Cities Index.
Agenda packet

South Lake Tahoe City Council
January 28, 2025

Document
Agenda packet
Meeting
January 28, 2025
Body
South Lake Tahoe City Council
Pages
14
Original file
7.9 MB
Text extracted from the city's file for reading and search. Open the original on d3n9y02raazwpg.cloudfront.net. That file is the official record.

City Council
Tamara Wallace, Mayor
Cody Bass, Mayor Pro Tem
Scott Robbins, Councilmember
David Jinkens, Councilmember
Keith Roberts, Councilmember
Mission of the City Council
The City was established to provide essential,
outstanding and cost-effective services that
enhance environmental sustainability, economic
vitality and the quality of life for our residents,
businesses and guests.

City of South Lake Tahoe
City Council
Meeting Agenda
Tuesday, January 28, 2025 at 5:30 pm
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe Public Participation
City Council meetings are held in person at the time and location listed on this agenda. Meetings are live-streamed on Channel 21, City website at www.cityofslt.us, YouTube at https://www.youtube.com/channel/UC3LYne8Ih-kTPLnnuyJW9SQ/live and via ZOOM at this link https://us02web.zoom.us/j/83389058611
A public agenda packet is available for review at City Hall, 1901 Lisa Maloff Way, on the City’s Website at www.cityofslt.us, or by contacting the City Clerk's Office, (530) 542-6005 or [email protected] Providing Public Comment:

In Person: Every agenda for regular meetings provides an opportunity for members of the public to directly address the legislative body (City Council), on any item of public interest which is within the jurisdiction of the City Council during Public Communications. For items on the agenda or in connection with any item which the City Council will consider, the public is given the opportunity to comment before or during the City Council's consideration of the item [Government Code Section 54954.3(a)].

Remote Participation: If you are joining the meeting via ZOOM and would like to make a comment, press the "raise a hand" button. If you are joining the meeting via Channel 21 or live stream and would like to make a comment, please call (530) 542-6500. The meeting ID is: 833 8905 8611. Press *9 to indicate a desire to make a comment. Press *6 to unmute your phone. The Clerk will call you by the last three digits of your phone number when it is your turn to speak. Note: The Mayor reserves the right to conduct the meeting with in-person public participation only, if there is a technology malfunction that precludes the use of remote public participation.

In Writing: Written comments received by 3 p.m. the day before the meeting will be distributed to City Council prior to the meeting. Written public comment regarding any item on this agenda may be sent to [email protected]. When emailing comments, identify the agenda item number in the subject line to which your comments relate. Any such comment that is a public record and is emailed to 1 1. Proclamation Recognizing January 2025 as “National Human Trafficking Prevention Month”

2. Proclamation Recognizing January 2025 as "National Stalking Awareness Month"

3. Community Academy Presentation
[email protected] or otherwise provided to a majority of the City Council before the meeting will be made available for public inspection during normal business hours at the City Clerk's Office located at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe [Government Code Section 54957.5(b)]. Written comments will not be read out loud during the meeting.

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

Contact the City Clerk at (530) 542-6005 at least 48 hours in advance of the meeting for assistance [28 CFR 35.102.35.104 ADA Title II and Brown Act Government Code Sections 54953.2, 54954.1, 54954.2, and 54957.5].

Spanish Interpretations: The public may access Spanish interpretation using the ZOOM link listed on the front of the Agenda from an internet device (smartphone, laptop, tablet, home computer) with audio capabilities and selecting the Spanish language option. Persons without an internet device may attend the meeting in-person and a device will be provided while supplies last. Requests for interpreter services to offer public comment may be made by contacting the City Clerk.

Land Acknowledgement
Land Acknowledgement - The City of South Lake Tahoe acknowledges the lands we occupy today are the lands and home of the Wašíšiw, the people from here known today as the Washoe Tribe of Nevada and California, a sovereign nation. Since the beginning of time and for thousands of years before the arrival of any other people, the Washoe lived here and cared for this place, with values and intention that we can all learn from. On behalf of the City Council, I would like to acknowledge, thank, and honor the Indigenous Washoe Tribal Communities that are the past, present, and future stewards of the Lake Tahoe Basin.

Call to Order/Pledge of Allegiance
Roll Call
Closed Session Report
Proclamations
Requested Action / Suggested Motions: Issue a Proclamation to Tahoe Youth and Family Services Recognizing January 2025 as “National Human Trafficking Prevention Month” Item 1- Executive Summary.pdf
National Human Trafficking Prevention Month Proclamation.docx Requested Action / Suggested Motions: Issue a Proclamation to Live Violence Free recognizing January 2025 as "National Stalking Awareness Month"
Responsible Staff Member(s): Susan Blankenship, City Clerk Item 2- Executive Summary.pdf
Stalking Awareness Proclamation.docx
Public Communications
This is the public's opportunity to speak on any topic NOT LISTED on this agenda. Comments shall be limited to four (4) minutes. In accordance with the Brown Act, the City Council cannot deliberate or vote on any matter raised under public communications, but may briefly respond to statements made or questions posed. (Government Code Sections 54954.2)
City Commission and Student Advisory Reports
2 4. Regular City Council Meeting Minutes

5. Annual Accountability Report for Fiscal Year 2024-2025 for the Bijou Area Erosion Control Project, Community Facilities District (CFD 2014-1)

6. Amendment to Professional Services Agreement with Placemate for Administration of "Lease to Locals" Program to Extend Term and Allow Incentive for 6-Month Leases

7. Update on Snow Removal Negotiations with Heavenly
Requested Action / Suggested Motions: Receive Presentation from Student Advisors Sasha Pickett and Sebastian Guerrero
Responsible Staff Member(s): Hilary Roverud, Assistant City Manager Item 3- Executive Summary.pdf
01-Community Academy Presentation
Consent Agenda
Public Comment - This is the public's opportunity to speak on any topic listed on the Consent Agenda.

Comments shall be limited to three (3) minutes per item and six (6) minutes total per speaker.

The consent agenda consists of items of a repeating or routine nature considered under a single action.

Any Councilmember may have an item on the consent agenda removed and considered separately upon request.

Pass a Motion to adopt the Consent Agenda in one motion except as indicated at each item.

Requested Action / Suggested Motions: Pass a Motion approving the minutes from the January 14, 2025, City Council meeting.

Responsible Staff Member(s): Michelle Davis, Assistant City Clerk Item 4- Executive Summary.pdf
01 14 2025 City Council Meeting Minutes.pdf
Requested Action / Suggested Motions: Receive and File.

Responsible Staff Member(s): Anush Nejad, Director of Public Works Item 5- Executive Summary.pdf
01-Staff Report - Bijou CFD 24-25.docx
02 - SLT CFD 2014-1 (Bijou) Annual Report 2024-25.pdf
03 - Bijou Area Vicinity Map - CFD Location Maps.pdf
Regular-Unfinished Business
Requested Action / Suggested Motions: 1) Pass a Motion amending Program Guidelines to include the addition of a six-month lease option for half of the one-year incentive grant amount; and 2) Pass a Resolution directing the Mayor to execute Amendment No. 3 to Agreement with Placemate to extend term of "Lease to Locals" Rental Incentive Grant Program until January 31, 2026, and authorizing budget appropriations of $90,000 from General Fund Undesignated Excess Reserves.

Responsible Staff Member(s): Jessica Wackenhut Lomeli, Housing Manager Item 6- Executive Summary.pdf
01-Staff Report-Amended No. 3 to Agreement with Placemate.docx 02-Resolution - PSA Amendment Budget Appropriation.docx 03-C-137-2021 - Landing Locals Contract.pdf
04-C-186-2022 - Landing Locals PSA Amendment 1.pdf
05-C-243-2023 Placemate PSA Amendment 2.pdf
06-Placemate PSA Amendment 3 (Exh. A to Reso).pdf
07-Amended Program Guidelines Jan 2025.pdf
Requested Action / Suggested Motions: Pass a Motion either: (1) Providing direction to staff on the terms of a potential snow removal agreement with Heavenly; or (2) Terminating negotiations.

Responsible Staff Member(s): Joseph D. Irvin, City Manager Item 7- Executive Summary.pdf
3 8. Local Tenant Preference Policy for Affordable Housing

9. Agenda Planning Calendar
01-Staff Report-Heavenly Snow Removal Negotiations.docx 02-Exhibit A.pdf
Regular-New Business
Requested Action / Suggested Motions: Pass a Resolution adopting the Local Tenant Preference Policy for Affordable Housing.

Responsible Staff Member(s): Jessica Wackenhut Lomeli, Housing Manager Item 8- Executive Summary.pdf
01-Staff Report-Local Tenant Preference Policy for Affordable Housing.docx 02-Resolution - Local Tenant Preference Policy.docx
03-Disparate Impact Study.pdf
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(s): Joseph Irvin, City Manager, and Susan Blankenship, City Clerk Item 9- Executive Summary.pdf
APC - 01 23 2025.pdf
Updates and Announcements (City Attorney, City Clerk, City Manager) Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Adjournment
I, Susan Blankenship, City Clerk for the City of South Lake Tahoe, declare that the foregoing agenda for the Tuesday, January 2025, City Council meeting was posted and available for review on Thursday, January 23, 2025, at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe, CA 96150. The agenda was also available on the City's website at https://www.cityofslt.us.

Signed January 23, 2025
\\sb\\ Susan Blankenship, Elected City Clerk
4 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:1
Agenda Item: Proclamation Recognizing January 2025 as “National Human Trafficking Prevention Month”
Requested Action / Suggested Motions: Issue a Proclamation to Tahoe Youth and Family Services Recognizing January 2025 as “National Human Trafficking Prevention Month” Attachments:

National Human Trafficking Prevention Month Proclamation.docx 5 City of South Lake Tahoe
Proclamation
Recognizing January 2025 as
“National Human Trafficking Prevention Month”
WHEREAS, human trafficking is a public health issue and crime connected to many other forms of violence and exploitation, and often shares common risk and protective factors—such as lack of resources and unsafe environments that harm the health and well-being of individuals, families, and communities, often across generations, with South Lake Tahoe being no exception; WHEREAS, human trafficking can happen to anyone, but specific populations are at greater risk, including people affected by abuse, violence, poverty, youth homelessness, or social disconnection, as well as those systemically marginalized and underserved; WHEREAS, strengthening communities requires collective action to reduce the conditions that contribute to exploitation, build resilience, and create environments where people are protected from human trafficking;
WHEREAS, “Connecting the Dots. Strengthening Communities. Preventing Trafficking.” underscores the need to understand how human trafficking relates to other forms of violence and how we can prevent it by strengthening protective factors at the individual, community, and societal levels;
WHEREAS, increased community education on how to identify victims of human trafficking, along with increased knowledge of local resources and services for those affected by these criminal actions, can help restore freedom and dignity to identified survivors, as well as help diminish the number of future victims.

NOW, THEREFORE, the City Council of the City of South Lake Tahoe does hereby proclaim January 2025 as “National Human Trafficking Prevention Month” along with Tahoe Youth and Family Services, reaffirming our commitment to “Connecting the Dots. Strengthening Communities. Preventing Trafficking.” by increasing awareness and improve education on human trafficking to prevent and combat human trafficking in our community. ______________________________ _________________________ Tamara Wallace, Mayor Susan Blankenship, City Clerk
6 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:2
Agenda Item: Proclamation Recognizing January 2025 as "National Stalking Awareness Month" Requested Action / Suggested Motions: Issue a Proclamation to Live Violence Free recognizing January 2025 as "National Stalking Awareness Month".

Responsible Staff Member: Susan Blankenship, City Clerk Attachments:

Stalking Awareness Proclamation.docx
7 The City of South L:ake Tahoe
Procalmation
Recognizing January 2025 as
“National Stalking Awareness Month”
Whereas, across the United States under the laws of all fifty states, the U.S. Territories, the District of Columbia, and the federal government, stalking is a crime; Whereas, 13.5 million people are stalked in a one-year period; Whereas, the majority of victims are stalked by someone they know; Whereas, 3 in 4 women killed by an intimate partner have been stalked by that partner; Whereas, stalking victims experience higher rates of chronic pain, frequent headaches, sleeping difficulties, issues with vision, and asthma than the general population; Whereas, more victims are stalked using technology — such as phone calls, text messages, social media platforms, internet posts, emails, and electronic tracking — than not using technology; Whereas, victims stalked using technology are just as concerned for their safety as victims stalked in-person;
Whereas, there is a need for greater public awareness about the nature, criminality, and potential lethality of stalking;
Whereas, laws and public policies must be continually adapted to keep pace with new tactics and technologies used by stalkers;
Whereas, communities can better address stalking by adopting multidisciplinary responses with teams of local agencies and organizations and by providing more and better stalking victim services;
Whereas, the City of South Lake Tahoe is joining forces with victim service providers, criminal and civil justice officials, and concerned citizens across the United States and throughout to observe Stalking Awareness Month.

NOW, THEREFORE, be it resolved that the City of South Lake Tahoe does hereby proclaim January 2025 as “Stalking Awareness Month” in South Lake Tahoe, and applaud the efforts of the many victim service providers, law enforcement officers, prosecutors, national and community organizations, and private sector supporters for their efforts in promoting awareness about stalking.
________________________ ___________________________
Tamara Wallace, Mayor Susan Blankenship, City Clerk
8 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:3
Agenda Item: Community Academy Presentation
Executive Summary: The Student Advisors from South Tahoe High School will present the planned format of a Community Academy intended to offer community members a behind-the-scenes look into city operations, decision making and services.

Requested Action / Suggested Motions: Receive Presentation from Student Advisors Sasha Pickett and Sebastian Guerrero
Responsible Staff Member: Hilary Roverud, Assistant City Manager Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Community Academy Presentation
9 Community Academy
By Sebastian Guerrero and Sasha Pickett
10 Purpose & Participants
Academy aims to:
● Engage community members
● Provide behind-the-scenes look at city
operations
● Understand decision-making processes
● Showcase city services
The academy plans to welcome 30 participants who
reside, work, or attend school in SLT! 11
Program Structure
● Academy will run for six weeks from April 16 to May 28 ● 7 weekday evening sessions from 6-8 pm
● 3 Saturday afternoon tours from 4-6 pm
● Each week will combine topics with relevant activities ● Last weekday session is a graduation and awards
ceremony
12 Week 1: City Government Overview
Date: Wednesday, April 16, 6:00-8:00 PM
● Topics: City government structure,
strategic plans, communications
● Activity: Mock city council meeting
13 Week 2: Finance
Date: Wednesday, April 23, 6:00-8:00 PM
● Topics: City finance, budgeting, spending
● Activity: budgeting exercise
14 Week 3: Public Safety
Date: Wednesday, April 30, 6:00-8:00 PM
● Topics: Fire & police departments, crime
prevention and investigation, emergency
response
Saturday, May 3, 3:00-6:00 PM
● Activity: Tours of Police
Department & Fire Station
15 Week 4: Infrastructure and Sustainability
Date: Wednesday, May 7, 6:00-8:00 PM
● Topics: Streets, facilities, airport, transit,
stormwater sustainability
Saturday, May 10, 4:00-6:00 PM
● Activity: Tour of Corporation
& Airport
16 Week 5: Parks & Recreation
Date: Wednesday, May 14, 6:00-8:00 PM
● Topics: Parks & recreation programs
Saturday, May 17, 4:00-6:00 PM
● Activity: Tour of new
Recreation Center project
17 Week 6: Planning & Development
Date: Wednesday, May 21, 6:00-8:00 PM
● Topics: Planning, building, housing
● Activity: project development exercise
18 Graduation
Date: Wednesday, May 28, 6:00-7:00 PM
● Activities: Ceremony, challenge coin
presentation, feedback
19 Thank You?
Questions?
20 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:4
Agenda Item: Regular City Council Meeting Minutes
Executive Summary: City Council is asked to formally approve the minutes from the January 14, 2025, City Council meeting.

Requested Action / Suggested Motions: Pass a Motion approving the minutes from the January 14, 2025, City Council meeting.

Responsible Staff Member: Michelle Davis, Assistant City Clerk Reviewed and Approved By: Susan Blankenship, City Clerk Attachments:
01 14 2025 City Council Meeting Minutes.pdf
21 City of South Lake Tahoe
City Council
Meeting Minutes
Tuesday, January 14, 2025 at 9:00 a.m.

City Hall - Council Chambers – 1901 Lisa Maloff Way, South Lake Tahoe NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council. Complete Council member discussions on Regular Session meeting items can be viewed in archived video recordings on the City’s website at http://www.cityofslt.us Public submittals on items are retained in the administrative record and can be viewed in the City Clerk’s repository at http://www.cityofslt.us Land Acknowledgement
Mayor Bass read the Washoe Tribe of Nevada and California Land Acknowledgement.

Call to Order/Pledge of Allegiance
Mayor Bass Called the meeting to order at 9:03 a.m., then led the pledge of allegiance.

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

Councilmember Roberts was present over Zoom.

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

Closed Session Reports
Closed Session Report of January 14, 2025

1. Conference with Legal Counsel – Existing Litigation – Government Code section54956.9(d)(1). Case: Jason Cheney v. City of South Lake Tahoe, Workers’ Compensation Appeals Board Case Nos. ADJ11441999 and ADJ15356704.

Action: No Reportable Action.

Public Communications
Public Comment was heard from the following person:

1. Seth Howard- Sugar Pine Village contractor

2. Duane Wallace, South Tahoe Chamber of Commerce- Fire safety collaboration

3. John Messina- City assistance to property owners for defensible space clearing

4. Kelley O’Hare- City Council Ethics Policy update

5. Kenny Curtzweiler- Defensible space clearing, AB 2902

6. Ed Mosur- Mayor Wallace

7. Eick Asbury- Recreation Center discounts to Seniors and Senior Nutrition Center

8. Doug Williams- Fire safety council

9. Jerry Goodman- Mayor Wallace’s Tahoe Tribune Letter

10. Linda Spranz- Measure T, ethics review committee

11. Angie Reagan, Access Tahoe- Upcoming “Night to Shine” event 22 12. Melissa Soderston, Eco Integrity Alliance- Fire Safety grant funding, Mayor Wallace’s letter in the Tahoe Tribune
City Commission Reports
None.

Consent Agenda
Action: Moved/Seconded: Jinkens/Bass
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed the consent agenda.

1. Regular City Council Meeting Minutes
Action: Passed Motion 2025-001 approving the minutes for the December 10, 2024, Regular City Council and South Tahoe Redevelopment Successor Agency meeting.

2. Application to California Office of Traffic Safety for Grant for Special Enforcement of Traffic and Alcohol-Related Crimes
Action: Passed Resolution 2025-001 authorizing the Chief of Police to submit a grant application with the California Office of Traffic Safety for special enforcement of traffic and alcohol-related crimes, running of DUI checkpoints, and press releases, up to $100,000.00.

Grant funds will be used to carry out enforcement related to a host of traffic and criminal violations in our community including, but not limited to, DUI enforcement, seatbelt violations, motorcycle, bicycle, and pedestrian details. It will also be used for in-state travel for related trainings, and to purchase supplies and equipment.

3. School Resource Officer Agreement with Lake Tahoe Unified School District Action: Passed Resolution 2025-002 authorizing and directing the Mayor to execute a Memorandum of Agreement with the Lake Tahoe Unified School District (LTUSD) (C-005- 2025) regarding the operation of the School Resource Officer (SRO) for the 2024-2025 School Year and approve budget for reimbursement from LTUSD to the City in the amount up to $75,268.00.

4. Purchase of Three Police Patrol Vehicles
Action: Passed Motion 2025-002 authorizing the purchase of three (3) 2024 Chevrolet Tahoes (C-006-2025) and related equipment, with installation, using existing budget appropriations up to $309,991.94.

5. Amendment No. 3 to Professional Services Agreement with Wildscape Engineering, Inc.

Action: Passed Motion 2025-003 authorizing and directing the Mayor to execute Amendment No. 3 to the Agreement with Wildscape Engineering, Inc. (C-007-2025) for additional construction support services for the Upper Bijou Park Creek Watershed Restoration Project for the amount of $17,074.42 for a total not-to-exceed contract amount of $555,258.51.

6. Transfer of Unclaimed Check Funds
Action: Passed Resolution 2025-003 authorizing the transfer of unclaimed check funds from their respective fund(s) to the General Fund pursuant to California Government Code sections 50050 through 50057.
23 7. Application for Caltrans Sustainable Transportation Planning Grant for Stateline Avenue Complete Streets Project
Action: Passed Resolution 2025-005 authorizing the Director of Public Works (or designee) to submit a grant application to the California Department of Transportation (Caltrans) for a planning grant in the amount of $289,000 for stakeholder outreach and planning up to 30% design for a complete streets project on Stateline Avenue.

Public Comment was heard from the following person:

1. Ed Mosur
Regular- Unfinished Business

8. Vision Zero Action Plan
Action: Moved/Seconded: Jinkens/Robbins
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed Motion 2025-004 adopting the Vision Zero Action plan and directing staff to bring an annual review before Council.

The following person addressed the Council:

1. Ruta Jariwala, TJKM
Public Comment was heard from the following people:

1. Erick Asbury

2. Ed Mosur

3. Douglas Williams

4. Kelly O’hare

5. Heather Case-Bauer

6. John Messina

7. Melissa Soderston

9. Citizen Appointments to City Boards and Commissions
The Following Airport Land Use Commission Applicants Addressed the Council:

1. Alberto Manfredi

2. Erick Asbury

3. Linda Spranz (withdrew application)
Action: Moved/Seconded: Bass/Jinkens
Yes: Wallace, Bass, Jinkens, Roberts
No: Robbins
Action: Passed Motion 2025-005 appointing Alberto Manfredi and Erick Asbury to the Airport Land Use Commission.

Action: Moved/Seconded: Bass/Jinkens
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Acton: Passed Motion 2025-006 appointing Alberto Manfredi, Heather Cade-Bauer, Brooke Martone, and Spencer Benlien to the Building Boartd of Appeals.

The Following Parks and Recreation Commission Applicants Addressed the Council:

1. Margaret Kovarik

2. Nicole Ramirez-Thomas

3. Shane Rollins

4. Trudith Morgan

5. John Messina

6. Gary Maggiore
Written Public Comment was received from the following people:

1. Mark Costigan (Parks and Recreation applicant)
Action: Moved/Seconded: Bass/Wallace
Yes: Wallace, Bass, Robbins, Roberts
24 No: Jinkens
Action: Passed Motion 2025-007 appointing Margaret Kovarik, Nicole Ramirez-Thomas, Trudith Morgan, and Peter Fink to the Parks and Recreation Commission.

The Following Planning Commission Applicants Addressed the Council:

1. Seth Howard

2. Alberto Manfredi (withdrew application)

3. Evan Berger

4. Steven Imhoff

5. Natalia Wierczorek

6. Douglas Williams

7. John Messina (withdrew application)

8. Linda Spranz (withdrew application)
Action: Moved/Seconded: Roberts/Jinkens
Yes: Wallace, Jinkens, Roberts
No: Bass, Robbins
Action: Passed Motion 2025-008 appointing Steven Imhoff, Natalia Wierczorek, and Douglas Williams to the Planning Commission.

The Following Arts, Culture, and Tourism Commission Applicants Addressed the Council:

1. Stacey Ballard

2. David Hamilton

3. Aimi Xistra-Rich
Written Public Comment was received from the following people:

1. Rachel Carlson (Arts, Culture, and Tourism applicant) Action: Moved/Seconded: Bass/Roberts
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed Motion 2025-009 appointing Aimi Xistra-Rich to the Boys and Girls Club seat on the Arts, Culture, and Tourism Commission.

Action: Moved/Seconded: Bass/Jinkens
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed Motion 2025-010 appointing Stacey Ballard, David Hamilton, and Rachel Carlson to the Arts, Culture, and Tourism Commission.

The Following Police Advisory Commission Applicants Addressed the Council:

1. Alberto Manfredi

2. Valerie Smith
Action: Moved/Seconded:Jinkens/Roberts
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed Motion 2025-011 appointing Erika Gonzalez, Valerie Smith, Kelly Escobedo, and Alberto Manfredi (limited 1 year term) to the Police Advisory Commission.

Public Comment was heard from the following person:

1. Ayana Morali
Written Public Comment was received from the following people:

1. Erika Gonzalez (Police Advisory applicant)

10. Selection of an Alternate to Serve on the El Dorado County Local Agency Formation Commission
Action: Moved/Seconded: Jinkens/Wallace
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed Motion 2025-012 selecting Mayor Pro Tem Bass to serve as an alternate on the El Dorado County Local Agency Formation Commission (LAFCO). 25 At this time, Mayor Pro Tem Bass left the meeting.

11. Letter of Oppositionto El Dorado County Regarding Implementation of Assembly Bill 626 (Microenterprise Home Kitchen Operation)
Action: Moved/Seconded: Robbins/Wallace
Yes: Wallace, Robbins, Jinkens, Roberts

Absent: Bass
Action: Passed Motion 2025-013 directing stadff to submit a letter to the El Dorado County Board of Supervisors with a recommendation that the City opposes full adoption of the MEKHO program, but would like to engage in discussion of a one-year pilot program with the City retainnig discretion on whether to proceed with the pilot.

Public Comment was heard from the following people:

1. Ed Mosur

2. Seth Dallob

3. Duane Wallace

4. Nicole Ramirez-Thomas

5. Lauren Wolfer, COOK Alliance

6. Steve Teshara, Tahoe Chamber
Written Public Comment was received from the following people:

1. Roya Bagheri, COOK Alliance

2. Seth Dallob

12. Inclusionary Housing Ordinance In-Lieu Fees Annual Report Action: Received and filed.

Agenda Planning Calendar

13. Agenda Planning Calendar
Action: Received and filed.

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

1. Proclamation request from Tahoe Youth and Family Services recognizing January as “National Human Trafficking Prevention Month” (Council provided consensus)

2. Proclamation request from Live Violence Free recognizing January as “Stalking Awareness Month” (Council provided consensus)
City Manager Irvin

1. Upcoming interview with Tahoe TAP podcast

2. City offices will be closed on Martin Luther King Jr. Day

3. Attending upcoming “New Mayor and Councilmembers” conference with Councilmembers Roberts and Jinkens.

Councilmember Reports and Comments
Councilmember Robbins

1. Proclamation request for May as “Military Appreciation Month” (Jinkens seconded).

2. Request for a public update on the status of the South Lake Tahoe firefighter crews. City Manager Irvin stated this would be sent to City Council in an email update.

Councilmember Jinkens

1. Prayers to LA fire victims and first responders
26 Ajourment
Mayor Wallace ajourned the Meeting at 2:52 p.m.

Date:_______________
______________________
Tamara Wallace, 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.
27 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:5
Agenda Item: Annual Accountability Report for Fiscal Year 2024-2025 for the Bijou Area Erosion Control Project, Community Facilities District (CFD 2014-1)
Executive Summary: The Bijou Area Erosion Control Project is a major water quality treatment and erosion control project completed in 2014. Project improvements include an area-wide stormwater collection, conveyance, and treatment system. On July 15, 2014, the City Council adopted Resolution No 2014-42, forming the Community Facilities (CFD) District No. 2014-1 for the Bijou Area Erosion Control Project (ECP) and authorized the levy of a special tax within the CFD for the maintenance of the Bijou Area ECP. California Government Code Section 50075.3 (Senate Bill 165) requires local agencies levying special taxes to provide an annual status report to the governing body (City Council). This report provides the required information.

Requested Action / Suggested Motions: Receive and File.

Responsible Staff Member: Anush Nejad, Director of Public Works Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - Bijou CFD 24-25.docx
02 - SLT CFD 2014-1 (Bijou) Annual Report 2024-25.pdf
03 - Bijou Area Vicinity Map - CFD Location Maps.pdf
28 City Council Report January 28, 2025 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: January 28, 2025
Title: Annual Accountability Report for Bijou Area Erosion Control Project Community Facilities District (CFD2014-1) for Fiscal Year 2024-25
Location: Bijou Commercial Core Area near Fairway Ave and Lake Tahoe Blvd.

Responsible Staff Member: Anush Nejad, Director of Public Works (530) 542-6031 Background: The Bijou Area Erosion Control Project is a major water quality treatment and erosion control project completed in 2014 (see Project Location Map). Project improvements include an areawide stormwater collection, conveyance, and treatment system. Because the Bijou Area Project is in close proximity to Lake Tahoe and located within an intensely developed commercial area of the City, providing needed stormwater treatment before discharge into Lake Tahoe was problematic.

Stormwater treatment in the Project area requires a much more proactive method than is normally required with most stormwater and erosion control projects. The stormwater treatment facilities provided with the Project include an extensive series of subsurface settlement chambers to allow sediment to drop out of the stormwater on its journey to a stormwater lift station. After entering the lift station, the stormwater is pumped upstream to stormwater basins located on property owned by the U.S. Forest Service. The basins provide detention time to allow fine sediment to drop out. Stormwater infiltrates into the ground within the interconnected multi-basin facility.

The pro-active stormwater treatment system eliminates a historic direct discharge of urban stormwater into Lake Tahoe. The Bijou area-wide treatment system provides the means for commercial properties to receive TRPA BMP certification. As a part of the Bijou Area Erosion Control Project, the Community Facilities District was developed to provide a source of operations and maintenance funding to cover annual costs, replacement costs of the lift station pump, and related infrastructure replacement costs.

On July 15, 2014, the City Council adopted Resolution No 2014-42, forming the Community Facilities (CFD) District No. 2014-1 for the Bijou Area Erosion Control Project (ECP) and authorized the levy of a special tax within the CFD for the maintenance of the Bijou Area ECP. The ongoing and long-term costs to operate and maintain the Bijou storm water pump-and-treat system are partially offset by fees collected from the Bijou Area CFD. California Government Code Section 50075.3 (Senate Bill 165) requires local agencies levying a special tax to provide an annual status report to the governing body (City Council).

This report provides the required information.

Issue and Discussion: The attached annual report delivered by the CFD administrator NBS indicates that revenue, expenses and CFD funding balance for the Fiscal Year 2024/25 were the following:
29 City Council Report January 28, 2025 Page 2 of 3
 CFD tax & interest revenue: $18,631.91
 Amount Expended: $17,073.35
 CFD Fund Balance (as of 9/30/23): $163,999.62
 CFD Fund Balance (as of 9/30/24): $165,558.18
Special taxes are levied at a rate per impervious square foot of each participating parcel. The initial rate under the agreement was established at $0.10 per square foot and is subject to an increase annually based on the lesser of 3% or the April Consumer Price Index (CPI) change. Previously approved annual rate increases, and the proposed rate increase to the CFD levy are summarized as follows:

Table 1 – Annual Change in Tax Rate
Fiscal Year CPI Percent
Increase
Special Tax Rate
($/square foot)
2014-15 (CFD Formed) NA 0.10
2015-16 + 2.44 2.44 0.10244
2016-17 +2.70 2.70 0.10521
2017-18 +3.79 3.0 0.10835
2018-19 +3.22 3.0 0.11160
2019-20 +4.01 3.0 0.11495
2020-21 +1.11 1.11 0.11623
2021-22 +3.81 3.0 0.11971
2022-23 +8.3 3.0 0.12331
2023-24 +4.19 3.0 0.12701
2024-25 +3.77 3.0 0.13082
Because public roads contribute half of the runoff and pollutant loading to the Bijou ECP, which is considered a public benefit, the City of South Lake Tahoe is responsible for up to half of the annualized funding for ongoing operations and maintenance (estimated at $112,403 per year over the next 20 years).

Anticipated costs to overhaul and eventually replace major electrical and mechanical components of the pump system were factored into the average annual cost. Through the lifecycle of the project, annual costs are expected to be lower than the budgeted annualized maintenance cost because major replacement costs will be realized as the system ages.

Currently, only 10 out of 43 property owners eligible to participate in the CFD are participating in TRPA defined, “Area Wide BMPs.” Staff is working with TRPA to attract the maximum number of participants within the CFD to choose the levied assessment in lieu of constructing on-site BMPs. The assessment fees are calculated based on the impervious square footage for each property. Up to five times the current revenue could be collected annually if all 43 eligible properties located within the CFD participated.

Financial Implications: The recent annual 3% increase in special tax levy rates for the CFD participants was implemented to keep pace with average inflation while maintaining a set cap on the tax increase.

During this reporting period, the CPI was over the 3% cap. Therefore, the maximum 3% increase will be applied to the CFD tax rate as documented in Table 1.
30 City Council Report January 28, 2025 Page 3 of 3
Environmental Considerations: CEQA does not apply. Approval of staff’s recommendation is not a “project” subject to CEQA because it (a) has no potential to cause a significant effect on the environment and (b) concerns government fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. (Cal. Code Regs., tit. 14, §§ 15061(b)(3) and 15378(b)(4).)
Policy Implications: The special tax revenue is reserved for the operation and maintenance of the Bijou Area storm water pump and treat system. All expenses are consistent with policies and procedures regulating the Bijou Area CFD as approved and adopted by City Council in 2014. 31 Fiscal Year 2024/25 Annual Report for:

COMMUNITY FACILITIES DISTRICT NO. 2014-1
(BIJOU AREA ECP)
November 2024
32 TABLE OF CONTENTS
District Summary ...................................................................................................................1

1. SB 165: Local Agency Special Tax and Bond Accountability Act ........................................2

2. Special Tax Analysis........................................................................................................3

2.1 Special Tax Rates.......................................................................................................3

2.2 Annual Special Tax Rate Increase..............................................................................3

2.3 Special Tax Rate Comparison ....................................................................................4

2.4 Delinquency Summary ..............................................................................................5 Appendix A. District Boundary ...............................................................................................A Appendix B. Rate and Method of Apportionment...................................................................B Appendix C. Delinquency Summary Report ............................................................................C Appendix D. Final Billing Detail Report.................................................................................. D 33 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) 1

DISTRICT SUMMARY
Community Facilities District No. 2014-1 (Bijou Area ECP) (the “District”) was created to finance the costs of the construction and maintenance of the Bijou Area Erosion Control Project (the “Bijou Area ECP”) water quality treatment system. The levy of special taxes ( “Special Taxes” or the “Special Tax”) was approved by landowners in July 2014 with the first levy occurring in Fiscal Year 2014/15. Bonds were not issued to fund any costs associated with the District. The Special Tax will be levied as long as there are costs associated with maintenance of the treatment system.

The Tahoe Regional Planning Agency (the “TRPA”) issues a Best Management Practices (the “BMPs”) Certificate of Completion (the “Certificate”) to parcels that install and maintain a system to recover, trap, treat and filter stormwater runoff. The Certificate remains active as long as the BMPs are maintained, and the system is functioning properly. The TRPA also issues BMP Certificates to any parcel in the District that is current in payment of the Special Tax.

There are currently 10 parcels within the District boundary. There are 33 additional parcels within the Future Annexation Area. These 33 parcels are within the Bijou commercial core area but have not been annexed into the District. Five of these future annexation parcels had existing BMPs prior to the formation of the District. Currently, the Special Tax is not levied on the 33 parcels within the Future Annexation Area.

Levy
The following table provides a summary of the Fiscal Year 2024/25 final levy amount.

Participation Class
Parcel
Count
FY 2024/25
Levy
Full Participation 9 $14,890.88
Partial Participation 1 313.56
Totals: 10 $15,204.44
Delinquencies
As of June 30, 2024, there is one delinquent parcel for Fiscal Year 2023/24, resulting in a delinquency rate of 25.97% for CFD 2014-1, which equaled $3,832.88 in outstanding delinquent installments. Please refer to Appendix C for detailed historical information. NBS will continue to monitor delinquencies and recommend the appropriate delinquency management actions to the City of South Lake Tahoe (the “City”) as needed.

NBS
Tom Zetz, Administrator
Amanda Welker, Project Manager
Tim Seufert, Client Services Director
34 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) 2

1. SB 165: LOCAL AGENCY SPECIAL TAX AND BOND

ACCOUNTABILITY ACT
Senate Bill 165, filed with the Secretary of State on September 19, 2000, enacted the Local Agency Special Tax and Bond Accountability Act. This Act requires that any local special tax or local bond measure subject to voter approval contain a statement indicating the specific purposes of the special tax, require that the proceeds of the special tax be applied to those purposes, require the creation of an account into which the proceeds shall be deposited, and require an annual report containing specified information concerning the use of the proceeds. The Act only applies to any local special tax measure or local bond measure adopted on or after January 1, 2001 in accordance with Section 50075.1 or Section 53410 of the California Government Code.

Some of the requirements of the Act are handled at the formation of the Special Tax District and others are handled through annual reports. This Section of this report intends to comply with Section 50075.3 of the California Government Code that states:
“The chief fiscal officer of the issuing local agency shall file a report with its governing body no later than January 1, 2002, and at least once a year thereafter. The annual report shall contain all of the following:
(a) The amount of funds collected and expended.
(b) The status of any project required or authorized to be funded as identified in subdivision (a) of Section 50075.1.”
The requirements of the Act apply to the Operating Fund for the following District:

City of South Lake Tahoe
Community Facilities District No. 2014-1 Bijou Area ECP Formed July 15, 2014
Purpose of Special Tax
The District was created to finance the costs of the construction and maintenance of the Bijou Area Erosion Control Project water quality treatment system.

Services in the District remain ongoing.

Fiscal Year 2023/24 Collections & Expenditures
Fund
09/30/2023
Balance
Amount
Collected (1)
Expended
Amount
09/30/2024
Balance
Service
Status
Operating Fund $163,999.62 $18,631.91 $17,073.35 $165,558.18 Ongoing (1) Represents special tax collections and interest earnings through September 30, 2024. 35 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) 3

2. SPECIAL TAX ANALYSIS

2.1 Special Tax Rates
The Fiscal Year 2024/25 applied rates and special tax levy are shown in the table below.

Participation Class
Parcel
Count
Impervious
Square
Footage
FY 2024/25
Maximum
Tax Rate
FY 2024/25
Applied
Tax Rate
Total FY 2024/25
Special Tax Levy (1)
Full 9 113,832 $0.13082 $0.13082 $14,890.88
Partial 1 2,397 0.13082 0.13082 313.56
Totals: 10 116,229 $15,204.44
(1) Slight variances may occur due to rounding.

2.2 Annual Special Tax Rate Increase
The maximum special tax for future years is authorized to automatically increase by the lesser of 3.00% or the April to April change in the Consumer Price Index for all Urban Consumers (“CPI”), for the San Francisco-Oakland-San Jose area. If for any reason the CPI percentage change is negative, the Escalation Factor will be zero and will not result in a decrease. The maximum rate allowed from Fiscal Year 2023/24 to Fiscal Year 2024/25 was 3.00%.
36 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) 4

2.3 Special Tax Rate Comparison
The Fiscal Year 2024/25 maximum tax rates and applied tax rates compared to the prior year are shown below.

FY 2023/24 FY 2024/25 % Change in
Applied Tax
Rate (2)
Participation
Class
Impervious
Square Footage Rate Per
Maximum
Tax Rate (1)
Applied Tax
Rate
% of
Maximum
Maximum
Tax Rate (1)
Applied Tax
Rate
% of
Maximum
Full 113,832 Impervious
Sq. Ft. $0.12701 $0.12701 100.00% $0.13082 $0.13082 100.00% 3.00% Partial 2,397 Impervious
Sq. Ft. 0.12701 0.12701 100.00% 0.13082 0.13082 100.00% 3.00% (1) Maximum Tax Rate increases by the lesser of 3% or April CPI change as defined in section 2.2. (2) Represents the change between the current and prior year applied tax rates. 37 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) 5

2.4 Delinquency Summary
The following table summarizes the Fiscal Year 2023/24 delinquency rate for the District. Please refer to Appendix C for the District’s historical delinquency rates.

Description Amount
Fiscal Year 2023/24 Amount Levied $14,761.60
Fiscal Year 2023/24 Amount Delinquent 3,832.88
Fiscal Year 2023/24 Delinquency Rate 25.97%
38 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) A APPENDIX A. DISTRICT BOUNDARY
39 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) B APPENDIX B. RATE AND METHOD OF APPORTIONMENT
The following pages show the Rate and Method of Apportionment of the Special Tax. 40 RMA - Page 1

CITY OF SOUTH LAKE TAHOE
COMMUNITY FACILITIES DISTRICT NO. 2014-1
(BIJOU AREA ECP)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of South Lake Tahoe Community Facilities District No. 2014-1 (Bijou Area ECP) (“CFD No. 2014-1”) and collected each Fiscal Year commencing in Fiscal Year 2014-2015 in an amount determined by the City Council through the application of the Special Tax for Taxable Property as described below. All of the real property in CFD No. 2014-1, unless exempted by law or by the provisions hereof, shall be taxed for purposes of CFD No. 2014-1 to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of CFD No. 2014-1 including, but not limited to, the following: the costs of computing the Special Tax and preparing the annual Special Tax collection schedules (whether by the City, the CFD Administrator, or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs to the City, CFD No. 2014-1 or any designee thereof of complying with disclosure requirements; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; and the costs of the City, CFD No. 2014-1, or any designee thereof related to any appeal of the levy or application of the Special Tax. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2014-1 for any other administrative purposes, including, but not limited to, attorney’s fees. “Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County designating parcels by an Assessor’s Parcel number.
“Bijou Area ECP” means the City’s Bijou Area Erosion Control Project. “BMP(s)” means Best Management Practices.
“BMP Certificate of Completion” means a certificate issued by the TRPA to a parcel that has installed and maintains BMPs, participates in CFD No. 2014-1, or some combination thereof. The certificate remains active as long as BMPs are maintained and functioning properly and/or the Assessor’s Parcel is current in payment of the required Special Tax required through full participation in CFD No. 2014-1. 41 RMA - Page 2
“BMP Certified Property” means an Assessor’s Parcel within the boundaries of CFD No. 2014-1 which has received a BMP Certificate of Completion for all impervious square footage on their Assessor’s Parcel at the time of formation of CFD No. 2014-1. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“CFD No. 2014-1” means the City of South Lake Tahoe Community Facilities District No. 2014-1 (Bijou Area ECP).
“City” means the City of South Lake Tahoe.
“Council” means the City Council of the City, acting as the legislative body of CFD No. 2014-1.
“County” means the County of El Dorado.
“CPI” means the annual percentage change in the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-San Jose area determined from the April 1 of the current Fiscal Year as calculated from the April 1 of the prior Fiscal Year. “Escalation Factor” means the lesser of 3.0% or CPI. If for any reason the CPI percentage change is negative the Escalation Factor will be zero and will not result in a decrease.
“Exempt Property” means all Assessors’ Parcels that are exempt from the Special Tax pursuant to Section E.
“Fiscal Year” means the period starting July 1 and ending on the following June 30. “Full Participation Property” means an Assessor’s Parcel within the boundaries of CFD No. 2014-1 that satisfies BMP requirements for the Assessor’s Parcel’s total assigned Impervious Square Footage by receiving BMP certification via the ongoing payment of the Special Tax.
“Impervious Square Foot” means each square foot of assigned Impervious Square Footage.
“Impervious Square Footage” means the total square footage of land that does not infiltrate water as it would in its natural condition and/or contributes stormwater runoff to the Bijou Area ECP stormwater treatment system. The initial Impervious Square Footage assigned to each Assessor’s Parcel is based upon the impervious area assignments as identified in Table 1. The Impervious Square Footage assigned to an Assessor’s Parcel can change as a result of future development and/or redevelopment.

The identification of impervious square footage is not a verification of coverage. “Maximum Annual Special Tax” means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
42 RMA - Page 3
“Partial Participation Property” means an Assessor’s Parcel within the boundaries of CFD No. 2014-1 that satisfies BMP requirements with an active BMP Certificate of Completion for a portion of the assigned Impervious Square Footage and satisfies BMP requirements for the remaining portion of the assigned Impervious Square Footage by receiving BMP certification via the ongoing payment of the Special Tax. “Proportionately” means for Taxable Property that the ratio of the Special Tax levy to the Maximum Annual Special Tax is equal for all Assessors’ Parcels of Taxable Property within CFD No. 2014-1. “Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for CFD No. 2014-1 to: (i) pay directly for a portion of the total annual maintenance of a comprehensive regional water quality treatment system to treat both public and private runoff, protecting the clarity of Lake Tahoe; (ii) pay Administrative Expenses; (iii) pay any amounts required to establish or replenish any repair and contingency funds, capital improvement funds, or reserve funds for CFD No. 2014-1; (iv) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; and (v) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator. “State” means the State of California.
“Taxable Property” means an Assessor’s Parcel within the boundaries of CFD No. 2014-1 that is not exempt from the Special Tax pursuant to law or Section E below. “TRPA” means the Tahoe Regional Planning Agency.

B. ASSIGNMENT TO LAND USE CATEGORIES
On, or around, July 1 of each Fiscal Year, utilizing City building permit information, the City shall determine any changes to the total Impervious Square Footage for each Assessor’s Parcel as a result of any new development and/or redevelopment occurring on the Assessor’s Parcel. If the total Impervious Square Footage assigned to an Assessor’s Parcel changes as a result of new development and/or redevelopment, the Impervious Square Footage assigned to an Assessor’s Parcel shall be adjusted to equal the new total amount of Impervious Square Footage.

All Assessor’s Parcels within CFD No. 2014-1 shall then be classified as Taxable Property or Exempt Property. Taxable Property shall be further classified as Full Participation Property or Partial Participation Property and shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below.

C. ASSIGNMENT OF MAXIMUM ANNUAL SPECIAL TAX RATE
The Maximum Annual Special Tax for each Assessor’s Parcel of Taxable Property shall be assigned according to the table below:
43 RMA - Page 4
Taxable Property
Classification
2014-2015 Maximum
Annual Special Tax Amount
Full Participation Property $0.10 per Impervious Square Foot Partial Participation Property
$0.10 per Impervious Square Foot
not captured and infiltrated
by a TRPA approved BMP
On July 1 of each Fiscal Year, commencing on July 1, 2015, the Maximum Annual Special Tax set forth in the table above shall increase by the Escalation Factor. In no event, shall the Maximum Annual Special Tax decrease.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2014-2015 and for each subsequent Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement.

The Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Property at a rate up to 100% of the applicable Maximum Annual Special Tax to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of residential property be increased by more than ten percent (10%) above what it would have been levied had there been no delinquencies.

E. EXEMPTIONS
The CFD Administrator shall classify the following as Exempt Property: BMP Certified Property at the time of initial formation of CFD No. 2014-1 either through prior written agreement with the City specific to the Bijou Area ECP or through an existing BMP Certificate of Completion. Assessors Parcels with an existing BMP Certificate of Completion at the formation of CFD No. 2014-1 shall remain classified as Exempt Property as long as BMPs are maintained and functioning as approved by the City, TRPA or other entity tasked with certifying BMPs.

If the use, and resulting Impervious Square Footage of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property.

F. REVIEW/APPEAL COMMITTEE
Any landowner or resident who feels that the assigned Impervious Square Footage or amount of the Special Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor’s Parcel. If following such 44 RMA - Page 5
consultation and action (if any by the CFD Administrator), the landowner or resident believes such error still exists, such person may file a written notice with the City appealing the assigned Impervious Square Footage or amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City shall establish as part of the proceedings and administration of CFD No. 2014-1 a special review/appeal committee. The review/appeal committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The review/appeal committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the review/appeal committee shall be final and binding as to all persons.

G. MANNER OF COLLECTION
The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2014-1, may directly bill the Special Tax, and may collect Special Taxes at a different time or in a different manner as necessary to meet its financial obligations.

H. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

I. TERM OF SPECIAL TAX
The Special Tax shall be levied, commencing in Fiscal Year 2014-2015, as long as necessary to satisfy the Special Tax Requirement.
45 RMA - Page 6
TABLE 1
Assessor’s
Parcel Number
Impervious
Square
Footage
Assessor’s
Parcel Number
Impervious
Square
Footage
027-020-09-100 15,263 027-101-28-100 3,877
027-020-10-100 43,137 027-350-01-100 28,772
027-020-15-100 113,364 027-350-06-100 21,774
027-020-17-100 45,790 027-350-15-100 6,834
027-090-06-100 21,086 027-350-16-100 21,367
027-090-09-100 1,290 027-350-20-100 47,424
027-090-11-100 6,226 027-350-23-100 4,864
027-090-16-100 45,612 027-350-24-100 29,228
027-090-17-100 5,025 027-370-02-100 194
027-090-20-100 9,770 027-370-04-100 3,360
027-090-22-100 30,179 027-371-02-100 2,927
027-090-23-100 8,537 027-371-03-100 1,706
027-090-25-100 15,919 027-371-09-100 2,702
027-101-02-100 3,193 027-371-10-100 2,628
027-101-03-100 2,038 027-371-11-100 2,887
027-101-04-100 2 027-371-12-100 2,240
027-101-05-100 1,146 027-371-13-100 2,826
027-101-14-100 1,204 027-371-14-100 41
027-101-17-100 2,397 027-371-15-100 743
027-101-22-100 1,368 027-431-31-100 10,034
027-101-24-100 4,020 027-621-02-100 53,944
027-101-27-100 6,313
46 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) C APPENDIX C. DELINQUENCY SUMMARY REPORT
The following pages show the current Delinquency Summary Report. 47 City of South Lake Tahoe
Delinquency Summary Report
As of: 06/30/2024
Delinquent
Amount %
Billed
Installments
Paid
Installments
Delinquent
Installments
Delinquent
District Due Date Installments %
Billed
Amount
Paid
Amount
Delinquent
Amount
CFD 2014-1 - CFD No. 2014-1 (Bijou Area ECP)
08/01/2014 Billing:
12/10/2014 $3,131.68 $3,131.68 $0.00 0.00% 10 10 0 0.00% 04/10/2015 $3,131.68 $3,131.68 $0.00 0.00% 10 10 0 0.00% Subtotal: $6,263.36 $6,263.36 $0.00 0.00% 20 20 0 0.00% 08/01/2015 Billing:
12/10/2015 $5,952.99 $5,952.99 $0.00 0.00% 43 10 0 0.00% 04/10/2016 $5,952.99 $5,952.99 $0.00 0.00% 43 10 0 0.00% Subtotal: $11,905.98 $11,905.98 $0.00 0.00% 86 20 0 0.00% 08/01/2016 Billing:
12/10/2016 $6,113.41 $6,113.41 $0.00 0.00% 43 10 0 0.00% 12/10/2016 $0.00 $0.00 $0.00 0.00% 0 0 0 0.00%
04/10/2017 $6,113.41 $6,113.41 $0.00 0.00% 43 10 0 0.00% 04/10/2017 $0.00 $0.00 $0.00 0.00% 0 0 0 0.00%
Subtotal: $12,226.82 $12,226.82 $0.00 0.00% 86 20 0 0.00% 08/01/2017 Billing:
12/10/2017 $6,296.83 $6,296.83 $0.00 0.00% 43 10 0 0.00% 04/10/2018 $6,296.83 $6,296.83 $0.00 0.00% 43 10 0 0.00% Subtotal: $12,593.66 $12,593.66 $0.00 0.00% 86 20 0 0.00% 08/01/2018 Billing:
12/10/2018 $6,485.73 $6,485.73 $0.00 0.00% 43 10 0 0.00% 04/10/2019 $6,485.73 $6,485.73 $0.00 0.00% 43 10 0 0.00% Subtotal: $12,971.46 $12,971.46 $0.00 0.00% 86 20 0 0.00% 08/01/2019 Billing:
12/10/2019 $6,680.30 $6,680.30 $0.00 0.00% 43 10 0 0.00% 04/10/2020 $6,680.30 $6,680.30 $0.00 0.00% 43 10 0 0.00% Subtotal: $13,360.60 $13,360.60 $0.00 0.00% 86 20 0 0.00% Copyright © 2012 by NBS Page 1 of 2 09/11/2024 03:23:06PM 48 City of South Lake Tahoe
Delinquency Summary Report
As of: 06/30/2024
Delinquent
Amount %
Billed
Installments
Paid
Installments
Delinquent
Installments
Delinquent
District Due Date Installments %
Billed
Amount
Paid
Amount
Delinquent
Amount
CFD 2014-1 - CFD No. 2014-1 (Bijou Area ECP)
08/01/2020 Billing:
12/10/2020 $6,754.46 $6,754.46 $0.00 0.00% 43 10 0 0.00% 04/10/2021 $6,754.46 $6,754.46 $0.00 0.00% 43 10 0 0.00% Subtotal: $13,508.92 $13,508.92 $0.00 0.00% 86 20 0 0.00% 08/01/2021 Billing:
12/10/2021 $6,957.11 $6,957.11 $0.00 0.00% 43 10 0 0.00% 04/10/2022 $6,957.11 $6,957.11 $0.00 0.00% 43 10 0 0.00% Subtotal: $13,914.22 $13,914.22 $0.00 0.00% 86 20 0 0.00% 08/01/2022 Billing:
12/10/2022 $7,165.81 $7,165.81 $0.00 0.00% 43 10 0 0.00% 04/10/2023 $7,165.81 $7,165.81 $0.00 0.00% 43 10 0 0.00% Subtotal: $14,331.62 $14,331.62 $0.00 0.00% 86 20 0 0.00% 08/01/2023 Billing:
12/10/2023 $7,380.80 $5,464.36 $1,916.44 25.97% 43 9 1 2.33% 04/10/2024 $7,380.80 $5,464.36 $1,916.44 25.97% 43 9 1 2.33% Subtotal: $14,761.60 $10,928.72 $3,832.88 25.97% 86 18 2 2.33% CFD 2014-1 Total: $125,838.24 $122,005.36 $3,832.88 3.05% 794 198 2 0.25% Copyright © 2012 by NBS Page 2 of 2 09/11/2024 03:23:06PM 49 City of South Lake Tahoe
Fiscal Year 2024/25 Annual Report – Community Facilities District No. 2014-1 (Bijou Area ECP) D APPENDIX D. FINAL BILLING DETAIL REPORT
The following page shows the Final Billing Detail Report for Fiscal Year 2024/25. 50 City of South Lake Tahoe
CFD No. 2014-1 (Bijou Area ECP)
Final Billing Detail Report for Fiscal Year 2024/25
APN Situs Address
Impervious Square
Footage Participation Class Levy Total
027-020-009-000 3485 LAKE TAHOE BLVD 15,263.00 Full $1,996.62 027-020-010-000 3489 LAKE TAHOE BLVD 43,137.00 Full 5,642.98 027-090-011-000 1022 FAIRWAY AVE 6,226.00 Full 814.44
027-090-020-000 3460 LAKE TAHOE BLVD 9,770.00 Full 1,278.06 027-090-022-000 3450 LAKE TAHOE BLVD 30,179.00 Full 3,947.86 027-101-002-000 3542 LAKE TAHOE BLVD 3,193.00 Full 417.68 027-101-004-000 1028 HAM LN 2.00 Full 0.26
027-101-017-000 3552 LAKE TAHOE BLVD 2,397.00 Partial 313.56 027-370-004-000 941 BAL BIJOU RD 3,360.00 Full 439.52
027-371-009-000 952 BAL BIJOU RD 2,702.00 Full 353.46
10 Accounts 116,229.00 $15,204.44
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 1 07/22/2024 09:12:51AM 51 BIJOU AREA EROSION CONTROL PROJECT

EXHIBIT A
N.T.S

SITE VICINITY MAP
N.T.S

VICINITY MAP
N.T.S

SITE LOCATION MAP
H:\Autocad files\PWC 2005-04\dwg\RFP\Bijou Area ECP Map.dwg, 1/29/2007 10:13:20 AM, ScanSoft PDF Create! 52 MAP ID APN MAPID APN
1 027--020-09-100 3 027-090-11-100
2 027--020-10-100 4 027--090-20-100
LJ
0 CJ

MAP OF PROPOSED BOUNDARIES OF

CITY OF SOUTH LAKE TAHOE
COMMUNITY FACILITIES DISTRICT NO. 2014-1
(BIJOU AREA ECP)

CITY OF SOUTH LAKE TAHOE

COUNTY OF EL DORADO

STATE OF CALIFORNIA
Shfft1 of1
0-1 FILED LAKE TAHOE THIS 2014. IN THE OFFICE OF THE CITY CLERK OF THE CITY OF SOUTH @9 J.::;J r# CITY CLERK OE rriBfB Q . DAY OF ITY OF SOUTH LAKE TAH IA ITY OF SOUTH LAKE DORADO COUNTY, CALIFORN OW1NG THE PROPOSED EL DORADO, STATE OF CAL O ON THE ___ DAY OF__ · \h-n-0 f'l'A V;J
L-\.J\.\.J\U '<zy IJlY \..U t;:;:J
Glenwood 'Nay
2J
2J
2J
( \ I I I 11
i
FILED THIS __ DAY OF __ , 2014, AT THE HOUR OF __ O'CLOCK_M, IN BOOK __ OF MAPS OF

ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGE IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF EL DORADO, STATE OF CALIFORNIA.

COUNTY RECORDER

COUNTY OF EL DORADO, CALIFORNIA

FOR PARTICULARS OF THE UNESAND DIMENSIONS OF ASSESSOR PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ASSESSOR, COUNTY OF EL DORADO, STATE OF CALIFORNIA.

Legend
ii!
•
Legend
MAPID
5 6
APN
027-090-22-100 027-101--02-100

MAP ID APN
7 027-101-04-100
8 027-101-17-100
MAPID
9 10
APN
027-370-04-100 027-371--09-100
c:::J CFO Parcels
C:J Surrounding Parcels
Prepared by

0.01 0.02 0.04 0.06 GNes·
Miles
53 8

MAPID APN
027-02().15-100 027-02().17·100 027-090--06-100 027-090-09-100 027-090-16-100 027-090-17-100 MAPID
7 8
9 10
11 12

APN MAPID APN
027-09().23-100 13 027-101-24-100
027-09().25-100 14 027-101-27-100 027-101-03-100 15 027-101-28-100 027-101-05-100 16 027·35Q.01-100 027-101-14-100 17 027-35Q.06-100
027-101-22-100 18 027-35().15-1 00

MAP OF FUTURE ANNEXATION AREA OF

CITY OF SOUTH LAKE TAHOE
COMMUNITY FACILITIES DISTRICT NO. 2014-1
(BIJOU AREA ECP)

MAP ID APN
19 027-350-16-100
20 027-350-2().100
21 027-350-23-100
22 027-350-24-100
23 027-370-02-100 24 027-371-02-100

CITY OF SOUTH LAKE TAHOE

COUNTY OF EL DORADO

STATE OF CALIFORNIA

MAPID APN
25 027-371-03-100 26 027-371-1().100 27 027-371-11-100
28 027-371-12-100
29 027-371-13-100
30 027-371-14-100

MAP ID APN
31 027-371-15-100
32 027-431-31-100 33 027-621-02-100
ShHt1of1
FlLED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF SOUTH LAKE TAHOE THIS __ DAY 2014.

CITY CLERK CITY OF SOUTH LAKE TAHOE
El DORADO COUNTY, CALIFORNIA

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARIES OF THE FUTURE ANNEXATION AREA OF THE CITY OF SOUTH LAKE TAHOE COMMUNITY FAC1LIT1ES DISTRICT NO. 2014-1 (BIJOU AREA ECP), CITY OF SOUTH LAKE TAHOE, COUNTY OF EL DORADO, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF SOUTH LAKE TAHOE, AT A MEETING THEREOF, HELD ON THE DAY 2014, BY 1TS RESOLUTION NO. -

CITY CLERK

CITY OF SOUTH LAKE TAHOE

EL DORADO COUNTY, CALIFORNIA
FILED THIS __ DAY OF __ , 2014, AT THE HOUR OF __ O'CLOCK _M, IN BOOK __ OF MAPS OF

ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGE IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF El DORADO, STATE OF CALIFORNIA.

COUNTY RECORDER COUNTY OF El DORADO, CALIFORNIA

FOR PARTICULARS OF THE LINES AND DIMENSIONS OF ASSESSOR PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ASSESSOR, COUNTY OF El DORADO, STATE OF CALIFORNIA.

0.015 0.03 0.06 0.09
Mlles
Legend
Ill
Legend
c:J Parcels
S..-rouodmg Parcels
Prepared by
GNBS
54 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:6
Agenda Item: Amendment to Professional Services Agreement with Placemate for Administration of "Lease to Locals" Program to Extend Term and Allow Incentive for 6-Month Leases Executive Summary: At the November 19, 2024 City Council meeting, City Council (in a motion made by Councilmember Wallace and seconded by Councilmember Robbins) directed staff to return to Council with an amendment to the contract with Placemate for continued administration of the Lease to Locals program for twelve months and an amendment to the Lease to Locals Program Guidelines to allow sixmonth leases for half of the incentive through the end of 2025. Council will be considering an amendment to the Lease to Locals Program Guidelines to include the six-month lease option for half of the incentive grant and an amendment of the Professional Services Agreement for continued administration of the Lease to Locals program by Placemate until January 31, 2026.

Requested Action / Suggested Motions: 1) Pass a Motion amending Program Guidelines to include the addition of a six-month lease option for half of the one-year incentive grant amount; and 2) Pass a Resolution directing the Mayor to execute Amendment No. 3 to Agreement with Placemate to extend term of "Lease to Locals" Rental Incentive Grant Program until January 31, 2026, and authorizing budget appropriations of $90,000 from General Fund Undesignated Excess Reserves.

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-Amended No. 3 to Agreement with Placemate.docx 02-Resolution - PSA Amendment Budget Appropriation.docx 03-C-137-2021 - Landing Locals Contract.pdf
04-C-186-2022 - Landing Locals PSA Amendment 1.pdf
05-C-243-2023 Placemate PSA Amendment 2.pdf
06-Placemate PSA Amendment 3 (Exh. A to Reso).pdf
07-Amended Program Guidelines Jan 2025.pdf
55 Council Agenda Report January 28, 2025, Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: January 28, 2025
Title: Amended No. 3 to Professional Services Agreement (PSA) with Placemate and Program Guidelines for administration of the “Lease to Locals”
Location: Citywide
Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Background: On October 19, 2021, the City Council adopted Resolution No. 2021-082 appropriating $500,000 in American Rescue Plan Act (ARPA) funds to initiate a long-term rental incentive grant pilot program. The Resolution authorized $72,000 for program administration, $14,000 for marketing cost, and $200,000 for incentive grants to property owners. Leaving a remaining balance of $214,000 for a property management incentive program. During the meeting staff was also directed to execute a sole source Professional Service Agreement (PSA) (Attachment 3) with Landing Locals to administer the pilot program.

During the City Council meeting of August 9, 2022, staff provided an update on the status of the Lease to Locals program. The update included the success of the program, the first amendment to the guidelines, including the recommendation to allocate $214,000 towards the continuance of the Lease to Locals program, an extension of the program until December 2023, with a request to return to Council with an amended PSA with Landing Locals; to allow for the continuation of the administration of the program (Attachment 4). Shortly after the update, Landing Locals rebranded and changed their name to Placemate.

At the November 21, 2023 City Council meeting, Council authorized the mayor to execute Amendment No. 2 (Attachment 5). This Amendment allowed for continued administration of the “Lease to Locals” Rental Incentive Grant Program until January 15, 2025 to coincide with the administrative billing cycle.

On October 22, 2024, during Councilmember Reports and Comments, Councilmember Robbins requested a change in the Lease to Locals Program Guidelines to include a six-month lease option for half of the grant. Mayor Bass seconded the item to be brought back to City Council on November 19, 2024.

At the November 19, 2024 City Council meeting, City Council directed staff to return to Council with an amendment to the contract with Placemate for continued administration of the Lease to Locals program for twelve months and an amendment to the Lease to Locals Program Guidelines to allow six-month lease option for half of the incentive grant.

Issue and Discussion:

The intent of the Lease to Locals program is to unlock existing housing for local workers. Since the program started approximately three years ago, the program has unlocked 53 households, housed 129 residents (106 adults and 23 children). As of January 7, 2025, thirty-eight out of the 56 Council Agenda Report January 28, 2025, Page 2 of 2
52 grants issued have been closed and completed. Out of the 38 properties that completed the program, 30 have renewed the lease for another year.

Placemate submitted an updated Scope of Work (Attachment 6) that defines their role and includes the updated budget for the next twelve months, which has been included in Amendment Number 3 (Attachment 7).

Staff recommends that the City Council pass the Resolution (Attachment 2) authorizing the budget appropriation of $90,000 to provide funding for the continued administration of the Lease to Locals program by Placemate and authorizing the Mayor to execute Amendment Number 3 (Attachment 7) to the Professional Services Agreement for continued administration of the “Lease to Locals” Rental Incentive Grant Program by Placemate until January 31, 2026. Staff also recommends that the City Council pass a motion amending Program Guidelines to include the addition of a sixmonth lease option for half of the incentive grant (Attachment 8).

Financial Implications: The American Rescue Plan Act (ARPA) established the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. This program was intended to provide support to state, territorial, local, and tribal governments in responding to the economic and public health impacts of COVID-19 and assist efforts to mitigate impacts on communities, residents, and businesses. Council Resolution 2021-082 appropriated $500,000 in ARPA funds to initiate the long-term rental incentive grant pilot program. Amendment Number 2 was funded primarily from revenue from the sale of commodities. Amendment Number 3 administration costs of $90,000 will be paid from General Fund Undesignated Excess Reserve.

The Lease to Locals program has used the majority of ARPA funds as of January 1, 2025. There is $77,000 remaining for the incentive grants, $6,001 for marketing, and $0 remaining for the administrative fee for Placemate.

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

Policy Implications: The Lease to Locals program is also consistent with the following adopted General Plan Housing Element policies and programs:

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

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

Program 3-9 Landlord/Tenant Matching Program
57 Resolution 2025-XXX January 28, 2025 Page 1 of 3
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
January 28, 2025
Authorizing Amendment No. 3 to Agreement with Placemate (formerly Landing Locals) to Extend the Term of “Lease to Locals” Rental Incentive Grant Program until January 31, 2026 and Authorizing $90,000 Budget Appropriations from General Fund Undesignated Excess Reserves for Administration of the Extended “Lease to Locals” Program

BACKGROUND
A. As economic conditions and workforce behaviors changed as a result of the Coronavirus pandemic and other economic factors, the City of South Lake Tahoe experienced heightened real estate activity due to worker ability to work remotely and live further from their place of employment. This heightened market impacted the supply of single-family residences available for rent as homes previously used as rentals sold to owners looking to live in the home. These impacts contributed to an existing shortage of long-term rental supply and increased rental rates.

B. The City of South Lake Tahoe has historically had a large inventory of vacant “second homes” along with Vacation Home Rentals (VHRs) that have lost permits as a result of Measure T, the owners of which maybe incentivized to convert to long-term rentals.

C. The impact to the housing market occurred at a time when many workers within the community lost wages as businesses dependent on tourism and recreation were impacted by the Coronavirus pandemic. As businesses and public agencies became able to return to pre pandemic operations, re-hiring workers became a barrier due to a shortage of rental housing availability.

D. On October 19, 2021, the City Council approved a Professional Services Agreement with Placemate (formerly Landing Locals) to administer the Lease to Locals pilot program that would provide incentive grants to property owners, and on August 9, 2022, approved the program extension and PSA Amendment No. 1 extending the contract with Placemate until January 15, 2024.

E. On November 21, 2023, the City Council approved Amendment No. 2 to extend the program for one additional year and extend the contract with Placemate until January 15, 2025 for a total additional cost of $100,000 funded primarily from revenue from the sale of commodities.

F. Amendment No. 3 will extend the program for one additional year and extend the contract with Placemate until January 31, 2026 for a total additional cost of $90,000 to be funded by the General Fund Undesignated Excess Reserve.
58 Resolution 2025-XXX January 28, 2025 Page 2 of 3
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Authorizes and directs the Mayor to execute Amendment No.3 with Placemate (formerly Landing Locals) for continued administration of the “Lease to Locals” program, which is attached hereto as Exhibit “A.”

2. Authorizes the appropriation of funds into the fiscal year 2025/2026 budget as follows:

From General Fund Undesignated Excess Reserve Revenue: $90,000 Total Transfer out to Housing CIP: $90,000
LT Rental Incentive Pilot Program Housing CIP Account Number: 320-30003 Transfer in from General Fund: 50001 $90,000
Professional services: 42020 $90,000
Adopted by the City of South Lake Tahoe City Council on January 28, 2025 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Tamara Wallace, 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.
59 Resolution 2025-XXX January 28, 2025 Page 3 of 3
60 CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of the 1st day of December, 2021 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and Landing Locals (“Consultant”).

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

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

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

AGREEMENT

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

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

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

2. Term/Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue for one year.

C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 61 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 $86,000 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.

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.

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 C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 62 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 any of the above-named officers, require that custody of the records be given to City and that the records and documents be C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 63 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 acquireany 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 beaffected 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 tohis/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,
C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 64 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 C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 65 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 C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 66 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.

C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 67 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.

C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 68 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: Colin Frolich, Chief Executive Officer 10418 Donner Pass Road Unit C
Truckee CA 96161

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, which shall not be unreasonably withheld. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in the Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation
C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 69 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.

C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 70 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.

C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 71 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.

C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 72 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE: CONSULTANT:

By By
Joseph Irvin, City Manager Colin Frolich, Chief Executive Officer Date Date
APPROVED AS TO FORM:

By___________________________
Heather Stroud, City Attorney
ATTEST:

By
Susan Blankenship,
City Clerk
Attachments:

Exhibit A – Scope of Services
Business License #
Date
Date
Exhibit B – Compensation Schedule
Exhibit C - Anti-Lobbying Certification
C-137-2021
330062
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F 11/12/2021
11/15/2021
11/15/2021
11/15/2021
DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 73 EXHIBIT A

SCOPE OF SERVICES
C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 74 Scope of Work
To: Zach Thomas - Housing Manager, City of South Lake Tahoe From: Colin Frolich, Chief Executive Officer
Kai Frolich, Chief Impact Officer
(530) 213-3093
[email protected]
10418 Donner Pass Road Unit C
Truckee CA 96161
Date: Oct 5, 2021
Re: Scope of Work to Administer The Long-Term Rental Grant Pilot Program for The City of South Lake Tahoe
The Long-Term Rental Grant Program (the “Program”), originally piloted in Truckee, is geared at increasing the inventory of rental homes for local households. Long-term rental inventory is added to the local housing market by offering homeowners a one-time cash grant to encourage property owners to convert their homes and rooms into long-term rentals.

The following scope of work and budget are intended to respond to the City of South Lake Tahoe’s desire to test an incentive program to respond to the local-housing crisis residents face.

Incentive Structure

1. Incentive Amount

2. Term of Leases Permitted

3. Type of Properties allowed

4. Tenant Employment Restrictions
(1) Incentive Amount:
$2,000 grant per local housed (including children), up to $10,000 per home, with “local” defined below. The grant will be broken up into two payments: One at lease signing, and one at the 12-month mark
1 C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 75 (2) Term of Lease
Property owner would be required to sign a 12-month lease with the tenant(s) (3) Type of Units Allowed
First and foremost, we want to ensure that the properties and rooms participating in the Program were not previously long-term rentals and we are unlocking new housing units. Target housing inventory for the Program includes short-term rentals with expired permits, vacation and second homes, or rooms that are empty due to changes in property use or ownership (converting an office, empty nesters, recently purchased properties, etc.).

There are two requirements for the property:

1. The following types of housing units that will be eligible in the program:
● Single family homes, townhomes, and condos
● Room rentals (must be owner-occupied property)

2. The property must be located in the city limits of South Lake Tahoe. (4) Tenant Qualification Requirements:

Household income must not exceed 125% of the Area Median Income (AMI). For unrelated adults we will take the average of the income of each of the adults in the household.

Program Tasks
The following outlines the tasks that Landing Locals will complete to help administer the Program for the City of South Lake Tahoe.
1) Outreach and Education
Working with local homeowners, property managers, realtors, and other real estate professionals to get the word out about the program and ensure they understand how it works and how they can qualify for the incentive. This includes building a dedicated webpage on LandingLocals.com and dedicated (530) phone number for the program. 2) Customer Service
Responding to all inbound inquiries via web, email, and phone for qualifying properties to ensure homeowners understand the program and how they can qualify for the grant.. landing Locals will compile feedback on the program to inform program modifications.
3) Administration
Working with Staff to ensure we have backend operations to process and approve the grants. This includes setting up systems like Excel Spreadsheets and Dropbox folder.

Landing Locals would review leases, qualify tenants, and ensure property owners receive grant payment(s). To process the grants, Landing Locals will provide the City Staff with:
2 C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 76 ● A signed copy of the lease agreement signed by property owner/manager and tenant(s)
● A w9 and check request from the property owner
● Supporting Income verification (w2, paystub, or tax return) to ensure household income does not exceed 125% AMI
4) Reporting
We'd identify a cadence for meeting and reporting out to stakeholders (Staff, Council).

We'd provide bi-weekly updates to Staff on results vs. targets and feedback we are hearing from renters, homeowners, property managers, and the public. 5) Auditing
Landing Locals would ensure the full lease term was executed and tenants are still meeting employment/income requirements by following up directly with the tenant and landlord. Landing Locals would also report back on the landlord's intentions after the initial lease to see what units remain long term rentals and which ones go back to their original use.

Proposed Program Budget and Timing
Dec 1, 2021 — Nov 30, 2022
Housing Grants: $200,000
● up to 100 housing grants at $2,000/each
Administration Fee: $72,000
● Billed monthly at $6,000/mo
Marketing/Advertising Costs: $14,000
● Postcard Mailing to Second-Home Owners ($4,000)
○ $0.40 per postcard to 10k addresses
● Various other marketing opportunities including setting up website, print, digital, and outreach opportunities geared at property owners ($10,000) Total Budget = $286,000
3 C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 77 EXHIBIT B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees (not to exceed) $86,000
(travel is included in the TOTAL (not to exceed amount) TOTAL (not to exceed) $ 86,000
C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 78 EXHIBIT C

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

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

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

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

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

Consultant:

Colin Frolich, Chief Executive Officer
By:

C-137-2021
DocuSign Envelope ID: 21F23F9A-DC9D-4E9B-8BFA-556AD123912F DocuSign Envelope ID: B894CE9C-D72B-4F15-935E-718EEECD6521 79

Page 1 of 2 ends

CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
Amendment # 1
This Amendment modifies the Professional Services Agreement between the City of South Lake Tahoe, a municipal corporation (“ City”) and Landing Locals (“ Consultant”) entered into on December 1, 2021 ( C-137-2021).

The Professional Services Agreement is amended to read as follows:

Section 2. Term/ Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue until January 15, 2024 Section 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 $ 86,000 $200,000 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.

The Proposed Program Budget and Timing in Exhibit A (Scope of Work) is amended to read as follows:

Proposed Program Budget and Timing
Dec 1, 2021- Nov 30, 2022 December 1, 2021 — January 15, 2024 Housing Grants: $ 200,000 $300,000
Up to 100 150 housing grants at $2,000/ each (not included in the PSA, separate program account)
Administration Fee: $72,000 $177,000
Billed monthly at $6,000 $7,500/ mo
Marketing/ Advertising Costs: 14,000 $23,000
Postcard Mailing to Second- Home Owners ($4,000 at $0.40 per postcard to 10k addresses)
Various other marketing opportunities including setting up website, print, digital, and outreach opportunities geared at property owners ($ 6,000) Total Budget = $286,000 $500,000
C-186-2022 80

Page 2 of 2 ends

Exhibit B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees ( not to exceed) $ 200,000
travel is included in the TOTAL ( not to exceed amount) TOTAL ( not to exceed) $ 200,000
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE: CONSULTANT:

By___________________________ By ________________________________ Devin Middlebrook, Mayer Colin Frolich, Chief Executive Officer Date __________________________ Date _________________________ APPROVED AS TO FORM:

By____________________________ Date _________________________ Heather Stroud, City Attorney
ATTEST:

By______________________________ Date __________________________ Susan Blankenship, City Clerk
C-186-2022
Sue Blankenship ( Nov 2, 2022 11:22 PDT)
Nov 2, 2022
Heather Stroud (Nov 3, 2022 09:05 PDT) Nov 3, 2022
Devin Middlebrook ( Nov 3, 2022 09: 36 PDT)
Nov 3, 2022
Colin Frolich ( Nov 3, 2022 13:10 EDT)
Colin Frolich
Nov 3, 2022
81 C-186-2022 Landing Locals PSA Amendment 1
Final Audit Report 2022- 11-03
Created: 2022- 11-02
By: jo Mcdonough ( jmcdonough@cityofslt. us)
Status: Signed
Transaction ID: CBJCHBCAABAABBQWVnSvdx3kIb_ msrL6grpSzdjpygAW C-186-2022 Landing Locals PSA Amendment 1" History
Document created by jo Mcdonough ([email protected]) 2022- 11- 02 - 6:00:02 PM GMT- IP address: 128. 92.136. 146 Document emailed to Sue Blankenship ([email protected]) for signature 2022- 11- 02 - 6:08:09 PM GMT
Email viewed by Sue Blankenship ( sblankenship@cityofslt. us) 2022- 11- 02 - 6:22:02 PM GMT- IP address: 128. 92.136. 146 Document e-signed by Sue Blankenship ([email protected]) Signature Date: 2022- 11-02 - 6:22:14 PM GMT - Time Source: server- IP address: 128. 92.136. 146 Document emailed to Heather Stroud ([email protected]) for signature 2022- 11- 02 - 6:22:16 PM GMT
Email viewed by Heather Stroud ([email protected])
2022- 11- 03 - 4:04:47 PM GMT- IP address: 128. 92.136. 146 Document e-signed by Heather Stroud ([email protected]) Signature Date: 2022- 11-03 - 4:05:03 PM GMT - Time Source: server- IP address: 128. 92.136. 146 Document emailed to [email protected] for signature 2022- 11- 03 - 4:05:30 PM GMT
Email viewed by dmiddlebrook@cityofslt. us
2022- 11- 03 - 4:35:54 PM GMT- IP address: 128. 92.134. 66 Signer [email protected] entered name at signing as Devin Middlebrook 2022- 11- 03 - 4:36:16 PM GMT- IP address: 128. 92.134. 66 Document e-signed by Devin Middlebrook ([email protected]) Signature Date: 2022- 11-03 - 4:36:18 PM GMT - Time Source: server- IP address: 128. 92.134. 66 82 Document emailed to colin@landinglocals. com for signature 2022- 11- 03 - 4:36:20 PM GMT
Email viewed by [email protected]
2022- 11- 03 - 4:37:22 PM GMT- IP address: 66.102. 8.165 Signer [email protected] entered name at signing as Colin Frolich 2022- 11- 03 - 5:10:44 PM GMT- IP address: 72.45.178. 106 Document e-signed by Colin Frolich ([email protected]) Signature Date: 2022- 11-03 - 5:10:46 PM GMT - Time Source: server- IP address: 72.45.178. 106 Agreement completed.
2022- 11- 03 - 5:10:46 PM GMT
83

Page 1 of 2 ends

CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
Amendment # 2
This Amendment, effective November 21, 2023, modifies the Professional Services Agreement between the City of South Lake Tahoe, a municipal corporation (“ City”) and Landing Locals (“ Consultant”) entered into on December 1, 2021 ( C-137-2021).

The Professional Services Agreement is amended to read as follows:

Section 2. Term/ Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue until January 15, 2025 Section 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 $ 600,000 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.

The Proposed Program Budget and Timing in Exhibit A (Scope of Work) is amended to read as follows:

Proposed Program Budget and Timing
December 1, 2021 – January 15, 2025
Housing Grants: $ 300,000 ($154,000 remaining funds after committed grants)
Up to 150 housing grants at $2,000/ each (not included in the PSA, separate program account)
Administration Fee: $ 267,000
Billed monthly at $7,500/ mo
Marketing/ Advertising Costs: $ 33,000
Postcard Mailing to Second- Home Owners ($4,000 at $0.40 per postcard to
10k addresses)
Various other marketing opportunities including setting up website, print,
digital, and outreach opportunities geared at property owners 6,000)
C-243-2023 84

Page 2 of 2 ends

Total Budget = $ 600,000
The Schedule of Charges and Timeline ( Exhibit B) is amended to read as follows:

Exhibit B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees ( not to exceed) $ 600,000
travel is included in the TOTAL ( not to exceed amount) TOTAL ( not to exceed) $ 600,000
IN WITNESS WHEREOF, the parties have caused this Amendment 2 to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE: CONSULTANT:

By By
Cristi Creegan, Mayor Chase Janvrin, General Manager
Date Date
APPROVED AS TO FORM:

By Date
Heather Stroud, City Attorney
ATTEST:

By Date
Susan Blankenship, City Clerk
C-243-2023
Sue Blankenship ( Nov 27, 2023 09:20 PST)
Nov 27, 2023
Cristi Creegan (Nov 27, 2023 09:48 PST)
Cristi Creegan
Nov 27, 2023
Heather Stroud (Nov 27, 2023 10:47 PST)
Nov 27, 2023
J. Chase Janvrin (Nov 27, 2023 12:48 PST)
J. Chase Janvrin
Nov 27, 2023
85 C-243-2023 Amendment 2 to Agreement with
Placemate
Final Audit Report 2023- 11-27
Created: 2023- 11-22
By: Michelle Davis ( medavis@cityofslt. us)
Status: Signed
Transaction ID: CBJCHBCAABAAZTq2cLap4KGY9xU5cM00H4CUBf_ 43WE1 C-243-2023 Amendment 2 to Agreement with Placemate" Histo ry
Document created by Michelle Davis ([email protected]) 2023- 11- 22 - 7:24:06 PM GMT
Document emailed to Sue Blankenship ([email protected]) for signature 2023- 11- 22 - 7:25:06 PM GMT
Email viewed by Sue Blankenship ( sblankenship@cityofslt. us) 2023- 11- 27 - 5:20:20 PM GMT
Document e-signed by Sue Blankenship ([email protected]) Signature Date: 2023- 11-27 - 5:20:32 PM GMT - Time Source: server Document emailed to [email protected] for signature 2023- 11- 27 - 5:20:34 PM GMT
Email viewed by [email protected]
2023- 11- 27 - 5:48:35 PM GMT
Signer [email protected] entered name at signing as Cristi Creegan 2023- 11- 27 - 5:48:46 PM GMT
Document e-signed by Cristi Creegan ([email protected]) Signature Date: 2023- 11-27 - 5:48:48 PM GMT - Time Source: server Document emailed to Heather Stroud ( hstroud@cityofslt. us) for signature 2023- 11- 27 - 5:48:49 PM GMT
Email viewed by Heather Stroud ([email protected])
2023- 11- 27 - 6:47:28 PM GMT
86 Document e-signed by Heather Stroud ( hstroud@cityofslt. us) Signature Date: 2023- 11-27 - 6:47:40 PM GMT - Time Source: server Document emailed to [email protected] for signature
2023- 11- 27 - 6:47:42 PM GMT
Email viewed by [email protected]
2023- 11- 27 - 6:56:46 PM GMT
Signer [email protected] entered name at signing as J. Chase Janvrin 2023- 11- 27 - 8:48:28 PM GMT
Document e-signed by J. Chase Janvrin ([email protected]) Signature Date: 2023- 11-27 - 8:48:30 PM GMT - Time Source: server Agreement completed.
2023- 11- 27 - 8:48:30 PM GMT
87

Page 1 of 2 ends

CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
Amendment #3
This Amendment, effective February 1, 2025, modifies the Professional Services Agreement between the City of South Lake Tahoe, a municipal corporation (“City”) and Landing Locals, which subsequently changed its name to Placemate (“Consultant”) entered into on December 1, 2021 (C-137-2021).

The Professional Services Agreement is amended to read as follows:

Section 2. Term/Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue until January 31, 2026.

Section 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 $690,000 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.

Exhibit A (Scope of Work) is replaced with the revised Exhibit A attached hereto.

The Schedule of Charges and Timeline (Exhibit B) is amended to read as follows:

Exhibit B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees (not to exceed) $690,000
(travel is included in the TOTAL (not to exceed amount) TOTAL (not to exceed) $690,000
88

Page 2 of 2 ends

IN WITNESS WHEREOF, the parties have caused this Amendment 3 to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE: CONSULTANT:

By By
Tamara Wallace, Mayor Chase Janvrin, General Manager
Date Date
APPROVED AS TO FORM:

By Date
Heather Stroud, City Attorney
ATTEST:

By Date
Susan Blankenship, City Clerk
89 SCOPE OF SERVICES
To: Jessica Wackenhut Lomeli
Housing Manager
City of South Lake Tahoe
1052 Tata Lane, South Lake Tahoe, CA
Office: 530-542-6025
From: Chase Janvrin
General Manager
Placemate
(530) 213-3093 x701
[email protected]
10266 Truckee Airport Road, Suite C
Truckee CA 96161
Date: January 6, 2025
Re: Scope of Work for Lease to Locals Program
About Placemate
Placemate was founded in March 2019 in Truckee, California with the mission of creating a trust-based marketplace for locals-focused housing in tourist towns. Through their online platform, they connect local Tenants with homeowners who have underutilized properties available for rent, and partner with local governments on programs to incentivize Property Owners to convert their units into seasonal and long-term rentals for locals. They currently operate these programs, known as Lease to Locals, in tourist towns across California, Idaho, Colorado, Vermont, and Massachusetts and have converted hundreds of units into new longterm rentals for local employees.

The Lease to Locals Program was created to assist local jurisdictions and housing organizations in achieving the goal of increasing the inventory of rental homes available for moderate-income households working in their region. The program primarily uses an incentive of a one-time cash grant to encourage property owners to convert their underutilized vacation homes and shortterm rentals into longer-term rentals for locally employed households.

Scope of Work
The following outlines the tasks that Placemate will complete to help administer the Lease to Locals Program for the City of South Lake Tahoe.

Task 1: Program Qualification for Property Owners
90 Services provided to Property Owners:
(a) Placemate will assist Property Owners with qualification requirements for the Lease to Locals program and be their point of contact through the process of securing the incentive.
(b) For Property Owners who want to work with a Property Manager or find their own Tenants, Placemate will make reasonable efforts to ensure the Property Owner will qualify for the incentive by helping them or the Property Manager follow all of the requirements of the program.
(c) This includes the amendment to Program Guidelines to allow for a seasonal lease (6-12 months) for one half the standard incentive payment ($1,000 per Qualified Tenant.) Task 2: Property Listing and Tenant Matching
Placemate will allow Property Owners and Property Managers to self-list their properties for free on Placemate’s website, which includes a unique URL with photos, property attributes, property description, and a way for interested and qualified local Tenants to contact the Property Owner.

Placemate will allow local Tenants to complete and update a renter profile that includes attributes such as gross income, employer name and location, and desired rental type(s).

Task 3: Program Marketing
Placemate will market the program to make sure the messaging is clear and understood, and reaches the target audience of Property Owners. These marketing activities will include a dedicated program phone number, building a custom webpage to entice and educate Property Owners about the incentive program and how they can qualify, and to provide an easy way for them to get in contact with a Placemate representative. Placemate will also purchase and manage print advertisements to reach the target Property Owner audience including but not limited to postcard mailers, advertisements in local media outlets, and other channels.

Task 4: Customer Service and Outreach
Placemate will respond to all inbound inquiries (from Property Owners, Property managers, and Tenants) via web, email, and phone, and compile feedback to use for modifications of the Program.

Task 5: Program Payments, Reporting, and Compliance
(a) Program Compliance: To process the grants, Placemate will provide the City of South Lake Tahoe with:
● Signed copy of the lease agreement, signed by Property Owner/manager and Tenant(s)
● Signed application between the Property Owner and the City of South Lake Tahoe ● W9 from the Property Owner
● Employment and Income documentation from Qualified Tenant(s) (b) Property Owner Payments
The City of South Lake Tahoe will pay Property Owners half of the grant amount following lease start date (after Program application verification by South Lake Tahoe staff) and the other half of the grant upon completion of the lease, or one year, whichever occurs first.

Incentive payments are $2,000 per Qualified Tenant for 12+ month leases, and now allow for a seasonal lease (6-12 months) for one half the standard incentive payment ($1,000 per Qualified Tenant.)
91 (c) Compliance:

Placemate will conduct a six-month lease compliance check for all leases of 12+ months, and at the one-year mark (or end of lease term, whichever occurs first) for all leases, to determine and report to the City of South Lake Tahoe if the Property Owner qualifies for the second grant installment payment and if they intend to renew with the Tenants. (d) Reporting
Placemate will meet with South Lake Tahoe staff each month to review progress, and provide an update to the South Lake Tahoe City Council once a year, if requested.

Program Budget (February 1, 2025 — January 31, 2026)
Housing Grants: $77,000
Marketing/Advertising Costs: $6,001
Administration Fee: $90,000 ($7,500/mo)
Total Program Budget = $173,001
92 1
Lease to Locals Program

City of South Lake Tahoe Lease to Locals Program Guidelines

1.0 PROGRAM OVERVIEW
Background: The Lease to Locals Program (the “Program”), offers cash incentives to property owners who convert their underutilized housing units to rentals for qualified households. The goal of the program is to increase the supply of rental housing available for moderate and low income households.

Who the Program Serves: The target population served with the Program are households that average no more than 125% of the Area Median Income (AMI) which is $79,688 (2021 published AMI) for an individual per standards set by the California Department of Housing and Community Development for El Dorado County.

Program Definitions:

Underutilized Housing Unit: For the purpose of the Program, an “underutilized housing unit” is one that is occupied less than full-time and not currently being rented long-term (30 days or more). Examples include rooms in primary homes, short-term rentals, vacation and second homes.

Long-Term Rental: For the purpose of the Program, a long-term lease is defined as 6- months or 12-months. The goal of the program is to secure long-term leases.

Definition of a Household: For the purpose of the Program, a household is defined as related adults (e.g.family/marriage) or unrelated adults living together in one house. To be considered a household, all residents in the home must live together in a home as their primary residence.

Definition of a Tenant: For the purpose of the Program, a tenant is a single person applying to be matched into a rental unit in South Lake Tahoe for use as their primary residence.

Definition of an Adult: For this Program, Adult is considered 18 years or older.

Definition of a Qualifying Tenants: A child or children in the household can be considered as one additional qualifying tenant.

A qualifying tenant(s) may not be an immediate family member (son, daughter, brother, sister, parent, including step or in-law relations) of the owner. 93 2

2.0 PROGRAM ADMINISTRATION
The City will administer the Lease to Locals Program with support from a third-party administrator, Landing Locals. Landing Locals is a California Benefit Corporation, based in Truckee, Calif., with a mission to unlock new rentals for local employees in resort towns.

1. City of South Lake Tahoe Role: The City will oversee and fund the Program. This includes managing a contract with Landing Locals, grant disbursements and program evaluation.

2. Grant Amounts: The City will offer a $2,000 grant per tenant for a 12- month lease or $1,000 grant per tenant for a 6-month lease housed through the Program, with a maximum amount of incentives based on the unit size in the table below. In the case of families with children, in order to encourage rentals to larger families, children under age 18 will be counted as tenants for the purpose of calculating grant payments.

3. Maximum Rental Rate: To ensure affordability the Program requires that units 1 bedroom or greater in size be priced at or below the Maximum Rental Rate called out in the table below. Rooms or Studios do not have a maximum rental rate.

4. Grant Administration: The City will issue grant payments to property owners as follows: 50% of total grant within 30-days of the start of the lease and 50% at successful close of 6 or 12-month lease.

5. Grant Disbursements: Prior to grant disbursements, the City will review documentation submitted by Landing Locals including: a copy of signed lease agreement (by landlord and tenant(s)), proof of income for all tenants over 18, homeowner W-9, and check request form.

6. Landing Locals Role: Per the executed annual scope of services and contract, Landing Locals will provide the following services for the Program: program development, customer service, marketing, compliance, reporting, and processing applications per Program Guidelines.

Monthly Rent Not
to Exceed
Maximum number
of Grants Per Unit*
Maximum Total Grant
Amount per Unit (6
month or 12 month
lease)
Room or Studio N/A 1 $1,000/$2,000
1 bedroom $3,500.00 per unit 2 $2,000/$4,000
2 bedroom $3,500.00 per unit 3 $3,000/$6,000
3 bedroom $3,500.00 per unit 4 $4,000/$8,000
4 bedroom or greater $3,500.00 per unit 5 $5,000/$10,000 * The maximum number of grants possible per unit is based on the size of the unit and number of tenants. For Example, a 3 bedroom unit can qualify for up to 4 grants ($4,000/$8,000) if four qualifying tenants rent the property. If a 3 bedroom unit is rented to only 2 qualifying tenants, the property owner 94 3
would only receive 2 grants ($2/000/$4,000).

3.0 PROGRAM DURATION
The Program started on Dec 15, 2021, and it has been extended through the end of 2024January 31, 2026.

Quarterly, staff will review program progress, housing needs and scope of service from Landing Locals to determine recommendations to City Council on continuance and/or modifications of the Program.

4.0 ELIGIBILITY FOR HOMEOWNERS
 Grant Application: Homeowners must submit a complete on-line form and sign a self-certification checklist with Landing Locals and comply with the following criteria to have their home considered for the grant program.  Location: The home must be located within the City limits of South Lake Tahoe.
 Status: The home must be a legally permitted dwelling unit and each bedroom in the property must have a door and window.
 New Rental: The unit must have not already been an existing long-term rental in the last 18 months, either by long term lease or by month-to-month rental.

The unit must not currently have a long-term tenant(s).  Eligible Properties: Properties must be single-family homes, townhomes, privately-owned condos or vacant rooms in owner-occupied properties. Multifamily rental properties are not eligible for the program.  Ownership: The applicant must be the owner of the property or able to represent the owner or ownership group legally.
 Property Condition: The home or room must meet basic health and safety criteria per CALIFORNIA HEALTH AND SAFETY CODE, DIVISION 13.

HOUSING, PART1.5. REGULATIONS OF BUILDINGS USED FOR HUMAN HABITATION, CHAPTER 2. RULES AND REGULATIONS.
 Signed Lease Agreement And Complete Lease Packet: The homeowner must complete the Lease Packet and sign a Lease Agreement with qualified tenants.
 Successful Six-Month Lease Checks: Homeowners must successfully meet lease agreements for the full length of the lease and will be checked for compliance, by Landing Locals, via phone/emails interviews, at six months.

Failure to meet lease requirements at either of these points could disqualify the homeowner for grant payments.
 Grant Payments: The grant payment is made for “Qualifying Tenant(s)”.

Contingency:
 Change of Ownership: If the property is sold during the lease period, the lease agreement is broken and the homeowner is disqualified from the Program. In this case, Landing Locals would work to place the tenants into another property or work with new owners to submit an application to the Program. The new owners could qualify for the second half of the grant payment if they continue to rent to the existing tenants for the remainder of the lease in place.
 Failure to Comply with Lease: If the homeowner does not meet lease agreements at the six-month mark because of an eviction or move-out, 95 4
Landing Locals will work with homeowners to rectify the situation. If an agreement cannot be reached, the homeowner will be disqualified from receiving the second installment of the grant disbursements but will not be required to pay back the first installment of the grant.  Property Condition: If the property is deemed in violation of CALIFORNIA HEALTH AND SAFETY CODE, DIVISION 13. HOUSING, PART 1.5.

REGULATIONS OF BUILDINGS USED FOR HUMAN HABITATION,
CHAPTER 2. RULES AND REGULATIONS the grant payment(s) can be withheld.

5.0 ELIGIBILITY REQUIREMENTS FOR TENANTS
Income Qualification:

The average annual income of all adult residents of a household (related or unrelated) can be no more than 125% of the area median income ($79,688) as set by CA Dept. of Housing and Community Development.
 Documentation: Each adult applicant in the household must submit the following documentation along with their applications in order to determine total household income:
 Copy of driver’s license or other photo ID for each adult.  Verification of annual gross income for each adult as follows:
 Related households: Tax returns (prior year)
 Unrelated households. For each adult over 18 need one of the following:
 Copy of W-2 (1 year)
 A recent pay stub (past three months) or an offer letter or email from the employer that verifies total annual gross income for the new position.  Summary of unemployment benefits for the year
 Trust fund disbursement statements
 Spousal support or alimony payments
 Other explanation of income in a written format
Regional Employment
At least 50% of household adults over the age of 18 years old, shall work at least 20 hours per week for an employer based in the “South Shore” as defined in the South Shore Housing Needs Assessment. While adults not working locally can live at properties participating in the program, only locally employed adults may count towards the property owner receiving the grant.

6.0 PROGRAM EVALUATION
Annually, the Program will be evaluated to ensure City resources are being efficiently utilized.

City staff will produce a program report using the following criteria to measure success of the program:
 Number of people served (including children)
 Number of homes unlocked
 Types/Sizes of units unlocked
 Rental prices for each home, average per room
 Income of renters (area median income of each adult in the home) being served  Number of rentals extended beyond 12-month lease program  Program participant surveys (homeowners and tenants)
96 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:7
Agenda Item: Update on Snow Removal Negotiations with Heavenly Executive Summary: At the November 19, 2024, City Council meeting, then Mayor Bass requested a future agenda item regarding snow removal conversation with Heavenly Mountain Resort and then Mayor Pro Tem Wallace seconded the item be brought forward to City Council for discussion. Staff has met with Heavenly Mountain Resorts representatives and has agendized this item to share information with and receive further direction from the City Council.

Requested Action / Suggested Motions: Pass a Motion either: (1) Providing direction to staff on the terms of a potential snow removal agreement with Heavenly; or (2) Terminating negotiations.

Responsible Staff Member: Joseph D. Irvin, City Manager Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report-Heavenly Snow Removal Negotiations.docx 02-Exhibit A.pdf
97 Council Agenda Report – January 28, 2025 Page 1 of 4 City of South Lake Tahoe
Report to City Council
Meeting Date: January 28, 2025
Title: City of South Lake Tahoe and Heavenly Snow Removal Negotiations Update Location: Citywide
Responsible Staff Member: Joseph D. Irvin, City Manager, and Anush Nejad, Director of Public Works
Background: At the November 19, 2024, City Council meeting, then Mayor Bass requested a future agenda item regarding snow removal conversation with Heavenly Mountain Resort and then Mayor Pro Tem Wallace seconded the item be brought forward to City Council for discussion.

Consistent with the City Council Protocols, most recently amended and adopted on December 10, 2024, Section (I.10) states that “Under Agenda Planning Calendar or Councilmember Reports, a Councilmember may request that an item be placed on a future agenda. Upon the support of one (1) additional Council Member, direction shall be given to the City Manager to calendar the item for a convenient future agenda, but no sooner than the second meeting after the request was made.”
This item is being brought back to City Council consistent with City Council adopted Protocols.

Issue and Discussion: City Manager Irvin met with Shaydar Edelmann, Vice President/General Manager of Heavenly Mountain Resort on November 20, 2024, to discuss a potential Snow Removal Agreement. On November 27, 2024, Mr. Edelmann submitted a “Draft” Snow Removal Agreement, which included a request for Heavenly to assist the city with timely snow removal and application of deicer and abrasives on the following roads, while allowing Heavenly to perform snow removal, sanding, and deicing using its own equipment, supplementing current City’s snow operations:
 Lower Ski Run between Needle Peak and Pioneer Trail
 Saddle Road between Wildwood Avenue and Keller Road
 Keller Road between Saddle Road and the northeast entrance to the Resort’s parking lot  Wildwood Avenue between Needle Peak Road and Saddle Road, and  Needle Peak Road between Ski Run Blvd. and Wildwood Avenue. 98 Council Agenda Report – January 28, 2025 Page 2 of 4 The “Draft” agreement included language similar to the prior agreement approved by the City Council in place for the 2023-2024 season and included the following monetary aspects:
 Heavenly to pay the city a flat fee (Street Sweeping Fee) of $3,500, and  Heavenly to reimburse the city for the cost of any road repair work required as a result of damage caused by Heavenly’s negligent use of its snow removal or deicer equipment within thirty (30) days from Heavenly’s receipt of the undisputed invoice from the city showing repairs performed and monies due.

City Manager Irvin informed Mr. Edelmann that the requested item from then Mayor Bass on November 19, 2024, was to negotiate payment from Heavenly for the cost impacts related to extra snow removal work as well as traffic impacts from Heavenly patrons. Mr. Edelmann then provided City Manager Irvin with calculations detailing his estimated in-kind contributions based on average number of snowfall days and rates for operation of equipment. His estimation of approximately 900-hours of equipment time totaled a value of $196,500 per season. *Note – this figure will adjust up or down depending on the seasonal conditions.

During this time period City Manager Irvin had been working with the City’s Public Works Director, Anush Nejad to estimate the true cost of impacts related to extra snow removal work as well as traffic impacts from Heavenly patrons on the aforementioned city roads which lead to the Heavenly Cal Base which falls outside of the city limits.

The impact of snow plow operations on pavement includes the cost of repairs (e.g., resurfacing, crack filling, and pothole repairs). Snow plowing will also shorten a pavement's lifespan by several years, increasing maintenance and rehabilitation costs. Studies have shown that the overall cost of road repairs in areas with frequent snow removal operations is significantly higher than in regions with milder winters. In some regions, a 10-15% reduction in pavement life expectancy due to snow plowing is not uncommon.

Based on a typical pavement's life span of 20 years, snow operations by both City and Heavenly’s crew, can reduce pavement service life by 5 to 15 years.

In summary, the quantitative impact of snowplow equipment operation on pavement can be significant. Below is a breakdown of how snowplow operations affect pavement:
 Mechanical Wear and Tear
 Thermal Impact
 Pothole Formation and Cracking
 Load Stress
 Frequency and Duration of Plowing
Based on the studies described above, the life of pavement will be reduced between 5 and 15 years due to snow operations' impact. Therefore, a 10-year pavement life was assumed. The estimated pavement rehabilitation cost in 10 years, using a 4% annual inflation rate1, based on the 2024 unit pricing from the recent roadway rehabilitation program, is $2,452,648 or $245,265 annually. To calculate the fair share costs associated with Heavenly, the daily trip rate, based on 1,640 parking spaces using the Institute of Transportation Engineers (ITE) trip generation, was

1 The construction cost index for the last 20 years has ranged from 2% to 14% annually. 99 Council Agenda Report – January 28, 2025 Page 3 of 4 used. The estimated percentage of daily trips associated with Heavenly is 42% of the total daily trips for the affected roadways. Therefore, Heavenly's fair share cost is $103,011 annually.

To calculate the cost for normal wear and tear a 20-year pavement life was used. The total cost for pavement rehab is $1,657,647. Using the typical 20-year pavement life, the cost for repair at 4% inflation will equal $3,632,107 or $181,605 annually. The fair share of Heavenly’s impact at 42% will be $76,274 annually.

The net difference due to Heavenly’s snow operation impact is $26,737.

The total fair share obligation for Heavenly is $103,011 annually, with full replacement every 10 years due to snow operations impacts. See the attached Exhibit A for detailed calculations.

Although Heavenly’s is open for approximately five months during the winter season, the cost of infrastructure and pavement rehabilitation is constant. Based on the standardized traffic nexus impact analysis methodology, the total cost should be applied to the percentage of traffic associated with any development.

Insurance and Indemnification Requirements:

The “Draft” agreement submitted by Mr. Edelmann included the same “Hold Harmless and Indemnification” language from the 2023-2024 season agreement. That being said, staff would like to suggest that a Snow Removal Agreement include the City’s standard language for public works contracts because the type of work and potential liability would be comparable. The City’s standard language is provided below:

Insurance: We require $2M for commercial general liability and pollution liability, $10M in excess liability insurance, $2M for auto liability, and $1M for workers compensation.

Indemnification: We require to the fullest extent permitted by law, Contractor shall defend, indemnify, and hold harmless the City, its officials, officers, City Council Members, employees, agents, and their respective principals, officers and employees, and each of them, of and from any and all claims, demands, suits, causes of action, damages, costs, expenses, attorneys’ fees, losses, or liability, in law or in equity, of every kind and nature whatsoever related to, arising out of, or in connection with, Contractor’s operations to be performed under this Agreement. The obligations of defense and indemnity set forth in this Section shall not be limited by any insurance requirements.

Ancillary cost estimates to the city for managing snow and winter operations on the subject roads related to city snow removal, parking enforcement and traffic/chain control is estimated between $69,000 – light snow fall season and $107,000 – heavy snow fall season.

City Manager Irvin and Mr. Edelmann met on January 9, 2025, to discuss all the above and there was no agreement reached. City Manager Irvin informed Mr. Edelmann that he would be presented the information in this staff report to the City Council on January 28, 2025, to gain further direction from the City Council on negotiation terms.

Financial Implications:

There are no specific financial implications related to this agenda item; however, Council direction has the potential to recoup costs associated with a snow removal agreement or not pending agreement between the City of South Lake Tahoe and Heavenly Mountain Resorts. 100
Council Agenda Report – January 28, 2025 Page 4 of 4
Policy Implications:

Section 7.05.490 (Removal of Snow from city streets without permit prohibited – Exceptions) of the South Lake Tahoe City Code states, “It shall be unlawful for any person to move or remove any snow from any portion of the right-of-way of any street or to apply abrasives or deicers to any street without first having obtained a permit thereof from the director of public works or his/her designee, except in the following cases:

A. The removal of snow from directly in front of a private driveway for purposes of ingress and egress from the driveway or walkway to the cleared portion of the street.

B. The removal of snow by city employees or by contractors employed by the city.

Staff recognizes that the City Code grants the authority to the Public Works Director to permit a person [or entity] to remove snow from city streets, however, there has been long-standing practice of City Council granting such authority to Heavenly Mountain Resorts. Given the policy implications surrounding the snow removal operations, parking enforcement and traffic/chain control operations and past Council direction it is appropriate for this matter to come forward to City Council for consideration.
101
Road Segment SF Unit Price 1
Cost for Rehab
20-year Service Life
Heavenly's Share
Based on 42% Site
Traffic
Lower Ski Run Blvd Needle Peak Rd to Pioneer Trail 95700 $ 6.94 $ 664,158 $ 664,158 Saddle Rd Wildwood to Keller Rd 34840 $ 6.94 $ 241,790 $ 241,790 Keller Rd Lower Saddle Rd to Parking Lot 3500 $ 6.94 $ 24,290 $ 24,290 Wildwood Ave Needle Peak Rd to Saddle Rd 39900 $ 6.94 $ 276,906 $ 276,906 Needle Peak Rd Ski Run Blvd to Wildwood Ave 43200 $ 6.94 $ 299,808 $ 299,808 Sub-Total $ 1,506,952 $ 1,506,952
$ 150,695 $ 150,695
$ 1,657,647 $ 1,657,647
$ 1,525,485 3,632,107 $
$ 181,605 $ 76,274
$ 1,030,112 2,452,648 $
$ 245,265 $ 103,011
$ 26,737 63,659 $
1 - Based on 2024 Road Rehab Unit Cost
2 - Based on normal pavement life without the snow operation impact.

Annual Cost Differntial due Snow Plow Operations
3 - Based on with snow operations impact. Annual payment will renew after 10-years in perpetually, adjusted by the inflation rate.

Cost of Construction in 20-years at 4% annual construction inflation rate 2 Exhibit A

HEAVENLY SNOW OPERATIONS IMPACTS ON ROADWAYS
Contingency at 10%
Total Present Value (2024$)
Cost of Construction in 10-years at 4% annual construction inflation rate 3 Annualized Cost of Pavement Rehab with Snow Operations
Annualized Cost of Pavement Rehab - Normal Wear and Tear 102
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:8
Agenda Item: Local Tenant Preference Policy for Affordable Housing Executive Summary: At the City Council meeting on November 7, 2023, staff presented a local preference proposal framework. This discussion included the eligibility for tenant preferences, which type of developments would be subject to it, and a potential percentage of units subject to preference. At the May 7, 2024 City Council meeting, Resolution 2024-053 was passed authorizing the City Manager to enter into a Professional Services Agreement (PSA) and authorizing the Finance Director to appropriate $50,000 into the expense line item 25006024 for the scope of work from RSG Inc. to develop a Disparate Impact Analysis for the creation of a Local Preference Policy for Affordable Housing. The Disparate Impact Analysis supports the Local Preference Policy (Policy). The Policy is being presented to the City Council for adoption.

Requested Action / Suggested Motions:

Pass a Resolution adopting the Local Tenant Preference Policy for Affordable Housing.

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-Local Tenant Preference Policy for Affordable Housing.docx 02-Resolution_Local_Tenant_Preference_Policy_CC_1.28.24.docx 03-Disparate Impact Study.pdf
103
Council Agenda Report- January 28, 2025 Page 1 of 4
City of South Lake Tahoe
Report to City Council
Meeting Date: January 28, 2025
Title: Local Tenant Preference Policy for Affordable Housing Location: City-wide
Responsible Staff Member: Jessica Wackenhut Lomeli, Housing Manager Background: While still relatively rare in the state, local tenant preference policies are becoming more common throughout jurisdictions in California to protect the most vulnerable populations experiencing displacement pressures. Local workers who are unable to access affordable housing in the city face longer and more costly commutes. This includes increases to transportation expenses, traffic congestion, greenhouse gas emissions, reduced access to physical activity, social networks, and community engagement.

A local tenant preference policy is one tool cities are using to help prioritize the efficient use of scarce affordable housing resources. Senate Bill 649 (SB 649, Cortese), passed September 28, 2022, authorizes low-income housing tax credits and tax-exempt bonds to apply to qualifying affordable housing projects subject to local tenant preferences for lower income local tenants at risk of displacement or who have been displaced. This law creates a new opportunity to adopt a local tenant preference for affordable housing projects that allows such projects to receive the tax credit and tax-exempt bond support that is usually needed for financial viability. To ensure that the preference policy complies with fair housing law, the bill requires jurisdictions to create a webpage containing all related materials within 90 days of adoption, and to annually provide the Department of Housing and Community Development a current link to the webpage.

Fair Housing law requires Disparate Impact Analysis for some preferences, including a local housing preference, to ensure that it does not unnecessarily exclude people from housing opportunities. This incorporates the “disparate impact” in which a policy is facially neutral but affects people in protected classes differently, therefore, maintaining patterns of segregation. A local housing preference is vulnerable to a disparate impact claim if the preferred group is significantly more homogenous than the other eligible applicants.

Property owners of state and federal funded affordable housing are required to affirmatively market their property’s units as part of their property management plan or tenant selection process. A potential local tenant preference policy would impose an additional requirement for owners to prioritize city residents and/or workers for 104
Council Agenda Report- January 28, 2025 Page 2 of 4
affordable housing units as defined by the California Department of Housing and Community Development.

At the City Council meeting on November 7, 2023, staff presented a local preference proposal framework. This discussion included the eligibility for tenant preferences, which type of developments would be subject to it, and a potential percentage of units subject to preference. At this meeting, Council did not establish a definition of “local” for the purpose of the preference but rather chose to decide based on the Disparate Impact Analysis (Analysis).

At the May 7, 2024, City Council meeting, Resolution 2024-053 was passed authorizing the City Manager to enter into a Professional Services Agreement (PSA) with RSG INC and authorizing the Finance Director to appropriate $50,0000 into the expense line item 25006024 for the scope of work from RSG INC, which was selected to conduct the Analysis through a competitive bidding process. The scope included project management, an analysis of current housing, economic, and demographic data to better understand the nature of displacement, a final Analysis report and presentation to City Council for a Local Preference Policy for Affordable Housing.

Issue and Discussion: The Analysis (Attachment 3) analyzed demographic trends of comparable jurisdictions in or near the Lake Tahoe region to understand if the City is experiencing unique displacement pressures. The comparable jurisdictions included El Dorado County, Douglas County, and the unincorporated communities of Meyers and Tahoma.

There are six primary datapoints in the Analysis that support the creation of a local preference policy without creating a disparate impact.
 Declining Population - The city’s population declined from 2020 to 2024, inclusive of a decline in working-age (20 to 65 years old) persons. Furthermore, two federally protected classes are increasing in population (senior and non-white minority).  Declining Labor Force - The city’s labor force declined over the same period; with accommodations and food service seeing the largest workforce decline among employment industries.
 Labor Force Residency – A considerable amount of the labor force in South Lake Tahoe commutes between California and Nevada. Research indicates that roughly 1 in 5 workers in the city live in Nevada and commute across state lines for employment. Additionally, the city is seeing shorter commute times indicating that those who live in the city increasingly work close by. However, comparable jurisdiction commute times are increasing, confirming the increasing displacement of those who may work in South Lake Tahoe but live elsewhere. 105
Council Agenda Report- January 28, 2025 Page 3 of 4
 High Home Vacancy Rate - The city vacancy rate is the second largest among the comparable jurisdictions and increased from 42% to 43% from 2020 to 2024.

Seasonal vacancies comprise nearly 9 out of 10 city vacancies.  Declining Rental Housing Units – The percentage share of renter-occupied housing declined from 2020 to 2024 by 1.2 percentage points; a trend replicated among all comparable jurisdictions.
 High Housing Costs – Homebuyers and renters are cost-burdened; meaning households pay more than 30% of their income on housing costs. Data indicates an average South Lake Tahoe homebuyer must use 79% of their income for monthly mortgage payments at current prices and renters use 34% of their income for monthly rent. Since 2022 median home values have increased 17%. Similarly, average rents have increased 21% since 2021.

Existing market conditions are causing a disparate impact on city residents and workers.

A local tenant preference policy prioritizing local residents and workers may alleviate ongoing disparate impacts and displacement from the community.

Staff recommends that City Council receive the report and adopt the Local Preference Policy for Affordable Housing (Attachment 3).

Financial Implications: The preparation of the Disparate Impact Analysis was budgeted in the Professional Services Agreement for a total not to exceed amount of $50,000 to allow for flexibility in the scope of work.

The implementation of a Local Preference Policy for Affordable Housing will require staff time to provide updates to property management companies and owners regarding the policy.

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

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

City General Plan Housing Element
Policy 2-1. The City shall ensure a stable community by helping tenants to become homeowners and preserving the ability for residents to afford housing in the community where they grew up.
106
Council Agenda Report- January 28, 2025 Page 4 of 4
Policy 2-3. The City shall encourage a range of housing options so that people who work in South Lake Tahoe can choose to live in the city.

Policy 2-5. The City shall recognize that it will become difficult to attract employees if they cannot afford to purchase or rent housing in South Lake Tahoe. The City shall encourage and support programs and activities that create a robust local economy that provides residents with good paying employment and the means to purchase and/or rent housing in the City.
107
Resolution 2025-XXX January 28, 2025 Page 1 of 4
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
January 28, 2025
Authorizing the Adoption of a Local Tenant Preference Policy

BACKGROUND
A. Local tenant preference policies are becoming more common throughout jurisdictions in California to protect the most vulnerable populations experiencing displacement pressures.

B. A local tenant preference policy is one tool cities are using to help prioritize the efficient use of scarce affordable housing resources.

C. Senate Bill 649 (SB 649, Cortese), passed September 28, 2022, authorizes projects using low-income housing tax credits and tax-exempt bonds to implement local tenant preferences for lower income local tenants at risk of displacement or who have been displaced.

D. Fair Housing law requires Disparate Impact Analysis for some preferences to ensure that those preferences do not have the effect of excluding protected classes from housing opportunities. This incorporates the “disparate impact” in which a policy is facially neutral but affects people in protected classes differently, therefore, maintaining patterns of segregation.

E. The City contracted with RSG, Inc. to conduct a disparate impact study for a local tenant preference policy in South Lake Tahoe, and their report concluded, “A tenant preference policy may assist in increasing housing opportunity for city residents and workers while not negatively affecting the protected classes. Additionally, a tenant preference policy prioritizing local residents and workers may alleviate ongoing disparate impacts and displacement from the community.”
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Adopts the Local Tenant Preference Policy (Attachment 1).

Adopted by the City of South Lake Tahoe City Council on January 28, 2025 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
108
Resolution 2025-XXX January 28, 2025 Page 2 of 4
Tamara Wallace, 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.

109
Resolution 2025-XXX January 28, 2025 Page 3 of 4
ATTACHMENT 1

CITY OF SOUTH LAKE TAHOE LOCAL TENANT PREFERENCE POLICY

110
Resolution 2025-XXX January 28, 2025 Page 4 of 4

CITY OF SOUTH LAKE TAHOE LOCAL TENANT PREFERENCE POLICY A. To the extent permissible under applicable state and federal law, people who live and/or work in the City of South Lake Tahoe and who meet the income qualifications for an affordable unit shall have priority over other persons on the waiting list to rent the affordable unit in affordable housing development which is supported or sponsored by the City of South Lake Tahoe (the “City”) including:

1. Affordable housing developments which are funded in whole or in part by the City of South Lake Tahoe.

2. Affordable housing developments subject to a Development Agreement.

3. State-funded affordable housing developments pending HCD approval. “Affordable housing development” means a deed restricted residential property where the rent is limited to no more than affordable rent as such term is defined in California Health and Safety Code Section 50053 for lower income households pursuant to legally binding restrictions recorded for the benefit of a Government Agency but does not include permanent supportive housing, any project subject to or using the coordinated entry system, any housing reserved for special populations (i.e. veterans, rapid rehousing) or inclusionary rental units constructed pursuant to South Lake Tahoe City Code chapter 6.27.

B. This policy shall apply to all developers, owners and their agents, successors and assigns, and property managers of an affordable housing development in one of the categories listed above. The following “local preference” eligibility guidelines shall apply whenever affordable rental housing units are made available to eligible applicants:

Preference on the wait list for the available affordable units in the affordable housing development will be given to a household who as of the date of application has at least one adult member of the household who:

1. Currently has primary residency in the City of South Lake Tahoe or had primary residency in the City of South Lake Tahoe in the preceding ten (10) years; or

2. Is employed with a minimum twenty (20) hour work week by an employer based in the City of South Lake Tahoe and either: (1) works in the City of South Lake Tahoe; (2) has been hired to work in the City of South Lake Tahoe; or (3) is expected to work in the City of South Lake Tahoe as a result of planned employment with a bona-fide offer.
111
Via Electronic Mail
To: Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
From: Tara Matthews, Principal
Dena Fuentes, Director
Brice Wildemuth, Analyst
RSG, INC.

Date: December 20, 2024
SUBJECT: DISPARATE IMPACT ANALYSIS OF A PROPOSED LOCAL TENANT

PREFERENCE POLICY
RSG was retained by the City of South Lake Tahoe (“City”) to conduct a disparate impact analysis of a proposed local tenant preference policy applicable to affordable housing units constructed in the city. A tenant preference policy prioritizes the waitlist of affordable housing applicants based on a preferred living situation or classification. The City is evaluating the creation of such a policy to prioritize South Lake Tahoe residents and workers. To create such a policy, the City must comply with the disparate impact doctrine ensuring that policies or practices do not have a discriminatory effect on protected groups, even if there is no explicit discriminatory intent. RSG assessed alignment with state and federal fair housing laws to ensure there are no potential disparate impacts on protected classes. This report summarizes RSG’s findings and presents recommendations on tenant preference policy options for the City’s consideration.

BACKGROUND
The U.S. Housing and Urban Development Department (“HUD”) allows the creation of tenant preference policies to prioritize tenant applicants based on certain preferences. The local policy must comply with HUD’s Occupancy Handbook 4350.31
. Preferences allowed by HUD include,
but are not limited, to those for federal statutory displacement, including those displaced by government action or presidentially declared disaster, place of residency, veterans, working families, disabilities, and victims of domestic violence. Preference to applicants displaced by government action or a presidentially declared disaster receive prioritization. HUD allows state and local governments to adopt preferences so long as they comply with federal civil rights and 1 Last updated in November 2013.
112
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 2 ends

fair housing laws. HUD requires that property owners or potentially the jurisdiction investing HUD funds to obtain HUD approval before implementing any tenant preference policies.

EXECUTIVE SUMMARY
On March 17, 2023, HUD announced the publication of the Final Rule titled “Restoring HUD’s Discriminatory Effects Standard”, rescinding the 2020 Fair Housing Act rule and restoring the 2013 discriminatory effects rule. The 2013 Rule aligns closer with how the Fair Housing Act has been applied in courts and aims to eliminate discriminatory practices, intentional or otherwise, from the housing market. Thus, the discriminatory effects doctrine addresses policies causing systemic inequality in housing, regardless of whether they were adopted with discriminatory intent. To create a local tenant preference policy, the City must ensure compliance with the Fair Housing Act and the 2023 Final Rule.

To establish that the city is experiencing displacement pressures, the demographic trends of comparable jurisdictions in or near the Lake Tahoe region were analyzed. The jurisdictions presented in this report include El Dorado County, Douglas County, and the unincorporated communities of Meyers, and Tahoma. These areas were selected due to their similarity to the city and their emigration trends. Below are six (6) key trends identified from the data:
• Declining Population - The city’s population declined from 2020 to 2024, inclusive of a decline in working-age (20 to 65 years old) persons. Furthermore, two federally protected classes are increasing in population (senior and non-white minority). • Declining Labor Force - The city’s labor force declined over the same period; with accommodations and food service seeing the largest percent decline among employment industries.
• Labor Force Residency – A considerable amount of the labor force in South Lake Tahoe commutes between California and Nevada. Research indicates that roughly 1 in 5 city workers commute from Nevada into California for employment. Additionally, the city is seeing shorter commute times indicating that those who live in the city increasingly work close by. However, comparable jurisdiction commute times are increasing, confirming the increasing displacement of those who may work in South Lake Tahoe but live elsewhere. • High Home Vacancy Rate - The city vacancy rate is the second largest among the comparable jurisdictions and increased from 42% to 43% from 2020 to 2024. Seasonal vacancies comprise nearly 9 out of 10 city vacancies.
113
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 3 ends

• Declining Rental Housing Units – The percentage share of renter-occupied housing declined from 2020 to 2024 by 1.2 percentage points; a trend replicated among all comparable jurisdictions.
• High Housing Costs – Homebuyers and renters are cost-burdened; meaning households pay more than 30% of their income on housing costs. Data indicates South Lake Tahoe homebuyers must utilize 79% of their income for monthly mortgage payments and renters 34% of their income for monthly rent. Since 2022 median home values have increased 17%. Similarly, average rents have increased 21% since 2021.

RSG reviewed other jurisdiction’s tenant preference policies to draft a definition of “local” that complies with HUD’s Occupancy Handbook 4350.3. The policies from the cities of San Jose, Los Angeles, National City, Chula Vista, and New York were reviewed, as well as two example policies from South Lake Tahoe: the Lease to Locals program parameters, and the “local” definition in the Request for Proposals (“RFP”) for this analysis. The “local” definitions vary slightly between jurisdictions but contain similar preferences.

Based on this analysis, RSG recommends for City consideration the proposed definition of “local” that will be the basis of the local tenant preference policy for affordable housing:

DEMOGRAPHICS AND DATA
The demographic trends of the city region play a foundational role in proving a need for a local tenant preference policy. The data reveals that the city is continuing to experience displacement pressures that are apparent throughout the region. The population is decreasing, laborers are leaving, vacancies are increasing, and housing costs keep rising.

A household who as of the date of application has at least one member of the household who:

A. currently has primary residency in South Lake Tahoe, or (2) is experiencing or has experienced displacement from South Lake Tahoe; or
B. a local worker whose employment is based on a minimum twenty (20) hour work week and either (1) currently works in South Lake Tahoe, (2) has been hired to work in South Lake Tahoe, or (3) is expected to work in South Lake Tahoe as a result of planned employment with a bona-fide offer.
114
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 4 ends

RSG reviewed numerous datapoints to analyze the current demographic climate in the city and compared them to nearby jurisdictions (El Dorado County, Douglas County, Meyers, and Tahoma). Data from years 2024 and 2029 are from ESRI’s Business Analyst software. Data from all other years generally are from the U.S. Census Bureau’s American Community Survey (“ACS”) 5-year survey or the 2020 Decennial Census unless otherwise noted. All references in this analysis to South Lake Tahoe refer to the incorporated city and not to the mailing address area which may include some unincorporated El Dorado County areas. RSG also reviewed the City’s 2022 – 2027 Housing Element. Six (6) primary datapoints support the creation of a local tenant preference policy without creating a disparate impact.
• Population,
• Labor Force,
• Housing Vacancy Rates,
• Housing Supply,
• Labor Force Residency, and
• Housing Cost Burdens.

Population
Based on ESRI Business Analyst data, the population in the city is declining and is projected to decline over the next several years. As reflected in Table 1, the city’s 2024 population declined by 2% since 2020 and is expected to continue this decline to 2029. Among the comparables, only Meyers experienced a similar decline during the same period. All other jurisdictions saw population growth going into 2024. Between 2024 and 2029, the city, Meyers, and Tahoma populations are projected to decline. Whereas, El Dorado and Douglas counties are projected to experience slight population growth.

Table 1 – Population
The declining population in the city and the projected declines of Meyers and Tahoma, provide evidence to the displacement trends that are occurring in the South Shore region. Especially notable is the difference in population trends from 2020 to 2029 between El Dorado County 115
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 5 ends

(increase of 1.9%) and the city (decrease of 3.5%). When excluding the city, the remainder of El Dorado County, which includes much of the Sacramento valley, is seeing a larger population growth than what is shown in Table 1. The data confirms the declining population trend of recent years.

Other population variables were analyzed to evaluate trends among federally protected classes, including race and age. Though the overall population is declining, the analysis indicates that seniors and non-white minorities are increasing as a share of the city’s population. The share of the population that is a non-white minority group in the city is projected to reach 48% by 2029, up from 41% in 2022. In the comparable jurisdictions non-white minorities are increasing as a share of the population similar to the city. Meyers is the exception to this, where the 2022 non-white minority share of the population of 21% is expected to stay the same by 2029. Additionally, age statistics show an increasing 65 year old and up population since 2010 in all jurisdictions including the city, while showing a decline in 20 to 65 year olds. The data shows that while working age residents are leaving, the share of resident seniors is increasing.

Labor Force
The city is seeing declines in its labor force, particularly in accommodations and food service workers. According to the 2022 five-year ACS dataset, the labor force in the city has declined by about 7% since the 2020 decennial census. Over the same sample period, both Douglas County and Meyers saw declines in their labor force. El Dorado County and Tahoma saw increases.

Table 2 summarizes the labor force comparison.

Table 2 – Labor Force
The labor force by industry trends found that the accommodations and food service sector was suffering the largest declines from 2022 to 2024. Anecdotally, some businesses have reported issues in retaining workers which this data supports. Table 3 presents the three highest declining industries with regards to total employees.
116
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 6 ends

Table 3 – Industry Employment Trends 2022 to 2024
Industry Percentage
Declined
Accommodations/Food Service -2.06%
Professional/Scientific/Technical
Services
-1.04%
Other Services excluding Public
Administration
-0.89%
A declining accommodations and food service market may reflect the housing pressures on the working class that exist in the city, as many of those jobs were filled by individuals in the 20-65 year old age range. Industry growth trends differed in the comparable jurisdictions with the starkest contrast in the Transportation and Warehousing sector. That sector, comprised mostly of industrial jobs, showed a decline in the city while increasing in each comparable jurisdiction.

Accommodations and food services declined in El Dorado County (-0.63%) and Meyers (-0.54%), while Douglas County and Tahoma saw an increase (1.15% and 4.43% respectively). The shifting accommodations and food service labor market may reflect the displacement of workers further away from the South Lake Tahoe area. Similar to population, the city is experiencing a decline in its workforce that exists in some comparable jurisdictions. Both population and labor force data exhibit ongoing displacement in the city. The 20-65 year old population decline may be associated with the labor force decline.

Vacancies
Housing unit vacancies are continuing to increase in the city. HUD defines vacant units as those dwelling units not leased to a household and not reported as a non-dwelling, merged, or otherwise occupied unit.2 The ESRI 2024 vacancy rate for all housing units was approximately 43%, an increase of 1% since 2020. Seasonal vacancies, which are vacant homes used for seasonal or vacation rentals for a majority of the year, make up a majority share of vacant housing units; 87% as of 2022. This trend is replicated in Meyers and Tahoma with both high vacancy rates and a high share of those vacancies for seasonal use. At least 6 out of 10 vacant units were for seasonal use in all comparable jurisdictions.
3 The data shows that all jurisdictions, except Douglas County, saw an increase in their total vacancy rate from 2020 to 2024. Seasonal vacancies showed increases of at least 4% across the California jurisdictions. However, Douglas County’s increase was smaller than the others at just 1%. The markets on each side of the state border appear to trend in slightly opposite directions, indicating an expanding seasonal market in California, and a stable or tightening one in Nevada. Table 4 summarizes these trends. 2 An “otherwise occupied” unit is a unit occupied but not leased to an eligible family member or household. 3 Seasonal, Rental, and For-Sale vacancy data was not available for any year past 2022 due to the survey length of the ACS 5-year datasets.
117
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 7 ends

Table 4 - Vacancy Rate and Seasonal Vacancies4
When evaluating for-sale and rental vacancies, RSG has found an increase in for-sale city vacancies, and decrease in rental vacancies. In 2022, only 3% were for-sale units and 7% were rental units (see Table 5 below). In El Dorado and Douglas counties, the rental vacancy share was slightly higher. Meyers and Tahoma showed an almost non-existent rental vacancy market reflecting their high seasonal vacancy rate. Across all jurisdictions the data shows a declining rental vacancy market. In contrast, 3 of the 5 jurisdictions had increasing for-sale vacancies, with South Lake Tahoe increasing the most since 2020. The data analyzed in this section does not account for newly constructed or planned projects that could expand the supply of rental units.

Table 5 – For-Sale and Rental Vacancies
Housing Supply
The city housing supply is shifting from renter occupied units to owner occupied as shown in Tables 6 and 7. The share of housing units in the city that are renter occupied declined approximately 1% from 2020 to 2024, to about 34%. By 2029 this trend is expected to continue 4 The percentage represents the share of the total units within the respective community. 118
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 8 ends

with rentals dropping an additional 0.1%. The declining rental market was duplicated in each of the comparable jurisdictions except Meyers where renter occupied units increased as a share of the overall housing stock by about 2%. In all jurisdictions including the city owner occupied units increased suggesting the decline in rentals may be directly correlated.

Table 6 – Renter Occupied Unit Percent of Total
Table 7 – Owner Occupied Units Percent of Total
The shifting housing market and high vacancy rate in the city point to the underlying displacement issue. Additionally, the housing market data supports the idea that displacement is regional, especially among the California comparable jurisdictions.

As indicated in Housing Element section 4-31, “Many workers, particularly seasonal workers, reside in older motel rooms that are less appealing to visitors and were never intended for permanent occupancy.” Depending on the season, the motel rates can cost more than an equivalent market-rate studio apartment making it difficult to save for a deposit thus continuing the motel room cycle.

Data presented in this section suggests market conditions have not improved to alleviate displacement or eliminate the motel rental trend. The increasing owner-occupied units bolsters the assertion that the housing market is shifting away from working class renters. 119
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 9 ends

Labor Force Residency
Close to 1 in 5 workers in the city live in Nevada. In 2022, 82% of the city’s working population worked in California, while 18% worked in Nevada. For the same time period, no comparable jurisdiction had a rate higher than 11%. Following that trend, El Dorado County, Meyers, and Tahoma had a rate of in-state workers above 90% as shown in Table 8. From 2019 to 2022, Douglas County was the only jurisdiction that saw a decrease in their in-state worker population.

This decline may be evidence of the displacement of city residents who still commute to California.

Table 8 summarizes these trends.

Table 8 – In and Out of State Employees
Additionally, the city saw a decline in its commute times. Commutes 30 minutes and longer declined in the city, while they increased in each of the comparable jurisdictions. In contrast, commutes 15 minutes and shorter increased in the city. These shorter commutes also increased in each of the comparable jurisdictions, with the exception of El Dorado County. The decrease in commute times indicates more residents live and work in the city. This indicator also reflects impacts due to population decrease as residents have been displaced due to housing costs. This coupled with the slight uptick in out-of-state workers in Douglas County, provide further evidence of resident displacement from South Lake Tahoe.

Housing Cost Burden
The research shows that the main source of displacement in the city comes from an increasing housing cost burden, which means more than 30% of the median household income is spent on housing costs. Median home values in the city increased approximately 17% from 2022 to 2024 and are projected to increase into the future. By comparison the median household income was $68,658 in 2024, an increase of about 1% from 2022. Over 79% of the median income is needed for an estimated mortgage payment on the median home; priced at $670,442 in 2024. This is well over the 30% threshold and shows that a median income household cannot afford a mortgage on a home in the city today. In the comparable jurisdictions home values and mortgage burdens 120
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 10 ends

increased at similar rates. Douglas County homes remain the least expensive with a mortgage burden of roughly 57% in 2024 for the same period. Tables 9 and 10 below present the cost burdens of the home market in more detail.

Table 9 - Median Home Value
Table 10 – Mortgage Cost as Percentage of Monthly Income According to Yardi rent data, average rent costs in the city have continued to increase in recent years. Yardi data, which is limited to just the city, indicates that average rents have increased about 21% since 2021 from $1,590 to $1,930 in July 2024. A city resident with the median household income would spend 34% of their monthly median household income on rent. When using a different source, Zillow, a similar increasing trend is shown. Median apartment and condo rent saw a one-year increase of about 7%. When looking at single family home rent alone, the city saw its market cool with no change from the prior year. This may be due to the loss of working age persons and families that normally would rent such units. The data from both Yardi and Zillow shows that rental housing costs in the city are increasing. 5 Due to the scarcity of rent data for the comparable jurisdictions, a proxy measure was used to analyze the trends in rental costs. The ACS 5-year dataset has data on household rent costs in 5 Yardi and Zillow did not have data for any comparable jurisdiction. 121
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 11 ends

ranges (e.g. under $500, above $1,000, etc.). RSG chose to compare the rate of households with rent at or above $2,000. This threshold of $2,000 constitutes a cost burden for a household with the median income in the city. From 2020 to 2022 the city saw households paying $2,000 or more in rent increase from 7% of households to 20%. This 13 percentage point increase was the second largest increase among the comparables, behind El Dorado County. All comparable jurisdictions saw increases in the share of households paying $2,000 or more in rent. Douglas County’s rate of rent burdened households increased the third highest amount but still remained the lowest among the comparables in 2022. Table 7 showcases this data:

Table 7 – Percent of Households with $2,000 or more in Rent Costs The housing cost data analyzed illustrates the ongoing affordability issues. When looking to rent an apartment or purchase a home, Douglas County provides lower priced options that encourage some out migration from South Lake Tahoe. However, the data is complex and shows that some displacement trends may affect communities in Douglas and El Dorado counties the same.

Generally though, the data supports that South Lake Tahoe is experiencing displacement pressures and which is a regional trend.

Demographic Summary
Existing market conditions are causing a disparate impact on city residents and workers. As stated, the Housing Element states many seasonal workers reside in older motel rooms not designed for long-term residential occupancy. Data from RSG’s analysis revealed that declining renter occupied units, increasing housing costs, and increasing seasonal vacancies are attributing to the non-traditional housing choices. Additionally, the City’s labor force and working age population declined from 2020 to 2024. Furthermore, the city has seen an increase in senior and non-white minority populations, which are protected classes. A tenant preference policy may assist in increasing housing opportunity for city residents and workers while not negatively affecting the protected classes. Additionally, a tenant preference policy prioritizing local residents and workers may alleviate ongoing disparate impacts and displacement from the community. 122
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 12 ends

POLICY AND LEGAL FRAMEWORK
As indicated previously, any local preference policy must comply with the disparate impact doctrine and ensure that no policies or practices have a discriminatory effect on protected groups, even if there was no explicit discriminatory intent. RSG analyzed local tenant preference policies across the state of California. Sample policies included a review of San Jose, Los Angeles, National City, Chula Vista, and New York, as well as two example policies from the City: the Lease to Locals program parameters, and the “local” definition included in the Request for Proposals (“RFP”). A summary of the polices is included in Attachment 1. Relevant state and federal policies were also reviewed, such as California Government Code Section 7061, and the HUD Occupancy Handbook 4350.3.

Eligibility of Tenant Preference
Research shows that jurisdictions are legally allowed to create a local housing preference with HUD approval. To receive HUD approval, a local preference policy must comply with the discriminatory effects doctrine and ensure that no preferences therein have a disparate impact on protected groups (i.e. race, gender, age, disability, national origin, religion), even if there was no discriminatory intent. The HUD Occupancy Handbook (4350.3 Sec. 4-6) provides guidance to jurisdictions on implementation of a local housing preference policy. Preferences may include, but are not limited to, federal statutory displacement, including those displaced by government action or presidentially declared disaster, place of residency, veterans, working families, disabilities, and victims of domestic violence. The following guidelines must be followed:
• Preference can only be applied to order of priority on a housing waitlist. • Must prioritize households displaced by government action or a presidentially declared disaster above all other preferences.
• Length of time as a resident or employee may not be used as a factor.

Affordable Housing Developments
California Government Code 7061 establishes a state policy supporting local tenant preferences for lower-income households at risk of displacement due to rapid growth or increasing housing prices. This policy applies to affordable housing projects financed through low-income housing tax credits and tax-exempt private activity bonds. The Government Code 7061 specifically states:
“(a) It is the policy of the state of California that lower income individuals residing in neighborhoods and communities experiencing significant displacement pressures and gentrification due to rapid growth or increasing housing prices need access to housing that is affordable and that assists those households in avoiding displacement. To the extent feasible and consistent with other state and federal 123
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 13 ends

laws, the low-income housing tax credit program and tax-exempt bonds for qualified residential rental properties defined under subsection (d) of Section 142 of the Internal Revenue Code used to create and preserve affordable housing may be used to support access to housing that would allow households facing or at risk of displacement to remain in the community.”
Research of jurisdictions with local housing preference policies demonstrates that there is flexibility in how this provision is applied. For example:
• San Jose and Los Angeles both restrict their tenant preference policies to projects assisted by the city, including financial assistance, land donations, and ground leasing. • Both National City and Chula Vista policies apply to any multi-family affordable rental housing development in the city regardless of funding.
• National City further restricts their policy by applying it to units restricted at 80% AMI or below during the initial lease-up period only.

RECOMMENDATIONS
The purpose of this report is to determine if a local tenant preference policy can be considered without creating a disparate impact. The data reveals that the city is continuing to experience displacement pressures that are part of a regional trend in the area. The population is shrinking, laborers are leaving, vacancies are increasing, and housing costs keep climbing. Based upon the data analyzed in this report, current market conditions are already imposing a disparate impact on residents and workers. Therefore, there is sufficient justification to adopt a local tenant preference policy for affordable housing that would help reverse said disparate impact.

RSG is recommending the adoption of a tenant preference policy with the recommended “local” definition. This definition was drawn from the policies of San Jose, Los Angeles, and National City. RSG believes the definition aligns with Government Code 7061 and HUD’s Occupancy Handbook 4350.3.

Adopt a local tenant preference policy for households who meet the following “local” definition:
124
Zachary Thomas, Director of Development Services
Jessica Wackenhut, Housing Manager

CITY OF SOUTH LAKE TAHOE
December 20, 2024

Page 14 ends

ATTACHMENTS
• Attachment 1: Surveyed Definitions of “Local” – Example Preference Policies A household who as of the date of application has at least one member of the household who:

A. currently has primary residency in South Lake Tahoe, or (2) is experiencing or has experienced displacement from South Lake Tahoe; or B. a local worker whose employment is based on a minimum twenty (20) hour work week and either (1) works in South Lake Tahoe, (2) has been hired to work in South Lake Tahoe, or (3) is expected to work in South Lake Tahoe as a result of planned employment with a bona-fide offer. 125
ATTACHMENT 1
Surveyed Definitions of “Local”
South Lake Tahoe:

Lease to Locals
A household where all adult residents earn no more than 125% of the AMI, was $79,688 at the time of adoption, and where 50% of the working adults over 18 years of age work at least 20 hours per week at an employer based in the “South Shore”, defined in the South Shore Housing Needs Assessment.

South Lake Tahoe:

Disparate Impact
RFP
South Lake Tahoe Residents and Workers. Residents defined as a household with at least one adult member whose principal place of residence at the time of the application is within SLT. Worker defined as a household with at least one adult member who is employed 20 hours per week by an employer based in the “South Shore”, defined in the South Shore Housing Needs Assessment.

National City, San
Diego County
(2016)
Current Residents, defined as those who currently have “primary residency” in National City. Residency can be verified by site visits or written verification from landlords. Applicable only to new projects that have restricted units at or below 80% of AMI. Local preference is only for initial lease-up of a new project, once lease up is complete, local preference is nullified for that project.

City of San Jose,
Santa Clara County
(2023)
Local is defined as “lower-income households” who are (1) at risk of displacement, (2) meet all qualifications for renting the unit, and either (3.i) reside in a High Displacement Area or (3.ii) reside within the Council District of the Affordable Housing Property they applied for. Displacement determined by UC Berkeley Urban Displacement Project data, among other sources. Note: Local preference is limited to 35% of affordable housing units at the property as defined in City program.

City of Los
Angeles, Los
Angeles County
(2024)
Los Angeles emphasized in their staff report that they utilized definitions derived from HUD’s Occupancy Handbook 4350.3 (Sections 4-1 and 4-6). Their policy provides preference to “city residents” and “city workers”. Definitions below:
a. City residents: Those who live in the City as of the date of the application
b. City workers: those who work in the City, have been
hired to work in the City, or are expected to live in
the City as a result of planned employment with a
“bona fide” offer as of the date of the application.

City of Chula Vista,
San Diego County
(2024)
Applicants with at least one household member whose primary place of residence is in Chula Vista; or Applicants with at least one household member who works within or has been hired to work within the Chula Vista, as that person’s place of full-time employment; or Applicants with at least one household member who has received a bona fide offer of employment within Chula Vista.
126
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: January 28, 2025
Agenda Item #:9
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 - 01 23 2025.pdf
127
2025 Agenda Planning Calendar (Updated 01 23 2025)
Agenda Item Agenda Section
Feb. 11, 9 a.m.

Feb. 25, 5:30 p.m. City Attorney Purchase of BMO Property UB Dev. Services Pay for Success Contracts with TCH and LVF Consent Finance 2024-2025 Master Fee Schedule PH
Quarterly Budget and Financial Status Report as of December, 2024 Consent Investment Portfolio Report as of December 2024 Consent Fire Fire Department Annual Report Consent
HR Updates to Unrepresented Employee Group Consent
Police Police Department Annual Report Consent
Stateline Transit Center Parking and Signage NB
Public Works Annual Roadway Rehab Contract Reconciliation Consent Road/Drainage Presentation NB
March 11, 9 a.m. Dev. Services General Plan Annual Progress Report Future Funding for Long-Term Warm Room
Finance Fiscal Year 2024-2025 Mid-Year Budget Review NB Department
128
2025 Agenda Planning Calendar (Updated 01 23 2025)
Ski Run BID Annual Report and Budget NB
Police AB41 Policy Adoption Consent
Shared Mobility Ordinance Update
Public Works Transfer Measure S funds to Tahoe Valley Project (Phase 1 Road Rehab) Consent March 18, 9 a.m. Strategic Planning Session
Mar. 25, 3:00 p.m.

Mar. 25, 5:30 p.m. Finance 2024-2025 Master Fee Schedule Adoption Consent Public Works Award Pioneer Trial PH II
Award Pioneer Trail HSIP
April 22, 5:30 p.m. Finance 2024 Annual Comprehensive Financial Report (ACFR) Consent Ski Run BID to Levy Assessment for Business License year 2025/2026 PH Dev. Services CTC Land Exchange
Mid-Town Artea Plan Draft Presentation and Implementation Discussion Public Works Award 2025 Road Rehab Drainage Replacement project May 6, 9 a.m. City Clerk Military Appreciation Month Proclamations Dev. Services Building Code Appendix AW Adoption-3D Printed Structures Joint City Council/Planning Commission Ethics Training
129
2025 Agenda Planning Calendar (Updated 01 23 2025)
May 20, 5:30 p.m. Finance Quarterly Budget and Financial Status Report as of March, 2025 Consent Investment Portfolio Report as of March 2025 Consent
June 3, 9 a.m.

June 17, 5;30 p.m.Finance Direct Charge of Mello-Roos Special Tax for CFD 1995-1 for FY 25-26 City Consent STRSA
Annual Special Tax for CFD 2001-1 Series 2015 Special Tax Refunding BonSTRSA Consent City Clerk Records Management Policy
City Manager 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 Discussion: Second Home Cap/Permit Options
Public Works Heavenly Area Amendments to No Parking Zones Consent Finance Disolution STJPPFA
Unscheduled/Pending
130
2025 Agenda Planning Calendar (Updated 01 23 2025)
Fire Donation of Retired Fire Engine to LTCC
Parks & Rec Events and Facitilies Naming Rights Discussion New Rec. Center Meeting Room Naming Rights Approval & Funds Transfer Police 2024 Update to Parking Fees in the Bellamy Parking Garage Barton Community Health Needs and Harm Reduction Update 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
Sierra Blvd. Speed Reductiuon Plan
Award Lakeview and Ski Run Electrical Upgrades
Award Contract for Hwy 50 Corridor Study
131
2025 Agenda Planning Calendar (Updated 01 23 2025)
Award Pioneer Trail Phase 2 Project
Award PS&E for Sugar Pine Bike Path Project
Award Citywide Traffic Calming Toolbox
Award Grant Writing Services Contract
Award US 50 RSA City Portion Upgrades
Harrison Ave/Stateline Transit Station Parking Enforcement 132

← All documents from this meeting