South Lake Tahoe City Council
September 10, 2024

FOOD & BEVERAGE LEASE AND CONCESSION AGREEMENT
The Lake Tahoe Airport Food and Beverage Lease and Concession Agreement ("Agreement") effective as of September 10, 2024 (“Effective Date”), is entered into by and between the CITY OF SOUTH LAKE TAHOE, a California municipal corporation (“CITY”), and Flight Deck Grill & Golf Club LLC, a Nevada Limited Liability Company, as (“LESSEE”).

RECITALS
A. CITY owns, controls, and operatesthe Lake Tahoe Airport ("AIRPORT") located in the City of South Lake Tahoe, El Dorado County, State of California; and B. The CITY desires to grant the LESSEE an exclusive non-aeronautical right to operate a food and beverage concession, catering and food service at the airport. This includes a right to operate food and beverage vending machines on AIRPORT property and a right of first refusal to provide catering services to special events at the AIRPORT; and C. CITY desiresto make such services available at the AIRPORT and LESSEE is qualified, ready, willing, and able to provide such services; and
D. In consideration of the premises described in Exhibit “A” and the mutual covenants contained in this Agreement, the parties hereby agree as follows:

AGREEMENT

1. TERM
The term of this Agreementshall be for a period of five (5) years, commencing on the Effective Date, and continuing through September 9, 2029 unless earlier terminated under the provisions of this Agreement. The parties may agree to one (1) five (5) year lease extension upon mutual agreement in writing by both parties. LESSEE has no right to retain possession of the Premises beyond the expiration or termination of this Agreement. The failure of LESSEE to timely surrender the Premises shall constitute a holdover and in the event ofsuch holdover, rent shall be immediately increased to amount equal to 150 percent of the rent applicable during the month immediately preceding the expiration or termination.

2. LEASED PREMISES
CITY hereby leases to LESSEE, and LESSEE hereby leases from CITY, the following premises, identified and shown on Exhibit A, and made a part hereof as the exclusively leased areas ("Premises"), together with the right of ingress and egress:
496
AIRPORT SUITE LEASE 105

A. Real property as described on Exhibit “A.”
B. The following personal property belonging to the CITY as described in Exhibit “B”; personal property is generally described as restaurant fixtures and equipment (“CITY Fixtures”).

LESSEE shall be entitled to use CITY Fixtures during the term of this Agreement and shall return the same to the CITY at the end of the term in good working order.

C. Thirty (30)square feet of public space in the airport terminal building is made available to the LESSEE to install automated food & beverage vending machines. Locations for any vending machines will be established by mutual agreement between both parties. LESSEE is provided right to operate, maintain, and collect revenues from vending machines that do not exceed 30 square feet of area on common use areas of airport property.

3. PAYMENTS
A. Rent. In consideration of the rights and privileges granted by this Agreement, beginning on November 1, 2024, LESSEE agrees to pay to CITY during the term of this Agreement rent in the sum of $2000.00 per month for the first Six (6) months until May 1, 2025. Monthly rent shall be adjusted annually as follows: On May 1st of each year of the Agreement, the monthly rent shall be computed by applying the new rental amount in Exhibit “C”.

B. Time of Payment and Late Charge. LESSEE shall pay CITY at its Airport offices without reduction, abatement, deduction, offset or any prior demand therefor, commencing on the first day of the month following the Effective Date, all monthly payments provided for in the Agreement. LESSEE shall pay the rent for the first month of this Agreement, prorated to the day of the month when the Agreement is executed, upon execution of the Agreement. Any payment after the tenth (10th) of each month shall be considered late and will be assessed a late fee of $100.

All sums payable to CITY on the first day of each month in the form of a check, cash or credit card to the City’s Finance Department located at 1901 Lisa Maloff Way, Suite 210, South Lake Tahoe CA 96150, and made out to: City of South Lake Tahoe. If LESSEE shall fail to pay any amounts due pursuant to the terms of this Agreement late fees will continue to accrue monthly until the balance is paid in full and the account is made current.

C. Security Deposit. LESSEE shall deposit $5,000 with CITY upon execution of this Agreement, which sum shall be held by CITY assecurity forthe faithful performance by LESSEE of all of the terms, covenants, and conditions of this Agreement to be kept and performed by LESSEE. If at any time the rent herein reserved shall be overdue and unpaid, or any othersum payable to CITY by LESSEE hereunder shall be overdue and unpaid, CITY may, at its option, 497
AIRPORT SUITE LEASE 105

appropriate and apply all or any portion of said deposit to the payment of any such overdue rent or other sum. If LESSEE fails to keep and perform all of the terms, covenants, and conditions of this Agreement to be kept and performed by the LESSEE, then CITY may, at its option, appropriate and apply the deposit to the amount of losses or damage sustained or suffered by CITY by reason thereof. Should the entire deposit or any portion thereof be appropriated and applied by CITY as herein provided, then LESSEE shall, upon written demand of CITY, forthwith remit to CITY a sufficient payment to restore said security to the original amount. LESSEE’S failure to do so within five business (5) days after receipt of such demand constitutes a material breach of this Agreement. The LESSEE further agrees to pay a security deposit for each Airport Gate Card Key and Airport Office Key in accordance with the currently approved City Master Fee Schedule.

Rent/Security Deposit: $5,000.00 (refundable based on condition) Gate Card: $50.00 (per card refundable upon return)
Office Key: $25.00 (per key refundable upon return)
D. Taxes. The LESSEE shall pay all taxes, licenses, fees, and other lawfully levied moniesimposed as a result of thistenancy to the appropriate government entity, including any real estate taxes and personal property taxes levied upon the Premises. NOTICE IS HEREBY GIVEN THAT PURSUANT TO CALIFORNIA REVENUE AND TAXATION CODE SECTION §107.6,

THAT THIS LEASE MAY CREATE A POSSESSORY INTEREST AND, IN THAT EVENT, OCCUPANT IS

HEREBY OBLIGATED TO PAY ANY AND ALL REAL PROPERTY TAXES LEVIED ON SAID POSSESSORY INTEREST.

E. Common Area Maintenance Fee. A Common Area Maintenance Fee in the amount of $400.00 per month (the “CAM Fee”) is provided as the Airport restaurant/bar attracts the second largest customer base after the CITY to common areas of the airport terminal. These include restrooms, parking lots, and common lobby areas. As certain common areas are shared, the LESSEE agrees to pay the CITY a share of costs for the CITY providing the following services: restroom janitorial service in common area restrooms inside the airport terminal building, non-leasehold common area janitorial service inside the terminal building, replacement of HVAC intake filters, annual fire extinguisherservice (excluding the kitchen hood suppression system) and exterior parking lot/access road snow removal. The CAM Fee shall increase at a rate ofthree percent (3.0%) annually commencing each May 1st ofthe Agreement.

F. Utilities. LESSEE Agreesto pay the CITY for prorated share of gasfor lease area heating on CITY meter as indicated in Exhibit C and LESSSEE will pay for restaurant trade fixture gas usage on a separate gas meter, LESSEE will pay for electricity to the CITY through a submeter installed for the leasehold based on rate methodology found in Exhibit D. CITY agrees to pay for all water and sewer charges on the CITY meter. For all other utilities, LESSEE agrees to 498
AIRPORT SUITE LEASE 105

create account in LESSEE’s name in accordance with Section 7.A.

4. RIGHTS AND OBLIGATIONS OF LESSEE
A. Required Restaurant Concession Services. LESSEE is hereby granted the exclusive privilege to engage in, and LESSEE agreesto engage in, the business of providing on premises:
prepared food, and alcohol service. LESSEE agrees that it will use its good faith effort to be open and available for business between 11:30 a.m. and 9:00 p.m. daily, forthe number of days per week, during the time periods set forth as follows:

1. Seven (7) days per week: with the exception of the following holidays: Christmas Eve, Christmas Day, Thanksgiving Day, and Veterans Day.

2. If the CITY declares an emergency (blizzard conditions,flooding,fire) premisesmay close early, open late or remain closed until said CITY emergency declaration is lifted.

3. Special private party events maybe held in the restaurant no more than once per month (12 times per year)

4. LESSEE shall open for businessto the public in the Premises within sixty (60) days of the Effective Date.

B. Authorized Services. In addition to the services required to be provided by LESSEE pursuant to Paragraph 4.A, LESSEE is authorized, but not required, to provide the following services and to engage in the following activities: food catering (in-flight aircraft), food catering (event & party), live entertainment, food delivery and airport food/beverage vending services.

LESSEE shall have the right of first refusal to provide special event catering services at the AIRPORT. If LESSEE does not respond to a catering services request by providing a proposal within 48 hours, then AIRPORT may arrange to have a different vendor provide those services.

C. Operating Standards. In providing any of the required and/or authorized services or activities specified in this Agreement, LESSEE shall operate for the use and benefit of the public and shall meet or exceed the following standards:

1. LESSEE shall provide for both prepared cooked food and beverage services. LESSEE shall have sole discretion on food menu items and pricing forsaid menu items. The LESSEE must provide for cooked, prepared food offeringsto the public at large and cannot operate solely as a bar-beverage only establishment. Beverage service should offer a choice of alcoholic and non-alcoholic offerings.

2. LESSEE shall furnish service on a fair, reasonable, and nondiscriminatory basis to all users of the Airport. LESSEE shall charge fair, reasonable, and nondiscriminatory prices for each unit of sale or service; provided, however, that LESSEE shall be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similartypes of price reductions.
499
AIRPORT SUITE LEASE 105

3. LESSEE shall have at least one employee staffed at its operations at the Airport during the hoursset forth in Paragraph 4(A). Such employee shall be qualified and experienced, and vested with full power and authority to act in the name of LESSEE with respect to the method, manner and conduct of the operation provided under this Agreement. Such employee shall be available at the Airport during the hours set forth in Paragraph 4(A).

4. LESSEE shall provide, at its sole expense, a sufficient number of employees to provide effectively and efficiently, the services required or authorized by this Agreement.

5. LESSEE shall control the conduct, demeanor, and appearance of its employees, who shall be trained by LESSEE and shall possess such technical qualifications and hold such certificates required by any government authority in carrying out assigned duties. Itshall be the responsibility of LESSEE to maintain close supervision over its employees to assure a high standard of service to customers of LESSEE.

6. LESSEE shall comply with all federal, state, and local laws, rules and regulations which may apply to the conduct of the business contemplated, including rules and regulations promulgated by CITY, including the prohibitions on use of polystyrene food containers and single-use plastic utensils and single-use water bottles in Chapter 4.175 of the South lake Tahoe City Code, and LESSEE shall maintain in effect and post in a prominent place all necessary and/or required licenses or permits including a California Liquor License.

7. LESSEE shall accept customer payment via cash, Visa, and Master Card at a minimum.

8. LESSEE must obtain a California Liquor License before serving any beverages for which a liquor license is required.

9. LESSEE shall be responsible for the maintenance and repair of the Premises and shall keep and maintain the Premises in good condition, order, and repair, and shall surrender the same upon expiration of this Agreement, in the condition in which they are required to be kept, reasonable wear and tear and damage by the elements not caused by LESSEE’S negligence excepted.

10. It is expressly understood and agreed that, in providing required and authorized services pursuant to this Agreement, LESSEE shall have the right to choose, in its sole discretion, its vendors and suppliers.
500
AIRPORT SUITE LEASE 105

11. LESSEE shall not store materials orsupplies at the Airport outside of any buildings.

LESSEE is responsible to provide for its own restaurant trash removal by setting up a commercial account with South Tahoe Refuse and is responsible to clean out the restaurant grease interceptor when full over the duration of the Agreement. The grease interceptor should be returned cleaned out at the termination of this Agreement.

12. LESSEE shall make no unlawful use of the Airport, nor commit or suffer or permit waste, excessive noise, obnoxious odors, excessive dust, or any other nuisance at the Airport.

13. LESSEE agreesto keep the Premises clear and free of all litter, garbage, debris, and refuse, and to keep such premises and area in an orderly and sanitary condition at all times.

14. LESSEE shall make a good faith effort to mitigate any and all impacts on CITY and CITY’S employees, guests, invitees, and other Tenants from LESSEE’S activities, including but not limited to noise, vibration, odor,steam, or other emissions. If CITY determines, in the reasonable exercise of its discretion, that LESSEE has failed to mitigate the impact of LESSEE’S activities after reasonable attempts, it is understood that CITY may reasonably restrict LESSEE'S activitiesthat negatively impact others.

15. LESSEE agrees to complete Tenant Improvements described in Exhibit “E” within 3 months of the Effective Date.

D. Maintenance of Books and Records; CITY’s Right to Audit. LESSEE shall prepare and maintain for inspection tax recordsrelated to the business(es) granted under this Agreement.

LESSEE shall make tax records and accounting records available for inspection by the CITY and its designated representatives within reasonable notice by CITY. Tax records and accounting records related to the LESSEE’s business activities on Premises shall be maintained for the full duration of the Agreement. The CITY and its designated representativesshall have the right to inspect the same when notice is provided in writing. City shall have the right, but not the obligation, to cause an annual audit to be conducted by an auditor selected by CITY, including any employee or contractor of CITY, of LESSEE's books, records and accounts relating to the Premises including, without limitation, all federal, state, county, or city reports and income and other tax returns, bank statements, operating manuals and procedures, sales receipts, active and inactive files, general ledgers, invoices, rental orders and check registers. LESSEE shall cooperate with and shall provide all information requested by such auditor and shall make LESSEE's employees available to cooperate with and provide all information requested by that auditor. All LESSEE financial records and documents will remain confidential to the extent allowable under the California Public Records Act. 501
AIRPORT SUITE LEASE 105

5. USE OF AIRPORT FACILITIES.

LESSEE shall be entitled, in common with others so authorized, to the use of all facilities and improvements of a public nature which now are appurtenant to the Airport. LESSEE’s employees and customers have use of the main public parking lot directly West of the airport terminal building. There is no overnight parking or long-term storage of vehicles allowed by LESSEE’s employees or patrons. Abusing vehicle parking privileges may result in removal and impounding of offending vehicle(s).

6. MAINTENANCE, ALTERATIONS, LEASEHOLD IMPROVEMENTS, SIGNSANDTRADE FIXTURES A. Maintenance and Repairs. LESSEE has had the opportunity to inspect the Premises and accepts the Premises, as well as the improvements thereon, “as-is” in their present condition and acknowledges that the Premises and the improvements are in good, clean, safe, and tenantable condition as of the date of the Lease. CITY owns CITY Fixtures. The LESSEE may, but is not required, to use the CITY Fixturesin the conduct of the LESSEE’s business at the Premises.

The LESSEE acknowledges the condition of all CITY Fixtures are operational and provided “asis” and “where-is” without warranty. The CITY shall have no obligation to maintain, repair, or replace any of the CITY Fixtures and it shall be the LESSEE’s responsibility to provide its own furniture, fixtures, and equipment in the operation of its business. If the LESSEE elects to use CITY Fixtures, LESSEE shall use care in operating the equipment, the LESSEE shall keep clean CITY Fixtures, and shall be responsible for and pay the costs of any damage to CITY Fixtures caused by the LESSEE occurring during the term of the Lease. There shall be no abatement, offset orreduction of rent related to the maintenance or upkeep of any of the CITY Fixtures by the LESSEE or the LESSEE’s choice to purchase any of its own Restaurant Trade Fixtures. CITY, at CITY’s cost and expense, shall maintain in good condition and repair the exterior roof, exterior walls, plumbing systems, HVAC systems, structural supports, and foundations of the Premises, provided that CITY shall not be liable for any damage to LESSEE or the property of LESSEE resulting from CITY’s failure to make any repairs required by this section unless written notice of the need for such repairs has been given to CITY by LESSEE and CITY has failed for a period of thirty (30) days after the receipt of such notice to make such repairs. Except as otherwise expressly provided herein, LESSEE shall, at LESSEE’S own cost and expense, keep and maintain all portions of the Premises, as well as all improvements on said Premises, in good order and repair and in a safe and clean condition as they were when received from CITY, reasonable wear and tear excepted. CITY shall have no obligation to repair, maintain or restore the Premises or to maintain any security or policing against theft, vandalism, malicious 502
AIRPORT SUITE LEASE 105

mischief, riot, social disorders, or other public offenses. Notwithstanding anything to the contrary herein, CITY will provide the following minimum services during the term of the Lease:

Restroom janitorial service to all publicly available facilities inside the airport terminal building (excluding leasehold) at least once daily with the exception of City Holidays and during a City emergency declaration, non-leasehold area public common area janitorial service including litter removal in parking lot, replacement of HVAC intake filters, annual fire extinguisherservice (excluding the kitchen hood suppression system) and snow removal in the parking lot and walkways as set forth in Paragraph 6H. Such services shall be provided at such times CITY deems necessary.

B. CITY Repairs Caused by LESSEE Actions. LESSEE shall repair any area damaged by LESSEE, LESSEE’s agents, employees, invitees, and visitors whether through active or passive negligence. Should LESSEE fail, neglect or refuse to do so, the CITY shall have the right, but not the obligation, to perform such maintenance or repairs for the LESSEE’s account, and the LESSEE agrees to promptly reimburse the City for the reasonable, out-of-pocket cost thereof (plus an additional twenty percent (20%) for overhead), provided, however, that the CITY shall first give LESSEE ten (10) days' written notice of its intention to perform such maintenance or repair. City shall not be obligated to make any repairs to or maintain any improvements on the Premises unless otherwise required by this Agreement. LESSEE shall be given reasonable notice when any such work may become necessary and will reasonably adjust operations to permit CITY to proceed expeditiously with such work. Subject to CITY’s maintenance and repair obligations as expressly set forth above, CITY shall not be liable to LESSEE for injury or damage that may result from any defect in the construction or condition of the Premises, nor for any damage that may result from interruption of LESSEE’s use of the Leased Premises during any repairs by CITY. LESSEE waives any right to repair the Premises at the expense of City under any applicable law.

C. Alterations; Removal of Lessee-Installed Property. Except for the Tenant Improvements described in Exhibit “E,” LESSEE shall make no alterations, decorations, additions, or improvements in the Premises or otherwise at the Airport without CITY’S prior written consent. All alterations, additions or improvements made by LESSEE at the Airport shall, unless CITY elects otherwise, as hereinafter provided, be the property of LESSEE and shall be removed by LESSEE, at LESSEE’S expense upon the expiration or termination of this Agreement. If CITY elects (upon written notice to LESSEE of such election given prior to the expiration or termination of this Agreement) that all or a designated portion of the alterations, additions, or improvements made by LESSEE shall remain on the Premises at expiration or termination of this Agreement, then said alteration, additions or improvementsshall become CITY’s property at no cost to CITY. Notwithstanding the foregoing; however, it is understood and agreed that LESSEE is entitled to any and all tax benefits associated with the use or relinquishment ofsuch additions or improvements. Machinery, equipment, and trade fixtures installed by LESSEE in the Premises shall not be considered "alterations, additions or improvements" subject to the foregoing provisions and shall be removed from the Airport by LESSEE on or before expiration or termination of this Agreement, provided any damage to 503
AIRPORT SUITE LEASE 105

CITY’s property resulting from such removal shall be repaired or restored at LESSEE’S expense.

All alterations, additions and improvements made by LESSEE shall be done in a workmanlike manner, with good materials, and in full compliance with all applicable CITY building codes, laws, ordinances, regulations, and directions of public agencies having jurisdiction, and free and clear from any and all liens, claims and demands for work performed, materials furnished, or operations conducted on the Premises.
a. Compliance with Prevailing Wage Laws. LESSEE acknowledges and agrees that LESSEE shall be responsible for complying with the California Prevailing Wage Law, including Labor Code sections 1720 et seq, for any construction, alteration, demolition, installation, and repair work as follows: (a) LESSEE to cause such work to be performed as a "public work," including, but not limited to, the payment of applicable prevailing wages to the all persons or entities subject to the California Prevailing Wage Law; (b) LESSEE shall cause all persons and/ or entities performing "public work" under the Agreement to comply with all applicable provisions of the California Prevailing Wage Law; (c) CITY is not responsible for LESSEE’s failure to comply with any applicable provisions of the California Prevailing Wage Law; (d) LESSEE's alleged or actual violations of the California Prevailing Wage Law shall constitute an event of default under the Agreement; and (e) LESSEE shall defend and indemnify City and its officers, employees, council members and agents from and against any and all claims, assessments, back-wages, penalties, change orders, suits, liability, judgments, damages, proceedings, orders, directives, costs, including reasonable attorneys' fees, arising from or relating to any actual or alleged violations of the California Prevailing Wage Law, or other application of laws, ordinances or regulations, by any person or entity, including but not limited to LESSEE, performing construction, alteration, demolition, installation, repair and/ or any other type of work contemplated under the Agreement.

D. Signs. LESSEE shall be entitled to maintain signs advertising its services in accordance with Tahoe Regional Planning Agency and CITY sign standards. CITY reserves the right to remove any sign erected by LESSEE and provided, further, thatsuch signs maintained by LESSEE shall be at such locations as CITY Development Services shall designate in advance in writing through a permit application and shall be of such type, design, color, size, composition, and material acceptable to and approved by the CITY Development Services Department in its sole discretion. All of LESSEE’S signs shall be maintained in good order, condition, and appearance during the term of this Agreement and shall be removed from the Airport by LESSEE at LESSEE’S sole expense on or before the expiration or other termination of this Agreement. LESSEE shall restore the premises to its pre-sign installation condition when it removes any sign.

E. LESSEE Owned Trade Fixtures. During the term of this Agreement, LESSEE shall have the right, at its expense, to place in or on the Premises trade fixtures, furnishings, personal 504
AIRPORT SUITE LEASE 105

property, equipment, and materials necessary to perform any servicesrequired or authorized hereunder. Said trade fixtures, furnishings, personal property, equipment, and materialsshall remain the property of LESSEE. Any LESSEE owned trade fixtures must be removed from the Premises at the termination of the Agreement pursuant to Paragraph 18.b.1.

F. CITY Owned Trade Fixtures. CITY owned personal property and trade fixtures are fully described in Exhibit “B” attached to this Agreement and have reoccurring service requirements.

These trade fixture specific service schedules are listed on Exhibit “B”. All required servicing is the financial responsibility of the LESSEE. The LESSEE must use a licensed and bonded professional contractor to perform servicing and repair of CITY owned personal property described in Exhibit “B”. LESSEE must maintain records of servicing CITY owned personal property fully described on Exhibit “B” for the duration of this Agreement. The CITY reserves the right to inspectservice recordsfor CITY owned personal property described in Exhibit “B”.

Failure of LESSEE to adhere to service schedule or repair CITY owned personal property may result in the CITY requiring LESSEE to purchase new replacement property of similar nature.

G. Restaurant Grease Interceptor/Trap. The CITY shall initially deliver to the LESSEE the Airport restaurant grease interceptor cleaned out and serviced for immediate use. After the initial delivery of possession of the Premises to LESSEE, LESSEE shall contract for routine servicing of the grease interceptor exclusively serving the Premises by a licensed contractor for such work in California. Repair and/or replacement of the grease interceptor during the term of this Agreement shall be the responsibility of LESSEE.

H. Snow Removal. CITY shall provide snow removal for the outside areas contained within the Premises. Such snow removal shall be provided on an as-available basis subject to the CITY priority schedule based on 3 inches or more observed snow depth. Snow removal will not occur when observed snow levels are lessthan 3 inches deep. The CITY agreesto remove snow from the main public parking lot, pedestrian access to/from main public parking lot, Lisa Maloff Way, and airport curb including ADA compliant parking stalls. LESSEE understands and agrees that CITY snow removal equipment (snowplows, snow blowers, shovels, etc.) is not available for LESSEE use.

I. Refuse Removal. LESSEE agrees to contract with South Tahoe Refuse to lease a dumpster for exclusive use by the LESSEE. The LESSEE may not use CITY owned dumpsters or recycling bins for LESSEE waste streams. Furthermore, the LESSEE acknowledgesthat there is brown bear activity in the area and that LESSEE refuse must be secured in a bear proof dumpster to prevent unwanted access. LESSEE is responsible to clean up waste when LESSEE fails to secure LESSEE dumpster from infiltration by wildlife.

J. Pest Control Services. LESSEE is responsible for all costs related to continual or event specific pest and rodent controlservicesin the Premises. The CITY providesfor on-going rodent controlservices in common use areas and CITY specific areas of the airport terminal building. 505
AIRPORT SUITE LEASE 105

7. UTILITIES
A. Utilities. LESSEE agreesto pay the cost of all utilitiesserving the Premises, including but not limited to a prorated share of natural gas on the CITY meter, the share of electricity from the CITY meter as measured monthly from a sub-meter installed for the leasehold area specifically, telephone services, and internet, cable including connection charges. LESSEE shall place said utilities in its own name where they are not sharing a CITY meter. LESSEE shall pay its pro-rata share of such utilities which remain in the name of the CITY. Premises utilities are connected in the following manner: Rooftop Air Conditioning is on CITY Meter, Restaurant Gas Furnace is on CITY Meter, Restaurant Electrical Outlets and Premises Lighting is on CITY subelectrical meter, Restaurant Fixtures (Kitchen Gas for Stove, Oven, Fryer) is on LESSEE Gas Meter. LESSEE hereby expressly waives any and all claims for damage against CITY arising from failure or interruption of utility services, including but not limited to, electricity, gas, water, plumbing, sewage, heat, ventilation, or air conditioning, or from construction activities at the Airport. Provided, thatsuch interruption is not caused by the intentional act or omission of CITY or its authorized representative. This Agreementshall continue in full force and effect despite any such interruptions.
i. LESSEE Agrees to Pay the CITY Monthly for Gas provided on CITY Meter for Premises Gas Furnace Heating. Monthly charges are fixed and outlined in Exhibit C.
ii. LESSEE Agreesto Pay the CITY monthly for electricity provided on CITY SubMeter for Premises based on usage. Monthly rates during contract period are outlined in Exhibit D.
iii. The CITY agreesto provide water and sewerservice at no additional charge to LESSEE and is inclusive in the rent consideration.

LESSEE Agrees to Pay for Gas charges for restaurant trade equipment on a separate meter.

8. HAZARDOUS SUBSTANCES
Hazardous Substances. The provisions ofthis Section, which govern LESSEE’S obligationswith regard to hazardoussubstances, as defined below,shallsurvive termination of this Agreement.

A. Definition of Hazardous Substance. For purposes of this Agreement, "Hazardous Substances" is defined to mean any substance, material, or waste, including asbestos and petroleum (including crude oil or any fraction thereof), which is or becomes designated, classified, or regulated as being "toxic", "hazardous", a "pollutant", or similar designation under any federal, state or local law, regulation or ordinance. 506
AIRPORT SUITE LEASE 105

B. Indemnity Regarding Hazardous Substances. LESSEE agrees to indemnify and hold CITY harmless from and against all liabilities, claims, actions, foreseeable and unforeseeable consequential damages, costs and expenses (including sums paid in settlement of claims and all consultant, expert and legal fees and expenses of LESSEE’S counsel) or loss directly or indirectly arising out of or resulting from the presence of any Hazardous Substances as a result of LESSEE’S or any sub-LESSEE’S activities, in or around any part of the property or the soil, groundwater or soil vapor on or under the property, including those incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work, or any resulting damages or injuries to the person or property of any of their parties or to any natural resources. Upon demand by CITY, LESSEE shall defend any investigation, action or proceeding alleging the presence of any Hazardous Substances in any such location, which affects the property, or which is brought or commenced against CITY, whether alone or together with LESSEE or any other person, all at LESSEE’S own cost and by counsel to be approved by CITY in the exercise of itsreasonable judgment. In the alternative, CITY may elect to conduct its own defense at the expense of LESSEE.

C. Compliance Regarding Hazardous Substances. LESSEE shall comply and cause all occupants of the Leased Premises to comply, with all laws, regulations, and ordinances governing or applicable to Hazardous Substances as well as the recommendations of any qualified environmental engineer or other expert which apply or pertain to the Premises.

LESSEE acknowledgesthat Hazardous Substances may permanently and materially impair the value and use of the Premises.

LESSEE shall not allow the installation or release of hazardous substances in, on, under or from the Premises. For the purposes of this provision, a release shall include, but not be limited to, any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leeching, dumping, or otherwise disposing of hazardous substance.

D. Notice Regarding Hazardous Substances. LESSEE shall promptly notify CITY if it knows, suspects, or believes, there may be any Hazardous Substancesin or around the Premises, orin the soil, groundwater, or soil vapor on or under the property, or that LESSEE or the Premises may be subject to any threatened or pending investigation by any governmental agency under any law, regulation or ordinance pertaining to any Hazardous Substances.

LESSEE shall give written notice to the CITY within five (5) days of receipt ofsuch knowledge or cause for belief. Provided, however, if LESSEE knows, or has reasonable cause to believe that such substance is an imminent and substantial danger to public health and safety, LESSEE shall notify the CITY promptly upon receipt of this knowledge or belief and shall take all acts necessary to alleviate such danger. LESSEE will notify the CITY promptly of any notice of violation received or initiation of environmental action or private suitsrelative to the Premises.

E. Site Visits, Observations, and Testing. CITY and its agents and representativesshall have 507
AIRPORT SUITE LEASE 105

the right at any reasonable time to enter and visit the Premises for the purposes of observing the Premises, taking, and removing solid or liquid samples, and conducting tests on any part of the Premises. Such entry shall be during normal business hours except for emergencies. CITY is under no duty, however, to visit or observe the Premises or to conduct tests. No site visit, observation or testing by CITY shall result in a waiver of any default of LESSEE or impose any liability on CITY. In no event shall any site visit, observation or testing by CITY be a representation that Hazardous Substances are or are not present in, on or under the Premises, or that there has been compliance with any law, regulation or ordinance pertaining to Hazardous Substances or any other applicable governmental law. Neither LESSEE nor any other party is entitled to rely on any site visit, observation or testing by the CITY. CITY shall not be obligated to disclose to LESSEE or any other party any report or finding made as a result of, or in connection with, any site visit, observation or testing by CITY. In each instance, CITY shall give LESSEE reasonable notice before entering the Premises or any other place CITY is permitted to enter under this Section. CITY shall make reasonable effortsto avoid interfering with LESSEE’S use ofthe Premises or any other property in exercising any right provided in this Section.

9. INDEMNIFICATION AND INSURANCE
A. Indemnification. LESSEE covenants and agrees to indemnify, protect, defend, and hold harmless CITY and its agents, employees, officers, affiliates, and representatives (collectively, “CITY Parties”) from and against any and all losses, claims, demands, damages, liabilities, actions, judgments, costs, and expenses (including, without limitation, reasonable attorneys’ fees) arising out of or resulting from (a) the negligent or willful acts or omissions of LESSEE, its agents, contractors, subcontractors, or employees, (b) any breach of any obligation, covenant, representation, or warranty of LESSEE under this Agreement, or (c) the use and operation of the Premises during the term of this Agreement. The foregoing shall not apply to any loss, claim, damage, liability, action, judgment, cost, or expense to the extent arising out of or resulting from any negligence or willful misconduct of any CITY Party. LESSEE’s obligations under this section shall survive the expiration or termination of this Agreement.

B. Required Insurance. LESSEE shall obtain and maintain continuously in effect at all times during the term of this Agreement, at LESSEE’S sole expense, the following insurance:

1. Workers’ Compensation Coverage. LESSEE shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, LESSEE shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation of all Workers’ Compensation policies must be received by CITY at least thirty (30) days prior to 508
AIRPORT SUITE LEASE 105

such change. LESSEE shall provide thirty (30) days written notice of nonrenewal of any Workers’ Compensation policies. The insurer shall agree to waive all rights of subrogation against CITY, its officers, agents, employees, and volunteersfor losses arising from work performed by LESSEE for CITY.

2. Automobile Liability Coverage. LESSEE shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the LESSEE arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not lessthan one million dollars($1,000,000) combined single limitfor each occurrence.

3. Commercial Liability Coverage. LESSEE shall maintain in full force and effect for the period covered by this Agreement, commercial general liability insurance. This insurance shall include, but shall not be limited to, comprehensive general liability insurance providing protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from any act or occurrence arising out of LESSEE’s operationsin the performance of this Agreement. The policy shall provide not less than single limit coverage applying to bodily and personal injury, including death resulting therefrom, and Property damage in the minimum amounts of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000.00) per aggregate. The insurance shall include coverage for the following: (i) Premises/Operations; (ii) Contractual; (iii) Broad Form Property Damage and (iv) Personal Injury.

4. Leasehold Improvements. During the Term, LESSEE shall maintain in full force and effect on all leasehold improvements installed by LESSEE after the Effective Date, interior and exterior signage, fixtures, merchandise, and other personal property from time to time in, on or upon the Premises, fire and extended coverage insurance in the amount of the full replacement value thereof containing sprinkler leakage, replacement cost and inflation endorsements, and providing for no deductible in excess of two thousand dollars ($2,000) per loss. All proceeds from the insurance required pursuant to this subsection shall be used for the repair or replacement of the property damaged or destroyed. Both CITY and LESSEE shall be named as co-insured’s asto coverage of leasehold improvements, and alterations, though not as to LESSEE’s personal property. CITY shall maintain similar fire and extended coverage insurance upon the building presently located upon the Premises in the amount of the full replacement value thereof containing sprinkler leakage, replacement cost and inflation endorsements.

5. Endorsements. Each general liability and automobile liability insurance policy 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:
509
AIRPORT SUITE LEASE 105

i. CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to LESSEE’s operations under LESSEE’s General Liability and Automobile Liability policies with respect to liability arising out of this Agreement and/or work performed by or on behalf of the LESSEE, including materials, parts or equipment furnished in connection with such work or operations. ii. This policy shall be considered primary insurance as respects CITY, its elected or appointed officers, officials, employees, agents, and volunteers.

Any insurance maintained by CITY, including any self-insured retention CITY may have, shall be considered excess insurance only and shall not contribute with it.
iii. Thisinsurance shall act for each insured and additional insured asthough a separate policy had been written for each, except with respect to the limits of liability of the insuring LESSEE.
iv. The insurer waives allrights ofsubrogation against CITY except for LESSEE’s Commercial Liability and Employers’ Liability policies, its elected or appointed officers, officials, employees, or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to CITY, its elected or appointed officers, officials, employees, agents, or volunteers.
vi. No policies of insurance carried by Lessee shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City (10 days’ notice in case of non-payment of premium).

6. Deductibles and Self-Insured Retentions. The LESSEE shall be responsible for all deductibles in all of LESSEE’s insurance policies. The amount of deductibles for insurance coverage required herein shall be reasonable in keeping with LESSEE’s general operations.

7. Certificates of Insurance. LESSEE shall provide certificates of insurance with original or copies of endorsements to CITY as evidence of the insurance coverage required herein. LESSEE shall not commence work under this Agreement until all insurance required under this section has been approved by CITY as to form, amount, and carrier, nor shall LESSEE allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent 510
AIRPORT SUITE LEASE 105

limits of the subcontractor has been so obtained and approved.

10. FEDERAL AVIATION ADMINISTRATION REQUIREMENTS
A. As the facility where the Premises is located primarily serves as a public airport, the LESSEE shall comply with the following procedures adopted by the City of South Lake Tahoe which comply with the Federal Aviation Administration’s requirements:
i. Lake Tahoe Airport Rules and Regulations
ii. Lake Tahoe Airport Minimum Standards
iii. Lake Tahoe Airport Policies and Procedures
iv. Airport Security Plan (if required for commercial air operations)

11. NOTICES
A. Notices. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first-class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: Airport Manager
City of South Lake Tahoe
1901 Lisa Maloff Way.

South Lake Tahoe, CA 96150
Tel: (530) 542-6182
Email: [email protected]
Provide a copy to: City Attorney’s Office
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 300
South Lake Tahoe, CA 96150
Tel: (530) 542-7478
Email: [email protected]
If to Lessee: Thomas McMurray
P.O. Box 6210
Stateline, NV 89449
Tel: (949) 322-4276
Email: [email protected]

12. CASUALTY
511
AIRPORT SUITE LEASE 105

A. Damage or Destruction of CITY Premises. In the event that any fixed improvements erected on the Airport by CITY are damaged or destroyed by fire or other casualty, the rent hereunder shall not abate provided the Premises are not rendered untenantable by such damage. If the Premises are rendered untenantable, and CITY electsto repair the Premises, the rentshall abate for the period during which such repairs are being made, provided the damage was not caused by acts or omissions of LESSEE, its employees, agents, or invitees, in which case the rent shall not abate. If the Premises are rendered untenantable and CITY elects not to repair the Premises this Agreement shall terminate.

A. Damage or Destruction of LESSEE Premises. In the event of damage to or destruction caused by the negligent or intentional act of LESSEE, of LESSEE-constructed improvementslocated within the Premises or in the event LESSEE-constructed improvements located within the Premises are declared unsafe or unfit for use or occupancy by a public entity with the authority to make and enforce such declaration, LESSEE shall, within ninety (90) days of such damage, destruction or declaration commence and diligently pursue to completion the repair, replacement, or reconstruction of improvements necessary to permit full use and occupancy of the Premisesfor the purposesrequired by this Agreement. Repair, replacement or reconstruction of improvements within the Premises shall be accomplished in a manner and according to plans approved by CITY.

13. CONDEMNATION
A. Power of Eminent Domain. If all or any part of the Premises is taken by any public or quasi-public agency or entity under the power of eminent domain during the term of this Agreement:
i. Either CITY or LESSEE may terminate this Agreement by giving the other thirty (30) days' written notice of termination; provided, however, that LESSEE cannot terminate this Agreement unless the portion of the Premises taken by eminent domain isso extensive asto renderthe remainder of the Premises uselessforthe uses permitted by this Agreement.
ii. If only a portion of the Premisesistaken by eminent domain and neither CITY nor LESSEE terminatesthis lease, the rent thereafter payable under this Agreement shall be reduced by the same percentage that the floor area of the portion taken by eminent domain bears to the floor area of the entire Premises. iii. If any portion of the Airport otherthan the Premisesistaken by eminent domain, CITY may, at its option, terminate this Agreement by written notice to LESSEE. iv. Any and all damages and compensation awarded or paid because of a taking of the Premisesshall belong to CITY, and LESSEE shall have no claim against CITY or the entity exercising eminent domain power for the value of the unexpired term of this Agreement or any other right arising from this Agreement. 512
AIRPORT SUITE LEASE 105

14. LESSEE AS INDEPENDENT CONTRACTOR
A. In conducting its business, LESSEE acts as an independent contractor and not as an agent, partner, or joint venture of the CITY. The selection, retention, assignment, direction, and payment of LESSEE’S employees shall be the sole responsibility of LESSEE, and CITY shall not attempt to exercise any control over the daily performance of duties by LESSEE’S employees.

15. [RESERVED]

16. ASSIGNMENT AND SUBLETTING
A. Assignment and Subletting. Without CITY’s written consent, with such consent not to be unreasonably withheld or delayed, LESSEE shall not assign, transfer, sublease, pledge, surrender, or otherwise encumber, or dispose of this Agreement or any estate or right created by this Agreement, or any interest in any portion of the same, or permit any other person or persons, company, or corporation to occupy the Premises except to a subsidiary, affiliate, or other entity where the beneficial ownership is substantially similar to that of LESSEE. This Agreement is non-transferable. Except as provided above, any attempt to transfer this Agreement from LESSEE by merger, consolidation, or liquidation, or the sale, conveyance, transfer by bequest or inheritance, or other transfer of a controlling interest in LESSEE shall constitute a default and termination of the Agreement.

17. PERMITS AND REGULATIONS
A. Permits.

1. LESSEE shall be solely responsible for, obtain and pay for any and all permits required by all federal, state, and local governmental entities for any and all work on alterations, additions modifications, installations, or improvements accomplished by LESSEE or by others on behalf of or for the benefit of LESSEE, or caused or allowed to be accomplished by LESSEE on the Premises. Any consent of CITY required underthis Agreementshall be separate from any other consents or approvals required by any federal, state, or other governmental agency.

2. It is expressly agreed that LESSEE allowing a subcontractor, independent contractor or other third party not an employee of LESSEE to utilize the Premises for LESSEE’S permitted business obligations shall not constitute an assignment or subletting but that allowing such person to utilize the Premises for other than LESSEE’S permitted business obligations on the Premises shall constitute a sub-lease and is prohibited.

B. Acceptance of Leased Premises. CITY is not obligated to make any improvementsto the Premises. LESSEE acknowledges having inspected the Premises, including plumbing, electrical, and mechanical systems and those fixtures, furniture and equipment set forth in Exhibit “B” 513
AIRPORT SUITE LEASE 105

attached hereto, and accepts the same AS-IS, WHERE-IS in their current condition as being suitable for the uses intended of the Premises as set forth herein. No representation, statement, or warranty, expressed or implied, is or shall be made by or on behalf of CITY asto the Premises’ condition, or as to the use that may be made of the Airport Terminal Building unless specifically set forth in writing. LESSEE releases CITY from any responsibility for any representation that may have been made to the LESSEE about the Premises and the Airport Terminal facility that is not specifically set out in this Agreement.

C. Compliance with Governmental Requirements. LESSEE shall, at LESSEE’S sole cost and expense, comply with all rules, regulations, ordinances, statutes, and laws of all counties, municipal,state, local, federal and other governmental authorities, now or hereafter in effect pertaining to the Airport, the Premises, or LESSEE’S use thereof. LESSEE shallspecifically ensure that all of LESSEE’S employees have proper Worker’s Compensation coverage in effect at all times.

Compliance with City Regulations. LESSEE shall at LESSEE’S sole cost and expense at all times during the term of this Agreement or any renewal or extension thereof comply with and observe all rules, regulations, ordinances, and laws which have been or may be promulgated by CITY relating to the Premises and the use of the facilities of the Airport including all fire regulations, safety regulations, noise control regulations and security regulations. Such rules and regulations are hereby made a part of this Agreement and LESSEE’S failure to keep and observe the rules and regulations shall constitute a breach of the terms of this Agreement in like manner as if the same were contained herein as covenants and conditions. CITY reserves the right to amend or supplement the rules and regulations and to adopt additional rules and regulations applicable to the Premises, to LESSEE’S use of the Premises, and the use of the facilities of the Airport. CITY shall have no obligation to LESSEE as a result of the violation of any such rules by any other person.

18. DEFAULT AND TERMINATION
A. General. This Agreement may be terminated by CITY or LESSEE immediately for cause or without cause upon thirty days (30) days written notice of termination. Termination, revocation, or expiration of this Agreement shall not release either party from liability resulting from an event which occurred prior to such termination, revocation, or expiration. Upon termination, revocation or expiration of this Agreement, LESSEE shall discontinue the use of the Premises and, upon written notice from CITY, remove from the Premises all personal property.

LESSEE shall restore the Premises as nearly as possible to the condition in which they existed immediately prior to the execution of this Agreement reasonable wear and tear or maintenance required to be made by CITY hereunder, damage by casualty, or taking by condemnation excepted. Property of LESSEE not removed from the Premises within 60 days after the termination, revocation, or expiration of this Agreement, shall become the property of the CITY. If this Agreement is terminated, CITY shall have all of the rights and remedies of a landlord provided by Civil Code section 1951.2, in addition to any other rights and remedies CITY may have. The damages which CITY may recover shall include without limitation; (i) the 514
AIRPORT SUITE LEASE 105

worth at the time of award of the unpaid rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of the award exceedsthe amount of the rental that LESSEE proves could have been reasonably avoided; (iii) the worth at the time of award computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%) of the amount by which the unpaid rentforthe balance of the term afterthe time of award exceedsthe amount of rental lossthat Lessee proves could be reasonably avoided; (iv) all reasonable out-of-pocket legal expenses and other related costsincurred by CITY following LESSEE’s default; (v) all reasonable costsincurred by CITY in restoring the Premises in good order and condition to re-lease the Premises; and (vi) all reasonable costs, including without limitation, any brokerage commissions incurred by CITY in re-leasing the Premises.

B. Surrender.

1. Trade Fixtures. Except for the items listed in Exhibit E, which are to remain on the Premises, LESSEE shall, at the termination of this Agreement, remove all LESSEE’s equipment, inventory, personal property, trade fixtures, and the like from the Premises and the Airport Terminal Building, repair any damage caused by such removal and shall deliver to CITY the Premises and all Improvements thereto, in the same condition they were at the commencement of the term, or as they were added pursuant to this Agreement during the term of this Agreement, reasonable wear and tear excepted. In the event of LESSEE’s failure to remove any of LESSEE’s equipment, inventory, personal property, trade fixtures and the like at LESSEE’s expense within ten (10) days after expiration or termination hereof, Airport may retain the same under CITY’s control, or sell at private or public sale, without notice, any or all of such property and retain the net proceeds of such sale or destroy such property.

2. Improvements. Except for the items listed in Exhibit E, which are to remain on the Premises, all alterations, additions or improvements made by LESSEE at the Airport shall, unless CITY elects otherwise, as hereinafter provided, be the property of LESSEE and shall be removed by LESSEE, at LESSEE’S expense upon the expiration or termination of this Agreement. If CITY elects (upon written notice to LESSEE of such election given prior to the expiration or termination of this Agreement) that all or a designated portion of the alterations, additions, or improvements made by LESSEE shall remain on the Premises at expiration or termination of this Agreement, then said alteration, additions or improvements shall become CITY’s property at no cost to CITY.
515
AIRPORT SUITE LEASE 105

3. Amortization Schedule. LESSEE has agreed to make Tenant Improvements to the Premises as set forth in Exhibit E. If CITY terminates the agreement within initial five-year Term, CITY shall compensate LESSEE for the value of the Tenant Improvements based on the following amortization schedule, upon LESSEE’s production of receipts to verify the total amount spent on the Tenant Improvements in Exhibit E met or exceeded $593,000. If receipts total less than this amount, compensation to LESSEE shall be prorated accordingly. CITY shall provide no compensation to LESSEE under this amortization schedule if LESSEE terminates the agreement.

Year 1 (Sept. 10, 2024-
Sept. 9, 2025)
$593,000.00
Year 2 (Sept. 10, 2025-
Sept. 9, 2026)
$474,400.00
Year 3 (Sept. 10, 2026-
Sept. 9, 2027)
$355,800.00
Year 4 (Sept. 10, 2027-
Sept. 9, 2028)
$237,200.00
Year 5 (Sept. 10, 2028-
Sept. 9, 2029)
$118,600.00

19. MISCELLANEOUS PROVISIONS
A. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

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

C. Headings. The headings used in this Agreement are intended for convenience of reference only and do not define or limit the scope or meaning of any provision of this Agreement.

D. Access by CITY. LESSEE shall permit CITY and its agents to enter the Premises at all reasonable times upon reasonable notice for any appropriate purpose, including, without limitation, the following purposes:

1. To inspect the Premises:

2. To maintain the Airport;
516
AIRPORT SUITE LEASE 105

3. To maintain or make such repairsto the Premises as CITY is obligated or may elect to make;

4. To make repairs, alterations, or additions to any other portion of the Airport;

5. To post notices of non-responsibility for alterations, additions, or repairs;

6. To access any areas reserved to the CITY herein;

7. To show the Premises to prospective LESSEES.

In case of an emergency, CITY may access the Premises without prior notice. CITY shall have such right of entry and the right to fulfill the purpose thereof without any rebate of rent to LESSEE for any loss of occupancy or quiet enjoyment of the Premises thereby occasioned.

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

F. Subordination. This Agreementshall be subordinate to the provisions of any existing or future agreement between the CITY and the United States or the State of California relative to the operation or maintenance of the airport, the execution of which has been or may be required as a condition precedent to the expenditure of federal or state funds for the development of the airport. Furthermore, this Agreement may be amended to include provisions required by those agreements with the United States or the State of California.

G. Aerial Approaches. CITY reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent LESSEE from erecting, or permitting to be erected, any building or otherstructure on or adjacent to the Airport which, in the reasonable opinion of CITY, would limit the usefulness of the Airport or constitute a hazard to aircraft.

H. Title. Title to the building upon which the LESSEE shall enjoy use shall remain with the CITY and shall not be transferable.

I. Force Majeure. Any prevention, delay or stoppage due to strikes, walkouts, labor disputes, acts of God, inability to obtain labor or materials or reasonable substance therefore, governmental restrictions, governmental regulations, governmental controls, enemy or hostile governmental action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of the party obligated to perform, shall excuse the performance by such party for a period equal to any such prevention, delay or stoppage, except for the obligation imposed with regard to rental and other charges to be paid by LESSEE pursuant to this Agreement.

J. Waiver of Relocation Benefits. LESSEE waives any and all relocation benefits defined in the California Relocation Assistance Law (Government Code section 7260, etseq.) in connection with this Agreement.
517
AIRPORT SUITE LEASE 105

K. Non-Discrimination. The LESSEE, as a part of the consideration hereof, does hereby covenant and agree that:

1. No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of the t Premises or LESSEE’s Improvements.

2. In the construction of any improvements on, over, or under such land and the furnishing ofservicesthereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination,

3. The LESSEE shall use the Premises and LESSEE’s Improvements in compliance with all otherrequirementsimposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination, in Federally assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.

L. Exhibits Incorporated. All exhibits to which reference is made in this Agreement are deemed incorporated in this Agreement by reference as though fully set forth herein, whether or not actually attached.

M. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

N. LESSEE’S Authority. LESSEE warrants that it has all requisite power and authority to execute, deliver, and perform under this Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.

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

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

Q. Entire Agreement. This Agreement constitutesthe complete and exclusive statement of Agreement between CITY and LESSEE. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement.
518
AIRPORT SUITE LEASE 105

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE: FLIGHT DECK GRILL & GOLF CLUB LLC By By
Cody Bass, Mayor Thomas McMurray, CEO
Business License #
APPROVED AS TO FORM: ATTEST:

By By
Heather Stroud, City Attorney Susan Blankenship, City Clerk Attachments:

Exhibit A – Description of the Premises
Exhibit B – City Owned Personal Property & Trade Fixtures Exhibit C – Annual Rental Rate for Term of Agreement
Exhibit D – Suite 105 Sub-Meter Electrical Rates
Exhibit E – Tenant Improvements
519
AIRPORT SUITE LEASE 105
Exhibit A

DESCRIPTIONOF PREMISES
520

AIRPORT TERMINAL/CITY HALL
1901 Lisa Maloff Way, SOUTH LAKE TAHOE, CALIFORNIA, 965150 EXHIBIT "A" LOCATION MAP
521
AIRPORT SUITE LEASE 105
Exhibit B

CITY OWNED PERSONAL PROPERTY & RESTAURANT TRADE FIXTURES 522
Existing Lake Tahoe Airport Trade Fixutres
Quantity Item Manufacturer Material Type Description Location Minimum Service
Schedule
Date Installed/
Purchased/
Leased
1 built In bar
counter
Custom Wood
Work wood
"L" Shaped Bar
Mounted to floor bar area None May‐98
1 bar sink Toppo stainless
3 wash sinks &
bottle ice chest bar area None May‐93
1 kegerator Micromatic stainless top 3 keg / 5 tap refrigerated annual disinfection of all
surfaces inside and
outside. drain any liquids
from inside fridge area. Aug‐18
2 electric ceiling
fans Unknown painted metal ceiling fan bar ara None unknown 1 Walk‐in Cooler
McQuay
PaceMaker
refridge unit stainless
large, Inside 6' x
10'
walk in fridge
/ dry goods
pantry
Annual removal of food
storage and deep clean.

Annual inspection of
refridgeration unit unknown
1 Stove /Oven/
Griddle Imperial steel
6 burner/ 2 over
with flat grill top kitchen
quaterly remove burners
and degrease allsurfaces
inside and out May‐93
1 Grille/Broiler Superior steel
stand alone grille
unit nextto 6
burner oven kitchen
quaterly remove grill and
degrease allsurfaces
inside and out unknown
1 Deep Fryer Avantco FF300 stainless
stand alone gas
fryer kitchen
quarterly drain and clean
allsurfaces with degreaser 21‐Jul
1 Deep Fryer Avantco FF300 stainless
stand alone gas
fryer kitchen
quarterly drain and clean
allsurfaces with degreaser Mar‐19
1 Refrigerator Unknown custom built
Builtinto Bar
Storage Unit
east wall bar
area
annual disinfection of all
surfaces inside and
outside. drain any liquids
from inside fridge area. unknown
1 Refrigerator Unknown custom built
Builtinto Bar
Storage Unit
east wall bar
area
annual disinfection of all
surfaces inside and
outside. drain any liquids
from inside fridge area. unknown
1 Refrigerator Unknown custom built
Builtinto Bar
Storage Unit
east wall bar
area
annual disinfection of all
surfaces inside and
outside. drain any liquids
from inside fridge area. unknown
1 Built in wash
station tables,
and drying
shelf Swisher Hygeine stainless L ‐ shape w/ sink kitchen None Apr‐93 1 wash sink with
long prep table Unknown stainelss
opposite stove in
kitchen kitchen None unknown
1 3 tub sink and
spigot Regency stainless 3 sink wash basin kitchen None May‐93 1 Refrigerator
Everest
Refridgeration stainless
double door
rolling cooler
with shelves kitchen
annual disinfection of all
surfaces inside and
outside. drain any liquids
from inside fridge area. unknown
1 Table Avantco stainless
prep county with
cooler storage &
2 door fridge
under prep area
opposite
stove in
Kitchen
annual disinfection of all
surfaces inside and
outside. drain any liquids
from inside fridge area. unknown
3 Fire
Extiguishers Buckeye steel
hand held fire
extinguishers
various
locations None serviced by City unknown
1 Extraction
Hood Unknown stainless, 6 filters large
Over stove &
fryersin
kitchen
Bi‐annual cleaning and
service by licensed
contractror Sep‐96
1 Fire
Extinguisher
System ProChem PCL‐350
hood fire
suppression
system
Bi‐annual cleaning and
service by licensed
contractror Oct‐96
1 kegerator Micromatic
Pro‐Line E‐Series
5 Keg
Alcholic Beverage
Cooler with Beer
Tap Bar Area
Bi‐annual cleaning and
service by licensed
contractror Mar‐18
523
AIRPORT SUITE LEASE 105
Exhibit C
ANNUAL FIXED RATE AT SUITE 105 FOR TERM OF THE AGREEMENT (Per Month Fixed Fees)
Year Rent
Amount
Base $/SF CAM
Fee
$/SF
including
CAM
Share of
Natural Gas
Utilities Paid
to City
Total Fees
Payable to
city
Total
$/SF
2024-2025 $2,000.00 $0.53 $400.00 $0.64 $174.15 $2,574.15 $0.68 2025-2026 $2,300.00 $0.61 $412.00 $0.72 $179.37 $2,891.37 $0.77 2026-2027 $2,600.00 $0.69 $424.00 $0.80 $184.75 $3,208.75 $0.85 2027-2028 $2,900.00 $0.77 $437.00 $0.88 $190.30 $3,527.30 $0.93 2028-2029 $3,300.00 $0.87 $450.00 $0.99 $196.00 $3,946.00 $1.04 *Lessor agreesto pay for water and sewer chargesin monthly “Lease Fee”. Lessee pays a prorated share of natural gas. Lessee has a sub-meter installed to account for Lessee share of electricity for leasehold. Section 7. provides more explanation regarding utilities. **Common Area Maintenance Fee (CAM Fee) As certain common areas are shared the Lessee agrees to pay the City a share of costs for the City providing the following services: restroom janitorial service in common area restrooms inside the airport terminal building, non-leasehold common area janitorialservice, replacement of HVAC intake filters, annual fire extinguisherservice (excluding the kitchen hood suppression system) and snow removal. The CAM Fee shall increase at a rate of three percent (3.0%) annually commencing each May 1st of the Agreement. The CAM and other fees will not be charged until November 1, 2024. 524
AIRPORT SUITE LEASE 105
Exhibit D
SUITE 105 SUB-METER ELECTRICAL RATES (Based on Usage kWh) Payments will be reflected on invoices one month in arrears.

Rates for Suite 105
525
AIRPORT SUITE LEASE 105
526
AIRPORT SUITE LEASE 105

EXHIBIT E

TENANT IMPROVEMENTS
Area Category Item EST Cost
Kitchen Asset Materials Kitchen & Bar $75,000.00
Entertainment Asset Sim Units $130,000.00
Entertainment Start-up Expense Clubs Full Sets $3,000.00 Construction Asset Build Out $307,000.00
Bar Asset Point of Sale System $33,000.00
Entertainment Start-up Expense AV/Audio/Alarm $25,000.00 Clerical Start-up Expense Design $20,000.00
Total $593,000
527
AIRPORT SUITE LEASE 105
528
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: Airport Food & Beverage Lease & Concession Agreement with Flight Deck Grill & Golf Club, LLC
Location: Airport, 1901 Lisa Maloff Way, Suite 105 (Restaurant), South Lake Tahoe, CA 96150 Responsible Staff Member: John Dickinson, Airport Manager (530) 542-6182 Background:

The Airport Restaurant is located in Suite 105 encompassing an area of 3,781 SF of which 923 SF is an outdoor observation deck. Suite 105 has operated as an airport restaurant/bar since 1970.

Effective February 16th, 2024, the Flight Deck Bar and Grill LLC, contract was terminated, and an RFP went out to replace the restaurant. The RFP was advertised for 45 days and had two bidders submitted proposals for the restaurant. Initially, Southern Hospitality was selected by the panel as the top ranked firm. However, they terminated negotiations.

After Southern Hospitality withdrew, and the Airport Manager started negotiations with the next qualified bidder, Flight Deck Grill & Golf Club, LLC.

Issue and Discussion:

The Airport is seeking a new lease with the Flight Deck Grill & Golf Club, LLC, operated by CEO Thomas McMurray. This lease is crucial to the Airport's revenue stream and will keep the Airport self-sustaining.

The concessionaire has also provided a 3D imaging of the facility:
https://oceaninteriors.shapespark.com/mcmurray_tahoe_airport/ The new tenant of the property is planning a significant upgrade to the facility as shown in the following table:

Table A – Financial Commitment
529
Council Agenda Report- September 10, 2024 Page 2 of 3
The lease term will begin on September 10th, 2024, for an initial five-year term, ending September 9th, 2029. There is an option to extend the lease for one additional five-year term upon mutual consent. The new tenant plans to update the restaurant with new menu offerings and entertainment. The new tenant has demonstrated they have the financial capability to operate a restaurant of this size in the South Lake Tahoe market. The proposed new tenant included a business proposal and a description of how they will operate the space.

Staff recommends the following action(s) for City Council:

Pass a motion authorizing and directing the Mayor to execute the Airport Food & Beverage Lease & Concession Agreement with Flight Deck Grill & Golf Club, LLC.

Financial Implications:

If the lease is approved by City Council, the Airport Enterprise Fund will continue to receive monthly rents in the amounts shown in the table below:

Table B – Annual Revenue
Year Rent
Amount
Base $/SF CAM
Fee
$/SF
including
CAM
Share of
Natural Gas
Utilities Paid
to City
Total Fees
Payable to
city
Total
$/SF
2024-2025 $2,000.00 $0.53 $400.00 $0.64 $174.15 $2,574.15 $0.68 530
Council Agenda Report- September 10, 2024 Page 3 of 3
2025-2026 $2,300.00 $0.61 $412.00 $0.72 $179.37 $2,891.37 $0.77 2026-2027 $2,600.00 $0.69 $424.00 $0.80 $184.75 $3,208.75 $0.85 2027-2028 $2,900.00 $0.77 $437.00 $0.88 $190.30 $3,527.30 $0.93 2028-2029 $3,300.00 $0.87 $450.00 $0.99 $196.00 $3,946.00 $1.04 With the new lease and concession agreement, the City is no longer responsible for the maintenance and replacement of City owned restaurant trade fixtures.

Environmental Considerations:

The proposed action is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301 (Existing Facilities) because it involves the leasing of existing public facilities involving negligible or no expansion of existing or former use.

Policy Implications:

The restaurant is a continuing conforming use of the airport terminal building. This lease will continue to provide revenue to the Airport and will provide additional convenience to the visitors to the Airport.
531
March 11, 2024
Attn: John Dickinson
Airport Manager, City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Thomas McMurray
PO Box 6210
Stateline NV 89449
(949) 322-4276
[email protected]
RE: 2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24 Dear Mr. Dickinson:

We are pleased to present our response and proposal for management, operation, and promotion of the Lake Tahoe Airport restaurant. It is our mission to develop and implement a revitalization project that will provide the airport with an updated dining experience and installation of state-of-the-art entertainment equipment. We are fully committed to the opportunity as outlined in RFP# 2024-01-24.

As a resident established in South Lake Tahoe, it’s understood the need for a responsive local organization to provide service and support to the surrounding community for years to come. We wish to form a long-term relationship with the Airport and City of South Lake Tahoe and develop your project specifications to the best possible result. We have reviewed this request and are prepared to meet this challenge with a wide range of resources to support and implement our project plan.

The proposal submitted here will remain valid until Tuesday July 11th, 2024, or a minimum of 120 days from the date of submittal.

Thank you for your consideration.

Sincerely,
Thomas McMurray

532
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Section 2. Rent
2,556 SF interior space
923 SF exterior patio
300 SF Optional interior space - vestibule
Total of 3,779 Square Feet
Total proposed monthly rent for year 1 $2,500.00/month (Exceeding previous owner terminated contract referenced below)
• % of gross sales (excluding alcoholic beverages) Due to the nature of project we are unable to determine details regarding this item. We are open to discussing this further as the project develops and the success of the business is determined so that all parties may benefit.

Current Lease (Terminated Early)
Year
New Rate
Effective
Aug 1
Rent
Amount
Base $/SF CAM
Fee
$/SF
including
CAM
Share of
Natural Gas
Utilities Paid
to City
Total Fees
Payable to
city
Total
$/SF
2024-2025 $2,500.00 $0.66 $400.00 $0.77 $174.15 $3,074.15 $0.81 2025-2026 $2,800.00 $0.74 $412.00 $0.85 $179.37 $3,391.37 $0.90 2026-2027 $3,100.00 $0.82 $424.00 $0.93 $184.75 $3,708.75 $0.98 2027-2028 $3,400.00 $0.90 $437.00 $1.02 $190.30 $4,027.30 $1.07 2028-2029 $3,800.00 $1.01 $450.00 $1.12 $196.00 $4,446.00 $1.18

533
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Section 3. Company Background & Experience
History:

Optimal Outsource Based out of Lake Forest, CA, was founded in 1997 by Tom McMurray aiding in streamlining homeowner association due collection and community news distribution. Offering innovative mailing and electronic solutions. Optimal’s unique business model allowed us to easily adapt, regardless of the size or location of associations. By investing in and developing the newest technology, our products and services were always instep with the constant change of the industry.

With our singular devotion to the property management industry, we mailed millions of homeowners’ monthly assessment dues and community news from 5 production facilities across the country. Sold November 2019.

Locations:

Lake Forest, CA
Avondale, AZ
Austin, TX
Princeton, IL
Clearwater, FL
Existing Projects
RoofTop Golf Club.

An innovative entertainment venue geared toward the golf enthusiast. Offering full-service dining and bar experience alongside state-of-the-art indoor golf simulators. Located in a newly constructed building in Southern California, patrons will have the opportunity to enjoy a modern distillery, 12 indoor golf simulator bays, and an open-air roof top lounge offering panoramic views. Grand Opening 2024.

534
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Sec 3 Cont.

New Project: RoofTop Golf, Opens 2024

535
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Section 3 Continued - Additional Ongoing Projects
NV 51 Special LLC (NV)- Entertainment/Restaurant/Bar – Ostrich Egg Distillery opens 2024.

Rooftop Golf Club LLC (NV) - Entertainment/Restaurant/Bar – Opening 2024 Stateline Management (NV)- Professional Management Services TNN Property and Investments (CA)- Real Estate Property and Development 7 Ranch Circle LLC (CA) - Real Estate Property and Rental JAM IIII LLC (TX) - Real Estate Property and Rental
Online Mailing Solutions LLC (TX)- Software Company
Tahoe Tom NV LLC (NV)- Real Estate Property/Development Lake Real Estate LLC (NV)- Real Estate Property and Rental South Shore Ventures LLC (NV)- Storage Rental
Stateline Holdings (NV)- Various business interests
Stateline Investment LLC (NV)- Various business interests All of the above entities have articles of incorporation, articles or organization, and operating agreements all in good standing. Details available upon request.

536
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Section 4. Business Plan and Implementation Schedule – New Flight Deck Our goal is to revive/enhance a community landmark and continue to offer a full-service dining experience in a welcoming and casual environment. Our vision includes a complete remodel of the dining room and vestibule.

This includes an extension of the existing bar, all new interior/exterior furnishings, and installation of state-of-theart indoor golf simulators. Golf simulators will provide a new level of entertainment for patrons and offer an avenue for growth and sales for the restaurant. With a full selection of virtual golf courses, and additional game modes of play, simulators will provide entertainment for casual and experienced players alike.

Simulators will be made available to all restaurant/bar customers as well as provide a venue for online golf simulator tournaments/competitions and provide the ability for the formation of an indoor golf league. On-site club rentals will be made available so that patrons traveling through the airport will have the ability to utilize the facilities. Providing a golf experience that is available year-round will allow players to develop their game or socialize with friends while staying warm in the winter and enjoying food and refreshments from the restaurant and bar. During summer months the simulators provide an additional and affordable alternative to traditional golf making the game more approachable and accessible.

Planning is well under way. Drawings and a full virtual rendering of the concept are available below for review. Contractors have been commissioned and are prepared to begin the project within a reasonable time of approval.

The estimated cost of the interior development is $275,000. Supporting documentation is included.

537
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Section 4. Continued
Screen Captures
Rendering
Concept: Tahoe Airport Bar and Grill
“Flight Deck”

538
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Section 4. Continued
Click Here For Flight Deck Concept Virtual Tour
First click “3D” button in center of screen
Then use the menu located in the upper right of your screen to navigate virtual environment.

Section 4. Continued

539
City of South Lake Tahoe
2024-2029 AIRPORT SUITE 105 LEASE | RFP# 2024-01-24
Golf Simulator Model Details

540

DURABUILD GENERAL

CONTRACTOR
Chris Duran
Business Number Business Number LIC # 779259 Class
A,B,C-16-C-36 GENERAL

ENGINEERING ,GENERAL

CONTRACTOR,FIRE PROTECTION,

PLUMBIN
PO BOX 1053 Temecula, CA 92590
9518552077
[email protected]

ESTIMATE
EST0025
DATE
Mar 11, 2024
TOTAL
USD $275,000
TO
Wes Pearce
9498136489
[email protected]

DESCRIPTION RATE QTY AMOUNT
This is a Rough Budgetary number for remodel of formerly flight Deck Bar & Grill in South Lake Tahoe Airport Terminal/ City Hall (1901 Lisa Maloff way) this project entails updating the decor, replacing flooring, painting, updating light fixtures, and making minor layout changes to enhance the overall ambiance and functionality of the space as shown on Designers VR rendering. All work done per approved plan and acceptance by the owner and the awarding authority. Ensure all work is completed in accordance with local building codes and regulations.

This bid includes installation of two “Full-Swing” golf simulators and accessories and furniture.

Square footage approximately 2856 Restaurant space, &. 923 Sq ft of Balcony.
$0.00 1 $0.00
Rough Budget Number $275,000.00 1 $275,000.00
TOTAL USD $275,000.00

541
NEXT
Revitalizing
Lake Tahoe
Airport
Restaurant
1 Presentation by Flight Deck Golf & Grill
542
NEXT
Overview
2 We are dedicated to revitalizing the
Lake Tahoe Airport restaurant as per
the outlined request in RFP# 2024-
01-24.

RFP Response Purpose of Proposal Commitment
Our mission is to bring a modern
dining experience and innovative
entertainment to the airport,
fostering a long-term partnership
with the local community.

We aim to implement a
comprehensive revitalization project
to elevate the dining experience at
Lake Tahoe Airport, reflecting our
dedication to this opportunity.
543
NEXT
Business Plan: New
Flight Deck Concept
3 Our vision includes a comprehensive
remodel, extension of the bar,
installation of golf simulators, and
creation of a welcoming environment
for patrons.

Reviving Community Landmark Golf Simulators Integration Offering an enhanced entertainment
experience, the golf simulators will
cater to both seasoned players and
beginners, fostering year-round
engagement and growth
opportunities.
544
NEXT
Business Plan:

Simulator Details
4 The simulators themselves represent
the cutting edge of technology with
real measurements of your club &
ball data at impact from the
overhead ION3 Camera. Ball speed,
launch angle and direction are
measured in real-time multiple times
The Sport Simulator gives you real
ball-flight that you can trust.

Full Swing Simulator Technology Simulator Modes and Capabilities Offering a wide range of gameplay
well beyond golf. Patrons can enjoy
soccer, football, lacrosse, baseball,
hockey, and other custom games. Top
of the line projectors and lighting
ensures the best user experience
available.
545
NEXT
Business Plan: Food
And Beverage
5 We are partnering with US Foods,
one of the largest suppliers and
distributors in the country. Through
this partnership we are completely
redesigning the menu to offer brand
new selections to guests.

Suppliers and Partnerships Beverage Service
We will offer a full selection of beer,
wine and distilled spirits along side
our newly updated menu. We are
requesting a type 47 license from the
ABC
546
NEXT
Implementation
Schedule and Cost
Estimate
6 Advanced stage of planning with
virtual renditions available,
contractors ready for execution, and
estimated interior development costs
elucidated.

Planning Progress Flight Deck Concept Cost Estimate
Envisioning a vibrant dining
atmosphere with cutting-edge
amenities at the core, aligning with
our commitment to excellence in the
revitalization project.

Projected investment of $869,500 for
interior development, ensuring the
realization of a high-quality dining
and entertainment space at Lake
Tahoe Airport.
547
NEXT
Financial Projections
7 Area Category Item EST Cost
Kitchen Asset Materials Kitchen & Bar $75,000.00
Entertainment Asset Sim Units $130,000.00
Entertainment Start-up Expense Clubs Full Sets $3,000.00 Construction Asset Build Out $307,000.00
Bar Asset Point of Sale System $33,000.00
Bar Start-up Expense Liquor Beer start-up inventory $50,000.00 Bar Start-up Expense Internet $1,500.00
Entertainment Start-up Expense AV/Audio/Alarm $25,000.00 Clerical Start-up Expense Waivers/Attorney’s Fees $20,000.00 Clerical Start-up Expense Design $20,000.00
Bar Start-up Expense Liquor License $150,000.00
Clerical Start-up Expense Insurance $20,000.00
Clerical Start-up Expense Marketing $15,000.00
Kitchen Start-up Expense Food Start-up Inventory $20,000.00 Total $869,500.00
548
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:25
Agenda Item: Extension to Agreement with Axon for Body Worn Camera and In Car Video Systems Executive Summary: This resolution authorizes a five year contract extension with Axon for Body Worn Camera, in Car Camera, unlimited data storage, enhanced software support, licenses, and no questions warranty. This five year contract would terminate our current five year contract early to benefit from 2024 pricing rather than renew later with an expected price increase of 8-10% expected by Axon in 2025. This early termination provides credit for the remainder of the 2020-2025 contract applied against the cost of this 2024-2029 contract. Cost for this contract renewal would total $980,976.45, payable over five years of the contract, interest free payable as follows: Year One: $197,032.76 Year Two: $195,985.92 Year Three: $195,985.92 Year Four: $195,985.92 Year Five: $195,985.93 Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Mayor to execute a five year contract extension with Axon for Body Worn Camera - In Car Video systems with unlimited data storage, enhanced support software, licenses, and a no questions warranty for $980,976.45, payable over five years of the contract, interest free, and appropriating $195,986 from General Fund Undesignated Excess Reserves into FY 2024/2025 budget for the first annual payment.

Responsible Staff Member: Jeff Roberson, Lieutenant
Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report Axon Agreement.docx
02-Resolution - Axon Purchase 2024-2029.docx
03-Axon Extension Quote (Exh. A to Reso).pdf
549
Council Agenda Report September 10, 2024 Page 1 of 5
City of South Lake Tahoe
Report to
City Council
Meeting Date: September 10, 2024
Title: Axon Agreement for Body Worn Camera and In Car Video Systems Location: Citywide
Responsible Staff Member: Jeff Roberson, Police Lieutenant Background: In 2019, the City Council asked the Police Department to develop a report on Body Worn Cameras (BWC). The request was based on policing transparency, accountability, investigative assistance, prosecutorial benefit, and increasing officer safety. The follow up report on BWCs in 2020 discussed several manufacturers’ product offering, warranty models, and integrations of software. In July of 2020, the City Council authorized the purchase of the Axon system.

This purchased system included not only Body Worn Cameras and In Car Video (ICV) cameras but a digital storage solution for the voluminous video generated by the BWCs and ICVs.

Because this system was new to the PD, the organization was not in a position to forecast the required digital storage and has since exceeded that original contract allocation.

Physically this program consists of two named camera systems. However, the majority of this program (and its cost) were comprised of various software systems and storage that are an integral part of the Axon program. Additional components of the Axon system included Axon Capture; an evidence photo application installed on all SLTPD cell phone, this app transmits evidence photos directly into our digital evidence storage; Evidence.com, a digital evidence portal that stores and catalogs all digital evidence such as BWC, ICV, photos and outside sourced videos. Within Evidence.com is an included component of Redaction software that allows release of video compliant with appropriate Government and Penal Codes to meet Public Record Request demands.

Crucial but unseen components include the docking stations for charging and downloading BWC video as well as the mobile electronic components in each patrol car that support the ICVs. This original contract came with equipment ‘refreshes’ to assure we had the most up-to-date equipment. Additionally, a no questions asked warranty has been in place since the implementation of Axon BWC and Fleet cameras.

Issue and Discussion: Since the initial 2020 purchase, the Axon BWC and In-Car Video systems have been integrated into the daily work of the police department. Each call for service or contact is classified and automatically attaches to any applicable video that has been uploaded for that call. The South Lake Tahoe Police Department and its officers look to the Body Worn 550
Council Agenda Report September 10, 2024 Page 2 of 5
Cameras and In-car video as valuable partners providing transparency and perspective to their public interactions and criminal investigations.

Allegations of officer misconduct are taken seriously and investigated. Since implementation of the BWC and ICV’s resolution of these complaints has come more quickly, and the vast majority have been unfounded.

BWC and Fleet video have been great supplements to prosecution of criminal cases.

Axon’s Evidence.com portal allows SLTPD to share requested evidentiary video with the prosecutor’s office. This sharing through Evidence.com is far less labor intensive than the prior process of copying digital evidence to a DVD or thumb drive and then providing that physical recording, sometime multiple times. DA requests for evidence represent a significant portion of the workload for SLTPD Evidence Techs; Evidence.com has given that time back to our evidence techs allowing them more time to assist with investigations.

The SLTPD just entered the Fifth year of its 2020-2025 contract with Axon for these services. SLTPD’s current Axon contract ends August of 2025 requiring the contract renewal, or selection of a new product, within Fiscal Year 2024-2025. SLTPD is looking to capitalize on 2024 Axon pricing by making this purchase at the beginning of FY 2024-2025 in conjunction with the end of Axon’s sales year: a combined window from October 1 through the end of December 2024.

The attached 2024-2029 contract has an anticipated start date of December 15, 2024.

Axon expects 2025 to see a product price increase between 8%-10%. By closing our current contract early, we would benefit from a minimal rebate of $27,784.34 for the last year of the 2020-2025 Axon contract.

The 2020-2025 contract still has an equipment refresh that will be provided by Axon. In this refresh, Axon, at no charge, will start this contract renewal by replacing our current Body3 BWC cameras with Axon Body4 BWC cameras. [The Body4 BWC is the latest version of this camera and provides enhanced video capture capabilities, longer battery life, and officer alert through Axon Respond].

The Police Department is asking the City Council to authorize the Mayor to execute the contract with Axon for $980,976.45. This increased cost over the prior contract includes price increases from Axon, an upgrade to unlimited data storage, and additions to the software package to enhance investigations and increase productivity and efficiency.

This agreement is for five years starting December 15, 2024, and ending in December 2029. Axon has broken this purchase up into interest free annual payments as follows:

Year One: $197,032.76
Year Two: $195,985.92
Year Three: $195,985.92
Year Four: $195,985.92
Year Five: $195,985.93
551
Council Agenda Report September 10, 2024 Page 3 of 5
This purchase includes hardware and software:

Hardware
44 - Body Worn Camera 4 bundles
This includes the BWC, the user license, unlimited video storage, hardware refresh, and a no questions asked warranty.
28 – Fleet 3 In-Car Video cameras
These include the front facing camera, the rear seat camera, the electronics package, included automated license plate reader lens integration and software, patrol car installation, unlimited video storage, and no questions warranty.
3 – Fleet 3 In – Car Video Camera Renewal and Cradlepoints The PD purchased three Fleet 3 ICVs and have yet to deploy them as the patrol car build out process still suffers an industry slowdown. This renewal would bring all our current contracts into alignment and provide the electronics still outstanding to complete these three, yet to be built, patrol cars.
44 – Signal Sidearm activation units
These units physically attach to an officer’s holster and activate the BWC when the firearm is drawn without having to consciously remember to activate the BWC in a critical situation. This offers our agency an enhanced likelihood that what could be a critical incident is time stamped and recorded. The activation of a sidearm unit causes BWCs on other officers in proximity to start recording. A sidearm activation also alerts dispatch of the GPS location where that officer has drawn his firearm through Respond+. 6 – BWC docking bays for charging and video upload
Software
44 – Evidence.com auto tagging licenses
This is a software integration that labels camera activations with a specific incident number generated by our Computer Aided Dispatch system. This saves a great deal of time for officers having to categorize each video taken during the entirety of a shift and assure that it’s stored with the correct case number.
44 – Axon Respond+
Enables dispatch and command staff to view BWC camera location data with alerts and notifications. This software will also provide the ability to compile situational information or tactical details in the moment. In critical situations, video can be livestreamed from cameras to the command center. Respond+ prioritizes data offload from the scene to allow video download and access immediately without returning to the station to download or view. 44 – Evidence.com Redaction Assistant Licenses
552
Council Agenda Report September 10, 2024 Page 4 of 5
This Redaction Assistant is an AI assisted redaction assist for the analysts that will be tasked with video redaction for legally obligated video releases.

Currently IT staff, the City Attorney’s Office, the City Clerk, and the Police Department can be involved in the redaction process. This process is cumbersome and time consuming using current software. Redaction Assistant is included in this purchase for the purpose of efficiency in the redaction process.
44 – Community Request Licenses
Community Request is a portal that allows for the contribution of evidence after having been requested from the community. The link to this portal can be shared via social media allowing a community member to access the portal and upload what they believe to be evidence after an incident. This is a simplified process in tracking down and retrieving digital evidence. After the loss of other investigative tools, Community Request is included in this purchase for investigative efficiency.
44 - Third Party Unlimited Storage Licenses
In the process in complying with Department policy on camera activation, the quantity of video uploaded by our officers during contacts and incidents has exceeded the limits of the 2020-2025 contract by nearly double. Additionally, the detective division has been seeking a user-friendly storage solution for the data obtained and retained as evidence spanning crimes from murder to online harassment. This storage option comes packaged with Axon Investigate. Axon Investigate allows the viewing of video from the myriad of different companies using proprietary software to store surveillance video.

This software bundle allows these proprietary videos from sources such as convenience stores, home surveillance systems, Ring cameras, and cell phone videos to be viewed, enhanced, cataloged, and stored by one software package in an environment already familiar to officers. This package is requested as the solution to our digital storage and retrieval issues, eliminate software redundancy, and improve investigative efficiency.

This purchase includes an additional equipment ‘refresh’, which means all BWC and ICV cameras will be replaced with upgraded models during the contract at no additional cost.

Sole Source justification:

Axon BWC/ICV and the support systems have been integrated into the daily operations of the police department. While the BWC represents a single component of the system, it is integrated into the larger system that includes BWC activation by Taser deployment, In-Car Video activation, holster activation, light bar activation, and proximity activation. This translates to a BWC camera being activated during the most critical times in an officer’s shift while allowing the officer to focus on the incident.

Some of the components that initially justified Axon as a sole source vendor have been imitated by competitors. While these competitors have replicated holster activation and light bar activation, no competitor has proximity activation or BWC activation with Taser deployment, a basis for sole source purchase.
553
Council Agenda Report September 10, 2024 Page 5 of 5
The digital evidence storage, the ease the evidence portal is navigated, and the integration into the daily working of the police department reinforce standardization as another justification for this sole source purchase.

Financial Implications: The Police Department is asking the City Council to authorize the Mayor to renew the contract with Axon for $980,976.45. This agreement is for five years starting December 15, 2024, and ending in December 2029. Axon has broken this purchase up into interest free annual payments as follows:

Year One: $197,032.76
Year Two: $195,985.92
Year Three: $195,985.92
Year Four: $195,985.92
Year Five: $195,985.93
This price includes credit for the last eight months of the 2020-2025 contract. If this contract is approved, the prior contract will be terminated early. The year one payment will not be made until on or after October 1, 2024 (FY 24-25).

Environmental Considerations: This program will have no impact on the environment.

Policy Implications: Core Values of the City of South Lake Tahoe include Accountability, Honesty, and Efficiency. The adoption and continuation of the Axon Body Worn and In-Car Camera systems reinforces these values to and for the community.

This purchase supports Strategic Priority Five, 5.1 Public Safety, Action Item 1: Ensure Police, Fire, and Snow Removal Operations receive adequate funding to provide exceptional service to our community.
554
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
Axon 5-year Contract Renewal for
Body Worn Camera – In Car Video system

BACKGROUND
A. The City of South Lake Tahoe and the Police Department believe in transparency and accountability to and for the community of South Lake Tahoe. As such City Council authorized the purchase of Axon Body Worn and In-Car Video camera systems with support licenses and software in 2020.

B. The City of South Lake Tahoe Police Department has found that the implementation of Body Worn Camera and In-Car Video systems have provided the transparency and accountability, assisted in investigations, prosecutions, and increased officer safety as was intended in the original 2020 Axon purchase.

C. The Police Department recommends renewing the contract with Axon for 44 Axon Body Worn Cameras, 28 Axon In-Car cameras, standard and enhanced support software, cloudbased storage, and licenses to support the Police Department with the benefits seen as a result of this initial purchase.

D. Contract Renewal with Axon for the next five years will include early termination of the 2020-2025 contract, benefiting from that credit, and entering into a contract from 2024-2029 starting in December of 2024. The cost, including that credit, for a new five-year term will total $980,976.45. This increased cost over the prior contract includes price increases from Axon, an upgrade unlimited data storage, and additions to the software package to enhance investigations and increase productivity and efficiency.

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 budget and expenditure of up to $980,976.45. Budget for the first payment to be appropriated from the General Fund Undesignated Excess Reserves. Staff request that the first annual payment of $197,033 be loaded into Fiscal Year 24/25 budget and payable from account number 10002110-46110. Future years’ (two through five) payments will be budgeted in each of the four subsequent years’ operating budgets as follows:

Year Two (FY 25/26): $195,985.92
Year Three (FY 26/27): $195,985.92
Year Four (FY 27/28): $195,985.92
Year Five (FY 28/29): $195,985.93
555
Resolution 2024-XXX September 10, 2024 Page 2 of 2

2. Authorizes and directs the Mayor to execute the contract extension with Axon attached hereto as Exhibit “A” for the purchase of 44 Axon Body Worn Cameras, 28 Axon in-car cameras, listed equipment, Axon’s cloud-based storage, the requested software, and licenses to run the integrated system.

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

Yes:

No:

Absent:

Abstain:
_____________________________ Date:____________
Mayor Cody Bass
Attest:
____________________________
Susan Blankenship
City Clerk
556

Q-596644-45492.842DB
Issued: 07/19/2024
Quote Expiration: 09/20/2024
Estimated Contract Start Date: 12/15/2024
Account Number: 117025
Payment Terms: N30
Delivery Method:

SHIP TO BILL TO SALES REPRESENTATIVE PRIMARY CONTACT
South Lake Tahoe Police Dept. - CA
1352 Johnson Blvd
South Lake Tahoe,
CA
96150-8200
USA
South Lake Tahoe Police Dept. - CA
1352 Johnson Blvd
South Lake Tahoe
CA
96150-8200
USA
Email:

Daniel Birt
Phone:

Email: [email protected]
Fax:

Jeff Roberson
Phone:

Email: [email protected]
Fax:

Quote Summary Discount Summary
Program Length 60 Months Average Savings Per Year $59,607.13 TOTAL COST $960,265.97
ESTIMATED TOTAL W/ TAX $980,976.45 TOTAL SAVINGS $298,035.63 Axon Enterprise, Inc.
17800 N 85th St.

Scottsdale, Arizona 85255
United States
VAT: 86-0741227
Domestic: (800) 978-2737
International: +1.800.978.2737
557

Payment Summary
Date Subtotal Tax Total
Nov 2024 $189,053.21 $4,979.55 $194,032.76
Dec 2024 $3,000.00 $0.00 $3,000.00
Nov 2025 $192,053.19 $3,932.73 $195,985.92
Nov 2026 $192,053.19 $3,932.73 $195,985.92
Nov 2027 $192,053.19 $3,932.73 $195,985.92
Nov 2028 $192,053.19 $3,932.74 $195,985.93
Total $960,265.97 $20,710.48 $980,976.45
558

Quote Unbundled Price: $1,258,301.60
Quote List Price: $1,096,055.60
Quote Subtotal: $960,265.97
Pricing
All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program
100553 TRANSFER CREDIT - SOFTWARE AND SERVICES 1 $1.00 ($27,784.34) ($27,784.34) $0.00 ($27,784.34) 100552 TRANSFER CREDIT - GOODS 1 $1.00 $8,046.91 $8,046.91 $704.09 $8,751.00 Fleet3ARe Fleet 3 Advanced Renewal 3 60 $231.35 $189.57 $189.57 $34,122.60 $657.79 $34,780.39 Fleet3A Fleet 3 Advanced 28 60 $308.53 $254.57 $217.51 $365,416.80 $10,178.35 $375,595.15 B00020 BUNDLE - UNLIMITED 44 60 $165.09 $140.82 $140.82 $371,764.80 $8,789.88 $380,554.68 A la Carte Hardware
F00011 BUNDLE - FLEET CRADLEPOINT R920 SINGLE MODEM
KIT 3 $1,464.00 $1,464.00 $4,392.00 $380.37 $4,772.37
H00001 AB4 Camera Bundle 44 $849.00 $0.00 $0.00 $0.00 $0.00 H00002 AB4 Multi Bay Dock Bundle 6 $1,638.90 $0.00 $0.00 $0.00 $0.00 A la Carte Software
73682 AXON EVIDENCE - AUTO TAGGING LICENSE 44 60 $10.85 $10.85 $28,644.00 $0.00 $28,644.00 73478 AXON EVIDENCE - REDACTION ASSISTANT USER
LICENSE 44 60 $10.85 $10.85 $28,644.00 $0.00 $28,644.00 73618 AXON COMMUNITY REQUEST 44 60 $10.85 $10.85 $28,644.00 $0.00 $28,644.00 100165 AXON EVIDENCE - STORAGE - THIRD PARTY UNLIMITED 44 60 $32.76 $32.76 $86,486.40 $0.00 $86,486.40 A la Carte Services
100610 AXON SIGNAL - INSTALLATION SERVICE - VIRTUAL 1 $1,500.00 $0.00 $0.00 $0.00 $0.00 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT
OVERSIZED 3 $1,700.00 $0.00 $0.00 $0.00 $0.00
100159 AXON FLEET 3 - SERVICES - ALPR API INTEGRATION 1 $3,000.00 $3,000.00 $3,000.00 $0.00 $3,000.00 11642 AXON INVESTIGATE - THIRD PARTY VIDEO SUPPORT 44 60 $10.85 $10.85 $28,644.00 $0.00 $28,644.00 A la Carte Warranties
80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 3 60 $1.36 $1.36 $244.80 $0.00 $244.80 Total $960,265.97 $20,710.48 $980,976.45
Delivery Schedule
Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 44 1 11/15/2024
AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 1 1 11/15/2024
AB4 Camera Bundle 100466 AXON BODY 4 - CABLE - USB-C TO USB-C 49 1 11/15/2024 AB4 Camera Bundle 74028 AXON BODY - MOUNT - WING CLIP RAPIDLOCK 49 1 11/15/2024 AB4 Multi Bay Dock Bundle 100206 AXON BODY 4 - 8 BAY DOCK 6 1 11/15/2024 559

Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date AB4 Multi Bay Dock Bundle 70033 AXON - DOCK WALL MOUNT - BRACKET ASSY 6 1 11/15/2024 AB4 Multi Bay Dock Bundle 71019 AXON BODY - DOCK POWERCORD - NORTH AMERICA 6 1 11/15/2024 BUNDLE - FLEET CRADLEPOINT R920 SINGLE MODEM KIT 100469 AXON FLEET 3 - SIM INSERTION - ATT FIRSTNET 3 1 11/15/2024 BUNDLE - FLEET CRADLEPOINT R920 SINGLE MODEM KIT 100989 AXON FLEET - CRADLEPOINT R920-C7A+5YR NETCLOUD 3 1 11/15/2024 BUNDLE - UNLIMITED 100681 AXON SIGNAL - SIDEARM SENSOR ONLY 44 1 11/15/2024 BUNDLE - UNLIMITED 71044 AXON SIGNAL - BATTERY - CR2430 SINGLE PACK 88 1 11/15/2024 Fleet 3 Advanced 100469 AXON FLEET 3 - SIM INSERTION - ATT FIRSTNET 28 1 11/15/2024 Fleet 3 Advanced 100989 AXON FLEET - CRADLEPOINT R920-C7A+5YR NETCLOUD 28 1 11/15/2024 Fleet 3 Advanced 70112 AXON SIGNAL - SIGNAL UNIT 28 1 11/15/2024 Fleet 3 Advanced 71200 AXON FLEET - AIRGAIN ANT - 5-IN-1 2LTE 2WIFI 1GNSS BL 28 1 11/15/2024 Fleet 3 Advanced 72036 AXON FLEET 3 - STANDARD 2 CAMERA KIT 28 1 11/15/2024 BUNDLE - UNLIMITED 73309 AXON BODY - TAP REFRESH 1 - CAMERA 45 1 05/15/2027 BUNDLE - UNLIMITED 73689 AXON BODY - TAP REFRESH 1 - DOCK MULTI BAY 6 1 05/15/2027 BUNDLE - UNLIMITED 73310 AXON BODY - TAP REFRESH 2 - CAMERA 45 1 11/15/2029 BUNDLE - UNLIMITED 73688 AXON BODY - TAP REFRESH 2 - DOCK MULTI BAY 6 1 11/15/2029 Fleet 3 Advanced 72040 AXON FLEET - TAP REFRESH 1 - 2 CAMERA KIT 28 1 11/15/2029 Fleet 3 Advanced Renewal 72040 AXON FLEET - TAP REFRESH 1 - 2 CAMERA KIT 3 1 11/15/2029 Software
Bundle Item Description QTY Estimated Start Date Estimated End Date BUNDLE - UNLIMITED 73638 AXON STANDARDS - LICENSE 44 12/15/2024 12/14/2029 BUNDLE - UNLIMITED 73680 AXON RESPOND PLUS - LICENSE 44 12/15/2024 12/14/2029 BUNDLE - UNLIMITED 73683 AXON EVIDENCE - STORAGE - 10GB A LA CARTE 440 12/15/2024 12/14/2029 BUNDLE - UNLIMITED 73686 AXON EVIDENCE - STORAGE - UNLIMITED (AXON DEVICE) 44 12/15/2024 12/14/2029 BUNDLE - UNLIMITED 73746 AXON EVIDENCE - ECOM LICENSE - PRO 44 12/15/2024 12/14/2029 Fleet 3 Advanced 80400 AXON EVIDENCE - FLEET VEHICLE LICENSE 28 12/15/2024 12/14/2029 Fleet 3 Advanced 80401 AXON FLEET 3 - ALPR LICENSE - 1 CAMERA 28 12/15/2024 12/14/2029 Fleet 3 Advanced 80402 AXON RESPOND - LICENSE - FLEET 3 28 12/15/2024 12/14/2029 Fleet 3 Advanced 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 56 12/15/2024 12/14/2029 Fleet 3 Advanced Renewal 80400 AXON EVIDENCE - FLEET VEHICLE LICENSE 3 12/15/2024 12/14/2029 Fleet 3 Advanced Renewal 80401 AXON FLEET 3 - ALPR LICENSE - 1 CAMERA 3 12/15/2024 12/14/2029 Fleet 3 Advanced Renewal 80402 AXON RESPOND - LICENSE - FLEET 3 3 12/15/2024 12/14/2029 Fleet 3 Advanced Renewal 80410 AXON EVIDENCE - STORAGE - FLEET 1 CAMERA UNLIMITED 6 12/15/2024 12/14/2029 A la Carte 100165 AXON EVIDENCE - STORAGE - THIRD PARTY UNLIMITED 44 12/15/2024 12/14/2029 A la Carte 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 44 12/15/2024 12/14/2029 A la Carte 73618 AXON COMMUNITY REQUEST 44 12/15/2024 12/14/2029 A la Carte 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 44 12/15/2024 12/14/2029 Services
Bundle Item Description QTY
Fleet 3 Advanced 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT OVERSIZED 28 Fleet 3 Advanced Renewal 73392 AXON FLEET 3 - INSTALLATION - UPGRADE (PER VEHICLE) 3 A la Carte 100159 AXON FLEET 3 - SERVICES - ALPR API INTEGRATION 1 A la Carte 100610 AXON SIGNAL - INSTALLATION SERVICE - VIRTUAL 1 A la Carte 11642 AXON INVESTIGATE - THIRD PARTY VIDEO SUPPORT 44 A la Carte 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT OVERSIZED 3 560

Warranties
Bundle Item Description QTY Estimated Start Date Estimated End Date Fleet 3 Advanced Renewal 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 3 12/15/2024 12/14/2029 A la Carte 80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 3 12/15/2024 12/14/2029 BUNDLE - UNLIMITED 80464 AXON BODY - TAP WARRANTY - CAMERA 44 11/15/2025 12/14/2029 BUNDLE - UNLIMITED 80464 AXON BODY - TAP WARRANTY - CAMERA 1 11/15/2025 12/14/2029 BUNDLE - UNLIMITED 80465 AXON BODY - TAP WARRANTY - MULTI BAY DOCK 6 11/15/2025 12/14/2029 Fleet 3 Advanced 80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 28 11/15/2025 12/14/2029 Fleet 3 Advanced 80495 AXON FLEET 3 - EXT WARRANTY - 2 CAMERA KIT 28 11/15/2025 12/14/2029 561

Shipping Locations
Location Number Street City State Zip Country
1 1352 Johnson Blvd South Lake Tahoe CA 96150-8200 USA
Payment Details
Nov 2024
Invoice Plan Item Description Qty Subtotal Tax Total
Year 1 100165 AXON EVIDENCE - STORAGE - THIRD PARTY UNLIMITED 44 $18,482.59 $0.00 $18,482.59 Year 1 100610 AXON SIGNAL - INSTALLATION SERVICE - VIRTUAL 1 $0.00 $0.00 $0.00 Year 1 11642 AXON INVESTIGATE - THIRD PARTY VIDEO SUPPORT 44 $6,121.37 $0.00 $6,121.37 Year 1 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT OVERSIZED 3 $0.00 $0.00 $0.00 Year 1 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 44 $6,121.37 $0.00 $6,121.37 Year 1 73618 AXON COMMUNITY REQUEST 44 $6,121.37 $0.00 $6,121.37 Year 1 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 44 $6,121.37 $0.00 $6,121.37 Year 1 80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 3 $52.32 $0.00 $52.32 Year 1 B00020 BUNDLE - UNLIMITED 44 $79,448.00 $1,878.43 $81,326.43 Year 1 F00011 BUNDLE - FLEET CRADLEPOINT R920 SINGLE MODEM KIT 3 $938.60 $81.29 $1,019.89 Year 1 Fleet3A Fleet 3 Advanced 28 $78,091.46 $2,175.17 $80,266.63 Year 1 Fleet3ARe Fleet 3 Advanced Renewal 3 $7,292.19 $140.57 $7,432.76 Year 1 H00001 AB4 Camera Bundle 44 $0.00 $0.00 $0.00
Year 1 H00002 AB4 Multi Bay Dock Bundle 6 $0.00 $0.00 $0.00 Invoice Upon Fulfillment 100552 TRANSFER CREDIT - GOODS 1 $8,046.91 $704.09 $8,751.00 Invoice Upon Fulfillment 100553 TRANSFER CREDIT - SOFTWARE AND SERVICES 1 ($27,784.34) $0.00 ($27,784.34) Total $189,053.21 $4,979.55 $194,032.76
Dec 2024
Invoice Plan Item Description Qty Subtotal Tax Total
Invoice Upon Fulfillment 100159 AXON FLEET 3 - SERVICES - ALPR API INTEGRATION 1 $3,000.00 $0.00 $3,000.00 Invoice Upon Fulfillment Fleet3ARe Fleet 3 Advanced Renewal 3 $0.00 $0.00 $0.00 Total $3,000.00 $0.00 $3,000.00
Nov 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year 2 100165 AXON EVIDENCE - STORAGE - THIRD PARTY UNLIMITED 44 $17,000.95 $0.00 $17,000.95 Year 2 100610 AXON SIGNAL - INSTALLATION SERVICE - VIRTUAL 1 $0.00 $0.00 $0.00 Year 2 11642 AXON INVESTIGATE - THIRD PARTY VIDEO SUPPORT 44 $5,630.66 $0.00 $5,630.66 Year 2 73391 AXON FLEET 3 - DEPLOYMENT PER VEHICLE - NOT OVERSIZED 3 $0.00 $0.00 $0.00 Year 2 73478 AXON EVIDENCE - REDACTION ASSISTANT USER LICENSE 44 $5,630.66 $0.00 $5,630.66 Year 2 73618 AXON COMMUNITY REQUEST 44 $5,630.66 $0.00 $5,630.66 Year 2 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 44 $5,630.66 $0.00 $5,630.66 Year 2 80379 AXON SIGNAL - EXT WARRANTY - SIGNAL UNIT 3 $48.12 $0.00 $48.12 Year 2 B00020 BUNDLE - UNLIMITED 44 $73,079.17 $1,727.86 $74,807.03 Year 2 F00011 BUNDLE - FLEET CRADLEPOINT R920 SINGLE MODEM KIT 3 $863.36 $74.77 $938.13 Year 2 Fleet3A Fleet 3 Advanced 28 $71,831.34 $2,000.80 $73,832.14 Year 2 Fleet3ARe Fleet 3 Advanced Renewal 3 $6,707.61 $129.30 $6,836.91 Year 2 H00001 AB4 Camera Bundle 44 $0.00 $0.00 $0.00
562
Page
7 Q-596644-45492.842DB
Nov 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year2 H00002 AB4 Multi Bay Dock Bundle6 $0.00 $0.00 $0.00 Total $192,053.19 $3,932.73 $195,985.92
Nov 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Year3 100165 AXON EVIDENCE- STORAGE- THIRD PARTY UNLIMITED 44 $17,000.95 $0.00 $17,000.95 Year3 100610 AXON SIGNAL- INSTALLATION SERVICE- VIRTUAL1 $0.00 $0.00 $0.00 Year3 11642 AXON INVESTIGATE- THIRD PARTY VIDEO SUPPORT 44 $5,630.66 $0.00 $5,630.66 Year3 73391 AXON FLEET3- DEPLOYMENT PER VEHICLE- NOT OVERSIZED3 $0.00 $0.00 $0.00 Year3 73478 AXON EVIDENCE- REDACTION ASSISTANT USER LICENSE 44 $5,630.66 $0.00 $5,630.66 Year3 73618 AXON COMMUNITY REQUEST 44 $5,630.66 $0.00 $5,630.66 Year3 73682 AXON EVIDENCE- AUTO TAGGING LICENSE 44 $5,630.66 $0.00 $5,630.66 Year3 80379 AXON SIGNAL- EXT WARRANTY- SIGNAL UNIT3 $48.12 $0.00 $48.12 Year3 B00020 BUNDLE- UNLIMITED 44 $73,079.17 $1,727.86 $74,807.03 Year3 F00011 BUNDLE- FLEET CRADLEPOINT R920 SINGLE MODEM KIT3 $863.36 $74.77 $938.13 Year3 Fleet3A Fleet3 Advanced 28 $71,831.34 $2,000.80 $73,832.14 Year3 Fleet3ARe Fleet3 Advanced Renewal3 $6,707.61 $129.30 $6,836.91 Year3 H00001 AB4 Camera Bundle 44 $0.00 $0.00 $0.00
Year3 H00002 AB4 Multi Bay Dock Bundle6 $0.00 $0.00 $0.00 Total $192,053.19 $3,932.73 $195,985.92
Nov 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year4 100165 AXON EVIDENCE- STORAGE- THIRD PARTY UNLIMITED 44 $17,000.95 $0.00 $17,000.95 Year4 100610 AXON SIGNAL- INSTALLATION SERVICE- VIRTUAL1 $0.00 $0.00 $0.00 Year4 11642 AXON INVESTIGATE- THIRD PARTY VIDEO SUPPORT 44 $5,630.66 $0.00 $5,630.66 Year4 73391 AXON FLEET3- DEPLOYMENT PER VEHICLE- NOT OVERSIZED3 $0.00 $0.00 $0.00 Year4 73478 AXON EVIDENCE- REDACTION ASSISTANT USER LICENSE 44 $5,630.66 $0.00 $5,630.66 Year4 73618 AXON COMMUNITY REQUEST 44 $5,630.66 $0.00 $5,630.66 Year4 73682 AXON EVIDENCE- AUTO TAGGING LICENSE 44 $5,630.66 $0.00 $5,630.66 Year4 80379 AXON SIGNAL- EXT WARRANTY- SIGNAL UNIT3 $48.12 $0.00 $48.12 Year4 B00020 BUNDLE- UNLIMITED 44 $73,079.17 $1,727.86 $74,807.03 Year4 F00011 BUNDLE- FLEET CRADLEPOINT R920 SINGLE MODEM KIT3 $863.36 $74.77 $938.13 Year4 Fleet3A Fleet3 Advanced 28 $71,831.34 $2,000.80 $73,832.14 Year4 Fleet3ARe Fleet3 Advanced Renewal3 $6,707.61 $129.30 $6,836.91 Year4 H00001 AB4 Camera Bundle 44 $0.00 $0.00 $0.00
Year4 H00002 AB4 Multi Bay Dock Bundle6 $0.00 $0.00 $0.00 Total $192,053.19 $3,932.73 $195,985.92
Nov 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Year5 100165 AXON EVIDENCE- STORAGE- THIRD PARTY UNLIMITED 44 $17,000.95 $0.00 $17,000.95 Year5 100610 AXON SIGNAL- INSTALLATION SERVICE- VIRTUAL1 $0.00 $0.00 $0.00 Year5 11642 AXON INVESTIGATE- THIRD PARTY VIDEO SUPPORT 44 $5,630.66 $0.00 $5,630.66 Year5 73391 AXON FLEET3- DEPLOYMENT PER VEHICLE- NOT OVERSIZED3 $0.00 $0.00 $0.00 Year5 73478 AXON EVIDENCE- REDACTION ASSISTANT USER LICENSE 44 $5,630.66 $0.00 $5,630.66 Year5 73618 AXON COMMUNITY REQUEST 44 $5,630.66 $0.00 $5,630.66 Year5 73682 AXON EVIDENCE- AUTO TAGGING LICENSE 44 $5,630.66 $0.00 $5,630.66 Year5 80379 AXON SIGNAL- EXT WARRANTY- SIGNAL UNIT3 $48.12 $0.00 $48.12 Year5 B00020 BUNDLE- UNLIMITED 44 $73,079.17 $1,727.87 $74,807.04 563

Nov 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Year 5 F00011 BUNDLE - FLEET CRADLEPOINT R920 SINGLE MODEM KIT 3 $863.36 $74.77 $938.13 Year 5 Fleet3A Fleet 3 Advanced 28 $71,831.34 $2,000.78 $73,832.12 Year 5 Fleet3ARe Fleet 3 Advanced Renewal 3 $6,707.61 $129.32 $6,836.93 Year 5 H00001 AB4 Camera Bundle 44 $0.00 $0.00 $0.00
Year 5 H00002 AB4 Multi Bay Dock Bundle 6 $0.00 $0.00 $0.00 Total $192,053.19 $3,932.74 $195,985.93
564

Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.

Standard Terms and Conditions
Axon Enterprise Inc. Sales Terms and Conditions
Axon Master Services and Purchasing Agreement:

This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at https://www.axon.com/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below.

ACEIP:

The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.

Acceptance of Terms:

Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote. 565

Exceptions to Standard Terms and Conditions
Agency has existing contract(s) originated via Quote(s):

Q-319546, Q-354956, Q-394972, Q-428493, Q-481354, Q-494102, Q-595512 Agency is terminating those contracts effective 12/15/2024 Any changes in this date will result in modification of the program value which may result in additional fees or credits due to or from Axon.

The parties agree that Axon is applying a Net Transfer Credit of -$19,737.43 Any credits contained in this quote are contingent upon payment in full of the following amounts:

Contingent on paying invoice INV-308658 - 7/15/2024 - $31,763.37. Contingent on paying pending invoices Q-394972 - 8/1/2024 - $4,369.70; Q-428493 - 8/1/2024 - $468.00; Q-595512 - 8/1/2024 - $8,299.49
100% discounted body-worn camera, docking station, and fleet camera kit hardware contained in this quote reflects a TAP replacement for hardware purchased under existing contract #00029351. All TAP obligations from this contract will be considered fulfilled upon execution of this quote. \s1\ \d1\
Signature Date Signed
7/19/2024
566

City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 10,
2024
Agenda Item #:26
Agenda Item: Agenda Planning Calendar
Executive Summary: The attached Agenda Planning Calendar outlines a preliminary schedule for future City Council meeting agenda items.

Requested Action / Suggested Motions: Identify, with consent of at least two Council members, any desired future agenda items, and/or modify the Agenda Planning Calendar as desired.

Responsible Staff Member: Joe Irvin, City Manager and Susan Blankenship, City Clerk Attachments:

APC - 09 05 2024.pdf
568
2024 Agenda Planning Calendar (Updated 09 05 2024)
Agenda Item Agenda Section
Sept. 24, 5:30 p.m City Attny Award Third Party Administrator Contract for Workers Comp Consent

STJPPFA
MOU with CTC NB
City Clerk City Council Compensation Ordinance (First Reading) NB Council Member Appiontment/Oath/Pro-Tem Selection/Assignments List NB City Council Boards & Commissions Appointments to Vacancies NB City Manager Comprehensive Energy Services Contract NB
Dev Services TEFRA Notice and Resolution - Sugar Pine Village Phase 1B NB Finance Quarterly Budget and Financial Status Report as of June 2024 Consent Investment Portfolio Report as of June 2024 Consent
Parks & Rec Award of Skate Park Renovation Contract NB
Police City Allocated Position Amendment Consent
Public Works Johnson Blvd. Complete Street Planning Grant Application Consent Award of PSA Pavement Design Services Consent
Amendment to CDM Smith Agreement for Pioneer Trail Phase II Consent TRPA and Rec Facilities JPA Funding for the Bijou Park Connector Consent Department
569
2024 Agenda Planning Calendar (Updated 09 05 2024)
Award of Bellamy Parking Garage Phase 2 Consent
Award of PSA for Dennis Machida Greenway Consent
Vision Zero Resolution Consent
Oct. 15, tbd
Oct. 22, 5:30 p.m. City Clerk City Council Compensation Ordinance (Second Reading) Consent Dev Services Emp Housing Outreach Update & Emp Housing Signage Ord (First Readin NB TAU Discussion NB
Finance GAAN Limit Consent
Energy Services Contract Financing UB
Fiscal Year 2023-2024 Budgeted Funds Re-appropriation Consent HR Approval of City Salary Table Consent
Nov. 5, 9 a.m. Various City Council Commissions and Boards Annual Reports Consent City Clerk/CM 2025 City Council Meeting Schedule Consent Dev. Services Radon - Jeff Minor Presentation
City/CTC land exchange agreement Consent
Emp Housing Outreach Update & Emp Housing Signage Ord (Second ReaConsent BOS/City Council Special Joint Meeting
570
2024 Agenda Planning Calendar (Updated 09 05 2024)
Quarterly Housing Report Consent
Inclusionary Housing In-Lieu Fee Update Consent
Finance TID Annual Report NB
Public Works Award of Tahoe Valley Greenbelt Phase II Consent Award Upper Bijou Park Creek Contract Consent
Speed Limit Adoption for Local Roads and Designation of Safety Corridors NB Residential Parking Permit for Lakeside Park Assoc. NB
Nov. 19, 5:30 p.m. Finance Annual ROPS approval STRSA Consent STRSA
Pub Works STR Rate Adjustment PH
Dec. 10, 5:30 p.m. City Clerk Certification of Election NB Outgoing Councilmember Recognition Recognition
Oaths of Office Oath
City Council Re-Organization NB
Finance Quarterly Budget and Financial Status Report as of September 2024 Consent Investment Portfolio Report as of September 2024 Consent Unscheduled/Pending
571
2024 Agenda Planning Calendar (Updated 09 05 2024)
City Clerk Records Management Policy (Updated) 1/2025
City Manager Barton Community Health Needs and Harm Reduction Update Organics Diversion Program
Tax Sharing Resolution (AB 8) Clean-Up Annexation
EV Charging Parking Ordinance
Establishing an EV Charging Rate for the City's Public EV Chargers Community Choice Aggregation Feasability Analysis
Dev Services Res. Area Plan to Accommodate SB9 and Remove Tourist Accomodation Workbench Contract Award
Disparate Impact Analysis Findings about Local Preference Ordinance Discussion: Second Home Cap/Permit Options
Building Code Appendix AW adoption-3D printed structures Finance Disolution STJPPFA
Parks & Rec Events and Facitilies Naming Rights Discussion Police 2024 Update to Parking Fees in the Bellamy Parking Garage Public Works Award High Priority Pipe Replacement Project 572
2024 Agenda Planning Calendar (Updated 09 05 2024)
Award James-Eloise Drainage Upgrade
Award of Pioneer Safety HSIP Project
Award of PD Roof Replacement
TTD US 50 Plans Presentation
Award Pioneer Trail Phase II Project
Award Lakeview and Ski Run Electrical Upgrades
Harrison Ave/Stateline Transit Station Parking Enforcement 573