures utilized are applicable only as of the date of valuation of the appraisal report. All dollar amounts are based on the purchasing power and price of the dollar as of the date of value estimates.

ROUNDING
Some figures presented in this report were generated using computer models that make calculations based on numbers carried out to three or more decimal places. In the interest of simplicity, most numbers have been rounded. Thus, these figures may be subject to small rounding errors.

QUANTITATIVE ANALYSIS
Although this analysis employs various mathematical calculations to provide value indications, the final estimate is subjective and may be influenced by my experience and other factors not specifically set forth in this report.

VALUE CHANGE, DYNAMIC MARKET, ALTERATION OF ESTIMATE BY

APPRAISER
All values shown in the appraisal report are projections based on my analysis as of the date of valuation of the appraisal. These values may not be valid in other time periods or as conditions change. Projected mathematical models set forth in the appraisal are based on estimates and assumptions which are inherently subject to uncertainty and variations related to exposure, time, promotional effort, terms, motivation, and other conditions. The appraiser(s) does not represent these models as indicative of results that will actually be achieved. The value estimates consider the productivity and relative attractiveness of a property only as of the date of valuation set forth in the report.

In cases of appraisals involving the capitalization of income benefits, the estimate of market value, investment value or value in use is a reflection of such benefits and of the appraiser's interpretation of income, yields and other factors derived from general and specific client and market information. Such estimates are as of the date of valuation of the report, and are subject to change as market conditions change.

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This appraisal is an estimate of value based on analysis of information known to us at the time the appraisal was made. The appraiser(s) does not assume any responsibility for incorrect analysis because of incorrect or incomplete information. If new information of significance comes to light, the value given in this report is subject to change without notice. The appraisal report itself and the value estimates set forth therein are subject to change if either the physical or legal entity or the terms of financing are different from what is set forth in the report.

ECONOMIC AND SOCIAL TRENDS
The appraiser assumes no responsibility for economic, physical or demographic factors which may affect or alter the opinions in this report if said economic, physical or demographic factors were not present as of the date of value of this appraisal. The appraiser is not obligated to predict future political, economic or social trends.

EXCLUSIONS
Furnishings, equipment, other personal property and value associated with a specific business operation are excluded from the value estimate set forth in the report unless otherwise indicated. Only the real estate is included in the value estimates set forth in the report unless otherwise stated.

SUBSURFACE RIGHTS
No opinion is expressed as to the value of subsurface oil, gas or mineral rights or whether the property is subject to surface entry for the exploration or removal of such materials, except as is expressly stated.

PROPOSED IMPROVEMENTS, CONDITIONED VALUE
It is assumed in the appraisal report that all proposed improvements and/or repairs, either on-site or off-site, are completed in an excellent workmanlike manner in accord with plans, specifications or other information supplied to these appraisers and set forth in the appraisal report, unless otherwise explicitly stated in the appraisal. In the case of proposed construction, the appraisal is subject to change upon inspection of the property after construction is completed. The estimate of market value is as of the date specified in the report. Unless otherwise stated, the assumption is made that all improvements and/or repairs have been completed according to the plans and that the property is operating at levels projected in the report.

MANAGEMENT OF PROPERTY
It is assumed that the property which is the subject of the appraisal report will be under typically prudent and competent management which is neither inefficient nor superefficient.

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FEE
The fee for any appraisal report, consultation, feasibility or other study is for services rendered and, unless otherwise stated in the service agreement, is not solely based upon the time spent on any assignment.

LEGAL EXPENSES
Any legal expenses incurred in defending or representing ourselves concerning this assignment will be the responsibility of the client.

CHANGES AND MODIFICATIONS
The appraiser(s) reserves the right, at the cost of the client, to alter statements, analyses, conclusions, or any value estimates in the appraisal if any new facts pertinent to the appraisal process are discovered which were unknown on the date of valuation of this report.

DISSEMINATION OF MATERIAL
Neither all nor any part of the contents of this report shall be disseminated to the general public through advertising or sales media, public relations media, new media or other public means of communication without the prior written consent and approval of the appraiser(s).

The acceptance and/or use of the Appraisal Report by the client or any third party constitutes acceptance of the Assumptions and Limiting Conditions set forth in the preceding paragraphs. The appraiser’s liability extends only to the specified client, not to subsequent parties or users. The appraiser’s liability is limited to the amount of the fee received for the services rendered.

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QUALIFICATIONS OF APPRAISER
BENJAMIN Q. JOHNSON
Professional Designations
MAI – Designated Member of the Appraisal Institute
State Licensing and Certification
Certified General Appraiser – State of California
License Number AG043925
(Certified through April 29, 2024)

Certified General Appraiser – State of Nevada
License Number A.0205542-CG
(Certified through November 30, 2024)
Professional Experience
Johnson Valuation Group, Ltd. 2015 to Present

Johnson-Perkins & Associates, Inc.

Principal Appraiser 2009 to 2015
Senior Appraiser 2008 to 2009
Intern Appraiser 2006 to 2008
Research Assistant 2005 to 2006
General Electric 2002-2004
Finance Intern (Summers Only)
Formal Education
Santa Clara University – Santa Clara, CA 2005
Bachelor of Science in Commerce; Major in Economics
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Page 22 ends

23-003

QUALIFICATIONS OF
BENJAMIN Q. JOHNSON, (CONTINUED)
Qualified as an Expert Witness
Second Judicial District Court – State of Nevada
Third Judicial District Court – State of Nevada
Ninth Judicial District Court – State of Nevada
Superior Court of California, County of El Dorado
U.S. Bankruptcy Court, District of Nevada
U.S. Bankruptcy Court, Northern District of California
Offices Held and Appointments
Nevada State Board of Equalization
Board Member 2012 to 2022
Chairman 2019 to 2022

Tahoe Regional Planning Agency
Land Use Commodities Market Steering Committee 2014
Appraisal Institute
Reno-Carson-Tahoe Chapter
Director 2011
Secretary 2012
Vice-President 2013
President 2014
Treasurer 2015
Chair of Candidate Guidance Committee 2013 to 2015
Nevada Chapter
Northern Nevada Branch Chapter Vice Chair 2017
Region 1
Nominating Committee 2015 to 2018

Eagle Scout Board of Review, Board Member 2016 to Present Association Memberships and Affiliations
Leadership Development and Advisory Council (LDAC) 2010 Executives Association of Reno (EAR) 2009 to 2012
Tahoe Regional Young Professionals (TRYP) 2015 to 2016

Draft -For Discussion Purposes Only
3/8/2024
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Resolution 2024-XXX June 4,2024 Page 1 of 3
.

Resolution 2024-XXX
Adopted by the City of South Lake Tahoe
City Council
June 4, 2024
Accepting the development rights appraisal prepared by Ben Q. Johnson, Johnson Valuation Group Limited, and establish a price point for each development right category, pursuant to City Council Resolution 2023-051

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

B. On June 6, 2023, the City Council adopted Resolution 2023-051, which provided for a consistent and equitable disposition process, promoted the achievement of the City’s affordable housing and community development goals, and provided certainty for the development community. The adopted resolution 1) established an annual determination for the fair market value of the development rights and land coverage.

C. The Development Services Department contracted with Ben Q. Johnson (Valuation Group Limited) a California licensed appraiser, to analyze the sale of each development right/ D. Ben Q. Johnson prepared a revised appraisal dated March 8, 2024 for consideration by the City Council.

E. The appraisal describes the methodology used in determining the value of each development right category, and includes a recommended fair market value for each right.

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

1. Accepts the development rights appraisal dated March 8, 2024, prepared by Ben Q.

Johnson, Johnson Valuation Group Limited and the recommended rates.

2. Establishes the price point for each development right by applying a factor of one-third to the recommended rates included in the appraisal and as shown in Exhibit 1 of this resolution.

3. This resolution is effective immediately upon adoption. //
//
//
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Resolution 2024-XXX June 4,2024 Page 2 of 3
Adopted by the City of South Lake Tahoe City Council on June 4, 2024 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Cody Bass, Mayor
Attest:
________________________
Susan Blankenship, Elected City Clerk
The presence of an electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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Resolution 2024-XXX June 4,2024 Page 3 of 3
Exhibit 1
Development Right Market Value Per Unit Based
on Typical Retail Quantity
Price Point Based on
City Council policy*
Land Coverage 1B $30/Sq. Ft. $9.99/Sq. Ft.

Land Coverage 4-7 (Potential)
South Stateline HRA
Upper Truckee HRA
$7.50/Sq. Ft.
$7.50/Sq. Ft.
$2.50/Sq. Ft.
$2.50/Sq. Ft.

Land Coverage 4-7 (Hard) $25/Sq. Ft. $8.33/Sq. Ft.

Commercial Floor Area $22.50/Sq. Ft. $7.42/Sq. Ft.

Potential Residential Units of
Use
$5,000/Unit $1,666/Unit
Residential Units of Use $28,750/Unit $9,487/Unit
Tourist Accommodation Units
(City Owned)
$25,000/Unit $8,250/Unit
Tourist Accommodation Units
(Successor Agency)
$25,000/Unit $25,000/Unit
*Successor Agency
commodities are to be
sold at market rate.
1261
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: June 4, 2024
Agenda Item #:21
Agenda Item: Agenda Planning Calendar
Executive Summary: The attached Agenda Planning Calendar outlines a preliminary schedule for future City Council meeting agenda items.

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: Joe Irvin, City Manager and Susan Blankenship, City Clerk Attachments:

APC - 05 30 2024.pdf
1262
2024 Agenda Planning Calendar (Updated 05 31 2024)
Agenda Item Agenda Section
June 18, 5:30 p.m.City Attorney Ordinance Amending City Code Ch. 4.150 for 3-cart transition (second readConsent *CC/STRSA
STJPPFA EC 9212 Vacancy Tax Citizens Initiative Report UB City Clerk Resolution Calling for Consolidated Election - Candidates & Measures Consent City Manager Cannabis Revenue Grant Program Award Recommendations UB Water Bottle Ban Presentation - Darby Creegan Presentation Website Redesign NB
EV Charging Vendor Services Consent
Ski Run Park Acceptance Consent
Dev. Services TCAP/TVAP Amendment Adoptions PH
TAU Discussion NB
STR Delinquent Fees Report PH
Finance Direct Charge of Mello-Roos Special Tax for CFD 1995-1 for FY 24-25 Consent Annual Special Tax for CFD 2001-1 Series 2015 Refunding Bonds for FY 2STRSA Consent Amendment to American Rescue Plan Act of 2021 Funding Appropriations Consent Fire Defensible Space Ordinance (second Reading) Consent Department
1263
2024 Agenda Planning Calendar (Updated 05 31 2024)
HR Citywide Salary Schedule Consent
Public Works Award for Inspection & Materials Testing Services Consent Award Stateline Complete Streets Planning & Design Consent Award Airport Pavement Rehab Contract Consent
Accept FAA Award for Pavement Rehab Consent
Annual SB 1 Gas Tax Measure Resolution Consent
Award Bellamy Parking Garage PARCS & PGS Consent
Aug 13, 9 a.m. City Mngr. Resolution Authorizing Transportation Development Act Claim Consent Award of On-Call Electrical/Structural Engineering Consent Real Estate and Economic Development Services PSA NB
Establishing an EV Charging Rate for the City's Public EV Chargers Consent Transit JPA Update UB
EV Charging Parking Ordinance (First Reading) NB
National Community Survey Results NB
Dev Services Quarterly Housing Report Consent
Mid-Town Policy Input UB
1264
2024 Agenda Planning Calendar (Updated 05 31 2024)
Finance Financial Policies Update Consent
Parks & Rec El Dorado Boat Ramp Lease Agreement Consent Rec Center Donation Naming Rights Agreement NB
Public Works Airport Master Plan Presentation NB
2024-25 CIP Recommendations NB
Airport Restaurant Lease Agreement NB
Award Upper Bijou Creek Drainage Project Consent
Award of Pioneer Safety HSIP Project Consent
Award High Priority Pipe Replacement Project Consent
TRPA and Rec Facilities JPA Funding for the Bijou Park Connector Consent Award of Tahoe Valley Greenbelt Phase 2 Consent
Award of PSA for Dennis Machida Greenway Consent
Aug 27, 9 a.m. *Budget Workshop
City Manager EV Charging Parking Ordinance (Second Reading) Consent Public Works Award of Bellamy Parking Garage Phase 2 Consent Award of PD Roof Repair Consent
1265
2024 Agenda Planning Calendar (Updated 05 31 2024)
Sept. 10, 9 a.m. City Manager Barton Community Health Needs and Harm Reduction Update Presentation SSTMA Agreement for Microtransit UB
Dev Services Review of Employee Housing Public and Business Outreach Campaign UB City/CTC land exchange agreement Consent
Annual Homelessness Report NB
Employee Housing Signage Ordinance PH
Finance Investment Policy update Consent
Public Works Award Lakeview and Ski Run Electrical Upgrades Consent Award Pioneer Trail Phase II Project Consent
Award James-Eloise Drainage Upgrade Consent
Sept. 24, 5:30 p.m City Clerk City Council Compensation Ordinance (First Reading) NB Conflict of Interest Code Update Consent
Dev Services Disparate Impact Analysis Findings about Local Preference Ordinance UB Discussion: Second Home Cap/Permit Options NB
Finance Quarterly Budget and Financial Status Report as of June 2024 Consent Investment Portfolio Report as of June 2024 Consent
1266
2024 Agenda Planning Calendar (Updated 05 31 2024)
Oct. 22, 5:30 p.m. City Clerk City Council Compensation Ordinance (Second Reading) Consent Finance GAAN Limit Consent
Fiscal Year 2023-2024 Budgeted Funds Re-appropriation Consent Nov. 5, 9 a.m. TID Annual Report NB
Dev. Services Radon Presentation by Jeff Minor
One-Year Results of Inclusionary Housing Ordinance
Nov. 19, 5:30 p.m. Finance Annual ROPS approval STRSA Consent STRSA
Dec. 10, 5:30 p.m. City Clerk Certification of Election Oaths of Office
City Council Re-Organization
Quarterly Budget and Financial Status Report as of September 2024 Consent Investment Portfolio Report as of September 2024 Consent City Clerk Records Management Policy (Updated) 1/2025
City Manager Comprehensive Energy Services Contract
Municipalization of Electric Utility - Feasability Analysis Unscheduled/Pending
1267
2024 Agenda Planning Calendar (Updated 05 31 2024)
Dev Services REACH Code Adoption
Res. Area Plan to Accommodate SB9 and Remove Tourist Accomodation Building Code Appendix AW adoption-3D printed structures Finance Disolution STJPPFA
Public Works Hwy 50/89 Concrete/Pavement Option
TTD US 50 Plans Presentation
1268

South Lake Tahoe City CouncilJune 4, 2024

South Lake Tahoe City Council
June 4, 2024