Agenda packet, first session — South Lake Tahoe City Council, October 22, 2024 (part 2 of 3)

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 of the 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 210
AIRPORT SUITE LEASE 105

Page 4 of 29 ends

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 activitiesspecified 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 similar types of price reductions.
211
AIRPORT SUITE LEASE 105

Page 5 of 29 ends

3. LESSEE shall have at least one employee staffed at its operations at the Airport during the hours set 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.
212
AIRPORT SUITE LEASE 105

Page 6 of 29 ends

11. LESSEE shall not store materials or supplies 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. 213
AIRPORT SUITE LEASE 105

Page 7 of 29 ends

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 electsto 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 214
AIRPORT SUITE LEASE 105

Page 8 of 29 ends

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 repairsto 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 215
AIRPORT SUITE LEASE 105

Page 9 of 29 ends

CITY’s property resulting from such removalshall be repaired orrestored 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 clearfrom any and all liens, claims and demandsfor work performed, materialsfurnished, 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 itssole 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 216
AIRPORT SUITE LEASE 105

Page 10 of 29 ends

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/orreplacement of the grease interceptor during the term of this Agreement shall be the responsibility of LESSEE.

H. Snow Removal. CITY shall provide snow removal forthe 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 less than 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. 217
AIRPORT SUITE LEASE 105

Page 11 of 29 ends

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 hazardous substances, as defined below,shall survive 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", orsimilar designation under any federal, state or local law, regulation or ordinance. 218
AIRPORT SUITE LEASE 105

Page 12 of 29 ends

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 injuriesto 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 acknowledges that 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, or in 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. SiteVisits,Observations, and Testing. CITY and its agents and representativesshall have 219
AIRPORT SUITE LEASE 105

Page 13 of 29 ends

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 of the 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 220
AIRPORT SUITE LEASE 105

Page 14 of 29 ends

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:
221
AIRPORT SUITE LEASE 105

Page 15 of 29 ends

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 222
AIRPORT SUITE LEASE 105

Page 16 of 29 ends

limits of the subcontractor has been so obtained and approved.

10. FEDERAL AVIATION ADMINISTRATION REQUIREMENTS
A. Asthe facility where the Premisesislocated 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
223
AIRPORT SUITE LEASE 105

Page 17 of 29 ends

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 rent shall 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 Premises for the purposes required 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 render the remainder of the Premises uselessfor the 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 other than 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. 224
AIRPORT SUITE LEASE 105

Page 18 of 29 ends

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 under this 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” 225
AIRPORT SUITE LEASE 105

Page 19 of 29 ends

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 as to 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 226
AIRPORT SUITE LEASE 105

Page 20 of 29 ends

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 rent forthe 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. E x c e p t f o r th e i te m s l i s te d i n E x hi bi t E , w hi c h are t o r e m ai n o n t h e P re mis e s , 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.
227
AIRPORT SUITE LEASE 105

Page 21 of 29 ends

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 Agreement shall 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;
228
AIRPORT SUITE LEASE 105

Page 22 of 29 ends

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, et seq.) in connection with this Agreement.
229
AIRPORT SUITE LEASE 105

Page 23 of 29 ends

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.
230
AIRPORT SUITE LEASE 105

Page 24 of 29 ends

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 Cody Bass (Sep 19, 2024 16:04 PDT) By Tom McMurray Tom McMurray (Oct 3, 2024 22:23 PDT) Cody Bass, Mayor Thomas McMurray, CEO
Business License # 331784
APPROVED AS TO FORM: ATTEST:

By Heather Stroud (Sep 20, 2024 13:38 PDT) By Susan Blankenship (Sep 19, 2024 16:13 PDT) 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
231
AIRPORT SUITE LEASE 105
Exhibit A

DESCRIPTION OF PREMISES
232

AIRPORT TERMINAL/CITY HALL
1901 Lisa Maloff Way, SOUTH LAKE TAHOE, CALIFORNIA, 965150 EXHIBIT "A" LOCATION MAP
233
AIRPORT SUITE LEASE 105
Exhibit B

CITY OWNED PERSONAL PROPERTY & RESTAURANT TRADE FIXTURES 234
Existing Lake Tahoe Airport Trade Fixutres
Quantity Item Manufacturer Material Type Description Location Minimum Service
Schedule
Date Installed/
Purchased/
Leased
1 builtIn 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 next to 6
burner oven kitchen
quaterly remove grill and
degrease all surfaces
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
eastwall 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
eastwall 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
eastwall 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
coolerstorage &
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 &
fryers in
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
235
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. 236
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
237
AIRPORT SUITE LEASE 105
238
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
239
AIRPORT SUITE LEASE 105

8.22.2024
City of SoulhLake Tahoe
Attn: Ai porlManager John Dickinson
1901 Lisa Maloff Rd.

SouthLake Ta'hoe Ca 96150
RE Project Description
1909'LisaMaloffRd.

South LakeTahoe, Ca 96150
To WhomII May Concern,
Our fi1m:Monarch Architeciurehas beenhiredlo providelenant improvemenl - aichitecimedesign servroeslo Tom McMurray for tile vacanl restaurant located wilhin the City of South lake Tahoe Airport.

As we are working throughtheprocess of the sdhematicdesig1p1hase. The folllowingimp1ovemenls are being p1oposed

11. Rebuilding the existingbar:including reconfiguringlhe bar equipment

2. Adding a11additional bar to lhe rightsideof the restaurant.

3. Build oul dining roomseating, including banquet seating.

4. Providespace andbuildoul 2 golf simulators.

5. Expand therestaurant footprint into the existingpamphl et roomandadd anadditionall4' intolhe lobby.

6. Createa newenlrancelo the restaurant via the fronl lobby aiea; new enlrancelo inoludehost counter and goldclub storage.

7. Move theexisting walk-infridge closer to theexisting kitchen.

8. The inferior finishesinthe restauranl and bar1o beupdated to fil ow,nersbranding,including flamingandoei'lingtreatments.

9. Existing kitdhenlo remain as closelo what isexistingexcept forimprovementsdiciatedbytile HeaIthDeparlmenl ornecessary formenu items asdeemedapproprialeby owner. 110. Provide necessary wiringfor AV - TV's throughoul 1estaurant.

Thankyouverymuchfor yourreview andplease feel free to callor email me if youneedany further informationorhave anyquestions.
2264 Lake TahoeIB!Vl:I.STIE13
S001thLake Tahoe,
CA.96150
530.542.2919
l;1ookemartone@gmai .com
IBes
Brooke Martone
IIRCI-IITECT 11 LEEDAP
LIi
0:
240

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
09/19/2024
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

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

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

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

PRODUCER CONTACT Robert Granger NAME:

Granger Independent Insurance Services PHONE (949) 424-6423 (A/C, No, Ext): FAX (A/C, No): (949) 424-6423
20902 Brookhurst St. Suite 208 E-MAIL [email protected] ADDRESS:

Suite 208 INSURER(S) AFFORDING COVERAGE NAIC #
Huntington Beach CA 92646 INSURER A : DIAMOND STATE INS CO 42048 INSURED INSURER B :

Flight Deck Grill and Golf, LLC INSURER C :
1901 Airport Road INSURER D :

Ste 105 INSURER E :

South Lake Tahoe aliforn96150 INSURER F :

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

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

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR

LTR TYPE OF INSURANCE ADDL

INSD SUBRWVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) LIMITS A

COMMERCIAL GENERAL LIABILITY
X VEP0344545 09/19/2024 03/19/2025
EACH OCCURRENCE $ 1,000,000
CLAIMS-MADE OCCUR DAMAGE TO RENTED PREMISES (Ea occurrence) $ 50,000 MED EXP (Any one person) $ 5000
PERSONAL & ADV INJURY $ NA
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 1,000,000

POLICY PRO- JECT LOC
OTHER:

PRODUCTS - COMP/OP AGG $ NA
$
AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea accident) $ ANY AUTO BODILY INJURY (Per person) $
OWNED

AUTOS ONLY
HIRED

AUTOS ONLY

SCHEDULED
AUTOS

NON-OWNED

AUTOS ONLY
BODILY INJURY (Per accident) $
PROPERTY DAMAGE (Per accident) $
$

UMBRELLA LIAB

EXCESS LIAB
OCCUR

CLAIMS-MADE
EACH OCCURRENCE $
AGGREGATE $
DED RETENTION $ $

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
If yes, describe under DESCRIPTION OF OPERATIONS below
N / A
PER

STATUTE OTH- ER
E.L. EACH ACCIDENT $
E.L. DISEASE - EA EMPLOYEE $
E.L. DISEASE - POLICY LIMIT $
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN

CITY OF SOUTH LAKE TAHOE
ACCORDANCE WITH THE POLICY PROVISIONS.
1052 TATA LANE AUTHORIZED REPRESENTATIVE
SOUTH LAKE TAHOE CA 96150
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD 241 Created: 2024-09-19
By:

Status:

Transaction ID:

Michelle Davis ([email protected])
Signed
CBJCHBCAABAAwcruGxoqzO9FSUhs1t4dujnHsugo6864
C-238-2024 Flight Deck Lease
Final Audit Report 2024-10-04
"C-238-2024 Flight Deck Lease" History
Document created by Michelle Davis ([email protected]) 2024-09-19 - 11:02:30 PM GMT
Document emailed to Susan Blankenship ([email protected]) for signature 2024-09-19 - 11:02:37 PM GMT
Document emailed to Heather Stroud ([email protected]) for signature 2024-09-19 - 11:02:38 PM GMT
Document emailed to [email protected] for signature
2024-09-19 - 11:02:38 PM GMT
Document emailed to Tom McMurray ([email protected]) for signature 2024-09-19 - 11:02:38 PM GMT
Email viewed by [email protected]
2024-09-19 - 11:03:28 PM GMT
Document signing delegated to Cody Bass ([email protected]) by [email protected] 2024-09-19 - 11:04:39 PM GMT
Document e-signed by Cody Bass ([email protected])
Signature Date: 2024-09-19 - 11:04:48 PM GMT - Time Source: server Email viewed by Susan Blankenship ([email protected]) 2024-09-19 - 11:13:31 PM GMT
Document e-signed by Susan Blankenship ([email protected]) Signature Date: 2024-09-19 - 11:13:42 PM GMT - Time Source: server Email viewed by Tom McMurray ([email protected]) 2024-09-19 - 11:15:06 PM GMT
242
Email viewed by Heather Stroud ([email protected])
2024-09-19 - 11:23:47 PM GMT
Document e-signed by Heather Stroud ([email protected]) Signature Date: 2024-09-20 - 8:38:42 PM GMT - Time Source: server Email viewed by Tom McMurray ([email protected]) 2024-09-25 - 11:34:55 PM GMT
Email viewed by Tom McMurray ([email protected]) 2024-09-29 - 4:29:22 PM GMT
Document e-signed by Tom McMurray ([email protected]) Signature Date: 2024-10-04 - 5:23:05 AM GMT - Time Source: server Agreement completed.
2024-10-04 - 5:23:05 AM GMT
243
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: October 22, 2024
Agenda Item #:11
Agenda Item: Fiscal Year 2023-2024 Budgeted Funds Re-Appropriation Executive Summary: The City of South Lake Tahoe Budget Policy provides for the carryover of operating program appropriations if funds are unspent and purchases are not fully received, or services could not be fully completed during the fiscal year. The annual practice of bringing forward this reappropriation request is intended to keep the City Council and general public fully informed.

Requested Action / Suggested Motions: Pass a Motion to approve re-appropriation of Fiscal Year 2023-2024 budget for purchases and services with unfinished scope of work to Fiscal Year 2024-2025.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report - Reappropriation of FY24 Budget to FY25.docx 02-Carry Forward to 24-25 tables.pdf
244
Council Agenda Report October 22, 2024 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: October 22, 2024
Title: Fiscal Year 2023-2024 Budgeted Funds Re-Appropriation into Fiscal Year 2024-2025
Location: Citywide
Responsible Staff Members: Olga Tikhomirova, Director of Finance (530)542-7431 Background: The City of South Lake Tahoe budget policy provides for the carryover of operating program appropriations if funds are unspent and purchases are not fully received, or services could not be fully completed during the fiscal year.

Issue and Discussion: This staff report is to advise City Council of funds that need to be re-appropriated. The listed re-appropriated purchases were either not fully received, or services could not be completed by September 30, 2024, and are still needed in the new fiscal year. The annual practice of brining forward this re-appropriation request is intended to keep the City Council and the general public fully informed. It is consistent with the City Council’s adopted budget policies.

Financial Implications: The City of South Lake Tahoe Budget Preparation Policy, adopted by the City Council, provides for the carryover of operating program appropriations:

C. Operating Carryover - Operating program appropriations not spent during the fiscal year will not automatically carry-over into the next fiscal year, and shall lapse at year-end.

These un-spent appropriations shall be subject to re-appropriation into the subsequent fiscal year, except for long-term projects in progress that are carried forward to the following year and reserved for encumbrances.

The current fiscal year budget for 2024-2025 will be amended by a total amount of $5,100,230. This amount is to pay for obligations, including approved grants, that were budgeted and not fully received or could not be completed in the 2023-2024 fiscal year. Since the obligations were not complete, they have not been invoiced and paid. $ 79,716 - General Fund revenue
$ 1,174,658 - General Fund expenses
$ 321,289 - Other Funds revenues
$ 3,524,567 - Other Funds expenses
$ 5,100,230 - Total Re-appropriation
245
Council Agenda Report October 22, 2024 Page 2 of 2
Environmental Considerations: The proposed action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (creation of government funding mechanisms or government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).

Policy Implications: Consistent with the City’s Financial Policy - Budget Preparation. 246
Account Carryforward
Vendor Name Number Amount Explanation PO or Contract
Revenues:

CIRA 100-01220-36288 54,716$ CIRA reimbursements revenue balance true up CERT Grant 100-01952-33209 $ 25,000 Grant Spending and Reimbursement pending 79,716$
Expenses:

Liebert Cassidy Whitmore 100-01210-44012 6,525$ Legal counseling contract C-090-2024 Jackson Lewis 100-01210-44012 $ 4,342 Legal counseling contract C-035-2024 TBD 100-01220-42020 $ 161,055 CIRA reimbursable expenses balance true-up Best Best and Krieger 100-01310-42020 $ 23,610 Community Choice Aggeregation Services C-042-2024 RSG Consulting 100-01310-42020 $ 129,930 Real Estate and Econ. Dev. Services for the Chateau C-194-2024 Sloan Sakai 100-01310-42025 $ 28,180 Legal services for Transit JPA C-139-2024 Daniel Keen 100-01310-42025 17,133$ Performance management consulting services C-124-2024 TBD 100-01320-41136 $ (1,381) Wellness program funds
RGS 100-01320-42020 $ 37,833 Recreation Business plan
HR TDB 100-01320-44050 $ 1,968 Conference attendance travel HR TDB 100-01320-44051 $ 1,800 Conference attendance travel HdL 100-01730-46122 $ 3,500 Finance new software C-158-2023 Omnistruct LLC 100-01840-42020 $ 64,873 IT contract C-220-2023 CentralSquare 100-01840-42030 $ 110,056 IT/Finance contracts for software updgrade PO 12939, 12941 CERT Grant 100-01952-42025 $ 25,000 Grant Spending and Reimbursement pending TBD 100-01967-44039 $ 75,000 CalRecycle grant expenses
RFI 100-02110-42025 $ 27,300 Door lock contract C-105-2024 TBD 100-02110-44050 $ 8,000 CQB/HRT Training travel
Aardvark, Adamsons 100-02110-45004 $ 5,500 Delayed ammo order Piccacle Tact. 100-02120-44060 $ 11,500 CQB/HRT Training (13 members) Lehr 100-02180-42020 $ 9,000 LPR annual contract
Arbitrator 100-02180-42030 $ 4,800 Legacy digital evidence license SLOFIST 100-02180-44050 $ 6,800 Detectives training
Big Tex Trailer 100-02220-44205 $ 12,997 Truck bed PO 13010 ESE Consulting Services 100-03210-42020 $ 100,822 Pavement Design contract to be approved 10/22/24 Black Eagle Consultin 100-03210-42025 $ 80,497 Oncall inspeciton and materials testing services C-135-2024 Amazon 100-03210-46110 $ 5,489 Tool purchase in progress Rudy's, Sierra Valley Electric 100-03310-42025 $ 42,551 Maintenance services TBD 100-03410-46120 $ 19,852 Heavy Duty Welder
B & T Sales 100-03410-46120 $ 26,653 Diesel pump PO 13028 Jeff Turner 100-03710-42020 $15,000 Heavenly Valley Annexation survey C-047-2024 TBD 100-04170-46110 $ 99,797 Interim Parks shop construciton trailer Winters Electric 100-04225-42030 $ 6,686 Lake tahoe Historic Museum electrical work PO 13033 Winters Electric 100-04225-42030 $ 1,990 Bijou Park Restrooms electrical work PO 13034 1,174,658$
FY 2023-2024 General Fund Re-Appropriation
247
Account Carryforward PO or
Vendor Name Number Amount Explanation Contract
Revenues:

US Forest Service Fuels Reduction Program215-02270-33117 321,289$ Grant on reimb basis, approved after budget adopted 321,289$
Expenses:

RSG 250-06024-42020 13,097$ professional services
Pape Group 208-03610-46110 $1,163,453 John Deere graders PO 12919 Altec Industries 210-03010-46110 $179,014 Ford and Altec to ubild the truck PO 12920 PO Loader Corp 210-03010-46110 $962,736 Freighliner to build the trucks PO 12963 Pape Group 210-03010-46130 $10,932 Henke to build the cut off gate foro the grade PO 12904 WATTCO 211-02110-46130 $35,101 K-9 truck build out PO 12744 AXON ENTERPRISES INC 211-02110-46130 $33,719 Fleet PO 12957 LEHR AUTO ELECTRIC 211-02110-46130 $106,340 3 Tahoe upfit PO 12966 Lehr 213-02210-46130 $23,881 New truck to be delivered PO 13014 Champion Chevrolet 213-02210-46130 $71,735 GM to build the truck and delivery PO 13013 US Forest Service Fuels Reduction Program215-02270-42025 $321,289 Grant Reimbursable expenditures Tahoe Art League 217-04504-44032 $3,000 Mural paiting C-207-2024 Multiple 223-02120-44032 $49,531 Cannabis Grant awards - 10% final payments Multiple BAE (REAP) 250-06024-42020 $16,259 consulting services
Design Workshop 270-03710-42020 $72,252 Mid-Town Area Plan consultant C-121-2024 Hauge Brueck 270-03710-42025 $5,000 General Plan consultant C-250-2023 Temp 501-05110-41020 $25,058 Temporary help PO 12734
Dollar Signs & Graphics 501-05120-43025 $13,569 Airport Monument Sign PO 13017 Tieslau Paving and Excavating 501-05130-43025 $2,400 Crack Seal PO 12992 Alpine Smith 501-05130-46110 $3,806 Multihog PO 13016
Walker 520-05320-42030 $15,240 Parking Garage upgrades contracts in progress C-175-2024 ENSIGHT 520-05320-46110 $186,155 PARCS revenue control system at Parking Garage C-137-2024 Blink 520-05320-46110 $68,000 EV Charging Stations PWC C-098-2024 Ample 520-05320-48030 $143,000 Electrical Contract PWC 24-52005320-02 3,524,567$
FY 2023-2024 Other Funds Budgeted Re-Appropriation
248
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: October 22, 2024
Agenda Item #:12
Agenda Item: Amendment No. 1 to Professional Services Agreement for BPR Consulting Group Executive Summary: On November 21, 2023, the City Council authorized a 3-year Professional Services Agreement with BPR Consulting Group. This is an amendment to increase the maximum compensation from $230,000 to $700,000 over the 3-year term, set to expire in November 2026.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Amendment No. 1 to the Professional Services Agreement with BPR Group to increase the not-toexceed amount from $230,000 to $700,000 with a total program budget to be allocated accordingly and proportionally in each of the three annual adopted budgets for the term of the contract.

Responsible Staff Member: Jeremy Harrison, Building Official Reviewed and Approved By: Zach Thomas, Director of Development Services Michelle Davis, Assistant City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - Amendment to BPR Agreement.docx
02-PSA Amendment.docx
03-C-246-2023 PSA with BPR Consulting.pdf
249
Council Agenda Report October 22, 2024 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: October 22, 2024
Title: Amendment to BPR Professional Services Agreement for Inspection, Plan Review, and Permit Technician Services. (3-year contract)
Location: City-wide
Responsible Staff Member: Jeremy Harrison, Building Official Background: The City of South Lake Tahoe Building Division experiences significant variation in workload throughout the year outside of the economically driven ebb and flow of general permit activity. The two main contributing factors are weather and the grading season that extends from roughly May 1st to October 15th. The impact of these factors greatly contributes to an oscillation of permit applications, permit issuances, plan reviews, and building inspections between the winter months and the summer months. The use of professional consulting services allows for consistent service delivery in the areas of building permit application intake and issuance, building plan reviews and building inspections.

A Request for Proposals was released from September 27, 2023, to October 18, 2023. At its November 21, 2023 meeting, the City Council authorized 3-year Professional Services Agreements with BPR Group, TRB and Associates, and 4Leaf Inc with a not-to-exceed cumulative total for all three firms of $230,000.

Issue and Discussion: The City is experiencing a significant amount of large-scale construction activity requiring the increased use of the third-party consultants, especially BPR Group that primarily provides on-call consulting services. For example, the speed of the module installation and construction of the Sugar Pine Village Affordable Housing Project requires a full-time inspector on-site. This enhanced inspection service will be necessary throughout the construction of three remaining phases. Additionally, the overall increased construction activity (city-wide) has placed further demand on plan check and inspection services provided throughout the Department Services Department BPR Group also provided Permit Technician services to manage counter activity as staff employed their efforts in development of new permit management software. It is anticipated that the need will continue as staff continues software development through testing and into implementation.

BPR Group has and continues to provide plan review for large projects such as Sugar Pine Village, Target, the Multi-Generation Recreation and Aquatics Center, Zalanta, and other smaller projects of various uses and building types. Through these reviews, BPR has demonstrated proficiency in code knowledge, South Lake Tahoe local design criteria, and TRPA regulations.
250
Council Agenda Report October 22, 2024 Page 2 of 2
Financial Implications: Based on the increased need of the services provided by BPR Group, staff recommends increasing the not to exceed total contract amount of $230,000 as indicated in the original Professional Services Agreement to $700,000. Increasing the 3-year total contract amount will allow continued service of highly qualified inspectors, and permit technicians. It will also allow the ability to provide continued plan review for all project types and for larger projects that required mid project plan review for deferred submittals, design changes, fixes, and other items that must be reviewed for code compliance. Funding to support the Professional Services Agreements for On-Call Plan Review Services is fully provided by building permit and TRPA application fees. The expenditures budget is being allocated accordingly and proportionally in each of the three annual adopted budgets for the term of the contracts.

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

Policy Implications:

Continued implementation of the California Title 24 Code of Regulation, TRPA Regulations, and City of South Lake Tahoe City Code
251

Page 1 of 2 ends

CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
Amendment #1
This Amendment dated October 22, 2024, modifies the Professional Services Agreement between the City of South Lake Tahoe, a municipal corporation (“City”) and BPR Consulting Group (“Consultant”) entered into on November 29, 2023 (C-246-2023).

Due to increased permitting workload, the Professional Services Agreement is hereby amended to increase the maximum compensation over the three-year term, as described below.

1. Section 3 (Compensation), and is amended to read in their entirety as follows:

Compensation to be paid to Consultant shall be in accordance with the Schedule set forth in Exhibit B which is attached hereto and incorporated herein by reference. In no event shall Consultant's compensation, including travel and outof-pocket expenses, exceed $700,000 without additional written authorization from City. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to City at the time of payment.

Payment is contingent upon compliance with all terms and conditions of this Agreement, as set forth herein. Consultant shall obtain prior written authorization from the City Project Manager for any costs in excess of budgeted amounts for each line item, task, or obligation under the Scope of Services.

2. Exhibit B (Schedule of Charges) is amended to change the not-to-exceed amount from $230,000 to $700,000.

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

CITY OF SOUTH LAKE TAHOE: CONSULTANT:

By___________________________ By ________________________________ Cody Bass, Mayor Bill Rogers, Principal-In-Charge
Date __________________________ Date _________________________ APPROVED AS TO FORM:

By____________________________ Date _________________________ Heather Stroud, City Attorney
ATTEST:
252

Page 2 of 2 ends

By______________________________ Date __________________________ Susan Blankenship, City Clerk
253
C-246-2023

CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of the 21st day of November 2023 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and BPR Group (Consultant”).

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

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

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

AGREEMENT

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

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

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

2. Term/Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue for three (3) years. 254
C-246-2023

3. Compensation. Compensation to be paid to Consultant shall be in accordance with the Schedule set forth in Exhibit B which is attached hereto and incorporated herein by reference. In no event shall Consultant’s compensation, including travel and out-of-pocket expenses, exceed $230,000 without additional written authorization from City. Please note that the not to exceed number is cumulative across three consultant firms.

Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to City at the time of payment.

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

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

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

Termination, revocation, or expiration of this Agreement shall not release either party from liability resulting from an event which occurred prior to such termination, revocation or expiration.
255
C-246-2023

7. Ownership of Documents.

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

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

8. Consultant’s Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant for services provided pursuant to this Agreement.
b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from records shall be available at Consultant’s address indicated for the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to City for inspection at City offices when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City may, by written request by 256
C-246-2023
any of the above-named officers, require that custody of the records be given to City and that the records and documents be maintained at City offices. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

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

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

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

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

Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
a. Will conduct research and arrive at conclusions with respect to his/her rendition of information, advice, recommendation or counsel independent of the control and direction of City or of any City official, other than normal agreement monitoring; and,
257
C-246-2023
b. Possesses no authority with respect to any city decision beyond rendition of information, advice, recommendation or counsel. [FPPC Reg. 18700(a)(2)].

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

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

In the event it is determined that the Consultant is required to pay prevailing wages for the work performed under this Agreement, the Consultant shall pay all penalties and wages as required by law.

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

14. Indemnity. Consultant hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, officers, agents, employees and volunteers from and against any liability for any and all claims, demands, actions, losses, damages and injuries, direct or indirect (including any and all 258
C-246-2023
costs and expenses in connection therein), arising out of this Agreement or caused in any way by Consultant’s negligent performance of this Agreement or its breach of its obligations contained in this Agreement, except for any such claims arising out of the negligence or willful misconduct of the City.

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

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

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

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

15. Insurance Requirements.
a. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies.
i. Workers’ Compensation Coverage. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers’
Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation of all Workers’ Compensation policies must be received by City 259
C-246-2023
at least thirty (30) days prior to such change. Consultant 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 volunteers for losses arising from work
performed by Consultant for City.
ii. Commercial General Liability Coverage. Consultant shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. Coverage must be made on
the standard Occurrence form. Claims-Made forms are not acceptable without prior written consent of City. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of Consultant. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general
aggregate limit shall be at least twice the required
occurrence limit.
iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and nonowned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant or by its employees, or subcontractors. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit per occurrence basis.
260
C-246-2023
b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a AM Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
i. City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional
insured’s under Consultant’s General Liability and Automobile Liability policies with respect to liability arising out of this Agreement and/or work performed by or on behalf of the
Consultant, including materials, parts or equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by City, including any self-insured retention City may have, shall be considered excess insurance only and shall not contribute with it.
iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each,
except with respect to the limits of liability of the insuring Consultant.
iv. The insurer waives all rights of subrogation against City except for Consultant’s Professional Liability and Employers’ Liability policies, its elected or appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. No policies of insurance carried by Consultant shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail.
c. Deductibles and Self-Insured Retentions. The Consultant shall be responsible for all deductibles in all of Consultant’s insurance policies. 261
C-246-2023
The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.
d. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Consultant shall not commence work under this contract until all insurance required under this section has been approved by City as to form, amount and carrier, nor shall Consultant allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.

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

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

If to City: City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Provide a copy to: City Attorney’s Office
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 300
South Lake Tahoe, CA 96150
If to Consultant:

Provide a copy to: BPR Consulting Group
2201 Francisco Drive Suite #140-658
El Dorado Hills, CA 95762

17. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the 262
C-246-2023
subcontractor. Nothing in the Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law.

18. 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.

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

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

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

22. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, disability, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan, or other related programs or guidelines currently in effect or hereinafter enacted. 263
C-246-2023

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

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

24. Anti-Lobbying Certification. Consultant shall submit to City the Anti-Lobbying Certification contained in Exhibit C. Further, Consultant shall require that the language of the certification in Exhibit C be included in all contracts or subcontracts entered into in connection with this Agreement and that all Consultants and contractors shall certify and disclose accordingly. 264
C-246-2023

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

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

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

28. 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.

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

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

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

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

Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
265
C-246-2023
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE:

Cristi Creegan CONSULTANT:

Bill Rodgers
ByCristi Creegan (Nov 29, 2023 10:04 PST) By Bill Rodgers (Nov 29, 2023 12:20 PST) Cristi Creegan, Mayor Bill Rogers, Principal-in-Charge
Date Nov 29, 2023 Date Nov 29, 2023
Business License #012243
APPROVED AS TO FORM:

By Heather Stroud (Nov 29, 2023 10:17 PST)
Heather Stroud, City Attorney
ATTEST:

Date Nov 29, 2023
By Sue Blankenship (Nov 29, 2023 10:10 PST)
Susan Blankenship, City Clerk
Attachments:

Exhibit A – Scope of Services
Date Nov 29, 2023
Exhibit B – Compensation Schedule
Exhibit C - Anti-Lobbying Certification
266
C-246-2023

EXHIBIT A

SCOPE OF SERVICES
267
C
-246-2023 268
C-246-2023
Scope •of Work
The team proposed fo sew:e time (Hy of South lak•e Tahoe ar•e experienced in and dedicated to providi111g exceUent ,customer service to our cllienhl,. Staff possess the approp111ate exp e1rience an,dlexpertiise fo provide the requesbed profession alllfVices andare highly !knowledgeable and ablle to en:;.me proper implementatio·rnof the adopted codes to indudle the 2.022 e,ditlons of the c. ifomia Building, Residentiral, Fire, E!ed:rical, Mecha111icall, Pllumbing. Eneirgy a111dl Green Codes; the S 'iiimming Pool and Hot Tub Codie; the International P1roperty Maintenance Code; National[ Fire Protedion Agernc.y (NPFA.) standard:;.and the City of SoutJ'1 Lake Tahoe amendlmenrhl, TiHe 6 of the Municipal[ Code, and the Tahoe Regiion,al Planning Agency Codie of Ordinances.

From tJhe RFP, we tmdlerstand the City desires, and BPR is able to proviidle the foUowing:

Plan Review Servic;es
• BPW plans examiners will provide FuII" plan review services wlhkh will! i ndude comp!ete strudural and non-strructurail (cros.s-weferernced wirtlh appllicabiledv1ill, trade spedaVty plans for codie reilatedl irtems) plan reviews inclluding defe1red submirttals fo:r,aomplli,rnoe..,irtJh aU applicab!e codes. • BPR's phms examiners will[ provide partiaI segmentnplan rev1iew serv,ioes which willl inclludie review of one spedfied segment of plans induding, but noitmi1ted to: strudural, dvil, fire,ek. • BPR will pmv1idle temporary staffing services suclh as:: building offldals, plan examiners, inspectors, permit technid ans,fire inspectors, etc. on as as-needed basi1sfor the duration of time agreement • Maximum fees for·segmerne pllan rev1iews and temporary staffing se1rvices, in tlhe event tlm.ey are requested, shall! be based rupon a fee mrutualily agreed upon by the City and BPR.

Permiit Teclilniciian Se1rvkes
• BPR's permit technidan(s) wi!Ip erform a variety oftech111icaI support.serv1i oes in support of time issua11oe of pe1rnits for H1e Bui!ding Diiv,isio n and addition all services as r•equested of H1e Dev:elo pment Services Department.
• BPR' pe11mit t.echnki1an(s) will be ava[labile to provide customeir service viia plho ne, emaii, and at the publlic,aounter. Duties will incllude providing preliminary review of plans and spedfications for complete pllan check submittal; reviewing and pmcessing or exprress permirt appllicatfons; i sui111g p ermils, and other rellated duli1es.
• BPR permirHedmician(s) who are as igirned to South, lake Tahoe willl be availablle to work in tile G1ty D•evelopment Servfoes Dl•epartment office and/or work remotelly, dleperndirng on time need. BPR permirl technicia111(s)1
\'ilill receive training in the C1rty's office until tlhey have become adequately profiid:eni. in City processes and the opo1on for remote wo11k i1s agreed to by the Buildling OffidaI and BPR.

Building lnspedorr Senfoes
• BPR's building inspe.dor willl periorm onsiite building insped:ion selfVices induding strudural, plumbing, mechanicaI, and eilectricaI inslP ectio ns related to th,econsoruction or allteration ofr•esid ential and commercial strudu res,.
• BPR' inspector will! approve aooeptal::ile wo11k or indicate i111wri1ting any •aor;reco1ons necessary 1111order to .c,omplly with appllicable .c,odes and 01rdi11a111oes. • BPR's inspector willl always provide exaeptiiona,lcustomer serv,iae and assist builldlera, arclhit.ects, cornrtirndo rs and the publlic i111aclhieving •oomplliraneein a •c.u.stomer focused manne1r. 269
C-246-2023
• BPR wil I prov,idie insped:o r.s who possess the 11ecess.ary am:! C11ly requ"red ICC,aerti1ficatio11s to perfo,m on-sirte i11spedrion serv,iaes.duri11g ,ao11s.orudion.
• BPR inspedors wrn inspect s.orudures to ensure complliiance wirilhl prov1is.io11s of tlhle approv,ed pll,ms, Bui!dingCode, Cirly Municipal Code am:! Tahoe R:egional Planni11g Age11c.yCode of Ordinances. • BPR's bui!ding i11s1Pedor will[ worlk out of the City's Deve!opme11t Services Department and ,aompllete trai11ing on a ppllica ble City Municipa I Cod es and HWACode of Ordi11a11ae regu latio11s, as wellas. poss,es.,s pr-evrio us related e:xipe1rience a11,d/odl,e ap proprri1ate ICC certirfka' ion prior to performi11g inspedio rn;for the City.
• BPR';!ill be available within one bb1s1i11,es.s day to res.po11d to que. tio11s from the City Hrnt may be generated during field i nspedio111for each autliori1zaed plan clheclkth at is.su bs,equently i1s.sued a permirt for ,cons.orudion.
• BPR will communicate data to tJhe City 11ecessary for Certifikate of Occupa11c.y for each projed review as outlined in CBC 111.L on a form prov,ided by the City,.

BPR iis confident thia,t we ,can proviide the requested plla,ni reviiew buiilding insp,ediion and permit itedmiician s,e1rvices i1n, a,n effa:ien,it a,nd 1professiGnaL m,a,nner while meeting all ,of tJhe 1p,ernorill1anc,e expedations as ouHinedliin tlh,e Ciity•s RF'P.

Below yo111 wiH find addi,tienal details m 0111r approach methedology and irnplementatie:n.

Building and Fire Plan Review Servi:ce.s
Alll plans exami111ation s,elr\lrices will be penormed i111ol.llr offke(s) by or 11.mder tlhe diredio111 of a l1aensed ,ovill or strucrural engi1neer. Our bL1ilding and fire plla11s.examiners. maintain a wo king lknowlledge of app kab!e building
codes and plla111review procedures.. 0 u sr taff wiill use their e:xiperience and s.kiills to promote ,effidentse1FVices on behalf of your department. For unusual or large 1projed:s, a11dl when 11e,eded to meet aggres.si,veschedules and pealk wo kload demands., addiri1ional qualified taff wi111 be assigned fo e1nsu re pmjects. a re thor,oughly r-ev11e ved aml all pmjed deadllines are met.

Our staff will!work wi1th proj;ed ap plica nh and des.igners.in a ,aolllab orative and prnfessio na I manner to q u idklly identiify and resolve code compl1a11,ae iss.ues,.Our builldi11g offidalls wHII collaborate witlh projectdes1ig11eic to 11dentiify code compliant sollutions.to address complicated code i&.sues.. Our plans examiners. will perfo1m detailed plan reviews. to prr0ll1ide complete a11dl aaCL1rate co11structio n docu menh to minimi1ze q ues.tions.and probllems during the co11structio111plh ase of projects.. BPR wHI fumill>h ourplan review s.raffwiH1,all11eces.,saiy mat.e11ialls, r,esour,aes.and training as required to provride plan rev1iew servraes., including a copy of applkable City amendmeillls., pollic:ies, fonns., and procedures,. Staff propooied to serv,e the Ciriy wrn be profess.ionalllly qualified in both experienae a11d certifirntio11s. to perlo,m commerd a I and/or residenticaI plan rev1iews.

From tJhe R.FP w,e understand that. plan revriew s.eiv,iaes willll be requested infuW [bundle) or in "part" (segments.). "FuW bundle submittals. willllbe rrevie ved for ,aomplliiance with tJhe strudural and no11i-sirucrural portions.oftJhe Callifomia BL1ildi11g Standards Code (Tit!e 24) Parts 1 through 6 and 9 including stnidural,11on270 C-246-2023
strucrural, aooes5'ibillirly, eledrical, med11111ical, plumbi11g,,green building and errnrgy podio11s of the Codes. A FuW review allso indudes ,cross reference wil:h appllt:cable d1'1i'r11andlhadeSIPedallty documenb and the review of aU defe11redl submittals. Partial[ pll1111review:segmer1ts" willl be reviewed for comp iam,e with the specifiied code disdplines being requested the specific portio11s ofihe project will be reviewed for conform1111ae wirth appllicablle portlons.of Callifomia Building Standarrdls.Codes.

BPR's taff understands the impmta111ce of prrov,idli111g quick, efficient. andl,aonsisl:ent plan review seIrvices to e111b1 le building projeds t.o stad co11sl:rudio:n a:s quiclkly a:s pos,s111ble which i1s critkaI for U1e economic im pad prnjects may have to the C1rty and the applicant, a11d is especially critical due i::o. the Tahoe Region's short building sea:so:n. We u11derat.and tha!l:it. is imp orfa nt to tile City tlhat pll1111reviewsdo 11ot go past three (3) reviews.

BPR's staff slirive to ,c,ompllet:e the plan review process foralUI assig1ned projects in three or less revrews, often we are ab!e fo approve project 3fter the second review. If a11y review goes pasl:he t:ilirdl review, BPR's staff will notify the Cirly • taff for diredio11. We often requesl: meeH11gs with prnjed: appl11rn11b. whe11we bellieve specifiic code requirements provide des11gn ,challler1ges. Tlhe focus oHlhese meetings.is to ,c,ollaborate with the project s.takehollders a11,dCity st:afffo id er1tify ,c,ode comp 1a11bolutio ns in a proactive manner,. We also understa11d that aIIpla111 review commenb are subj ed to the approvaI of the City and a11y revisions requeste,d by the City Bui!ding OfficiaI must. be comp let.ed withi111twenrly-four hours after quality assuranee review by tlhe City. Addlitionally, BPR will 11ot recommer1dlapproval to the Ciily unl:il all code ,c,ompllirance issues are formallly reso!lved and all permirt:issuarnc,e requiremenrts of the Cil:y Building Dlvisio11are sat1sfi1ed.

Technkal Plans Examinra,tionrCapabilities
BPR's staff poss,ess S1igi11irficant technical capabilities in all! areas of plans exami111atio11competency gained from years or experience prnv,1di11g these same s,ervices.. All plans examiners are California1c,ensed engineers or ICC certlified plans examiner wiH11multijple yearrs of exipeIrience provi1ding plla111 revr1ew servr1c,es. Our staff will co11dlt1d accelerated or projed:-slPecifik, phas,e,dl, plla11rev,1ews0:11a1nas-needed baS11s as requested by clients.

Our pll1111s examiners hav,e a thorouglh understanding of code requireme1111ts, are ablle to readl, underst.md and inteirpret ,oonstrucli1on documents, energy calcullatiorns, geoteclhrnirn I repom structurn I calcullatiorns, elechicall lload calcullatio11s, comi1s.s11oning reports, a11di0U1er as&ociatedl design dlo c-um e1nts.

Our plans examination staff have the abilliiiy to prepare welll-w111ften plan revr1ew lletters, ,c,ommunkate ,effedivelly orally and in wrirlfog, and wo k effediiveily wirtlh jurisdid:i:on staff, projed: design i::eams, and ,c,onhadors. Our plla11s examiners posess !knowledge of H1e most current state-adopted building standardls.

Architedurat.

BPR's no:n-struc 11.1raI plansexami11e; hav,e provided plan review services for a broad array or prnjects fnrcludirng large residentiral, commer,cial, institutional, fndustrfall, rd.iii, andO:SHPIJ 2, 3 and 5 medical office buildings including multiple projects located i11 s11ow,country wHh s11ow shedldi111g,co11cer11s.. Ma11y ofom1Pla11s exami11ers are CASp certified,.Complet.edlIPla111revr1ew projeds range from si11g!le-si::ory res.ide1111lialIPro jects t.o complexhigh271 C-246-2023
rillle builldin and 11,umemus building addlitfons and remodells. We are ,experien1oe,d a111d famillllar wiitllhthe use a11d appllrc.at1ion of the most current.,ed11i:ions of the foUowing mo die!,aodes:

Callifomia Building :Standards Code
(Tiillle 24) Paro;.1 tillrougjh 6 and 9
lnte1111ationall Building Code (IBC)
Amenc.nils wlitlh Dis.abiUrties Ad.Standards
for Aooes.s1ibile Design
■ ANSI Standards
■ NIFPA Codes & Standards
■ CA Codeof Reg)l.llations (CCR),TirHes 19 and 25
■ Juris.di dio n-Adopted Amendm e,nts or Ordi 111ances
Structural
Our strudural engii111eeirshave expe11ierrne reviewing and designing building prrojeds subject to tile s1iginificant sinow and wind !oads IPresented by thedim ate in South LaIke Tahoe. 0 ur strudurnI e1ng1i1neers hav,e revie 'J'ed aII types of projects inclluding res1identiiall, mu!i:Hamily, commercial, and mu!i:ii-s.tory projects including mid-rise a11dl high-ri1se pmj,ects inst1itutionall projects, i11dusbliall projects, retail builldli11 , schools, medical offfoe buildings and mud facilit1ies.

Our structural engineers have expe11ie11ce designi11g and reviewing projects comitrudedl with all! builldi11g mate11ialls i11cluding the foUowing:
■ Wood
■ Reii11for,aed Masonry
■ Heavy Tiim ber / Timbeir Frame/ CLT
■ Rd11for,aed and Prestres.sed Concrde
'" Stressed Slkiin Panells
■ Sbructurall :Steel
■ UgjhtGaL1g,e SiteeilFraming
■ Sbrnw Elalle
■ Rammed Earth
■ lnsullated Co11crete forms, (ICF)
Our engineera have des1igi111ed or·reviewed a wide array of strudura I lateral for,ce resisoi11,g systems inclluding:
■ StrucluraI steel momeni:frames
■ Buclkl1i11g-restrai1ned braced frames
■ Eccenhfr. braced frames
■ Concentric braced]frames
■ Conc1rete moment firnmes
'" Wood shear wall systeims
■ Ma onryslhiear wall! systems
■ Concrei:,e shear wall systems
■ Ca11tillevered collumn systems
■ Pre-stressed!a11d post.-Tensioned Co11crete
■ Various proprietary lateral for,ae resi1sti11g
systems
Our shudural eng1i11eers a11d i11spedoirsare experrenaed with the provi1S1ions of most model ,codes i11dudi11g current v,ersiions ,of:
■ CCR TtrUe 24, Pad 2, Volumes 2 & 2.5
■ 111,temational Bu tiding Code (IBC)
■ AISC 341, 358 and 36'Cl
■ A:SCE7
■ A:SCE4l
'" AISI Standards for Colld Fnrmed Steel
■ Ju11isdid1ion adopt.e.d amendments
ANSI / AF&PA NDS for wood framing
■ ACl318
■ ACI 530 I TMS 402/6'02
■ CA Hillltoric Elt1ilding Codes
■ CAExi1sting Builldling Codes
■ NEHRP
Mefl:lilrainicaI,. Plumbing & Electrkal
BPR's mec.ha11ical and eledrical eng111111eers ar,e well veirs-ed in time California Mechanical, Pllumbl111g and Electrical codes. W,e will review submirtted design do CLIme111ts fo ensure complia11ce to the current edition ofi:he folllowing codes:
272
C-246-2023
Ill
■
■
Carifomia Bt1ilcling Codie
Carifomia ResrdlenHaI Code
Cartfomia Plt1m bi11g Code
■ CalLiforn i1a MechanicaI Code
■ CalLiforn i1a Ellecbii caI Code
■ Jlurisdktion adopted amendlme11b
Spec:iallty [Plan review seiv1ioes may be [Provided ub11izi111g the most cm1re111i::edirt1ions of 11atio1rrnll sta11dards i11duding the followi11g::

Ill
■
■
'"
■
I11,temational Bu tiding Code
I11,temational Res1identiiall Code
I11,tematiom,I Mechanical[ Code
I11,tematiom, I Plumbi111g Code
NFPA Standards 13 [automatic fire
spri1111kler systems),
111 NIFPA Sta11dards 2.0 (fire pum[Ps)
■ NIFPA Sta11dards n (fire ala1ms),
■ NIFPA Sta11dards 99 (medical gafaes)1
■ NIFPA101 WeSafety Code
■ NIEHRP Requiremernts forhis i11g
Building
T'RPA Compliance
We understand the impo:rtance of ,oompUianee with RPA requirements to the Lake Tahoe c:ommu11i1ty in order to maini::ai11the pristfoe ,quality and cllarity of Lake Tallrne,.Our engi111eers and [Pla11s examiners are current a11d ram iliar with TRPA mitigatii on r,equirements asthey app llyto wmdiructio11p1rojeds indudi1rng completed builldi111g projeds and will! verify that appro[Pifate TRPA mitigatio11m1 easures are addressed on Urn [Plans we review. W,e understand H1e im[Porta11oe of mai111taining TRPA c:om[Pliance meast1res both during ,aonstrnc:i::io11a111d for H1e c:om[Pleted projeds we review.

Energy Compliance
Our engi11eers a111d plans examiners are up to date0111all! Callifomia Energy Code requirements as they relate to both new a111d remod ell constru d:ron for aII IPro jed types,.Our staff have expe,iieirrne verifying Callifomia Energy Code req LIir,eme11Jtsfor IPro j;eds located witlhi111 Climate Zone 16. The E11,ergy Hfiia1eI1e1,1y Starndards for Residelfltial a11d Non-Reside,111tial Buildi1111gs were established i11 .19'78. in respo111se to a lleg1isllafote ma111date to r,eduoe Callifomia 's energy co11sum pilion. These stand:uds 1h ave lbeen u pdai::ed s1inee th at time to a didress a multitude of building ,compo111ents, systems and equipment with tlhe goal of having new and updated lbuildi11gs be morce e11ergy ,effident, oomfortablle for building occ:upa11ts,and lless11eliant on fossil fueils.

Green Building Standards
BPR's staff has a worlkli11g lknowlledge of the proper inc:oiporailion of CAL6r,een builldi111g criteria into projed de.sigirns and tlhe 1resullti11g potenti1al impad of these standards relat,ed to builidling code ,oompllhrnc-.ea11d tlhe e11,vimnment. Our plla11s examiners wii!I review projed documents to verirfy com[Pliance witlh adopted!Green BuilldirigCode Sta11dlards as required by state law and Lo call amendments and ordliriarioes.

Access Compliance & CASp Review
All !:IPR CASp-c:ertilfied [Professionalls are lknow!edlg,eablle of state and fedleral accessibility laws and regulatio11s a11di possess the experti e ri ecessaiy fo promote access to fad lities fo:r p eIr&ons wirtlh disabilirtles. Our staff ar,e expeirts in the i1111dustry, maintai111ing apprn[Pifate ,aeri::ificatiions demonstrat1i1111g their experticse, a11d arce expeirienc:ed [Providing services for builldlirig departments in a seamlless ma11ner lballa11oed and in coordinaoion 273
C-246-2023
w1itlh our cllie;rnt' exped1,t1io11c&and needs. We understand the chaUenges of comp[lying with access1ibiUty requirements i111mountainous commu11irties and we wo11k coll!abo1rntiveily w1itlh ourdie11b to address.accessibility plan review a11d inspedi:on rellated issues as effidently as possiblle..

Our pllans examiners are fulllly trai111ed and famiU1ar witlh CalHomia Building Code Accessib il11ty requiremenh and ADA ,compUranee requiremenls and are availablle for plan review and/or insjpedion services. l,P,Je offe1r support. to municipaUrl:1ies for compliance enforcement amll/or devdoping lir,msirl:ion pllans,.We ,can as ist our·di e111ts in researchi11g and prnv,i ding interpretations of va11ious jpecifiic. i1Ssues relat.ed ·to access compliance inclluding access compliance oblligation, translitio111plan develop me;rnt,,construdio 111,Gos.ts and phasing, a11,d regulation inte11prefatiions.

Flood Zones
BPR's staff of engineers and plans examiners have e;,,;:perieinGe in providirng plan reviews for projects llocated in PEMA designated f!oo d zones and ,areas pro 11e to flooding. BPR's staff has prnViided numerous p la111reviews for projects located in flood zones using FEMA's Ted1111icall Bull!etii1ns as well as loc.alllly adopted ordinanGes.

Additionallly, members of oudeam have parilkipated in state-sponsored ,committees to estab ish guidelLines a11d building code requirements forproj;ects planned in areas des1igi11ated as flood .zones.

OSHPD 2, 3 & 5
BPR's staff of plans examiners and building inspectors have ext,ensive expeirience providing plan review and insped::ron services for OSHPD 2, 3 and 15 projecis. Om staff is weU informed 0111the OSHPD 2, 3 a11d 5 requirements inclluded in llhe CalLif:ornia Building Code. Our in5ipection staff includes an OSHPD certified inspector with rcecent exipe1rience prov! ding inspection services for hemodi1allysi1s., outpatii einhurgery, hypemolie chamber, medic.aI cllirni c.s and a cute psychiablic facillities.

Fire Code Plan Revi:ews
We have experienced and lfoensed and/orcertifiied fire protection professionals on staff to address yourfire and m,e safety needs. Our fire safety plan r,evlew and inspection staff can quiclkly and accuratelly check plans for compliance wi1th appllicable fire ,Godes and :standa,ds. Our fire protedfon staff routiinelly review and insped::
projects for compliance with fire and life safety regu!atio ns.

Our firre pllarni examiners am di insjpectors 1have extenSiive experii e11G1e i 111the use and appllicatiio111of the foIIowing model codes, standards, and regulatio11s::
■ Camomi1a Fire Codie (CFC)ia111d Cal1ifo1111i!a Builldi11g Code (CBC), with !ocal ame111dme1nts and regullatio11s,. ■ Adopied Nation all Fire P1rotection Sta11dlards
■ Camomi1a Heallth a11d Safely Code
■ Appro pr;iate llisiings (CSFM, U.L., ek.) forcomm on systems and mater;i alls ■ Fire Department Standard
■ Code r-eferenced National[ Fire Protection R:eference Standards ■ Mtmicipa!, Stal,e or FedemI regulatr1ons enforced by !ocal Fiire Age111cies 274
C-246-2023
BPR's st11ff is a dive wirth the Ca ifomia Fire Prevellibion Officer's As.sodation, as w,elll as llocaldmpi:,er of i:he l11te11rrntio11all Code Council and Callirforn,ia Building 0ffiida!s Organizations throughout the State of Callirfornia.

Eledroni:c Plan Review
BPR Consulting Group is expe11ienced with the C1rly or South Lalke Tahoe's •Google Drive-based eledrnnlc documeirnt bransfer system and proposes to work wiri:h the City and use this system as r,equesi:ed,. We do, however, maintai11 an ,efficient. ShareFil.e-1::iasedl, ellectro11ic documeni:: sul::imittal sysi::em for reoe1iving and se11ding llarge ellectronic doc.ume111i:: files. We hav,eesi:alJlishedla unique distribution emaiI addlres..si::o whic:h tJhe Greycan send 11ot1ificatio'lls and ,oorrespondence.

We will[ review ellecbronic submtiltalls utiHizing Blluebea,m and ,can easily uppllement our comment lists wiiH1 .s:rnapshok of redli11es fo fadlitate the plla11,re1111iew process and effkienii::ly·communical::e om comments, where necessary.. Fina1,ellectro nic do cum e111ts willl lJe stamped in Bluebeam, flattened, a11di reh1med to the City via i:he Googjle Dr11\i'e llinlk or our Sharefi!eportaI as prefe-rr-ed by the City.

Pllan Review Complletion Timefrarmes
We will complete alll plan, r.eviiews within the timeframes shown, l::ie!ow for both commerdal and reside111lfall projects and will! accommodai::e any tumaround &chedule agreed to wirtJh our clients,.We can provide expedited phm review services whe111requested.

We u 11dlersta111dithaHhe tum-around tiimes notedIJellow arre from i:he day we receirve 11o1tii oe thatthe plan review is availlalJ!e to the day we rdurnthepla11,review comme111k or do rnme111k to the Building 0ffidall for review. All pllan rev1iews are subject to review and approval by the Building Departmeni:, any issues ideni:trfied during the Builldli11g Department's qua ity am;urarrne rev1iew will! l::ie co11rected within 24 hours aft:e1r n obifi catio111 of an 11ssue.

We un dlersi::and a 11di agree thai:: we are 11ot. to contaci:: pe11mit.applicants during the plan review process unlless directed fo do so by the O1::y and de 1nque1111t.plan rev,iews willl lJe a:s ssed a pe1111allty a:soutlined 1111Sedlion E..

BPR wiIIhack tum-around times and the numb e1rof sulJmirttaIs requ"red to obi:ai111a1p prova I for alll pllan review projech TIilis dafa will be deliv:.ered to the Building IJepa!Fi::ment upofll requesi:.

Maximum T1.1m Around Time
Project Type (Business Days)
Initial Submittal Backcheck Reviews
Residential! (Singjle Family)
N-ew Cornsoruction 10 5
Adciii:ion 10 5
Remodel[ 10 5
Non-Resiidenfo1I
N,ew Cornsoruction 10 5
Addii:ion 10 5
Remodell, Te11a1n1t Imp rovemen ,t 10 5
Large, Complex CommerdaI,
Residential, or Phased Projects
Turn-,around times aire to be negotiated with the Building Official baised on the ne,eds of the project
275
C-246-2023
Communka1ting Plan Review Results
Pihm r,ev,iew commelflts, when 11ecessary, will be type ..,riften into the Cirl:y'shaell-based comment list format.

The comments will refoirfo sp edfiG details, drawing orsu ppo rting docume1nt, and will reference a ppllicablle code sections. BPR will! prov1ide a cllear,,aoncise, a11d thorn ugh plan review lletter itemized by specific disd pli11,e such as lliifse afety, aooess1ibilli1tys, i:rucrural, pllumbing. meclhianical, etc, that ,can be efficienUly utilli!zed by cllients, de-S11gine1rs, co111traclors, and owne1rs to understa11d U1e noted defi1de1nc.y and malke necessary corredt:ons to U1e prnjed documents.Atthe complet1ion of.eaclhlplan rev,iew cyde, BPRConsullt1i111g Group wlill retum a copy oHhe pllan review comment lletter to the Building Offidallfor rev1iew. BPR's sta1ffwilll not ,c,ontact an applicant d'irectly unlless directed by the Building Official. Wlhie111111ecessary, in order fo fadlitate plan review approval, we will partid pate i111meetings wlith City taff and project applicants to discuss pos. i ble code compIiant '°'olutio11s to challen:g11111g design issues,.

Upon completion of tlhe plla111review process, we wil rei:um ,aompletedlpllan rev1iew docume1nts, in either lha1rd copy or·ellectro nic fo11mat as required bearing BPR's.pllan reviewstamps and ready forfinall.appr-ovaland permi1t issuance.. As requested, we wiU update i:he City's peirmit tracking system and coordinate with otlhler City departme11ib k, ensure all applikable e1ntiities l'mv,e approved i:he project fo1r permit issuance. Our final tira nsmiHa I will indicate any defe11red sub miUalls,special ins.pectiion forms., etc. to besubmitted to the Bu ildli11g Department during ,c.ons. ruction.. BPR's.staff wiII also communicate aIIdaita as. required to is.sue a CeirMkate of Oocupancy as spedfiedl in CBC 111..1. on a form provided by the Building Department. Recommendation of a pprnvall will not be i1s.sued to the Building Offid a I until alll ,aode compliance is.sues hav,e been res.ollved and a II building code issuance requirements have been sai:isfiied..

Quality Control! Schedule Control
Plan Review Servi es
Alllof BPR Cons.ulltingGroup's pllan review serviices ar,edosely·managed firom ihe moment a pmjed ilS as. igined to ,aomplleti:on of our services, Onae a prnjed is as.sig11ed i1t i1s ,effltered info our custom designed plan review database,, The !Project documents are tlhen dow111loadled a11dl triaged for completeness and fo ide11tify if any documents 11eces.sary for plan review have not been provided. Upo11,aomplletion of tlhe hiage prooes.s, plla111s examiners are a:ss.ignedlas. warranted bylh e propos,ed worlka:ss.ociated with the SIPecific.project. All projects are doselly mo11ifored to ensure assigned staff havehe ii1me necessary in their schedules to ,aomprehen:s11v-elly r,eview a:ss.igned projects to mai111tain completion .o>eheclules.

We ass11gn a dedicated team of plla1ns ex;amineirs toserve s.pedfic cllre1nts so your BPR plan review team will rem ain ,aons.isteni:ti,rn LI ghout the teirm of the agreement. We believ,e a:ss.igni11g a dedicated team of plans ex;ami11eirs best. sew-es the needs of ourdie11ts, wi1 h our firm ym..1 willl not have ra111domly as.signed pllans examine1 a:ss.ignedlto eaclhprnjed. AU plla n reviewservices a redoselly monitored by our plan review supervisors and managers for cons.isl.ency, thoroughness., a11d quality-. We utrnze a discipline a pprnach to our pllan rev,iewservices., ass.igni11g a life s.afety rev1iewer, soructurall rev1iew,e1r, ellectricall rev1iew,er, medm11icaljpllumbi1ng reviewer, grading/utillil:y rev1iewer and fire ireviewer, a:s appropriate, to each assigned prnjed bas-ed on the proposed scope of worrlk. We belliev,e utili121ing a discipline appmach provides. a more comprehen 1ve plan rev1iew as eac.h rev11ewe1r i1s a specialist in their di1:;dplline. Eac.h plans.examiner inclludes 276
C-246-2023
l:lhefr email[ adldress and desk plhone 11urnber witlh their plla11review cornm e1nts to fo cilital:e dired: and effiderit commt.111icatio111between projed desig11ers a11d ourr
prnfessio11all plla11s examination staff. Our proposed Pla111 Rev11ew Ma111ager, Brn Rodgers, reviews each projed: forr i:lhoroughness and accuracy prior to plan review
comments befog issued or p11ior t.o recommendation of
approvall for permit purposes.

Upon award of ,aoontrad:,our prnpo:!"aed Projed Ma11age1r V"1iII schedu!ea meeti111g wiiH1the Grl:y's represe11fative to familiarize the team with llhe City's plan review process, meihodls a11d style,. BPR's staff of engineers a11d plans examiners are experienced in working with rnultiplle jurisdk io11s a11d adjustiing so that tlhey beoome an exte11sio11o1f your staff.. We uiilli1ze a comprehen:'>iveNlew Client Checklist" llhat doc1..m11e11issp edfiic.requireme11is ofeach commu111ity weserve. Upo11se!edio111and beforce commencemerit. of serv1iaes, we schedt1!e a meeli11g with ourr 11ew ,dienb fo review specifiic. plan review requirements a11d ystems used by ou1rdients o our services can be integrated in a seamlless manner.

Shou!d issue arise with tlhe plla11 review s-e1FVices we 1have provMed, om Pila111 Review Ma111ager will[ contact City staff to make sure we fully u11,dersta111dl l::he spedfic issue, review tlhe plan rev1iew comment or other it.em in questiion, review the ,oonce111w1ith our staff member, contad: the projed: appllica11t if 11ecessary to address the s,pedfic issue, reissue the plan rev,iew comme11t leUer ilf 11eededl, discuss the spedlfic i1ssue with our ass1ig111ed team of Plans Examiners to make sureilhe errnrin queslfon is 11ot repealed0111-future prnjecis, and foUow up wiitlh City staff fo explai11 lhow the issue in que.stio11was re-o>olved. Our Plla11Review Manager wiill talke any additional steps necessary to ensure that we co11iinue to pmvide s-ervices that meet or e;lliceed your expectatio11s and 8 re firee of errors a11d om i1ssio11s,.

As noted above, all! projects are logged info our data base a11d assigned due date.s. Our staff a11dl ma11agers all have aooess to i:lhe data base and the due dates arce carefullyhacked a11dl managed fo e11sure projects are completed in a t1im elly man11er. If for an u11foreseen re<1;So,11a plan review is 111ot completed within the siipulated plla11r1ev1iew l:iim efirame, we will[ reduoe ihe subsequent plan review timeframe by the same 11umber of days in ordlerfo 11ot delay the projed.
lmspection Services
Upon request from the City for any tnspedion 11eeds, BPR:staff will! reach out to rce-quest a meebi11g bo better understand llhe specifi1c needs ofllhe City, such as any OSHPD3 or CASp requirements. After undersfa11ding your s,pedfic needs, we will review staff availlability and forward resumes of our prnpm·,ed lnspedor to the City.. If necess.a1ry, an i111tewiew will be scheduled <1llowing City staff to learn tlhe depth of ,oode knowlledge <1nd perso111all11ly of the proposed! i11sjpedor ,ca11didate. Followi11g a successful[ inteirv,iew, a st.art. date willl be coominatedlwith llhe City,.

Code Interpretations
We under ta11di that a,IIcode interpretatiio ns are subj e-d to final rev1iew and approval by H1e Building Offi1da I.

BPR's e11gineers a11d plans,examiners willl p rnvide unbias-ed reco rnmend atio11s, ,oode research, a11dibadkgrn u11,d i11fo11maifon to assist llhe Building Offiici<1I to make an i11fo11med code c-omplliiant determination.. We further understand that.all! plan rev1i ew comments are subjed fo review a11,d apprnval by the Building Official.. 277
C-246-2023
Special Projects and Accelerated Services
BP R is ablle fo acco mm odaite SIP ed all pro je-el.plla111review needs s.uclh as e;,,;:pedited, prngress1iv,e, oir p has.ed plan rev1iews,. We est13blish projed s.pecific plan review tum-arou111d go13ls and procedures with the Buillding Department. and ap p irn nt.fo1dh ese types of projeds. based on H,e com ple;,,;:i1ty oH:17e pro j;ects and the desired cons.trudionscliedule. Oms.raff of ,engineers.and plans.e;,,;:13miners. will[ wo k wirtli,U,e Building Department to resolve 13II p113111 review is.sues. Our s.taff will[ wo1rk with 13ppllic13111ts 13nd pm j;ect des(gi11em du111ng the pllan review process. to r,es.ollv,e 13ll p 113n review rel13ted is.sue-s.in 13 coU13bo:rafo,e m13nner foaused on res.ollving a II pllan review is.sues as efficientlly 13£ pos.,.s1ible.

Custome1r Service I Responsi1veness
BPR Cons.ulting Group's staff i1s allways 13vailablle and willing to discuss pllan review is.sues for projects th13t we have irevriew,ed with Bu"!ding Depa rtm entst<11ff,13 ppllic13nt:s,des1igi11e1m and ,oontradom via i11,-pemo nor eilectro nic meetings, telle1phone, or e-mail as. required to resol e pl,111re1view rellated is.sues.. We maintl3in Microsoft Teams., Zoom 1311d ·Gol o , eeting accom,itsin o:rdeir to foster efficient commun icatfo n wi1lh project proponents who may be localed outside the Soutlh Lalke Tahoe area.. Voice m aiIs and e-mails wi II be reslPonded fo the s.a me day they are reoe1ived, if poss1ible, always.within 24 houirs..

Wlh en we 13ire notifiied thal:a plan review project has. been a:ssigned to us., ElPR's staff wllllaclknowledge then obi ae immediatelly, 13lways within 24 hours, and we will[ i mm ed i113telly1311ra11ge shipping for U,e documents. i1f required.

BPR's sfaff willl be avallablle within one bus1i11ess day to res.pond to questions from the Builldling Offlciral or insped:ion staff which may be generated during field inslPections.of projects wliich were reviewed by BPRs.taff.

Building lns1pedio1n Services
BPR building inslPectors are qualifiied andl appropriatelly IC.Ccertirfiedll:o provide the reques-tedlinslPedion serv,iaes, which willl be pe1rformed at. the Development Se1rVices Departme1111t. and w1ithi11t1lhe limits of l:he C.irl:.y of South lake Tahoe. Assigned building inspectors wiill have expe11ienae and be famil1iar with locall ordi1111n3 ee re,q uirements a!011g with constructio111methods. a:ssociated with higlhl wind and snow load requirement:s a:ssociated with building in Cllim ale Zone 16. OL.r1i rnllPectio111s1taff ';11111 perfo11m inslPedionse1rVices to v,e1rify that the work of cons.trudion isin ,oonforma11ae \';llirl:lh tJhe approved project pllans. :a:s weill as.identify,ing is.sues of non-compliance wi1i:h a ppllica bile buillding co dies,.Our tielldli11s pectio111services willl i11clude inslPection of all portions of projects inclluding projed sites as applicable. Our building inspedors will ';llrite legiblle and undersbrndlablle ,corredfon 11oil:rces field reports, and will be available to amwer in-peirson, em ai!ed, or tellelPhone i11q1 uiries. AU i11,s,p edio111peirs.onnellas.signed w1iII be ICC and/orCASp ceiriified as irequirred.

We willl wo d iligentllyooellect andas.s1igi11lloca lly based inspectors oo pmvide the requested servrces.

We u11deirstand l:hat many municipalities have amended code sectio11s po rides a11,d ordinances tJhat impacUhe wok that is ins.peeled a111d s.hown on app rov,e,d p rojed: pllans,. Our insped:ion staff will familli1a111ze l:heimsel es ';llith local[ requireme11h to ensure thaHlhe projects we are i11,s,pedingare ,oompllia111t.with llocaland current cod'e req u ir,eme11h. Spedficallly, we wi II ensure ,oomplllla nee with the a ppllica bile pmvi,sions of the itle 24 Ca lifomi a Buildling Sta ndardls Co.de, Parts 1 tlhrouglh 12, ,ooveri111g strudura I fire prevention, lffe s<11foty, disabled acce&-s, e11e1rgy conservaoion, gr,een building, pllumbing, mechanical a11dl e!edrical installlations in residenl:i1al, 278
C-246-2023
commerciial, industr;iall, exi1stii11g a11d hi1sforical bui!di111gs. BPR.'s ICC/CASp certirfied inspe.i: ors have perfolimed building i11spedt:on servk1e-Son a w11die varfoty of construcolon p rnj eds i111cludli11g master planned dev,ellopme11b, 1ngle.cfomilly prod11.1dio11, custom home-S, commerdal, ma11ufaduring, im,mutio11all, assembly, esseilltial service, indushiiall prnjects, a11dl i,i1storicallly designated builldi11gs. When necessary for llarge or fast-paced projects, mulltip!e inspectors can be made availablle.. BPR's inspedors will inspect projeds to v,eirify co11fmmance wirth approved project: drawings and spedficaoions which wHI indude review of the permirt dornme;rnts to veriiiy that o:rns11te co11di1Uons are cons1iste1111t. with tile approved docume11b for :size, setbacks, heights a11d other appllicable re91uireme:rnts. At. tlhe complel:ron of i11spedio1111s, BPR's i11spectors will! update dal:abase i11fo1mao1on, comp!ete11ecessary forms and doc.ume111ts as required to prov,1de seamllessservice.

Inspector Qualiifications& Certifications
BPR w1iII work with you to selecl:ap propriral:ely qualiiii1ed inspedo rswith applk able experience a11dispedfic code k11m";1fodge based on the types of proj ect:sa&-s1i 1e11d for inspection. AU BPRCo:rnsullt11ng Group inspectors are ICCcertirfiedl with many ma1111l:aining CASp certllficaoion. In addition, BPR ,emp!oys OSHPD certified] inspectors availabile for i1111sp edion of OSHPD desi rnated facilliro1es. lnsp edion peirsonnel will! have l:lhe abillirty to readi, und eirsta nd and interpret.,i:onsorudion pllans, truss dra ';llings and ca!cullations, prepare a11d maintain accurate records and reports, communicate effedrivdy oralllly and in ';llriting andi to work effedivelly with co1111tradors, per;mit. appllkants, lhomeow11errs, and City sl:aff. Inspectors will poss,ess lknowledlge of apprnved and mod em methods, mateiriralls, too Is, an di safety used in building inspedion andll'1e most.,i:urrent building standlards,.Our inspectors are familtrar wiith most.ofthe common sclheduling an.di orndkfog systems uti iz.e.dlby bui!di111g departments and can quiclklly ,adapUo your systems and requirements.

BPR will! shiive to ide1111tify lornlly based builldli111g inspecl:i:on stafHo provide tlhe reques-ledlse1rvices. Upon sellection BPR willimmediately run alloc.aI recruitment ad to idle11101fy !ocally based and quallirfied inslPedw
appllica11il:s to minimize travel relal:ed ,aosts fo Urn City..

Pending our abii1ty to idenoify lloc.ally based ,c.andlidates, an ap pro prirately quallirfied staff me;mbeir willl be assigned to provide tlhe requested insped1on services. During tille course of the al':lsignment our pr•oje.d manager \';llill communicate with our as5'1g11ed inspedor a11d1i1tlhe City's insjpedi:on superv,1so'r or otlhe1r designaoed staff 0111 a regular basis to e1mirure all se!fVices being pmvijd]edl ar,e meeting the needs and] expectations or the City. If concerns are expressed] related fo OL1r ins,pector's perfmmance, our Project Manager will! immediateily engage with our assigned inspector to cm1rect any id e111tified perfmmance related i1s.sues.

TRPA Inspection Services
Ass11 111ed i11specto will[ be famillirar wirth TRPA miroigaUon measures irndl as requested will ve;rify that appro1:rniate TRPA mitigaoion measures idelfltified 0111 the approv,ed proj;ed plans are i11 plaae during com,trudion. Adlditionally, at comp!etrio111of consorudion our inspedorrs, as part of U1,e;1r final inspedr1on, \';llill ve111fy that all! TRPA compUa11oe measures as idle11101fi ed on theapprnved prnjecl:pllans are in plaoe..Our builldli1111g i111sjpedors will[ immediatelly conl:actihe Building Official if it isobserv,edhatTIRPA measures thatfo tlheopi11io111 279
C-246-2023
of the im,ped::or should be in place but ha't.!'e not been installed or were not in duded on the approved projed pllans priorrto apprnvh1,g projects.

Permit Techniidan Services
Knowfodlgeablle and perno:rnable pe1mit tecl-midans are the first impre.s.sio11I1Jhe public gets of your builldling departmellit, and tlhey play a c1Hicall role as to how your departme11,t's services are perceiv,ed. Pe,rmiti:ecllrnician services are crucial[ fo ilhe succe.s.s of ilhe entiire but!ding safely wol'kflow wiH1in builldirng dlepartrne111ts. TIile abilirl:y to conv,ey p rope,r informalii on to pem, irl:applicants, prope ly ca!cullate perm111: fees, prnp eirly mute plla111s to various dleparlme111ts fur review, traclking approvals, database management and pe1mit iissuance are all crirlikall fundiorn;,. We u11dlerstand that the abil1it.y fo deliveir exioeUellit ,customer service, maintaining a smootlh flow of pem1i1t documents throughout. deparlments, and mai11,taining aocurate and up-t.o dlate records, are all key ele,ments fo fumi.shi111g first-rate, efficient succe. s of your building department. BPRp errnii: tecllrn icians ar,e s!kill!edlat.and expederi oed in worldng b olh remotely a11di on-sibe fo d elliver quallirl:y p eirmitting se1rVices.

BPR wiII p rovid,e Pe,rmit Tecilinid :;rn.swho a1Fe qualifiied by b otlh experie11oe and ,oeirti1ficat1i on to greet a11di work doselly wirlJh the cusbome,rs at tile puMic. ,oounte,r at.the Devdopment Services Deparlmeni. or via tellejphone, amwe111111g quesli1ons and providi11g accurate informati:on. Our Pe11mit Technicians will prov,idle i11forrnation about pe1mit applications, phm review and inspection requirernents, willl be organi1z:ed and have the ability to maintain fi11ing systems nec-.ess.ary for lirackling pe11mit appllicaliions, permirts iss.ued, pllan ,checks in pmgress, apprnved prnjed docume,rnb; and any oi:iler recmds o'ri11forrnation importanHo the efficient opeir·ation of your departmellit.

BPR will sh1ive fo idle1111Jify localllly based permirt teclhnician staff to provide the requested sew,ioes. Upon selledio111, BPR will immediately run a local[ recruitme111t. ad to idenl:iify localUy based and qualliifiedl permi1t technician applicants to minimize trnveil related ,oosts to tlhe Cirl:.y. Pe111ding our ability fo identify locallly based candidates, an appropriatelly qualified staff member \!lill be as.,.s,igirned fo provide the requested permirt technician services,. Dmillg Hrn cour-ae of IJhe assig11mei11i, om P1rnject Manager will[ communicate wirtih our assigned permit. tecll111ician and the City's coullil:er supe1rVisor or other designai.ed staff on a regular basis to emu re aII services b ei11g provided are meeli1ng tlhe n eedls and expectations of the CH.y,.If ,ooncems are expressed related to om perrnirt teclhnidan's peirfonrrnnoe, our project manager will[ immedliai:ely engage w1itl'1 our assigned permit technida n to correct any identirfied peirforma nee related i1ssues,.

BuildingOffkia1ll Services
BPR staff ha\lle prnv,idled builldi111g offidall s-el"\i'1ioe-Sfor many Ca ifomf!a comm1..mities. Our building official staff posses.,.s exp e1rience and are know!edlgeab!e of the tar.vs and regiullatio11.sassocirat.ed with buildi111g depa rtmeirnt operations and wiII use IJhiis exp erie,11c-.e and klrnow!edlge fo promote efficient services for your depa rlm e:rnt. W,e ca111prnV11die fulll-tiirne or part.-time, on s1it.e builldi111g offidaI s,ernice.s. We abo have tll e ability i:o provide o111-caII as needed remote building offi daI erv,1oes armdjor building offid aI serv1ioes diredly in upporl of specrific major deve!opmerit.prnjecb wi1Jhi11y1our community. Our building officials are lkeenlly aware of the importanoe an efficieint.a 11di pred ictab!e building deparlmellit hao.on IJhe eoonomic, virtal1it.y of IJhe ,oommunit1ies we serve. 280
C-246-2023

EXHIBIT B

SCHEDULE OF CHARGES
BUDGET
TOTAL (not to exceed) $230,000
281
C-246-2023
Proposed Hou1rly Rates fo1r Personnel
Hourlly rates for pers.01111ell designated in H1e RFP are show11below::

Temporary Personnel [}escriptions Hourly Billing Rate
BuildingOfficial $140
Deputy Bui!ding Offldal[ 130
Semior Plan Review Engineer/Arclhlited 135
Pbm Rev1iew El'ilgineer/Archit,ed 135
Pbms Examiner 111]
Pe1mit Teclh111ici1111 75
HoL1S1ing l11s':ipedo:r 85
Olerical Supporl 55
Building Inspector, based0111experiernce and ,oe,rlificatio.nlev,ell 95fo.U5 EXPEDITED Pl.AN REVIEW SERVICES:Expedited plla111reviews can beprovided t1pon request.Fees for expedited plla11review services "'1111 be ,charged at 15·11% of the billling rates i11dicated abov,e.

INSPECTIION SERVICES: We willlprnv,i de the r,equ ested i nspedio11services t1si11g apprnpriatelly experienced a11.d quallirfied candidates utiilizing tile hourly rates listed in our Schedtde of Hourly Billi11g Rates,. There"'1111be a mi11im um S-h our dailly i11spediiond1argefor alll on-si1te inspedii on services,.

PERMIT TECHNICIAN l ADMINISTRATIVE SERVICES: We will provide the requested permit tecilnida11se1rvices using appropriately expeliiem:ed and qualifiied candidates utiillizing ihe hot11'ly rates Ustedl in our Schedulle of Hourlly Biillillig Rates. There will[ be a minimum 8-hour daily charge for alll 011rS1ite or remote permit tecil11icia11 services.

Overtime: lnspedii on services and other houly services prnv,i died in eXJoess of eight hours per day, 11ights, and weekends wi II be charg,ed at .125% of the billling rates i11dlicated above.

Mileage: Vehicle mi!eage ubilized in the performanoe of im;pedion servloes will[ be billled at the ct111rent IRS vehicle mileage rate.

Cornmuite Mileage: Mileage for BPR staff to havel from out of area !omoions to theCity ofSouth la Ike Tahoe will not.bebillled to thediy.

Locally bas,ed versus regionally based staff: Due to ilhe c'1alle11ges of idenoifying qua ified a11d llocally based staff for requested shortcterm assignmelliis, there will[ be an addi1ilional $35 per hour surcharge for assigned011r-si1te staff whos,e pe11manellit residence is llocated mo re Um 11140 miles from the City of South lake Tahoe's dly limits.1111ere will be no addirti:onal surcharge for serv,ioes prov1i died remotely.

EXHIBIT C

ANTI-LOBBYING CERTIFICATION
282
C-246-2023
Consultant shall submit to City this certification prior to or at the time of the execution of this Agreement.

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

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

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

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

Consultant:

Bill Rogers, Principal-in-Charge
Bill Rodgers By:_B ill Rodgers(Nov 29, 2023 12:20 PST)
283
WLTR005 C-246-2023

THE HARTFORD

BUSINESS SERVICE CENTER
3600 WISEMAN BLVD
SAN ANTONIO TX 78251 June 2, 2023
City of South Lake Tahoe
1052 TATA LN
SOUTH LAKE TAHOE CA 96150
Account Information:

We're here Monday - Friday.

Enclosed please find a Certificate Of Insurance for the above referenced Policyholder. Please contact us if you have any questions or concerns.

Sincerely,
Your Hartford Service Team
Policy Holder Details : BPR Consulting Group LLC
284
WLTR005 C-246-2023 285
C-246-2023

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
06/02/2023

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATIONIS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

PRODUCER

RSC OF CA INSURANCE BROKERAGE INC
72186366
2040 MAIN STREET SUITE 450
IRVINE CA 92614
CONTACT NAME:

PHONE (818) 857-5364
(A/C, No, Ext):

FAX
(A/C, No):

E-MAIL ADDRESS:

INSURER(S) AFFORDING COVERAGE NAIC#
INSURER A : Sentinel Insurance Company Ltd. 11000

INSURED

BPR CONSULTING GROUP LLC
2201 FRANCISCO DR STE 140-658
EL DORADO HILLS CA 95762-3741
INSURER B : Hartford Fire and Its P&C Affiliates 00914
INSURER C :

INSURER D :

INSURER E :

INSURER F :

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

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

INSR

LTR TYPE OF INSURANCE ADDLINSR
SUBR

WVD POLICY NUMBER POLICY EFF(MM/DD/YYYY)

POLICY EXP
(MM/DD/Y YYY) LIMITS
A

COMMERCIAL GENERAL LIABILITY
X X 72 SBM BH6444 07/01/2023 07/01/2024
EACH OCCURRENCE $2,000,000

CLAIMS-MADE X OCCUR DAMAGE TO RENTED
PREMISES (Ea occurrence) $1,000,000
X General Liability MED EXP (Any one person) $10,000
PERSONAL & ADV INJURY $2,000,000
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $4,000,000

POLICY PRO- X LOC JECT
OTHER:

PRODUCTS - COMP/OP AGG $4,000,000
A

AUTOMOBILE LIABILITY
72 SBM BH6444 07/01/2023 07/01/2024

COMBINED SINGLE LIMIT
(Ea accident) $2,000,000
ANY AUTO BODILY INJURY (Per person)

ALL OWNED
AUTOS
HIRED
AUTOS

SCHEDULED
AUTOS

NON-OWNED
AUTOS
BODILY INJURY (Per accident)

X X PROPERTY DAMAGE
(Per accident)

UMBRELLA LIAB

EXCESS LIAB
OCCUR
CLAIMSMADE

EACH OCCURRENCE

AGGREGATE
DED RETENTION $
B

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY

ANY Y/N
N/ A X 72 WEC AS9HLT 07/01/2023 07/01/2024
X PER

STATUTE
OTHER
E.L. EACH ACCIDENT $1,000,000 PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? E.L. DISEASE -EA EMPLOYEE $1,000,000 (Mandatory in NH)
If yes, describe under
DESCRIPTION OF OPERATIONS below
E.L. DISEASE - POLICY LIMIT $1,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Those usual to the Insured's Operations.

CERTIFICATE HOLDER CANCELLATION
City of South Lake Tahoe
1052 TATA LN
SOUTH LAKE TAHOE CA 96150

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED

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

AUTHORIZED REPRESENTATIVE
© 1988-2015 ACORD CORPORATION. All rights reserved.

ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD 286
The ACORD name and logo are registered marks of ACORD C-246-2023 AGENCY CUSTOMER ID:

LOC# :

ADDITIONAL REMARKS SCHEDULE Page 2 of 2
AGENCY

RSC OF CA INSURANCE BROKERAGE INC

NAMED INSURED

BPR CONSULTING GROUP LLC
2201 FRANCISCO DR STE 140-658
EL DORADO HILLS CA 95762-3741

POLICY NUMBER
SEE ACORD 25

CARRIER
SEE ACORD 25

NAIC CODE
EFFECTIVE DATE:SEE ACORD 25

ADDITIONAL REMARKS

THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM FORM NUMBER: ACORD 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE Certificate holder is an additional insured per the Business Liability Coverage Form SS0008 attached to this policy. Waiver of Subrogation applies in favor of the Certificate Holder per the Business Liability Coverage Form SS0008, attached to this policy.

Coverage is primary and noncontributory per the Business Liability Coverage Form SS0008, attached to this policy. Notice of Cancellation will be provided in accordance with Form SS1223, attached to this policy. Notice of Cancellation will be provided in accordance with Form WC990394, attached to this policy. Waiver of Subrogation applies in favor of the Certificate Holder per Waiver of our Right to Recover from Others Endorsement WC040306 attached to this policy.

ACORD 101 (2014/01) © 2014 ACORD CORPORATION. All rights reserved. 287
ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD C-246-2023

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
11/9/2022
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

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

PRODUCER
AssuredPartners Design Professionals Insurance Services, LLC 3697 Mt. Diablo Blvd Suite 230
Lafayette CA 94549
License#: 6003745

CONTACT
NAME: The Certificate Team
PHONE
(A/C, No, Ext): FAX
(A/C, No):

E-MAIL
ADDRESS: [email protected]
INSURER(S) AFFORDING COVERAGE NAIC #
INSURER A : XL Insurance America Inc
INSURED BPRCONS-01
BPR Consulting Group LLC
2201 Francisco Drive Suite 140-658
El Dorado Hills CA 95762
INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

COVERAGES CERTIFICATE NUMBER: 23946668 REVISION NUMBER:

INSR

LTR TYPE OF INSURANCE ADDL

INSD SUBRWVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $
CLAIMS-MADE OCCUR DAMAGE TO RENTED PREMISES (Ea occurrence) $ MED EXP (Any one person) $
PERSONAL & ADV INJURY $
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $

POLICY PRO- JECT LOC
OTHER:

PRODUCTS - COMP/OP AGG $
$
AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ (Ea accident) ANY AUTO BODILY INJURY (Per person) $
OWNED SCHEDULED BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS $ HIRED NON-OWNED PROPERTY DAMAGE
AUTOS ONLY AUTOS ONLY (Per accident)
$

UMBRELLA LIAB

EXCESS LIAB
OCCUR

CLAIMS-MADE
EACH OCCURRENCE $
AGGREGATE $
DED RETENTION $ $

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY Y / N
PER

STATUTE OTH- ER
ANYPROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ OFFICER/MEMBEREXCLUDED? N / A (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ A Professional Liability DPS9982535 8/16/2021 8/16/2024 Per Claim Aggregate Limit
$2,000,000
$2,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) RE: All Operations of the Named Insured
CERTIFICATE HOLDER CANCELLATION 30 Days Notice of Cancellation © 1988-2015 ACORD CORPORATION. All rights reserved.

City of South Lake Tahoe
Attn: Hilary Roverud, AICP
1052 Tata Lane
South Lake Tahoe CA 96150

AUTHORIZED REPRESENTATIVE

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
288
Created: 2023-11-29
By:

Status:

Transaction ID:

Michelle Davis ([email protected])
Signed
CBJCHBCAABAAlWRCqF7MeFHhMbEc-SGzhHTGnTzN9zfY
C-246-2023 PSA with BPR Consulting
Final Audit Report 2023-11-29
"C-246-2023 PSA with BPR Consulting" History
Document created by Michelle Davis ([email protected]) 2023-11-29 - 5:08:03 PM GMT
Document emailed to [email protected] for signature 2023-11-29 - 5:10:31 PM GMT
Email viewed by [email protected]
2023-11-29 - 6:03:45 PM GMT
Signer [email protected] entered name at signing as Cristi Creegan 2023-11-29 - 6:03:58 PM GMT
Document e-signed by Cristi Creegan ([email protected]) Signature Date: 2023-11-29 - 6:04:00 PM GMT - Time Source: server Document emailed to Sue Blankenship ([email protected]) for signature 2023-11-29 - 6:04:05 PM GMT
Email viewed by Sue Blankenship ([email protected]) 2023-11-29 - 6:10:35 PM GMT
Document e-signed by Sue Blankenship ([email protected]) Signature Date: 2023-11-29 - 6:10:51 PM GMT - Time Source: server Document emailed to Heather Stroud ([email protected]) for signature 2023-11-29 - 6:10:52 PM GMT
Email viewed by Heather Stroud ([email protected])
2023-11-29 - 6:17:17 PM GMT
Document e-signed by Heather Stroud ([email protected]) Signature Date: 2023-11-29 - 6:17:54 PM GMT - Time Source: server 289
Document emailed to Bill Rodgers ([email protected]) for signature 2023-11-29 - 6:17:56 PM GMT
Email viewed by Bill Rodgers ([email protected])
2023-11-29 - 8:20:39 PM GMT
Document e-signed by Bill Rodgers ([email protected]) Signature Date: 2023-11-29 - 8:20:59 PM GMT - Time Source: server Agreement completed.
2023-11-29 - 8:20:59 PM GMT
290
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: October 22, 2024
Agenda Item #:13
Agenda Item: Ordinance Increasing City Council Compensation (Second Reading) Executive Summary: City Council is eligible for an increase in compensation of up to 5 percent for each calendar year from the operative date of the last salary adjustment (January 23, 2023) following the November 5, 2024 election, when two Council members will begin new terms of office. The current City Council salary is $1,264.86, per month. If the suggested increase is approved, the City Council salary would be $1,394.49 beginning on January 23, 2025.

Requested Action / Suggested Motions: Pass an Ordinance increasing the City Council Compensation to $1,394.49 per month, effective January 23, 2025.

Responsible Staff Member: Susan Blankenship, City Clerk Reviewed and Approved By: Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - City Council Compensation.docx
02-Ordinance-City Council Compensation.pdf
03-Ordinance 2022-1169 City Council Compensation.pdf
04-City Council Comp ORD Public Notice.pdf
291
Council Agenda Report October 22, 2024 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: October 22, 2024
Title: Ordinance Increasing City Council Compensation (Second Reading) Location: Citywide
Responsible Staff Member: Susan Blankenship, City Clerk Background: The process for increasing City Council compensation is set forth by Sections 36516 and 36516.5 of the California Government Code, as amended by Senate Bill 329 (effective Jan. 1, 2024):

On September 24, 2024, City Council passed a motion to hold a first reading (by title only) and refer second reading and adoption to October 22, 2024.

Government Code Section 36516(a)(4)-(5); (g)(3) The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed an amount equal to the greater of 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted, or an amount equal to inflation since Jan. 1, 2024 which shall not exceed 10 percent per calendar year. No ordinance shall be enacted or amended to provide automatic future increases in salary. The proposed ordinance shall include findings demonstrating the need for the increased compensation.

Government Code Section 36516.5. A change in compensation does not apply to a council member during the council member’s term of office. This prohibition shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one or more members of the city council becomes eligible for a salary increase by virtue of the council member beginning a new term of office.

The last City Council compensation increase was a five percent increase approved by Ordinance No. 2022-1169 on November 1, 2022, with the effective date of January 23, 2023. The current City Council salary is $1,264.86 per month.

Issue and Discussion: Because inflation since January 1, 2024, was 3.025% on average, City Council is eligible for an increase in compensation of up to 5 percent for each calendar year from the operative date of the last salary adjustment following the November 5, 2024, election, when two Council members will begin new terms of office.
292
Council Agenda Report October 22, 2024 Page 2 of 2
The attached ordinance is drafted to increase compensation by five percent for each calendar year from the operative date of the last salary adjustment, which would increase the monthly City Council salary from $1,264.86 to $1,394.49 per month.

Any compensation increase would be effective January 23, 2025, 2 years from the date of the last compensation adjustment.

Financial Implications: The total cost increase for 2024/2025 is $7,685. A portion of this increase is included in the 2024-2025 budget and the additional $4,521 will need to be allocated from the undesignated general fund balance if approved.

Environmental Considerations: This action is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities such as personnel-related actions).

Policy Implications: An increase of City Council compensation is consistent with the California Government Code.
293
Ordinance 2024-XXX October 22, 2024 Page 1 of 2
Ordinance 2024-XXX
Adopted by the City of South Lake Tahoe
City Council
October 22, 2024
An Ordinance increasing City Council compensation to $1,394.49 per month (Replacing Ordinance 2022-1169)

FINDINGS
A. Compensation for members of the City Council shall be established by ordinance in accordance with provisions of Sections 36516 and 36516.5 of the California Government Code as amended by Senate Bill 329 (effective Jan. 1, 2024).

B. The salary of City Council members may be increased by an amount equal to five percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance is enacted.

C. The last City Council salary increase was a five percent increase, to $1,264.86 per month, approved by Ordinance 2022-1169 on November 1, 2022 (effective January 23, 2023).

D. In accordance with the Government Code, City Council desires to increase its salary by five percent for each calendar year from the operative date of the last adjustment in 2022, for a total of $1,394.49 effective after the next City Council election.

E. City Council finds that the proposed compensation increase is necessary because Council has not received an increase since January 23, 2023, and the cost of living has increased by

3.33% since then.

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

SECTION 1.

1. Each member of the city council shall receive as salary the sum of $1,394.49 per month. Such salary shall be payable at the same time and in the same manner as salaries are paid to other officers and employees.

2. The 2024-2025 adopted budget is revised and the allocation of undesignated general fund balance in the amount of $4,521 is authorized to cover this expense.

SECTION 2. This Ordinance shall become effective on January 23, 2025.

Adopted by the City of South Lake Tahoe City Council on October 22, 2024 by the following vote:

Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Cody Bass, Mayor
294
Ordinance 2024-XXX October 22, 2024 Page 2 of 2
Attest:
________________________
Susan Blankenship, City Clerk
First Reading: September 24, 2024
Published: September 27, 2024
Second Reading: October 22, 2024
Effective: January 23, 2025
295
Ordinance 2022-1169 November 1, 2022 Page 1 of 1
Ordinance 2022-1169
Adopted by the City of South Lake Tahoe
City Council
November 1, 2022
An Ordinance increasing City Council compensation to $1,264.86 per month Replacing Ordinance 2020- 1149)

FINDINGS
A. Compensation for members of the City Council shall be established by ordinance in accordance with provisions of Sections 36516 and 36516.5 of the California Government Code as such provisions now exist or may thereafter be amended.

C. The last City Council salary increase was a five percent increase, to $1,147.27 per month, approved by Ordinance 2020- 1149 on October 6, 2020 ( effective January 23, 2021).

D. In accordance with the Government Code, City Council desires to increase its salary by five percent for each calendar year from the operative date of the last adjustment in 2020, for a total of $1,264.86 effective after the next City Council election.

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

SECTION 1.

1. Each member of the city council shall receive as salary the sum of $1,264.86 per month. Such salary shall be payable at the same time and in the same manner as salaries are paid to other officers and employees.

2. The 2022- 2023 adopted budget is revised and the allocation of undesignated general fund balance in the amount of $5,715 is authorized to cover this expense.

SECTION 2. This Ordinance shall become effective on January 23, 2023.

Adopted by the City of South Lake Tahoe City Council on November 1, 2022 by the following vote:

Yes: Bass, Creegan, Friedrich, Middlebrook and Wallace
Date:_________
Devin Middlebrook, Mayor
Attest:

Susan Blankenship, City Clerk
First Reading: October 4, 2022
Published: October 7, 2022
Second Reading: November 1, 2022
Effective: January 23, 2023
Sue Blankenship ( Nov 2, 2022 11: 21 PDT)
Devin Middlebrook ( Nov 2, 2022 11: 25 PDT)
Nov 2, 2022
296
ORD 2022-1169 CC Compensation
Final Audit Report 2022- 11-02
Created: 2022- 11-02
By: jo Mcdonough ( jmcdonough@cityofslt. us)
Status: Signed
Transaction ID: CBJCHBCAABAAnCdtjct- 6Ih7pGHFpSclHmixFCNqn9IM ORD 2022-1169 CC Compensation" History
Document created by jo Mcdonough ([email protected]) 2022- 11- 02 - 5:49:17 PM GMT- IP address: 128. 92.136. 146 Document emailed to Sue Blankenship ([email protected]) for signature 2022- 11- 02 - 5:50:11 PM GMT
Email viewed by Sue Blankenship ( sblankenship@cityofslt. us) 2022- 11- 02 - 6:21:22 PM GMT- IP address: 128. 92.136. 146 Document e-signed by Sue Blankenship ([email protected]) Signature Date: 2022- 11-02 - 6:21:33 PM GMT - Time Source: server- IP address: 128. 92.136. 146 Document emailed to [email protected] for signature 2022- 11- 02 - 6:21:34 PM GMT
Email viewed by [email protected]
2022- 11- 02 - 6:25:26 PM GMT- IP address: 66.189. 255. 213 Signer [email protected] entered name at signing as Devin Middlebrook 2022- 11- 02 - 6:25:41 PM GMT- IP address: 66.189. 255. 213 Document e-signed by Devin Middlebrook ([email protected]) Signature Date: 2022- 11-02 - 6:25:43 PM GMT - Time Source: server- IP address: 66.189. 255. 213 Agreement completed.
2022- 11- 02 - 6:25:43 PM GMT
297
298
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: October 22, 2024
Agenda Item #:14
Agenda Item: Sugar Pine Village Affordable Housing Project Phase 1B - Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing
Executive Summary: Sugar Pine Housing Partners, L.P., a California limited partnership, (the â€œBorrowerâ€) has requested that the California Municipal Finance Authority (the â€œCMFAâ€) serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $35,000,000 of taxexempt revenue bonds. The City of South Lake Tahoe must conduct a public hearing (the â€œTEFRA Hearingâ€) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project.

Requested Action / Suggested Motions: Hold a public hearing and Pass a Resolution authorizing the issuance of revenue bonds in an amount not to exceed $35,000,000 by the California Municipal Finance Authority for the purpose of providing financing for a residential housing facility known as Sugar Pine Village Phase 1B.

Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Reviewed and Approved By: Zach Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - TEFRA Hearing Phase 1B.docx
02-Resolution - SPV Phase 1B TEFRA Hearing.docx
03 - Public Notice_SPV1B_TEFRA.pdf
299
Council Agenda Report October 22, 2024 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: October 22, 2024
Title: Sugar Pine Village Affordable Housing Project Phase 1B – Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing
Location: 1860 Lake Tahoe Boulevard and 1029 Tata Lane
Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Background: Currently under construction, Sugar Pine Village is a 248-unit affordable housing project, with onsite community service facilities on 11.6 acres of land owned by the State of California (State). This project is a result of the Governor’s Executive Order N-06-19, which directed the California Department of General Services (DGS) to identify excess state properties as potential affordable housing development sites. In July 2020, the State announced the State had selected Related Companies of California LLC (Related) in partnership with the St. Joseph Community Land Trust to construct and manage the Sugar Pine Village project.

Project financing and construction is being done in four phases. Phase 1A (68 units) and Phase 2A (60 units) are currently under construction. Site preparation and construction of the modular units for Phase 1A began in fall 2022 with expected move in October 2024 and site preparation for Phase 2A began in summer 2023. The two final phases, 1B and 2B, contain 60 units each.

Issue and Discussion: Sugar Pine Housing Partners, L.P., a California limited partnership, (the “Borrower”) has requested that the California Municipal Finance Authority (the “CMFA”) serve as the municipal issuer of the bonds in an aggregate principal amount not to exceed $35,000,000 of tax-exempt revenue bonds. The proceeds of the bonds will be used to finance the Project on Phase 1B and for the issuance of tax credits.

The Board of Directors of the California Foundation for Stronger Communities, a California nonprofit public benefit corporation located in Carlsbad, California (the “Foundation”), acts as the Board of Directors for the CMFA. Formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds, the CMFA was created on January 1, 2004 pursuant to a Joint Exercise of Powers Agreement. This agreement stipulates that the CMFA is a public entity, separate and apart from each member entity and that debts, liabilities and obligations of the CMFA do not constitute debt, liabilities or obligations of member entities. Furthermore, there are no costs associated with membership in the CMFA and the City is in no way exposed to any financial liability by reason of its membership in the CMFA. To date, over 330 municipalities, including the City of South Lake Tahoe, have become members of the CMFA which allows qualifying private projects within the City to be funded by bonds issued by the CMFA.

Under Section 147(f) of the U.S. Internal Revenue Code, in order for all or a portion of the bonds to qualify as tax-exempt bonds, the City of South Lake Tahoe must conduct a public hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of 300
Council Agenda Report October 22, 2024 Page 2 of 3
or against the use of tax-exempt bonds for the financing of the Project. Consistent with requirements for the TEFRA Hearing, public notice was provided to the members of the community. Following the close of the TEFRA Hearing, the City Council must vote on whether it approves issuance of the bonds for the financing of the Project.

Staff recommends the City Council adopt the resolution approving the issuance of the Bonds by the CMFA for the benefit of Sugar Pine Phase 1B Housing Partners L.P. to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following).

Financial Implications: The bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for repayment of the bonds for the financing of the Project. All financing documents with respect to the issuance of the bonds will contain clear disclaimers that the bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of South Lake Tahoe, it is expected that that a portion of the issuance fee attributable to the City will be granted by the CMFA to the general fund of the City. The payment to the City is estimated to be approximately $12,000-$15,000.

Environmental Considerations: For projects that satisfy criteria specified by SB 35, the guidelines issued by HCD specify that the California Environmental Quality Act (CEQA) does not apply to actions taken by a local government to provide financial assistance to a development that receives streamlined approval and that is to be used for housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code.

Policy Implications: The recommended action is consistent with the City Strategic Plan which identifies supporting the Sugar Pine Village Project as Action Item 1.3.2.

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

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

Policy 2-2 The City shall enable opportunities for deed-restricted affordable ownership housing to ensure long-term affordability.

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

Program 2-1 PURSUE STATE AND FEDERAL FUNDS
301
Council Agenda Report October 22, 2024 Page 3 of 3
To support the creation of quality, affordable housing options for extremely low-, very low-, and low-income households, the City shall seek and when appropriate and feasible pursue grant opportunities for state and federal funds.

Program 2-6 ANALYSIS OF FEDERAL AND STATE LANDS
The City shall continue discussing the potential for developing quality workforce and affordable housing on non-environmentally sensitive lands owned by the California Tahoe Conservancy (Conservancy) and the United States Forest Service (USFS). The City shall ensure that important natural resources are protected and only pursue surplus lands that these agencies have determined do not have a clear and compatible conservation or recreation purpose consistent with agency goals.

Tahoe Valley Area Plan
Policy H-1.1 – Housing Options
Provide for a range of housing options that include affordable, moderate-income, and workforce housing so that people can live and work in the City.

Policy H-1.5 – Redirection of Development
Direct high density residential development to areas of Tahoe Valley that are within walking distance of public transit and services.

Policy H-1.7 – Tahoe Livable Communities Program
Collaborate and support efforts of the California Tahoe Conservancy to remove blighted properties and repurpose associated development commodities. Encourage the use of residential commodities for affordable housing in Tahoe Valley area.

Policy H-2.1 – General
Encourage the creation of residential uses to support and add vitality to commercial and public service projects in the Tahoe Valley area.
302
RESOLUTION NO. 2024 - XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH LAKE

TAHOE APPROVING THE ISSUANCE OF THE CALIFORNIA

MUNICIPAL FINANCE AUTHORITY EXEMPT FACILITY BONDS FOR

A QUALIFIED RESIDENTIAL RENTAL PROJECT IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $35,000,000 FOR THE PURPOSE

OF FINANCING OR REFINANCING THE ACQUISITION,

CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF SUGAR PINE
VILLAGE PHASE 1B AND CERTAIN OTHER MATTERS RELATING

THERETO
WHEREAS, Sugar Pine Phase 1B Housing Partners, L.P. (the “Borrower”) a partnership of which The Related Companies (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $35,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 1860 Lake Tahoe Boulevard, South Lake Tahoe, California (the “Project”); and WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City of South Lake Tahoe (the “City”) because the Project is located within the territorial limits of the City; and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South Lake Tahoe as follows:

Section 1. The foregoing resolutions are true and correct.

Section 2. The City Council hereby approves the issuance of the Bonds by the Authority.

It is the purpose and intent of the City Council that this resolution constitute approval of the 303
issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.

Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

Section 6. This resolution shall take effect immediately upon its adoption.

PASSED, APPROVED and ADOPTED this 22nd day of October, 2024. ___________________________________

CODY BASS, MAYOR
ATTEST:
______________________________

SUSAN BLANKENSHIP

CITY CLERK
APPROVED AS TO FORM:
________________________________

HEATHER STROUD, CITY ATTORNEY
304
305
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: October 22, 2024
Agenda Item #:15
Agenda Item: Sugar Pine Village Affordable Housing Project Phase 1A - Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing for Supplemental Bonds Executive Summary: Sugar Pine Housing Partners, L.P., a California limited partnership, (the â€œBorrowerâ€) has requested that the California Municipal Finance Authority (the â€œCMFAâ€) serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $35,000,000 of taxexempt revenue bonds. The City of South Lake Tahoe must conduct a public hearing (the â€œTEFRA Hearingâ€) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project, Phase 1A.

Requested Action / Suggested Motions: Hold a public hearing and pass a Resolution authorizing the issuance of supplemental revenue bonds in an amount up to $35,000,000 by the California Municipal Finance Authority for the purpose of providing financing for a residential housing facility known as Sugar Pine Village Phase 1A.

Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Reviewed and Approved By: Zach Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - TEFRA SPV Phase 1A.docx
02-Resolution Phase 1A SPV TEFRA.docx
03 - Public Notice SPV Phase 1A_TEFRA.pdf
306
Council Agenda Report October 22, 2024 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: October 22, 2024
Title: Sugar Pine Village Affordable Housing Project 1A – Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing
Location: 1860 Lake Tahoe Boulevard and 1029 Tata Lane
Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Background: Currently under construction, Sugar Pine Village is a 248-unit affordable housing project, with onsite community service facilities on 11.6 acres of land owned by the State of California (State). This project is a result of the Governor’s Executive Order N-06-19, which directed the California Department of General Services (DGS) to identify excess state properties as potential affordable housing development sites. In July 2020, the State announced the State had selected Related Companies of California LLC (Related) in partnership with the St. Joseph Community Land Trust to construct and manage the Sugar Pine Village project.

On April 5, 2022, the City Council held a TEFRA public hearing and adopted Resolution No. 2022- 039 authorizing the California Municipal Finance Authority (the “CMFA”) issue tax-exempt revenue bonds for Sugar Pine Village Phase 1A in an aggregate principal amount not to exceed $35,000,000. CMFA ended up issuing approximately $26 million in bonds. At this time, Phase 1A requires another TEFRA hearing for a supplemental bond issuance to convert some of the debt in the project to equity. For projects like this one that use a federal four percent tax credit, federal law requires proof that at least 50 percent of the bond proceeds are used for the eligible basis.

Because of high interest rates, Phase 1A did not meet this requirement, so a supplemental bond issuance is needed to convert some of the debt. While CMFA requested authority up to $35,000,000, it is anticipated that approximately $1.5 million of supplemental bonds will be issued.

Issue and Discussion: Sugar Pine Housing Partners, L.P., a California limited partnership, (the “Borrower”) has requested that the CMFA serve as the municipal issuer of the bonds in an aggregate principal amount not to exceed $35,000,000 of tax-exempt revenue bonds. The proceeds of the Bonds will be used to: (1) finance or refinance the acquisition, construction, improvement and equipping of Sugar Pine Village Phase 1A, a multifamily rental housing project located at 1860 Lake Tahoe Boulevard and 1029 Tata Lane, South Lake Tahoe, California; and (2) pay certain expenses incurred in connection with the issuance of the Bonds. The facilities are to be owned by Sugar Pine Housing Partners, L.P., a California limited partnership (the “Borrower”) or a partnership of which The Related Companies (the “Developer”) or a related person to the Developer is the general partner.
307
Council Agenda Report October 22, 2024 Page 2 of 3
The Board of Directors of the California Foundation for Stronger Communities, a California nonprofit public benefit corporation located in Carlsbad, California (the “Foundation”), acts as the Board of Directors for the CMFA. Formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds, the CMFA was created on January 1, 2004 pursuant to a Joint Exercise of Powers Agreement. This agreement stipulates that the CMFA is a public entity, separate and apart from each member entity and that debts, liabilities and obligations of the CMFA do not constitute debt, liabilities or obligations of member entities. Furthermore, there are no costs associated with membership in the CMFA and the City is in no way exposed to any financial liability by reason of its membership in the CMFA. To date, over 330 municipalities, including the City of South Lake Tahoe, have become members of the CMFA which allows qualifying private projects within the City to be funded by bonds issued by the CMFA.

Under Section 147(f) of the U.S. Internal Revenue Code, in order for all or a portion of the bonds to qualify as tax-exempt bonds, the City of South Lake Tahoe must conduct a public hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Consistent with requirements for the TEFRA Hearing, public notice was provided to the members of the community. Following the close of the TEFRA Hearing, the City Council must vote on whether it approves issuance of the bonds for the financing of the Project.

Staff recommends the City Council adopt the resolution approving the issuance of the Bonds by the CMFA for the benefit of Sugar Pine Housing Partners L.P. to provide for the financing of the Project Phase 1A, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following).

Policy Implications: The recommended action is consistent with the City Strategic Plan which identifies supporting the Sugar Pine Village Project as Action Item 1.3.2.

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

City General Plan Housing Element
308
Council Agenda Report October 22, 2024 Page 3 of 3
Policy 1-1 The City shall adopt programs, ordinances, incentives, land use plans and other regulatory mechanisms that provide opportunities for the private sector to address the housing needs of citizens of all economic levels.

Policy 2-2 The City shall enable opportunities for deed-restricted affordable ownership housing to ensure long-term affordability.

Program 2-1 PURSUE STATE AND FEDERAL FUNDS
To support the creation of quality, affordable housing options for extremely low-, very low-, and low-income households, the City shall seek and when appropriate and feasible pursue grant opportunities for state and federal funds.

Policy H-1.5 – Redirection of Development
Direct high density residential development to areas of Tahoe Valley that are within walking distance of public transit and services.

Policy H-2.1 – General
Encourage the creation of residential uses to support and add vitality to commercial and public service projects in the Tahoe Valley area.
309
RESOLUTION NO. 2024 - XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH LAKE

TAHOE APPROVING THE ISSUANCE OF THE CALIFORNIA

MUNICIPAL FINANCE AUTHORITY EXEMPT FACILITY BONDS FOR

A QUALIFIED RESIDENTIAL RENTAL PROJECT IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $35,000,000 FOR THE

PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION,

CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF SUGAR PINE
VILLAGE PHASE 1A AND CERTAIN OTHER MATTERS RELATING

THERETO
WHEREAS, Sugar Pine Housing Partners, L.P., a California limited partnership (the “Borrower”) a partnership of which The Related Companies (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $35,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 1860 Lake Tahoe Boulevard and 1029 Tata Lane, South Lake Tahoe, California (the “Project”); and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City of South Lake Tahoe (the “City”) because the Project is located within the territorial limits of the City; and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South Lake Tahoe as follows:

Section 1. The foregoing resolutions are true and correct. 310
2 Section 2. The City Council hereby approves the issuance of the Bonds by the Authority.

It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

Section 6. This resolution shall take effect immediately upon its adoption.

PASSED, APPROVED and ADOPTED this 22nd day of October, 2024. ___________________________________

CODY BASS, MAYOR
ATTEST:
______________________________

SUSAN BLANKENSHIP

CITY CLERK
APPROVED AS TO FORM:
________________________________

HEATHER STROUD, CITY ATTORNEY
311
312
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: October 22, 2024
Agenda Item #:16
Agenda Item: Design Build Contract with Willdan Energy Solutions for Energy Upgrades at City Facilities
Executive Summary: Under the recommended Energy Upgrades Project contract, the City would engage in a design-build contract for energy upgrade measures across numerous municipal facilities with Willdan Energy Solutions (WES). Proposed measures include: Building Automation Systems and Recommissioning; Pelican Integrations; High Efficiency Transformers; Parking Canopy Solar at Motor Pool; Parking Canopy Solar the Police Department; Ice Arena Roof Replacement; Ice Arena Chiller Replacement; Ice Arena Microturbine Refurbishment and Relocation; and Water Meter Downsizing. The project will commence under a not-to-exceed amount of $11,414,389 (which includes $2,000,000 in grant funding from the Affordable Housing and Sustainable Communities grant program toward the Solar at Motor Pool measure), contingent upon approval of a financing plan currently on the agenda for November 5. Should the City choose not to fund the project, staff recommends entering into the contract for the investment grade audit only, at $213,740.

Requested Action / Suggested Motions: City Council is asked to either: (1) Pass a Resolution authorizing and directing the Mayor to execute a design-build contract with Willdan Energy Solutions in an amount not to exceed $11,414,389, contingent upon the City obtaining financing for the project, and finding that the cost of the project will be offset by the anticipated savings in energy consumption; or (2) Pass a Resolution appropriating $213,740 to compensate Willdan Energy Solutions for an Investment Grade Audit report.

Responsible Staff Member: Sara Letton, Sustainability Coordinator, Ricky Riddle, Construction Projects Manager, and Anush Nejad, Public Works Director Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney
Attachments:
01 - Staff Report Municipal Energy Upgrades Project 10.14.24.docx 02 - Resolution - Willdan Design Build Contract.docx
03 - Resolution for IGA.docx
04 - Design-Build Energy Upgrades Project Contract.pdf
05 - Public Notice.docx
06 - Energy Upgrades Project.pptx
313
1 Council Agenda Report- October 22, 2024
City of South Lake Tahoe
Report to City Council
Meeting Date: October 22, 2024
Title: Energy Upgrades Project Contract
Location: “Citywide”
Responsible Staff Member: Sara Letton (530) 542-6175
Ricky Riddle (530) 542-6027
Anush Nejad (530) 542-6031
Background: The City of South Lake Tahoe has numerous old, outdated, and inefficient facilities with relatively high energy bills, as well as ambitious greenhouse gas emissions reduction goals (see Policy Implications). City Staff identified 19 City facilities for consideration in an energy upgrades Project that will save the City money in the long term.

The overall conditions of 52 City facilities were documented in 2022’s Facilities Conditions Assessment (FCA) identifying over $48,000,000 in maintenance needs over the next 10 years.

Many of the projects identified in the FCA are sustainability and/or energy related.

The Five-Year Capital Improvement Plan presented to Council on August 27, 2024 identified unfunded Citywide Sustainability and Energy Upgrade Projects needs at an estimated $12,340,103 which included telemetry based controls (also described as building automation systems); Ice Arena Sustainability Project; and Corp Yard (also referred to as the Motor Pool) Solar Project which has secured $2 million in grant funding from the Affordable Housing and Sustainable Communities grant program; and other measures.

Reducing wastefulness and increasing efficiency is always the best first step in decarbonizing existing buildings. The City of South Lake Tahoe has published Greenhouse Gas Inventories in 2015, 2018 and 2021 showing communitywide and government operations emissions. In 2021, the buildings & facilities sector represented 45% of the City of South Lake Tahoe government operations greenhouse gas emissions1. Therefore, the City’s buildings & facilities pose an opportunity to drive down government operations emissions by developing energy conservation, cogeneration, and alternate energy supply sources. Implementing an energy upgrades project 1 https://www.cityofslt.us/DocumentCenter/View/18861/City-of-South-Lake-Tahoe-2021-GHG-Inventory-Update 314
2 Council Agenda Report- October 22, 2024
demonstrates alignment of city goals, values, and resources, while serving as a model to other large institutions in the city looking to decarbonize in a cost-effective manner in pursuit of communitywide greenhouse gas reduction goals. Paired with significant electricity cost increases, energy generation projects prove to be both environmentally and fiscally sound investments.

Issue and Discussion: City Staff engaged the design-build procurement code and deployed the two-step process involving a prequalification and then an RFP 20230606. The RFP was issued June 27, 2023. The Facilities Conditions Assessment (FCA) and the ADA Transition Plan were provided to all firms for context and to avoid redundant work. Five firms were cleared to submit proposals after the prequalification process. Willdan Energy Solutions was selected after a rigorous review of the four proposals that were submitted in response to the RFP and interviews, with Willdan scoring highest. Highlighted qualities of Willdan include significant experience implementing projects in cold, snowy resort communities; local staff who understand our community and climate; and excellent references from other California agency staff who have engaged Willdan’s services.

Willdan closely inspected City facilities and parks and presented 22 different potential energy upgrade measures. The measures were then considered in four packages with their costs, utility savings, greenhouse gas reductions, and payback periods. Staff considered these aspects, as well as various potential types of technology, financing terms, available grants, capital contributions, project implementation timelines, risk of critical infrastructure failures, staff skill and capacity, operations & maintenance costs, and overall value.

Staff shortlisted and now recommend the following upgrade measures as part of the Project:
 Building Automation Systems and Recommissioning;
 Pelican Thermostat Integrations;
 High Efficiency Transformer Upgrades;
 Parking Canopy Solar at Motor Pool;
 Parking Canopy Solar the Police Department;
 Ice Arena Roof Replacement;
 Ice Arena Chiller Replacement;
 Ice Arena Microturbine Refurbishment and Relocation
 Water Meter Downsizing
The process of an investment grade audit of city facilities identifies baseline energy usage, and then identifies the improvements to facilities (“measures”) that can save money, energy and emissions. This audit must be performed with enough specificity that the estimated energy savings are so likely that the energy services company guarantees savings on energy use. Energy use is measured and verified under a Measurement and Verification (‘M&V’) contract. Should original total energy savings not be met, Willdan will reimburse the City for the cost difference and work to bring the project up to those original estimated savings. The cost of the investment grade audit portion of the Project includes a particularly complex ice arena whose appliances are nearing end of life. If Council does not move to award and/or finance the contract for implementation of recommended upgrades, Willdan’s Investment Grade Audit Report will cost 315
3 Council Agenda Report- October 22, 2024
$213,740, and is considered by staff to be a great value for the in depth analysis of the facilities and recommended upgrades.

With Council approval today, the contract with Willdan Energy Solutions will be contingent upon securing financing after Council approval later this fall.

Willdan scope of services will include final design, construction, and providing As-builts for all upgrades. The final plans will go through rigorous design review and permitting process. Willdan will be responsible for processing all applicable permits and plan checks including but not Limited to: City building department, TRPA, Liberty Utilities, Southwest Gas, CSLT Public Works Department. Wildan will also be responsible for sub-contractor management, project scheduling, testing and commissioning of all installed equipment and improvements related to this project.

California Government Code Sections 4217.10 to 4217.18 allow public agencies to develop energy conservation, cogeneration, and alternate energy supply sources projects if the governing body determines in a public hearing that it is in the best interests of the city, and if certain findings are made. The project has been evaluated and shown to meet the requirements of Government Code Sections 4217.10 to 4218. This meeting is the Public Hearing, in accordance with the Government Code section 4217.12 making formal findings that the cost of the project will be offset by the anticipated savings in energy consumptions and authorizes the City Manager to execute the Energy Services Master Agreement and related documents with Willdan, should the council chooses this option.

It is important to note that not all energy-related or other needs of the City facilities that were evaluated were recommended for inclusion in this Project at this time. Measures that were identified that will need alternative funding include: boiler replacements at Explore Tahoe (which provide energy-intensive sidewalk ice melting in the area nearby) and boiler Replacements at the Bellamy Parking Garage (which provides energy-intensive ice melting in the top story). Additional work at the Ice Arena should be performed while operations are shut down for energy upgrades measures currently identified in this Project, so that additional shut downs are not needed and don’t interrupt services/leagues. Staff have also identified grading and repaving needs at Police Department and Motor Pool to address ponding issues, and anticipate the unknown repair needs that will be revealed when the ice is melted for the first time in the Ice Arena’s 23-year life, for which a contingency of 5% of the total scope will be allocated in the budget appropriations.

Financial Implications:

Staff have conducted an independent review of Willdan’s estimated costs in order to verify the cost competitiveness of the not to exceed amount. Staff note that the proposed measures are particularly complex and necessitate highly skilled consulting engineers. In contrast, some measures that were considered initially were taken out of consideration because City Staff determined them straightforward enough to take on, thus avoiding consultant markups and saving the City money. In sum, Staff have determined that the proposed measures and cost estimates provide good value to the City.
316
4 Council Agenda Report- October 22, 2024
Part of the net savings calculations include a savings to the City in Operations and Maintenance (‘O&M’). When facilities, including such things as roofs and appliances, are past their useful life then the staff time and costs of repair go up significantly. Staff have estimated that this Project will save a significant amount of staff time and maintenance costs due to the installation of new equipment that is easier and cheaper to maintain. Additional savings come from the Project bringing our facilities management into the 21st century with building automation controls, allowing Staff to monitor appliances and energy use, program alarms for malfunctions, and reduce overall energy usage because it will be monitored online rather than visiting buildings in person allowing staff to fix things and optimize usage earlier.

The total contract cost will be for a not-to-exceed amount of $11,414,389 (See Table 1). The Public Works Department recommended a 5% City-controlled contingency on top of the contract amount, for a total required appropriations to award this contract of $11,985,108. Additional cost for Labor Compliance is between $15K and $20k and will be absorbed by the existing budget appropriations. The City anticipates to receive federal rebates and incentives estimated at approximately $1 Million which will be used to pay down the principal amount of the bank loan the City is looking to obtain to finance the project. Additionally, $2 Million in grant funding has already been secured toward the Motor Pool Solar measure. Staff is proposing to allocate approximately $2,000,000 from the General Fund towards the total cost of the contract and secure a bank loan/equipment lease financing for approximately $8.7 million with a total financing cost of approximately $12.5 million. The total savings from the project over 35 years is estimated at over $40 Million (includes $2 Million in Operations & Maintenance and meter savings)., for a Net Cost Savings to the City of over $28 Million over a 35-year period.

Table 1.

Project Scopes of Work Cost Utility
Savings
Maint.

Savings
Total
Savings
Incentives
& Grants
GHG
Reductio
n
Paybac
k
Building Automation
Systems/Retrocommissionin
g/Boiler Engineering
$553,896 $30,693
$30,000
$60,693 40.9 9.10
Pelican Controller
Integrations
$41,925 0
High Efficiency Transformers $186,353 $7,904 $1,000 $8,904 5.4 20.90 Motor Pool Solar PV -
250kW
$2,564,726 $69,056 $- $69,056 58.4 5.80
Police Department Solar PV
- 180kW
$2,769,062 $92,377 $92,377 77 26.00
Ice Arena Roof
Replacement/Insulation
$333,115 $10,336 $10,000 $20,336 18 16.40
Ice Arena Microturbine
Refurb & Relocation
$526,952 $87,370 $87,370 0 6.00
Ice Arena Central Plant
Replacement
$4,381,454 $18,969 $5,000 $23,969 20.7
317
5 Council Agenda Report- October 22, 2024
Water Meter Downsizing $56,906 $20,641 $20,641 2.80
Grants (Direct to City of
South Lake Tahoe)
$2,000,000
Incentives, Rebates, Credits
(Post-construction)*
$991,207
Totals $11,414,389 $316,705 $66,641 $383,346 $2,991,207 220.34 21.97 *Willdan incentives/rebate/deductions are not guaranteed and subject to 3rd party review for tax filings. What is shown is potential maximum.

The City staff has explored several financing options for this project, and, with the assistance of the City’s municipal financial advisor, PFM, concluded that a private placement with an investor/bank for a loan will provide flexible financing options without the need to encumber City assets. On September 25, 2024, the City’s placement agent, Oppenheimer, released an RFP on behalf of the City to solicit bids to provide financing for the energy upgrade projects. The bid period closed on October 9th . The RFP was released to over twelve banks and seven bids were received which is considered a strong response. Bank of America submitted the lowest bid at a rate of 4.055% for a 15-year term and 4.208% for a 20-year term financing. Additionally, BOA’s proposed financing is structured as appropriation lease vs. abatement lease. With the appropriation lease, the City will not have to use its assets as the collateral for the financing. Staff and the City’s placement agent are currently in further negotiations with BOA for slightly more favorable terms. The financing item will be brought to City Council as a public hearing for consideration and approval on November 5th.

The contract includes a Measurement and Verification (M&V) section. This describes how energy savings will be measured and verified to prove to the City that savings have been attained as originally estimated. The energy cost savings is estimated based on calculated kwh and therm savings, from a baseline established during the investment grade audit process, and then a projected escalation rate is applied in order to estimate future cost savings. This is a conservative estimate based on research, but is not guaranteed because no one can predict future utility rates perfectly. Willdan’s research for this project applies an escalation rate of 12% a year for the next five years and then 8% a year until year 35. Performing M&V is costly, however, so three years of M&V is standard and considered enough time to show that the energy savings are being realized by the various appliances and technology implemented, and staff are trained in operations and maintenance. More years can be added later if desired. With solar panels continuing to produce energy to year 35, and energy rates estimated to go up substantially, savings in this project are substantial from those measures in particular. Should the actual total energy savings not be demonstrated during M&V, Willdan guarantees to compensate the City for the difference.

Willdan’s track record for this provision being triggered is <1% nationally across their Performance Contracts.

The fiscal impact will be net positive as the cost of the project will be offset by the anticipated savings in energy consumption, as required by California Government Code 4217. The estimated 318
6 Council Agenda Report- October 22, 2024
savings over the recommended 15-year debt repayment period is approximately $1.5 million, and the estimated savings over the thirty-five-year expected life of the solar panels is estimated at over $28 million. It must be noted, however, that there is no guarantee that these savings will be realized in the timing and amounts as projected by Willdan, and regardless of whether any such savings come to fruition, the City would be obligated to make payments to the lending bank in the amounts and on the dates per the agreement that will be considered at November 5th meeting.

Environmental Considerations: Subject to exemption from CEQA: The proposed project is categorically exempt from environmental review under CEQA Guidelines Section 15301, Existing Facilities, which exempts "the operation repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use" including "restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety, unless it is determined that the damage was substantial and resulted from an environmental hazard such as earthquake, landslide, or flood."
Policy Implications:

Resolution 2022-088:
 “A science-based target for absolute greenhouse gas emission reduction of 59.2% from our 2018 total greenhouse gas emissions inventory level. This means achieving a reduction of 155,795 MTCO2e by 2030, and community-wide zero net carbon by 2045 or before.” o This Project estimates an annual savings of 220MTCO2e, which is about a 14% reduction in the Government Operations Buildings and Facilities sector total from the 2021 Greenhouse Gas Inventory Report.

Resolution 2017-26:
 “The City will also endeavor to adopt policies to encourage 100% renewable energy for municipal operations by 2032, including 50% municipal renewable energy by 2025.” o Liberty Utilities will provide a renewable portfolio of somewhere between 76 – 84% by 2030, which is well ahead of state mandates. In addition to that, the City already has a 300.8kW solar system at the Airport/City Hall. This project will add 414kW of solar production to the City’s portfolio, offsetting most but not all energy used at Police and Motor Pool.
 “The City of South Lake Tahoe will strive toward the reduction of community greenhouse gas emissions by at least 80% by 2040, including a reduction of at least 50% by 2030.” o This Project estimates an annual savings of 220MTCO2e, which is about a 14% reduction in the Government Operations Buildings and Facilities sector total from the 2021 Greenhouse Gas Inventory Report.

Resolution 2021-104:
 “The City Council of South Lake Tahoe aspires to a community-wide goal of achieving 100 renewable electricity, 24 hours a day, 7 days a week, from carbon-free sources, connected to the local distribution grid by 2030.”
o This Project will add 414kW of solar production to the City’s portfolio, offsetting most but not all energy used at Police and Motor Pool. The systems will be grid connected, selling excess back to the grid during the day and drawing grid energy at 319
7 Council Agenda Report- October 22, 2024
night. Batteries were considered and deemed cost prohibitive in our electrical rate and tariff structure.
 “Aspires to the goals set forth in the South Tahoe Zero Energy District plan to create a clean, resilient affordable, efficient, and equitable electricity system, which includes maximum electrification of transportation, heating and other sectors; models state-of-the-art energy efficiency, electrification, energy management systems, time of use strategies, distributed renewable energy, energy storage systems, and clean energy microgrid solutions; and saves money for local residents, ratepayers and public institutions through customer-owned projects.”
o This Project installs two solar systems (distributed renewable energy, referenced above), installs building automation systems (energy management systems, referenced above), models state-of-the art energy efficiency in several measures, and saves a tremendous amount of money in the long run for the City to invest in other projects.

Strategic Plan, 2023 – 2028:
 1.5 Carbon Neutrality and Grid Reliability: “Implement a variety of projects to reach the City’s 100% renewable energy and Climate Action Plan goals, eventually achieving carbon neutrality.” Initiatives include, but are not limited to, power City facilities and fleet with renewable energy. Action Item 2: “Work with community partners to achieve 50% local, renewable energy for all entities and install a robust fleet and public EV charging network by 2025.”
o The Solar Canopies at Motor Pool and Police Department will offset greenhouse gas pollution for their 35-year life while offsetting electricity bills and saving the City millions of dollars that it can use to invest in other things. These canopies will ensure vehicles are quickly accessible during snow events. This also saves staff time. In the warmer months, these canopies will keep vehicles shaded, extending the life of tires, hoses, etc.
 2.1 Parks and Recreation Master Planning: Enhance the quality and quantity of Parks and Recreation opportunities for residents and visitors while prioritizing construction of parks, recreation facilities and trails so support and maximize the highest community benefit that provides access for all.
o The approach with the Ice Arena is well planned, well engineered, and takes a holistic approach in order to save money.
 5.2 Digital Government: Use modern technology to do more work digitally in order to improve efficiency and access to services.
o Building Automation Systems, with Pelican Integrations, will bring facilities management into the 21st century, saving on utility bills as well as staff and maintenance costs.
 5.3 Infrastructure & Maintenance: Ensure the City has sustainable funding sources to properly maintain infrastructure including roads, snow removal, facilities, recreation sites and trails.
o The Ice Arena measures keep that facility open and high functioning. Waiting to implement that project risks catastrophic failure at an inconvenient time and potentially indefinite closure and collapse of hockey leagues, contracts, etc. It risks addressing the failure with a like for like system that is less efficient, thereby getting poor value. This project is innovative, using a microturbine that has been defunct for 320
8 Council Agenda Report- October 22, 2024
years and gets it back into working order. It utilizes waste heat to the most efficient level possible. There will be a significant staff time and maintenance savings.

Climate Action Plan (2020):
 Strategy 9: Existing Buildings (EB) – Improve energy efficiency in existing buildings through weatherization, deep energy retrofits, and building electrification. o EB – 1: Implement robust energy audit and retrofit programs.  Actions call out residential programs. In this initiative being proposed, the City is demonstrating its commitment by working to implement an investment grade audit and resulting measures on its own building stock to demonstrate integrity to the Plan.
 Strategy 10: Renewable Energy (RE) – Increase renewable energy and storage throughout the community.
o RE – 2: Pursue community solar and distributed energy systems.  Action: “Explore options for the feasibility of increasing local solar energy production and distributed renewable energy while using energy storage systems.”
 This project installs an additional 414kW of solar production at City Facilities. The project team considered energy storage systems but return on investment is not attractive in our utility area and climate at this time.
321
Resolution 2024-XXX October 22, 2024 Page 1 of 3
Resolution 2024-XXX
Adopted by the City of South Lake Tahoe
City Council
October 22, 2024
Approval of Findings for Government Code Section 4217.10 – 4217.18, Approval of Energy Savings Contract Between City of South Lake Tahoe “City” and Willdan Energy Solutions, Inc., For the Implementation of Facility Improvements, Energy Conservation, Energy Generation and/or Energy Management Services and Appropriation of Funds for the Project Upon Successful Closing of Financing

BACKGROUND
A. The City Council (“Council”) has identified sustainable fiscal health as a strategic priority for the city , and both energy efficiency and renewable energy generation improvements projects support sustainable fiscal health. Based on an analysis of energy efficiency savings and capabilities and their qualifications and references as to be “Best Value”, the City has selected Willdan Energy Solutions, Inc. (“WES”); and
B. City staff worked with WES to identify a comprehensive project scope for an energy conservation project which includes energy efficiency improvements and solar photovoltaic power generation at two city sites; and
C. In compliance with California Government Code 4217.10 – 4217.18, City staff selected WES from the pool of qualified energy service companies established pursuant to Section 388 of the Public Utilities Code and the procedures contained in that section in awarding the contract; and
D. The City Council has received and reviewed information and data presented by City Staff demonstrating that the cost to the City for the proposed energy conservation and renewable generation project in the Energy Savings Contract will be less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the city in the absence of the project; and
E. In order to maximize the cost savings from the energy project, the City desires to improve the facility energy efficiency at specified sites.

F. The total not-to-exceed amount of the contract with Willdan is $11,414,389. Staff recommends a City-controlled project contingency of 5% in the amount of $570,719, for a total estimated project cost of $11,985,108.

G. To Fund this project, staff has received approximately $2,000,000 in AHSC grant, proposes to contribute $2,000,000 from the General Fund Undesignated Excess Reserves, and finance 322
Resolution 2024-XXX October 22, 2024 Page 2 of 3
the remaining amount using a bank loan/equipment lease financing in the principal amount of approximately $8,700,000, including capitalized interest cost and the cost of issuance.

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

1. The City Council makes the formal findings that the cost of the project will be offset by the anticipated savings in energy consumption.

2. Appropriates the anticipated bank loan lease financing proceeds upon successful closing of financing into the project account in the amount not to exceed a total of $11,985,108: Bank Loan Equipment Lease Financing of up to $8,700,000 and General Fund Undesignated Excess Reserves in the amount of up to $2,000,000. All amounts are subject to true-up on or around November 5, 2024 at the time of financing approval. AHSC Grant funding of $2,000,000 has been previously appropriated by Resolution 2023-058.

3. After successful closing of financing, approves to transfer said funds into the project fund (301-60085) to award the Energy Savings Contract and provide project contingency.

From Fund: Source Amount
30160085-36330 Equipment Lease Financing
Proceeds(est.)
(-) up to $8,700,000
30160085-36300 General Fund Undesignated Excess
Reserves
(-) up to $2,000,000
30160081-33244 AHSC Grant (previously appropriated) (-) up to $2,000,000 Total Not to Exceed (-) $11,985,108
To Fund: Task Amount
30160085-48030 Construction (+) $9,414,389
30160081-48030 Construction (AHSC funded solar panel,
previously appropriated)
(+) $2,000,000
30160085-48032 Contingency (+) $570,719
Total (+) $11,985,108
Account: Description Amount
401-01910-
36406
Proceeds from Bank Loan Equipment
Lease Financing (est.)
(-) up to $8,700,000
Account: Description Amount
401-01910-
47040
Financing Issuance Cost Tbd
401-01910-
50014
Transfer out to City CIP (project) (+) up to $8,700,000 323
Resolution 2024-XXX October 22, 2024 Page 3 of 3

4. Authorizes and directs the Mayor to execute the Energy Savings Contract with WES in the not to exceed amount of $11,414,389 with City-held 5% contingency in the amount of $570,719, upon the obtaining of financing for the project, and approving related documents.

Adopted by the City of South Lake Tahoe City Council on October 22, 2024 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Cody Bass, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
324
Resolution 2024-XXX October 22, 2024 Page 1 of 2
Resolution 2024-XXX
Adopted by the City of South Lake Tahoe
City Council
October 22, 2024
Appropriation of Funds for the Completion of an Investment Grade Audit at Multiple City Facilities

BACKGROUND
A. The City of South Lake Tahoe Department of Public Works solicited proposals for DesignBuild Energy Services, per a two-step process as described in city code 3.45.165.

B. Upon evaluation of the proposals, the Department of Public Works recommends awarding to Willdan Energy Solutions, of Anaheim, CA.

C. The Investment Grade Audit Report (IGA) includes an in-depth analysis of the financial aspects of energy savings and the return on investment from potential changes or upgrades to City facilities that are in alignment with resiliency and climate goals, while addressing core infrastructure needs and considering how each measure may improve the ability of the facility and staff to provide necessary services. This set of documents is the culmination of a lot of work and thought by City staff and Willdan and would need to be repeated if the documents are not procured from Willdan.

D. The City of South Lake Tahoe desires to receive the IGA and not engage in implementation of identified energy upgrade measures.

E. The IGA fee $213,740 will be due to Willdan Energy Solutions upon successful completion and submittal of an Investment Grade Audit report.

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

1. Appropriates funds for the payment to Willdan upon receipt of the Investment Grade Audit report in the amount of $213,740.

2. Amends FY 2024-2025 budget appropriating $213,740 into Sustainable South Lake Tahoe account 100-01967-42020 Professional Services.

Adopted by the City of South Lake Tahoe City Council on October 22, 2024 by the following vote:

Yes:

No:

Absent:
325
Resolution 2024-XXX October 22, 2024 Page 2 of 2
Abstain:
________________________ Date:_________
Cody Bass, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
326

ENERGY SAVINGS DESIGN-BUILD CONTRACT
This Energy Savings Design-Build Contract (together with its attached Schedules and Exhibits, the “Contract”) is made and entered into as of this ___ day of _________ 2024, (the “Effective Date”), between Willdan Energy Solutions, a California corporation with California state contractor’s license number 1065713 (“WES”), and the City of South Lake Tahoe, a California municipal corporation (“Customer”). Each of WES and Customer may be referred to in this Contract as a “Party” and collectively as the “Parties.”
The purpose of this Contract is for WES to perform an investment grade audit (an “IGA”) of the Customer’s property and buildings (the “Premises”); the IGA will form the basis for the design of energy-savings efficiency measures, or other operating cost saving measures and equipment, as well as energy generation measures, as described in Schedule A (Scope of Work), with respect to the Premises, and also for estimated program costs and overall potential energy consumption savings. The Contract will also set forth the terms and conditions under which WES will construct the energy-savings efficiency measures, or other operating cost saving measures and equipment, as well as energy generation measures, all of which will be designed to save energy or other operating costs at the Premises (collectively, the “Project”).

RECITALS
WHEREAS, Customer owns and operates the Premises, and desires energy-saving equipment and services designed to reduce energy consumption and costs for the Premises, as well as improve energy quality and reliability for the Premises;
WHEREAS, WES has made a preliminary assessment of the energy consumption characteristics of the Premises, and the existing equipment;
WHEREAS, Customer now desires to retain WES to design energy efficiency measures as well as energy generation measures, and in compliance with California Government Code §§4217.10 through 4217.18 and §§22160 through 22169, to design, engineer, procure, construct, install, and commission such energy efficiency measures and energy generation measures[, and/or fee-producing infrastructure facilities], all as described in Schedule A (Scope of Work), attached hereto and made a part hereof, as well as to provide other services for the purpose of achieving energy, and operational savings for the Premises, as more fully set forth herein;
WHEREAS, by adoption of Resolution No. 2024-___ at the City Council meeting on October 22, 2024, Customer approved this Contract and authorized its execution contingent on financing; and WHEREAS, Customer is authorized under the laws of the State of California to enter into this Contract for the purposes set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and intending to be legally bound hereby, Customer and WES hereto covenant and agree as follows:

SECTION 1 CONTRACT DOCUMENTS
Section 1.1. The Contract Documents (hereinafter, “Contract Documents”) consist of this Contract; other documents listed in Section 1.3 of this Contract; current version of the City of South Lake Tahoe Standard Specifications and City of South Lake Tahoe Public Improvement and Engineering Standards (“PIES”), and Notices to Proceed and Change Orders issued after execution of this Contract. A “Change Order” is a written amendment to the Contract signed by both Parties.

Section 1.2. The Contract Documents represent the entire and integrated agreement between the Parties and supersede prior negotiations, representations, or agreements, either written or oral. The Contract may be amended or modified only by a Change Order. The Contract Documents shall not be construed to create a contractual relationship of any kind between any persons or entities other than the Customer and WES.
327
Section 1.3. Schedules and Exhibits. WES has prepared, and Customer has approved and accepted, the Exhibits and Schedules set forth below, copies of which are attached hereto and made part of this Contract by reference.

SCHEDULES
Schedule A Scope of Work
Schedule B Compensation to WES

EXHIBITS
Exhibit 1 Form of Change Order
Exhibit 2 Form of Certificate of Substantial Completion Exhibit 3 Form of Certificate of Acceptance – Project Final Completion Exhibit 4 Form of Energy Savings Guarantee, including the following Schedules (the “Energy Savings Guarantee”):

Schedule 4-A Baseline Energy Consumption
Schedule 4-B Savings Measurement & Calculation Formulae; Methodology to Adjust Baseline

Exhibit 5 Payment Bond Form
Exhibit 6 Performance Bond Form
Exhibit 7 WES Insurance Certificates and Endorsements
Exhibit 8 Grant Award Requirements
Exhibit 9 Scopes of Work
SECTION 2 THE WORK
Section 2.1. The term “Work” means the investigation, design, engineering, preparation of plans, specifications and estimates (“PS&E”), construction, installation, commissioning, preparation of asbuilt drawings & specifications, and related services required to fulfill WES’s obligations under the Contract Documents, whether completed or partially completed, and includes all labor, materials, equipment, and services provided or to be provided by WES.

Section 2.2. WES shall fully execute the Work described in the Contract Documents, except to the extent specifically indicated in the Contract Documents to be the responsibility of others.

Section 2.3. WES shall perform all Work through sub-contractors or through WES’s own forces.

Section 2.4. WES shall perform the Work in accordance with sound engineering and safety practices, in compliance with any and all reasonable rules of Customer relative to the Premises, and in compliance with applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities in effect on the Effective Date or the date of a Change Order, as applicable. If WES performs Work contrary to applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities, WES shall assume responsibility for such Work and shall bear the costs attributable to correction.
328
SECTION 3 PHASES OF THE WORK
Section 3.1. The Work shall be performed in four phases: the IGA Phase, the Design Phase, the Construction Phase, and the Energy Savings Guarantee Phase, each as outlined in the Scope of Work. (a) The IGA/Design Phase will commence on the Effective Date. (b) The Construction Phase will commence upon Customer’s issuance of a formal Notice to Proceed (NTP) for some or all of the Work, following the conclusion of the Design Phase. No grading or excavation or other land disturbance will be allowed between October 15th and May 1st. (c) The Guarantee Phase will commence upon the execution of an Energy Savings Guarantee in the form of Exhibit 4, following the execution of the Certificate of Acceptance – Project Final Completion in the form of Exhibit 3.

Section 3.2. The Scope of Work for each phase of the Work is defined in Schedule A (Scope of Work) (the “Scope of Work”). The guaranteed maximum price for each phase of the Work is defined in Schedule B (Compensation to WES) (the “Compensation Schedule”).

SECTION 4 CONTRACT TIME
Section 4.1. IGA/Design Phase. The time allowed for completion of the IGA and Design Phase is 120 calendar days.
(a) Design & engineering packages shall be submitted to City Project Management team for review and approval. Package, including drawings, shall be submitted at completion of plans & specifications and again at completion of the project via as-builts. City Staff shall have a minimum of 10 calendar days for each package submission. City comments are to be incorporated into the subsequent design package submissions.

Section 4.2. Construction Phase. The time allowed for completion of the Construction Phase shall commence on the date specified in the Notice to Proceed and shall be completed within 704 calendar days.

Section 4.3. Guarantee Phase. The time allowed for the completion of the Guarantee Phase shall commence on the date the Certificate of Acceptance – Project Final Completion is executed and shall be completed within 1095 calendar days, which reflects three years of measurement and verification.

SECTION 5 FEES FOR THE WORK; PAYMENTS
Section 5.1. Customer will pay WES for the performance of the Work in accordance with the Compensation Schedule.

Section 5.2. Billing Information Procedure. Payments due to WES shall be calculated each month and paid in accordance with the Compensation Schedule.

Section 5.3. Payment. Customer shall pay WES within thirty (30) days of receipt of WES’s application for payment.

Section 5.4. Prevailing Wages. Pursuant to the provisions of California Labor Code, Sections 1770 to 1780, inclusive thereof, WES, and any subcontractor, of any tier, shall pay not less than the prevailing wage of per diem wages as determined by the Director of the California Department of Industrial Relations. In compliance with Senate Bill 854 and the California Labor Code, this Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. WES must submit its certified payroll records directly to the Division of Labor Standards Enforcement Compliance Monitoring Unit through the electronic certified payroll reporting (eCPR) system, as well as to the City. Pursuant to the provisions of California Labor Code section 1773.2, WES is hereby advised that copies of the prevailing rate of per diem wages and a general prevailing rate for holidays, Saturdays and Sundays and overtime work 329
in the locality in which the Work is to be performed for each craft, classification, or type of worker required to execute the Contract, are on file in Customer’s office. WES agrees that not less than said prevailing rates shall be paid to workers employed on this public works contract as required by Labor Code section 1774.

These rate determinations are found on the State of California Department of Industrial Relations’ website at: http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm.

SECTION 6 FISCAL FUNDING
Section 6.1. Non-appropriation of Funds. In the event no Customer funds (or other funds), or insufficient Customer funds (or other funds), are appropriated and budgeted for any future fiscal period in which payment will be due to WES under this Contract, and funds are otherwise unavailable by any means whatsoever in such future fiscal period, then the Customer will, not less than thirty (30) days prior to the beginning of such future fiscal period, notify WES in writing of such occurrence, and this Contract shall terminate on the last day of the fiscal period for which appropriations were made, without penalty or expense to the Customer of any kind whatsoever, except as to the portions of payments herein agreed, for which Customer funds and/or other funds shall have been appropriated and budgeted or are otherwise available.

SECTION 7 ENERGY USAGE RECORDS AND DATA
Section 7.1. Customer has furnished or shall furnish (or cause its energy suppliers to furnish) to WES, upon its request, all of Customer’s records and complete data concerning energy usage and energyrelated maintenance for the Premises, including the following data for the most current twenty-six (26) month period: utility records; occupancy information; descriptions of any changes in the building structure or its heating, cooling, lighting or other systems or energy requirements; descriptions of all energy consuming or saving equipment used in the Premises; bills and records relating to maintenance of energyrelated equipment, and a description of energy management procedures presently utilized. If requested, Customer shall also provide any prior energy audits of the Premises, and copies of Customer’s financial statements and records related to energy usage and operations for the most current twenty-six (26) month period at the Premises and shall make agents and employees familiar with such records available for consultations and discussions with WES.

SECTION 8 REPRESENTATIONS AND WARRANTIES
Section 8.1. Each Party warrants and represents to the other that:
(a) it has all requisite power, authority, licenses, permits, and franchises, corporate or otherwise, to execute and deliver this Contract and perform its obligations hereunder; (b) its execution, delivery, and performance of this Contract have been duly authorized by, or are in accordance with, its organic instruments, and this Contract has been duly executed and delivered for it by the signatories so authorized, and constitutes its legal, valid, and binding obligation. (c) its execution, delivery, and performance of this Contract will not breach or violate, or constitute a default under any Contract, lease or instrument to which it is a party or by which it or its properties may be bound or affected; and
(d) it has not received any notice, nor to the best of its knowledge, is there pending or threatened any notice, of any violation of any applicable laws, ordinances, regulations, rules, decrees, awards, permits or orders which would materially and adversely affect its ability to perform hereunder.

SECTION 9 ADDITIONAL REPRESENTATIONS OF THE PARTIES
Section 9.1. Customer hereby warrants, represents and promises that it has provided, or shall provide timely, to WES all records relating to energy usage and energy-related maintenance of the Premises 330
requested by WES and the information set forth therein is, and all information in other records to be subsequently provided pursuant to this Contract will be, true and accurate in all material respects.

Section 9.2. WES hereby warrants, represents and promises that:
(a) it is properly qualified, licensed and equipped to supply and perform the Work in the State of California;
(b) it shall make available, upon reasonable request, all documents relating to its performance under this Contract, including all contracts and subcontracts entered into; (c) it shall use qualified subcontractors and delegates, appropriately registered, licensed and bonded in this state, to perform the Work so subcontracted or delegated pursuant to the terms hereof; (d) it is financially solvent, able to pay its debts as they mature and possessed of sufficient working capital to complete the Work and perform its obligations under this Contract. (e) it has provided to Customer all Certificates of Reported Compliance (“CRCs”) for off-road diesel fleet vehicles (i.e. construction equipment) to be used for the Work under this Agreement as required by the California Air Resources Board.

SECTION 10 PERFORMANCE BY WES AND SUBCONTRACTING
Section 10.1. WES shall perform all tasks/phases under the Contract, including the IGA/Design Phase and the Construction Phase, in such a manner so as not to harm the structural integrity of the buildings or their operating systems. WES shall repair and restore to its original condition any area of damage caused by WES’s performance under this Contract. Customer reserves the right to review the Work performed by WES and to direct WES to take certain corrective action if, in the reasonable opinion of the Customer, the structural integrity of the Premises or its operating system is or will be harmed. All costs associated with such corrective action to damage caused by WES’s performance of the Work shall be borne by WES.

Section 10.2. WES shall remain responsible for the professional and technical accuracy of all Work performed, whether by WES or its subcontractors or others on its behalf, throughout the term of this Contract.

Section 10.3. For all construction subcontracts with a value exceeding one-half of one percent of the guaranteed maximum price for the Construction Phase, WES shall provide public notice of availability of work to be subcontracted, including a fixed date and time on which qualification statements, bids, or proposals will be due, establish reasonable qualification criteria and standards, and award such subcontracts on the basis of either best value or lowest responsible bidder. WES shall afford construction subcontractors all the protections of the Subletting and Subcontracting Public Contract Code section 4100 et seq.

SECTION 11 OWNERSHIP
Section 11.1. Ownership of Certain Proprietary Property Rights. Customer shall not, by virtue of this Contract, acquire any interest in any formulas, patterns, devices, secret inventions or processes, copyrights, patents, other intellectual or proprietary rights, or similar items of property which are or may be used in connection with the Work. All data, reports, proposals, plans, specifications, flow sheets, drawings, and other products of the Work (the “Instruments of Service”) furnished directly or indirectly, in writing or otherwise, to Customer by WES under this Contract will remain WES’s property and may be used by Customer only for the Work. WES will be deemed the author and owner of such Instruments of Service and will retain all common law, statutory and other reserved rights, including copyrights. The Instruments of Service may not be used by Customer for future additions or alterations to the Project or for other projects, without the prior written agreement of WES. Any unauthorized use of the Instruments of Service will be at Customer’s sole risk and without liability to WES. If Customer uses the Instruments of Service for implementation purposes, including additions to or completion of the Project, without the written permission 331
of WES, Customer agrees to waive and release, and indemnify and hold harmless, WES, its subcontractors, and their directors, employees, subcontractors, and agents from any and all claims, losses, and other liabilities associated with or resulting from such use. At completion of the Construction Phase, WES shall provide Customer with ownership of all as-built documentation including plans and specifications.

SECTION 12 INDEMNIFICATION
Section 12.1. To the fullest extent permitted by law, including, without limitation, California Civil Code section 2782, et seq., and in strict accordance with the Contract Documents, WES shall defend, indemnify, and hold harmless Customer, its officials, officers, City Council members, employees, and agents, and each of them, of and from any and all claims, demands, suits, causes of action, damages, costs, expenses, attorneys’ fees, losses, or liability, in law or in equity, of every kind and nature whatsoever related to, arising out of, or in connection with, WES’s Work to be performed under this Contract, and as otherwise set forth in Contract Documents. The obligations of defense and indemnity shall not be limited by any insurance requirements or obligations pursuant to the Contract Documents, and shall not extend to the sole negligence or willful misconduct of the Customer, or the active negligence of the Customer. The obligations arising from this Section shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity (including all duties to defend), which would otherwise exist as to a Party, or person described elsewhere in the Contract Documents.

SECTION 13 CONDITIONS BEYOND CONTROL OF THE PARTIES
Section 13.1. WES shall notify Customer in writing immediately of any delay or anticipated delay in WES’s performance of this Contract due to causes or circumstances beyond the reasonable control of WES. Notice shall include the reason for and anticipated length of the delay, and the date of performance shall be extended for a period equal to the time lost by reason of the delay. WES may be entitled to additional compensation due to any such extension of time. Any extension of time pursuant to this Section 13.1 shall be documented by a Change Order signed by the Parties. Examples of such possibly excusable delays are natural calamities, strikes and boycotts, war or civil unrest or governmental actions and other events that are commonly deemed force majeure events.

SECTION 14 EVENTS OF DEFAULT
Section 14.1. Events of Default by Customer. Each of the following events or conditions shall constitute a “Customer Event of Default”:
(a) any failure by Customer to pay any amount to WES which is not paid within five (5) days after written notification by WES that Customer is delinquent in making payment; provided that WES is not then in default in its performance under the terms of this Contract; or (b) any other material failure by Customer to perform or comply with the terms and conditions of this Contract, including breach of any covenant contained herein, provided that such failure continues for thirty (30) days after notice to Customer demanding that such failures to perform be cured, or if such cure cannot be effected in thirty (30) days, Customer shall not be in default if Customer commences a cure within such thirty (30) day period and diligently pursues completion thereof; or (c) any representation or warranty furnished by Customer in this Contract was false or misleading in any material respect when made.

Section 14.2. Events of Default by WES. Each of the following events or conditions shall constitute a “WES Event of Default”:
(a) any failure by WES to meet the standards of comfort and service set forth in the applicable scope of work, due to failure by WES to properly design, install, maintain, repair or adjust the Equipment; provided that such failure continues for thirty (30) days after notice to WES demanding that 332
such standards be met, or if such failure cannot be cured within thirty (30) days, WES shall not be in default if WES commences a cure within such thirty (30) day period and diligently pursues completion thereof. (b) any other material failure by WES to perform or comply with the terms and conditions of this Contract, including breach of any covenant contained herein, provided that such failure continues for thirty (30) days after notice to WES demanding that such failures to perform be cured, or if such cure cannot be effected in thirty (30) days, WES shall not be in default if WES commences a cure within such thirty (30) day period and diligently pursues completion thereof; (c) any representation or warranty furnished by WES in this Contract was false or misleading in any material respect when made; or
(d) the filing of a bankruptcy petition, whether by WES or its creditors against WES, which proceeding shall not have been dismissed within sixty (60) days of its filing, or an involuntary assignment for the benefit of all creditors or the liquidation of WES.

SECTION 15 REMEDIES UPON DEFAULT
Section 15.1. Remedies upon Default. All disputes shall be submitted to the individuals listed in Section 24 for resolution. In the event that a remedy acceptable to both Customer and WES cannot be found, either Party may seek mediation as outlined in Section 16.

SECTION 16 MEDIATION
Section 16.1. Any claims or actions (“Claims”) arising out of or related to the Contract shall be subject to mediation as a condition precedent to arbitration or the institution of legal or equitable proceedings by either Party.

Section 16.2. The Parties shall endeavor to resolve their Claims by mediation which, unless the Parties mutually agree otherwise, shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association then in effect. Request for mediation shall be filed in writing with the other Party to the Contract and with the American Arbitration Association. The request may be made concurrently with the filing of a demand for arbitration but, in such event, mediation shall proceed in advance of arbitration or legal or equitable proceedings, which shall be stayed pending mediation for a period of sixty (60) days from the date of filing, unless stayed for a longer period by agreement of the Parties or court order.

Section 16.3. The Parties shall share the mediator’s fee and any filing fees equally.

Section 16.4. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon.

Section 16.5. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof.

SECTION 17 LIENS
Section 17.1. WES will promptly pay, when due, all amounts payable for labor and materials furnished in the performance of this Contract and will prevent any lien or other claim from arising against any Customer property, against WES’s rights to payments hereunder, or against Customer.

SECTION 18 INDEPENDENT CAPACITY OF THE CONTRACTOR
Section 18.1. The Parties hereto agree that WES, and any agents and employees of WES, is acting in an independent capacity in the performance of this Contract, and not as a public official, officer, employee, consultant, or agent of Customer for purposes of conflict of interest laws or any other applicable law. 333
SECTION 19 NO WAIVER
Section 19.1. The failure of WES or Customer to insist upon the strict performance of the terms and conditions hereof shall not constitute or be construed as a waiver or relinquishment of either Party’s right to thereafter enforce the same in accordance with this Contract in the event of a continuing or subsequent default on the part of WES or Customer.

SECTION 20 SEVERABILITY
Section 20.1. In the event that any clause or provision of this Contract or any part thereof shall be declared invalid, void, or unenforceable by any court having jurisdiction, such invalidity shall not affect the validity or enforceability of the remaining portions of this Contract unless the result would be manifestly inequitable or unconscionable.

SECTION 21 COMPLETE AGREEMENT
Section 21.1. This Contract, when executed, together with all Exhibits and Schedules attached hereto or to be attached hereto, as provided for by this Contract, shall constitute the entire agreement between the Parties and this Contract may not be amended, modified, or terminated except by a written Change Order signed by the Parties hereto.

SECTION 22 FURTHER ASSURANCES
Section 22.1. The Parties shall execute and deliver all documents and perform all further acts that may be reasonably necessary to effectuate the provisions of this Contract.

SECTION 23 APPLICABLE LAW AND VENUE
Section 23.1. This Contract and the construction and enforceability thereof shall be interpreted under the laws of the State of California. Venue for any action brought relating to this Contract shall lie in the Superior Court of El Dorado County, South Lake Tahoe Division.

SECTION 24 NOTICE
Section 24.1. Any notice required or permitted hereunder shall be deemed sufficient if given in writing and delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or delivered to a nationally recognized express mail service, charges prepaid, receipt obtained, to the address shown below or to such other persons or addresses as are specified by similar notice.

TO WES: TO CUSTOMER:

Willdan Energy Solutions City of South Lake Tahoe
Attention: Micah Chen Attention: City Manager
2401 East Katella Avenue, Suite 300 1901 Lisa Maloff Way Anaheim, CA 92806 South Lake Tahoe, CA 96150
SECTION 25 HEADINGS
Section 25.1. Headings and subtitles used throughout this Contract are for the purpose of convenience only, and no heading or subtitle shall modify or be used to interpret the text of any section.

SECTION 26 INSURANCE
Section 26.1. WES shall procure and maintain in effect insurance coverage in amounts not less than the following with the following endorsements. Insurance shall be placed with insurers admitted in the State of California and with an A.M. best rating of A- VII or higher. 334
(a) Workers’ Compensation and Employer’s Liability Insurance with limits of not less than $1,000,000 per occurrence. Each Workers’ Compensation policy shall be endorsed with the following language:
(i) Cancellation notice – WES shall provide immediate written notice if: 1) Any of the required insurance policies are terminated; 2) the limits of any of the required policies are reduced; or 3) the deductible or self-insured retention is increased. (ii) WES and insurer(s) shall waive any right of subrogation against Customer and its officials, officers, employees, agents, and representatives. (iii) WES shall require all subcontractors, of any tier, to maintain adequate Workers’ Compensation insurance with the required endorsements. Certificates and endorsements of Workers’ Compensation shall be submitted pursuant to the Contract Documents. (b) Commercial General Liability Insurance with coverage at least as broad as Insurance Services Office form CG 00 01 for personal injury, bodily injury, and property damage, including without limitation, blanket contractual liability, with limits not less than $2,000,000 combined single limit each occurrence and $2,000,000 general aggregate. Customer and its elected and appointed boards, officers, agents, and employees shall be named as additional insureds. Umbrella or Excess Liability Insurance shall be provided in an amount not less than $10,000,000, and shall provide that the policy takes effect (drops down) in the event the primary limits are impaired or exhausted. These policies shall be endorsed with the following language:
(i) Customer and its respective officers, agents, employees, and volunteers are to be covered as additional insureds for all liability arising out of operations by on or behalf of the named insured in the performance of this Contract. Policy shall be endorsed using Insurance Services Office form CG 20 10 (or equivalent).
(ii) The insurance provided by WES, including any excess liability or umbrella form coverage, is primary coverage with respect to any insurance or self-insurance program maintained by WES and no insurance held or owned by Customer shall be called upon to contribute to a WES loss. WES shall provide immediate written notice if: 1) any of the required insurance policies are terminated; 2) the limits of any of the required policies are reduced; or 3) the deductible or self-insured retention is increased.
(iii) The policies shall stipulate that the insurance afforded the additional insured applies as primary insurance and shall not seek contribution from Customer’s coverage. (iv) The policies shall be endorsed to provide completed operations coverage for Customer using Insurance Office Form CG 20 37 (or equivalent). (v) Any failure to comply with reporting provisions of the policies by WES shall not affect coverage afforded to Customer.
(vi) Coverage shall state that WES insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
(vii) Coverage shall contain a waiver of subrogation in favor of Customer. (c) Automobile Liability Insurance coverage for owned, non-owned, and hired autos using ISO Business Auto Coverage form CA 00 01 (or equivalent) with a limit not less than $2,000,000 per accident.
(d) Professional Liability Insurance that insures against professional errors and omissions that may be made in performing the services to be rendered in connection with this agreement, in the minimum amount of $2,000,000 per claim and in the aggregate. Any policy inception date, continuity 335
date, or retroactive date must be before the effective date of this agreement, and WES agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
(e) Builders All-Risk Insurance: WES, at Customer’s expense, shall maintain “All Risk Insurance” for all Equipment, and property obtained by or for WES which is to become a part of the work while such Equipment and property is stored at the job site, at temporary locations, or while in transit to the Project from such temporary locations. WES shall also be responsible for insuring Subcontractors’ owned, rented, or borrowed equipment. Policy shall be provided for replacement value on an “all-risk” basis, including earthquake and flood. The Customer shall be named as Loss Payee on the policy and there shall be no coinsurance penalty provision in any such policy. Policy must include: (1) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures, and all other properties constituting a part of the project; (2) “Installation Floater” coverage with limits sufficient to insure the full replacement value of any property or equipment stored either on or off the project site. Such insurance shall be on a form acceptable to Customer to ensure adequacy of terms and limits. WES shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to Customer.
(f) Pollution Liability Insurance shall be provided for liability arising out of sudden, accidental, and gradual pollution and remediation. The policy limit shall be no less than $2,000,000 per claim. All activities contemplated in this agreement shall be specifically scheduled on the policy as “covered operations.: The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites. The policy shall be endorsed to include the Customer, and its respective officers, agents, employees, and volunteers as additional insureds.

Section 26.2. Prior to commencement of work, WES shall provide Customer with certificates of insurance endorsements evidencing coverage required above. WES must agree to provide complete, certified copies of all required insurance policies if requested by Customer. Each certificate shall provide that the coverage shall not be canceled except with at least thirty (30) days prior written notice to Customer, ten (10) days’ notice if cancellation is due to nonpayment of premium. Should this occur, WES shall procure and furnish to Customer, prior to such effective date, new certificates and endorsements conforming to the above coverage requirement. All self-insurance, self-insured retentions, and deductibles must be declared and approved by Customer.

SECTION 27 PAYMENT AND PERFORMANCE BONDS
Section 27.1. Payment Bond. WES Shall provide a payment bond in an amount equal to the guaranteed maximum price for the construction phase as set forth in the Compensation Schedule, on the form included as Exhibit 5.

Section 27.2. Performance Bond. WES shall provide a performance bond in an amount equal to the guaranteed maximum price for the construction phase as set forth in the Compensation Schedule, on the form included as Exhibit 6.

SECTION 28 ASSIGNMENT
Section 28.1. No assignment by a party hereto of any rights or interests in the Agreement will be binding on the other party without the written consent of the party sought to be bound; and specifically but without limitation, moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to the assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. 336
SECTION 29 EPACT 179D
Section 29.1. To encourage the implementation of more energy-efficient & decarbonized systems, Section 179D of the Internal Revenue Code provides for the allocation of a tax deduction based on the efficiency of the design. Since a public entity is exempt from paying taxes, the Internal Revenue Code permits this allocation to be passed along to the designer of the system as an additional incentive to incorporate the most efficient system affordable. Accordingly, once the building/system is placed into service, it is understood and agreed that the tax deduction granted pursuant to Section 179D of the Internal Revenue Code will be allocated to WES, in consideration of which WES intends to maximize the energy efficiency of the design being contracted.

IN WITNESS WHEREOF, and intending to be legally bound, the Parties hereto subscribe their names to this Contract by their duly authorized officers as of the Effective Date.

WES CUSTOMER
Signed Signed
Name Name
Title Mayor
337

SCHEDULE A

SCOPE OF WORK
California State Contractor’s License Number 1065713
California Public Works Contractor Registration Number 1000033393 This scope of work (“Scope of Work”) is attached to, and forms an integral part of, the Energy Performance Contract (together with its Schedules and Exhibits, the “Contract”) between Willdan Energy Solutions (“WES”) and Customer. Capitalized terms used and not defined in this Scope of Work have the meanings given them in the Contract.

The purpose of this Contract is for WES to perform an investment grade audit (an “IGA”) of the Customer’s property and buildings (the “Premises”); the IGA will form the basis for recommendations, which WES will present to Customer, for the implementation of energy-savings efficiency measures, or other operating cost saving measures and equipment, as well as energy generation measures, as described in this Schedule A (Scope of Work), with respect to the Premises, and also for estimated program costs and overall potential energy consumption savings. The Contract will also set forth the terms and conditions under which WES will implement recommendations agreed to by Customer, and any other services agreed by WES and Customer, all of which will be designed to save energy carbon, or other operating costs at the Premises (collectively, the “Project”).

Schedule A-1. IGA/DESIGN PHASE SERVICES
(a) General.

WES shall advise the Customer on all proposed elements of the Project, selection of materials, building systems and equipment, financing options, and utility incentives. WES shall also provide the Customer with recommendations, consistent with the Customer’s stated criteria, on constructability; availability of materials and labor; time requirements for procurement, installation and construction; and factors related to construction cost including, but not limited to, costs of alternative designs or materials, preliminary budgets, life-cycle data, and possible cost reductions. (b) Engineering and Design. During the IGA Phase, WES shall perform:

Design required to develop the scope and Project solution that meets Performance Contract Program Requirements as identified in Schedule A-4.

Develop design in enough detail to procure subcontractors and materials and develop the Contract Sum.
(A) Perform a survey of the spaces and existing systems throughout the Premises to document existing conditions.
(B) Work with the Customer to establish Project goals and criteria. (C) Prepare design documents and/or criteria for subcontractor pricing procurement to install modifications to HVAC, electrical, and plumbing systems. (c) Pre-Construction Services. During the IGA Phase:

WES shall assemble all design documents necessary for pricing procurement.
338
WES shall engage subcontractors; familiarize them with the Project, site and bidding information; and procure pricing for the purposes of establishing WES’s cost proposal for each element of the Project.

WES shall coordinate with the Customer, sub-consultants, financiers, utilities and other stakeholders throughout the IGA Phase. (d) Energy-Related Services.

WES will walk through the facility to become familiar with existing systems and the building’s operations. WES will also gather as-built plans and O&M data on existing HVAC systems from Customer.

WES will quantify energy savings for each recommended element of the Project through a calibrated computer energy model or other industry standard energy calculation procedure.

WES will quantify and summarize Project economics throughout each phase of design, including:
(A) Project costs;
(B) Energy savings;
(C) Maintenance and other costs savings;
(D) Utility incentives; and
(E) Project financing terms and debt service payment terms. (e) CEQA. In accordance with California Government Code §5956.6(b)(1), prior to any construction Work being performed, Customer, with the assistance of WES, will take all actions necessary to comply with the California Environmental Quality Act.

Schedule A-2. CONSTRUCTION PHASE SERVICES
(a) WES’s Construction Phase Responsibility.

WES shall supervise and direct the Work, using WES’s best skill and attention. WES shall be solely responsible for, and have control over, construction means, methods, techniques, sequences and procedures, and for coordinating all portions of the Work under the Contract, unless the Contract Documents give other specific instructions concerning these matters.

WES shall schedule Work and coordinate Subcontractors and any other persons on the site of the Project.

WES will inspect the Work of each subcontractor for defective work, manage resolution of the defective work, and notify applicable subcontractor(s) to correct such defective work in a manner approved by the design team and Customer.

WES shall record the progress of the Project and provide reports to the Customer. Such reports shall include, without limitation, information about variations between actual and budgeted or estimated costs and information on each subcontractor’s work, as well as completion status on the entire Project, showing percentages of completion.

With the cooperation of the Subcontractors, WES will prepare and maintain the Construction Schedule with distribution on a bi-weekly basis. Willdan shall submit initial draft construction schedule for the City’s review and approval. The City shall have 10 business days to provide feedback.
339
WES shall schedule and conduct preconstruction, progress, quality control and special meetings with the Customer, designers, the subcontractors and any other parties involved in the Project to discuss such matters as procedures, progress, problems and scheduling.

WES shall receive, review for completeness and responsiveness the subcontractors’ submittals such as shop drawings, product data and samples and deliver them to the Customer for review and approval.

WES shall manage the Punch List, coordinate final inspections, and prepare the certificates of Substantial Completion and Final Completion per scope of work which starts the warranty period. Upon Final completion, WES will receive, review for conformity with the requirements of the Contract Documents, transmit to the Customer any affidavits, and turn over to the Customer any manuals and the originals of any guarantees, warranties, releases, bonds and waivers. As-Built drawings and specifications shall be provided to the owner in electronic format as well as final authority having jurisdiction (AHJ) paperwork and approved plans/permits. As-Builts should accurately reflect any changes and adjustments that were made during implementation.

A 1-year workmanship warranty shall be provided which commences at the date of substantial completion by scope of work. All warranty information will be in the close out package provided to the customer and reviewed during training. Before end of warranty periods, Customer may elect to explore extension of warranties and shall be negotiated outside of this contract. (b) Enhanced Commissioning. WES shall develop the commissioning plan, review construction documents, develop functional test procedures, coordinate commissioning activities, verify startup tests, perform functional performance tests, and generate final commissioning report. (c) Labor and Materials.

Unless otherwise provided in the Contract Documents, WES shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation, and other facilities and services, necessary for proper execution and completion of the Work, whether temporary or permanent, and whether or not incorporated or to be incorporated in the Work.

WES shall enforce strict discipline and good order among WES’s employees, Subcontractors, and other persons carrying out the Work. WES shall not permit employment of unfit persons or persons not properly skilled in tasks assigned to them.

Schedule A-3. GUARANTEE PHASE SERVICES
(a) Facility Personnel Assistance.

WES’s commissioning group will assist Customer personnel in achieving the most efficient operation of Customer’s facility. The commissioning group will remotely monitor the facility and will help identify potential problems with the HVAC as well as work with the facility staff to enhance and implement energy conservation programs.

Customer will be responsible for the maintenance of all energy systems, including lighting, mechanical, electrical, and building automation control systems per Schedule 1-A-5. (b) Savings Tracking and Reporting.

WES will be responsible for the monthly tracking and monitoring of the Project and will provide ongoing assistance to Customer’s staff.

WES will provide an annual savings report. This report will detail monthly savings, year to date savings, and guaranteed savings. This report will also show the actual savings in units of energy.
340
(c) Utility Rate Negotiation. If, during the term of this Contract, deregulation of the electric and gas utilities should occur, WES shall have the right to negotiate on behalf of the Customer, in whole or in part, other utility services beyond the current providers of those services. WES will represent the Customer as long as the services being negotiated are cost competitive for the Customer. WES will seek the most cost competitive providers of those services who can provide equal or better-quality service. In the event that the Customer is able to locate a more cost competitive provider, with equal quality, WES will agree to use that provider. The purpose of this paragraph is to minimize utility costs for the Customer. (d) Cancellation.

Customer may cancel the Guarantee Phase services on any anniversary of the commencement of Guarantee Services, or at the end of Customer’s fiscal year.

If Customer cancels these services, WES reserves the right to cancel the Energy Savings Guarantee as outlined in Exhibit 4.

Schedule A-4. ENERGY PERFORMANCE CONTRACT PROGRAM REQUIREMENTS:
(a) General Scope and Intent.

The intent of the program is to maximize energy and operational cost savings, reduce carbon emissions and leverage those savings to progress on the Customer’s facility electrification and decarbonization goals as well as accomplish other related facility improvements as needed. This program will prioritize local labor wherever feasible in the delivery and implementation of energy improvements. The program will adhere to the relevant grant funding requirements, as described in Exhibit 8.

The general scope of the program will include, but is not limited to, scopes of work as outlined in Exhibit 9.

Schedule A-5. PROJECT IMPLEMENTATION SCOPE OF WORK
(a) Scope of Work. Final, detailed scope of work will be included in one or more Change Orders.

Schedule A-6. TIME.
(a) Construction and installation of energy-saving and/or energy-generating equipment (“Equipment”) by WES shall proceed throughout the Construction Period described in the detailed schedule of construction, which will be submitted to Customer following commencement of the Construction Phase. This schedule will be updated throughout construction to reflect ongoing progress on the Project. WES will endeavor to minimize disruption to Customer operations while allowing for completion of Scope of Work in a timely fashion.
(b) Weather disruptions, availability of necessary equipment, remediation of hazardous materials, and other delays beyond the control of WES shall not count toward the Construction Period. The completion dates will be modified by Change Order for these events. 341

SCHEDULE B

COMPENSATION TO WES
This compensation schedule (“Compensation Schedule”) is attached to, and forms an integral part of, the Energy Performance Contract (together with its Schedules and Exhibits, the “Contract”) between Willdan Energy Solutions (“WES”) and Customer. Capitalized terms used and not defined in this Compensation Schedule have the meanings given them in the Contract.

The Customer shall compensate and make payments to WES for the IGA Phase services, the Design Phase services, Construction Phase services and the Guarantee Phase services as follows:

Schedule B-1. INVESTMENT GRADE AUDIT AND DESIGN PHASE SERVICES The Customer shall compensate and make payments to WES for the IGA Phase services as follows:
(a) In the event the Construction Phase is not reached, Customer shall pay WES the stipulated sum of $213,740 for IGA services reimbursement.

Schedule B-2. CONSTRUCTION PHASE
For WES’s performance of the Construction, the Customer shall pay WES an Guaranteed Maximum Price (GMP) Construction Phase Contract Sum not to exceed $11,414,489 in current funds for WES’s performance of the Contract.

Schedule B-3. GUARANTEE PHASE
For WES’s performance of the Energy Savings Guarantee, the Customer shall pay WES in current funds for WES’s performance of the Guarantee Phase services following Final Completion of the entire Project, and issue to WES the “Certificate of Acceptance - Project Final Completion” as defined in Schedule 1-C. The Guarantee Phase Contract Sum shall be identified in the Energy Savings Guarantee.

Schedule B-4. PAYMENT PROCEDURES
(a) Investment Grade Audit Phase Payments. WES shall provide an Application for Payment to Customer for IGA Phase services completed in accordance with Schedule A-1 above. The Customer shall make payment in the manner and within the time provided in Section 4.3 of the Contract (b) Construction Phase Payments.
(1) Project Mobilization. The initial Application for Payment shall include all remaining pre-construction-phase services amounts as well as ten percent (10%) of the remaining total compensation to allow for mobilization of WES and subcontractors. (2) Progress Payments. WES shall provide a monthly Application for Payment to Customer for work completed during the previous month. The Customer shall make payment in the manner and within the time provided in Section 5.3 of the Contract. Until the Project is complete, as identified as a line item in the Schedule of Values, Customer will pay ninety-five percent (95%) of the amount due to WES on account of progress payments. until certificate of Final Completion is issued, per scope of work, when the measure has been commissioned and training completed, and full retainage will be paid.
(3) Schedule of Values. WES will prepare and submit a complete schedule of values along with the initial Application for Payment. Project elements listed as line items in the Schedule of Values will be treated as individual projects for the purposes of Progress Payments, Substantial Completion, Final Completion, and withholding of retention amounts. 342
(4) Substantial Completion. Substantial Completion is the stage in the progress of the Project when the Project or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Customer can utilize the Work for its beneficial use.

When WES considers that an individual Project is Substantially Complete, WES shall prepare and submit to the Customer a comprehensive list of items to be completed or corrected prior to final payment (the “Punch List”). Upon receipt of WES’s Punch List, the Customer shall, within seven (7) days, inspect the Work to determine whether the Work or designated portion thereof is Substantially Complete. If the Customer’s inspection discloses any item, whether or not included on the Punch List, which is not sufficiently complete in accordance with the Contract Documents so that the Customer can utilize the Project or designated portion thereof for its intended use, WES shall, before issuance of the Certificate of Acceptance - Project Final Completion, complete or correct such item upon notification by the Customer.

In such case, WES shall then submit a request for another inspection by the Customer to determine Substantial Completion.

When the Work or designated portion thereof is Substantially Complete, WES will prepare a Certificate of Substantial Completion which shall establish the date of Substantial Completion, shall establish responsibilities of the Customer and WES for security, maintenance, heat, utilities, damage to the Project and insurance, and shall fix the time within which WES shall finish all items on the Punch List accompanying the Certificate. Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Project or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion. The Certificate of Substantial Completion shall be submitted to the Customer for their written acceptance of responsibilities assigned to them in such Certificate. (5) Substantial Completion Payment. Upon Substantial Completion acceptance, the Customer shall make payment of retainage applying to such Work or designated portion thereof within the time provided in Section 5.3 of the Contract. Such payment shall be reasonably adjusted to reflect the dollar value of Work that is incomplete or not in accordance with the requirements of the Contract Documents.
(6) Project Final Completion and Payment. After WES’s completion of all Punch List items, Project closeout requirements, and upon receipt of written notice that the Project is ready for final inspection and acceptance and upon receipt of a Final Application for Payment, the Customer will make such inspection within seven (7) days and, when the Customer finds the Project acceptable under the Contract Documents and the Contract fully performed, the Customer will execute and issue the Certificate of Acceptance within two (2) days from the final inspection and pay the entire balance found to be due to WES as stated in the Final Application for Payment within the time provided in Section 5.3 of the Contract. (c) Guarantee Phase Payments. WES shall provide annual Applications for Payment to Customer for Guarantee Phase services to be completed in the subsequent year. The Customer shall make payment in the manner and within the time provided in Section 5.3 of the Contract. (d) Failure of Payment. If the Customer does not pay WES within five (5) days after the date established in Section 5.3 of the Contract, then WES may, upon written notice to the Customer, stop the Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately, and the Contract Sum shall be increased by the amount of WES’s reasonable costs of shutdown, delay and start-up, plus interest. 343
EXHIBIT 1

FORM OF CHANGE ORDER
PROJECT TITLE ________________________
PROJECT ID NUMBER ___________________

CONTRACT CHANGE ORDER
Date: _________________________
Contract Change Order No.: ________________________

To: ________________________________________
You are hereby directed to make the herein described changes to _________________Contract, the following described work not included in the original scope and modified by this contract change order (CCO).

Note: This CCO is not effective until approved by the Owner, or until an authorized Field Directive is executed.

This CCO is requested by: City of South Lake Tahoe
CONTRACT CHANGE ORDER AMOUNT: $______________ (Write In dollars).

REASON FOR CHANGE: _______________________________________________________ The following is hereby changed:
________________________________________________________________________ COST OF CHANGE: $________________________________________________________ 344
CONTRACT TIME ADJUSTMENT: ______________ days will be added to the contract ______________________.

This contract change order constitutes full and complete compensation for all labor, equipment, materials, tools, jobsite and home office overhead, profit, all indirect costs and contract time adjustment to perform the above-described change. All other costs are non-compensable.

RECOMMENDED BY: ACCEPTED BY:

Construction Manager Date Contractor Date
Name

Project Manager Date

Anush Nejad, P.E. Date
Director of Public Works
345
SCHEDULE 1-A

ADDITIONAL RESPONSIBILITIES
Schedule 1-A-1. System Start-up & Commissioning. WES will perform start-up and commissioning services for all equipment installed.

Schedule 1-A-2. Operating parameters of installed equipment. WES will provide operating parameters in the Operation and Maintenance Manuals. These manuals will be provided to Customer prior to Project Final Completion.

Schedule 1-A-3. Standards of Comfort.
(a) Customer will maintain the following standards of comfort, which were used to evaluate the energy conservation measures for this Project. Significant deviation from these standards will represent a change in operation that must be accounted for, in accordance with Exhibit 4-4, in order to accurately verify the Energy Savings Guarantee.
(b) General Occupied temperature set points: 70°F or below in heating and 72°F or above in cooling.
(c) General Unoccupied temperature set points: 65°F in heating and 85°F or above in cooling.

Specialty areas can be maintained at the following set points:
(d) IT Server Rooms set point will be no higher than 80˚F continuously (e) Evidence locker room set points will be maintained between 60˚F-72˚F continuously (f) Fire Stations can maintain cooling temperatures no lower than 68˚F Annual Day Definitions:

Weekday: Monday through Friday except Holidays
Saturdays: Saturdays except Holidays
Sundays: Sundays except Holidays
Exceptions/Holidays: Martin Luther King, Jr. Day, President’s Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving, Day After Thanksgiving, Christmas, New Year’s Day, or other day scheduled closed
(1) Occupancy Schedules for each building
Building/Space Types Work Day Saturday Sunday Holiday
Recreation and Swing Pool
Complex 7:30AM – 8:00PM
9:00AM4:30PM 9:00AM4:30PM 9:00AM4:30PM
Ice Arena
7:30AM – 8:30PM
8:00AM6:30PM 8:00AM6:30PM 8:00AM6:30PM
Senior Center
2:00PM – 6:00PM
9:00AM –
3:00PM N/A N/A
346
Art Building
12:00PM - 5:00PM
12:00PM -
5:00PM N/A N/A
Museum
N/A
11:00AM –
3:00PM N/A N/A
Fire Training/Scout Lodge
Explore Tahoe Transit
Center
10:00AM –
5:00PM
10:00AM –
5:00PM
10:00AM –
5:00PM
10:00AM –
5:00PM
Services Center 8:00AM – 3:30PM N/A N/A N/A
Motor Pool 8:00AM – 3:30PM N/A N/A N/A
PW Operations 8:00AM – 3:30PM N/A N/A N/A
Parking Garage 12:00AM –
11:59PM
12:00AM –
11:59PM
12:00AM –
11:59PM
12:00AM –
11:59PM
Transit Tire Shop 8:00AM – 3:30PM N/A N/A N/A
Airport
8:00AM – 5:00PM
8:00AM –
5:00PM
8:00AM –
5:00PM
8:00AM –
5:00PM
Fire Station 1 12:00AM –
11:59PM
12:00AM –
11:59PM
12:00AM –
11:59PM 37
Fire Station 2 12:00AM –
11:59PM
12:00AM –
11:59PM
12:00AM –
11:59PM
12:00AM –
11:59PM
Police Department 12:00AM –
11:59PM
12:00AM –
11:59PM
12:00AM –
11:59PM
12:00AM –
11:59PM
Street Maintenance 8:00AM – 3:30PM N/A N/A N/A
(g) Energy Consuming Equipment Use: HVAC systems generally come on one hour before the space served is occupied. The equipment is scheduled off at the end of the occupied period. Other energy consuming equipment follow occupancy schedules.

Schedule 1-A-4. WES Maintenance Responsibilities. WES is not responsible for performance of any maintenance of equipment on the Premises.

Schedule 1-A-5. Customer Maintenance Responsibilities. Customer is required to perform all necessary maintenance as recommended by the manufacturer in the Operation and Maintenance manuals (to be provided upon Project Final Completion) for equipment installed as part of this Contract, as well as all additional equipment that will continue to operate in Customer facilities.

Schedule 1-A-6. Facility Maintenance Checklist. WES shall provide Customer with a complete facility maintenance checklist prior to the Acceptance of Project Final Completion. 347
Schedule 1-A-7. Customer Information Technology Responsibilities. (a) Customer is responsible for providing a working WAN infrastructure connecting multiple buildings and configuring it for connecting new internet-based building control system, accessible via standard web-browser from inside and outside the Customer’s network. (b) Customer is responsible for providing network connection(s) (cables and switches), open ports and IP addresses for connection of building control system’s web server to Customer’s network for internet accessibility.
(c) Customer shall engage their IT representative familiar with the Customer’s network to work with WES and its subcontractors to establish IP addresses and communications to assure proper operation of the building control system with the Customer’s wide area network.

Schedule 1-A-8. Differing Site Conditions. The conditions at the site are the responsibility of the Customer regardless of whether or not they could be identified by an investigation or exploration conducted according to the professional standard of care. A “Differing Site Condition” is a subsurface, hidden, latent, or physical condition at a Project site/building not revealed by the site exploration, site investigation, or other information provided by the Customer and which cannot be reasonably anticipated.

Special risks occur whenever engineering is applied to identifying site/building conditions. Even a comprehensive investigation, according to the professional standard of care, may not detect all subsurface or site/building conditions. WES shall not be liable for site/building conditions that could not be identified by such an investigation or exploration. Accordingly, the Customer agrees to indemnify, including all costs and fees, and hold WES harmless from all claims for Differing Site Conditions.

Schedule 1-A-9. Hazardous Substances.
(a) WES contemplates that it will not encounter any Hazardous Substances at the Premises, except as has been disclosed as a pre-existing condition by Customer prior to the Amendment Date.

However, any disclosure of Hazardous Substances that will affect the performance of the Work after the Amendment Date will constitute a valid basis for a Change Order. (b) “Hazardous Substances” means (i) any hazardous, toxic, or dangerous wastes, substances, chemicals, constituents, contaminants, pollutants, and materials and any other carcinogenic, liquids, corrosive, ignitable, radioactive, reactive, toxic, or otherwise hazardous substances or mixtures (whether solids, liquids, gases) now or at any time subject to regulation, control, remediation, or otherwise addressed under Applicable Laws; (ii) any “hazardous substance” as defined by the Resource, Conservation and Recovery Act of 1976 (42 U.S.C. §6901 et seq.), as amended, and regulations promulgated thereunder; (iii) any “hazardous, toxic or dangerous waste, substance or material” specifically defined as such in 42 U.S.C. §9601 et seq., as amended and regulations promulgated thereunder; and (iv) any hazardous, toxic or dangerous waste, substance, or material as defined in any so-called “superfund” or “superlien” law.

Schedule 1-A-10. Training Requirements. WES will provide up to 20 hours of dedicated training prior to Project Final Completion to ensure proper understanding of installed systems. Additional training will be provided at no additional cost until Project Final Completion as deemed necessary by Customer and WES. Trainings for the central plant, building management system and cogeneration system shall be recorded and provided to the Customer electronically.

Schedule 1-A-11. Trenching. Pursuant to California Labor Code §6705, if the Work is a public work involving an estimated expenditure in excess of $25,000 and includes the excavation of any trench or trenches five (5) feet or more in depth, WES will, in advance of excavation, submit to Customer and/or a registered civil or structural engineer, employed by Customer, to whom authority to accept has been delegated, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches, which provisions will be no less effective than the current and applicable CAL-OSHA 348
Construction Safety Orders. No excavation of such trench or trenches may be commenced until this detailed plan has been accepted by Customer or by the person to whom authority to accept has been delegated by Customer. Pursuant to California Labor Code §6705, nothing in this Schedule 1-A-11 imposes tort liability on Customer or any of its employees.

Schedule 1-A-12. Subsurface Conditions. Pursuant to California Public Contract Code §7104, if the Work is a public work involving digging trenches or other excavations that extend deeper than four (4) feet below the surface of the ground:
(a) WES will promptly, and before the following conditions are disturbed, notify Customer, in writing, of any:
(1) Material that WES believes may be material that is hazardous waste, as defined in California Health and Safety Code §25117, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) Subsurface or latent physical conditions at the site differing from those indicated by information about the site made available to WES before the Amendment Date; (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
(b) Customer will promptly investigate the conditions and, if it finds that the conditions do materially so differ or do involve hazardous waste and cause a decrease or increase in WES’s cost of, or the time required for, performance of any part of the Work will issue a Change Order under the procedures described in this Contract.
(c) If a dispute arises between Customer and WES, whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in WES’s cost of, or time required for, performance of any part of the Work, WES will not be excused from any scheduled completion date provided for by this Contract but will proceed with all Work to be performed under this Contract. WES will retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the Parties.
349
EXHIBIT 2

CERTIFICATE OF SUBSTANTIAL COMPLETION
Project Project Number:

From: WES To (Customer): [CUSTOMER NAME]
[WES Address] [Customer Address]
[WES Address] [Customer Address]

PROJECT OR PORTION OF THE PROJECT DESIGNATED FOR PARTIAL OCCUPANCY OR USE SHALL INCLUDE:

Scope of Work A {Identify the Work, or portion thereof per the schedule of values, that is Substantially Complete}
The Work performed under this Contract has been reviewed and found, to the best of the Customer’s knowledge, information, and belief, to be Substantially Complete. Substantial Completion is the stage in the progress of the Work when the Work or designated portion is sufficiently complete in accordance with the Contract Documents so that the Customer can occupy or utilize the work for its intended use. The date of Substantial Completion of the Project or portion designated above is the date of issuance established by this Certificate, which is also the date of commencement of applicable warranties required by the Contract Documents, except as stated below:
{Identify warranties that do not commence on the date of Substantial Completion, if any, and indicate their date of commencement}
Warranty Date of
Commencement
Equipment A, if any
CUSTOMER’S

REPRESENTATIVE
BY (Signature) DATE OF ISSUANCE
A list of items to be completed or corrected is attached hereto. The failure to include any items on such a list does not alter the responsibility of WES to complete all Work in accordance with the Contract Documents. Unless otherwise agreed to in writing, the date of commencement of warranties for items on the attached list will be the date of issuance of the final Certificate of Payment or the date of final payment. 350
The estimated cost of work that is incomplete or
defective:
$ 0.00
WES will complete or correct the Work on the list of items attached hereto within [___] days from the above date of Substantial Completion:

WES BY (Signature) DATE
The Customer accepts the Work or designated portion as Substantially Complete and will assume full possession thereof on the above date of Substantial Completion. Customer assumes responsibility for security, maintenance, heat, utilities, damage to the Work and insurance.

CUSTOMER BY (Signature) DATE
351
EXHIBIT 3
CERTIFICATE OF ACCEPTANCE – PROJECT FINAL COMPLETION
This is to certify that a final inspection of the Project has been conducted jointly by WES and [CUSTOMER NAME], and that the Parties have determined that the Project has been fully completed in accordance with the Contract Documents. All guarantees and warranties that have not commenced previously shall commence as of the date of completion below.

Customer accepts the Project as being fully completed and assumes all responsibility for the Premises.

Customer will promptly record a notice of completion or notice of acceptance in the office of the county recorder in accordance with California Civil Code §9204. WES remains responsible for correcting errors and omissions discovered subsequent to the execution of this document and to respond to claims made under applicable warranties.

WES CUSTOMER
Signed Signed
Name Name
Title Title

352
Recorded at the request of
The City Clerk, South Lake
Tahoe, California
After recording return to:

City Clerk
City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150

THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11922 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTIONS 6103 and 27383 OF THE CALIFORNIA GOVERNMENT CODE.

Notice of Completion
of Contract for the

XXXXX (PWC XXX)

Notice is hereby given that I, Anush Nejad, Director of Public Works for the City of South Lake Tahoe, State of California, with respect to that certain contract for the ________________________ Project in the City of South Lake Tahoe, California on ___________________ filed with the City Clerk of said City of South Lake Tahoe (City), my Certificate of Completion of the following described work, the contract for doing which was heretofore awarded to _____________________., as Contractor, on _______________, and entered into on ___________, in accordance with the plans and specifications for said work filed with the City Clerk of the City and approved by the Director of Public Works of said City.

Said work and improvements were completed on ________________, and the project has been accepted by me as completed pursuant to authority granted by the South Lake Tahoe City Council by Resolution No. 1993-89 adopted on December 7, 1993.

Said work and improvements consisted of _______________________, in the City of South Lake Tahoe, County of El Dorado, State of California, all as is more particularly described in the contract, plans and specifications approved by the Director of Public Works.

Dated: _____________________

Anush Nejad
Director of Public Works
353
City of South Lake Tahoe
Certificate of Completion of
___________________________________________________________ I, Anush Nejad, Director of Public Works for the City of South Lake Tahoe, do hereby certify that the work and improvements hereinafter described the contract for doing which was entered into by and between _________________________, as Contractor, and the City of South Lake Tahoe dated _____, was completed to my satisfaction on _______. Said work and improvements consisted of ___________________________, particularly described in the plans and specifications and contract approved by the Director of Public Works.

Dated: _________________________________

Anush Nejad
Director of Public Works
354
I, Anush Nejad, declare:

I am the Director of Public Works for the City of South Lake Tahoe; that I have read the foregoing Notice of Completion and that the facts therein stated are true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on ___________, at South Lake Tahoe, California.

Anush Nejad
Director of Public Works
Attest:

City Clerk
(City Seal)
355
EXHIBIT 4

FORM OF ENERGY SAVINGS GUARANTEE
Exhibit 4-1. GUARANTEE PHASE CONTRACT SUM
(a) Customer shall pay WES annual payments for Guarantee Phase services in the amounts listed below, subject to Schedule B and any other applicable terms of this Energy Savings Guarantee:

Year One through Three: $0.00 (included in Construction Phase Contract Sum) Year Four and Beyond: TBD.
(b) Customer may cancel the Guarantee Phase services on any anniversary of the commencement of Guarantee Services, or at the end of Customer’s fiscal year. If Customer cancels these services, WES reserves the right to cancel the Energy Savings Guarantee as outlined in this Exhibit 4.

Exhibit 4-2. CUSTOMER’S COMPLIANCE WITH FACILITIES MAINTENANCE

CHECKLIST
(a) The Parties acknowledge and agree that WES has entered into this Contract in reliance upon the prospect of earning compensation, as set forth on Schedule B and Exhibit 4-1. (b) The Parties further acknowledge and agree that any guaranteed energy savings would not likely be obtained unless certain procedures and methods of operation designed for energy conservation shall be implemented and followed by Customer on a regular and continuous basis. (c) Customer agrees that it shall adhere to, follow and implement the energy conservation procedures and methods of operation to be set forth in Schedule 1-A. (d) Customer agrees that WES shall have the right once a month, with prior notice, to inspect the Premises to determine if Customer is complying, and has complied, with its obligations as set forth above in Exhibit 2-2(c). For the purpose of determining Customer’s compliance, the checklist to be set forth on Schedule 1-A-6, as completed and recorded by WES during its monthly inspections, shall be used to measure and record Customer’s compliance. Customer shall make the Premises available to WES for and during each monthly inspection and shall have the right to witness each inspection and the recordations on the checklist.

Exhibit 4-3. UPGRADING OR ALTERING CUSTOMER’S EQUIPMENT (a) Subject to Customer’s prior written approval, which shall not be unreasonably withheld, WES shall at all times have the right (but not the obligation) to change the Equipment, revise any procedures for the operation of the Equipment or implement other energy saving actions for the Premises, provided that:
(1) WES complies with the standards of comfort and services set forth in Schedule 1-A-3;
(2) such modifications or additions to, or replacement of, the Equipment, and any operational changes or new procedures, are necessary to enable WES to achieve the energy savings for the Premises; and
(3) any cost incurred relative to such modifications, additions or replacement of the Equipment, or operational changes or new procedures shall be the responsibility of WES. 356
(b) All modifications, additions or replacements of the Equipment or revisions to operating or other procedures shall be described in a supplemental Schedule(s) to be provided to the Customer for approval, which shall not be unreasonably withheld, provided that any replacement of the Equipment shall be new and have equal or better potential to reduce energy consumption for the Premises than the Equipment being replaced. WES shall update any and all software to be used in connection with the Equipment in accordance with the provisions of Section 11.1. All replacements of and alterations or additions to the Equipment shall become part of the Equipment described in the Scope of Work.

Exhibit 4-4. MATERIAL CHANGES
(a) Material Changes Defined. A Material Change shall include any change in or to the Premises, whether structural, operational or otherwise in nature which reasonably could be expected, in the reasonable judgment of WES, to increase or decrease annual energy consumption in accordance with the provisions and procedures set forth in Schedule 4-B, by at least 0.5% after adjustments for climatic variations. Actions by the Customer which may result in Material Change include but are not limited to the following:
(1) manner of use of Premises by the Customer; or
(2) hours of operation for the Premises or for any equipment or energy-[ and water-]using systems operating at the Premises; or
(3) permanent changes in the comfort and service parameters set forth in Schedule 1-A-3; or
(4) occupancy of the Premises; or
(5) structure of the Premises; or
(6) types and quantity of equipment used at the Premises; or (7) modification, renovation or construction at the Premises; or (8) the Customer’s failure to provide maintenance of or repairs to the Equipment in accordance with Schedule 1-A-5; or
(9) any other conditions, other than climate, affecting energy use at the Premises.
(b) Reported Material Changes; Notice by Customer. The Customer shall use its best efforts to deliver to WES a written notice describing all actual or proposed Material Changes in the Premises or in the operation of the Premises at least thirty (30) days before any actual or proposed Material Change is implemented or as soon as is practicable after an emergency or unplanned event. Notice to WES of Material Changes caused by a bona fide emergency or other situation which precludes advance notification shall be deemed sufficient if given by the Customer within thirty (30) hours after having actual knowledge that the event constituting the Material Change occurred or was discovered by the Customer to have occurred.
(c) Unreported Material Change. In the absence of any Material Changes in the Premises or in their operations, the baseline energy consumption as set forth in Schedule 4-A should not change more than two percent (2%) during any month from the projected energy use for that month, after adjustments for changes in climate conditions. Therefore, if energy consumption for any month as set forth in Schedule 2-A deviates by more than two percent (2%) from the energy consumption of the same month of the preceding year after adjustments for changes to climatic conditions, then such deviation shall be timely reviewed by WES to ascertain the cause of deviation. WES shall report its findings to the Customer in a timely manner and WES shall determine what, if any, adjustments to the baseline will be made in accordance with the provisions set forth in Schedule 4-B. 357
Exhibit 4-5. GUARANTEED ENERGY SAVINGS
(a) WES guarantees that Customer will save 890,552 kWh and 22,479 therms annually during a 3-year Guarantee Term. The solar PV generation is derated by 0.5% annually for Years 2 and 3 to account for normal degradation of the solar panels. The total guaranteed savings for years 2 and 3 are shown below:

Year 1 890,552 kWh 22,479 therms
Year 2 888,295 kWh 22,479 therms
Year 3 886,050 kWh 22,479 therms
(1) The City and WES agree that stipulated savings of 439,225 kWh and 22,479 therms for the HVAC replacements, controls upgrades, retro-commissioning, roof replacement and microturbine refurbishment. No further tracking of these savings shall take place. (2) The Customer and WES agree that a stipulated utility bill savings of $20,641 from the Water Meter ECM is achieved as guaranteed. The key performance indicator will be confirmation of the reduced fixed charges on the City's water bills once the smaller meters are installed. No further tracking or monitoring of this savings shall take place. (3) International Performance Measurement and Verification Protocol Option B – Fully Measured Retrofit Isolation will be utilized to verify annual electric production of 460,538 kWh from the Solar PV measure following the completion of the Scope of Work in Year 1. This guarantee comprises 90% of the total estimated generation from the PV measure, as well as a 2.0% degradation rate for the module’s first year. The guaranteed savings for subsequent years will be derated by 0.5% annually to account for normal degradation of the PV system. Post installation energy consumption will be compared to baseline energy consumption in City’s Premises as described in Schedule 2-B. Guaranteed solar PV production is shown in the following table:

Year 1 451,327 kWh
Year 2 449,070 kWh
Year 3 446,825 kWh
Exhibit 4-6. Savings Reporting and Reconciliation. No more than eighteen (18) months following Project Final Completion, WES shall provide to Customer a savings report identifying the Actual energy savings achieved during the installation period as well as a period of twelve (12) consecutive months during this period following Project Final Completion. The total Actual energy savings and Energy Savings Guarantee are defined as:
(a) Actual Energy [or Water] Savings = Construction Period Savings + Performance Period Savings x Guarantee Term
Where: Performance Period savings is savings from a period of twelve (12) consecutive months during the period following Project Final Completion (b) Energy [or Water] Savings Guarantee = Annual Guarantee Amount x Guarantee Term
(c) In the event that the Actual Energy Savings is in excess of the energy Savings Guarantee, the energy Savings Guarantee shall be deemed satisfied. No further tracking shall be conducted by WES, nor shall any additional services be performed. (d) In the event that Actual energy savings falls short of the Energy Savings Guarantee, WES shall reimburse Customer for the full amount of the difference between the Actual Energy 358
and the Energy Savings Guarantee, as described in Schedule 4-B, for the consecutive 12-month period identified. In addition, WES shall, at its discretion, perform one of the following actions:
(1) Reimburse Customer for all remaining 12-month periods remaining in the Guarantee Term. The reimbursement for the remaining 12-month periods in the Guarantee Term will use an annual five percent (5%) discount rate to account for the present value of the funds being reimbursed.
(2) Continue to track savings for the 12 months immediately following the previous 12-month guarantee period. At the conclusion of this 12-month term Guarantee Term, WES shall provide to Customer a savings report identifying the Actual Energy Savings achieved during the Term. (A) In the event that the most recent Actual Energy Savings is in excess of the Energy Savings Guarantee, the Energy Savings Guarantee shall be deemed satisfied. No further tracking shall be conducted by WES, nor shall any additional services be performed. (B) In the event that additional savings above guarantee are achieved in any year during the guarantee period, these savings can be used to offset shortfalls in savings in other years. If WES has written a savings shortfall check to the Customer, and later Total Dollar Savings exceed the annual guarantee amount, Customer will reimburse WES up to the amount of WES’s shortfall check, to the extent that the shortfall is made up by savings in excess of the guarantee. (C) In the event that the most recent Actual Energy Savings falls short of the Energy Savings Guarantee, WES shall reimburse Customer for the full amount of the difference between the Actual Energy and the Energy Savings Guarantee for the consecutive 12-month period identified. In addition, WES shall, at its discretion, perform one of the actions described in Exhibit 4-6(d)(1) or Exhibit 4-6(d)(2) above.

Exhibit 4-7. Utility Rates Used to Calculate Savings. The utility rates listed in the table below will be used to determine:
(a) The amount of dollar savings achieved each year for purposes of measuring the program’s performance relative to the Energy Savings Guarantee and (b) The dollar amount that WES shall compensate the Customer in the event that there is an Energy shortfall
Table 1 - Utility Rates used for determining Actual Energy Program Year Electric Rate with Demand Natural Gas
Electric Rate without
Demand
0 $0.37843 / kWh (winter
months)
$0.28590 / kWh (summer
months)
$13.37 / billed kW (winter
months)
$9.30 / billed kW (summer
months)
$1.6803 / Therm
$0.37785 / kWh (all
months)
Future Years Year zero rate adjusted for current year’s CPI or future year’s actual rate, whichever is greater.
359
Notes:

Exhibit 4-8. Requirements of Customer: To facilitate successful achievement of the Energy Savings Guarantee, Customer agrees to:
(a) Provide WES continued access to all solar PV data acquisition systems. WES requires access to continually monitor production. Provide WES hourly production data for solar PV systems.
(b) Provide WES access to all buildings covered under the Guarantee; all temperature control and energy management systems which control part or all of the buildings covered under the Guarantee; personnel with responsibility for operating and/or managing any of the above buildings; and construction documents, equipment inventories, and other documents that may be helpful in evaluating a cause for adjustment.
360
SCHEDULE 4-A

BASELINE ENERGY CONSUMPTION
An accurate measurement of Baseline is necessary to facilitate accurate measurement and verification of the Energy Savings Guarantee. Baseline conditions generally include physical, operational, and energy and water use data on the facility and systems. This Schedule identifies baseline performance and operating factors that influence energy consumption, and how their values will be determined through observations and measurements. The Schedule also demonstrates the calculated Baseline for the Customer’s Premises.

This Baseline shall be used to determine whether Actual Energy exceeds or falls short of the Energy Savings Guarantee.

Schedule 4-A-1 Solar PV: Install Solar PV.
(a) M&V Option: IPMVP Option B – Fully Measured Retrofit Isolation (b) Applicable Locations. The following facilities will utilize this M&V methodology for the purposes of measuring PV generation.
(1) Motor Pool, 1700 D St., South Lake Tahoe, CA, 96150 (2) Police Station, 1352 Johnson Blvd, South Lake Tahoe, CA, 96150 (c) Definition of Baseline. The baseline is that set of parameters that describes the PV generation during the baseline year.
(1) Energy and Water Baseline Development. The baseline consumption of any new PV installation is the energy performance of the facility prior to the installation of this ECM. Sites with no prior PV installations have a baseline of zero production. 361
SCHEDULE 4-B

SAVINGS MEASUREMENT & CALCULATION FORMULAE

METHODOLOGY TO ADJUST BASELINE
Schedule 4-B-1.Savings Measurement (IPMVP Option B):
(a) International Performance Measurement and Verification Protocol Option B verification techniques measure savings at a system level where key performance factors load and hours of use are directly measured.
(b) Solar PV: The solar production will be tracked utilizing the system portal.

Production data cost impacts will be analyzed using the outlined blended rate.

Schedule 4-B-2.Determination of Dollars Saved.
(a) Total Annual $ Savings = ∑ (Energy/Demand/Water Savings x Contractual Energy/Demand Rates)
Where:

Contractual Energy Rates = Utility rates defined in Exhibit 4-7.

Schedule 4-B-3.Adjustments Methodology for Material Changes. (a) For Adjustments necessitated by Material Changes, the following procedure shall be followed:
(1) Customer will notify WES of planned changes in building use or function. (2) WES and Customer will review the changes planned and determine if these changes are likely to cause a change in energy and water use that would exceed the threshold limits defined in Exhibit 2-4. If the expected changes are less than the threshold, the effect will be ignored and no adjustment will be used.
(3) If the changes are expected to raise or lower energy and water consumption more than the threshold limits defined in Exhibit 4-4, the building will be sub-metered by Customer for both pre- and post-use change periods until the effect on energy has been determined. (A) For changes to existing buildings that are metered, a linear regression will be performed to correlate heating- and cooling-degree days to the pre-change period’s energy usage for the building, similar to the procedure performed to adjust the base year for weather. The post-change heating- and cooling-degree days will then be applied to the pre-change regression equation to determine what the post-change period’s use would have been if no change had occurred. The difference between this use and the period’s actual use will be, whether positive or negative, used as the adjustment, shown as term “M” in the equations in the Measurement and Adjustments Methodology section in this Schedule.
(B) If the entire effect of the change is independently sub-metered, such as the addition of a building on an existing utility service, the sub-metered energy and water use for that building for each guarantee period will be used to determine the baseline adjustment, shown as term “M” in the equations in the Measurement and Adjustments Methodology section in this Schedule. (C) If the method for determining adjustment described in the previous paragraph is agreed to be not appropriate or too complex for a specific adjustment by the Customer and WES, Customer and WES will develop a separate measurement and verification (M&V) plan to track the effect of the building change.
362
(4) If the changes occur at a time when the impact would affect a fraction of that year’s energy and water use for an existing building or system, the procedure described in the previous section will be performed separately for the year in which the change occurred and the subsequent year to accurately account for the effect of the change in both years. The subsequent year’s adjustment will then be used for all future years.

Schedule 4-B-4.Adjustments for Mild Weather Season During Performance Period. (a) For performance periods with mild weather season, WES may elect to normalize both the baseline and the Guaranteed Period Consumption for a specific utility to Typical Meteorological Year (TMY3) weather data available for download from the National Renewable Energy Laboratory. (b) A mild weather season is defined as a heating or cooling season containing fewer heating or cooling degree days that a Typical Meteorological Year, evaluated using TMY3 weather data. (c) The TMY3 weather data set will be for the weather station defined in Truckee Airport, Truckee, CA or closest station. Methodology used to normalize consumption is defined in Schedule 4-B-4.
(d) For Solar PV generation measures, The actual irradiance will be compared against the average TMY3 weather data that was sourced from solar irradiation data modeled by the National Renewable Energy Laboratory (NREL) for the 10 square km grid surrounding the project site. Weather Adjustments will follow the following equation:

Weather Adjusted Guarantee = Simulated Guarantee * Weather Adjustment Ratio 𝑊𝑊𝑊𝑊𝑊𝑊𝑊𝑊ℎ 𝑒𝑒 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝐴𝐴 𝑅𝑅 𝑅𝑅𝑅𝑅 = 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑒𝑒 𝑒𝑒𝑒𝑒𝑒𝑒 𝑢𝑢 𝑖𝑖 𝑝𝑝 𝑝𝑝𝑝𝑝 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑒𝑒 𝑒𝑒𝑒𝑒𝑒𝑒 𝑢𝑢 𝑎𝑎 𝑖𝑖 𝑇𝑇𝑇𝑇𝑇𝑇
363
EXHIBIT 5

PAYMENT BOND FORM
WHEREAS, the City of South Lake Tahoe, State of California, and ___________________________________________________________________ hereinafter designated as "Principal" have entered into an Agreement for the furnishing of all materials, labor, services and equipment necessary, convenient and proper to:
_________________________________________________________________________ __________________________________________________________________________ pursuant to the said Agreement dated __________________, 20__, and all of the documents attached thereto and incorporated by reference, becoming a part of said Agreement, are hereby referred to and made a part hereof; and,
WHEREAS, said Principal is required by California law, including, without limitation, Part 6 (commencing at §8000), Division 4 of the California Civil Code, to furnish a Bond in connection with said Agreement.

NOW THEREFORE, we, the Principal and __________________________________ as Surety, are held and firmly bound unto the City of South Lake Tahoe in the penal sum of:
_____________________._ Dollars ($ ________________), lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT if said Principal, its subcontractors, heirs, executors, administrators, successors or assigns shall fail to pay any of the persons named in §9100 of the California Civil Code, any amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, any prevailing wages due and penalties incurred pursuant to Sections 1774, 1775, 1813 and 1815 of the California Labor Code or any other operative sections of the California Labor Code as may be applicable, any amounts required to be deducted or withheld from the wages of employees of the Principal and its subcontractors for payment to the United States Government and/or to the State Franchise Tax Board with respect to such work and labor, the Surety will pay for the same, in an amount not exceeding the total sum herein above specified, and also, in case suit is brought upon this Bond, a reasonable attorney's fee to be fixed by the court. This Bond shall inure to the benefit of any of the persons named in Section 9100 of the California Civil Code, so as to give the right of action to such persons or their assigns in any suit brought upon this Bond.

It is further stipulated and agreed that the Surety on this Bond shall not be exonerated or released from the obligation of this Bond by any change, extension of time for performance, addition, deletion, alteration, or modification in, to, or any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described or pertaining to or relating to the furnishing of labor, materials, or equipment therefore, nor by any 364
change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement, or Bond, nor by any conditions precedent or subsequent in the Bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the Bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the Bond, and that this Bond be construed most strongly against the Surety and in favor of all persons for whose benefit such Bond is given, and under no circumstances shall the Surety be released from its obligations hereunder by reason of any breach of contract between the City of South Lake Tahoe and said Principal or on the part of any obligee named in such Bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the California Civil Code and has not been paid the full amount of its claim, and that Surety does hereby waive notice of any such change, extension of time, addition, deletion, alteration, or modification herein mentioned.

The Surety, by the execution of this Bond, represents and warrants that this Bond has also been duly executed by the Principal with proper authority, and the Surety hereby waives any defense which it might have by reason of any failure by the Principal to execute or properly execute this Bond.

IN WITNESS WHEREOF two identical counterparts of this instrument each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named on the ____day of __________________________, 20__.

PRINCIPAL:
____________________________________
Signature
____________________________________
Name
____________________________________
Title
____________________________________
Address
SURETY:
____________________________________
Signature
____________________________________
Name
____________________________________
Title
____________________________________
Address
365
NOTE TO SURETY COMPANY:

The following form of acknowledgement should be used. If any other form of acknowledgement is used, there must be submitted a certified copy of unrevoked resolution of authority for the attorney-in-fact.

SURETY COMPANY ATTORNEY-IN-FACT

STATE OF CALIFORNIA )
COUNTY OF EL DORADO ) ss.
)
Civil Code § 1189
On _______________________________________, before me, the undersigned, a Notary Public in and for the State, personally appeared _________________________________, known to me to be the duly authorized Attorney-in-Fact of the corporate Surety named in the within instrument, known to me to be authorized to execute that instrument on behalf of said corporation, known to me to be the person whose name is subscribed to such instrument as the Attorney-in-Fact of said corporation, and acknowledged to me that he (she) subscribed the name of said corporation thereto as Surety, and his (her) own name as Attorney-in-Fact and that said corporation executed the same.

WITNESS MY HAND AND OFFICIAL SEAL:
(SEAL)
__________________________________________
Notary Public for the State of California.

Acknowledgement by Attorney-in-Fact must be attached.

Corporate seals of Principal and Surety must be attached.

END OF DOCUMENT 00610
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
366
367
EXHIBIT 6

PERFORMANCE BOND FORM
WHEREAS, the City of South Lake Tahoe, State of California, and _______________________________________________________hereinafter designated as "Principal" have entered into an Agreement for the furnishing of all materials, labor, services and equipment necessary, convenient and proper to:
____________________________________________________________________________ ____________________________________________________________________________ pursuant to the said Agreement dated __________________,20__, and all of the documents attached thereto and incorporated by reference, becoming a part of said Agreement, are hereby referred to and made a part hereof; and,
WHEREAS, said Principal is required according to the terms of said Agreement and applicable California State law, to furnish a Bond for the faithful Performance of said Agreement.

NOW, THEREFORE, we, the Principal and ____________________________________ as Surety, are held and firmly bound unto the City of South Lake Tahoe in the penal sum of:
___________________________Dollars ($________________), lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bounden Principal, Principal’s heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and faithfully perform the covenants, conditions and agreements in the said Agreement and any alterations made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of South Lake Tahoe, its employees, council members and agents, as therein stipulated, then this obligation shall be null and void; otherwise it shall be and remain in full force and effect.

If the City of South Lake Tahoe shall provide notice that it considers the Principal to be in default, Surety, upon receipt of such written notice, shall, within thirty (30) days, conduct any and all investigations that it deems necessary and appropriate to perform. Surety agrees to do so in order to be in a position to respond timely and efficiently, with the best interests of the overall completion of the Project as the primary goal, and without detriment to the Project or the City of South Lake Tahoe, should the City of South Lake Tahoe elect to exercise its right to terminate the Principal’s right to proceed due to default.

If the City of South Lake Tahoe issues a written notice of termination for default, Surety shall, 368
within fifteen (15) calendar days, tender a written program to City of South Lake Tahoe which comprehensively details Surety’s proposed completing contractor, its personnel and the manner in which the Surety will immediately honor its performance bond obligations.

The time for completion of the Project shall not be extended as a result of the notice to the Surety, the election by City of South Lake Tahoe to terminate Principal’s right to proceed for default, and/or the time it takes Surety to act as required hereunder.

Surety agrees that in responding to any such notice of default of its Principal, Surety shall not be entitled to tender as its completion contractor the Principal or any entity owned, controlled or affiliated with Principal. The response by Surety to City of South Lake Tahoe shall include whether the Surety intends to use the key project personnel of Principal as part of the staff of the Completing Contractor, and the consent by City of South Lake Tahoe of the right to use some, any or all of those proposed individuals shall be at the sole and absolute discretion of the City of South Lake Tahoe. No claim shall be made arising from the good faith exercise by City of South Lake Tahoe of the discretion denying any such request.

As a condition precedent to the satisfactory completion of the said Agreement, the above obligation shall hold good for the maximum period of time allowed by applicable law (including all statutes of limitation or repose) and commensurate with the obligations owed by the Principal to the City of South Lake Tahoe, during which time, if the Principal, Principal’s heirs, executors, administrators, successors or assigns shall fail to make full, complete and satisfactory repair and replacements or totally protect the City of South Lake Tahoe from loss or damage made evident during said period, the above obligation shall be and remain in full force and effect.

The terms and conditions of the Agreement between the Principal and the City of South Lake Tahoe are expressly incorporated into this Performance Bond as though set forth in full.

And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, addition or deletion to the terms of the said Agreement, or to the Work to be performed thereunder, shall in any way affect its obligations on this Bond, and the Surety hereby waives notice of any such change, extension of time, alteration, addition or deletion to the terms of the said Agreement or to the Work. And the said Surety, for value received, hereby stipulates and agrees to waive the benefits of California Civil Code Sections 2819 and 2845.

In the event suit is brought upon this Bond by the City of South Lake Tahoe and judgment is recovered, Surety shall pay all costs incurred by the City of South Lake Tahoe in such suit, including a reasonable attorney's fee to be fixed by the court in accordance with applicable statutory law.

IN WITNESS WHEREOF two identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety 369
above named on the _____day of ______________________, 20__.

SURETY COMPANY ATTORNEY-IN-FACT

STATE OF CALIFORNIA )
) ss

COUNTY OF EL DORADO )
Civil Code § 1189
On _______________________________________, before me, the undersigned, a Notary Public in and for the State, personally appeared _________________________________, known to me to be the duly authorized Attorney-in-Fact of the corporate Surety named in the within instrument, known to me to be authorized to execute that instrument on behalf of said corporation, known to me to be the person whose name is subscribed to such instrument as the Attorney-in-Fact of said corporation, and acknowledged to me that he (she) subscribed the name of said corporation thereto as Surety, and his (her) own name as Attorney-in-Fact and that said corporation executed the same.

WITNESS MY HAND AND OFFICIAL SEAL:
(SEAL)
__________________________________________
Notary Public for the State of California.

Acknowledgement by Attorney-in-Fact must be attached.

Corporate seals of Principal and Surety must be attached.

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
371
EXHIBIT 7
WES’ INSURANCE CERTIFICATES AND ENDORSEMENTS
372
EXHIBIT 8

GRANT AWARD REQUIREMENTS
373
8/03/2023
374
375
376
377
378
379
380
381
382
383
384
385
386
Irina Kolesnikova 8/03/2023
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
EXHIBIT 9

SCOPES OF WORK
ECM-3: Building Automation Systems:

This work is to be performed at the following building:

1. Furnish and install new Johnson Controls Facility Explorer building automation system including a JACE at each building listed below, plus additional controllers as necessary to incorporate the listed points.

2. Provide all electrical labor and material necessary for a complete system, including 120V supply power for controls cabinets.

3. External IP addresses shall be provided by the City.

4. Provide web supervisor for multi-building integration, including mobile friendly graphics and trend data.

5. Provide remote alarm email capabilities.

6. Provide software maintenance license for 3 years for JACEs and web supervisor.

7. Existing Pelican thermostats at Explore Tahoe to be removed and returned to owner.

8. Sequence of Operations shall be approved by Owner before implementation Individual building scopes:

Parking Garage:
(5) Snowmelt Boilers:
(5) Existing Snowmelt Boilers:
430
• (5) Boiler supply temperature (AI) • (5) Boiler return temperature (AI) • (5) Boiler temperature setpoint (AO) • (5) Boiler enable/disable (BO) • (5) Boiler alarm (BI) • (5) Boiler primary pump enable/disable (BO) • Snowmelt Header Supply Temperature (AI) • Snowmelt Header Return Temperature (AI) • (4) Snowmelt pump enable/disable (BO) • (4) Snowmelt pump status (BO) • Snowmelt slab temperature (AI) • Outside air temperature (AI) Explore Tahoe Visitor Center: (3) Existing Snowmelt Boilers: • (3) Boiler supply temperature (AI) • (3) Boiler return temperature (AI) • (3) Boiler temperature setpoint (AO) • (3) Boiler enable/disable (BO) • (3) Boiler alarm (BI) • (3) Boiler primary pump enable/disable (BO) • (1) Existing Heating Boiler: • (1) Boiler supply temperature (AI) • (1) Boiler return temperature (AI) • (1) Boiler temperature setpoint (AO) • (1) Boiler enable/disable (BO) • (1) Boiler alarm (BI) • (1) Boiler primary pump enable/disable (BO) • Snowmelt header supply temperature (AI) • Snowmelt header return temperature (AI) • Snowmelt slab temperature (AI) • (2) Snowmelt pump enable/disable (BO) • (2) Snowmelt pump status (BI) • Condenser water supply temperature (AI) • Condenser Water Return Temperature (AI) • (2) Condenser water pump enable/disable (BO) • (2) Condenser water pump status (BI) • Cooling tower enable/disable (BO) • Cooling tower status (BI) • Cooling tower sump low level (BI) • Cooling tower sump high level (BI) • Cooling tower fill valve (BO) • Cooling tower drain valve (BO) • (5) Water source heat pump cooling command (BO) 431
• (5) Water source heat pump heating command (BO)
• (5) Water source heat pump fan enable (BO)
• (5) Water source heat pump fan status (BI)
• (5) Water source heat pump compressor status (BI)
• (5) Zone thermostats (AI)
• (5) Zone CO2 sensors (AI)
• Outside air temperature (AI)
Ice Arena:
• Integrate factory BACnet controllers for the following points:
o (3) Ice chiller compressor status
o Gas cooler status
o Brine supply temperature
o Brine return temperature
o Ice slab temperature
o (2) Brine pump status
o (2) Underfloor pump status
o (2) Glycol pump status
o (2) Snowmelt pump status
o Dehumidification unit fan status
o Dehumidification unit return temperature
o Dehumidification unit return relative humidity
o Dehumidification unit supply temperature
o Dehumidification unit supply humidity
• Outside air temperature (AI)
• (8) Exhaust fan enable/disable (BO)
• (8) Exhaust fan status (BI)
• (2) Carbon monoxide sensors (AI)
Police Station:
• Integrate factory BACnet controllers for the following points:
o (13) Multi zone damper position
o Multi zone air handler hot deck temperature
o Multi zone air handler cold deck temperature
o Multi zone air handler fan enable/disable
o Multi zone air handler fan status
o (13) zone temperatures
o (2) Multi zone boiler enable/disable
o (2) Multi zone boiler status
o Multi zone boiler supply temperature
o Multi zone boiler return temperature
o Multi zone hot water pump status
o Multi zone chiller enable/diable
o Multi zone chiller status
o Multi zone chiller supply temperature
o Multi zone chiller return temperature
432
o Multi zone chilled water pump status
• Integrate factory BACnet controllers for the following points:
o Roof top unit fan enable/disable
o Roof top unit fan speed
o Roof top unit fan status
o Roof top unit gas heat enable/disable
o Roof top unit DX cooling enable/disable
• (6) Exhaust fan enable/disable (BO)
• (6) Exhaust fan status (BI)
• (3) Unit heater enable/disable (BO)
• (3) Unit heater status (BI)
• (3) Unit heater zone temperature (AI)
• (4) Split system fan enable/disable (BO)
• (4) Split system cooling enable/disable (BO)
• (4) Split system zone temperature (AI)
• Outside air temperature (AI)
Assumptions:

1. The above scopes of work assume that the associated mechanical scopes of work in ECM-1B, and 12, will be completed in a parallel manner in order to have the proper factory controllers available for integration.

Exclusions:

1. Fire alarm or life safety scope

2. Work to bring existing mechanical and associated components, pumps and devices to operating condition

3. Does not include replacement of existing pumps, motors, speed drives, valves, dampers etc. These are all assumed to be in working order.

ECM-4 Pelican Integrations:

This work is to be performed at:

Fire Station 1
1252 Ski Run Blvd, South Lake Tahoe, CA, 96150
Fire Station 2
2951 Lake Tahoe Blvd, South Lake Tahoe, CA, 96150
Art Building
3062 Lake Tahoe Blvd, South Lake Tahoe, CA, 96150
433
Museum
3058 Lake Tahoe Blvd, South Lake Tahoe, CA, 96150
Fire Training/Scout Lodge
1195 Rufus Allen Blvd, South Lake Tahoe, CA1 96150
Services Center
1052 Tata Ln, South Lake Tahoe, CA, 96150
Motor Pool:
1700 D St., South Lake Tahoe, CA, 96150
Public Works:
1740 D St., South Lake Tahoe, CA, 96150
Ice Arena
1176 Rufus Allen Blvd, South Lake Tahoe, CA, 96150
This work includes:

New Equipment

1. Install a Niagara driver to integrate the existing Pelican thermostats to Facility Explorer building automation system. The following points shall be included:
a. Heat/Cool Mode
b. Fan Status
c. Zone Temperature

2. Existing Pelican thermostats assumed to be in good working order and connected to the external Pelican servers.

3. The following list has the number of Pelicans per building:

Fire Station 1: Quantity (2)
Fire Station 2: Quantity (2)
Art Building: Quantity (1)
Museum: Quantity (1)
Fire Training: Quantity (1)
Services Center: Quantity (2)
Motor Pool: Quantity (4)
434
Public Works: Quantity (6)
Ice Arena: Quantity (8)
Exclusions

1. Fire alarm or life safety scope

2. work to bring existing mechanical and associated components, pumps and devices to operating condition

3. Does not include replacement of existing pumps, motors, speed drives, valves, dampers etc. These are all assumed to be in working order.

4. Assumes existing thermostats and panels are all at ADA code compliant height. Relocation is not included in this integration price.

ECM-5 Retrocommissioning:

This work is to be performed at:

South Lake Tahoe Parking Garage
1 Bellamy Ct., South Lake Tahoe, CA 96150
Explore Tahoe Visitor Center
4114 Lake Tahoe Blvd, South Lake Tahoe, CA 96150
South Lake Tahoe Ice Arena
1176 Rufus Allen Blvd, South Lake Tahoe, CA 96150
South Lake Tahoe Police Station
1352 Johnson Blvd, South Lake Tahoe, CA 96150
Fire Station 1
1252 Ski Run Blvd, South Lake Tahoe, CA, 96150
Fire Station 2
2951 Lake Tahoe Blvd, South Lake Tahoe, CA, 96150
Art Building
3062 Lake Tahoe Blvd, South Lake Tahoe, CA, 96150
Museum
3058 Lake Tahoe Blvd, South Lake Tahoe, CA, 96150
435
Fire Training/Scout Lodge
1195 Rufus Allen Blvd, South Lake Tahoe, CA1 96150
Services Center
1052 Tata Ln, South Lake Tahoe, CA, 96150
Motor Pool
1700 D St., South Lake Tahoe, CA, 96150
Public Works:
1740 D St., South Lake Tahoe, CA, 96150
Airport
1901 Airport Rd, South Lake Tahoe, CA, 96150
This work includes:

Scope of Work

1. Evaluation of existing HVAC systems to determine and document existing operating conditions.

2. Pre-functional testing on existing equipment to determine performance baseline

3. Test and balance air and water distribution systems

4. Evaluate new building performance requirements based on facility function and occupancy with respect to local codes and industry standards

5. Identify broken or misaligned equipment

6. Recommission existing controls to original or new design intent as necessary for efficiency improvements
o Only existing sensors, thermostats, and control devices are included in scope o Schedules, temperature setpoints, and all operational parameters are included in scope

7. Identify faulty wiring and/or electrical contacts

8. Functional testing and documentation on post-retrofit conditions to confirm successful implementation

9. Provide as-built documentation on all retrofitted systems Exclusions

1. Replacement or repair of non-functional equipment or wiring.

2. Any BAS programming or modification not already included in ECM-3.

ECM-6 Police Station PV:

This work is to be performed at:
436
South Lake Tahoe Police Station
1352 Johnson Blvd, South Lake Tahoe, CA, 96150
Scope of Work

1. Install 172.96 kWDC Fixed-tilt carport canopy solar PV system in the Police Station parking lot.

System size to be confirmed upon final design.

2. All necessary equipment, and temporary protection to meet project schedule.

3. Demolition of site obstructions including tree removal, light pole and light pole base removal and parking stop removal which interferes with the new installation.

4. Trenching or boring as required for electrical and communication wire in conduit, including patching, backfill and repair.

5. Furnish all labor, material, excavation, reinforcement and conveyance to set acceptable concrete foundations/footings for the solar canopies and ground-mount arrays. Foundation depths are assumed to be 12-14 feet. Depth greater than 14 feet are excluded.

6. Removal of/ furnishing of all excess and needed soil spoils.

7. ADA upgrades including regrading, repaving, ramps, pavement markings and other hardscape features required to meet ADA code compliance for this scope of work only. Existing hardscape conditions required to meet ADA code compliance are not included and will be the owner's financial responsibility.

8. Obtain necessary design approvals and permits required for the Customer & the AHJ.

9. Coordinate with utility for net-metering equipment and installation to meet current electrical code and electric utility requirements

10. Furnish and install all electrical mounting equipment necessary for a complete system installation.

11. Furnish and install all control system wiring and all electrical distribution wiring.

12. Furnish and install equipment required for proper grounding.

13. Furnish and install all solar panels and inverters required per system design. Subject to change upon final design.

14. Furnish and install all DC and AC wiring, conduit and equipment.

15. Design, furnish and install array lighting for canopy systems and integrate into existing lighting controls to be compliant with CA Title 24

16. Install Data Acquisition System (DAS) that monitors all solar PV performance and provide remote access to Owner. DAS system will include a cellular data subscription and access to monitoring online portal for 3 years.

17. Cleanup and removal of debris.

18. Contractor to repair any damage done to existing conditions during installation.

19. Provide warranty execution instructions to owner.

20. Testing and commissioning between manufacturer and utility.

21. Demonstration of system operation to owner.

22. Inclusion of a 3-year solar module cleaning contract. Two cleanings per year.

23. Solar subcontractor to provide the following warranties directly to the Owner: 1-year service warranty and 3-year O&M contract.

24. Solar subcontractor O&M scope is limited to the following scope of work:
a. Arrays
i. Inspect racking hardware and components for abnormal wear or excessive corrosion. ii. Inspect any roof or building penetrations for signs of damage or compromised seals. iii. Inspection of structural system for any abnormal movement or settling 437
b. Modules
i. Inspect top side of modules and identify any broken modules found. ii. Visually inspect bottom side of modules looking for discoloration or any other abnormalities.
iii. Visually inspect module wiring and connectors
c. Module Mounting
i. Visually inspect module mounting hardware for aligned torque markings. ii. Spot check panel hardware torquing
d. String Wiring
i. DC wiring not installed in a raceway will be inspected for chaffing, deterioration, and proper MC connections.
ii. Inspect for proper wire management
e. String Inverters or Central Inverters if applicable. i. Visually inspect PV equipment enclosures for water intrusion. ii. Inspect wires for discoloration and correct configuration. iii. Inspect filters.
iv. Check torque on wire terminations.
f. Combiner Boxes
i. Visually inspect PV equipment enclosures for water intrusion. ii. Inspect wires for discoloration and correct configuration. iii. Check torque on wire terminations.
g. Sub Combiner Boxes
i. Visually inspect PV equipment enclosures for water intrusion ii. Inspect wires for discoloration and correct configuration. iii. Check torque on wire terminations.
h. Disconnect Switches
i. Visually inspect PV equipment enclosures for water intrusion. ii. Inspect wires for discoloration and correct configuration. iii. Check torque on wire terminations.
i. DAS
i. Visually inspect PV equipment enclosures for water intrusion. ii. Check torque on wire terminations.
j. Testing
i. Analyze DC string data from 3rd party monitoring portal (if available from customer) ii. Perform Infrared scan on inverters, combiner boxes, disconnects, and PV switchgear. k. Reporting
i. Produce written report based on site analysis.
ii. Identify issues and recommendation
iii. Provide system operating and maintenance training to owner.

Exclusions:

3. Bringing existing conditions not associated with this scope of work up to code compliant status

4. Repairs to existing hardscapes not affected by this scope of work

5. Repairs to existing electrical equipment. It is assumed these are in working order

6. Foundations deeper than 14 ft. True foundations depth to be determined after award and completed geotechnical report.

7. Underground bolder excavation, dewatering, or unforeseen subterranean conflicts 438

8. Damage to unmarked private underground utilities (public locates are included in scope of work)

9. Costs associated with tree removal permits

10. Nature or environmental studies associated with solar construction and tree removal scope of work.

11. Costs for background checks

12. Watertight carport canopy panel installment.

ECM-7 Motor Pool PV:

This work is to be performed at:

South Lake Tahoe Motor Pool Building
1700 D St., South Lake Tahoe, CA, 9150
Scope of Work

1. Install 242.52 kWDC Fixed-tilt carport canopy solar PV system in the Motor Pool parking lot. System size to be confirmed upon final design.

2. All necessary equipment, and temporary protection to meet project schedule.

3. Demolition of site obstructions including tree removal, light pole and light pole base removal and parking stop removal which interferes with the new installation.

4. Trenching or boring as required for electrical and communication wire in conduit, including patching, backfill and repair.

6. Removal of/ furnishing of all excess and needed soil spoils.

8. Obtain necessary design approvals and permits required for the Customer & the AHJ.

9. Coordinate with utility for net-metering equipment and installation to meet current electrical code and electric utility requirements.

10. Furnish and install all electrical mounting equipment necessary for a complete system installation.

11. Furnish and install all control system wiring and all electrical distribution wiring.

12. Furnish and install equipment required for proper grounding.

13. Furnish and install all solar panels and inverters required per system design. Subject to change upon final design.

14. Furnish and install all DC and AC wiring, conduit and equipment.

15. Furnish and install balance of system equipment required for system design.

16. Design, furnish and install array lighting for canopy systems and integrate into existing lighting controls to be compliant with CA Title 24

17. Install Data Acquisition System (DAS) that monitors all solar PV performance and provide remote access to Owner. DAS system will include a cellular data subscription and access to monitoring online portal for 3 years.

18. Cleanup and removal of debris.
439

19. Contractor to repair any damage done to existing conditions during installation due to this scope of work.

20. Provide warranty execution instructions to owner.

21. Testing and commissioning between manufacturer and utility.

22. Demonstration of system operation to owner.

23. Inclusion of a 3-year solar module cleaning contract. Two cleanings per year.

24. Solar subcontractor to provide the following warranties directly to the Owner: 1-year service warranty and 3-year O&M contract.

25. Solar subcontractor O&M scope is limited to the following scope of work:
a. Arrays
i. Inspect racking hardware and components for abnormal wear or excessive corrosion. ii. Inspect any roof or building penetrations for signs of damage or compromised seals. iii. Inspection of structural system for any abnormal movement or settling b. Modules
i. Inspect top side of modules and identify any broken modules found. ii. Visually inspect bottom side of modules looking for discoloration or any other abnormalities.
iii. Visually inspect module wiring and connectors
c. Module Mounting
i. Visually inspect module mounting hardware for aligned torque markings. ii. Spot check panel hardware torquing
d. String Wiring
i. DC wiring not installed in a raceway will be inspected for chaffing, deterioration, and proper MC connections.
ii. Inspect for proper wire management
e. String Inverters or Central Inverters if applicable. i. Visually inspect PV equipment enclosures for water intrusion. ii. Inspect wires for discoloration and correct configuration. iii. Inspect filters.
iv. Check torque on wire terminations.
f. Combiner Boxes
i. Visually inspect PV equipment enclosures for water intrusion. ii. Inspect wires for discoloration and correct configuration. iii. Check torque on wire terminations.
g. Sub Combiner Boxes
i. Visually inspect PV equipment enclosures for water intrusion ii. Inspect wires for discoloration and correct configuration. iii. Check torque on wire terminations.
h. Disconnect Switches
i. Visually inspect PV equipment enclosures for water intrusion. ii. Inspect wires for discoloration and correct configuration. iii. Check torque on wire terminations.
i. DAS
i. Visually inspect PV equipment enclosures for water intrusion. ii. Check torque on wire terminations.
j. Testing
i. Analyze DC string data from 3rd party monitoring portal (if available from customer) 440
ii. Perform Infrared scan on inverters, combiner boxes, disconnects, and PV switchgear. k. Reporting
i. Produce written report based on site analysis.
ii. Identify issues and recommendation
iii. Provide system operating and maintenance training to owner.

Exclusions:

1. Bringing existing conditions not associated with this scope of work up to code compliant status.

2. Repairs to existing hardscapes not affected by this scope of work.

3. Repairs to existing electrical equipment. It is assumed these are in working order .

4. Foundations deeper than 14 ft.

5. Underground bolder excavation, dewatering, or unforeseen subterranean conflicts.

6. Damage to unmarked private underground utilities (public locates are included in scope of work).

7. Costs associated with tree removal permits.

8. Nature or environmental studies associated with solar construction and tree removal scope of work.

9. Watertight carport canopy panel installment.

ECM-8 Transformer Upgrade:

This work is to be performed at:

South Lake Tahoe Ice Arena
1176 Rufus Allen Blvd, South Lake Tahoe, CA 96150
South Lake Tahoe Airport
1901 Airport Rd, South Lake Tahoe, CA 96150
The existing transformers shall be replaced in a like-for-like manner with more efficient units. The sizes and locations are as follows:

Ice Arena:

Qty (1) 112.5 kVA
Qty (1) 45 kVA
Airport:

Qty (1) 75 kVA
Qty (1) 30 kVA
This work includes:

Demolition

1. Demolition and disposal of the existing electrical transformers:
a. Ice Arena : (1) 112.5 kVA transformer & (1) 45 kVA transformer with associated pads b. Airport : (1) 75 kVA transformer & (1) 30 kVA transformer with associated pads 441

2. Demolition and disposal of existing panelboards, circuit breakers, switches, wires, conduit, fittings, and accessories to accommodate new work.

New Equipment

1. Furnish and install the following new transformers (labor and material):
a. Ice Arena : (1) 112.5 kVA transformer & (1) 45 kVA transformer b. Airport : (1) 75 kVA transformer & (1) 30 kVA transformer

2. All necessary equipment, and temporary protection to meet project schedule.

3. Patching of existing with UL and NEC approved hardware and methods.

4. All testing and inspections shall be coordinated through Designer/Builder.

5. Shutdowns to be after hours.

6. Provide all layout as required to complete the work.

7. Provide competent technicians for commissioning assistance. Transformer commissioning must be completed by factory authorized personnel.

8. Confirm voltage and OCPD requirements of new mechanical equipment before making final connections.

9. Cleanup and removal of debris.

10. All lifting and rigging equipment.

11. Furnishing all labor, equipment and material to place newly proposed transformers in a turnkey proposal.

12. All work shall be compliant and in accordance with UL, NEC, and local jurisdiction standards Exclusions:

1. Repair or replacement of existing materials not code compliant.

2. Upgrades to existing panelboards.

3. Upgrades to existing non- code compliant conditions
ECM-9 Ice Arena Foam Roof:

This work is to be performed at:

South Lake Tahoe Ice Arena
1176 Rufus Allen Blvd, South Lake Tahoe, CA, 96150
Scope of Work
Roof Preparation and New Work

1. Pressure wash entire roof surface area at a minimum of 3,000 psi to remove all dirt, dust, and organics.

2. Install bonderized material where needed.

3. Mask all areas as not to receive any spray form or elastomeric acrylic coating in order to protect from any overspray.

4. Install new CA T-24 compliant foam roof
a. Apply a ½ gallon per every 100 sq ft of solar gain primer to prepared clean roof surface. b. Apply 2 inches polyurethane spray foam to cured primed roof surface c. Apply 1.5 gallons per every 100 sq ft of gray elastomeric acrylic base coating to cured foam.
442
d. Apply 1.5 gallons per every 100 sq ft of white elastomeric acrylic top coat to cured base coat.
e. Apply acrylic base coating to gutter areas, no foam to be added in gutters f. Embed granules into wet topcoat.

Exclusions:

1. Demolition and replacement of existing roof.

2. Demolition and replacement of existing roof decking or structural supports.

3. Any structural upgrades.

4. Any existing non-code compliant conditions.

5. Replacement or modifications to existing gutters or drainage.

6. Modifications to existing curbs, exhaust fans etc.

ECM-10 Microturbine Relocation:

This work is to be performed at:

South Lake Tahoe Ice Arena
1176 Rufus Allen Blvd, South Lake Tahoe, CA 96150
This work includes:

Demolition/Preparation Work

1. Disconnect the existing 65kW Capstone C65 Microturbine located at the Recreation Center a. Electrically disconnect and abandon exposed conduit, conductors, disconnects, supports, and materials associated with said equipment complete to nearest junction box. Cut, cap and seal all conduit openings and patch/repair surfaces to match existing. b. Disconnect and abandon associated pumps and ancillary equipment c. Disconnect all water piping to the microturbine: all lines to be cut and capped at closest joint d. Natural gas supply lines and associated appurtenances to be removed and capped at closest joint
e. Disconnect and cut and cap associated exhaust flue
New Work

1. Existing C65 microturbine is to be relocated from existing location in Recreational Center, to new location adjacent to Ice Arena on existing paved surface with new equipment pad.

2. Unit is to receive refurbishment with parts as recommended by Cal Microturbine following site visit on 3/25/2024. Main bulkhead is assumed to be in good working order. Materials to be replaced is as follows:
a. Oil filter
b. Oil separator
c. Oil
d. Combustion liner
e. Powerhead gasket
f. Igniter kit
443
g. Air filter

3. Interconnect with existing microturbine circuit at Ice Arena within 20’ of existing electrical feeders. Existing electrical infrastructure is assumed to be in satisfactory condition and capable of accommodating the microturbine and associated equipment.

4. Connect turbine to existing natural gas service. Include all necessary required equipment to meet natural gas supply requirements to the microturbine (scfm, pressure)

5. Waste heat from turbine is to receive its own glycol loop. Potential uses include space heating in Zamboni room, desiccant regeneration for dehumidification, and/or snowmelt, subject to final engineering.

6. Waste heat system to be integrated into the building control system as necessary to interact with existing HVAC equipment.

7. Waste heat recovery system subject to change upon final design.

8. Unit start up, commissioning, and customer training.

ECM-11 Parking Garage Lighting:

This measure has been removed from scope.

ECM-11b Parking Garage Painting:

This measure has been removed from scope.

ECM-12 Ice Chiller Replacement:

This work is to be performed at:

South Lake Tahoe Ice Arena
1176 Rufus Allen Blvd, South Lake Tahoe, CA 96150
This work includes:

Demolition & Wall Reconstruction:

1. Demolish existing supply ductwork as per drawings.

2. R-22 recovery and demolition of existing skid package, including existing associated pumps and cooling tower

3. Demolish existing 480V 400A circuit feeding existing ice chiller skid.

4. Electrically disconnect and remove exposed conduit, conductors, disconnects, supports, and materials associated with said equipment complete to nearest junction box. Cut, cap and seal all conduit openings and patch/repair surfaces to match existing.

5. Disconnect and remove associated pumps and ancillary equipment

6. Disconnect all water piping to chiller: all lines to be cut and capped.

Mechanical Scope

1. Furnish and install new Ductsox for dehumidification circulation.

2. Connect new Ductsox to existing dehumidification unit.

3. Test and balance new Ductsox.

4. Install new Co2 ice chiller package and CIMCO IQ control system for all ice rink controls.

5. New Off-package brine pump(s).

6. New Off-package underfloor and snow melt pit pump(s). 444

7. Supply and install Co2 leak detection per design drawings.

8. Pony panel mounted in the room for the gas cooler starters and off-package pumps.

9. New roof mounted 120TR gas cooler.

10. Single stainless steel snow melt pit coil.

11. Downstream electrical wiring power and control.

12. Connections to existing transmission mains.

13. Mechanical insulation of piping for new piping and connections.

14. Start-up and staff training.

15. Subject to change during final design.

Electrical scope:

1. Install new 480V 600A circuit to feed new proposed ice chiller skid and 200A circuit for pump/accessory pony panel.

2. Provide all new wiring, conduit, and electrical appurtenances necessary to provide a complete installation.
a. Conduit should be rigid; flex or BX is not permitted except for final connection to equipment and should not exceed 6 feet in length. Contractor shall provide warning labels on new equipment.

3. Provide necessary support and grounding for new circuit.

Exclusions:

1. Electrical panel or service upgrades

2. Assumes existing drain and floor grate in Zamboni room in Ice Arena are in good working order and sufficient for use.

3. Any work with the existing headers, ice rink floor, subfloor, or underfloor piping.

4. Any eye wash, plumbing, or drainage requirements.

5. Assumes existing dehumidification unit is in good working order.

6. Existing fire sprinkler heads are in acceptable location per code and do not need to be moved.

7. Fire sprinkler work in its entirety.

General Construction Scope:

1. Demolish opening in North wall of the ice refrigeration central plan to allow access for new skidmounted equipment

2. Remove/relocate electrical switch and plumbing line as needed

3. Remove and re-installed existing double door

4. Re-installed light gage stud non-structural wall and insulate to match existing

5. Install new Type-X gyp board on the interior to match existing and tape seams

6. Install new siding to match existing as close as possible Assumptions:

1. Double door is in good and re-useable condition

2. There are no hidden utilities or conditions in the wall that are not on drawings Exclusions:

1. Finishing out drywall with texture & paint

2. Chlorination of plumbing system
445
ECM-13 Ice Arena Supplemental Work:

This measure has been removed from scope.

ECM-14 Water Meters:

This work is to be performed at:

Lakeview Commons
1004 Lakeview Ave, South Lake Tahoe, CA, 96150
Irrigation Site
3006 Lake Tahoe Blvd, South Lake Tahoe, CA, 96150
Irrigation Site
3464 Fairway Ave, South Lake Tahoe, CA, 96150
Airport Firehouse Irrigation
1901 Airport Rd, South Lake Tahoe, CA, 96150
This work includes:

For 2” meters:

1. Remove 2” meter from existing pit. Return to utility.

2. Install new 1” meter, supplied by utility, utilizing existing threaded piping .

3. Provide threaded adapters as necessary to accommodate new meter.

4. Reference STPUD ¾” – 1” Meter installation for hardware and insulation requirements.

For 3” meters:

1. Remove 3” meter from existing pit. Return to utility.

2. Install new 1” meter, supplied by utility, utilizing existing flanged piping.

3. Provide flanged spool pieces as necessary to accommodate new meter.

4. Reference STPUD ¾” – 1” Meter installation for hardware and insulation requirements.

Sizes and quantities are as follows:

Lakeview Commons: (1) 2” and (1) 3”
3066 Tahoe Irrigation: (2) 2”
3464 Fairway Irrigation: (1) 2”
Airport Firehouse: (1) 3”
For All Meters Change-Outs: Billing Integration

1. Coordinate with Billing Department for all Account Attributes and Customer contact.

2. Old Meter will need to be retire; New Meter tied to the account.

3. Coordinate with Billing Department to match all Truncation and Unit Measurements.

4. Photograph the Retired Meter and Register capturing the Current Reading and record for Billing Department.
446

5. Record all information required by the Account: Old Meter Number, New Meter Number, Meter Size, Manufacturer, Account Address.

6. Verify the Meter is Recording in the Units specified by the Billing Department and sending signal.

Water Meter Exclusions:

1. No modifications, expansions, additions, etc to existing meter pit

2. Water line assumed to be in good working order

3. Trenching and patchback of any kind

4. Low voltage work
OVERALL EXCLUSIONS:

General:

1. The installation of any infrastructure or equipment related to electric vehicle (EV) charging not otherwise specified. This includes, but is not limited to, the provision of EV Capable, EV Ready, or EV Charging Station installations as defined by Section 5.106.5.3 of the Mid-Cycle Supplement to the 2022 Title 24, Part 11 California Green Building Standards Code, effective July 1, 2024. All associated conduits, electrical panels, wiring, and charging equipment are not included in the deliverables of this contract.

2. Any work not clearly defined above is excluded.

3. Abatement of asbestos and other hazardous materials are not included in the Scope of Work. This work is to be performed under a separate contract by the Customer in a timely manner.

4. Temporary conditioning of occupied spaces is excluded. Existing HVAC equipment is intended to be kept in operation to provide conditioning of spaces where possible.

5. Specific areas of the building not included in Project scope.

6. Painting and patching not specifically mentioned.

7. Landscaping beyond reseeding of damaged or disturbed earth.

8. Integration or modification of security access controls and surveillance system.

9. Special foundation drilling, rock excavation, dewatering and added costs for rock/ boulder boring.

10. Repair to existing electrical and existing paving conditions.

11. Restriping, crack sealing, repaving of existing conditions not under canopies or specified in scope of work.

12. Upgrades or modifications to existing utilities unless otherwise defined in the scope of work including fees assessed by utility providers.

13. ADA or existing code non-conformance issues not directly related to our proposed scope of work and outside our boundaries of construction unless specified.

Mechanical/Controls:

1. IT infrastructure and IT support: Customer to provide IT support to assist in connection of controls remote access interface.
447

2. Repair or replacement of existing HVAC equipment and components other than included in scope above.

3. Upgrades to electrical or gas service.

4. Modifications to existing conditions not directly included in this scope of work

5. Fire alarm upgrades or new fire alarm panel.

6. Pre-test and balance report

7. Duct cleaning

8. Replacement of existing gas meters or valves not directly affected by this project.

9. Spring isolators (proposed equipment to be internally balanced).

10. Amendments to any pre-existing structural deficiency.

11. Amendments to any pre-existing electrical deficiency.

12. Installation of new or expansion of fire panel to accommodate new equipment.

13. Equipment sizing, sequencing, electrical requirements, all subject to final engineering and design.

Roofing:

1. Replacement of any defective roofing items which are hidden conditions, including wood nailer, insulation, and metal deck. Repair of existing roofing deficiencies.

2. Abatement of asbestos and other hazardous materials are not included in the Scope of Work. This work is to be performed under a separate contract by the Customer in a timely manner.

3. Specific areas of the building not included in Project scope.

4. Integration of modification of security access controls and surveillance system.

Solar PV:

1. Utility-required electrical upgrades required by utility interconnection study.

2. Temporary power or generators during utility tie-ins. Tie-ins to be performed during off hours.

3. Utility-required upgrades as deemed necessary by result of Utility Interconnection Study.

4. Fees for Data Acquisition System (DAS) access after year 3 are excluded.

5. Parking lot restriping, grading, curb and gutter work, site work not affected directly by the listed scope of work.

6. Landscaping and irrigation modifications not affected directly by the listed scope of work.

7. Tree removal outside of those identified as obstructions for the solar arrays, or replanting of any removed trees. Tree removal includes cutting and stump grinding to 6” above grade. No uprooting of trees.

8. Willdan assumes parking lot areas where new solar is proposed can be fenced off to general traffic during construction

9. Willdan assumes the parking lot areas in the boundary of construction will allow for Willdan provided dumpsters, temporary toilets and Connex boxes. These will regularly be serviced during construction.

10. Willdan assumes existing underground utilities are in proper working order.

11. Willdan assumes any tree removal is permissible based on preliminary talks with TRPA, pending final approval upon submission.

12. Rock excavation, dewatering or unforeseen concealed subterranean conditions when placing foundations or boring/trenching

13. Modifications to existing conditions not directly included in this scope of work

14. Replacement of existing electrical gear not specified in scope.

15. Traffic control.

16. Columns and beams are to be painted. Full structure galvanization is excluded 448
449
Notice of Public Hearing
City of South Lake Tahoe City Council
NOTICE IS HEREBY GIVEN under Government Code section 4217.12 that the City of South Lake Tahoe City Council will conduct a public hearing on October 22, 2024, at 5:30 p.m., or as soon thereafter as possible, at City Hall, Council Chambers, 1901 Lisa Maloff Way, South Lake Tahoe, to consider the following agenda item:

Council will consider entering into an energy conservation contract with Willdan Energy Services, for the installation of certain energy savings measures on the property of the City. At said meeting, the Council will hold a public hearing on and consider a resolution to adopt findings required by Government Code section 4217.12 regarding anticipated energy cost savings and other benefits the City would receive if the Council decides to enter into the contract. The resolution, contract and supporting documents will be included with the Council’s regular public agenda for the October 22, 2024 meeting.

Any interested person may appear at the public hearing and speak in favor of or against this item. Written testimony may be delivered at, or prior to, the Public Hearing addressed to the City Council in the care of the City Clerk to [email protected] or at the address listed below.

City Council agendas and related staff reports are available at least 72 hours in advance of regular meetings on the City Council page of the City’s website www.cityofslt.us or by contacting the City Clerk.

Michelle Davis
Michelle Davis
Deputy City Clerk
City of South Lake Tahoe
1901 Lisa Maloff Way, Ste 206
South Lake Tahoe, CA 96150
(530) 542-6004
450
City Council Meeting
October 22, 2024
Energy Upgrades Project
451
Energy Upgrades Project Goals
• Increase energy efficiency and energy generation while addressing urgent facility upgrade needs
• Find utility bill and maintenance savings that can pay for the Project through time.
2 City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 452
The Energy Upgrades Project Team
• Public Works
• Anush Nejad
• Ricky Riddle
• Travis Shindelbower
• Phil Harwood
• Katherine Stempien
• Sustainability
• Sara Letton, Project Manager
• City Manager
• Joe Irvin
• Finance Director
• Olga Tikhomirova
• Willdan Energy Solutions
• David Daniel
• Brandon Rock
3 City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 453
A Balanced Approach to Project Development
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 4 • Facility Conditions Assessment
• Competing Needs
• Commitment to Public Service
• Value and Cost Savings
• Current Projects
• Staff Capacity
• Greenhouse Gas Reductions
454
Recommended Measures in The Project
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 5 • Solar Parking Canopy at Motor Pool
• Solar Parking Canopy the Police Department
• Building Automation Systems and Recommissioning
• Pelican Thermostat Integrations
• Water Meter Downsizing
• High Efficiency Transformer Upgrades
• Ice Arena Roof Replacement
• Ice Arena Chiller Replacement
• Ice Arena Microturbine Refurbishment and
Relocation
455
Solar Parking Canopies
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 6 Photo is for demonstration purposes only. Courtesy of https://bpi-power.com/solar-structures-carports/ Solar parking canopies will extend the life of vehicles and ensure vehicles are accessible in quick manner in snow conditions. $2 Million in grant funding secured toward the Motor Pool project. kWh production estimates are based on actual efficiency of the Airport’s 300kW system. The useful life of the panels is 35 years, providing long term greenhouse gas reductions. Savings to the City will continue based on projected increasing utility rates. 172kW
242kW
456
Building Automation Systems and Recommissioning, with
Pelican Thermostat Integrations
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 7 Reduces utility and
maintenance bills and
saves staff time.
457
Transformers Upgrade and Water Meter Downsizing
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 8 Fast payback, long term savings, easy to implement.
458
Ice Arena: New Roof, Ice Plant Replacement &
Microturbine Refurbishing
9 City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) The Ice Arena’s ice-making infrastructure has reached the end-of life and is at risk of catastrophic failure and higher costs. This is a state-of-the-art upgrade that replaces key infrastructure, refurbishes a microturbine already owned by the City, and provides a new roof with a 20-year warranty.

Microturbine Ice Arena Roof Example of a new Ice Plant
459
Greenhouse Gas Reductions
10 Greenhouse gas reductions are conservatively estimated at 220 MTCO2e annually.

For context:
• 2021 Total Government Operations footprint was 3,592 MTCO2e • 2021 Buildings & Facilities Sector was 1,611 MTCO2e, so a reduction of 220MTCO2e per year is a 14% reduction in the Buildings & Facilities sector footprint.

The two solar parking canopy projects provide over half of the GHG reduction, with the Building Automation Systems & Recommissioning providing about 18%. The Ice Arena Roof Replacement and Ice Plant Replacement contribute about the same.

City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 460 Sustainability Projects—Snapshot from the CIP Presentation Project 24-25
Budget
Request
Funding
Source
Total Project
Cost
Participatory
Budget Amount
Status-Notes
Citywide Sustainability and
Energy Upgrade Projects
(this comprehensive project
includes the component projects
below, and other energy savings
measures not listed here)
$4,500,000 GF $12,340,103
(Estimated) NA
Willdan was retained in 2023 to
conduct and Investment Grade
Audit toward development of a
comprehensive Project. The
balance of the project cost will be
financed and paid out of energy
cost savings.

Telemetry Based
Mechanical Controls
Included
above NA Quick payback project, to be implemented early in Project.

Ice Arena Sustainability
Project
Included
above NA $350,000
Most likely to begin in 2026 after
the financing plan is developed.

Some additional upgrades may
need to be funded separately.

Corp Yard Solar Project Included
above NA
Supporting Housing Program
Sugar Pine Transit/Solar Project.

Funded by AHSC grant. Will be
first project implemented by
Willdan due to grant funding.

City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 11 461
How much does it cost?
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 12 • This contract is for a Not To Exceed amount of $11,414,389. This contract will be contingent upon securing a bank loan financing which will be brought to council later this fall.
• Budget appropriations include a 5% City-controlled contingency for a total project amount of the $11,985,108.
• To reduce the amount to finance, we have a $2 Million grant from AHSC, and request $1-2 Million General Fund contribution
• The Finance Director has issued an RFP for banks to respond with lowest bid. • Willdan will guarantee energy savings throughout the life of a Measurement & Verification contract.
• The annual bank loan debt service will be structured proportionally based on project gross savings from the project on a fiscal year basis. • If City does not move forward with the recommended Project, the City would greatly benefit from Willdan completing the Investment Grade Audit Report, $213,740. 462
Cost breakdown and projected financing plan
13 Willdan Contract cost $11,414,389
City Contingency $570,719
Total $11,985,108
Less ASHC Grant $2,000,000
Less General Fund contribution $2,000,000
Plus anticipated Cap. Interest & COI $600,000
Net to be financed $8,585,108
Interest Rate Estimate 4.055%
Total Estimated Payment Amount
(the sum of all debt service payments
on the bank loan/financing lease) $12,473,999
Projected annual debt service Between $316,156 and $1,296,259 structured using the annual projected
energy savings amounts
Gross Cumulative Savings over 35 years $40,045,885
Net Cumulative Savings over 35 years $27,571,886
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 463 Proforma, Years 1 - 20
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 14 Year Energy
Savings
ITC Tax
Credit &
Incentives
O&M +
Water
Meter
Savings
Total Savings Lease Payment M&V Costs Total Payments
(Debt Service) Net Savings Cumulative
Savings
Construction
Period $ 316,705 $ 66,641 $ 383,346 $ - $ 383,346 $ 383,346 Year 1 $ 351,094 $ 1,068,103 $ 68,973 $ 1,488,170 $ - $ (19,167) $ (19,167) 1,469,003 $ 1,852,349 Year 2 $ 392,232 $ - $ 71,388 $ 463,620 $ (319,592) $ (19,838) $ (339,430) 124,190 $ 1,976,539 Year 3 $ 438,195 $ - $ 73,886 $ 512,081 $ (545,332) $ (20,532) $ (565,864) (53,783) $ 1,922,756 Year 4 $ 489,546 $ - $ 76,472 $ 566,018 $ (598,578) $ - $ (598,578) (32,560) $ 1,890,195 Year 5 $ 546,918 $ - $ 79,149 $ 626,067 $ (659,201) $ - $ (659,201) (33,134) $ 1,857,061 Year 6 $ 589,196 $ - $ 81,919 $ 671,114 $ (703,974) $ - $ (703,974) (32,859) $ 1,824,202 Year 7 $ 634,746 $ - $ 84,786 $ 719,531 $ (752,266) $ - $ (752,266) (32,735) $ 1,791,468 Year 8 $ 683,821 $ - $ 87,753 $ 771,575 $ (804,832) $ - $ (804,832) (33,257) $ 1,758,210 Year 9 $ 736,696 $ - $ 90,825 $ 827,520 $ (860,385) $ - $ (860,385) (32,864) $ 1,725,346 Year 10 $ 793,663 $ - $ 94,004 $ 887,667 $ (920,657) $ - $ (920,657) (32,990) $ 1,692,356 Year 11 $ 855,042 $ - $ 97,294 $ 952,336 $ (985,322) $ - $ (985,322) (32,986) $ 1,659,371 Year 12 $ 921,173 $ - $ 100,699 $ 1,021,872 $ (1,055,030) $ - $ (1,055,030) (33,157) $ 1,626,213 Year 13 $ 992,425 $ - $ 104,224 $ 1,096,648 $ (1,129,453) $ - $ (1,129,453) (32,805) $ 1,593,409 Year 14 $ 1,069,195 $ - $ 107,871 $ 1,177,066 $ (1,210,141) $ - $ (1,210,141) (33,075) $ 1,560,334 Year 15 $ 1,151,911 $ - $ 111,647 $ 1,263,558 $ (1,296,684) $ - $ (1,296,684) (33,126) $ 1,527,208 Year 16 $ 602,998 $ - $ 115,555 $ 718,553 $ - $ - $ - 718,553 $ 2,245,761 Year 17 $ 647,982 $ - $ 119,599 $ 767,581 $ - $ - $ - 767,581 $ 3,013,342 Year 18 $ 696,321 $ - $ 123,785 $ 820,106 $ - $ - $ - 820,106 $ 3,833,448 Year 19 $ 748,267 $ - $ 128,117 $ 876,384 $ - $ - $ - 876,384 $ 4,709,832 Year 20 $ 804,088 $ - $ 132,602 $ 936,689 $ - $ - $ - 936,689 $ 5,646,521 City of South Lake Tahoe - Willdan Project :: All Scopes 464
Proforma, Years 21 - 35
City of South Lake Tahoe Energy Upgrades Project Presentation (October 22, 2024) 15 Year 21 $ 864,073 $ - $ - $ 864,073 $ - $ - $ - 864,073 $ 6,510,594 Year 22 $ 928,532 $ - $ - $ 928,532 $ - $ - $ - 928,532 $ 7,439,126 Year 23 $ 997,801 $ - $ - $ 997,801 $ - $ - $ - 997,801 $ 8,436,927 Year 24 $ 1,072,237 $ - $ - $ 1,072,237 $ - $ - $ - 1,072,237 $ 9,509,164 Year 25 $ 1,152,226 $ - $ - $ 1,152,226 $ - $ - $ - 1,152,226 $ 10,661,390 Year 26 $ 1,238,182 $ - $ - $ 1,238,182 $ - $ - $ - 1,238,182 $ 11,899,571 Year 27 $ 1,330,550 $ - $ - $ 1,330,550 $ - $ - $ - 1,330,550 $ 13,230,121 Year 28 $ 1,429,809 $ - $ - $ 1,429,809 $ - $ - $ - 1,429,809 $ 14,659,930 Year 29 $ 1,536,473 $ - $ - $ 1,536,473 $ - $ - $ - 1,536,473 $ 16,196,403 Year 30 $ 1,651,094 $ - $ - $ 1,651,094 $ - $ - $ - 1,651,094 $ 17,847,497 Year 31 $ 1,774,265 $ - $ - $ 1,774,265 $ - $ - $ - 1,774,265 $ 19,621,762 Year 32 $ 1,906,626 $ - $ - $ 1,906,626 $ - $ - $ - 1,906,626 $ 21,528,388 Year 33 $ 2,048,860 $ - $ - $ 2,048,860 $ - $ - $ - 2,048,860 $ 23,577,248 Year 34 $ 2,201,705 $ - $ - $ 2,201,705 $ - $ - $ - 2,201,705 $ 25,778,953 Year 35 $ 2,365,952 $ - $ - $ 2,365,952 $ - $ - $ - 2,365,952 $ 28,144,905 Total $36,960,595 $1,068,103 $2,017,188 $40,045,885 $ (11,841,443) $ (59,538) $ (11,900,981) $28,144,905 $ 28,144,905 $11,414,389
$570,719
$2,000,000
$0
Grant Contribution $2,000,000
$7,985,108
15 4.10%

12.00%

8.00%
O&M Escalation Rate 3.50%
Financing Assumptions
Total Project Cost (Not Including Net Tax Benefits)
City Funding Contribution
Parking Garage Capital Contribution
Total Financed
Financing Term (years)
Financing Interest Rate
Energy Escalation Rates - Years 1 - 5
Energy Escalation Rates - Years 6 - 35
City Contingency (5%)
465
Questions
&
Comments
16 466
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: October 22, 2024
Agenda Item #:17
Agenda Item: Tourist Accommodation Unit (TAU) Discussion Executive Summary: On June 6, 2023, City Council (Councilmember Robbins, seconded by Mayor Bass) requested staff to bring back an item to discuss whether properties that obtain a vacation home rental permit could or should also be required to acquire and transfer a tourist accommodation unit of use (TAU) to the property. Based on staff's research, requiring the allocation or transfer of a TAU to a vacation home rental property would likely conflict with the Tahoe Regional Planning Agency (TRPA) Code and City Zoning standards, because the TRPA does not define a vacation home rental as a tourist accommodation use, and even under Measure T, the City allows vacation home rentals in areas not zoned for tourist accommodations and allocating a TAU to such properties would create an illegal use.

Requested Action / Suggested Motions: Council is asked to either: (1) Pass a Motion providing direction to staff to coordinate with the Tahoe Regional Planning Agency ("TRPA") on potential changes to TRPA land use policies, procedures, and ordinances to require a TAU for vacation home rentals; or (2) receive and file.

Responsible Staff Member: John Hitchcock, Planning Manager Reviewed and Approved By: Zachary Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - TAU Discussion.docx
02-TRPA TAU Definition.docx
467
City Council Agenda Report October 22, 2024 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: October 22, 2024
Title: Tourist Accommodation Unit (TAU) Discussion
Location: Citywide
Responsible Staff Members: John Hitchcock, Planning Manager Background: On June 6, 2023, City Council (Councilmember Robbins, seconded by Mayor Bass) requested staff to bring back an item to discuss whether properties that obtain a vacation home rental permit could or should also be required to acquire and transfer a tourist accommodation unit of use (TAU) to the property.

Issue and Discussion: Chapter 50 – Allocation of Development sets forth the requirements for regulating the rate and time of growth within the region. In conjunction with other provisions of the TRPA Code and the TRPA Goals and Policies, the chapter is intended to award and distribute allocations for growth in development in an orderly fashion in order to meet and maintain the environmental thresholds.

Section 50.7 of the TRPA Code states, "no person shall construct a project or commence a use that creates additional tourist accommodation units without first receiving an allocation approved by TRPA or obtaining the necessary development rights pursuant to a conversion or transfer.

TRPA defines a Tourist Accommodation Unit (TAU) in Chapter 90 of the TRPA Code of Ordinances as "a unit, with one or more bedrooms and with or without cooking facilities, primarily designed to be rented by the day or week and occupied on a temporary basis.

The TRPA Code further defines a tourist accommodation use in Chapter 21 – Permissible Uses as either 1) bed and breakfast facilities, 2) hotel, motel, and other transient dwelling units, 2) timesharing (hotel/motel design), 4) timesharing (residential design). The TRPA Code does not include vacation home rentals in their definition of tourist accommodation uses. Instead, vacation home rentals are defined as single- or multiple-family homes that require a separate development right (see Attachment 02).

City Staff met with TRPA legal counsel to discuss this issue. TRPA counsel expressed some concerns about potential conflicts with the TRPA Regional Plan, Rules of Procedures, Code of Ordinances, and growth management system. Some of the issues of concern include:
 Assigning or allocating a TAU to a residential dwelling that operates as a vacation home rental likely conflicts with Chapter 50 of the TRPA Code, which requires a TAU to be used for a use to which it pertains, which are the tourist accommodation uses as defined above, which is not a residential use.
468
City Council Agenda Report October 22, 2024 Page 2 of 2  Assigning a TAU to a property results in the property being defined as a tourist accommodation use and, in some instances, will result in the creation of an illegal use if tourist accommodation uses are not permissible in a given district.  The assignment of TAUs will have to come from the transfer of existing banked TAUs or converted development rights. TRPA’s tourist accommodation bonus units are limited for use to special projects and for projects in area plans and community plans that include the upgrade of existing tourist accommodation units.

The proposal would require amendments to existing TRPA land use policies, procedures, and ordinances and would be a fundamental policy shift in how TRPA defines tourist and residential uses. Moreover, the policy shift will likely require a regional-wide analysis for its potential effects on the environment, in particular on Vehicle Miles Travelled.

Environmental Considerations: This action is not approval of a project subject to review under CEQA Guidelines section 15352 because it does not commit the City to a definite course of action in regard to a project. Any proposed changes to the TRPA Regional Plan allocation policies will require an environmental analysis consistent with Chapter 3 of the TRPA Code of Ordinances and Chapter 6 of the TRPA Rules of Procedures.

Financial Implications: Staff time will be required to coordinate with TRPA staff and other interested agencies in preparing a suite of policy changes for consideration by the TRPA Advisory Planning Commission (APC) and the TRPA Governing Board. Anticipated tasks include but not limited to stakeholder meetings, public workshops, drafting policies, and presenting to the TRPA APC and Govenring Board.

Policy Implications: There are potential policy implications as a result of this proposal.

Amending the TRPA Regional Plan, Procedures, and Code of Ordinances to treat vacation home rentals as a tourist accommodation use would require agreement from TRPA and approval of the Governing board and likely also from other affected local jurisdictions. TRPA's Permissible Use Definitions apply basinwide, and any change would also apply to El Dorado County, Placer County, and Washoe County. Other jurisdictions may or may not support this policy change. 469
470
471
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: October 22, 2024
Agenda Item #:18
Agenda Item: Agenda Planning Calendar
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: Joseph Irvin, City Manager, and Susan Blankenship, City Clerk Attachments:

APC - 10 17 2024.pdf
472
2024 Agenda Planning Calendar (Updated 10 17 2024)
Agenda Item Agenda Section
Nov. 5, 9 a.m. Various City Council Commissions and Boards Annual Reports Consent City Clerk/CM 2025 City Council Meeting Schedule Consent City Attorney Tax Sharing Resolution (AB 8) NB
Dev. Services Radon - Jeff Minor Presentation
Inclusionary Housing In-Lieu Fee Update Consent
Revised Subrecipient Agreement-TCH Bears Den NB
Master Fee Schedule Amendment-Demolition Fee Consent
Quarterly Housing Report Consent
Heavenly Annexation Pre-zoning, GP Amendment and LAFCO authorization NB Finance Energy Upgrade Project Financing UB
TID Annual Report NB
Police ABC Grant Consent
Public Works Bijou Park Creek CTC License Agreement Consent Annual Roadway Rehab Contract Reconciliation Consent
Award Upper Bijou Park Creek Contract Consent
Department
473
2024 Agenda Planning Calendar (Updated 10 17 2024)
Contract Amendment with JKA for Additional Surveying Services 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. Dev. Services Workbench Pre-Design Contract Award Consent STRSA
Emp Housing Outreach Update & Emp Housing Signage ORD (First Reading) NB Finance Annual ROPS approval STRSA Consent
HR City Salary Table Consent
Parks & Rec Master Fee Schedule Amendment Rec Program Fees Consent Public Works Airport Master Plan Consent
Contract Amendement with MDEP Structures for PD Roof Design Consent 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
Protocols Update Consent
City Council Assignments to Boards and Commissions NB
474
2024 Agenda Planning Calendar (Updated 10 17 2024)
Dev. Services Emp Housing Outreach Update & Emp Housing Signage ORD (Second Reading) Consent Finance Quarterly Budget and Financial Status Report as of September 2024 Consent Investment Portfolio Report as of September 2024 Consent Police Boat Grant Approval Consent
Pub Works Award of Tahoe Valley Greenbelt Phase II Consent STR Rate Adjustment PH
City Clerk Records Management Policy (Updated) 1/2025
City Manager Barton Community Health Needs and Harm Reduction Update Organics Diversion Program Presentation
Award CalTrans Carbon Reduction Grant
EV Charging Parking ORD
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 City/CTC land exchange agreement
Non-Profit Contracts for Service
Unscheduled/Pending
475
2024 Agenda Planning Calendar (Updated 10 17 2024)
Disparate Impact Analysis Findings about Local Preference Ordinance Discussion: Second Home Cap/Permit Options
Building Code Appendix AW adoption-3D printed structures Mitigation Fee Act Reporting
Finance Disolution STJPPFA
Fire Position Allocation Amendment
Parks & Rec Events and Facitilies Naming Rights Discussion Police 2024 Update to Parking Fees in the Bellamy Parking Garage Police/PW Bike Paths, Bike Parking, Vehicle Parking
Public Works Award High Priority Pipe Replacement Project Geothermal Use Discussion Item
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
476
2024 Agenda Planning Calendar (Updated 10 17 2024)
Harrison Ave/Stateline Transit Station Parking Enforcement 477

Page 1 of 10 ends

South Lake Tahoe City CouncilOctober 22, 2024

South Lake Tahoe City Council
October 22, 2024