Agenda packet, first session — South Lake Tahoe City Council, September 10, 2024 (part 2 of 3)

4227660.1
Project (“TVSGI Project”). If any SEP funds remain after final excavation construction is complete, these funds will be utilized for construction of additional infrastructure necessary to connect the Barton Basin to the remaining TVSGI Project. The suspended penalty will be considered permanently suspended after the Barton Basin is excavated and connected to the TVSGI Project and approved by the Lahontan Water Board.

NOW, THEREFORE, for good and valuable consideration through the execution of this Agreement and the releases, satisfactions, and promises made herein, the Parties hereby agree as follows:

TERMS AND CONDITIONS

1. Parties Bound By This Agreement. This Agreement, and each of its provisions, including all representations, warranties, and promises contained herein, binds, and inures to the benefit of the Deacon and the City and each of their respective successors in interest, whether by merger, consolidation, or amalgamation, as well as their respective representatives, agents, members, officers, and administrators, past, present, and future. The Parties expressly agree and acknowledge that there are no third-party beneficiaries to this Agreement, nor do the Parties intend for there to be any third-party beneficiaries to this Agreement.

2. Term of Agreement. The “Effective Date” of this Agreement is the later of (i) last date on which the signature of a Party to this Agreement is executed, or (ii) the date the Stipulated Order becomes effective. The “Termination Date” shall be upon the Lahontan Water Board’s acceptance of the SEP Completion Certification required under Section 4.d. below, evidenced by Lahontan Water Board’s issuance of a “Satisfaction of Order” under Paragraph 17 of the Stipulated Order.

3. Actions Required by Deacon. In exchange for the delivery, execution, and performance of this Agreement, Deacon shall provide funding in the SEP Amount of seventy-five thousand dollars ($75,000) to the City for the sole use of funding the Barton Basin SEP. Said payment to the City shall be made by the Permittees in the form of a certified or cashier’s check made payable to “City of South Lake Tahoe” within thirty (30) calendar days after the City approves and executes this agreement, and forwarded by overnight mail with tracking to the address listed below:

City of South Lake Tahoe
1740 D St.

South Lake Tahoe, CA 96150
c/o Jason Burke, Complete Streets Program Manager

4. Actions Required by the City.
a. Meeting SEP Timeline. The City shall use good faith efforts to complete excavation and construction of the Barton Basin within thirty-six (36) months of the Stipulated Order becoming effective (“SEP Completion Date”). Phase 2 of the TVSGI Project, including the SEP Project, is currently estimated to occur in the Summer 2025 field season. 279
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b. Reporting Schedule. The City must submit Quarterly reports to the Lahontan Water Board’s Enforcement Coordinator with copies sent to Deacon. The first report must be submitted on November 1, 2024 and will cover the period of July 1 to September 30, 2024. Reports must be submitted each quarter in each year in accordance with the schedule below until the SEP Project is completed:

Reporting Period Report Submittal Due Date
January - March May 1
April - June August 1
July - September November 1
October - December February 1
c. Report Contents. The Quarterly Reports must comply with Paragraph 8(a) of the Stipulated Order, including by describing the tasks completed and funds expended during the previous quarter, and proposed work for the following quarter. In addition, the Quarterly Reports must describe whether the milestones and deadlines contained in Attachment B have been met, and if not, the cause(s) of the delay(s) and the anticipated date of compliance with this Stipulated Order. The Quarterly Reports may also include descriptions and photos of activities completed during the previous quarter and an analysis of the Barton Basin SEP’s progress. Quarterly reports shall be submitted to Shelby Barker at [email protected].
d. SEP Completion Certification. No later than four months after the SEP Completion Date, the City must submit a final report that satisfies Paragraph 8(b) of the Stipulated Order, which requires documentation of completion of the SEP and provides a certified statement (SEP Completion Certification), signed under penalty of perjury, that documents the following:
i. Certification of completion in accordance with the terms of the Stipulated Order’s SEP requirements, addressing how the expected outcome(s) for the Barton Basin SEP project were met,
ii. Certification documenting the expenditures by the City during the completion period for the Barton Basin SEP, and
iii. Certification that the City of South Lake Tahoe followed all applicable environmental laws and regulations in implementing the SEP, including the California Environmental Quality Act, Porter-Cologne Water Quality Control Act, and federal Clean Water Act.

Documentation of SEP completion may include photographs, invoices, receipts, certifications, and other materials reasonably necessary for the Lahontan Water Board to evaluate completion of the SEP and the costs incurred. e. Site Inspections. The City shall permit Lahontan Water Board staff to inspect the Barton Basin SEP implementation locations during normal business hours as well as 280
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review any documents associated with Barton Basin SEP implementation at any time without notice.
f. Request for Extension of Completion Date: If the City, as SEP Recipient, cannot complete the Barton Basin SEP by the SEP Completion Date due to circumstances beyond its or its agents’ control and which could not have been reasonably foreseen and prevented or minimized by the exercise of due diligence, the City shall notify the Executive Officer and the Permittees in writing within thirty (30) days of the date that the City first knew of the event or circumstance that caused or would cause the City to be unable to complete the Barton Basin SEP by the SEP Completion Date. The notice shall describe the reason for the delay and specifically refer to Paragraph 14 of the Stipulated Order.

The notice shall describe the anticipated length of time the delay may persist, the cause or causes of the delay, the measures taken or to be taken to minimize the delay, the schedule by which the measures will be implemented, and the anticipated date of completion. The City shall adopt all reasonable measures to avoid and minimize such delays. Extensions shall be approved as described in the Paragraph 14 of the Stipulated Order.

5. Breach of Payment. If any payment owed under this Agreement is not remitted on or before its due date, the City shall provide written notice to Deacon in accordance with Section 8 herein. If Deacon fails to pay within ten (10) business days of such notice, then interest shall accrue starting the first day after the payment is due per Section 3, computed at 10% per year, and the City shall notify the Lahontan Water Board of the situation.

6. Failure to Expend All Suspended Funds or Complete the Approved SEP. If the Permittees become liable to pay back any portion of the SEP Amount to the Lahontan Water Board under Paragraph 15 of the Stipulated Order, the City agrees to reimburse Deacon such amount within ten (10) business days of the Lahontan Water Board’s determination of the suspended liability amount.

7. No Admission. This Agreement shall not, for any purpose, be considered as an admission of liability or of any violation of the General Permit, the Clean Water Act or applicable California law by Deacon or any other party, nor shall the payment of any sum of money in consideration for the execution of this Agreement constitute or be construed as an admission of liability or of any violation of the General Permit, the Clean Water Act or applicable California law by Deacon or any other party, and such alleged liability, and any alleged wrongdoing is expressly denied.

8. Notices. All notices, consents, approvals, requests, demands and other communications (collectively, “Notices”) which the Parties are required or desire to serve upon or deliver to the other Party shall be in writing and shall be given by nationally recognized overnight courier (USPS, FedEx or UPS); by certified United States mail, or by electronic mail, addressed as set forth below:

If to the City:
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City of South Lake Tahoe
1740 D St.

South Lake Tahoe, CA 96150
Jason Burke, Complete Streets Program Manager
(530) 542-6038
[email protected]
and
Brianna Greenlaw, Associate Civil Engineer
(530) 542-6042
[email protected]
with a copy to:

City Attorney
1901 Lisa Maloff Way, Suite 300
South Lake Tahoe, CA 96150
(530) 542-6046
[email protected]
If to Deacon Construction, LLC:

Brett Mykrantz
Deacon Construction, LLC
745 Greenback Ln, Ste 250
Citrus Heights, CA, 95610
(916) 417-9138
[email protected]
and to:

Melissa Thorme
Downey Brand LLP
621 Capitol Mall, 18th Fl.

Sacramento, CA 95814
Telephone: 916-520-5376
Email: [email protected]
The foregoing addresses may be changed by Notices given in accordance with this Section.

Any Notices sent by mail shall be deemed received two (2) calendar days after the date of mailing. Any Notices sent by electronic mail shall be deemed received upon electronic transmission thereof provided sender does not receive electronic notice of non-delivery. Any Notices sent by overnight courier service shall be deemed received on the day of actual delivery as shown by the confirmation of delivery by the messenger or courier service. If the date of receipt of any Notices to be given hereunder falls on a weekend or legal holiday, then 282
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such date of receipt shall automatically be deemed extended to the next business day immediately following such weekend or holiday for purposes of calculating time periods commencing upon the date of service.

9. Attorney Fees. Each Party shall bear its own attorney fees and costs relating to the negotiation, subject matter, and execution of this Agreement.

10. Parties’ Acknowledgment of Terms. Each Party hereby represents that it has carefully and fully read and reviewed this Agreement and that it has had an opportunity to consult with its respective counsel, and hereby represents that the contents of this Agreement are understood and accepted. The Parties acknowledge they have negotiated this Agreement and agree that the terms shall not be construed against the Party preparing it, but instead shall be construed as if the Parties jointly prepared this Agreement. Any uncertainty or ambiguity shall not be interpreted against any one Party.

11. Interpretation and Applicable Law. The language in all parts of this Agreement shall be construed according to its plain and ordinary meaning, and construed and interpreted in accordance with the laws of the State of California without regard to conflicts of law.

12. Assignment. Subject only to the express restrictions contained in this Agreement, all the rights, duties and obligations contained in this Agreement shall inure to the benefit or detriment of and be binding upon the Parties and their successors and assigns.

13. Counterparts. This Agreement may be executed in one or more identical counterparts, all of which together shall constitute one original agreement. Electronic, and/or facsimile copies of original signature shall be deemed to be originally executed counterparts of this Agreement.

14. Headings. The headings used in this Agreement are for convenience of reference and shall not be used to define any provision.

15. Entire Agreement In Writing. This is an integrated agreement. This Agreement constitutes the entire agreement between the Parties hereto with respect to the subject matter set forth herein and supersedes all previous or contemporaneous negotiations, commitments (oral or written), and writings with respect to the subject matter set forth herein.

16. Modification or Amendment. This Agreement and each of its provisions may be modified or amended only by express written agreement executed by all Parties to this Agreement.

17. Severability. If any term of this Agreement is to any extent illegal, otherwise invalid, or incapable of being enforced, such term shall be excluded to the extent of such invalidity or unenforceability; all other terms hereof shall remain in full force and effect; and, to the extent permitted and possible, the invalid or unenforceable term shall be deemed replaced by a term that is valid and enforceable and that comes closest to expressing the intention of such invalid or unenforceable term.
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18. Authority. Each of the persons signing this Agreement on behalf of a Party represents and warrants that he or she has actual authority and capacity to execute this Agreement on behalf of the entity and to bind it to all the terms of this Agreement.

19. Computing Time. In computing any period of time under this Agreement, where the last day of such period falls on a Saturday, Sunday, or Federal or State Holiday, the period runs through the close of business on the next calendar day that is not a Saturday, Sunday, or Federal or State Holiday.

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

DEACON CONSTRUCTION, LLC
By: _____________________________________ Dated: _________________, 2024 Brett Mykrantz
Vice President

CITY OF SOUTH LAKE TAHOE
By: __________________________________ Dated: _________________, 2024 Cody Bass, Mayor
APPROVED AS TO FORM:

By: __________________________________ Dated: _________________, 2024 Heather Stroud
City Attorney
By: __________________________________ Dated: ___May 22________, 2024 Melissa A. Thorme
Downey Brand LLP
Attorneys for Deacon Construction, LLC
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:10
Agenda Item: Tahoe Regional Planning Agency Stream Environment Zone (SEZ) and Water Quality Mitigation Funding for the Upper Bijou Park Creek Restoration Project Executive Summary: The Upper Bijou Park Creek Watershed Restoration Project (Project) is a watershed-scale project seeking to address water quality and flooding issues in a phased approach to provide treatment for urban runoff from roadways, commercial and residential areas in an approximately 850-acre watershed that discharges to Lake Tahoe via the Ski Run Marina. The City completed Phase 1 in 2018 with the redevelopment of the Knights Inn hotel, replacing the failing storm drainpipe with new stormwater treatment basins and conveyance system integrated into the new Whole Foods/Southwest Corner redevelopment project. The City is currently in Phase 2 of the project, focused on the large upper watershed area subject to historic flooding, development impacts in SEZ areas, and water quality issues.

The upper watershed project includes plans to restore Stream Environment Zone (SEZ) and floodplain areas, provide drainage solutions to support future active transportation improvements, and include distributed natural treatment systems to reduce sediment and nutrient loads in urban runoff that have the potential to impact Lake Tahoe. One piece of the upper watershed project is the Rockwood to Blackwood Drainage Improvements Project, which will reduce flooding on Woodbine Road, Rockwood Road, Blackwood Road, and in the Heavenly Valley Estates Mobile Home Park. On July 16, 2024, the Department of Public Works held a bid opening for the Rockwood to Blackwood Drainage Improvements Project. Only one bid was received that far exceeded the Cityâ€™s available budget for the Project construction. On August 13, 2024, the City Council rejected the bid and advised Staff to rebid the Project. In anticipation of re-releasing the Project for bidding, allocating TRPA Mitigation funds to this Project will assist in resulting in a successful award of a construction contract for 2025.

Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Director of Finance to appropriate $400,000 in TRPA Mitigation Funding to the Upper Bijou Park Creek Restoration Project.

Responsible Staff Member: Jason Burke, Complete Streets Program Manager and Brianna Greenlaw, Associate Civil Engineer
Reviewed and Approved By: Anush Nejad, Director of Public Works Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - TRPA SEZ Funding for Bijou Park Creek.docx 02-Resolution-TRPA Mitigation Funding for Bijou Park Creek 285
Council Agenda Report September 10, 2024 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Tahoe Regional Planning Agency Stream Environmental Zone and Water Quality Mitigation Funding for the Upper Bijou Park Creek Restoration Project Location: Bijou Park Creek Watershed, specifically Rockwood Drive to Blackwood Drive Responsible Staff Member: Jason Burke, Complete Streets Program Manager, Brianna Greenlaw, Associate Civil Engineer
Background: The Upper Bijou Park Creek Watershed Restoration Project (Project) is a watershed-scale project seeking to address water quality and flooding issues in a phased approach to provide treatment for urban runoff from roadways, commercial and residential areas in an approximately 850-acre watershed that discharges to Lake Tahoe via the Ski Run Marina. The city completed Phase 1 in 2018 with the redevelopment of the Knights Inn hotel, replacing the failing storm drainpipe with new stormwater treatment basins and conveyance system integrated into the new Wholefoods/Southwest Corner redevelopment project. The City is currently in Phase 2 of the project, focused on the large upper watershed area subject to historic flooding, development impacts in SEZ areas, and water quality issues. The upper watershed project includes plans to restore SEZ and floodplain areas, provide drainage solutions to support future active transportation improvements, and include distributed natural treatment systems to reduce sediment and nutrient loads in urban runoff that have the potential to impact Lake Tahoe. One piece of the upper watershed project is the Rockwood to Blackwood Drainage Improvements Project, which will reduce flooding on Woodbine Road, Rockwood Road, Blackwood Road, and in the Heavenly Valley Estates Mobile Home Park.

Issue and Discussion: TRPA collects permit fees from development applications throughout the Tahoe Basin. Development fees acquired on properties located within the city limits are available for use on City Environmental Improvement Program (EIP) projects which include the Upper Bijou Park Creek Restoration Project. The mitigation fees TRPA collects are intended to offset environmental impacts to Air Quality, Stream Environment Zone (SEZ), and Water Quality. The TRPA SEZ, Water Quality, and Water Quality Interest Mitigation Funds requested for the Project will fund Project construction. The TRPA Governing Board approved the mitigation fund release on August 28, 2024.

On July 16, 2024, the Department of Public Works held a bid opening for the Rockwood to Blackwood Drainage Improvements Project. Only one bid was received that far exceeded the City’s available budget for the Project construction. On August 13, 2024, the City Council rejected the bid and advised Staff to rebid the Project. In anticipation of re-releasing the Project for bidding, allocating these TRPA funds will assist in resulting in a successful award of a construction contract for 2025.

Financial Implications: Public Works recently requested the release of $189,374 of SEZ Mitigation Funds, $82,551 of Water Quality Mitigation Funds and $128,075 of Water Quality Interest Mitigation Funds.

At their August Governing Board meeting, TRPA approved the City’s request for the release of TRPA Mitigation Funding in the sums listed in Table 1.
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Table 1 – TRPA Mitigation Funding
Mitigation Account Description Amount
Water Quality Unspent Construction Budget Release $82,551.00 Water Quality Interest Unspent Construction Budget Release $128,075.00 SEZ Unspent Construction Budget Release $189,374.00
Total Funding Release Request: $400,000.00
(Approved by the TRPA Governing Board August 28, 2024)
Environmental Considerations: After completing all public noticing and review period required by relevant state laws, the Planning Commission adopted the CEQA Initial Study/Mitigated Negative Declaration for the Project on November 19, 2020 (SCH # 202090564). Addendum No. 1 was completed April 23, 2024 to document minor changes for staging and access, and other minor adjustments to the footprint of the channel improvements and drainage designs. On May 16, 2024, the Planning Commission adopted an addendum to the CEQA Initial Study/Mitigated Negative Declaration for the Project.

Policy Implications: The Project is consistent with City Council Strategic Policies and Goals, specifically:
 Action Item 5.3 (Infrastructure and Maintenance) by developing sustainable infrastructure projects, based on the prioritized capital improvement project list.  Action Item 5.5 (Fiscal Sustainability, Resiliency & Transparency) by utilizing grant funding to implement this important drainage project.
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Resolution 2024-XXX
Adopted by City of South Lake Tahoe City Council
September 10, 2024
Accepting and Appropriating Tahoe Regional Planning Agency (TRPA) SEZ and Water Quality Mitigation Funding for Upper Bijou Park Creek Restoration Project
BACKGROUND:

A. The City of South Lake Tahoe (City) is engaged in a collaborative interagency partnership to meet the Tahoe Regional Planning Agency thresholds and address water quality and flooding issues in the Bijou Park Creek Watershed.

B. The Project (EIP# 01.01.01.0184) is included on the priority list for watershed and water quality improvement projects within the Lake Tahoe basin.

C. The Department of Public Works requested TRPA release $82,551.00 in TRPA Water Quality Mitigation Funds and authorize those funds for constructionrelated costs of the Project.

D. The Department of Public Works requested TRPA release $128,075.00 in TRPA Water Quality Interest Mitigation Funds and authorize those funds for construction-related costs of the Project.

E. The Department of Public Works requested TRPA release $189,374.00 in TRPA SEZ Mitigation Funds and authorize those funds for construction-related costs of the Project.

F. At the August TRPA Governing Board meeting, the City’s request to release and authorize TRPA Mitigation Funds as described in items C, D, and E herein, were approved.

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

1. Authorizes the acceptance of $82,551 in TRPA Water Quality Mitigation Funding, $128,075 in TRPA Water Quality Interest Mitigation Funding, and $189,374 in SEZ Mitigation Funding for the Upper Bijou Park Creek Restoration Project.

2. Authorizes the Director of Finance to appropriate the accepted funding to the following Project accounts.
301-40051 Revenue (33312) TRPA Water Quality Mitigation Funds (+) $82,551.00 301-40051 Revenue (33324) TRPA Water Quality Interest Mitigation Funds (+) $128,075.00 301-40051 Revenue (33323) TRPA SEZ Mitigation Funds (+) $189,374.00 301-40051 Expenditure (48030) Upper Bijou Park Creek, Construction (+) $400,000.00 288
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Adopted by the City Council of the City of South Lake Tahoe on September 10, 2024 by the following vote:

Yes:

No:

Absent:

Abstain:
_______________________ 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
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:11
Agenda Item: Community Development Block Grant Program Coronavirus Response Allocation of Remaining Funding for Tahoe Coalition for the Homeless Bears Den Inn Rehabilitation Executive Summary: On November 15, 2023, the California Department of Housing and Community Development (HCD) informed current CDBG-CV grantees that a small amount of unclaimed funding is available for construction projects that have experienced unanticipated cost increases that can be substantiated and documented. On January 9, 2024, City Council approved Resolutions 2024-005 and 2024-020 approving an amendment to the Standard Agreement issued under the 2020 Community Development Block Grant Program Coronavirus Response (CDBG-CV) to request additional funding.

The amounts were changed by HCD of up to a twice. However, on January 8th, staff received an email that HCD changed the stipulations to allow current CDBG-CV 2/3 construction project grantees to request all funding needed to fill project gaps with no maximum award. On August 8th, the City was notified by HCD to include a 10% contingency line item to allow for any increases in costs or unanticipated construction needs that arise in the project, therefore, increasing the grant amount allowed in Resolution 2024-020. This action is consistent with the updated HCD stipulations and increases the potential funding to be provided to TCH through the subrecipient agreement.

Requested Action / Suggested Motions: Pass a Resolution authorizing an amendment to the Standard Agreement issued under the 2020 Community Development Block Grant Program Coronavirus Response (CDBG-CV) for allocation of remaining funding for Tahoe Coalition for the Homeless Bears Den Inn Rehabilitation.

Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Reviewed and Approved By: Zach Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report-CDGB Bears Den Inn Rehabilitation.docx
02-Resolution_CDBG-CV_Remaining Funding.docx
03-January 09 2024 Staff Report.pdf
04-February 13 2024 Staff Report.pdf
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City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Community Development Block Grant Program Coronavirus Response Allocation of Remaining Funding for Tahoe Coalition for the Homeless Bears Den Inn Rehabilitation Location: 2250 Lake Tahoe Blvd (Bear’s Den Inn)
Responsible Staff Members: Jessica Wackenhut Lomeli, Housing Manager Background: The California Department of Housing and Community Development (HCD) receives funding from the United States Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) Program and allocates funds to CDBG eligible non-entitlement jurisdictions (such as City of South Lake Tahoe). Authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, approximately $71.2 million in CDBG coronavirus response rounds 2 and 3 (CDBG-CV 2/3) federal funds has been allocated to eligible jurisdictions in California to perform activities related to COVID-19 response and recovery.

On April 20, 2021 the City Council adopted Resolution 2021-021 authorizing an application for CDBG CV 2/3 funding in the amount of $505,632 for rehabilitation work on the Bears Den Inn Property (2250 Lake Tahoe Blvd) and to execute the Standard Agreement. The Bears Den Inn property was purchased by the Tahoe Coalition for the Homeless (TCH) with State of California Project Homekey Program funds to provide housing for persons experiencing or at risk of homelessness. Subsequently, the City Council adoption of Resolution 2022-003 on January 4, 2022, authorizing the Subrecipient Agreement with Tahoe Coalition for the Homeless to administer funding and execute the scope of work for rehabilitation of the Bears Den Inn property (2250 Lake Tahoe Blvd). On June 20, 2023, Amendment Number 1 was made to the Subrecipient Agreement between the City of South Lake Tahoe and Tahoe Coalition for the Homeless to extend the time of performance to October 1, 2024.

On November 15, 2023, HCD informed current CDBG-CV grantees that a small amount of unclaimed funding is available for construction projects that have experienced unanticipated cost increases that can be substantiated and documented. Funding is not guaranteed but unclaimed funds will be reallocated to construction projects per the following priorities:

1. Tribal awards for construction projects including CDBG-CV 2/3 Tribal Set-Aside and Homekey awards made to Tribes with documented increased project costs and demonstrated financial gap;

2. Non-Tribal Homekey construction projects with documented increased project cost and demonstrated financial gap;

3. All other CDBG-CV construction projects with documented increased project cost and demonstrated financial gap.
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Issue and Discussion: On January 9, 2024, City Council approved Resolution 2024-005 approving an amendment to the Standard Agreement issued under the 2020 Community Development Block Grant Program Coronavirus Response (CDBG-CV) to request additional funding in the amount of $632,040. This amount which was the required cap by HCD of up to a 25 percent increase to their award resulting in a maximum award of 125 percent of their original application. However, on January 8th, staff received an email that HCD changed the stipulations to allow current CDBG-CV 2/3 construction project grantees to request all funding needed to fill project gaps with no maximum award.

On February 13, 2024, City Council approved Resolution 2024-020 approving an amendment to the Standard Agreement issued under the 2020 Community Development Block Grant Program Coronavirus Response (CDBG-CV). On August 8th, staff received an email that HCD was recommending and allowing an additional budget line item to add a ten percent contingency to reconcile additional issues and costs that may arise in the property through rehabilitation. The staff report from January 9th and February 13th are attached for the full context on this Resolution (Attachment 3 and Attachment 4).

On August 1, 2024, HCD authorized the City to extend the grant period until 3/31/2026 due to the limited time frame for construction activities. On August 8th, the City was notified to include a 10% contingency line item to allow for any increases in costs or unanticipated construction needs that arise in the project, therefore, increasing the grant amount allowed in Resolution 2024-020.

Grantees with qualifying CDBG-CV construction projects submitted the requested additional documentation on August 15, 2024, that included the increased grant award, to process the amendment request. The total amount requested is $1,286,038.00 to complete the rehabilitation of the Bear’s Den property.

Financial Implications: The total grant funds spent by TCH are $305,885.11, with a remaining balance of $199,746.89. It is unknown at this time the total amount that HCD will release in unencumbered CDBG-CV funds to grantees with active CDBG-CV Standard Agreements and how much will be awarded to the City.

Environmental Considerations: The proposed project that would use grant funds is categorically exempt from environmental review under CEQA Guidelines Section 15301, Existing Facilities, which exempts “the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use” including “restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety, unless it is determined that the damage was substantial and resulted from an environmental hazard such as earthquake, landslide, or flood.”
The project qualifies for a National Environmental Policy Act (NEPA) Categorical Exclusion pursuant to 24 CFR 58.35(a). The City completed required documentation and public noticing in compliance with NEPA as part of the grant application.

Policy Implications: This action would be consistent with an existing Memorandum of Understanding between the City and TCH where both parties agreed to seek to identify 292
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opportunities to develop shared strategies to prevent and reduce homelessness experienced by South Lake Tahoe residents and committed to jointly reviewing funding opportunities available to bring financial resources to our community which serve the priorities of the City.

The recommended action is also consistent with the following adopted policies and programs:

City Strategic Plan
Action Item 1.3.6 Continue to work with the Tahoe Coalition for the Homeless to rehabilitate properties purchased through Project Homekey.

Action Item 3.1.3 Work with local partners to support permanent supportive housing/transitional homeless shelter resources and provide more services to mitigate existing homeless camps.

City General Plan Housing Element
Policy 1-1 The City shall adopt programs, ordinances, incentives, land use plans and other regulatory mechanisms that provide opportunities for the private sector to address the housing needs of citizens of all economic levels.

Policy 4-2 The City shall work with surrounding jurisdictions to address the causes of homelessness and the needs of transient homeless persons on a regional basis. The City shall support TCH and El Dorado County Community Services and in its countywide programs address the needs of homeless persons.

CDBG-CV
Resolution of the Governing Body
RESOLUTION NO. __2024 - XXX___

A RESOLUTION APPROVING AN AMENDMENT TO THE STANDARD
AGREEMENT ISSUED UNDER THE 2020 COMMUNITY

DEVELOPMENT BLOCK GRANT PROGRAM CORONAVIRUS

RESPONSE (CDBG-CV)
BE IT RESOLVED by the City Council of the City of South Lake Tahoe as follows:

SECTION 1:

The City Council has reviewed and hereby approves the submission to the State of California (“State”) of a Request for Additional Funds to fill gaps created by documented unanticipated cost increases. The funds would be added to its existing CDBG-CV Standard Agreement(s) with the State numbered 20-CDBG-CV2-3-00274 (the “Standard Agreement(s)”) pursuant to the State’s June 2020 CDBG-CV1 Notice of Funding Availability; December 2020 CDBG-CV2 and CV3 Notice of Funding Availability (NOFA); and/or the CDBG Method of Distribution as described in the State of California 2019-2020 Annual Action Plan August 2020 Second Substantial Amendment and the CDBG-CV Method of Distribution as described in the State of California 2019-2020 Annual Action Plan August 2020 Fifth Substantial Amendment.

List of Activity Funding:

Current Authorized amount(s) under Standard Agreement # 20-CDBG-CV2-3-00274  CDBG-CV: $505,632.00
 Program Income: $0
 Total: $505,632.00
Amount of new CDBG-CV funds to be added to Standard Agreement # 20-CDBG-CV2- 3-00274
 CDBG Not to exceed $1,286,038.00
 Program Income: $0
 Total: $1,286,038.00
294
CDBG-CV Allocation of
Remaining Funding –
Jurisdiction Resolution 2
Department of Housing and Community Development
Version 11/15/2023

CDBG-CV
Total amount of amended Standard Agreement # 20-CDBG-CV2-3-00274  CDBG Grant Not to exceed $1,791,670.00
 Program Income: $0
 Total: $1,791,670.00
(Add as many tables as necessary to document the requested amendment. Include associated budget changes, if any.)
SECTION 2:

The City of South Lake Tahoe acknowledges compliance with all state and federal public participation requirements with respect to the proposed amendments to the Standard Agreement described in Sections 1 above.

SECTION 3:

The City of South Lake Tahoe hereby authorizes and directs the City Manager, or designee*, to execute and deliver all application(s), “Request(s) for Additional Funds,” and/or amendments to the Standard Agreement and act on the City’s behalf in all matters pertaining to all such application(s), “Request(s) for Additional Funds,” and/or amendments.

SECTION 4:

If an amendment to the Standard Agreement is approved as contemplated above, the City Manager, or designee*, is authorized to enter into, execute, and deliver an amendment to the Standard Agreement and any and all other documentation which may be required by the State from time to time for the purposes of this grant. 295
CDBG-CV Allocation of
Remaining Funding –
Jurisdiction Resolution 3
Department of Housing and Community Development
Version 11/15/2023

CDBG-CV
SECTION 5:

If an amendment to the Standard Agreement is approved, the City Manager, or designee*, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with this grant.
* Important Note: If the designee is signing any application, agreement, amendment, or any other document on behalf of the designated official of the City/County, written proof of designee authority to sign on behalf of such designated official must be included with the Resolution, otherwise the Resolution will be deemed deficient and rejected.

Additionally, do not add limitations or conditions on the ability of the signatory or signatories to sign documents, or the Resolution may not be accepted. If more than one party’s approval is required, list them as a signatory. The only exception is for county counsel or city attorney to approve as to form or legality or both, IF such approval is already part of the standard city/county signature block as evidenced by the signed Resolution itself. Inclusions of additional limitations or conditions on the authority of the signer will result in the Resolution being rejected and will require your entity to issue a corrected Resolution prior to the Department issuing a Standard Agreement or any subsequent amendments thereto.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of South Lake Tahoe held on
September 10, 2024 by the following vote:
[Instruction: Fill in all four (4) vote-count fields below. If none, indicate “0” for that field.] AYES: _______ NOES: _______
ABSENT: _______ ABSTAIN: _______
____________________________________
Cody Bass, Mayor
City Council
296
CDBG-CV Allocation of
Remaining Funding –
Jurisdiction Resolution 4
Department of Housing and Community Development
Version 11/15/2023

CDBG-CV

STATE OF CALIFORNIA
City of South Lake Tahoe
“I, ___________, City Clerk of the City of South Lake Tahoe, State of California, hereby certify that (i) the above and foregoing is a full, true, and correct copy of a resolution duly adopted by said City Council, as applicable on this 10th day of September, 2024; (ii) such resolution has not been amended, modified, repealed or rescinded since the date of its adoption; and (iii) such resolution remains in full force and effect.” ___________________________________________
Susan Blankenship, City Clerk of the City of
South Lake Tahoe, State of California
(Note: The attesting officer cannot be the person identified in the Resolution as the authorized signer.)
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Council Agenda Report January 9, 2024 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: January 9, 2024
Title: Community Development Block Grant Program Coronavirus Response Allocation of Remaining Funding for Tahoe Coalition for the Homeless Bears Den Inn Rehabilitation Location: 2250 Lake Tahoe Blvd (Bear’s Den Inn)
Responsible Staff Members: Jessica Wackenhut Lomeli, Interim Housing Manager Background: The California Department of Housing and Community Development (HCD) receives funding from the United States Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) Program and allocates funds to CDBG eligible non-entitlement jurisdictions (such as City of South Lake Tahoe). Authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, approximately $71.2 million in CDBG coronavirus response rounds 2 and 3 (CDBG-CV 2/3) federal funds has been allocated to eligible jurisdictions in California to perform activities related to COVID-19 response and recovery.

Issue and Discussion: On November 15, 2023, HCD informed current CDBG-CV grantees that a small amount of unclaimed funding is available for construction projects that have experienced unanticipated cost increases that can be substantiated and documented. Funding is not guaranteed but unclaimed funds will be reallocated to construction projects per the following priorities:

1. Tribal awards for construction projects including CDBG-CV 2/3 Tribal Set-Aside and Homekey awards made to Tribes with documented increased project costs and demonstrated financial gap;

2. Non-Tribal Homekey construction projects with documented increased project cost and demonstrated financial gap;

3. All other CDBG-CV construction projects with documented increased project cost and demonstrated financial gap.
298
Council Agenda Report January 9, 2024 Page 2 of 3
TCH has encountered several challenges that have impacted the original scope of work, which include various unforeseen challenges and damage related to property upgrades and lack of labor that qualify for participation in a federally funded rehabilitation grant. These issues coupled with the relative the small scale of the project have made it challenging to secure a qualified contractor.

Additionally, like many other properties this past winter, the project experienced extensive damage to the existing circa 1960s galvanized plumbing system, damage to the exterior paint, and extensive issues to the already aging asphalt in the parking lot due to freeze and thaw cycles. The bids received in 2022 and 2023 are close to double the cost estimates for the original scope of work in addition to the extensive work discovered through initial rehabilitation work. Attachment 4 contains the full list of remaining work for full rehabilitation with the cost according to bids received (Attachment 5).

As such, TCH has submitted a revised Scope of Remaining Work for full rehabilitation of the Bear’s Den (Attachment 4) showing the documentation of new, increased project costs and the gap in CDBG funds being requested since the original application submitted for this program.

Grantees with qualifying CDBG-CV construction projects may request up to a 25 percent increase to their award resulting in a maximum award of 125 percent of their original application.

It is recommended that the City Council adopt a Resolution approving an amendment to the Standard Agreement issued under the 2020 Community Development Block Grant Program Coronavirus Response (CDBG-CV). It is also recommended that the City Council adopt an amendment (Amendment #2) to the Subrecipient Agreement between City of South Lake Tahoe and Tahoe Coalition for the Homeless for any additional funds allocated from the 2020 Community Development Block Grant Program – Coronavirus Response Round 2 & 3 authorized by Resolution 2022-003.

Financial Implications: The total grant funds spent by TCH are $109,780.33 with a remaining balance of $385,851.67. The total amount that HCD will release in unencumbered CDBG-CV funds to grantees with active CDBG-CV Standard Agreements and how much will be awarded to the City is unknown at this time.

Policy Implications: This action would be consistent with an existing Memorandum of Understanding between the City and TCH where both parties agreed to seek to identify opportunities to develop shared strategies to prevent and reduce homelessness experienced by South Lake Tahoe residents and committed to jointly reviewing funding opportunities available to bring financial resources to our community which serve the priorities of the City. 299
Council Agenda Report January 9, 2024 Page 3 of 3
The recommended action is also consistent with the following adopted policies and programs:

City Strategic Plan
Action Item 1.3.6 Continue to work with the Tahoe Coalition for the Homeless to rehabilitate properties purchased through Project Homekey.

Action Item 3.1.3 Work with local partners to support permanent supportive housing/transitional homeless shelter resources and provide more services to mitigate existing homeless camps.

Policy 4-4 The City shall provide priority permit processing of projects that are targeted toward special-needs groups, such as seniors, the disabled (including the developmentally disabled), and the homeless, including priority for building plan check, subdivision map review, improvement plans for roadways and utilities, and environmental impact analysis. 300
Council Agenda Report February 13, 2024 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: February 13, 2024
Title: Community Development Block Grant Program Coronavirus Response Allocation of Remaining Funding for Tahoe Coalition for the Homeless Bears Den Inn Rehabilitation Location: 2250 Lake Tahoe Blvd (Bear’s Den Inn)
Responsible Staff Members: Jessica Wackenhut Lomeli, Housing Manager Background: The California Department of Housing and Community Development (HCD) receives funding from the United States Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) Program and allocates funds to CDBG eligible non-entitlement jurisdictions (such as City of South Lake Tahoe). Authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, approximately $71.2 million in CDBG coronavirus response rounds 2 and 3 (CDBG-CV 2/3) federal funds has been allocated to eligible jurisdictions in California to perform activities related to COVID-19 response and recovery.

1. Tribal awards for construction projects including CDBG-CV 2/3 Tribal Set-Aside and Homekey awards made to Tribes with documented increased project costs and demonstrated financial gap;

2. Non-Tribal Homekey construction projects with documented increased project cost and demonstrated financial gap;

3. All other CDBG-CV construction projects with documented increased project cost and demonstrated financial gap.
301
Council Agenda Report February 13, 2024 Page 2 of 3
Issue and Discussion: On January 9, 2024, City Council approved Resolution 2024-005 approving an amendment to the Standard Agreement issued under the 2020 Community Development Block Grant Program Coronavirus Response (CDBG-CV) to request additional funding in the amount of $632,040. This amount which was the required cap by HCD of up to a 25 percent increase to their award resulting in a maximum award of 125 percent of their original application. However, on January 8th, staff received an email that HCD changed the stipulations to allow current CDBG-CV 2/3 construction project grantees to request all funding needed to fill project gaps with no maximum award. The staff report from January 9th is attached for the full context on this Resolution (Attachment 6).

The revised Scope of Remaining Work for full rehabilitation of the Bear’s Den (Attachment 3) showing the documentation of new, increased project costs and the gap in CDBG funds being requested since the original application submitted for this program and the bids for the Scope of Remaining Work supporting the increased costs are attached (Attachment 4). The total amount requested is $1,169,124.88 to complete the rehabilitation of the Bear’s Den property. Grantees with qualifying CDBG-CV construction projects may request this entire amount as of January 8th, 2024.

Financial Implications: The total grant funds spent by TCH are $145,760.80, with a remaining balance of $349,871.20. It is unknown at this time the total amount that HCD will release in unencumbered CDBG-CV funds to grantees with active CDBG-CV Standard Agreements and how much will be awarded to the City.

Policy Implications: This action would be consistent with an existing Memorandum of Understanding between the City and TCH where both parties agreed to seek to identify opportunities to develop shared strategies to prevent and reduce homelessness experienced by 302
Council Agenda Report February 13, 2024 Page 3 of 3
South Lake Tahoe residents and committed to jointly reviewing funding opportunities available to bring financial resources to our community which serve the priorities of the City.

The recommended action is also consistent with the following adopted policies and programs:

City Strategic Plan
Action Item 1.3.6 Continue to work with the Tahoe Coalition for the Homeless to rehabilitate properties purchased through Project Homekey.

Action Item 3.1.3 Work with local partners to support permanent supportive housing/transitional homeless shelter resources and provide more services to mitigate existing homeless camps.

Policy 4-4 The City shall provide priority permit processing of projects that are targeted toward special-needs groups, such as seniors, the disabled (including the developmentally disabled), and the homeless, including priority for building plan check, subdivision map review, improvement plans for roadways and utilities, and environmental impact analysis. 303
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:12
Agenda Item: Addendum and Amendment #3 to the Subrecipient Agreement with Tahoe Coalition for the Homeless for 2020 Community Development Block Grant Program - Coronavirus Response Round 2 & 3
Executive Summary: On June 6, 2024, the Department of Housing and Community Development made a request for a Duplication of Benefits policy for the CDBG CV-2/3 funded project at Bearâ€™s Den. A Duplication of Benefits policy requires that grantees include documentation that a grant funded project is essentially not double-dipping funds for the same costs. In addition, The Subrecipient Agreement expires on October 1 , 2024 (Amendment #1), and the recommended amendment will increase the timeframe to March 31, 2026.

Requested Action / Suggested Motions: Pass a Motion approving the Duplication of Benefits Policy as an addendum to the Subrecipient Agreement between City of South Lake Tahoe and Tahoe Coalition for the Homeless for 2020 Community Development Block Grant Program - Coronavirus Response Round 2 & 3. It is also recommended that the City Council adopt an amendment (Amendment #3) to the Subrecipient Agreement extending the timeframe from October 28, 2023 to March 31, 2026.

Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Reviewed and Approved By: Zach Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
02-Duplication of Benefits Policy and Process for Bears Den CDBG-CV Funds.docx 03-C-004-2022 Tahoe Coalition for Homeless Subrecipient Agreement - signed.pdf 01- Staff Report_DOB Policy_TCH_Sept10.docx
03-Amendment_3_Subrecipient_Agreement_TCH_C.docx
304
Council Agenda Report September 10, 2024 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Addendum of the Duplication of Benefits Policy and Amendment #3 to the Subrecipient Agreement between City of South Lake Tahoe and Tahoe Coalition for the Homeless for 2020 Community Development Block Grant Program – Coronavirus Response Round 2 & 3 Location: 2250 Lake Tahoe Blvd (Bear’s Den Inn)
Responsible Staff Members: Jessica Wackenhut Lomeli, Housing Manager Background: The California Department of Housing and Community Development (HCD) receives funding from the United States Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) Program and allocates funds to CDBG eligible non-entitlement jurisdictions (such as City of South Lake Tahoe). Authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, approximately $71.2 million in CDBG coronavirus response rounds 2 and 3 (CDBG-CV 2/3) federal funds has been allocated to eligible jurisdictions in California to perform activities related to COVID-19 response and recovery.

On April 20, 2021 the City Council adopted Resolution 2021-021 authorizing an application for CDBG CV 2/3 funding in the amount of $505,632 for rehabilitation work on the Bears Den Inn Property (2250 Lake Tahoe Blvd) and to execute the Standard Agreement. The Bears Den Inn property was purchased by the Tahoe Coalition for the Homeless (TCH) with State of California Project Homekey Program funds to provide housing for persons experiencing or at risk of homelessness. Subsequently, the City Council adoption of Resolution 2022-003 on January 4, 2022, authorizing the Subrecipient Agreement (Attachment 3) with Tahoe Coalition for the Homeless to administer funding and execute the scope of work for rehabilitation of the Bears Den Inn property (2250 Lake Tahoe Blvd). On June 20, 2023, Amendment Number 1 was made to the Subrecipient Agreement between the City of South Lake Tahoe and Tahoe Coalition for the Homeless to extend the time of performance to October 1, 2024. This timeframe will need to be extended with the potential award of additional CDBG CV-2/3 funds.

Issue and Discussion: On June 6, 2024, the Department of Housing and Community Development made a request for a Duplication of Benefits policy for the CDBG CV-2/3 funded project at Bear’s Den. A Duplication of Benefits policy requires that grantees include documentation that a grant funded project is essentially not double-dipping funds for the same costs. In the Duplication of Benefits policy (Attachment 2), there are documents for TCH to sign to ensure they maintain accounting principles to allow for tracking and separation of costs, in addition to clients signing that move to the property that they are documenting other assistance they have/are receiving.

City staff receive monthly disbursement requests from Tahoe Coalition for the Homeless that are thoroughly reviewed for accuracy and all invoices are accounted for. Staff also have a bi-monthly 305
Council Agenda Report September 10, 2024 Page 2 of 3
call with TCH for updates related to other grants received to ensure there and controls and there is no duplication of benefits.

It is recommended that the City Council make a motion approving the Duplication of Benefits Policy as an addendum to the Subrecipient Agreement between City of South Lake Tahoe and Tahoe Coalition for the Homeless for 2020 Community Development Block Grant Program – Coronavirus Response Round 2 & 3.

It is also recommended that the City Council adopt an amendment (Amendment #3) to the Subrecipient Agreement extending the timeframe from October 1, 2024 (Amendment #1) to March 31, 2026.

Financial Implications: This grant is accounted for in CDBG Economic Development fund and account 256-06021. The total grant funds spent by TCH are $305,885.11. Of that amount $279,507.87 has been paid by the City to TCH and $130,856.47 has been reimbursed by HCD to the City. There is a balance of $199,746.89 remains unspent in the grant. It is unknown at this time the total amount that HCD will release in unencumbered CDBG-CV funds to grantees with active CDBG-CV Standard Agreements and how much will be awarded to the City.

The recommended action is also consistent with the following adopted policies and programs:

City Strategic Plan
Action Item 1.3.6 Continue to work with the Tahoe Coalition for the Homeless to rehabilitate properties purchased through Project Homekey.

Action Item 3.1.3 Work with local partners to support permanent supportive housing/transitional homeless shelter resources and provide more services to mitigate existing homeless camps.

City General Plan Housing Element
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Council Agenda Report September 10, 2024 Page 3 of 3
Policy 1-1 The City shall adopt programs, ordinances, incentives, land use plans and other regulatory mechanisms that provide opportunities for the private sector to address the housing needs of citizens of all economic levels.

All CDBG-CV grantees are required to complete a duplication of benefits analysis for assisted activities to demonstrate that no financial assistance has been received or is available to pay costs charged to a CDBG-CV grant. To comply with this requirement, the City of South Lake Tahoe, and its subrecipient Tahoe Coalition for the Homeless will demonstrate that no other funds are available for an activity by maintaining records of compliance with mandatory duplication of benefits requirements described in the Federal Register Notice of August 7, 2020.

A CDBG-CV grantee is required to develop and maintain adequate procedures to prevent a duplication of benefits that address (individually or collectively) each activity or program. A grantee’s policies and procedures are not adequate unless they include, at a minimum: (1) a requirement that any person or entity receiving CDBG-CV assistance must agree to repay assistance that is determined to be duplicative; and (2) a method of assessing whether the use of CDBG-CV funds will duplicate financial assistance that is already received or is likely to be received by acting reasonably by evaluating need and the resources available to meet that need. It is the intent of this document to set forth the City of South Lake Tahoe’s policy to uphold, enforce and document conformance with the duplication of benefit requirements which cover use of its CDBG-CV funds.

City of South Lake Tahoe Duplication of Benefits Process The City of South Lake Tahoe is responsible for ensuring that the CDBG-CV funds awarded by HUD comply with all federal, state, and local requirements. In situations where funds are disbursed to subrecipients determined to be duplicative, the subrecipients, meaning those benefitting entities or persons from the program may be required to repay all or a portion of the funds received. This statement acknowledges the City of South Lake Tahoe’s requirement that any person or entity receiving CDBGCV assistance must agree to repay assistance that is determined to be duplicative.

To meet HUD’s requirements, the City has developed a method of assessing whether the use of CDBG-CV funds will duplicate financial assistance that is already received or is likely to be received by acting reasonably in evaluating need and the resources available to meet that need.
308
Agency:

On an agency level, the Tahoe Coalition for the Homeless (TCH) is required to complete a Duplication of Benefits Affidavit, a copy of which is attached. This affidavit acknowledges the City’s requirement that The Tahoe Coalition for the Homeless does not receive duplicative assistance for this project and maintain a separation of funds, and they must agree to repay assistance that is determined to be duplicative.

To meet HUD’s requirements, TCH must develop and maintain a method of assessing whether the use of CDBG-CV funds will duplicate financial assistance that is already received or is likely to be received by acting reasonably in evaluating need and the resources available to meet that need.1 The subrecipient (TCH) is managing funds and reimbursements correctly.

Beneficiary:

During intake, beneficiaries of this program or individuals moving into the affordable housing project are required to complete a Duplication of Benefits Affidavit, a copy of which is attached. This certifies that the beneficiary does not have alternative housing options, are receiving other subsidies, or other duplicative assistance.

The steps in place to ensure compliance with Duplication of Benefits requirements are:

1. Upon receiving a referral in HMIS, case manager must ensure that the beneficiary is not already housed or has alternative housing options.

2. During intake, the case manager will review DOB policy and ensures the client completes a Duplication of Benefit Affidavit/Certification (attached).

3. The beneficiary must sign the policy and list any other income or housing sources that may be deemed potentially duplicative (FEMA, HUD, private funding, CDBG-DR, ESG, etc.

4. The City may document the lack of a duplication of benefits utilizing the HCD individual DOB Tracking Form and the HCD Project Tracking Forms.

5. The Tahoe Coalition for the Homeless will be required to sign a Subrogation Statement or Agreement to address concerns around the potential for future duplication.

6. When an application is approved in part, the City will also include in the funding documents specific information
1 The City anticipates additional guidance in this regard will be forthcoming from HUD and will review its process to ensure compliance at that time.
309

7. In the event that an application is approved in part, the City will also include in the funding documents specific information around what the funds may be spent on so as to avoid duplication of benefits.

8. The City will require all successful applicants to provide documentation as to how funds are actually expended and will review this documentation to ensure no duplication has taken place.

Recapture Policy Components:

1. Prioritization
The City of South Lake Tahoe has the authority and shall consider recapturing the full amount of ineligible assistance, regardless of City staff or recipient responsibility in errors.

Recapture priority levels are based on ineligible amounts of funds received. In all cases, the City will assess the recovery amount, recipient’s ability to repay, cost effectiveness, and other mitigating circumstances, to make a determination.

Each priority level has a progressively higher threshold for waiver consideration.

Recipient case files shall include documentation noting consideration factors and results.

Grant Recovery Amount Priority Level
>$5,000 High Priority
$1,000 - $5,000 Medium Priority
<$1,000 Low Priority

2. Notification
All grant fund subrecipients have an obligation to notify the City of South Lake Tahoe upon the award and/or receipt of any funds that may be a duplication of benefits for funds awarded through the CDBG-CV program.

If the City of South Lake Tahoe identifies a duplication of benefits or payment of ineligible funds, the City of South Lake Tahoe will notify the recipient(s) via email.

The notice will include the amount of ineligible assistance to be repaid, the reason for ineligibility, and a timeline for recipients’ response (up to 30 days at the discretion of the City of South Lake Tahoe).

3. Method of recapture and repayment
If recipients cannot repay ineligible grant funds, compromise settlements may be negotiated. If reached, the contract must state that if default occurs, recipient will owe the entire amount of the distribution, not simply the negotiated amount.

Compromise should consider recipients finances and ability to pay. Recipients can repay in a lump-sum payment of the entire amount due or enter into a 310
repayment agreement. This formal document prepared by the City of South Lake Tahoe, signed by both parties, and stored in the City record system. Accrued interest may be waived from the repayment agreement if City of South Lake Tahoe determines interest is “against equity and good conscience”. The recipient will pay a set fee each payment period equaling the repayment amount plus processing costs of collection. For Rehabilitation or Reconstruction grants, a lien will be placed on the property for the duration of the payment schedule.

If no agreement can be reached, the City of South Lake Tahoe may use the fullest extent of the law to seek repayment of all ineligible assistance received plus the collection costs. The City of South Lake Tahoe’s efforts to collect ineligible assistance may include repayment agreements, court orders, garnishment of wages and/or income tax returns, the use of private or public collection agents, and any other remedies available, on a case-by-case basis.

The City of South Lake Tahoe retains rights to resolve disputes, compromise debts (negotiate settlement amounts less than the full amount), suspend or terminate collection, and refer debt for litigation.
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CDBG – CV 2/3: Rehabilitation of the Bear’s Den Affordable Housing Project Duplication of Benefits Affidavit
Duplication of Benefits (DOB) are prohibited under the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) and are required per HUD Community Development Block Grant (CDBG) guidelines.

By executing this Affidavit, the Applicant acknowledges and signifies that the undersigned did not receive additional assistance from COVID 19 relief funding provided through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Any information provided that proves undersigned received said benefits will lead to forfeiture of any funds granted and cause for termination from receiving CDBG – CV 2/3 funds from the City of South Lake Tahoe for the rehabilitation of the Bear’s Den Affordable Housing Project.

I understand that this affidavit is appended to and part of the Subrecipient Agreement that Tahoe Coalition for the Homeless executed with the City for CDBG-CV funds and is a condition of the receipt of such funds.

I certify that the information that I have provided above is an accurate and complete disclosure. I understand that to perjure myself in order to obtain assistance is a fraudulent offence for which I can be prosecuted.

Date:_______________________________
Name of Organization: _________________________________________________ Name of Agency Representative & Title: ___________________________________ Agency Representative Signature:________________________________________ 312
CDBG – CV 2/3: Rehabilitation of the Bear’s Den Affordable Housing Project Duplication of Benefits Affidavit
Duplication of Benefits (DOB) are prohibited under the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) and are required per HUD Community Development Block Grant (CDBG) guidelines.

By executing this Affidavit, the I acknowledge and signify that the undersigned did not receive additional assistance from COVID 19 relief funding provided through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Please identify any other rental/housing assistance funds that the individual has received or anticipates receiving. Sources of funds include but are not limited to: Federal, state, and local government, church, or nonprofit assistance programs.

I have received the following recovery assistance funds:

Assistance Amount Use of Funds
$
$
Other (please name): $
☐No members of the household have received any type of rental and/or housing assistance in the last three months.

I hereby certify that:

1. I have received no other rental and/or housing assistance funds other than that set forth above.

2. If I receive duplicated benefits, I will repay the duplicated benefits.

3. I certify under penalty of perjury that all information provided as part of this application is true and correct to the best of My knowledge.

Date __________________________
Print Name Signature
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C-004-2022

SUBRECIPIENT AGREEMENT

AGREEMENT BETWEEN CITY OF SOUTH LAKE TAHOE
AND

TAHOE COALITION FOR THE HOMELESS
FOR
2020 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMCORONAVIRUS RESPONSE ROUND 2 & 3 THIS AGREEMENT, entered this 4th day of January, 2022 by and between the City of South Lake Tahoe (herein called the “Grantee”) and Tahoe Coalition For The Homeless (herein called the “Subrecipient”).

WHEREAS, the Grantee has applied for and been awarded funding from the United States Government under the CARES Act (Public Law No: 116-136) and the Housing and Community Development Act of 1974 (HCDA) as amended and codified at Title 42 United States Code (U.S.C.) § 5301, et. seq., and Subpart 1 of the federal CDBG Regulations, found at Title 24 Code of Federal Regulations (CFR) § 570.480 et seq.; and
WHEREAS, the Grantee wishes to engage the Subrecipient to assist the Grantee in utilizing such funds;
NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE
A. Activities
The Subrecipient will be responsible for administering a CDBG Year 2020 Coronavirus Response Round 2/3 grant in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:

Rehabilitation of the Bears Den Inn (2250 Lake Tahoe Blvd) CDBG-CV 2 & 3 funding will support completion of all improvements listed in the Physical Needs Assessment (Attachment A) described for Tiers 1 and 3 as the minimum improvements necessary to satisfy current building code standards and allow Interim Housing with occupancies 30 days or longer. This work includes:
● Accessibility of parking, path of travel, and main lobby ● Renovations to equip two (2) units with accessible mobility features, of which at least one (1) will include accessible communication features ● Electrical upgrades necessary to install fire/life safety improvements ● Wired 10-year tamper-proof carbon monoxide and smoke detection combination units in all residential units, common spaces, and offices. ● Fire alarm panel and internal sprinkler system
As funding allows, additional items may be incorporated into the scope of work, including: items identified in Tier 2, general maintenance and repair work, and/or 314
C-004-2022
improvements required for compliance with City SRO requirements. This may also include the joining of two (2) single rooms to meet square footage requirements under the SRO code, which would reduce the overall unit count by one (1) unit, from 22 to 21 units. Implementation of the rehabilitation will require preparation of construction plans by a licensed architect or engineer and construction completed by licensed contractors.

General Administration
Subrecipient will ensure completion of the activity described above in compliance with all applicable laws and regulations. Subrecipient will provide all project and contract management and administration associated with completion of the activity in a manner consistent with the funding source and will maintain documents and records necessary to demonstrate compliance. Subrecipient will provide the Grantee with documentation and information necessary to complete all grant reporting.

B. National Objectives
All activities funded with CDGB funds must meet one of the CDBG program’s National Objectives: benefit low- and moderate-income persons; aid in the prevention or elimination of slums or blight; or meet community development needs having a particular urgency, as defined in 24 CFR 570.208.

The Subrecipient certifies that the activity (ies) carried out under this Agreement will meet the low and moderate income persons National Objective by implementing rehabilitation efforts on property purchased with Homekey Program funds in order to provide long-term housing for persons experiencing or at risk of homelessness who are at high risk for serious illness and are impacted by COVID-19.

C. Levels of Accomplishment – Goals and Performance Measures The Subrecipient agrees to provide the following levels of program services:

Activity Total Units
Activity #1 Rehabilitation of property located at 2250 Lake Tahoe Blvd (Bears Den Inn) as described in Paragraph I.

Activity #2 Subrecipient will provide housing units for at least 21 lowincome persons experiencing homelessness or at imminent risk of homelessness
D. Staffing
Subrecipient commits the following staffing to delivery of the described activity:
● Executive Director (currently Cheyenne Purrington)
● Director of Housing (currently Kimberly Peterson)
● Project Manager (currently Angela Clark)
● Maintenance Technician/Design Technician/Engineer (Richard Chilcott) ● Director of Administration (Jennifer Goode)
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C-004-2022
Subrecipient shall notify Grantee of any changes in the Key Personnel assigned or their general responsibilities under this project.

E. Performance Monitoring
The Grantee will monitor the performance of the Subrecipient against goals and performance standards as stated above. Substandard performance as determined by the Grantee will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated.

II. TIME OF PERFORMANCE
Services of the Subrecipient shall start upon execution of this Agreement and end on October 28, 2023. The Scope of Service described in Paragraph I shall be completed in accordance with the following milestones:
• Within 120 days of execution: Design work procurement and contract(s) executed (Architectural, structural, civil, mechanical, electrical, etc.) • Within 180 days of execution: Construction work procurement and contract executed (general contractor and subs)
• Within 180 days from date of execution: Building Permit application submittal to City
• Within 400 days of execution: Commence construction
• Within 600 days of execution: Construction complete and final inspection sign off from City achieved
III. BUDGET
Line Item Amount:

Professional Services $88,000
Construction $351,900
General Administration $55,732
TOTAL $495,632
Any indirect costs charged must be consistent with the conditions of Paragraph VIII (C)(2) of this Agreement. In addition, the Grantee may require a more detailed budget breakdown than the one contained herein, and the Subrecipient shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the Grantee.

Any amendments to the budget must be approved in writing by both the Grantee and the Subrecipient.
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IV. PAYMENT
It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed $495,632. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in Paragraph III herein and in accordance with performance milestones as specified in Paragraph II. It is agreed and understood that payment for work inconsistent with the performance milestones and scope of services described in this agreement shall not be provided.

Subrecipient shall submit quarterly progress reports to Grantee along with reimbursement requests which include a cover letter describing the reimbursement request as it relates to the scope of work and performance milestones along with an invoice, receipts, cancelled checks, and any other documentation necessary to support compliance with this agreement.

Grantee shall provide reimbursement payments to Subrecipient quarterly upon receipt and review of reimbursement requests. Grantee is not responsible for direct payment of any goods or services procured by the Subrecipient. Grantee reserves the right to deny a request or request additional documentation to verify eligibility of an expense.

Payment will not be provided if performance milestones have not been met. Payment will also not be provided if any reimbursement requests that Grantee has submitted to the Department of Housing and Community Development (HCD) have been denied, until payment by HCD is resolved. Grantee shall make every effort to expeditiously resolve any reimbursement issues and communicate to Subrecipient the delay in reimbursement.

Expenses for general administration shall also be paid against the line-item budgets specified in Paragraph III and in accordance with performance.

Payments may be contingent upon certification of the Subrecipient’s financial management system in accordance with the standards specified in 24 CFR 84.21.

V. NOTICES
Notices required by this Agreement shall be in writing and delivered via mail (postage prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice.

Communication and details concerning this contract shall be directed to the following contract representatives:
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Grantee Subrecipient
Joseph Irvin, City Manager Cheyenne Purrington, Executive Director City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
(530) 542-6043
Tahoe Coalition For The Homeless
PO Box 13514
South Lake Tahoe, CA 96151
(530) 600-2822
VI. SPECIAL CONDITIONS
If the existing tenant (Heavenly Valley, Limited Partnership) fails to vacate the premises prior to June 1, 2022, such that Subrecipient fails to gain access to the premises to conduct the repair work, then this agreement will automatically terminate and no payments will be made to Subrecipient
VII. GENERAL CONDITIONS
A. General Compliance
The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and Urban Development regulations concerning Community Development Block Grants (CDBG)) including subpart K of these regulations, except that (1) the Subrecipient does not assume the recipient’s environmental responsibilities described in 24 CFR 570.604 and (2) the Subrecipient does not assume the recipient’s responsibility for initiating the review process under the provisions of 24 CFR Part 52. The Subrecipient also agrees to comply with all other applicable Federal, state and local laws, regulations, and policies governing the funds provided under this contract.

The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.

B. “Independent Contractor”
Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an “independent contractor” with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers’ Compensation Insurance, as the Subrecipient is an independent contractor.

C. Hold Harmless
The Subrecipient shall hold harmless, defend and indemnify the Grantee from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient’s performance or nonperformance of the services or subject matter called for in this Agreement.
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D. Workers’ Compensation
The Subrecipient shall provide Workers’ Compensation Insurance coverage for all of its employees involved in the performance of this Agreement.

E. Insurance & Bonding
The Subrecipient shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the Grantee.

The Subrecipient shall comply with the bonding and insurance requirements of 24 CFR

84.31 and 84.48, Bonding and Insurance.

F. Grantee Recognition
The Subrecipient shall ensure recognition of the role of the Grantee in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement.

G. Amendments
The Grantee or Subrecipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing,signed by a duly authorized representative of each organization, and approved by the Grantee’s governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Subrecipient from its obligations under this Agreement.

The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Subrecipient.

H. Suspension or Termination
In accordance with 24 CFR 85.43, the Grantee may suspend or terminate this Agreement if the Subrecipient materially fails to comply with any terms of this Agreement, which include (but are not limited to) the following:

1. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time; 319
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2. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement;

3. Ineffective or improper use of funds provided under this Agreement; or

4. Submission by the Subrecipient to the Grantee reports that are incorrect or incomplete in any material respect.

In accordance with 24 CFR 85.44, this Agreement may also be terminated for convenience by either the Grantee or the Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if in the case of a partial termination, the Grantee determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Grantee may terminate the award in its entirety.

VIII. ADMINISTRATIVE REQUIREMENTS
A. Financial Management

1. Accounting Standards
The Subrecipient agrees to comply with 24 CFR 84.21−28 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

2. Cost Principles
The Subrecipient shall administer its program in conformance with OMB Circulars A-122, “Cost Principles for Non-Profit Organizations.” These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.

B. Documentation and Record Keeping

1. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program;
c. Records required to determine the eligibility of activities; 320
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d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program;
f. Financial records as required by 24 CFR 570.502, and 24 CFR

84.21−28; and
g. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.

2. Retention
The Subrecipient shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of four (4) years. The retention period begins on the date of the submission of the Grantee’s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the four-year period, whichever occurs later.

3. Client Data
The Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee monitors or their designees for review upon request.

4. Disclosure
The Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the Grantee’s or Subrecipient’s responsibilities with respect to services provided under this contract, is prohibited by the law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.

5. Close-outs
The Subrecipient’s obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets 321
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(including the return of all unused materials, equipment, unspent cash advances, program income balances, and accountsreceivable to the Grantee), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreementshall remain in effect during any period that the Subrecipient has control over CDBG funds, including program income.

6. Audits & Inspections
All Subrecipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning subrecipient audits and OMB Circular A-133.

C. Reporting and Payment Procedures

1. Payment Procedures
The Grantee will pay to the Subrecipient funds available under this Agreement based upon information submitted by the Subrecipient and consistent with any approved budget and Grantee policy concerning payments. Payments will be made for eligible expenses actually incurred by the Subrecipient, and not to exceed actual cash requirements. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Subrecipient.

2. Progress Reports
The Subrecipientshallsubmit quarterly Progress Reportsto the Grantee in the form, content, and frequency as required by the Grantee.

D. Procurement

1. Compliance
The Subrecipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein.

All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this Agreement. 322
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2. OMB Standards
Unless specified otherwise within this agreement, the Subrecipient shall procure all materials, property, or services in accordance with the requirements of 24 CFR

84.40−48.

3. Travel
The Subrecipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this Agreement.

E. Use and Reversion of Assets
The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following:

1. The Subrecipient shall transfer to the Grantee any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination.

2. Real property under the Subrecipient’s control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after expiration of this Agreement. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, the Subrecipient shall pay the Grantee an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment shall constitute program income to the Grantee. The Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the five-year period.

3. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under this Agreement were used to acquire the equipment). Equipment not needed by the Subrecipient for activities under this Agreement shall be (a) transferred to the Grantee for the CDBG program or (b) retained after compensating the Grantee [an amount equal to the current fair market value of the equipment less the percentage of non-CDBG funds used to acquire the equipment]. 323
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IX. PERSONNEL & PARTICIPANT CONDITIONS
A. Civil Rights

1. Compliance
The Subrecipient agrees to comply with City and state civil rights ordinances and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086.

2. Nondiscrimination
The Subrecipient agrees to comply with the non-discrimination in employment and contracting opportunities laws, regulations, and executive orders referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable nondiscrimination provisions in Section 109 of the HCDA are still applicable.

1. Land Covenants
This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this contract, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Grantee and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate.

2. Section 504
The Subrecipient agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any Federally assisted program. The Grantee shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulationsin force during the term of this Agreement.
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B. Affirmative Action

1. Approved Plan
The Subrecipient agrees that it shall be committed to carry out pursuant to the Grantee’s specifications an Affirmative Action Program in keeping with the principles as provided in President’s Executive Order 11246 of September 24, 1966. The Grantee shall provide Affirmative Action guidelines to the Subrecipient to assist in the formulation of such program. The Subrecipient shall submit a plan for an Affirmative Action Program for approval prior to the award of funds.

2. Women- and Minority-Owned Businesses (W/MBE)
The Subrecipient will use its best efforts to afford small businesses, minority business enterprises, and women’s business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the terms “small business” means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and “minority and women’s business enterprise” means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, “minority group members” are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, AsianAmericans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation.

3. Access to Records
The Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein.

4. Notifications
The Subrecipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker’s representative of the Subrecipient’s commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
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5. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement
The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer.

6. Subcontract Provisions
The Subrecipient will include the provisions of Paragraphs X.A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own subrecipients or subcontractors.

C. Employment Restrictions

1. Prohibited Activity
The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; inherently religious activities; lobbying; political patronage; and nepotism activities.

2. Labor Standards
The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The Subrecipient agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The Subrecipient shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Grantee for review upon request.

The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be 326
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inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph.

3. “Section 3” Clause
a. Compliance
Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this contract, shall be a condition of the Federal financial assistance provided under this contract and binding upon the Grantee, the Subrecipient and any of the Subrecipient’s subrecipients and subcontractors. Failure to fulfill these requirements shall subject the Grantee, the Subrecipient and any of the Subrecipient’s subrecipients and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements.

The Subrecipient further agrees to comply with these “Section 3” requirements and to include the following language in all subcontracts executed under this Agreement:
“The work to be performed under this Agreement is a
project assisted under a program providing direct Federal financial assistance from HUD and is subject to the
requirements of Section 3 of the Housing and Urban
Development Act of 1968, as amended (12 U.S.C. 1701).

Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lowand very low-income residents of the project area, and that contracts for work in connection with the project be
awarded to business concerns that provide economic
opportunities for low- and very low-income persons
residing in the metropolitan area in which the project is located.”
The Subrecipient further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to low- and very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low- and very lowincome participants in other HUD programs; and award contracts for work 327
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undertaken in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low- and very low-income residents within the service area or the neighborhood in which the project is located, and to lowand very low-income participants in other HUD programs.

The Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. b. Notifications
The Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker’s representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training.
c. Subcontracts
The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency.

The Subrecipient will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.

D. Conduct

1. Assignability
The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Grantee under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Grantee.
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2. Subcontracts
a. Approvals
The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Grantee prior to the execution of such agreement.
b. Monitoring
The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. c. Content
The Subrecipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement.
d. Selection Process
The Subrecipient shall undertake to ensure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements.

Executed copies of all subcontracts shall be forwarded to the Grantee along with documentation concerning the selection process.

3. Hatch Act
The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C.

4. Conflict of Interest
The Subrecipient agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which include (but are not limited to) the following:
a. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds.
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b. No employee, officer or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved.
c. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBGassisted activity, or with respect to the proceeds from the CDBGassisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the Subrecipient, or any designated public agency.

5. Lobbying
The Subrecipient hereby certifies that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congressin connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; and
c. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all Subrecipients shall certify and disclose accordingly:
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d. Lobbying Certification
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into.

Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

6. Copyright
If this contract results in any copyrightable material or inventions, the Grantee and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes.

7. Religious Activities
The Subrecipient agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization.

X. ENVIRONMENTAL CONDITIONS
A. Air and Water
The Subrecipient agrees to comply with the following requirements insofar as they apply to the performance of this Agreement:
- Clean Air Act, 42 U.S.C. , 7401, et seq.;
- Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; - Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended.

B. Flood Disaster Protection
In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as 331
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a condition of financial assistance for acquisition or construction purposes (including rehabilitation).

C. Lead-Based Paint
The Subrecipient agrees that any construction or rehabilitation of residentialstructures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning and the advisability and availability of blood lead level screening for children under seven. The notice should also point out that if lead-based paint is found on the property, abatement measures may be undertaken. The regulations further require that, depending on the amount of Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted.

D. Historic Preservation
The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this agreement.

In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state, or local historic property list.

XI. SEVERABILITY
If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.

XII. SECTION HEADINGS AND SUBHEADINGS
The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

XIII. WAIVER
The Grantee’s failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Grantee to exercise or enforce any right or provision shall not constitute a waiver of such right or provision.
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XIV. ENTIRE AGREEMENT
Date
This agreement constitutes the entire agreement between the Grantee and the Subrecipient for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the Grantee and the Subrecipient with respect to this Agreement.

Jan 5, 2022
IN WITNESS WHEREOF, the Parties have executed this contract as of the date first written above.
[Grantee] [Subrecipient]
ByDevin Middlebrook (Jan 6, 2022 09:19 PST) ByCheyenne Purrington (Jan 5, 2022 23:31 PST) Devin Middlebrook, Mayor Cheyenne Purrington, Executive Director Attest
Susan Blankenship, City Clerk
APPROVED AS TO FORM AND LEGAL SUFFICIENCY:

Fed. I. D. # 94-1610868
Heather Stroud Heather Stroud (Jan 5, 2022 16:37 PST)
Heather Stroud, City Attorney
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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C-004-2022 Tahoe Coalition for Homeless
Subrecipient Agreement
Final Audit Report 2022-01-06
"C-004-2022 Tahoe Coalition for Homeless Subrecipient Agree ment" History
Document created by jo Mcdonough ([email protected]) 2022-01-06 - 0:18:01 AM GMT- IP address: 128.92.136.146 Document emailed to Sue Blankenship ([email protected]) for signature 2022-01-06 - 0:19:50 AM GMT
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Email viewed by Heather Stroud ([email protected])
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Document e-signed by Cheyenne Purrington ([email protected]) Signature Date: 2022-01-06 - 7:31:32 AM GMT - Time Source: server- IP address: 184.53.48.62 Created:

By:

Status:
2022-01-06
jo Mcdonough ([email protected])
Signed
Transaction ID: CBJCHBCAABAAYk3iKhzcWkCNa_3_h0pz76h8cqWkCiS0 334
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335
CITYOFSLT.US / (530) 542-6010
1052 Tata Lane South Lake Tahoe, CA 96150
Amendment #3 to Subrecipient Agreement between the City of South Lake Tahoe and Tahoe Coalition for the Homeless
On June 20, 2023, Amendment Number 1 was made to the Subrecipient Agreement between the City of South Lake Tahoe and Tahoe Coalition for the Homeless to extend the time of performance to October 1, 2024.

This Amendment is made on September 10, 2024 to the Subrecipient Agreement entered into as of January 5, 2022 (C-004-2022) by and between the City of South Lake Tahoe, a municipal corporation (“Grantee”) and Tahoe Coalition for the Homeless (“Subrecipient”).

The parties (“Grantee” and “Subrecipient”) hereby agree to the following amended terms:

Section II is hereby amended as follows:

Services of the Subrecipients shall start upon execution of this Agreement and end on March 31, 2026.

All other provisions of the Subrecipient Agreement shall remain in full force and effect. _________________________ ___________________________
Joseph Irvin, City Manager Kimberly Peterson, Executive Director __________________ ________________
Date Date
336
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:13
Agenda Item: Restricted Grant Agreements with the California Department of Transportation Accepting up to $420,517 the South Lake Tahoe Multimodal Mainstreet Corridor Plan Executive Summary: This item includes authorization of a resolution including specific language required by the Sustainable Transportation Planning grant program and designation of the Public Works Director to execute the required grant agreement documents necessary to receive up to $420,517 in grant funds to develop the Corridor Plan.

Requested Action / Suggested Motions: Pass a Resolution authorizing the Public Works Director, or designee, to execute all Restricted Grant Agreements and any amendment thereto with the California Department of Transportation for the South Lake Tahoe Multimodal Mainstreet Corridor Plan, and amending Fiscal Year 2023/2024 budget to appropriate grant funds and matching funds totaling $475,000 to the project account.

Responsible Staff Member: Jason Burke, Complete Streets Program Manager, Andra Burnam, Office Manager
Reviewed and Approved By: Anush Nijad, Director of Public Works Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - CalTrans Grant Agreement.docx
02-Resolution.docx
03-Award Letter.pdf
337
Council Agenda Report September 10, 2024 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Restricted Grant Agreements with the California Department of Transportation for the South Lake Tahoe Multimodal Mainstreet Corridor Plan Location: U.S. Highway 50 and State Route 89, Citywide.

Responsible Staff Member: Jason Burke, Complete Streets Program Manager, Andra Burnam, Office Manager

Background: On November 21, 2023, the City Council approved Resolution 2023-108, authorizing the application for the South Lake Tahoe Multimodal Mainstreet Corridor Plan grant be submitted to the Caltrans Sustainable Transportation Planning Grant program requesting a grant and commitment of the 11.47% grant match and allocated $80,000 in cash match (recently updated to the required $54,483) from the City General Fund. On July 9, 2024, the City was notified that the Sustainable Transportation Planning grant had been award to the Corridor Plan project.

Issue and Discussion: As a part of the conditions for obtaining the Sustainable Transportation Planning grant, the City Council is required to adopt the attached resolution before September 13, 2024 in order to stay on track with the grant schedule. The attached resolution will authorize City staff to negotiate and execute the required agreements and move on to acceptance of the grant funding and issuance of a request for proposals (RFP) for consultant services to assist with the development of the Corridor Plan.

Financial Implications: City Council Resolution 2023-108 committed the city to setting aside up to $80,000 in grant matching funds for the grant application. The project total in the grant is $475,000, with a required 11.47% match in the amount of $54,483, well under the previously authorized amount of $80,000. The $54,483 in undesignated General Fund Reserves will leverage $420,517 in grant funds for this initiative.

Environmental Considerations: The authorization to enter into a grant agreement and complete a planning study and corridor plan is Statutorily Exempt from CEQA under section 15262 (Feasibility and Planning Studies) and Categorically Exempt under section 15305, Class 6 (Information Collection).

Policy Implications: Authorizing City staff to enter a grant agreement will provide funding to complete the necessary community outreach, technical analysis and development of a plan will define improvements to the highways in the City for all types of multi-modal transportation in a manner that is safe and accessible to all. The Project advances the City Council Strategic Priorities and Goals, specifically:
 Action Item 1.4 (Transportation): Building on the US 50 Safety project, develop a corridor plan for Highway 50 from the “Y” to “Stateline”, including major connecting arterials, while identifying options to prioritize alternative modes of transportation such as dedicated bus lanes, bike and pedestrian enhancements and the city-wide gondola. 338
Council Agenda Report September 10, 2024 Page 2 of 2
 Action Item 2.3 (Connectivity): Enhance the connectivity of the community for those on foot and bike, while promoting a car-free culture.
 Action Item 5.3 (Infrastructure and Maintenance): Actively seek funding to develop sustainable infrastructure projects, based on the prioritized capital improvement project list.

The project will also provide greenhouse gas reduction benefits, providing progress on Action #WB-1 of the 2020 Climate Action Plan: Improve bicycle and pedestrian networks. 339
Resolution 2024-XXX September 10, 2024 Page 1 of 2
Resolution 2024-XXX
Adopted by the City of South Lake Tahoe
City Council
September 10, 2024
Authorization to Execute Agreements with the California Department of Transportation for the South Lake Tahoe Multimodal Mainstreet Corridor Plan

BACKGROUND
A. The City of South Lake Tahoe is eligible to receive Federal and/or State funding for certain transportation planning-related plans, through the California Department of Transportation.

B. A Restricted Grant Agreement is needed and will be executed with the California Department of Transportation before such funds can be reimbursed through the Transportation Planning Grant Program.

C. On November 21, 2023, The City Council approved Resolution 2023-108, authorizing the application for the South Lake Tahoe Multimodal Mainstreet Corridor Plan grant application be submitted to the Caltrans Sustainable Transportation Planning Grant program and allocated up to $80,000 (actual needed is $54,483) in grant match from the City General Fund Undesignated Excess Reserve.

D. The grant acceptance authorization, request to delegate authorization to execute the Restricted Grant Agreement and any amendments thereto; the Director of Public Works.

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

1. Authorizes the Public Works Director, or designee, to execute all Restricted Grant Agreements and any amendment thereto with the California Department of Transportation for the South Lake Tahoe Multimodal Mainstreet Corridor Plan.

2. Amends Fiscal Year 2023/2024 budget to allocate up to $420,517 in grant funds to project account 301-50050-33220, transfer $54,483 in City grant matching funds to account 301-50050-36300 and make expenditure appropriations up to $475,000 into account 301-50050-42020 Professional Service in the US HWY 50 Sustainable Transportation project account.

Adopted by the City of South Lake Tahoe City Council on September 10, 2024, by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Cody Bass, Mayor
Attest:
340
Resolution 2024-XXX September 10, 2024 Page 2 of 2
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
341
“Provide a safe and reliable transportation network that serves all people and respects the environment”

DIVISION OF TRANSPORTATION PLANNING
P.O. BOX 942873, MS–32 SACRAMENTO, CA 94273–0001
(916) 261-3326 | TTY 711
www.dot.ca.gov
July 9, 2024te

SENT VIA E-MAIL
On behalf of the California Department of Transportation (Caltrans), Division of Transportation Planning, we are pleased to congratulate you on your Sustainable Transportation Planning Grant award.

Sustainable Transportation Planning Grant Program
Grant Award
Fiscal Year
Grant
Category
Grant Fund
Source
Project Title
Grantee/Agency
Executive Director
Grantee/Agency
Contact
Sub-Recipient(s)
Caltrans District
Contact(s)
Caltrans District
Contact(s) E-mail
Grant Award Local Match
(Cash)
Local Match
(In-Kind)
Total
Local Match
%
Local Match
Total
Project Cost
Conditions of Award Due to Caltrans Grant Expiration Date Final Invoice Due * The final contractually agreed upon Local Match and Fund Source are located on the Grant Application Cover Sheet and Project Cost and Schedule. Any change in Local Match that increases/decreases the Total Project Cost must be approved by Caltrans and may require a Formal Amendment. Each invoice must include the contractual/agreed upon local match % - any deviation to this amount requires an approved Tapered Local Match Amendment prior to invoice submittal. Any change to the Local Match Fund Source requires prior Caltrans approval and an Administrative Amendment. 24-25 Sustainable Communities Competitive SHA South Lake Tahoe Mulitmodal Mainstreet Corridor Plan City of South Lake Tahoe Joe Irvin Anush Nejad Catherine Chiu [email protected] $420,512 $54,483 N/A $54,483 11.47% $475,000 8/16/24 6/30/27 8/29/27 342
Caltrans Sustainable Transportation Planning Grant Program Grant Award

Page 2 ends

“Provide a safe and reliable transportation network that serves all people and respects the environment” Next Steps

1. The Caltrans District Grant Manager will schedule a Conditional Award Meeting with your agency soon.
 The attached specific and general conditions and project revisions necessary to accept grant funding will be discussed at this meeting.

2. The required conditions must be submitted to the Caltrans District Grant Manager no later than the date listed in the table above.
 Failure to satisfy these conditions will result in the forfeiture of grant funds.

3. The Caltrans District Grant Manager will review and approve all items required to fulfill the attached specific and general conditions.

4. Once the required conditions are met and the agreement is executed, the Caltrans District Grant Manager will:
 Send a Notice to Proceed letter (for MPO/RTPAs, this will happen after the OWP/OWPA formal amendment is processed). Grant work cannot begin until the Notice to Proceed letter is received by your agency.  Coordinate and schedule a grant kick-off meeting with your agency.

If you have questions concerning your Conditional Grant Award, please reach out to your Caltrans District contact listed in the table above.

Sincerely,

ERIN THOMPSON
Chief, Office of Regional and Community Planning
Attachments:

Specific and General Conditions
343

Page 1 of 5 ends

Sustainable Transportation Planning Grant Program
Grant Award Specific and General Conditions
Specific Conditions
If Specific Conditions have been identified for this grant, they will be listed below. Please make all necessary revisions to the Grant Application Cover Sheet, Scope of Work (SOW), and/or the Cost and Schedule, and complete the right column to indicate where the specific conditions were addressed.

Specific Conditions
Conditions Addressed
List Document,
Section & Page(s)

1. Include an administrative kick-off meeting with Caltrans as a deliverable for Task 01. 2. Identify the methodology used to create the prioritized list of infrastructure improvements.

4. Identify the authorized signer(s) and email address(s) for the grant agreement that will be routed via Adobe Acrobat Sign

3. For Task 3, ensure outreach efforts are coordinated with tribal communities and address potential language barriers to maximize public input.

5. Complete form STD 1000 - Generative Artificial Intelligence (GenAI) Disclosure & Factsheet 344

Page 2 of 5 ends

Specific Conditions
Conditions Addressed
List Document,
Section & Page(s)
345

Page 3 of 4 ends

General Conditions
Please review the General Conditions below and complete them, as necessary. Most of these items are outlined in the Grant Application Guide, Ch. 6 and Appendix B. • Board Resolution – A current (less than one year old) Local Board Resolution, signed by the governing board that includes the grant project title and job title of the person authorized to enter into a contract with Caltrans, is required to be submitted to Caltrans by September 13, 2024.
• Government Entity Taxpayer ID Form is now required in place of the previously required STD-204. It is required by Caltrans Accounting to ensure payments are sent to the correct recipient and address.
• Generative Artificial Intelligence (GenAI) Disclosure (STD 1000) is a new form now required by Caltrans for all contract submittals. The Solicitation Number field can be left blank. • Scope of Work (SOW) and Project Cost and Schedule (Refer to Grant Application Guide, Appendix B Checklists) These are frequently missed requirements:
o Project Management stand-alone tasks, staff and/or consultant coordination are not allowed. Project Management activities must be charged to the tasks in which they are accrued.
o Include tasks for a kick-off meeting with Caltrans, invoicing, quarterly reporting, and Board adoption or acceptance.
o Ensure the deliverable for the consultant procurement task includes: Request for Proposal (RFP), executed consultant contract, and a copy of your agency’s procurement procedures.
o The earliest project start date is November 4, 2024, with an end date of June 30, 2027.

The Project Cost and Schedule will need be updated to reflect your proposed start date. At least one task must extend to the grant expiration date on June 30, 2027. o Indirect Costs - For Local Government Agencies requesting to bill for indirect costs:

Indirect costs must be identified in the SOW and Project Cost and Schedule, and the indirect cost rate included at the bottom of the Project Cost and Schedule. • Grant Application Cover Sheet and Project Cost and Schedule o Ensure the grant award, local match, and total project costs are consistent with the award letter amounts.
• Grant Application Cover Sheet - Must identify the specific source of cash and in-kind local match funds; and must identify the agency providing the local match. o If your agency is using staff time as a cash match, the application cover sheet must identify the source of local match funds for staff time (e.g., General Fund). o Direct grantee staff time is not an allowable in-kind match and must be identified as cash match.
• Third Party In-Kind Valuation Plan, if applicable - Third-party in-kind contributions consist of goods and services donated from outside the grantee’s agency (e.g., printing, facilities, interpreters, equipment, advertising, staff time, and other goods or services). If utilizing thirdparty in-kind contributions to satisfy the local match requirement:
o Ensure in-kind contribution information is identified on the Grant Application Cover Sheet and Project Cost and Schedule.
o To clarify, sub-recipient staff time, if reimbursed, is considered cash match. If donating their time, it is considered in-kind.
346

Page 4 of 4 ends

o Submit a Third-Party In-kind Valuation Plan. The district can provide a copy of the valuation plan checklist and template.
• Ensure Consistency - All changes made to the Grant Application Cover Sheet, SOW, and Project Cost and Schedule are made consistently in all documents.

Grant Administrative Requirements
Refer to the Grant Application Guide, Ch. 6, and the Restricted Grant Agreement boilerplate for a detailed overview of the Grant Administrative Requirements that must be adhered to over the life of the project. In summary:
• Third Party Contracts - Competitive consultant procurement, i.e., Request for Proposals (RFP) is required for all grant projects.
o If there is a consultant on-board, ensure the process to procure the consultant was a competitive process (documentation must be provided to Caltrans); the grant work must have been part of the original RFP.
o If using an on-call consultant list, the process for establishing the list must be competitive and less than five years old (documentation must be provided to Caltrans) o If the consultant helped to prepare the Project Scope of Work or grant application, they shall not be considered in the consultant procurement. • Quarterly Reporting – Quarterly Progress Reports (a narrative of completed project activities) are submitted on a quarterly basis.
• Invoicing and Financial Requirements –
o Maintain a proper accounting system (MS Excel is unacceptable). o Request for Reimbursements/invoices (RFRs) at least quarterly, but no more than monthly.
 One-time, lump sum invoices are not allowed.
 If requesting reimbursement of indirect costs, a copy of the ICAP/ICRP acceptance letter must be submitted with the first invoice.
 Local match commitments must be satisfied with every RFR/invoice, including any local match amount above the minimum amount. If you are unable to meet this commitment, coordinate with your district Contract Manager.  All work must be completed by June 30, 2027.
 Final RFR/invoice and the final product are due no later than August 29, 2027.  The final RFR/invoice will not be processed without the final product. o An Indirect Cost Allocation Plan/Indirect Cost Rate Proposal (ICAP/ICRP) must be submitted each year to the Inspector General Independent Office of Audits and Investigations for approval. Instructions for submitting an ICAP/ICRP are available at the following webpage: https://ig.dot.ca.gov/resources
• Grant Amendments - Proposed changes to the Grant Application Cover Sheet, SOW, and Project Cost and Schedule (e.g., local match amount, fund source, movement of funds) will require an Amendment and Caltrans approval. Please contact Caltrans for guidance on this process.
347
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:14
Agenda Item: Fiscal Year 2024-2025 Investment Policy and Authority Executive Summary: City Council will formally consider the City's Investment Policy, and reaffirm the use of this policy for fiscal year 2024-2025. California law requires all public agencies to annually present a formal investment policy to City Council approval. The fiscal year 2024-2025 policy is submitted with several changes which are explained in the staff report and are identified in the attached Exhibit A. The policy formally delegates investment authority to the City Treasurer, and grants the City Manager the formal authority to assign a second official (Finance Director) to perform investment management during absences of the City Treasurer. The policy prioritizes safety, liquidity, and then yield, and establishes various limits on the term, percentage of the City's portfolio authorized in various instruments and caps on investments in various instruments, and prohibits certain types of investments deemed to carry greater risk. City staff presents a report on the status of the City's investments on a quarterly basis. The most recent, June 30, 2024 report will be presented at September 24, 2024 council meeting with the next report scheduled for December. The City's primary investment instrument is the Local Agency Investment Fund (LAIF), a California state pool (approximately 50% of the City's portfolio as of the quarter ended June 30, 2024). LAIF is highly liquid, safe, and typically generates a competitive yield (4.48% as of the end of the June 30, 2024 quarter). The City's other primary investment instruments are Government Agency funds and certificates of deposit.

Requested Action / Suggested Motions: Pass a Resolution delegating investment authority to the City Treasurer and adopting the City Investment Policy for the fiscal year from October 1, 2024 to September 30, 2025.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report - Investment Policy 2024-2025.docx
02-Resolution - Investment Policy 2024-2025.docx
03-Investment Policy - 2024-2025 (Exh. A to Reso).pdf
04-Investment Policy - 2024-2025 redline.pdf
348
Council Agenda Report- September 10, 2024 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Fiscal Year 2024-2025 Investment Policy
Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 David Olivo, City Treasurer (530) 307-8972
Background: California State Law requires all public agencies to reduce to writing the investment policy that is followed for investing agency funds.

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

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

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

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

Added COVER PAGE and TABLE OF CONTENTS.

I. POLICY – Changed opening paragraph to better explain the City’s policy.

VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS – Created preferable explanation of the City’s broker/dealers and investment services they are to provide.

VIII. AUTHORIZED AND SUITABLE INVESTMENTS – Updated the list to add money market mutual funds to types of securities the City can invest in.

XII. DIVERSIFICATON – Minor clean up and clarifying changes. 349
Council Agenda Report- September 10, 2024 Page 2 of 2
XV. PERFORMANCE STANDARDS – Changed within lines from “to augment returns above the market” to “returns in the range of the average rate of return” which more fittingly represents the City’s goals.

ATTACHMENT B – Removed. It is not required by Californian Government Code section 53601.

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

Environmental Considerations: These policy additions and amendments are not a project requiring review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).

Policy Implications: Updating the investment policy yearly ensures it is in compliance with California State law.
350
Resolution 2024-XXX September 10, 2024 Page 1 of 1
Resolution 2024-XXX
Adopted by the City of South Lake Tahoe
City Council
September 10, 2024
Delegating investment authority to the City Treasurer and reconfirming and adopting the City Investment Policy for the fiscal year October 1, 2024 through September 30, 2025

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

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

C. The Fiscal Year 2024-2025 policy presented for Council review and approval is submitted with several changes which are explained in the staff report and are incorporated in the attached Exhibit A.

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

1. Hereby reconfirms and adopts the Fiscal Year 2024-2025 Investment Policy (attached hereto as Exhibit A).

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

Adopted by the City of South Lake Tahoe City Council on September 10, 2024 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ 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.
351

CALIFORNIA
Investment Policy
Fiscal Year 2024-2025
352
City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2024-2025
2 Contents
I. POLICY ................................................................................................................................... 3 II. SCOPE .................................................................................................................................... 3 III. PRUDENCE ......................................................................................................................... 3 IV. OBJECTIVE ......................................................................................................................... 4 V. DELEGATION OF AUTHORITY ...................................................................................... 4 VI. ETHICS AND CONFLICT OF INTEREST ..................................................................... 5 VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ................................ 5 VIII. AUTHORIZED AND SUITABLE INVESTMENTS .................................................... 6 IX. INVESTMENT POOLS/MUTUAL FUNDS ..................................................................... 6 X. COLLATERIZATION ......................................................................................................... 7 XI. SAFEKEEPING AND CUSTODY ..................................................................................... 7 XII. DIVERSIFICATION ......................................................................................................... 7 XIII. MAXIMUM MATURITIES .......................................................................................... 10 XIV. INTERNAL CONTROL ................................................................................................ 10 XV. PERFORMANCE STANDARDS ................................................................................... 10 XVI. REPORTING ................................................................................................................... 11 XVII. INVESTMENT POLICY ADOPTION ....................................................................... 12 XVIII. GUIDELINES............................................................................................................... 12 ATTACHMENT A: INVESTMENT GUIDELINES SUMMARY TABLE.……………….14 GLOSSARY................................................................................................................................. 15 353
City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2024-2025
3 I. POLICY
This policy is intended to provide guidelines for the prudent investment of the City of South Lake Tahoe’s (City) funds and to enhance the economic status of the City while protecting its pooled cash. Funds will be invested in accordance with this policy and with applicable sections of the California Government Code.

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

III. PRUDENCE
The standard of prudence to be used for managing the City's investments shall be California Government Code Section 53600.3, the prudent investor standard, which states “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
354
City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2024-2025
4 IV. OBJECTIVE

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

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

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

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

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

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

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

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

355
City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2024-2025
5 VI. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which would impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City.

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

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

1. The City Treasurer will maintain a list of financial institutions and broker/dealers authorized to provide investment services to the City who are authorized to provide investment services in the State of California. An eligible designation does not guarantee that the City will do business with the firm or institution;

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

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

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

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

1.5 Must provide current audited financial statements.

1.6 Must provide proof of Financial Industry Regulatory Authority certification.

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

2.1 Current audited financial statements.

2.2 Depository contracts.

2.3 Proof that the institution is State or Federally chartered. 356
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6 VIII. AUTHORIZED AND SUITABLE INVESTMENTS
The City is empowered by statute to invest in the following types of securities: (see Section XII for a description of each investment type)

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

2. Bankers’ Acceptances.

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

4. Commercial Paper.

5. Medium-Term Corporate Notes.

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

7. Negotiable Certificates of Deposit.

8. Passbook Savings Account Demand Deposits.

9. Government Security Mutual Funds.

10. Money Market Mutual Funds.

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

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

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

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

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

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

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

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

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

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

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

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

1. Certificate of Deposit: Certificates of deposit of up to $250,000 are federally insured. 358
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8 Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities.

Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 25 percent of the portfolio (GC 53601(i)). In addition, time deposits shall be placed in institutions meeting all capital requirements and which maintain a rating equivalent to FDIC rating of "One" or "Two" or a Sheshunoff performance rating of A or better.

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

Maximum 5% invested per issuer. (Note: California Government Code allows a maximum of 40%).

3. Securities of the U.S. Government or its Agencies: Maximum maturity is five years.

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

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

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

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

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

8. Passbook Savings Account Demand Deposits: This account shall be maintained solely for the following purposes:
a. Investment of amounts over $100,000.00 received too late in the day to invest in other instruments; or,
b. Investment of amounts under $100,000.00 for periods of up to ten working days in order to fine-tune cash flow and minimize LAIF transactions in a given month. 359
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9 9. Government Security Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53601, are permitted investments. Section 53601(l) further defines requirements. A maximum of 20 percent of the portfolio may be so invested.

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

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

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

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

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

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

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

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

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

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

XV. PERFORMANCE STANDARDS
The investment portfolio will be designed to attain at least a market-average rate of return during budgetary and economic cycles. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek returns in the range of the average rate of return of the 2-year CMT (Constant Maturity Treasury) whose maturity most closely matches the average maturity of the portfolio. In addition, the City portfolio will be compared with LAIF and the goal is to maintain a higher positive annual yield than LAIF’s annual yield.
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11 1. Investment Strategy: The City’s investment strategy is to buy and hold investments until maturity. However, the Treasurer may sell a security due to adverse changes in credit risk or due to unexpected cash flow needs.

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

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

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

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

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

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

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

Financial Statements per GASB #40 – Effective June 30, 2005, additional disclosure is required. City Treasurer will provide detailed maturity and rating information to Finance to be incorporated in the Annual Comprehensive Financial Report (ACFR). 362
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12 XVII. INVESTMENT POLICY ADOPTION
The City’s investment policy shall be adopted by resolution of the City’s legislative authority. Per Government code, the policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.

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

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

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

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

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

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

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

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

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

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

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

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

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

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14 Attachment A:

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

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

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

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

PERMITTED INSTRUMENTS

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

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

ASKED: The price at which securities are offered.

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

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

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

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

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

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

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

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

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

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

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon national amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities.) 366
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16 DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

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

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

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

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

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

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

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

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

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system. 367
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17 GOVERNMENTAL NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

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

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

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

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

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

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

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

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

Open market operations are the Federal Reserves most important and most flexible monetary policy tool.
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18 PORTFOLIO: Collection of securities held by an investor.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CALIFORNIA
Investment Policy
Fiscal Year 2023-2024-2025
I. POLICY
It is the
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Fiscal Year 2023-2024-2025
2 Contents
I. POLICY ................................................................................................................................... 3 II. SCOPE .................................................................................................................................... 3 III. PRUDENCE ......................................................................................................................... 3 IV. OBJECTIVE ......................................................................................................................... 4 V. DELEGATION OF AUTHORITY ...................................................................................... 4 VI. ETHICS AND CONFLICT OF INTEREST ..................................................................... 5 VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ................................ 5 VIII. AUTHORIZED AND SUITABLE INVESTMENTS .................................................... 6 IX. INVESTMENT POOLS/MUTUAL FUNDS ................................................................... 76 X. COLLATERIZATION ......................................................................................................... 7 XI. SAFEKEEPING AND CUSTODY ..................................................................................... 7 XII. DIVERSIFICATION ....................................................................................................... 87 XIII. MAXIMUM MATURITIES .......................................................................................... 10 XIV. INTERNAL CONTROL ................................................................................................ 10 XV. PERFORMANCE STANDARDS ............................................................................... 1110 XVI. REPORTING ................................................................................................................... 11 XVII. INVESTMENT POLICY ADOPTION ....................................................................... 12 XVIII. GUIDELINES............................................................................................................... 12 ATTACHMENT A: INVESTMENT GUIDELINES SUMMARY TABLE………….……….14 GLOSSARY............................................................................................................................. 1715 Formatted: Hyperlink, Font: Bold, Do not check spelling or grammar
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City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2023-2024-2025
3 I. POLICY
This policy is intended to provide guidelines for the prudent investment of the City of South Lake TahoeTahoe’s (City) to invest public funds in a manner whichand to enhance the economic status of the City while protecting its pooled cash. Funds will provide the highest investment returnbe invested in accordance with the maximum security while meeting the daily cash flow demands of the entity and conforming to all statethis policy and local statutes governing the investmentwith applicable sections of public fundsthe California Government Code.

III. PRUDENCE
The standard of prudence to be used for managing the City's investments shall be California Government Code Section 53600.3, the prudent investor standard, which states “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, Formatted: Font: Times New Roman, 12 pt, Font color: Text 1 Formatted: Heading 1
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Investment Policy
Fiscal Year 2023-2024-2025
4 including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
.

IV. OBJECTIVE

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

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

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

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Investment Policy
Fiscal Year 2023-2024-2025
5 1. Investment Procedures: The City Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, SIFMA master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority of persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.

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

1. On an annual basis, the Treasurer shall recommend a list of at least three The City Treasurer will maintain a list of financial institutions and broker/dealers authorized to provide investment services to the City who are authorized to provide investment services in the State of California. An eligible designation does not guarantee that the City will do business with the firm or institution;
broker/dealers who are authorized to provide investment services. The list shall be approved by the City Council. All broker/dealers who wish to be considered for the list must meet the following minimum requirements;

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

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

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

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Investment Policy
Fiscal Year 2023-2024-2025
6 1.4 Must have been in business for at least three years.

1.5 Must provide current audited financial statements.

1.6 Must provide proof of Financial Industry Regulatory Authority certification.

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

2.1 Current audited financial statements.

2.2 Depository contracts.

2.3 Proof that the institution is State or Federally chartered.

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

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

2. Bankers’ Acceptances.

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

4. Commercial Paper.

5. Medium-Term Corporate Notes.

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

7. Negotiable Certificates of Deposit.

8. Passbook Savings Account Demand Deposits.

9. Government Security Mutual Funds.

10. Bonds, Notes or California State and Local Agencies Money Market Mutual Funds.
11 11. Bonds, Notes or California State and Local Agencies.

12. Bond proceeds may be invested as authorized by California Government Code 53601(m) but may also be invested in authorized investments as outlined in bond covenants and agreements.
1213. Notes, Bonds and other securities of all fifty United States. 1314. Supranationals
Attachment A: Investment Guidelines Summary Table
Prohibited Investments: The following investments are either prohibited by law or authorized by law and prohibited by the City Treasurer. Under Provisions of California Code 53601.6 the City shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools or any investment that may result in a zero-interest accrual if held to maturity. Also, the City shall not invest in Reverse Repurchased Agreements and Mortgage Pass Through Securities.

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Investment Policy
Fiscal Year 2023-2024-2025
7 IX. INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/funds is required prior to investing, and on a quarterly basis. There shall be a questionnaire developed which will answer the following general questions:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced, and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? X. COLLATERIZATION
Collateralization will be required on two types of investments: certificates of deposit and sweep checking accounts. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value of principal and accrued interest.

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

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City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2023-2024-2025
8 XII. DIVERSIFICATION
The City will diversify its investments by security type and institution in order to reduce portfolio risk while maintaining market average rates.

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

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

Maximum 5% invested per issuer. (Note: California Government Code allows a maximum of 40%).

3. Securities of the U.S. Government or its Agencies: Maximum maturity is five years.

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Investment Policy
Fiscal Year 2023-2024-2025
9 6. Local Agency Investment Fund (State Pool): The investment with LAIF may not, by state regulation, exceed $75 million. LAIF transactions, by LAIF guidelines, are not to exceed 15 per month.

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

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

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

12. Bond Proceeds: Section 53601 (m) allows greater flexibility with respect to the types of investments that may be made with bond proceeds. Specifically, the law permits money from 379
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Investment Policy
Fiscal Year 2023-2024-2025
10 bond proceeds, obligations under a lease, installment sales, or other agreements of a local agency to be invested in any security that meets the statutory provisions governing the issuance of the bond or other agreements made by the issuing agency. In doing so, this section of the code recognizes that outstanding contracts between issuers and bond holders may not comply with the investment statutes and gives local agencies greater discretion in how to invest bond proceeds.

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

The Finance department shall establish a system of internal controls, which shall be documented in writing. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial Formatted: Font: Times New Roman, 12 pt, Font color: Text 1 Formatted: Heading 1
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Investment Policy
Fiscal Year 2023-2024-2025
11 markets, or imprudent actions by employees and officers of the City. Controls deemed most important include; control of collusion, separation of duties, separating transition authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, written confirmation of telephone transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and ethical standards.

XV. PERFORMANCE STANDARDS
The investment portfolio will be designed to attain at least a market-average rate of return during budgetary and economic cycles. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek to augment returns abovein the marketrange of the average rate of return as shown onof the average2-year CMT (Constant Maturity Treasury) whose maturity most closely matches the average maturity of the portfolio. In addition, the City portfolio will be compared with LAIF and the goal is to maintain a higher positive annual yield than LAIF’s annual yield.

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

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

Periodic Reports – If any, the City Treasurer will provide a monthly transaction report of all investments including any pooled investment fund portfolio to the City Council, City Manager, Chief Financial Officer and City Clerk. Also, within thirty days of the end of each quarter a full report of the City's operational cash investment portfolio report will be provided 381
City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2023-2024-2025
12 with additional information such as market pricing. This report shall include the type of investment, issuer, date of maturity, par and dollar amount invested in all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund (LAIF), the report shall also include a current market value as of the date of the report and shall include the source of this same valuation.

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

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

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

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

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

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

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Investment Policy
Fiscal Year 2023-2024-2025
13 4. Cash Forecast: The cash flow for the local agency should be analyzed with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements.

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

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

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

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

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Investment Policy
Fiscal Year 2023-2024-2025
14 Attachment A:

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

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

PERMITTED INSTRUMENTS

California State and Local Agencies
5 years / 20% max / 5% per issuer
Bond Proceeds See section XII - number 11
U.S. Treasuries Notes and Bonds 5 years / no limit
Supranationals 5 years / 30% max / AA rated
Reverse Repurchase Agreements Not allowed
Mortgage Pass Through Securities Not allowed
Repurchase Agreements Not allowed
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Investment Policy
Fiscal Year 2023-2024-2025
15 These credit limits apply at the time of the initial purchase of the said security and a subsequent change in rating status does not necessarily force the sale or disposition of the investment. In the event that the security is later downgraded below minimum required levels, the Treasurer and City staff will assess the risk exposure, make a decision on the course of action, and advise the City council.

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Investment Policy
Fiscal Year 2023-2024-2025
16 Attachment B:

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

Douglas Robinson – Osaic, Inc. (RCM Robinson Capital)
27 Reed Blvd.

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

San Francisco, CA 94105
(415) 644-9026
Rene Molina – Mutual Securi2es
807-A Camarillo Spring Rd.

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

Don Collins – Wedbush Securi2es
500 Newport Center Dr. #850
Newport Beach, CA 92660
(949) 719-3237

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Investment Policy
Fiscal Year 2023-2024-2025
17 GLOSSARY
AGENCIES: Federal agency securities.

ASKED: The price at which securities are offered.

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

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

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

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

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

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

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

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon national amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities.) Formatted: Font: Times New Roman, 12 pt, Font color: Text 1 Formatted: Heading 1, Tab stops: Not at 3.28"
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18 DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

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

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

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system. 388
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Investment Policy
Fiscal Year 2023-2024-2025
19 GOVERNMENTAL NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

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

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

Open market operations are the Federal Reserves most important and most flexible monetary policy tool.
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20 PORTFOLIO: Collection of securities held by an investor.

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

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

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

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

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

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

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

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

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

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 391
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:15
Agenda Item: Permanent Local Housing Allocation (PLHA) Grant Amendment Executive Summary: On March 12th, staff anticipated the use of $140,000 in funds from the Community Development Block Grant (CDBG) Program Income Fund 255 for this project. However, the California Department of Housing and Community Development (HCD) denied the use of funds for ADUs which changed since City staff originally requested the use. Staff identified the use of Permanent Local Housing Allocation (PLHA) Formula funds to be used since $223,018 does not yet have a designated use. To use PLHA formula funds, staff must submit another amendment to HCD to the following additional eligible activity.

Requested Action / Suggested Motions: Pass a Resolution authorizing an amendment to the PLHA application that was initially authorized by Resolution 2020-060 and amended in Resolution 2023-095 to be utilized for the Preapproved Accessory Dwelling Unit plans.

SB 2 established a Fund and authorized HCD to allocate 70 percent of moneys collected and deposited in the Fund, beginning in calendar year 2019, to local governments for eligible housing and homelessness activities. The intent of the bill is to provide a permanent, on-going source of funding to local governments for housing-related projects and programs that assist in addressing the unmet needs of their communities. Under the Formula PLHA program, the City of South Lake Tahoe is eligible to receive up to $994,219 over five years. The City has been awarded with the first, second, and third year-allocation totaling $729,776. Staff responded to the fourth round NOFA in June 2024. There is also a competitive PLHA grant in which Sugar Pine Village was awarded $5,000,000 in both 2021 and 2022 totaling $10,000,000.

On July 14, 2020, the City Council adopted Resolution No. 2020-060 to authorize an application for, and receipt of, PLHA funds to fund a first-time homebuyer down payment assistance program. The City was awarded, and the Standard Agreement was executed on June 21, 2021.

On November 7, 2023, the City Council adopted Resolution 2023-095 authorizing the amendment to the PLHA application that was initially authorized and expanded the eligible activities per the PLHA Final Guidelines to include the following:

1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is Affordable to Extremely low-, Very low-, Low-, or moderate-income households, including necessary operating subsidies.

6. Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

9. Homeownership opportunities, including, but not limited to, down payment assistance.

Issue and Discussion: On March 12, 2024 the City Council directed staff to develop a Request for Proposal (RFP) to procure a consultant to develop Preapproved Accessory Dwelling Unit (ADU) plans.   A Request for Proposals (RFP) was released on June 14, 2024 with proposals due on July 19, 2024. 393
Council Agenda Report- September 10, 2024 Page 2 of 3
On March 12th, staff anticipated the use of $140,000 in funds from the Community Development Block Grant (CDBG) Program Income Fund 255. However, The California Department of Housing and Community Development (HCD) denied the use of funds for ADUs which changed since City staff originally requested the use. Staff identified the use of Permanent Local Housing Allocation (PLHA) Formula funds to be used since $223,018 does not yet have a designated use. To use PLHA formula funds, staff must submit another amendment to HCD to the following additional eligible activity.

It is recommended that the City Council adopt the resolution (Attachment 2) authorizing an amendment to the PLHA application that was initially authorized by Resolution 2020-060 and amended in Resolution 2023-095. To provide the greatest flexibility of uses, the expanded eligible activities per the PLHA Final Guidelines include the following:

2. The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory dwelling units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas.

ADUs shall be available for occupancy for a term of no less than 30 days.

9. Homeownership opportunities, including, but not limited to, down payment assistance.

Financial Implications: On March 12 City Council directed to establish a potential Preapproved ADU design program, it is anticipated that additional financial resources, including staff time, would be required.

The anticipated $140,000 in funds available from Community Development Block Grant (CDBG) Program Income Fund 255 rejected the use for Preapproved ADUs. Staff identified the use of Permanent Local Housing Allocation (PLHA) Formula funds to be used since $223,018 does not yet have a designated use.

To use PLHA formula funds, staff must submit another amendment to HCD to the following additional eligible activity and the PLHA funds have been received and appropriated in the budget. The anticipated Professional Services Agreement with Workbench will contain a not to exceed amount of $125,000 to allow for flexibility in the scope of work and will be brought to city council once HCD’s approval is obtained for the expanded eligible activities for the use of PLHA funds.

Environmental Considerations: The recommendation in this report is not a project under CEQA, because it does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(2) and 15378(b)(4) and is, therefore, not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).

Policy Implications: Exploring the feasibility of a local discretionary funding source to leverage access to and increase competitiveness for outside funds is identified as an action item within the City Council’s Strategic Plan.

The discussed action would be consistent with the following adopted General Plan Housing Element policies and programs:
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Program 1-4 The City shall work with affordable, workforce, and other multifamily housing proponents to direct them to Community Plan or Area Plan areas where incentives are already in place to allow for the additional coverage that could enable achievement of the densities necessary to make a project “pencil out.” The City will also seek opportunities to incentivize the construction of new housing to serve large renter households.

Policy 1-10 The City shall actively seek opportunities to obtain federal, state, and local funding for affordable housing and community development and implementation of General Plan policies and programs to support housing affordability, community development and safety.

Policy 2-1 The City shall ensure a stable community by helping tenants to become homeowners and preserving the ability for residents to afford housing in the community where they grew up.

Policy 2-3 The City shall encourage a range of housing options so that people who work in South Lake Tahoe can choose to live in the city.

Policy 2-5 The City shall recognize that it will become difficult to attract employees if they cannot afford to purchase or rent housing in South Lake Tahoe. The City shall encourage and support programs and activities that create a robust local economy that provides residents with good paying employment and the means to purchase and/or rent housing in the City.

Policy 2-9 The City shall strive to provide housing opportunities that are affordable for workers earning between 60 and 180 percent of the area median income. The City recognizes that police and fire personnel, schoolteachers, nurses, and other public service employees are an essential component of the local workforce.
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_______________________
___________________________________________________________________ AUTHORIZING RESOLUTION OF ________________________________

AUTHORIZING THE APPLICATION AND AMENDING THE PLHA PLAN FOR THE

PERMANENT LOCAL HOUSING ALLOCATION PROGRAM
_______________________________________________ of the
_____________________________________________________________ of ____________________________________________________________________ __________________________ hereby consents to, adopts, and ratifies the following resolution:

A. WHEREAS, the Department is authorized to provide up to $296 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)).

B. WHEREAS, the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated 12/29/2023 under the Permanent Local Housing Allocation (PLHA) Program;
C. WHEREAS, ____________________________ is an eligible Local government who has applied for program funds to administer one or more eligible activities, or a Local or Regional Housing Trust Fund to whom an eligible Local government delegated its PLHA formula allocation.

D. WHEREAS, the Department may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement, and other contracts between the Department and PLHA grant recipients;
NOW THEREFORE BE IT RESOLVED THAT:

1. If Applicant receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts Applicant may have with the Department.
396

2. Applicant is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula allocations, as stated in Appendix B of the current NOFA ____________________ in accordance with all applicable rules and laws.

3. Applicant hereby agrees to use the PLHA funds for eligible activities as approved by the Department and in accordance with all Program requirements, Guidelines, other rules, and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department.

4. Pursuant to Sections 302(c)(4) and 302(c)(5) of the Guidelines, Applicant’s PLHA Plan Amendment for the 2020-2023 Allocations is attached to this resolution, and Applicant hereby adopts this PLHA Plan Amendment and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines.

5. If applicable: Applicant certifies that it was delegated by ______________________ to submit an application on its behalf and administer the PLHA grant award for the formula allocation of PLHA funds, pursuant to Guidelines Section 300(c) and 300(d), and the legally binding agreement between the recipient of the PLHA funds and the Applicant is submitted with the PLHA application.

6. If applicable: Applicant certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3), “entity” means a housing developer or program operator, but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation.

7. If applicable: Applicant certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest.

8. If applicable: Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements.

9. If applicable: Applicant certifies that, if funds are used for the acquisition, construction or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302(c)(6)(A), (B) and (C).

10. If applicable: Applicant certifies that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project, and such loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall restrict occupancy and rents in accordance with a Local government-approved underwriting of the Project for a term of at least 55 years. 397

11.Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department.

12. _________________________ is/are authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate.

PASSED AND ADOPTED at a regular meeting of the ______________________ this _________ day of, ______________ 2024, by the following vote:

AYES: ___________ ABSTENTIONS: ___________ NOES: ___________ ABSENT: ___________ Signature of Approving Officer: ________________________________ _____________________________
INSTRUCTION: The attesting officer cannot be the person identified in the resolution as the authorized signor.

CERTIFICATE OF THE ATTESTING OFFICER
The undersigned, Officer of _________________________ does hereby attest and certify that the ______________________________ Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the ______________________________ which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.

ATTEST: _________________________ Signature of Attesting Officer _________________________________
Print Name and Title of Attesting Officer
398
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:16
Agenda Item: Conflict of Interest Code Update
Executive Summary: The Political Reform Act, Government Code Sections 87300 and 87306 and 2 Cal. Code of Regulations Section 18730 requires government agencies to review and update their Conflict of Interest Codes every two years. Designated employees are the persons holding positions listed in Appendix A who have been determined to make or participate in the making of decisions which may foreseeably have a material effect on economic interests. These designated employees are required to file Statements of Economic Interest (Form 700) annually and upon assuming and leaving office with the California Fair Political Practices Commission (FPPC).

Requested Action / Suggested Motions: Pass a Resolution approving updates to the City's Conflict of Interest Code.

Responsible Staff Member: Susan Blankenship, City Clerk, and Michelle Davis, Assistant City Clerk Reviewed and Approved By: Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01- Staff Report - Conflict of Interest Code.docx
02- Resolution-Conflict of Interest Code Update.docx
03-Appendix A & B Redline.pdf
04-Appendix A & B Clean.docx
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Council Agenda Report- September 10, 2024 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Conflict of Interest Code Update
Location: Citywide
Responsible Staff Member: Susan Blankenship, City Clerk and Michelle Davis, Assistant City Clerk
Background: The Political Reform Act, Government Code Sections 87300 and 87306 and 2 Cal. Code of Regulations Section 18730 requires government agencies to review and update their Conflict of Interest Codes every two years.

The last update to the City’s Conflict of Interest Code was approved by Council on October 4, 2022 (Resolution 2022-124). It is necessary at this time to update the City’s Conflict of Interest Code, Appendix A, to reflect new positions and reclassifications over the past two years.

Designated employees are the persons holding positions listed in Appendix A who have been determined to make or participate in the making of decisions which may foreseeably have a material effect on economic interests. These designated employees are required to file Statements of Economic Interest (Form 700) annually and upon assuming and leaving office with the California Fair Political Practices Commission (FPPC). Form 700 identifies employee conflicts of interest and serves as a reminder for them to abstain from decision-making processes that involve these conflicts. Form 700 provides transparency and accountability by providing necessary information to the public about an official’s personal financial interests to ensure they are making decisions in the best interest of the public.

The City Clerk and City Attorney have reviewed the City’s Conflict of Interest Code and set forth proposed amendments (02- Appendix A - Redline).

Financial Implications: The fiscal impacts associated with this State unfunded mandate for the administration of the program by the City Clerk’s Department are included in the annual staff budget.

Environmental Considerations: These policy additions and amendments are not a “project” subject to review under CEQA Guidelines Section 15378(b)(2) (continuing administrative or maintenance activities, such as general policy and procedure making). 400
Council Agenda Report- September 10, 2024 Page 2 of 2
Policy Implications: Adoption of this resolution is consistent with the regulations set forth by the FPPC which are mandated upon public agencies, and advances the public interest in transparency and accountability of the City’s decisionmaking. 401
Resolution 2024-XXX
Adopted by the City of South Lake Tahoe
City Council
September 10, 2024
Updating the City’s Conflict of Interest Code
(Replaces Resolution 2022-124)

BACKGROUND
A. The Political Reform Act of 1974, Government Code Section 87300, et seq., requires state and local government agencies to adopt and promulgate conflict interest codes.

B. The Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Regs. Section 18730, which contains the terms of a standard conflict of interest code.

C. Such standard terms can be incorporated by reference and may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments in the Political Reform Act.

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

1. Incorporates by reference the terms of 2 Cal. Code of Regs. Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission, and adopts the conflict of interest code comprised of the attached Appendix A, in which officials, boards and commission members and employees are designated, and Appendix B, in which disclosure categories are set forth.

2. Directs designated employees to file statements of economic interests with the City Clerk, all of which will be made available for public inspection and reproduction (upon request) pursuant to Government Code 81008.

Adopted by the City of South Lake Tahoe City Council on September 10, 2024 by the following vote:
402
________________________ 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.

403
404
Appendix A
Position Disclosure Category
Accountant I/ll 1
Airport Land Use Commissioner 1
Airport Manager 1
Arts, Culture and Tourism Commissioner 1
Assistant City Attorney 1
Assistant to the City Manager 1
Associate Architect 1
Assistant/Associate Civil Engineer 1
Assistant/Associate/Principal Management Analyst 1
Assistant/Associate/Senior Planner 1
Building / ADA Board of Appeals Commissioner 1
Building Inspector/Official 1
Capital Program and Facilities Program Manager 1
Chief of Police 1
City Clerk 1
Code Compliance Investigator 1
Communications and Projects Specialist 1
Community Services Officer/Senior/Supervisor 1
Community Services Officer Supervisor 1
Complete Streets Program Manager 1
Director of Development Services 1
Director of Finance 1
Director of Parks & Recreation 1
Director of Public Works 1
Engineering Manager 1
Events Coordinator 1
405
Executive Assistant (Police) 1
Fire Chief 1
Fire Battalion Chief 1
Fire Safety Inspector l/II 1
Fire Marshal 1
Fleet Supervisor 1
GIS Analyst 1
Housing Inspector Housing Program Coordinator 1
Housing Manager 1
Human Resources Manager 1
Independent Citizens Oversight Board Member 1
Information Systems Technology Supervisor 1
Maintenance Manager- Fleet, Streets, Facilities, Parks 1 Management Analyst 1
Network Systems Administrator 1
Office Manager 1
Parks and Recreation Commissioner 1
Planning Manager/Environmental Planner 1
Police Lieutenant 1
Police Sergeant (Code Enforcement) 1
Principal Human Resources Analyst 1
Recreation Manager 1
Resident Engineer/Inspector 1
Risk Manager 1
Senior/Primary Building Inspector 1
Sustainability Coordinator 1
*Consultants 1
406
Appendix B
Disclosure Category 1:Must report all interests in real property located within the jurisdiction, as well as investments, business positions and sources of income, including gifts, loans and travel payments.
*Consultants shall be included in the list of designated employees and may be required to file a State of California, Fair Political Practices Commission, Statement of Economic Interests form. If a consultant participates in making financial decisions, said consultant is required to disclose certain types of information so that the public can be made aware of any potential conflict of interest. This form must be filed each year and is a public document. However, the following limitation may apply:

The City Manager may determine in writing that a particular consultant, although a “designated position” is hired to perform a range of duties that is limited in scope and thus is not required to comply fully with the disclosure requirements described in this section. Such determination shall include a description of the consultant’s duties and based upon that description, a statement of the extent of disclosure requirements. The City Manager’s determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code.

The following positions are NOT covered by this code, because they are required to file full disclosure with the Fair Political Practices Commission under Section 87200, and therefore, are listed for informational purposes only:

City Councilmembers
City Attorney
City Manager
City Treasurer
City Planning Commissioners
407
Appendix A
Position Disclosure Category
Accountant I/ll 1
Airport Land Use Commissioner 1
Airport Manager 1
Arts, Culture and Tourism Commissioner 1
Assistant City Attorney 1
Assistant City Manager 1
Associate Architect 1
Assistant/Associate Civil Engineer 1
Assistant/Associate/Principal Management Analyst 1
Assistant/Associate/Senior Planner 1
Building / ADA Board of Appeals Commissioner 1
Building Inspector/Official 1
Capital Program and Facilities Program Manager 1
Chief of Police 1
City Clerk 1
Code Compliance Investigator 1
Communications and Projects Specialist 1
Community Services Officer/Senior/Supervisor 1
Community Services Officer Supervisor 1
Complete Streets Program Manager 1
Director of Development Services 1
Director of Finance 1
Director of Parks & Recreation 1
Director of Public Works 1
Engineering Manager 1
Events Coordinator 1
Executive Assistant (Police) 1
408
Fire Chief 1
Fire Battalion Chief 1
Fire Safety Inspector l/II 1
Fire Marshal 1
GIS Analyst 1
Housing Program Coordinator 1
Housing Manager 1
Human Resources Manager 1
Independent Citizens Oversight Board Member 1
Information Systems Supervisor 1
Maintenance Manager- Fleet, Streets, Facilities, Parks 1 Network Systems Administrator 1
Office Manager 1
Parks and Recreation Commissioner 1
Planning Manager/Environmental Planner 1
Police Lieutenant 1
Police Sergeant (Code Enforcement) 1
Principal Human Resources Analyst 1
Recreation Manager 1
Resident Engineer/Inspector 1
Risk Manager 1
Senior/Primary Building Inspector 1
Sustainability Coordinator 1
*Consultants 1
409
Appendix B
Disclosure Category 1: Must report all interests in real property located within the jurisdiction, as well as investments, business positions and sources of income, including gifts, loans and travel payments.
*Consultants shall be included in the list of designated employees and may be required to file a State of California, Fair Political Practices Commission, Statement of Economic Interests form.

If a consultant participates in making financial decisions, said consultant is required to disclose certain types of information so that the public can be made aware of any potential conflict of interest. This form must be filed each year and is a public document. However, the following limitation may apply:

City Councilmembers
City Attorney
City Manager
City Treasurer
City Planning Commissioners
410
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:17
Agenda Item: League of California Cities Annual Conference Voting Delegate and Alternate Executive Summary: Councilmember Robbins is the City Council Appointee to the League of California Cities and is registered to attend the Annual Conference in October. City Attorney Stroud will also be attending the conference and has offered to be the alternate voting delegate in the event Councilmember Robbins cannot attend. City Council action is required to select the voting delegate and alternate.

Requested Action / Suggested Motions: Pass a Motion selecting Councilmember Robbins as Voting Delegate and Heather Stroud, City Attorney, as Alternate Voting Delegate at the League Annual Conference (Long Beach, October 16-18)
Responsible Staff Member: Susan Blankenship, City Clerk Reviewed and Approved By: Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - League Registration Authorization.docx 02-2024 Voting Delegate Information Packet.pdf
411
Council Agenda Report September 10, 2024 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: League of California Cities Annual Conference Voting Delegate and Alternate Location: Long Beach, CA
Responsible Staff Member: Susan Blankenship, City Clerk Background: Councilmember Robbins is the City Council Appointee to the League of California Cities and is registered to attend the Annual Conference in October. City Attorney Stroud will also be attending the conference and has offered to be the alternate voting delegate in the event Councilmember Robbins cannot attend. City Council action is required to select the voting delegate and alternate.

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

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

Policy Implications: The discussion of Councilmember appointees conforms to City Council Protocols.
412
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

DATE: Wednesday, July 10, 2024
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 16-18, 2024 Long Beach Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taking place on Oct. 18, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 25. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.

Council Action Advised by September 25, 2024
413
For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities’ event and meeting policy in advance of the conference.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 16, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 17, 7:30 a.m.-4:00 p.m. On Friday, Oct. 18, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 25. If you have questions, please contact Zach Seals at [email protected].

Attachments:
• General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly 414
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.
415
Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). 416
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:18
Agenda Item: Amendment No. 2 to the Funding Agreement with the South Shore Transportation Management Association to Extend Term for One Year at a total Cost of $650,000 Executive Summary: The Funding Agreement with the South Shore Transportation Management Association (SS/TMA) for microtransit services expires on September 30, 2024. The City Council will consider an amendment to the agreement to extend the term by one year and consider an additional appropriation of $500,000 in fiscal year 24/25 to fund the microtransit services, for a total cost of $650,000. $150,000 had been appropriated previously.

Requested Action / Suggested Motions: 1) Pass a Motion authorizing and directing the Mayor to execute Amendment No. 2 to the Funding Agreement with the South Shore Transportation Management Association (SS/TMA) to extend the term for one year; and, 2) Pass a Resolution appropriating $500,000 from General Fund Undesignated Excess Reserves in fiscal year 24/25 to fund microtransit services through September 30, 2025.

Responsible Staff Member: Hilary Roverud, Assistant City Manager Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - South Shore Transportation Management Association.docx 02-C-024-2023 SSTMA Funding Agreement and C-247-2023 Amendment No. 1 04-Resolution - SSTMA Appropriation.docx
03-Amendment No.2 to Funding Agreement with SSTMA
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Council Agenda Report September 10, 2024 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Amendment No. 2 to the Funding Agreement with the South Shore Transportation Management Association and Budget Appropriation
Location: Citywide
Responsible Staff Member: Hilary Roverud, Assistant City Manager Background: The South Shore Transportation Management Association (SS/TMA) is a public/private partnership governed by a local Board of Directors comprised of public and private entity representatives. It is a non-profit corporation whose mission is to provide support and a unified leadership voice for public/private partnerships and to advocate for improved mobility to meet visitor and resident transportation needs. SS/TMA has received funding for microtransit from El Dorado County, the South Lake Tahoe Tourism Business Improvement District, Lake Tahoe Visitors Authority, Tahoe Douglas Visitors Authority, Douglas County, the Tahoe Blue Event Center and private businesses, including Heavenly Resort. SS/TMA continues to seek additional long term sustainable funding to maintain and expand the microtransit services and to electrify the microtransit fleet.

City Council originally approved an agreement with the SS/TMA to provide microtransit services on May 3, 2022. SS/TMA has contracted with South Tahoe Downtowner, LLC to operate the Lake Link system, a turnkey on-demand pilot microtransit service. The Lake Link service was formally launched in July 2022 and has seen continuous increase in ridership and service area. Lake Link currently provides service Sunday through Thursday 7:00am-9:00pm and Friday through Saturday 7:00am-11:00pm.

On November 21, 2023, City Council approved an amendment to the funding agreement to increase the FY 23/24 contribution to $650,000 to facilitate the expansion of the Lake Link service area to the west and the Friday and Saturday operation to 11:00pm (Attachment 02).

In the month of July, Lake Link provided 18,347 rides, an increase of 80% over July 2023, with 89% of those rides as shared rides, an increase of 16% over last year. Although the service area has expanded and there is a wide variation in wait times across the month, the monthly average wait time has reduced slightly (3%) primarily in the center of the service area. The experience rating provided by riders has consistently been above 4.8 out of 5. 418
Council Agenda Report September 10, 2024 Page 2 of 3
Lake Link Microtransit Service Area
Issue and Discussion: City staff continues to work with SS/TMA and funding partners to secure sustainable funding to expand microtransit services citywide and provide longer service hours. SS/TMA has engaged the consulting firm Civitas to conduct stakeholder engagement, compile data and analyze the feasibility of a Transportation Improvement District as a tool to establish long term sustainable funding for transportation.

As long-term sustainable funding for microtransit is being developed, SS/TMA is also supporting the planning work necessary to integrate the fixed route and microtransit systems to provide more efficient and improved service to riders by preparing a service transition plan that can provide guidance on the operations, capital and financial requirements for the potential South Shore Transit Joint Powers Authority to become eligible for state and federal funding and to operate transit, if the JPA chooses to do so after it is formed.

The current Funding Agreement (C-247-2023 as amended) expires on September 30, 2024 with the option to renew for one (1) one-year term upon written mutual agreement. The adopted FY 24/25 budget already includes $150,000 base amount for contributions to SS/TMA. Due to the success of the microtransit service and the opportunities to expand and improve the service with fixed route integration in the foreseeable future, it is recommended 419
Council Agenda Report September 10, 2024 Page 3 of 3
that the City Council approve Amendment #2 to renew and extend the agreement to September 30, 2025 and appropriate an additional $500,000, for a total of $650,000 in fiscal year 24/25.

Financial Implications: If approved by the City Council, the additional $500,000 would be allocated from General Fund Undesignated Excess Reserves into account 100-01951-44032, Non-Departmental Contributions/Sponsorships to fund the amended City and SS/TMA funding agreement.

Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies).

Policy Implications: This funding agreement with the SS/TMA for Microtransit Service would advance Goal 1.4 (Transportation) in the 2023-2028 Strategic Plan, by addressing Action Item 4: Partner with South Shore Transportation Management Association, Tahoe Transportation District, Tahoe Regional Planning Agency and other partners to identify new and existing funding sources to expand and electrify micro-transit service from its initial footprint to the entire city limits, as based on the 2022 South Shore Transportation Analysis. 420

FUNDING AGREEMENT
Annual Contribution
South Shore Transportation Management Association ( SS/ TMA) South Shore Microtransit Service
This Funding Agreement (“Agreement”) is dated and effective ______ between the South Shore Transportation Management Association (“ SS/TMA”) and the City of South Lake Tahoe City”). In this Agreement, City is referred to as a South Shore Microtransit Service “Funding Partner.” The SS/ TMA and Funding Partner are collectively referred to herein as the “Parties.”

RECITALS
WHEREAS, SS/ TMA is a non-profit corporation organized under the laws of the State of Nevada whose mission is to support the economic vitality of the South Shore of Lake Tahoe, providing support and a unified leadership voice for public/private partnerships. SS/TMA advocates for improved mobility with innovative solutions to meet visitor and resident transportation needs by fostering collaboration, education, and sustainable funding; and WHEREAS, consistent with its mission, the SS/TMA Board of Directors has approved the SS/TMA’s role as the contracting entity for the South Shore Microtransit Service, an interstate and intrastate service connecting the South Shore; and
WHEREAS, SS/TMA has contracted with South Tahoe Downtowner, LLC ridedowntowner. com) (” Operator”) to operate the South Shore Microtransit Service (“ Microtransit Service”); and
WHEREAS, the Microtransit Service is designed to improve non-auto mobility options throughout its service area, and provide connections to other transit services, including fixed route transit; and
WHEREAS, the City entered into an agreement for $150,000 for Microtransit Service for 2022-23; and
WHEREAS, the City and SS/ TMA desire to continue the Microtransit Service and the current partnership in 2023-2024; and
WHEREAS, the Microtransit Service funded through this agreement between City and SS/ TMA is above and beyond the service required as a condition of the Tahoe South Event Center TSEC) permit; and
WHEREAS, the Board of Directors has also approved the SS/ TMA’s role as the facilitator and collector of contributions to support the Microtransit Service from the Funding Partners herein named; and
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WHEREAS, the South Shore Microtransit Service will continue to operate under the direction of the SS/TMA Board of Directors, on which the City holds an at-large voting seat under this Agreement to be filled by City staff.

NOW, THEREFORE BE IT RESOLVED, in consideration of the foregoing recitals and the covenants contained herein, the Parties agree as follows:

1. EFFECTIVENESS AND TERM. This Agreement shall be effective upon the expiration of the 2022-2023 agreement of June 20, 2023 for one year and three months to align with the City’s fiscal year, and shall expire on September 30, 2024 with the option to renew for one (1) one-year term upon written mutual agreement. The City of South Lake Tahoe shall continue to be granted one (1) voting seat on the Board of Directors of the SS/TMA to be filled by a City staff person/non-elected official.

2. SERVICE. SS/STMA shall contract with the Operator to operate the Microtransit Service pursuant to the routes and schedules as determined by the SS/TMA Board of Directors, which includes a representative of the City, with the option to expand service to the remainder of the city limits. SS/TMA has discretion to amend the routes and schedules of the service current as of the execution of this agreement at any time as deemed necessary by SS/TMA for operational or funding related purposes provided that no such amendments shall increase the financial obligations of the Funding Partner, which shall be binding on the execution of this Agreement. A supermajority vote of the Board of Directors of the SS/TMA shall be required to amend service parameters. SS/TMA has the discretion to replace the Operator with another operator. A supermajority vote of the Board of Directors of the SS/TMA shall be required to replace the Operator.

3. FUNDING. The estimated operating costs for the pilot program are $1.2 million. The Funding Partner agrees to provide one payment of $50,000 for the months of June, July, August, and September 2023 payable to the South Shore Transportation Management Association; and $150,000 for the months of October 2023 through September 2024, paid quarterly in equal amounts, payable to the South Shore Transportation Management Association.

4. INVOICING. SS/ TMA shall provide one (1) invoice to Funding Partner at least 30 days in advance of the payment due date specified in Section 3 of this Agreement. Invoices shall reference the South Shore Microtransit Service, the payment due date, and the relevant period of service.

5. USE OF FUNDS. SS/ TMA shall deposit all funding amounts received into a separate account held solely for the South Shore Microtransit Service. SS/TMA shall use all funds solely for the purpose of paying the costs of the Microtransit Service (above and beyond the TSEC permit requirement) which shall include funds for service operation, SS/TMA management, accounting, and marketing.

6. RESERVE FUNDS. Any funds remaining unspent at the end of a fiscal/ operating year after all costs of the Microtransit Service have been paid, including allocated funds for management, accounting, marketing and promotion, and audits, will be held in a restricted reserve fund. Reserve funds held within this account are to be used for the sole purpose of the South Shore Microtransit C-024-2023 422
Service. The maximum Reserve Fund balance will cover 12 months of operations and management services to be determined by a subsequent fiscal year budget to ensure a funding source is available in the event of a funding shortage in any future year of operation. Any additional funds will be used for service expansion or returned to the Funding Partner by a pro rata share.

7. RETURNS. Amounts paid by the Funding Partner will be returned to the Funding Partner if the microtransit service is canceled and/or those amounts are not needed to pay for the service in future years. Any amounts returned to the Funding Partner will be determined on a pro-rata basis according to the amount contributed.

8. REPORTS. SS/ TMA will provide monthly reports on the South Shore Microtransit Service to Funding Partner.

9. SS/TMA MICROTRANSIT COMMITTEE. The SS/TMA Board of Directors shall maintain a Microtransit Committee to provide oversight of the Operator and Microtransit service through a contracted Program Manager or Executive Director to ensure the performance and accountability of the Microtransit Service.

10. RECORDS. SS/ TMA shall maintain satisfactory account statements, records, and other documents related to the South Shore Microtransit Service for the life of the program. Account statements, records, and other documents relating to the microtransit service shall be retained by SS/TMA for three (3) years following the completion or termination of this Agreement and shall be subject to examination and audit by the Funding Partner.

11. SS/TMA MANAGEMENT TASKS AND COMPENSATION. Through its Microtransit Committee and contracted Program Manager or Executive Director, SS/ TMA shall oversee the dayto-day management and operation of the Microtransit Service and provide accounting, marketing, advertising and promotional support, as well as South Shore orientation, reporting, and other services for the Microtransit Service as set forth in Exhibit A, including auditing of the contract consistent with the provisions of the Agreement between SS/TMA and the Microtransit Service Operator.

12. INDEMNIFICATION. SS/ TMA hereby agrees to and shall indemnify and hold harmless Funding Partner, its elected and appointed boards, officers, agents, employees, and volunteers from and against all liability for any and all claims, demands, actions, losses, damages, and injuries, direct or indirect (including any and all costs and expenses in connection therein) arising out of this Agreement or caused in any way by SS/TMA’s negligent performance of this agreement or breach of its obligations contained in this Agreement, except for any such claims arising out of the negligence or willful misconduct of the Funding Partner. SS/ TMA agrees to defend Funding Partner against any and all losses, damages, claims, costs, and fees arising out of SS/TMA’s negligent acts, errors, or omissions regarding this Agreement.

Funding Partner does not, and shall not, waive any rights against SS/TMA which it may have by reasons of the aforesaid hold harmless agreement, because of the acceptance by Funding Partner, or the deposit with Funding Partner by SS/TMA, of any of the insurance policies hereinafter set forth.

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

SS/TMA further waives any and all rights to any type of express or implied indemnity or right of contribution from the Funding Partner for any liability, claims, demands, costs, charges, and expenses and causes of action whatsoever arising out of or in any way connected with this Agreement.

13. INSURANCE REQUIREMENTS. SS/ TMA, at its own cost and expense, shall procure and maintain, for the duration of the Agreement, the following insurance policies. a. Commercial General Liability Coverage. SS/TMA shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage.

Coverage must be made on the standard Occurrence form. Claims-Made forms are not acceptable without prior written consent of Funding Partner. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of SS/TMA. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.
b. Automobile Liability Coverage. SS/ TMA shall maintain automobile liability insurance covering bodily injury and property damage for all activities of SS/ TMA arising out of or in connection with this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.

Endorsements. The insurance required by this Agreement shall be with insurers possessing an AM Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
a. City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds under SS/TMA’s General Liability policy with respect to liability arising out of this Agreement.
b. This policy shall be considered primary insurance as respects City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by City, including any self-insured retention City may have, shall be considered excess insurance only and shall not contribute with it.
c. This insurance shall act for each insured and additional insured as though a separate policy had been written for each.
d. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, or agents.

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e. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. f. No policies of insurance carried by SSTMA shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail.

Deductibles and Self-Insured Retentions. SS/TMA shall be responsible for all deductibles in all of SS/ TMA’s insurance policies. The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.

Certificates of Insurance. SS/ TMA shall provide certificates of insurance with original endorsements to Funding Partner as evidence of the insurance coverage required herein. SS/TMA shall not allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.

14. DISPUTES AND TERMINATION. The Parties shall meet and confer in an attempt to resolve any dispute arising from this Agreement. If the dispute cannot be resolved, any party may terminate this Agreement upon 60 days written notice to the other party. In the event of termination, the Funding Partner shall not be entitled to any reimbursement of funding amounts already provided except as provide in Section 7 of this Agreement.

15. NOTICE: Written notice under this Agreement shall be provided via U.S. Mail, electronic mail, or in person, as follows:
for City for SS/TMA
Joseph Irvin Steve Teshara
City Manager Chair, SS/ TMA Board of Directors
1901 Lisa Maloff Way PO Box 1875
South Lake Tahoe, CA 96150 Zephyr Cove, NV 89448

16. NO THIRD-PARTY BENEFICIARIES. This Agreement is for the benefit of the parties hereto and nothing contained herein shall be construed as granting, vesting, creating, or conferring any right or cause of action on any third party. Nothing in this Agreement is intended to create, nor shall it be deemed to create any contractual relationship with any third party and SS/TMA or the Funding Partner.

17. GOVERNING LAW; JURISDICTION. This Agreement will be governed by, interpreted under; and construed and enforced in accordance with the laws of the State of California, without regard to its conflict of laws rules, with venue in the Superior Courts in the County of El Dorado, South Lake Tahoe Division. Each of the Parties acknowledges and agrees that the laws of the State of California and the selection of venue in the foregoing city and county were freely chosen by the Parties.

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18. ENTIRE AGREEMENT. This Agreement and the documents incorporated herein by reference constitute the entire agreement between the parties relating to the South Shore Microtransit Service and may not be modified except by an instrument in writing signed by the signatories to this Agreement. If any provision, or portion thereof, of the Agreement is or becomes invalid under any applicable statute or rule of law, it shall be deemed stricken and the remainder of this Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, this Agreement has been executed by the parties and is dated and effective as of the date written above.

FOR CITY OF SOUTH LAKE TAHOE FOR SOUTH SHORE TRANSPORTATION

MANAGEMENT ASSOCIATION
Cristi Creegan Steve Teshara
Mayor Chair, SS/TMA Board of Directors
Date Date
Approved as to Form:

Heather Stroud, City Attorney
ATTEST:

Susan Blankenship, City Clerk Date
Attachments:

Exhibit A: SS/TMA Scope of Services
C-024-2023
Sue Blankenship (Feb 17, 2023 09:18 PST)
Feb 17, 2023
Heather Stroud ( Feb 17, 2023 09:39 PST)
Cristi Creegan (Feb 23, 2023 08:26 PST)
Cristi Creegan Steve Teshara ( Feb 24, 2023 11: 13 PST) Steve Teshara
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FUNDING AGREEEMNT
Annual Contribu on
South Shore Transporta on Management Associa on (SS/ TMA) South Shore Microtransit Service
Amendment # 1
This Amendment #1 is made on November 21, 2023 to the Funding Agreement entered into as of February 14, 2023 (C-024-2023) by and between the South Shore Transporta on Management Associa on (“ SS/ TMA”) and the City of South Lake Tahoe (“ City”). The par es hereby agree to the following amended terms.

Sec on 3 FUNDING is amended in its en rety as follows:

The Funding Partner agrees to provide one payment of $50,000 for the months of June, July, August, and September 2023 payable to the South Shore Transporta on Management Associa on; $150,000 for the months of October 2023 through September 2024; and $500,000 for the months of December 2023 through September 2024. Beginning in December 2023 payments will be paid quarterly in advance of services, in equal amounts, payable to the South Shore Transporta on Management Associa on.

Exhibit A: SS/ TMA Scope of Services
All provisions of Exhibit A remain in effect except as noted below.

Sec on 1.4 SERVICE DAYS AND HOURS is amended in its en rety as follows:

South Shore Microtransit Service Hours:

Sunday – Thursday: 7:00am-9:00pm
Friday - Saturday: 7:00am-11:00pm
Average wait mes shall be no more than 15 minutes. Riders should always be able to travel within proposed service area.

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Exhibit A: Atachment 1 is amended in its en rety as follows:

South Shore Micro Transit Service Area – Expanded Zone 1) IN WITNESS WHEREOF, this Amendment has been executed by the par s and is dated and effec ve as of the date writen above.

FOR CITY OF SOUTH LAKE TAHOE FOR SOUTH SHORE TRANSPORTATION

MANAGEMENT ASSOCIATION
Cris Creegan Steve Teshara
Mayor Chair, SS/ TMA Board of Directors
Date Date
Approved as to Form:

Heather Stroud, City Atorney
ATTEST:

Susan Blankenship, City Clerk
Zone 1
Expanded Zone 1
C-247-2023
Sue Blankenship ( Nov 27, 2023 09: 17 PST)
Cristi Creegan ( Nov 27, 2023 09:48 PST)
Cristi Creegan
Nov 27, 2023
Heather Stroud ( Nov 27, 2023 10:47 PST)
Steve Teshara ( Dec 4, 2023 14: 40 PST)
Steve Teshara
Dec 4, 2023
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FUNDING AGREEEMNT
Annual Contribution
South Shore Transportation Management Association (SS/TMA) South Shore Microtransit Service
Amendment No. 2
This Amendment No. 2 is made on September 10, 2024 to the Funding Agreement entered into as of February 14, 2023 (C-024-2023) by and between the South Shore Transportation Management Association ("SS/TMA") and the City of South Lake Tahoe ("City"). The parties hereby agree to the following amended terms.

Section 1 EFFECTIVENESS AND TERM, is amended in its entirety as follows:

This Agreement shall expire on September 30, 2025. The City of South Lake Tahoe shall continue to be granted one (1) voting seat on the Board of Directors of the SS/TMA to be filled by a City staff person/ non-elected official.

Section 3 FUNDING, is amended to add the following language:

The City agrees to provide $650,000 in Fiscal Year 24/25 (October 1, 2024 - September 30, 2025) for the operation of microtransit service.

IN WITNESS WHEREOF, this Amendment has been executed by the partis and is dated and effective as of the date written above.

FOR CITY OF SOUTH LAKE TAHOE FOR SOUTH SHORE

TRANSPORTATION MANAGEMENT

ASSOCIATION
_______________________________________
____________________________________
Cody Bass, Mayor Chris Proctor
Chair, SS/TMA Board of Directors
Date: Date:

Approved as to Form:
______________________________________________
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Heather Stroud, City Attorney
ATTEST:
_______________________________________________
Susan Blankenship, City Clerk
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Resolution 2024-XXX September 10, 2024 Page 1 of 2
Resolution 2024-XXX
Adopted by the City of South Lake Tahoe City Council
September 10, 2024
Appropriating additional $500,000 from General Fund Undesignated Excess Reserves for Funding Agreement Amendment 2 with the South Shore Transportation Management Association (SS/TMA) for a total of $650,000 in Fiscal Year 24/25 Contribution for South Shore Microtransit Service

BACKGROUND
A. The City entered into a Funding Agreement (C-247-2023) on February 14, 2023 with Amendment 1 approved on November 21, 2023. The Funding Agreement expires on September 30, 2024 with the option to renew for one (1) one-year term upon written mutual agreement.

B. Lake Link, a turnkey on-demand pilot microtransit service operated by Downtowner, LLC, formally launched in July 2022, with a soft launch late June 2022, and has seen a steady increase in ridership.

C. This item includes a City Council motion to approve an amendment to the agreement to extend the term by one year and continue to provide an additional $500,000 in fiscal year 24/25, for a total of $650,000, for continued microtransit service.

D. This funding agreement with the SS/TMA for Microtransit Service continues to advance Goal 1.4 (Transportation) in the 2021-2026 Strategic Plan, by addressing Action Item 7: Partner with the new South Shore Events Center and South Shore Transportation Management Association to expand and electrify microtransit service.

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

1. Appropriates $500,000 from General Fund Undesignated Excess Reserves into account 100-01951-44032 Non-Departmental
Contributions / Sponsorships for Fiscal Year 2024/2025 consistent with Funding Agreement Amendment 2 with SS/TMA.

Passed and adopted by the City of South Lake Tahoe City Council on September 10, 2024 by the following vote:

Yes:
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Resolution 2024-XXX September 10, 2024 Page 2 of 2
No:

Absent:

Abstain:
_______________________________ ___________________
Cody Bass, Mayor Date:

Attest:

Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:19
Agenda Item: Mid-Town Area Plan: Priority Topics and Stakeholder Engagement Update Executive Summary: Before beginning widespread community engagement, staff is requesting City Council's input on topics that should be prioritized in development of the Mid-Town Area Plan. Staff will be presenting recommendations that have been identified through recent City efforts such as amendments to the Tourist Core Area Plan and Tahoe Valley Area Plan; development of the 56-Acres Master Plan; development of the ADA Transition Plan; and community forums on housing.

Requested Action / Suggested Motions: Pass a Motion confirming priority topics to be addressed in the Mid-Town Area Plan as: (1) implementation of redevelopment strategies and incentives; (2) creation of arts district; (3) transportation improvements; (4) encouraging housing development; (5) concentration of City services and civic amenities; and (6) enhancement of recreation assets.

Responsible Staff Member: Anna Kashuba, Senior Planner
Reviewed and Approved By: Zach Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - Mid-Town Area Plan Stakeholder Engagement.docx 02-Mid-Town Area Plan Boundary.pdf
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City Council Agenda Report September 10, 2024 Page 1 of 6 City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Mid-Town Area Plan: Initial Council Priorities Discussion and Stakeholder Engagement Update
Location: Mid-Town (see attachment 02, Mid-Town Area Plan Boundary) Responsible Staff Member: Anna Kashuba, Senior Planner
Background: The City Council's Strategic Plan Priority 1, Built Environment, Action Item 1.2 is to revitalize the Mid-Town area. The city is initiating development of the Mid-Town Area Plan to guide future land uses and development to meet the needs of residents, businesses, visitors, and the environment. The Mid-Town Area Plan (Area Plan) will leverage the adopted 56-acre master plan and existing infrastructure at Lakeview Commons and Harrison Avenue to further transform midtown into a recreation, arts, and community hub.

Development of the Area Plan kicked off at the May 7, 2024, City Council Meeting and a professional services agreement was entered on June 4, 2024, for consultant assistance.

Issue and Discussion: Before beginning widespread community engagement, staff is requesting City Council’s input on topics that should be prioritized in plan development. Staff has prepared the recommended items below, in no specific order, based on feedback received on other recent projects, including but not limited to, amendments to the Tourist Core Area Plan and Tahoe Valley Area Plan; development of the 56-Acres Master Plan; development of the ADA Transition Plan; community forums on housing; and other City efforts.

Potential Policy Priority Topics
Implementation of Redevelopment Strategies and Incentives One identified priority for the Mid-Town area, highlighted by the Vacant and Underused Sites Inventory, is economic activity and redevelopment. Seventeen (17) of the 40 sites identified in the report are located within the Mid-Town Area Plan’s proposed boundary. To address these sites and prevent further instances of abandon, a concerted effort will be made to incorporate implementation strategies to achieve the plan’s goals in a timely manner. Specific focus areas may include the Tahoe Center shopping complex, containing the former Denny’s and Rite Aid sites, or area between Fremont Avenue and Takela Drive.

Arts District
In 2022 the City adopted a resolution approving policy for publicly visible art on private property. This has opened a new pathway for artists to display their work and has increased visual interest of the built environment. An arts district would build on the interest of publicly visible art to create a concentrated area that provides an interactive, cohesive, cultural, and educational experience.
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City Council Agenda Report September 10, 2024 Page 2 of 6 Transportation
Creating a safe and interconnected active transportation network is a Citywide priority. Within the Mid-Town Area Plan a specific effort will be made to increase safety for students and youth traveling between South Tahoe Middle School, Boys and Girls Club, playing fields, Bijou Park, and residences. The plan will identify proposed and ongoing transportation improvements.

Housing
Staff anticipates that many of the housing topics that were discussed with the Tourist Core Area Plan and Tahoe Valley Area Plan amendments will also be applicable to the Mid-Town Area Plan, such as increases in density, modifications to existing parking standards, and expansion of housing as a permissible use. This includes expanding the Town Center designation so that more parcels can take advantage of additional coverage and higher residential densities as allowed by TRPA Code. Much of this area is already developed with commercial uses, making mixed use developments an attractive and likely path forward to increase residential uses.

Concentration of City Services and Civic Amenities
The preferred design concept of the 56-Acres Master Plan identifies City facilities, a civic center/city hall, and civic amenities (recreation center, library, open space, etc.) within the site. Concentrating services has the potential to increase efficiency of City operations; better facilitate public participation at City Council and commission meetings; and create vibrant community gathering spaces.

Enhancements of Recreation Assets
While the recreation assets within the plan area are some of the City’s finest, there is always room for improvement. Staff will meet with community groups to identify shortfalls of parks, beaches, and facilities, and receive feedback on where improvements can be made. These will consider recommendations made by the ADA Self-Evaluation and Transition Plan, which places the ice arena, Lakeview Commons, and senior center as top priorities, followed by Bijou Park and Campground by the Lake.

Confirmation from City Council regarding priorities will inform staff and consultants in leading outreach efforts, as detailed below.

Stakeholder Engagement Process
A technical advisory group has been formed to guide the project progress and provide key input.

Four (4) meetings will be held: 1) project kick off, 2) existing conditions summary and feedback, 3) recommendations summary and feedback, and 4) draft document review and comments. The first meeting of this group occurred on August 8, 2024. Participants include:
 City staff
o Development Services
o Parks and Recreation
o Public Works
 Tahoe Regional Planning Agency staff
 El Dorado County staff
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City Council Agenda Report September 10, 2024 Page 3 of 6  South Tahoe Unified School District representative
 South Tahoe Public Utility District representative
Three (3) meetings will be held with the Bijou Park Community Advisory Group to explore Bijou Park, the golf course, and LTCC to address events, parking and best uses in balance with open space and natural stream environment zones. The kickoff meeting for this groups occurred on August 8, 2024. Over August 19 and 20, a two-day charette was held during which the group discussed programming and concepts for Bijou Park, followed by a discussion at the August 21, 2024, Parks and Recreation Commission. Participants include:
 City Parks and Recreation Staff
 City Parks and Recreation Commission, Mid-Town Subcommittee  South Tahoe Parks Foundation
 Lake Tahoe Community College and field user groups
o South Tahoe Futbol Club
 Boys and Girls Club
 Bijou Park User Groups
o South Tahoe Disc Golf Association
o South Tahoe Parks Foundation
o Skate Park
o Tahoe Area Mountain Biking Association
At least one listening session on each of the topics below will be held to hear struggles, concerns, priorities, and opportunities. Follow up stakeholder meetings will be held as deemed necessary.

Below are the discussion topics, followed by anticipated participants.

Priority Pedestrian and Bike Routes
 Lake Tahoe Bike Coalition
 Bicycle Advisory Committee
 South Lake Tahoe Public Works Department
 Tahoe Area Mountain Biking Association
 Tahoe Regional Planning Agency recreation/transportation staff  California Tahoe Conservancy
 Tahoe Transportation District
 South Shore Transportation Management Association
General Development, Commercial Focus
 Harrison Avenue Business District
 Fremont Avenue Business Owners
 Sierra Tract Commercial businesses
 Property owners and owners’ representatives
 Lake Tahoe Visitors Authority
 South Tahoe Association of Realtors
 South Lake Tahoe Lodging Association
 South Tahoe Chamber of Commerce
 Tahoe Chamber
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City Council Agenda Report September 10, 2024 Page 4 of 6 General Development, Housing Focus
 Tahoe Prosperity Center
 St. Joseph Community Land Trust
 South Tahoe Association of Realtors
 Tahoe/Truckee Contractors Association
 Tahoe Coalition for the Homeless
 Residential developers
Arts District
 Tahoe Art League
 Lake Tahoe Historical Society
 Washoe Tribe
 South Tahoe High School
 Lake Tahoe Community College
Community Wellness and Resources
 El Dorado County Behavioral Health
 El Dorado County Library, South Lake Tahoe Branch
 El Dorado County Health and Human Services
 St. Joseph Community Land Trust
 Tahoe Coalition for the Homeless
 Boys’ and Girls’ Club
 Advance
 Barton Hospital
 Live Violence Free
 Marcella Foundation
 Lake Tahoe Unified School District
 South Lake Tahoe Police Department
In addition to the meetings outlined above, three (3) community workshops will be held that are open to the public, followed by a two-day open house to show and discuss drafted recommendations. One workshop will be held at the Family Resource Center where materials and presentations will be available in Spanish. Additional meetings are anticipated with specific stakeholders such as El Dorado County, STPUD, LTCC, LTUSD, and the Al Tahoe Post Office so that staff can anticipate unique circumstances the plan may need to consider. City staff will also be available to discuss the plan at community events such as farmers markets and the Multicultural Celebration.

Communication methods used thus far include posts to the City’s social media accounts; publication of a dedicated webpage that will be updated with times, dates, and locations of public meetings; and the option to sign up for notifications when new meeting dates are posted.

Financial Implications: Beyond staff time, there are no financial implications associated with receiving this report.

Environmental Considerations: Reporting the status of a planning process has no possibility of causing a direct physical change or a reasonably foreseeable indirect physical change to the 445
City Council Agenda Report September 10, 2024 Page 5 of 6 environment. This activity is not a project as defined in CEQA Guidelines Section 15778 and is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).

Possible environmental impacts will be considered as goals, policies, and standards are developed to create a self-mitigating plan to the extent feasible. A programmatic Initial Study and Initial Environmental Checklist (IS/IEC) is envisioned to be the appropriate environmental document for evaluation of the Area Plan pursuant to CEQA and TRPA Code of Ordinances and Rules of Procedures.

Policy Implications: Preparing an Area Plan for the Mid-Town is consistent with the following General Plan policies:

Policy LU-1.2 Smart Growth: The City shall implement Smart Growth principles to create walkable, mixed-use centers, compact and complete neighborhoods, and enhanced gateways and places.

Smart Growth Principles include:
- Creating a range of housing opportunities and choices - Creating walkable neighborhoods
- Encouraging community and stakeholder collaboration
- Fostering distinctive, attractive communities with a strong sense of place - Making development decisions predictable, fair, and cost-effective - Providing a mix of land uses
- Preserving open space, natural beauty, and critical environmental areas - Providing a variety of transportation choices
- Strengthening and directing development to existing communities - Taking advantage of compact building design
Policy LU-2.2 Community Plan Preparation, Adoption, and Implementation: The City shall periodically update and implement the four Community Plans as a way to focus development commodities and revitalization efforts.

Policy LU-2.5 Bijou/Al Tahoe Community Plan Area: The City shall encourage the creation of a viable residential neighborhood with appropriate neighborhood amenities and compatible highquality family-oriented recreation and public facilities, including government offices.

Policy LU-2.8 Community Plan Incentives: The City shall provide permit streamlining, commodity increases, coverage increases, and other similar incentives to encourage the implementation of General Plan goals and policies.

Policy LU-5.3 Commercial Center Enhancement: The City shall encourage the upgrade and/or expansion of existing commercial centers, including improvements to parking and landscaping areas; redesigns to accommodate bicycle, pedestrians, and transit facilities; and remodeling to include "green" technology and improve energy efficiency.

Policy LU-8.14 Art in Public Places: The City shall promote art in public places such as pedestrian areas, tourist accommodation areas, social gathering places, and commercial shopping centers in conformance with a Cultural Arts Master Plan.
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City Council Agenda Report September 10, 2024 Page 6 of 6 Policy LU-11.2 Equal Public Participation: The City shall ensure that all community residents have meaningful opportunities to participate in the decision-making process. 447
Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), (c) OpenStreetMap contributors, and the GIS User Community

MID-TOWN AREA PLAN BOUNDARY
Sierra Tahoe
Commercial
Bijou/Al Tahoe
Community Plan
Bijou
Community
Park
Bijou
Golf Course
& Meadow
Bijou/Al Tahoe
Community Plan
Bijou/Al Tahoe
Community Plan
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:20
Agenda Item: Presentation by California Department of Transportation on Hot Mix Asphalt Concrete and Portland Cement Contract for Roadway Rehabilitation on State Highways Executive Summary: On March 14, 2023, Councilmember Cody Bass (seconded by Councilmember Scott Robbins) requested a report from Caltrans to discuss pavement options between Hot Mix Asphalt and Portland Concrete Cement for State maintained roadways. Based on this request, staff has been coordinating with the California Department of Transportation to provide a presentation for roadway construction and rehabilitation options.

Requested Action / Suggested Motions: Receive and File.

Responsible Staff Member: Anush Nejad, Director of Public Work Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney
Attachments:
01-Staff Report - Asphalt vs Concete.docx
02-Presentation
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City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Presentation by Caltrans on Hot Mix Asphalt and Portland Cement Contract for Roadway Rehabilitation on State Highways
Location: US 50/89
Responsible Staff Member: Anush Nejad, Director of Public Work (530) 542-6031 Background: On March 14, 2023, Councilmember Cody Bass requested a report from Caltrans to discuss pavement options between Hot Mix Asphalt and Portland Concrete Cement for statemaintained roadways. Councilmember Robbins seconded this item. Based on this request, staff has been coordinating with the California Department of Transportation to provide a presentation for roadway construction and rehabilitation options.

Issue and Discussion: There are several types of pavement construction and rehabilitation methods. Hot Mix Asphalt Concrete (HMA) and Portland Cement Concrete (PCC) are the most commonly used methods.
 Hot Mix Asphalt (HMA) is a combination of approximately 95% stone, sand, or gravel bound together by asphalt cement, a product of crude oil. Asphalt cement is heated aggregate combined with the aggregate at an asphalt facility. This is the most commonly used pavement material. However, there are several mix design and other additives can be added for different applications. In most cases, the HMA is placed over the aggregate base and/or subbase. HMA can be placed quickly, and the roadway can be opened to traffic quickly.
 Portland Cement Concrete Pavement (PCCP) consists of cement, sand, aggregate (rocks) and water. There are also admixtures – materials often added to the concrete mix to alter its properties. These admixtures can do several things to the concrete mix.

Depending on the need, they may be added to reduce water, slow the setting rate, accelerate the setting time, or add color to concrete. The PCC is reinforced with rebars to provide tensile strength. The PCC slab may sometimes be overlaid with a layer of asphalt concrete. PCC requires time for curing before it can be opened to traffic, typically between 7-28 days, depending on the cement concrete type.

Financial Implications: This is a California Department of Transportation presentation regarding alternative pavement construction methods. At this time, there are no financial implications for receiving this report.
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Environmental Considerations:

Receiving this report is not a project requiring environmental review under the California Environmental Act (CEQA) under CEQA Guidelines section 15378(a) because it does not have the potential to result in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

Policy Implications:

Receiving the report Policies are consistent with:

General Plan Policy TC‐1.5: Street Repair Program. The City shall maintain and implement the Pavement Management Plan and maintain a street repair program that ensures sufficient funding for the maintenance of South Lake Tahoe’s Street System.

General Plan Policy PQP‐1.8: Financing and Prioritizing Maintenance of Existing Infrastructure. The City shall identify operations and maintenance costs and priorities for existing infrastructure, and identify and develop a fair, equitable, and stable fiscal program to finance the ongoing maintenance of infrastructure.
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Asphalt vs. Concrete
452
Types of Caltrans Pavement Projects
• New Construction
• New roadways, alignments, interchanges, or grade separation crossings • Widening
• Pavement Preservation
• Preventive Maintenance (HM1/field maintenance)
• Capital Preventive Maintenance (CAPM)
• Roadway Rehabilitation
• 2R (Resurfacing and Restoration)
• 3R (Resurfacing, Restoration, and Rehabilitation)
• Reconstruction
453
Basic Pavement Layers
454
Widening
• Construct additional pavement width to improve traffic flow • Increase capacity on an existing highway facility
• Adding lanes (to accommodate for multimodal transportation i.e. transit & bicycles)
• Shoulder
• Turnouts or pullouts for maintenance/transit traffic
• Widening existing lane, shoulder or pullouts
455
Pavement Preservation
• Preventive Maintenance (HM1/Field Maintenance)
• Construct preventive treatments to preserve pavements in good condition • Nonstructural preventive and corrective strategies
• Capital Preventive Maintenance (CAPM)
• Cost effective repairs on existing roadways with considerable remaining service life (15 to 30 years) • Repair pavement exhibiting minor distress
• Timely application of CAPM treatments delay the need for major roadway rehabilitation • Improve the cost-effectiveness of the pavement life cycle 456
Pavement Preservation
• Roadway Rehabilitation
• Return roadways that exhibit major structural distress to good condition • Failure of the surface course
• Failure of the underlying base layers
• Major non-routine work engineered to restore service life • Restore damaged structural capacity
• Providing upgrades to enhance safety
457
Reconstruction
• Replaces the entire existing pavement structure
• Rebuilds adjacent operational and roadside features
• Typically include significant change to the horizontal and vertical alignment of the highway
458
Types of Pavement
• Types of pavement considered for new construction, widening, reconstruction, and rehabilitation
• Rigid (Concrete)
• Flexible (Asphalt)
• Composite
• Asphalt/Concrete
• Concrete/asphalt
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Pavement Selection Criteria
• Pavement design life
• Traffic considerations
• Soils characteristics
• Climate
• Existing Pavement type and condition
• Existing drainage type and condition
• Availability of Materials
• Recycling
• Maintainability
• Constructability
• Life-cycle cost analysis
• Life-cycle assessment
460
Advantages
Concrete Pavement
• Durability
• Suitable for high truck volumes
• Less prone to rutting
• Fewer repairs
• Last longer
Asphalt Pavement
• Less expensive to install ($1 million/lane mile)
• Less road noise
• Better traction/skid resistance
• Black asphalt utilizes heat
• Ease of maintenance/repair
• Cheaper to maintain (estimated about
$111,000/lane mile/year)
461
Disadvantages
Concrete Pavement
• Costly/difficult to repair
• Smooth/slippery roadways
• Expensive to install ($1.8million/lane mile)
• Expensive to maintain ($154,000/lane miles/year)
• More prone to cracking/breaking
• More road noise compared to asphalt pavement
Asphalt Pavement
• Prone to rutting
• Lower life expectancy than concrete
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:21
Agenda Item: Annual Report on Homelessness
Executive Summary: Homelessness is a nuanced issue, driven in large by shortfalls in housing supply and affordable housing throughout the region, the state of California and the United States. Responding to homelessness requires nuanced approaches making the coordination of a strategic approach challenging but facilitates better outcomes. This report is meant to inform on the current landscape and coordination of City departments and regional partners addressing homelessness.

Requested Action / Suggested Motions: Receive and file.

Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Reviewed and Approved By: Zach Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
02 - MOU with Tahoe Coalition for Homeless.pdf
03 - MOU with Live Violence Free.pdf
01-Annual Homelessness Report_Sept2024.docx
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City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Annual Report on Homelessness
Location: Citywide
Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Background: Homelessness is a nuanced issue, driven in large part by shortfalls in housing supply and affordable housing throughout the region and the state of California. In 2019, the Point in Time count for El Dorado County showed there was a total of 613 people experiencing homelessness with 78% of those being unsheltered. In 2022, there was a total of 511 people experiencing homelessness with 86% of those unsheltered. In the 2022 count, 79% of people experiencing homelessness had their permanent residence prior to homelessness in El Dorado County. The 2024 Point in Time count data for El Dorado County should be available in the next three months.

Responding to homelessness contains nuanced approaches making the coordination of a strategic approach challenging but facilitates better outcomes.

Individuals with certain vulnerabilities, those with a history of trauma, and/or those from racially minoritized groups, are at higher risk of experiencing homelessness. In addition, those who are experiencing homelessness have higher rates of substance abuse and mental health issues than the general population. Those experiencing homelessness are an aging population and we now that most people experiencing homelessness in California are overwhelmingly from California1. In El Dorado County, we know that this data trend is also similar.

Research shows that the trauma of experiencing homelessness can cause people to develop mental health problems for the first time and can worsen existing behavioral health challenges. Ever experiencing homelessness is related to higher levels of reported alcohol use, and the amount of time spent homeless is related to lower perceived recover from mental illness2.
1 Margot Kushel, MD and Tiana Moore, PhD, et. al. “Toward a New Understanding: The California Statewide Study of People Experiencing Homelessness.” Benioff Homelessness and Housing Initiative, University of California San Francisco (June 2023). 2 Castellow J, Kloos B, Townley G. “Previous Homelessness as a Risk Factor for Recovery from Serious Mental Illnesses.” Community Ment Health J. 2015 Aug;51(6):674-84. doi: 10.1007/s10597-014-9805-9.

Epub 2015 Jan 8. PMID: 25566947.
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In addition to negatively impacting South Lake Tahoe residents experiencing homelessness, there are other direct and indirect impacts on the community. People experiencing homelessness generate a significant number of calls for services from the South Lake Tahoe Fire and Police Departments, as well as frequent and high utilization of emergency medical services administered at Barton Health. These calls may delay response time to other non-homeless related calls. In addition, unsheltered homelessness may negatively impact the environment, the local economy and quality of life in the community.

Issue and Discussion: The City is becoming more engaged with El Dorado County on homelessness, primarily through the El Dorado Opportunity Knocks Continuum of Care (EDoK CoC), and the city has agreements with Tahoe Coalition for the Homeless and Live Violence Free. There are nuanced and collaborative approaches to addressing homelessness in the community which require strategic responses that are documented in shared systems. Below is an overview of the regional infrastructure to reducing homelessness in addition to roles played by the city and external partners.

Regional Collaboration to Reduce Homelessness
El Dorado Opportunity Knocks Continuum of Care (EDOK CoC) The Continuum of Care (CoC) Program was created through the McKinney-Vento Homeless Assistance Act as Amended by S.896 Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009. This rule became effective August 30, 2012. The CoC is a regional or local planning body that coordinates housing and services funding for homeless families and individuals. The CoC Board has representatives from local jurisdictions, education, law enforcement, healthcare, domestic violence providers, individuals with lived experience, social service providers, housing developers, and more. Jessica Wackenhut Lomeli, Housing Manager, is the current board member representing the City of South Lake Tahoe on the CoC board.

Kimberly Peterson, Executive Director of Tahoe Coalition for the Homeless, and Chelcee Thomas, Executive Director of Live Violence free also serve on the CoC board.

The CoC exists as a coordinated way for housing and homelessness providers to submit a single application to HUD in a more structural and strategic approach to both housing and homelessness services.

HUD requires four aspects to a CoC:
 Outreach, intake, and assessment in order to identify service and housing needs and provide a link to the appropriate level of both;
 Emergency shelter to provide an immediate and safe alternative to sleeping on the streets;
 Transitional housing with supportive services to allow for the development of skills that will be needed once permanently housed;
 Permanent and permanent supportive housing to provide individuals and families with an affordable place to live with services if needed. 465
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CoCs track and manage the homeless community in their area. In addition, CoCs manage the biannual Point in Time Count of the homeless population and track emergency systems, transitional housing units, and beds.

Within CoC’s there is also Coordinated Entry (CE) that serves as the “front door” to the homelessness response system. It is designed to assess, prioritize and match people experiencing homelessness to housing opportunities efficiently and consistently. This includes prioritization and a “by name” list of clients. Tahoe Coalition for the Homeless was awarded CoC funds to serve as the Coordinated Entry provider for El Dorado County. TCH provides quarterly updates on the Coordinated Entry System (CES) for the county at these board meetings.

Roles & responsibilities in Responding to Homelessness
Roles within the City
South Lake Tahoe Policy Department - South Tahoe Area Collaborative Services (STACS)
Chief Stevenson created the STACS program to improve the Police Department’s response to homelessness, substance use issues, and mental health related calls while collaborating with regional partners. The goal of STACS is to find long term solutions for those experiencing homelessness and/or mental health issues in South Lake Tahoe.

SLTPD works with South Tahoe Fire Rescue, Barton Health, El Dorado County Sherriff’s office, El Dorado County District Attorney’s Office, Cal-Tahoe JPA Ambulance, Tahoe Coalition for the Homeless, El Dorado County Behavioral Health, Clean Tahoe and others.

Officer Hazelet was assigned as the new STACS officer in 2023. There is a joint response by Officer Hazelet in conjunction with El Doado County Behavioral Health.

Resources offered through this program include: El Dorado County Navigation Shelter, Drug/Alcohol rehabilitation, family reunification, and Tahoe Coalition for the Homeless.

All referrals for Domestic Violence go to Live Violence Free and all referrals for homelessness go to Tahoe Coalition for the Homeless. STACS also deals with environmental considerations in regard to illegal camping. In 2023, the STACS program partners conducted a massive cleanup in the meadow behind Motel 6 in which 200 cubic yards of trash and 101 propane tanks were removed from the area. In 2024, there has not been a single mass cleanup since several of the individuals from the camps are now housed or staying in the shelter with TCH. Officer Hazelet works closely with Clean Tahoe when cleanup is needed around encampments.

Development Services Department
Development Services Department works closely with Tahoe Coalition for the Homeless and other community partners to increase efforts to prevent and reduce homelessness 466
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in the community. The department is providing priority permit processing of projects that are targeted towards special-needs groups, such as individuals and/or families experiencing homelessness, seniors, and populations with disabilities. The Department works on solution-oriented investment which includes increasing affordable housing, engaging on the Continuum of Care Board, and implementation of prevention programs for people at-risk of homelessness and living with housing insecurity.

The Housing Division currently implements the following programs and projects to prevent and reduce homelessness:
- Rental Assistance Program: Security Deposit Assistance and Application Fee 0% interest loans from the City to the landlord for the applicant. - Housing Hotline: Provide information to tenants and landlords about substandard housing issues and informational documents through the State of California. - Community Development Block Grant CV 2-3 Funding for Bear’s Den Affordable Housing Rehabilitation project: Conversion of motel into residential units for individuals making 0% to 30% of Area Median Income.
- Sugar Pine Village and 3900 Lake Tahoe Blvd Affordable Housing Projects – represent 323 affordable housing units that have a percentage of units for individuals that do not require intensive case management services from Tahoe Coalition for the Homeless and can live in independent living locations.

Roles of External Partners
El Dorado County
El Dorado County serves as the administrative entity for the CoC. This means all grants, contracts, go through El Dorado County Board of Supervisors. The Departments in El Dorado County related to homelessness include Health and Human Services (includes public health, behavioral health, and access to supportive services), El Dorado County Housing Authority, El Dorado County Sheriff - Homeless Outreach Team (HOT). As mentioned above, El Dorado County Behavioral Health is a collaborative partner in the STACS program. Several staff members from El Dorado County serve on the CoC and staff some of the committees for the CoCs. In addition, El Dorado County and the Continuum of Care, in partnership with Volunteers of America, operate a 60 bed shelter in Placerville for adults experiencing homelessness along with case management and housing assistance. Participants can only enter the shelter through the coordinated entry system.

Barton Health
Individuals experiencing homelessness, especially those who are unsheltered, can be devastating to the individual’s health and well-being. Many individuals lack access to healthcare, and therefore, often, have high rates of acute care and emergent health services utilization. Barton Health holds a board position on the CoC, works closely on STACS, and as an emerging program in addiction treatment. Barton provided data in 467
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which they average three referrals from their Inpatient and Emergency Department settings to TCH on a weekly basis or 150+ annually as a conservative estimate. If TCH does not have shelter immediately, Barton sends referrals to the Nevada Cares Campus in Reno in which Barton pays for all costs associated with the transfer, medication, and clothing.

Tahoe Coalition for the Homeless
The City of South Lake Tahoe entered into a Memorandum of Understanding (MOU) with Tahoe Coalition for the Homeless (TCH) on September 23, 2020 (Attachment 2).

This MOU serves to memorialize a cooperative and working relationships between TCH and the City to share data regarding homelessness, coordination between City departments, commitment to funding opportunities, and coordination in the local Continuum of Care (CoC).

TCH staff provide supportive services to clients and also individuals experiencing housing insecurity. As mentioned previously, they collaborate with various partners in the region. TCH operates a year-round sixteen bed shelter that is located at the Red Lodge property. Individuals are placed in the shelter based on their intake and vulnerability assessment. Some of these individuals may be placed in permanent housing with TCH or may be housed in other properties in the area. As discussed previously, Barton Health and SLTPD make many referrals to TCH for shelter and housing.

In 2020, TCH purchased three SRO properties which currently being converted into permanent housing for some of the most vulnerable members in our community. When the Bear’s Den is completely rehabilitated, TCH will own 72 units of permanent housing for individuals between 0% and 30% of the Area Median Income and does not include the shelter beds.

TCH was awarded a grant to support housing and services to victims of domestic violence in which they partner and collaborate closely with Live Violence Free.

Live Violence Free
Live Violence Free (LVF) offers shelter, counseling, housing assistance, legal support, and advocacy for victims of domestic violence, sexual assault and child abuse. While domestic violence, sexual assault, and child abuse does not discriminate against socioeconomic status, intimate partner violence increases the risk of homelessness for survivors, particularly those with lower incomes.

LVF and South Lake Tahoe Police Department (SLTPD) have a MOU to collaborate on emergency response, referrals, transportation of victims to safe locations, and coordinate and participate in Eastern El Dorado County Sexual Assault Response Team (SART) meetings. SLTPD received 192 Domestic Violence Reports in 2023 and 100 in 2024, as of July. Of these reports in 2023, 5 of the Domestic Violence reports included 468
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homelessness and 0 reports of Domestic Violence with Homelessness as of July 2024.

The Domestic Violence Response Team, referred to LVF by SLTPD include 72 clients.

LVF provides has had seven responses to Barton medical responses.

Conclusion
Staff would like to highlight some of the financial concerns we see with two critical partners, LVF and TCH. Funding at the Federal and State levels have significantly shifted which create challenges for general operating costs such as finance and executive staff not working directly with clients.

Live Violence Free is 85% grant funded and 40% of their budget was funded by the Federal Victim of Crimes Act. This funding source has dipped drastically in the past several years and in this current fiscal year, the State of California backfilled funding for state nonprofits who received these funds in the past for one year. This grant is used for programs, operations, client expenses such as the shelter operated by LVF, utilities at the shelter, transitional housing, rental assistance, utility assistance, among others. The operating reserves are
Tahoe Coalition for the Homeless is eligible for various grants but the funding typically is capped only for capital projects and services, leaving no amount available for operations unless you directly work with clients. Most of the funds TCH receives is for rehabilitation of projects which are hard and soft capital costs or client-based services through CalAIM.

Many grants only allow for less than 10% for indirect costs (operating) which include accounting, executive staff, and grant oversight. TCH and LVF actually use about 15- 20% in indirect costs for each grant, leaving a gap between operations costs and grants received. Both organizations have small operating reserves which can be challenging since most grants are on a reimbursement basis. Reimbursement based grants have a significant lag time due to review of grant documentation and processing to send checks for reimbursement.

Homelessness contains a web of stakeholders that must collaborate in a unified approach to ensure the nuanced issues are addressed and resolved. As summarized in this report, nonprofit partners such as Live Violence Free and Tahoe Coalition for the Homeless are essential to reducing the impact of homelessness to the overall region while also reducing the impact to City resources and departments.

Staff recommends that City Council receive and file the report.

Financial Implications: At this time, there are no financial implications for receiving this report.

Environmental Considerations: The recommendation in this report is not a project under CEQA, because it does not involve any commitment to a specific project which 469
Council Agenda Report September 10, 2024 Page 7 of 7
may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Sections 15378(b)(2) and 15378(b)(4) and is, therefore, not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).

Policy Implications: The following adopted policies and programs are applicable to this discussion:

City General Plan Housing Element
Action Item 1.3.6 Continue to work with the Tahoe Coalition for the Homeless to rehabilitate properties purchased through Project Homekey.

Action Item 3.1.3 Work with local partners to support permanent supportive housing/transitional homeless shelter resources and provide more services to mitigate existing homeless camps.

MEMORANDUM OF UNDERSTANDING
Between City of South Lake Tahoe and Tahoe Coalition for the Homeless Regarding Communication, Coordination, and Collaboration This Memorandum of Understanding (“ MOU”) is entered into by and between the City of South Lake Tahoe, a municipal corporation ( the “ City”) and Tahoe Coalition for the Homeless, a California nonprofit public benefit corporation collectively “ TCH”) under the terms and provisions set forth below. The City and TCH shall collectively be referred to herein as the “Parties” and individually as “Party.”

RECITALS
A. The City of South Lake Tahoe is the local government entity governing South Lake Tahoe, California, a small city located in the Tahoe Basin Region of El Dorado County.

B. Tahoe Coalition for the Homeless is a small nonprofit corporation providing services to homeless residents of South Lake Tahoe, whose mission is to end homelessness in the South Shore.

C. The City of South Lake Tahoe is a community of approximately 22,000, which regularly hosts more than 100,000 visitors as a regional and world- class recreational tourist destination. As such, many of the local employment opportunities are seasonal, part-time, low-wage, and unbenefited. A large part of the City’s housing inventory serves the tourist population therefore making affordable housing scarce for local families.

D. In the 2019 El Dorado County Homeless Point-In-Time Count & Survey, trained volunteers counted 613 people experiencing homelessness at the end of January. Among those counted, nearly 50% had lived in El Dorado County for their entire lives, and 80% had lived here for more than a year before becoming homeless.

Additionally, 27% were currently experiencing partner violence and 38% were experiencing first-time homelessness. There were 28 minor children, of whom 9 were unsheltered, and 86 transition- aged youth ( 18- 24 years old) - all 86 were found unsheltered. At least 77 people identified as part of a family unit and there were 61 seniors aged 62 years or older. In South Lake Tahoe, 110 individuals were counted, and certain subpopulations were disproportionately represented: African Americans were five ( 5) times more likely to be homeless; Native Americans, 13 times; Disabled, 3 times; and Veterans, 2 times.

E. Homelessness is a dangerous condition that frequently results in higher rates of morbidity and mortality.

South Lake Tahoe’ s harsh alpine winters can cause serious injury and illness for unsheltered people, including hypothermia, dehydration, frostbite, and respiratory illnesses. For the past five (5) years, TCH has operated an DocuSign Envelope ID: AC2E2082- 77BE-4AEE-BCC9- D0FEEA8DB65F 471
2 | Page
emergency warm room to provide life-saving shelter to individuals, and provides motel vouchers to families until housing can be secured. These supports have grown into a comprehensive suite of outreach, prevention, and case management services which ensure that South Lake Tahoe residents experiencing instability do not risk illness, injury, or death as a result of unsheltered homelessness.

F. In addition to negatively impacting South Lake Tahoe residents experiencing homelessness, there are other direct and indirect impacts on the community. Due to lack of preventative health care and safe, stable housing, people experiencing homelessness generate a significant number of calls for services from the South Lake Tahoe Fire and Police Departments, as well as high utilization of emergency medical services administered at the area’s only hospital, Barton Health. Unsheltered homelessness also negatively impacts local businesses, the tourist economy, sensitive ecological areas around Lake Tahoe, and the broader South Lake Tahoe community.

G. The Parties share a common interest in identifying solutions to prevent and reduce homelessness for South Lake Tahoe residents, especially those subpopulations considered highly vulnerable such as youth, families, seniors, and people with disabilities or serious health conditions. The ongoing COVID- 19 pandemic has made these groups even more vulnerable to negative health effects and are less able to adhere to public health guidance and local mandates.

H. The City and TCH desire to enter into this MOU to describe their agreements and relationship with respect to the issue of homelessness within the city limits of South Lake Tahoe, CA.

DocuSign Envelope ID: AC2E2082- 77BE-4AEE-BCC9- D0FEEA8DB65F 472
3 | Page

AGREEMENT
NOW, THEREFORE, it is hereby acknowledged, City and TCH hereto mutually agree as follows:

1. Both parties will seek to identify opportunities to develop shared strategies to prevent and reduce homelessness experienced by South Lake Tahoe residents.

2. The City will provide TCH with regular data regarding homelessness – police calls, fire and emergency transport, etc.

3. TCH will prepare and submit quarterly reports on homelessness, clients served, local programming offered, and housing availability to the City.

4. TCH will coordinate with City departments, including Development Services, Fire and Police to serve our community.

5. TCH will commit to a “local preference policy” where they will prioritize services and housing opportunities for residents of South Lake Tahoe.

6. Both parties commit to jointly reviewing funding opportunities available to bring financial resources to our community which serve the priorities of the City.

7. TCH will utilize housing inventory in a manner in which it was built and permitted, and will adhere to all applicable City land use, zoning and building codes.

8. The City will review and accept reasonable request for compliance oversight for funding awards, such as but not limited to the Homekey Grant Program, which are related to affordable and supportive housing in partnership with TCH.

9. The City Manager will coordinate with TCH and other agencies ( including El Dorado County) involved in the local Continuum of Care ( CoC) and Coordinated Entry System to develop regional strategies and to leverage resources.

10. Either Party may terminate this MOU at any time by written notice given to the other Party.

DocuSign Envelope ID: AC2E2082- 77BE-4AEE-BCC9- D0FEEA8DB65F 473
IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed and therefore become effective as of the last date written below.

City of South Lake Tahoe
Jason Collin, Mayor Dated
Approve as to Form:

Heather Stroud, City Attorney Dated
Attest:

Susan Blankenship, City Clerk Date
Tahoe Coalition for the Homeless
Signed Dated
Name Title
41Page
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.

DocuSign Envelope ID: AC2E2082- 77BE-4AEE-BCC9- D0FEEA8DB65F 9/ 22/ 2020
9/ 22/ 2020
9/ 23/ 2020
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:22
Agenda Item: Patagonia Product Procurement
Executive Summary: On August 13, 2024 Mayor Cody Bass, with a second from Councilmember Wallace requested that a discussion regarding procurement of Patagonia clothing for things that the City logo is printed on due to the environmental sustainability practices of Patagonia. The City Code directs the purchase of environmentally preferable products that minimize environmental impacts and the Patagonia company maintains rigorous commitments to reducing greenhouse gas emissions. City Council will consider three options to address clothing procurements that meet the operational and safety needs while also having minimal environmental impact.

Requested Action / Suggested Motions: Pass a Motion directing the City Manager or designee to open a B2B group discount account with Patagonia in compliance with the City's procurement policy.

Responsible Staff Member: Hilary Roverud, Assistant City Manager Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - Patagonia Procurement.docx
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Council Agenda Report September 10, 2024 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Patagonia Clothing Procurement
Location: Citywide
Responsible Staff Member: Hilary Roverud, Assistant City Manager Background: On August 13, 2024 Mayor Cody Bass, with a second from Councilmember Wallace requested that a discussion regarding procurement of Patagonia clothing for things that the City logo is printed on due to the environmental sustainability practices of Patagonia.

Issue and Discussion: The City Council is responsible for adopting the City's Purchasing Ordinance and Procurement Policy and for approving significant policy revisions. The City’s procurement policy includes the following provision regarding environmentally preferrable products:

Pursuant to SLTCC § 3.45.080; the city desires to purchase environmentally preferable products that minimize environmental impacts, reduce waste by increasing product efficiency, contain recycled content, and contain U.S. Environmental Protection Agency Energy Star-certified materials whenever economically feasible.

The Patagonia company has made the following commitments to GHG reductions:
 Reduce absolute Scope 1* and Scope 2* GHG emissions 80% by FY2030 from a FY2017 base year.
 Reduce absolute Scope 3* GHG emissions from purchased goods and services, upstream transportation and distribution, business travel and downstream transportation and distribution 55% by FY2030 from a FY2017 base year.  Reduce absolute Scope 1*, 2*, and 3* GHG emissions 90% by FY2040 from a FY2017 base year.
 Commit to reach Net-Zero GHG emissions across the value chain by FY2040 from a FY2017 base year.
*Scope 1 & 2: Global owned and operated stores, offices and distribution centers.

Scope 3: Employee travel, transportation, finished goods manufacturing, and raw materials manufacturing.

To reach these carbon emission reduction goals, Patagonia utilizes environmentally preferred materials such as organic cotton and recycled polyester and nylon, reducing reliance on virgin petroleum fibers. Patagonia is a certified B Corp, meeting certain social and environmental responsibility standards with the goal to create value for the broader society versus just traditional shareholders. In addition, Patagonia’s self-imposed Earth tax, 1% for the Planet, provides support to environmental nonprofits working to defend our air, 477
Council Agenda Report September 10, 2024 Page 2 of 2
land and water around the globe. Patagonia carries a variety of clothing and outerwear items that could be utilized by City departments (i.e. T-shirts, hats, sweaters, jackets, vests, gloves, etc.).

City purchase of clothing and outerwear is required to be the best priced products that meets the need and typically falls within the spending limit of Department Directors without a solicitation of quotes. However, if multiple orders utilize a single vendor and the combined total exceeds $10,000, solicitation for bids from three vendors would be required. With a 10 unit minimum to qualify for the Patagonia bulk discount (30-40% off), there is a realistic potential for total single vendor expenses to exceed the $10,000 limit. Purchase of a jacket for every employee would certainly exceed that limit.
 One option is for staff to prepare a request for quotes that includes criteria necessary to meet the clothing and outerwear needs of participating departments and meet specified standards to minimize environmental impacts, invite at least three vendors to submit and evaluate the quotes based on purchasing policy criteria.  A second option is for the City Council to adopt a specific policy requiring clothing and outerwear purchases to be made through Patagonia due to their unique and unmatched environmental sustainability standards.
 A third option is to open a B2B account with Patagonia for departments to voluntarily make bulk orders for their specific purpose, however, the Finance Department would need to monitor total spending to ensure the $10,000 limit is not exceeded without following current procurement procedures. As an example, with current discounted pricing and order of 50 outerwear shell jackets would likely exceed this limit.

Additional considerations with this request include ensuring that departments have some flexibility to purchase products from another vendor when there is not a Patagonia product that meets their operational or safety needs. Patagonia also has Responsible Branding Guidelines that would need to be adhered to when putting the City logo or embroidery on these products. For these reasons, staff is recommending the third option, which makes the Patagonia group discount available for departments to utilize when a product is available that meets the need of that clothing item. This option would not require formal City Council action.

Financial Implications: Depending on direction from City Council on the options above there may be fiscal impacts associated with clothing and outerwear purchases being more expensive through Patagonia than other vendors.

Environmental Considerations: Adoption of the proposed procurement policy is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies).

Policy Implications: This action is consistent with Strategic Plan priority 1.5, Carbon Neutrality and Grid Reliability, goal to “Implement a variety of projects to reach the City’s 100% renewable energy and Climate Action Plan goals, eventually achieving carbon neutrality.”
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:23
Agenda Item: Update on City Website Improvements
Executive Summary: As a part of the 2023-2028 Strategic Plan, City Council requested to redesign or revamp the Cityâ€™s website with an emphasis on mobile responsiveness. The last redesign to the Cityâ€™s website was completed approximately six years ago in 2018. City staff is recommending a redesign incorporating an ADA software solution. A redesign focuses on updating the design, functionality, and content of a website to improve the userâ€™s experience without undergoing a complete overhaul or reimagining of the entire website structure. A redesign takes approximately six to eight months and will have limited impact on staff resources.

Requested Action / Suggested Motions: Receive and file
Responsible Staff Member: Sheree Juarez, PIO/Communications Specialist Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff_Report_City_Website_Improvements .docx
02-Presentation.pptx
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City Council Agenda Report September 10, 2024 Page 1 of 3 City of South Lake Tahoe
Report to City Council
Meeting Date: September 10, 2024
Title: Update on City Website Improvements
Location: Citywide
Responsible Staff Member: Sheree Juarez, PIO/Communications Specialist (530) 542-7950 Background: As a part of the 2023-2028 Strategic Plan, City Council requested to redesign or revamp the City’s website with an emphasis on mobile responsiveness. This action item found under Strategic Priority 5.2 Digital Government and is slated for the 2024-2025 fiscal year.

The City’s website has been managed by Civic Plus since 2010 via a Content Management System (CMS). A CMS is designed to simplify the publication of web content while users do not need to have knowledge of HTML or other technical skills.

Issue and Discussion:

Website Improvements
A Website Redesign Team of City staff from each department has been established and has already been working to update content on the website in preparation for a redesign. For the past few months, this team has been working on fixing broken links, updating keywords and descriptions to increase Search Engine Optimization, removing old documents and outdated information, updating the staff directory, and ensuring that data is ADA accessible. The website redesign committee will be essential to continued improvements since they will play a vital role in how their department’s webpage is structured.

City staff have also been working with CivicPlus to improve the mobile responsiveness of the website. Mobile responsiveness is when the content, layout, and functionality of the website automatically adapts to fit the screen size, orientation, and resolution of devices such as a smartphone or tablet. On the City’s website, mobile responsiveness becomes an issue when an iframe is being used to share content. An iframe allows websites to display HTML elements from other sources, such as videos, maps, or social media feeds, directly on a web page. An example of this can be seen on the meeting agenda page. The meeting agendas, generated through the Granicus platform, are in an iframe which is embedded on our website. Adjustments to the meeting agenda iframe were made by CivicPlus earlier this year to allow viewers to scroll within the iframe to the agenda packet links on the right side. Although the need to scroll within the window is still not optimal, it does provide access to the content and is the only option for a CMS where content from other sources is displayed.
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City Council Agenda Report September 10, 2024 Page 2 of 3 Website Redesign
A redesign is recommended approximately every four years by means of updating the design, functionality, and content of a website to improve the user’s experience. A redesign focuses on improving specific aspects of the website without undergoing a complete overhaul or reimagining of the entire website structure. The new design can feature a new layout/structure, new color palette, as well as different use of modules and widgets on the homepage. The redesigned site will also be highly compliant with ADA as well as mobile responsive. The last redesign to the City’s website was completed approximately six years ago in 2018.

The redesign can take anywhere from six to eight months based on staff time and involvement from the CMS provider.

Other areas of importance for the City’s website include changing the City’s domain name to “.gov” or “.ca.gov” domain. On October 8, 2023, Governor Gavin Newsom signed Assembly Bill (“AB”) 1637 into law. AB 1637 requires all cities and counties, including charter cities, to transition all public-facing websites, employee websites, and employee email addresses to a “.gov” or “.ca.gov” domain by January 1, 2029. With the redesign, the CMS provider will assist with the domain change to be compliant with this law.

In addition, government websites must comply with Web Content Accessibility Guidelines (WCAG)

2.1 levels A and AA by April 26, 2027. On April 8, 2024, the Department of Justice issued a Final Rule under Title II of the American with Disabilities ACT, which requires local government websites and mobile applications to comply with WCAG 2.1 Levels A and AA. Some of these guidelines include having text alternatives, time-based media, proper headings, lists, and tables so screen readers can interpret the content, and sufficient contrast between text and background colors. It is recommended that we include an ADA solution going forward to comply with WCAG guidelines.

Lastly, we recommend continuing annual training for the City’s website to ensure that staff can effectively navigate through the content management system, utilize all tools, and to keep abreast of new features. The training would include new and advanced users training as well as ADA training.

Website Redesign
Implementation $14,000
ADA $600
Total $14,600
Annual Cost Estimate
Host and Support $9,700
Mass Notification
Alerts
$12,000
ADA $11,000
Training $2500
Total $35,200
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City Council Agenda Report September 10, 2024 Page 3 of 3 Financial Implications: $50,000 was approved in the fiscal year 2024/2025 budget adoption for City website upgrades and no additional funding is anticipated to be needed.

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

Policy Implications: City Council direction is consistent with Strategic Plan Priority 5.2, Digital Government, and Action Item 5.2.3, Update or Revamp City Website including mobile friendliness.
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Update on
City Website Improvements
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Background
• The City’s website has been managed by Civic Plus since 2010 via a Content Management System (CMS).
• Last redesign to the City’s website was completed approximately six years ago in 2018.
• As a part of the 2023-2028 Strategic Plan, City Council requested to redesign or revamp the City’s website with an emphasis on mobile responsiveness. • Action item is found under Strategic Priority 5.2 Digital Government and is slated for the 2024-2025 fiscal year.
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Website Improvements
• Website Redesign Team established to update/clean-up content on the City’s website in preparation for the redesign
• Responsibilities include:
• Ensure proper formatting is utilized for all webpages • Update keywords and descriptions to increase Search Engine Optimization • Remove outdated documents and information
• Keep staff directory up-to-date
• Ensure that links and content are ADA friendly
• Website Redesign Team is essential to redesign
• Provide input on the design and layout of their department’s webpage as well as the City’s website
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Mobile Responsiveness
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Mobile Responsiveness (continued)
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Website Redesign
• A redesign focuses on improving specific aspects of the website without undergoing a complete overhaul or reimagining of the entire website structure. • Redesign may consist of the following:
• New layout/structure
• New color palette
• Different use of modules and widgets on the homepage
• ADA Compliancy
• Mobile responsiveness
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CivicPlus Redesign Examples
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.GOV Domain
On October 8, 2023, Governor Gavin Newsom signed Assembly Bill (“AB”) 1637 into law. AB 1637 requires all cities and counties, including charter cities, to transition all public-facing websites, employee websites, and employee email addresses to a “.gov” or “.ca.gov” domain by January 1, 2029.
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ADA Website Compliance Software
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ADA Compliancy
Government websites must comply with Web Content Accessibility Guidelines 2.1 levels A and AA by April 26, 2027. 492
Website Redesign Costs Plus Annual Fees
Website Redesign
Implementation $14,000
ADA $600
Total $14,600
Annual Cost Estimate
Host and Support $9,700
Mass Notification Alerts $12,000
ADA $11,000
Training $2500
Total $35,200
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Questions
494
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:24
Agenda Item: Airport Food & Beverage Lease & Concession Agreement with Flight Deck Grill & Golf Club, LLC
Executive Summary: Suite 105 has operated as an airport restaurant/bar since 1970. The Flight Deck, LLC terminated its lease effective February 16, 2024 and the Airport Manager issued an RFP on January 24, 2024. Flight Deck Grill & Golf Club, LLC submitted a proposal, and the Airport is looking to award the space to the concessionaire. This area is vital to the Airport's revenue stream and helps keep the Airport self-sustaining.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the Airport Food & Beverage Lease & Concession Agreement with Flight Deck Grill & Golf Club, LLC.

Responsible Staff Member: John Dickinson, Airport Manager Reviewed and Approved By: Anush Nejad, Director of Public Works Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney Attachments:
02- Lease and Concession Agreement Flight Deck Golf and Grill 03-Flight Deck Golf and Grill Proposal
04- Presentation
01- Staff Report Flight Deck Golf and Grill
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AIRPORT SUITE LEASE 105

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South Lake Tahoe City CouncilSeptember 10, 2024

South Lake Tahoe City Council
September 10, 2024