Agenda packet — South Lake Tahoe City Council, February 25, 2025 (part 2 of 2)

ALL THAT PORTION OF THE NORTHWEST QUARTER OF SECTION 9, TOWNSHIP 12 NORTH, RANGE 18 EAST M.D.B.&M., MORE PARTICULARY DESCRIBED AS FOLLOWS:

COMMENCING AT THE MOST WETERLY CORNER OF PROPERTY HEREIN DESCRIBED, A POINT IN THE

NORTHEASTERLY LINE OF TALLAC AVENUE AND SAID POINT BEING IDENTICAL WITH THE MOST SOUTHERLY CORNER OF LOT 38, BLOCK 1 OF W.D. BARTON TRACT AS SAID LOT AND BLOCK ARE DESIGNATED AND NUMBERED ON THE OFFICIAL MAP OF SAID W.D. BARTON TRACT FILED IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF EL DORADO, STATE OF CALIFORNIA, ON JULY 31, 1946 IN MAP BOOK “A” AT PAGE 48; THENCE FROM POINT OF BEGINNING AND ALONG THE NORTHWESTERLY LINE OF TALLAC AVENUE SOUTH 26° 20’ EAST 209 FEET; THENCE LEAVING SAID TALLACE AVENUE AND ALONG THE NORTHEASTERLY LINE OF LOT 36 OF SAID W.D. BARTON TRACT NORTH 63° 40’ EAST 209 FEET; THENCE 26° 20’ WEST 209 FEET TO THE MOST EASTERLY CORNER OF SAID LOT 38 OF BLOCK 1 OF SAID W.D. BARTON TRACT; THENCE ALONG THE SOUTHEASTERLY LINE OF LOT 38, SOUTH 63° 40’ WEST 209 FEET TO THE POINT OF BEGINNING
APN: 032-151-015

3. The BMO Property and City Property are located in the Tahoe Region as described in the Tahoe Regional Planning Compact (P.L. 96-551, Stat. 3233, 1980), which region is subject to the regional plan and the ordinances adopted by the Tahoe Regional Planning Agency (hereafter “TRPA”) pursuant to the Tahoe Regional Planning Compact.

DECLARATIONS

1. BMO received approval from the City on ___________ and from TRPA on _____________ for a boundary line adjustment that reconfigured the BMO Property.

2. The City hereby declares that, for the purpose of satisfying the requirements of Chapter 30, Land Coverage, the City shall mitigate excess land coverage on the BMO Property identified herein pursuant to the excess land coverage mitigation requirements of the TRPA Code of Ordinances, and BMO hereby agrees to such mitigation.

3. The City hereby retires 15,161 square feet of land coverage from the City Property for the benefit of the BMO Property in connection with any project on the BMO Property that results in the requirement to mitigate existing excess land coverage.

4. This Covenent shall be deemed to run with the land, or an equitable servitude, as the case may be, and shall be binding on the City and all persons acquiring or owning any interest in the City Property or the BMO Property.

5. This Covenant may not be modified or revoked without the prior express written and recorded consent of the City or its successor agency, if any, and BMO or all persons acquiring or owning any interest in the BMO Property.
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Excess Land Coverage Covenant
APNs 032-151-015 and [______________]
BMO Bank N.A., and the City of South Lake Tahoe

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APPROVED AS TO FORM:

CITY OF SOUTH LAKE TAHOE

By: _________________________________________ Date: __________________________________ Heather Stroud, City Attorney

273
Excess Land Coverage Covenant
APNs 032-151-015 and [______________]
BMO Bank N.A., and the City of South Lake Tahoe

Page 4 of 6 ends

IN WITNESS WHEREOF, Declarants have executed this Deed Restriction this the day and year written above.

Declarant’s Signature:
__________________________________ Dated: ______________________ Joseph D. Irvin
City Manager
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF )
) SS.

COUNTY OF )
On ______________________ before me, ______________________________________ a Notary Public, personally appeared ____________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of ________________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ___________________________________ (Seal)
Name: ______________________________________
(typed or printed)

274
Excess Land Coverage Covenant
APNs 032-151-015 and [______________]
BMO Bank N.A., and the City of South Lake Tahoe

Page 5 of 6 ends

Declarant’s Signature:
__________________________________ Dated: ______________________ Michael Curley
BMO Bank N.A.

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF )
) SS.

I certify under PENALTY OF PERJURY under the laws of the State of ________________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ___________________________________ (Seal)
Name: ______________________________________
(typed or printed)

275
Excess Land Coverage Covenant
APNs 032-151-015 and [______________]
BMO Bank N.A., and the City of South Lake Tahoe

Page 6 of 6 ends

Declarant’s Signature:
__________________________________ Dated: ______________________ Grant Harris
BMO Bank N.A.

STATE OF )
) SS.

I certify under PENALTY OF PERJURY under the laws of the State of ________________ that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ___________________________________ (Seal)
Name: ______________________________________
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Exhibit F

EXHIBIT F
Form of FIRPTA Affidavit
[Attached]
277
SELLER’S FIRPTA AFFIDAVIT
To inform the CITY OF SOUTH LAKE TAHOE, a political subdivision of the State of California (the “Transferee”) that withholding of tax under Section 1445 of the Internal Revenue Code of 1986, as amended (“Code”) will not be required by BMO Bank N.A., a national banking association, successor-in-interest to Bank of the West, a California banking corporation (the “Transferor”), the undersigned hereby certifies the following on behalf of the Transferor:

1. The Transferor is not a foreign corporation, foreign partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder).

2. The Transferor’s U.S. employer or tax (social security) identification number is 36- 2085229
The Transferor understands that this Certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalty of perjury I declare that I have examined this Certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this Certification on behalf of the Transferor.

TRANSFEROR:

BMO BANK N.A., a national banking
association, successor-in-interest to BANK
OF THE WEST, a California banking
corporation
By:_______________________
Name: Grant Harris
Its: Director, U.S. Transactions & Strategic
Initiatives
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Exhibit G

EXHIBIT G
Form of Open Space Easement
[Attached]
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

ArentFox Schiff LLP
44 Montgomery Street, 38th Floor
San Francisco, California 94104
Attention: Zak D. Welsh
THIS SPACE ABOVE FOR RECORDER’S USE

OPEN SPACE EASEMENT AGREEMENT
This OPEN SPACE EASEMENT AGREEMENT (this “Agreement”) is entered into on _____________________, 2025 (the “Effective Date”) by and between (a) BMO BANK N.A., a national banking association, successor-in-interest to BANK OF THE WEST, a California banking corporation (“BMO”) and (b) the CITY OF SOUTH LAKE TAHOE, a California municipal corporation (“City”). BMO and City are each referred to as a “Party” and collectively as the “Parties.”

RECITALS
A. BMO and City have entered into that certain Purchase and Sale Agreement and Escrow Instructions between BMO, as seller, and City, as buyer dated as of _______________, 2025 (the “Purchase Agreement”) pursuant to which, among other things, a boundary line adjustment will be processed which will result in BMO owning an approximately 80,507 square foot parcel of real property described on Exhibit A (the “BMO Parcel”) and City owning an approximately 50,536 square foot parcel of real property described on Exhibit B (the “City Parcel”).

B. As material inducement for BMO to enter into the Purchase Agreement, City has agreed to grant to BMO, and BMO has agreed to receive, at Closing under the Purchase Agreement a perpetual, exclusive open space easement over an approximately 14,000 square foot portion of the City Parcel described on Exhibit C (the “Easement Area”), subject to the terms and conditions of this Agreement.

AGREEMENT
NOW THEREFORE, in consideration of the foregoing, and of the conditions, terms, covenants, and agreements set forth herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

1. Grant of Easement. City, as grantor, hereby grants to BMO, as grantee, a perpetual, exclusive open space easement in, upon, over, under, and through the Easement Area in accordance with the terms and conditions of this Agreement (the “Open Space Easement”). The Open Space Easement burdens the City Parcel for the benefit of the BMO Parcel and runs with the land. The Easement Area may not be modified or relocated without the prior written consent of both Parties, which may be withheld by either Party in its sole and absolute discretion. 280
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2. Restrictions Applicable to Easement Area. Except as expressly provided in this Agreement, the Easement Area may not be used for any purpose other than as natural open space.

Without limiting the generality of the foregoing, none of the following uses or activities are permitted in, upon, over, under, or through the Easement Area at any time: construction of any aboveground structures or improvements or cutting of vegetation other than as may be necessary for fire prevention, thinning, elimination of diseased growth, or removal of invasive or non-native species. The general public will not have a right of entry into, or any right to use, enjoy, or occupy, the Easement Area.

3. Applicable Laws; Emergencies. Nothing in this Agreement prevents either Party from taking any action that is necessary or required to comply with any applicable laws, ordinances, rules, and governmental regulations (“Applicable Laws”), or that may be reasonably necessary in the event or an emergency or an unsafe or dangerous condition.

4. Maintenance and Repair of Easement Area. City is solely responsible at City’s sole cost and expense for all maintenance and repair of the Easement Area, including the costs of establishing, maintaining, and replacing vegetation and plant life within the Easement Area as may be permitted under this Agreement and of repairing any damage to, and restoring the Easement Area to its prior condition after, any casualty or other damage to the Easement Area.

5. BMO’s Remedies. If BMO determines that a violation of the terms and conditions of this Agreement has occurred or is threatened, BMO may provide written notice thereof to City and demand corrective action sufficient to cure (or prevent the occurrence) of the violation. If City fails to cure (or prevent the occurrence of) the violation within thirty (30) days after receipt of written notice from BMO, then BMO may do one or more of the following: (a) bring an action at law or in equity to enforce the terms and conditions of this Agreement, (b) seek to recover all damages and other sums available at law or in equity, (c) exercise any other right or remedy available at law or in equity, or (d) require that City restore the Easement Area to substantially the same condition that existed prior to any such violation at City’s sole cost and expense. City acknowledges and agrees that BMO’s remedies at law for any violation of the terms and conditions of this Agreement may be inadequate and that BMO will be entitled to the injunctive relief described in this Section 5, in addition to any other relief to which BMO may be entitled.

6. Covenants Running with the Land. City and BMO acknowledge and agree that the Open Space Easement and other rights conferred by this Agreement are intended to, and do, constitute covenants that run with the land and will inure to the benefit of, and be binding upon, the Parties and their respective grantees, successors, and assigns. Any person or entity who owns or acquires any right, title, or interest in or to any portion of the City Parcel or the BMO Parcel will conclusively be deemed to have consented to and agreed to abide by the terms and conditions set forth in this Agreement.

7. Miscellaneous.
(a) Recordation. Within thirty (30) days of the Effective Date, City will cause this Agreement to be recorded in the Official Records of El Dorado County, California at City’s sole cost and expense.
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(b) Rule Against Perpetuities. The Open Space Easement and all other interests granted or reserved in this Agreement are present interests fully vesting on the Effective Date. If a court of competent jurisdiction holds that the rule against perpetuities applies to any interest created by this Agreement, then each affected interest must vest, if at all, upon the later of no later than twentyone (21) years after the death of the last survivor of all individuals alive on the Effective Date. (c) No Public Dedication. Nothing set forth in this Agreement will be construed or deemed to confer on the general public any rights whatsoever with respect to the Open Space Easement or the Easement Area.
(d) No Merger. It is the intention of the Parties that, that, notwithstanding the fact that the fee simple interests in the City Parcel and the BMO Parcel might in the future be owned by the same person or entity, the Open Space Easement created by this Agreement will not merge into the fee simple interest, but will continue to burden the City Parcel and the BMO Parcel, and this Agreement shall continue in full force and effect.
(e) Notices. All written notices or demands of any kind which either Party may be required or may desire to serve on the other Party in connection with this Agreement shall be (i) served by personal service, (ii) sent by registered or certified mail, (iii) sent by recognized overnight courier service, or (iv) sent by electronic mail. Any such notice or demand so to be served by registered or certified mail, recognized overnight courier service or electronic mail shall be delivered with all applicable delivery charges thereon fully prepaid and, if the Party so to be served be City, addressed to City as follows:

City Manager
City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Email: [email protected]
With a copy to:

City Attorney
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 301
South Lake Tahoe, CA 96150
Email: [email protected]
and, if the Party so to be served be BMO, addressed to BMO as follows:

BMO Bank N.A.

Attn: Procurement – Property Administration
P.O. Box 755
Chicago, IL 60690
Email: [email protected]
With a copy to:
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BMO Transaction Management’s General Email:

Email: [email protected]
Service of any such notice or demand so made by personal delivery, registered or certified mail, recognized overnight courier, or electronic mail shall be deemed complete on the date of actual delivery (provided that a copy of such notice or demand delivered by electronic mail is also delivered by any of the other methods provided above within one (1) business day following receipt of such electronic mail), as applicable, or at the expiration of the third (3rd) business day after the date of dispatch, whichever is earlier in time. Either Party may from time to time, by notice in writing served upon the other Party in accordance with this Section 7(e), designate a different mailing address to which or a different person to whose attention all such notices or demands are thereafter to be addressed. Any notice or demand may be given either by a Party or by such Party’s attorney.
(f) Dispute Resolution. If there is any dispute related to or arising out of this Agreement or the interpretation of the terms of this Agreement (a “Dispute”), the Parties will attempt in good faith to resolve such Dispute by informal negotiation for a period of not less than thirty (30) days. If, after thirty (30) days of good-faith informal negotiations, the Parties have been unable to resolve the Dispute, then either Party may submit such Dispute to nonbinding confidential mediation for a period of not less than thirty (30) days by providing written notice thereof to the other Party (the “Mediation Notice”). If the Parties cannot agree on a mediator within ten (10) Business Days after the delivery of a Mediation Notice, then, at the written request of either Party, the International Institute for Conflict Prevention and Resolution (or any such other entity mutually agreed upon by the Parties) will designate the mediator. If, after thirty (30) days of nonbinding confidential mediation, the Parties have been unable to resolve the Dispute, the Parties agree to the exclusive jurisdiction of the state courts located in El Dorado County, California for the resolution of such Dispute. In furtherance of the foregoing, each Party hereby knowingly and voluntarily waives any rights to a trial by jury in any Dispute or any other matter whatsoever arising out of or in any way connected with this Agreement or any document or instrument delivered in connection with this Agreement or the relationship of the Parties under this Agreement.
(g) Entire Agreement; Amendment. This Agreement constitutes the full and complete agreement and understanding between the Parties and shall supersede all prior communications, representations, understandings, or agreements, if any, whether oral or written, concerning the subject matter contained in this Agreement, as so amended, and no provision of this Agreement, as so amended, may be modified, amended, waived or discharged, in whole or in part, except by a written instrument executed by the Parties.
(h) Governing Law. This Agreement shall be governed by the laws of the State of California, without regard to its conflict-of-laws provisions or the conflicts-of-laws provisions of any other jurisdiction.
(i) Counterparts. This Agreement may be executed in one or more copies or counterparts, each of which when signed shall be an original, but all of which together shall constitute one Agreement. This Agreement may be in the form of an Electronic Record and may 283
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be executed using Electronic Signatures (including manually executed paper documents that are sent by facsimile, .pdf, or other electronic means), which shall be considered an original and shall have the same legal effect, validity and enforceability as an original paper record. For purposes hereof, each of the terms “Electronic Record” and “Electronic Signature” has the respective meaning assigned to it in 15 USC §7006 (as the same may be amended from time to time). (j) Successors and Assigns. This Agreement shall be binding on, and inure to the benefit of, any successor, assign, or transferee of the Parties, including any subsequent owner of the City Parcel or the BMO Parcel, with the same force and effect as if they were in every case named in this Agreement.
(k) Partial Validity; Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by Applicable Law. (l) Waiver of Defenses. By execution of this Agreement, City expressly waives or abrogates, to the fullest extent permitted by Applicable Law, any defense to any legal action that may be brought by City in connection with this Agreement or the transactions contemplated by this Agreement based on sovereign immunity.
(m) Further Assurances. The Parties each hereby agree to perform, execute, and deliver, or cause to be performed, executed, and delivered, any and all such further acts, deeds, and assurances as City or BMO, as the case may be, may reasonably require in order to consummate fully the transactions contemplated hereunder.
(n) Authority. Each Party represents and warrants that it has the authority to execute this Agreement, and each individual signing on behalf of a Party states that: (i) they are the duly authorized representative of that Party; and (ii) their signature on this Agreement has been duly authorized by, and creates the binding and enforceable obligation of, the Party on whose behalf the individual is signing.
(o) Liability. Neither City or BMO, City’s or BMO’s constituent partners, City’s or BMO’s asset manager, nor City’s or BMO’s directors, employees, or agents shall have any personal liability under this Agreement. No Party will be liable for any incidental, direct, indirect, special, punitive, exemplary, or consequential damages or for lost profits, revenues, or business opportunities, except to the extent owed to a third party. Notwithstanding anything to the contrary in this Agreement, in no event will a Party be liable to the other Party for any consequential, special, indirect, incidental, punitive, exemplary, or similar damages (e.g., damages for loss of use, business, or profit), unless, and then solely to the extent, such damages are required to be paid to a third party with respect to a third-party claim.
[SIGNATURE PAGE FOLLOWS]
284
[Signature Page to Open Space Easement Agreement]
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

CITY:

CITY OF SOUTH LAKE TAHOE, a
political subdivision of the State of
California
By: _______________________
Name: Joseph Irvin
Its: City Manager

APPROVED AS TO FORM
By: _______________________
Name: Heather L. Stroud
Its: City Attorney
BMO:

BMO BANK N.A., a national banking
association, successor-in-interest to BANK
OF THE WEST, a California banking
corporation
By:_______________________
Name: Michael Curley
Its: Senior Manager, Transactions &
Strategic Initiatives
By:_______________________
Name: Grant Harris
Its: Director, U.S. Transactions & Strategic
Initiatives
285
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
286
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
287
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature

288
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
289

EXHIBIT A

LEGAL DESCRIPTION OF BMO PARCEL
290

EXHIBIT B

LEGAL DESCRIPTION OF CITY PARCEL
291

EXHIBIT C

DESCRIPTION OF EASEMENT AREA
The approximately 14,000 square foot area consisting of a 67-foot rectangular setback from the northeast property boundary of the parcel described as follows:
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294
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296

LAKE TAHOE BOULEVARD LAND
2111 LAKE TAHOE BOULEVARD
SOUTH LAKE TAHOE, CALIFORNIA 96150
CBRE, INC. FILE NO. CB24US014561-1
BMO BANK N.A.

CBRE VALUATION & ADVISORY SERVICES

APPRAISAL
REPORT
297

VALUATION & ADVISORY SERVICES
500 Capitol Mall, Suite 2400
Sacramento, CA 95814
T (916) 446-6800
www.cbre.com
Date of Report: March 14, 2024
Mr. Grant Harris
Director, Corporate Real Estate
BMO BANK N.A.
121 Kalley Drive
Goleta, California 93117
RE: Appraisal of Lake Tahoe Boulevard Land
2111 Lake Tahoe Boulevard
South Lake Tahoe, El Dorado County, California, 96150
CBRE, Inc. File No. CB24US014561-1
Dear Mr. Harris:

At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report.

The subject property represents a 1.521-acre (66,253-square foot) site of land located along the north side of Lake Tahoe Boulevard and along the south side of James Avenue in the incorporated city of South Lake Tahoe, El Dorado County, California. The subject is identified as the two existing adjacent El Dorado County parcels with the entirety of APN 023-201-072-000 measuring 22,572 square feet (0.518 acre) and a contributing portion of 023-201-053-000 measuring 43,681 square feet (1.003 acres), for a total site area of 66,253 square feet (1.521 acres). This is shown in the following table.

Assessor Parcel
Number Address Existing Use Gross Parcel
Size (Acres)
Gross Parcel
Size (SF)
Contributing
Site Size (Acres)
Contributing
Site Size (SF)
023-201-072-000 2111 Lake Tahoe Blvd. Vacant Land 0.518 Acs. 22,572 SF 0.518 Acs. 22,572 SF 023-201-053-000 2121 Lake Tahoe Blvd. Vacant Land (West) & Bank (East) 2.006 Acs. 87,362 SF 1.003 Acs. 43,681 SF Total Gross Area 2.524 Acs. 109,934 SF 1.521 Acs. 66,253 SF

SUBJECT PARCELS
Compiled by CBRE
Since the subject site is composed of one complete parcel and the portion of the adjacent parcel, only the hypothetical value is estimated. Based on the analysis contained in the following report, the market value of the subject property is concluded as follows:

MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion Hypothetical Value Fee Simple Estate March 5, 2024 $940,000 Compiled by CBRE
298
Mr. Grant Harris

Page 2 ends

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter.

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 1
 The coverage and transferrable development rights (TDRs) for the subject parcels were reported by the TRPA on their website. It is assumed the stated coverage figures and TDRs for the subject parcels in this appraisal report are accurate. The use of this extraordinary assumption may affect the assignment results.

The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. It also conforms to Title XI Regulations and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further updated by the Interagency Appraisal and Evaluation Guidelines promulgated in 2010.

The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof).

It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. 1 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 2 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 299
Mr. Grant Harris

Page 3 ends

Respectfully submitted,

CBRE - VALUATION & ADVISORY SERVICES
Justin Schlageter, MAI
First Vice President
CA Gen. Cert. AG037887, Exp. 07/26/2025
Phone: (916) 492-6994
Email: [email protected]
300
Certification
i
Certification
We certify to the best of our knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions.

3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment.

4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.

5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal, such as the approval of a loan.

6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.

7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of California.

8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

10. As of the date of this report, Justin E. Schlageter, MAI, has completed the requirements of the continuing education program for Designated Members of the Appraisal Institute.

11. Justin E. Schlageter, MAI, has made a personal inspection of the property that is the subject of this report.

12. No one provided significant real property appraisal assistance to the persons signing this report.

13. Justin E. Schlageter, MAI, is currently certified in the state where the subject is located.

14. Valuation & Advisory Services operates as an independent economic entity within CBRE Although employees of other CBRE divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy are maintained at all times with regard to this assignment without conflict of interest.

15. Justin E. Schlageter, MAI, has not provided services, as an appraiser or not in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding agreement to perform this assignment.

Justin Schlageter, MAI
CA Cert. Gen. AG037887, Exp. 07/26/2025
301
Subject Photographs
ii
Subject Photographs
Aerial Views (Google Maps)
302
Subject Photographs
iii
Subject View along Lake Tahoe Blvd. Subject View along Lake Tahoe Blvd.

Subject View along James Avenue James Avenue Looking Northeast Lake Tahoe Blvd. Looking Northeast Lake Tahoe Blvd. Looking Southwest 303
Executive Summary
iv
Executive Summary
Property Name
Location
Parcel Number(s) 023-201-072-000
023-201-053-000 (Portion)
Client
Flood Map Panel Number, Date, and Zone(s) 06017C0367F April 3, 2012 Zone X (Unshaded) Census Tract Number 304.04
Highest and Best Use
As If Vacant
Property Rights Appraised
Date of Inspection
Estimated Exposure Time
Estimated Marketing Time
Primary Land Area 1.521 AC 66,253 SF
Zoning
Buyer Profile
VALUATION Total Per SF
Land Value $940,000 $14.19

CONCLUDED MARKET VALUE
Appraisal Premise Interest Appraised Value
Hypothetical Value Fee Simple Estate $940,000
Compiled by CBRE
Developer or Land Speculator
Lake Tahoe Boulevard Land
March 5, 2024
Hold for Future Mixed-Use Development
2111 Lake Tahoe Boulevard
South Lake Tahoe, El Dorado County, CA 96150
BMO Bank N.A.

Fee Simple Estate
9 - 12 Months
9 - 12 Months
TC-MUC, Town Center Mixed-Use Corridor
March 5, 2024
Date of Value

MARKET VOLATILITY
We draw your attention to a combination of inflationary pressures (leading to higher interest rates) and recent failures/stress in banking systems which have significantly increased the potential for constrained credit markets, negative capital value movements and enhanced volatility in property markets over the short-to-medium term.

Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for deteriorating market conditions.

It is important to note that the conclusions set out in this report are valid as at the valuation date only. Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events.

CURRENT ECONOMIC CONDITIONS
At its January 2024 meeting, the Federal Reserve held the federal funds rate at a range of 5.25% to 5.50% and indicated it will continue reducing its balance sheet by $95 billion per month. The Fed removed language from its policy statement about further tightening but stated it needs more confidence inflation “is moving sustainably toward 2.00%” before considering cuts. Rising real 304
Executive Summary
v
interest rates will be a headwind for the economy in coming quarters; however, CBRE expects the U.S. economy will remain resilient with growth averaging 1.6% for the year.

While opinions vary on future economic issues, the general market consensus at the time of this appraisal is the anticipation of moderating inflation as higher interest rates cool demand. Tighter lending conditions and a weakening economy will keep capital markets activity subdued and reduce leasing demand in the short to medium term. Amid this uncertain and dynamic environment, investment market performance will be uneven across property types.

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 3
 The coverage and transferrable development rights (TDRs) for the subject parcels were reported by the TRPA on their website. It is assumed the stated coverage figures and TDRs for the subject parcels in this appraisal report are accurate. The use of this extraordinary assumption may affect the assignment results.

OWNERSHIP HISTORY
According to public record, title to the subject property is currently vested in Bank of the West & Central Bank.

To the best of our knowledge, there have been no ownership transfers of the subject property in the past three years. The subject property is currently not listed for sale or pending sale as of the date of value.

LEGAL DESCRIPTION
The following current legal description is taken from an ALTA Survey, which is included within the Addenda. Please note that the flowing legal description describes all three parcels that are under 3 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 4 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 305
Executive Summary
vi
ownership of the preceding reported current owner of the subject site. Only APN 023-201-072- 000 and a portion of APN 023-201-072-000 compose the subject property. 306
Executive Summary
vii

EXPOSURE/MARKETING TIME
Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used.

The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following:
 Comparable Sales Data
 Local Market Participant Opinion
The following table presents the information derived from these sources.

EXPOSURE/MARKETING TIME DATA
Exposure/Mktg. (Months)
Investment Type Range Average
Comparable Sales Data 0.0 - n/a n/a
Local Market Professionals 3.0 - 15.0 9.0
CBRE Exposure Time Estimate
CBRE Marketing Period Estimate
Various Sources Compiled by CBRE
9 - 12 Months
9 - 12 Months
307
Table of Contents
viii
Table of Contents
Certification ......................................................................................................................... i Subject Photographs ............................................................................................................ ii Executive Summary ............................................................................................................. iv Table of Contents .............................................................................................................. viii Scope of Work ..................................................................................................................... 1 Area Analysis ...................................................................................................................... 5 Neighborhood Analysis ..................................................................................................... 10 Site Analysis ...................................................................................................................... 19 Zoning .............................................................................................................................. 24 Tax & Assessment Data ..................................................................................................... 27 Market Analysis ................................................................................................................. 28 Highest and Best Use ........................................................................................................ 33 Land Value ........................................................................................................................ 34 Reconciliation of Value ...................................................................................................... 39 Assumptions and Limiting Conditions ................................................................................ 40

ADDENDA
A Land Sale Data Sheets
B ALTA Survey
C Preliminary Title Report (APN 023-201-072)
D Client Contract Information
E Appraiser Qualifications
308
Scope of Work
1 Scope of Work
This Appraisal Report is intended to comply with the real property appraisal development and reporting requirements set forth under Standards Rule 1 and 2 of USPAP. The scope of the assignment relates to the extent and way research is conducted, data is gathered, and analysis is applied.

CLIENT
The client is the BMO Bank N.A.

INTENDED USE OF REPORT
The intended use of this appraisal report is for portfolio management purposes.

INTENDED USER OF REPORT
The intended user of this report is the client, BMO Bank N.A., and no other user may rely on our report unless as specifically indicated in the report.

Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved.

Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser’s responsibility is to the intended users identified in the report, not to all readers of the appraisal report. 5

PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to estimate the market value of the subject property.

RELIANCE LANGUAGE
Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith.
5 Appraisal Institute, The Appraisal of Real Estate, 15th ed. (Chicago: Appraisal Institute, 2020), 40. 309
Scope of Work
2 DEFINITION OF VALUE
The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and acting in what they consider their own best interests;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 6

INTEREST APPRAISED
The value estimated represents the Fee Simple Estate and defined as follows:

Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. 7

EXTENT TO WHICH THE PROPERTY IS IDENTIFIED
CBRE, Inc. collected the relevant information about the subject from the owner (or representatives), public records and through an inspection of the subject property. The property was legally identified through the following sources:
 postal address
 assessor’s records
 legal description

EXTENT TO WHICH THE PROPERTY IS INSPECTED
The individual involved in the preparation of this appraisal includes Justin E. Schlageter, MAI; a California certified general appraiser. Mr. Schlageter inspected the subject property; collected and confirmed data related to the subject, comparable properties, and the neighborhood/market 6 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237,

Page 77472 ends

7 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th Ed. (Chicago: Appraisal Institute, 2022), 73. 310
Scope of Work
3 area; analyzed market data, discussed property values with market participants, and prepared an appraisal report with an estimate of value.

TYPE AND EXTENT OF THE DATA RESEARCHED
CBRE, Inc. reviewed the micro and/or macro market environments with respect to physical and economic factors relevant to the valuation process. This process included interviews with regional and/or local market participants, available published data, and other various resources. CBRE, Inc. also conducted regional and/or local research with respect to the following:
 applicable tax data
 zoning requirements
 flood zone status
 demographics
 comparable data

TYPE AND EXTENT OF ANALYSIS APPLIED
CBRE, Inc. analyzed the data gathered using appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section. CBRE, Inc. then correlated and reconciled the results into a reasonable and defensible value conclusion, as defined herein.

A reasonable exposure time associated with the value estimate presented has also been considered.

DATA RESOURCES UTILIZED IN THE ANALYSIS

DATA SOURCES
Item: Source(s):

Site Data
Size Site Plan (CDS Commercial, dated June 9, 2023)
Area Breakdown/Use Inspection
Utilities City of South Lake Tahoe
Compiled by CBRE

APPRAISAL METHODOLOGY
In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available.

Cost Approach
The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements 311
Scope of Work
4 that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties.

Sales Comparison Approach
The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons.

Income Capitalization Approach
The income capitalization approach reflects the subject’s income-producing capabilities. This approach assumes that value is created by the expectation of benefits to be derived in the future.

Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis.

Methodology Applicable to the Subject
For the purposes of this analysis, we have utilized the sales comparison approach to value the subject site. The other methodologies are used primarily when comparable land sales data is non-existent. Therefore, these approaches have not been used. 312
Area Analysis
5 Area Analysis
313
Area Analysis
6 LAKE TAHOE BASIN
The subject property is located within the Lake Tahoe area, which includes portions of Nevada, El Dorado, and Placer Counties in California, as well as Douglas, Carson City, and Washoe Counties in Nevada. The dominant features of the region are the Sierra Nevada Mountains and Lake Tahoe. Lake Tahoe has a total of 71 miles of shoreline, 42 miles located in California and 29 miles in Nevada.

The largest cities in the Tahoe Basin include South Lake Tahoe, Tahoe City, Tahoe Vista, Kings Beach, and Incline Village. There are 19 ski resorts in the Tahoe region offering downhill and cross-country skiing. Summer activities include hiking/camping, tennis, golf, mountain biking, and water sports. Boating and other marine activities are located all around Lake Tahoe in addition to nearby Donner Lake, as well as other smaller lakes surrounding the area. The California/Nevada state line borders the area on the eastern side. The Nevada side is home to several large gaming facilities including the Hard Rock Hotel & Casino, MontBleu Resort & Casino, Harvey’s, Harrah's, Lakeside Inn & Casino in Stateline at the south side of Lake Tahoe adjacent to South Lake Tahoe, and the Hyatt Regency Lake Tahoe Casino and Tahoe Biltmore in Incline Village and Crystal Bay, along the north side of Lake Tahoe. The combination of winter skiing, summer water activities and gaming provide balanced tourism.

The economy of the region is dominated by seasonal outdoor recreation, as well as casinos in the Nevada portion of the basin. Most employment is service-oriented, with a high-degree of seasonality. The population of the region tends to swell during the summer and winter seasons and falls-off during spring and autumn.

Access to the Tahoe Basin is provided via Interstate 80 and U.S. Highway 50. Major commercial airports are located in Reno (one hour distance by automobile), Sacramento (two hours distance), as well as San Francisco and Oakland (approximately four to five hours distance).

EL DORADO COUNTY
El Dorado County is located adjacent to the east boundary of Sacramento County. It is bordered on the north by Placer County, on the east by the State of Nevada, and on the south by Amador and Alpine Counties.

Over one-half of the 1,805 square miles in El Dorado County are in public ownership in the form of national forests, parks, and recreation areas. Historically, the county has relied on agriculture, mining, timber harvesting, and tourism as an economic base. However, beginning in the late 1970's, the county began a diversification trend that continues to date. El Dorado County has been one of the fastest growing areas in California since that time, and the most rapid growth has occurred in the westernmost portion of the county.

Population growth along with increasing personal income has combined to create a growing demand for goods and services, especially with respect to residential construction, services, and 314
Area Analysis
7 the retail trade. Most of the county’s growth is concentrated along the U.S. Highway 50 corridor from El Dorado Hills on the west side to South Lake Tahoe on the east side.

The county seat is Placerville, which is in the western portion of the County. The largest city in the county is South Lake Tahoe, which is in the eastern portion. Over half of the population is located within unincorporated areas. Most of the recent historical as well as the projected population growth will occur in the western portion of the county.

El Dorado County was the epicenter for the 19th century Californian gold rush, with gold first found in 1848 and adventurers from Europe, Mexico, and the eastern United States flocking to the area to seek riches. The county is located in the Sacramento-Roseville-Arden-Arcade Metropolitan Statistical Area. The population of El Dorado County has grown as greater Sacramento has expanded into the region.

With its proximity to Lake Tahoe, recreation and ski resorts are strong sources of revenue for El Dorado County during the winter months. Both Heavenly Ski Resort and Sierra-At-Tahoe Ski Resort are located within the county. El Dorado County is also home to the El Dorado National Forest, Desolation Wilderness, D.L. Bliss State Park, Emerald Bay State Park, Eagle Falls Trailhead, and Marshall Gold Discovery State Historic Park, to name a few destinations.

Additionally, a growing wine presence exists within El Dorado County, which is home to the California Shenandoah Valley AVA, Fair Play AVA, El Dorado AVA, Nello Olivo, and Sierra Foothills AVA.

POPULATION
Source: ESRI, downloaded on Mar, 3 2024
The subject is located in El Dorado County. Key information about the area is provided in the following tables.

The area has a population of 193,917 and a
median age of 46, with the largest population
group in the 60-69 age range and the smallest
population in 80+ age range.

Population has increased by 12,859 since
2010, reflecting an annual increase of 0.5%.

Population is projected to increase by 2,127
between 2023 and 2028, reflecting a 0.2%
annual population growth.
181,058 193,917 196,044
0 50,000
100,000
150,000
200,000
250,000
2010 2023 2028
POPULATION BY YEAR
0 10,000
20,000
30,000
40,000
0‐9 10‐19 20‐29 30‐39 40‐49 50‐59 60‐69 70‐79 80+
AREA POPULATION BY AGE
Source: Esri
Source: Esri
315
Area Analysis
8 INCOME

EDUCATION

EMPLOYMENT
Source: ESRI, downloaded on Mar 3, 2024; BLS.gov dated Jan 0, 1900 The area includes a total of 88,453 employees. The top three industries within the area are Health Care/Social Assistance, Prof/Scientific/Tech Services and Construction, which represent a combined total of 31% of the workforce.

The area features an average household
income of $142,859 and a median household
income of $97,498. Over the next five years,
median household income is expected to
increase by 12.6%, or $2,456 per annum.

A total of 39.5% of individuals over the age of
24 have a college degree, with 26.7% holding
a bachelor's degree and 12.7% holding a
graduate degree.
$97,498
$109,776
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2023 2028
MEDIAN INCOME BY YEAR

26.7%

60.5% 12.7%
POPULATION BY DEGREE
Bachelor's Degree
Graduate Degree
Other
0% 2% 4% 6% 8% 10% 12% 14%
Arts/Entertainment/Recreation
Other Services (excl Publ Adm)
Manufacturing
Public Administration
Accommodation/Food Services
Educational Services
Retail Trade
Construction
Prof/Scientific/Tech Services
Health Care/Social Assistance
Source: Esri
Source: Esri
Source: Esri

TRANSPORTATION
Transportation throughout the community is facilitated by one major highway, US Highway 50.

This east-west thoroughfare extends from West Sacramento, where it merges with Interstate 80, to the Nevada state line in South Lake Tahoe. Additionally, El Dorado Hills is located 41 miles east of the Sacramento International Airport. This airport offers 175 daily flights to most major United States cities; service is provided by 16 airlines including Alaska, Delta, and Southwest Airlines. 316
Area Analysis
9 The Airport recently underwent an extensive modernization plan focused primarily on a new Terminal B modernization project. This project has the capacity to accommodate 16 million passengers and includes the new 740,000-square-foot Terminal, 19-gate airside concourse, a landside terminal totaling 424,000 square feet, and more than 42,000 square feet of concessions.

TOURISM
El Dorado County enjoys many natural and physical assets, including an attractive climate, hilly terrain, good highway transportation, adequate water, soil, and open land for future growth. In addition, the area offers an abundance of recreational, hunting, and fishing areas for enjoyment.

The area climate is typically one of warm, dry summers and cold, snowy winters. Summer high temperatures range from the 80’s to low 90’s, and winter lows in the high 10’s to low 20’s. Most of the rainfall and snowfall occur from late fall through the spring. Outdoor enthusiasts enjoy hunting, fishing, boating, swimming, golf, tennis and many other sports in the nearby countryside and mountains.

Visitors will find some of California’s best Gold Rush history, abundant outdoor recreation and wide choices in dining, lodging, nightlife and the arts. The area features a number of noted restaurants, featuring California cuisine, fresh, local and organic foods. Explore our thriving regional wineries and breweries, each with its own unique feel. Local family farms invite visitors to come experience the pastoral life, if only for an hour, day, or weekend.

TAHOE REGIONAL PLANNING AGENCY
The Tahoe Regional Planning Agency (TRPA) was established in 1972 by the U.S. Congress to protect the environmental quality of Lake Tahoe. As discussed in the Market Analysis section, the TRPA imposes use and density regulations in addition to local regulations. These additional regulations limit the ability to develop vacant land.

CONCLUSION
In summary, El Dorado County has experienced growth in its population in past years with many residents and businesses relocating from more expensive areas of the State; however, in recent years there has been a slight decline in population. Recent unemployment rates recorded for the county have been below California levels, and below the national average unemployment rate.

The area benefits from a healthy mix of both commercial and leisure demand generators. The combination of these factors is expected to continue to facilitate demand for lodging facilities in the future.
317
Neighborhood Analysis
10 Neighborhood Analysis

LOCATION
The neighborhood is located within the city of South Lake Tahoe. The city of South Lake Tahoe is situated at the eastern end of El Dorado County, about 100 miles northeast of Sacramento. The City of South Lake Tahoe is located along the south shore of Lake Tahoe, adjacent to the Nevada State border, in the northeastern section of El Dorado County. Beginning in the early years of the twentieth century, the city has developed as a summer home resort for residents of the San Francisco Bay Area and Sacramento. The development trend was slow until the end of World War II, when the casino district grew up on the Nevada side of the state line and development crept along the shoreline in both directions. The city of South Lake Tahoe now has over half of the total population of the Lake Tahoe Basin.

BOUNDARIES
The neighborhood boundaries are detailed as follows:
318
Neighborhood Analysis
11 North: Lake Tahoe
South: Tamarack Avenue
East: Pioneer Trail
West: Johnson Boulevard

LAND USE
Land uses within the subject neighborhood consist of a mixture of commercial and residential development. The immediate area surrounding the subject along Lake Tahoe Boulevard (U.S.

Highway 50) consists primarily of commercial uses such as retail shopping centers, banks, gas stations, restaurants, small offices, tourist-oriented business, and lodging facilities. More retail shopping centers, banks, and gas stations are located along the “Y’ (the intersection of U.S.

Highway 50 and Highway 89 about four miles southwest of the subject). The residential uses along the back streets can be described typically as older, modest-sized single-family residences, duplexes, fourplexes, and smaller apartment buildings, most being constructed between the 1950s and 1970s.

Heavenly Ski Resort is located within the southern portion of the subject neighborhood. Access is available at the base of the mountain within South Lake Tahoe, a gondola off U.S. Highway 50 adjacent to the Shops at Heavenly Village retail center, and from Nevada through the unincorporated adjacent community of Stateline. Heavenly Ski Resort is the largest ski resort in the Lake Tahoe Basin, with 4,800 acres of terrain, 86 trails, and 30 lifts. The resort has a peak elevation of 10,067 feet and 3,500 feet of vertical drop. Heavenly represents a major tourist attraction in the winter for the subject neighborhood.

The subject neighborhood fronts the border between California and Nevada to the northeast, in addition to the community of Stateline, Nevada. Stateline, Nevada, is home to five casinos, four of which qualify as resorts: MontBleu (formerly Caesar's), Harrah's Lake Tahoe, Hard Rock Hotel & Casino Lake Tahoe, and Harvey's Lake Tahoe. The other casino is the Lakeside Inn, which caters to locals and modest gamblers. Many of the hotels in the adjacent City of South Lake Tahoe, California, organize buses to take residents to the casinos in Stateline. Stateline, Nevada, and South Lake Tahoe, California, are effectively one town, with the state line intersecting US Highway 50 immediately to the southwest of Harrah's and Harvey's casinos. Another well-known feature of Stateline is Kingsbury Grade (State Route 207), which runs up and over a mountain pass, rising from Lake Tahoe and dropping down to Gardnerville on the other side of the mountains. Most of Stateline's residential and seasonal accommodations, amenities, and services are located on or near Kingsbury Grade. The route can be difficult in the winter months and snow chains are essential during this time. Larger vehicles are required to allow traffic to pass when five or more vehicles are queuing behind them.

Recreational land uses include the Edgewood Golf Course and several beaches and lakeoriented uses. The Edgewood Golf Course is located within Stateline just north of the casino area and with frontage along Lake Tahoe. This is an 18-hole championship golf course and is the 319
Neighborhood Analysis
12 home of the annual American Century Celebrity Golf Championship. Marinas within the neighborhood include the Ski Run Marina, Lakeside Marina, Tahoe Keys Marina, and Timber Cove Marina. These marinas offer a combination of boat slips and buoys for rent, boat rentals, parasailing, boat cruises, and sports fishing. There are also numerous beaches located in the neighborhood.

Lake Tahoe Recreation and Aquatic Center
Situated approximately 0.60 mile southwest from the subject property is the site of the new Lake Tahoe Recreation and Aquatic Center in South Lake Tahoe. This 64,000-square foot project, with an estimated cost of approximately $52 million, has been in the planning and development phase since 2010 and received approval to move into the program verification phase in 2020.

To help supplement the cost of construction in November 2016, South Lake Tahoe voters passed Measure P, a citywide increase of the transient occupancy tax (TOT) by 2 percent with funds earmarked for a new recreation complex. The measure, which raised the hotel tax to 12% in most of the city and 14% in the redevelopment area, was estimated to generate $2 million annually.

This new state of the art facility will include a gymnasium, walk/jog track, fitness and weights facilities, an aerobics/dance studio, a lap pool, an activity pool, a commercial kitchen, rooftop events space, a party room, and an arts and crafts center.

Phase I of the project, which includes site and utility work, and was completed in October 2022.

Construction on was placed on hold following the city council’s decision to reject all bids on the project in late 2022. The start of Phase II construction will begin in May 2024, substantial completion is anticipated by November 2025, and final completion is expected by January 2026.

Tahoe Blue Event Center, Stateline, Nevada
Approximately 0.50 mile north of the subject property in Stateline, Nevada, is the Tahoe Blue Center. The 132,000-square foot, $100 million convention and entertainment facility is adjacent to the MontBleu Casino along U.S. Highway 50. The project features two levels: an event floor with suites, conference and meeting rooms as well as an event lawn area. Seating for a maximum of 6,000 will be available for stage concerts, between 2,500 to 5,300 for performing arts productions, and 3,000 to 5,000 for trade shows, and sporting exhibitions. Hockey and ice event configurations will accommodate 4,200, and basketball or similar events will seat 4,700.

For conferences, the event floor can provide up to 27,000 square feet, with the upper levels at 15,000 to 16,000 square feet for meeting room space. Construction began in 2021 with a grand opening date on September 23, 2023.

GROWTH PATTERNS
Commercial growth is limited in South Lake Tahoe due to strict development restrictions regulated by Tahoe Regional Planning Agency (TRPA). Most new development is a result of demolishing older buildings and using the allocated Commercial Floor Area (CFA) from the demolished buildings to construct new improvements of similar size or to transfer this CFA to another non320 Neighborhood Analysis
13 contiguous site to assemble needed CFA for development. The Commercial Floor Area (CFA) is the maximum commercial building area allowed for a parcel. Commercial floor area can be transferred from one property to another and can be purchased from another property owner.

To prevent over development and to preserve the natural environment of the Lake Tahoe region, the TRPA established the concept of impervious coverage which is assigned to each commercial property. The coverage is the maximum allowable area that can be developed with non-water penetrating improvement, which typically includes building footprint, driveway, parking lot and sidewalk area. Landscaping and open land areas are not included.

With the passage of the Tahoe Regional Planning Agency’s Lake Tahoe Regional Plan Update in December 2012, the South Shore has been enjoying a redevelopment renaissance. One of the plan’s priorities is streamlining the permitting process with the underlying goal of encouraging thoughtful environmental redevelopment. Other projects adding to the South Shore include the renovated Landing Resort & Spa, which opened in December 2013. The Landing Resort & Spa is Lake Tahoe’s first five-star luxury lakeside property. Located on the lake’s southern shores, the resort includes an 88-room boutique luxury hotel, restaurant, spa, and conference center. All rooms feature ultra-luxury amenities including marble bathrooms with heated toilet seats and heated bathroom floors, high thread count linens, 55-inch wall-mounted televisions, plush terry robes, Keurig coffee service, luxurious contemporary European furnishings, fireplaces and private decks, most with a view of the lake.

The Edgewood Tahoe Resort Project, approved in August 2012, is a LEED-designed, 194-unit lakefront lodge on the 235-acre Edgewood Tahoe Golf Course. Preliminary utility site work started in the spring of 2014. Additionally, a new pier near the existing clubhouse was completed at the end of May 2014. To make room for the new Lodge, the 8th and 9th greens have been realigned and were ready for play again in May 2015. This project was completed in June 2017.

The Chateau at The Village is Phase 1 of a larger mixed-use development. It is an upscale neighborhood retail center located along the last corner in California before Nevada, along US Highway 50 and State Line Avenue. Vertical construction on this property began in mid-2013 and was completed in July 2014. It consists of approximately 31,369 square feet, with 23,369 square feet being ground level retail space and 8,000 square feet being subterranean retail space. The property consists of two separate buildings, the East Building and West Building, and there is also approximately 45,000 square feet of subterranean parking garage.

Adjacent to The Chateau at The Village is the Zalanta Resort at the Village, which is Phase 2 of the larger Chateau project. This is a full-service, luxury, 30-unit full ownership condominium complex consisting of 2-bedroom, 3-bedroom, and 4-bedroom units with 20,284 square feet of ground floor retail. Construction began in August 2015 and was completed in June 2017.

Amenities will include on-site rental program, concierge, valet, large pool, and two hot tubs. The condominium units range in size from about 1,200 SF to 2,300 SF and include a mix of 2-, 3- 321
Neighborhood Analysis
14 and 4-bedroom units. These condominium units will be eligible for the project’s hospitality program, which marketing the units as nightly hotel room rentals.

After Zalanta Phase 2 is complete, plans for Phase 3 of the larger Chateau project include another 447 for-sale residential/hospitality condominium units and additional underground parking.

South Shore Vision Plan (October 2012)
According to the South Shore Vision report issued by the tourism recreation and hospitality consulting firm Strategic Marketing Group in October 2012, several local tourism-driven business owners and asset ownership entities are pushing for a conceptual plan to make significant changes to the South Lake Tahoe (CA) / Stateline (NV) infrastructure to dramatically transform the South Shore into a year-round destination resort that increases the overall economic impact of visitors to the area. Project funding for this report was provided by the following organizations:

City of South Lake Tahoe, Douglas County, Nevada, Lake Tahoe Visitors Authority, and the South Tahoe Alliance of Resorts.

This proposed revitalization will shift the focus of the destination to that of a recreation, entertainment and pedestrian streetscape orientation. Specific improvements would include the following:
 Development of the loop road that would facilitate traffic around the casino core and the reduction of U.S. Highway 50 to 3 lanes, dramatically changing the downtown area into a more pedestrian location;
 Improved opportunity for bringing recreation into the core area (bike trail access, climbing walls, snowboard rails, etc.);
 Permanent amphitheater to facilitate additional entertainment;  Streetscape along U.S. Highway 50 and Stateline Avenue to the beach;  Synergy for art and visual performance activities;
 Investment by property owners on both the California and Nevada side of Stateline Recreational Activities
South Lake Tahoe is a year-round tourist destination. Winter activities include skiing, snowboarding, cross country skiing, snow tubing, ice skating, snowshoeing, and sleigh rides.

Summer outdoor attractions include camping, golfing, fishing, hiking, tennis, sailing and water recreation, and mountain biking. The year-round recreational activities provide tourists with a reason to visit South Lake Tahoe any time of the year.

The neighborhood economy is primarily tourist driven. The population of the region tends to swell during the summer and winter seasons and falls off during spring and autumn. Peak seasons are the winter and summer months, and off peak “shoulder” seasons are the spring and fall months.

Thus, about half the year the neighborhood is in peak season and exhibiting high levels of tourist activity and demand. During this time, occupancy rates and rental rates on resort properties tend to spike, whereas these rates are much lower in the shoulder seasons. 322
Neighborhood Analysis
15 ACCESS
The accessibility to the neighborhood in general, and the subject property in particular, is considered good. Transportation on a local and regional level is facilitated as follows:

Local: Access through the neighborhood is provided by a combination of two- and four-lane streets with
primary routes being U.S. Highway 50 (Lake Tahoe
Boulevard) Ski Run Boulevard, and Pioneer Trail.

The subject property has frontage along Friday
Avenue, which provides direct access to U.S.

Highway 50 approximately 0.10 mile east.

Regional: Primary access to the subject neighborhood is provided by U.S. Highway 50 (Lake Tahoe
Boulevard) from the east and west. U.S. Highway
50 travels east toward Nevada and west toward
Sacramento. U.S. Highway 50 is primarily a twolane or four-lane highway that connects with Interstates 5 and 80 in the Sacramento area. U.S.

Highway 50 intersects with State Highway 89
southwest of the subject property (called the “Y”
intersection) and travels southwest toward
Sacramento. State Highway 89 travels north
connecting with the west shore communities of Lake
Tahoe, Tahoe City along the northwest side of Lake
Tahoe, and Interstate 80 in Truckee. Lake Tahoe
Airport is located four miles southwest of the
subject, accommodating most small aircraft.

DEMOGRAPHICS
Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table:
323
Neighborhood Analysis
16 2111 Lake Tahoe Boulevard
South Lake Tahoe, CA 96150
Population
2028 Total Population 5,666 18,588 28,007 196,044
2023 Total Population 5,694 18,724 28,224 193,917
2010 Total Population 5,557 19,645 29,183 181,058
2000 Total Population 6,344 21,982 32,535 156,229
Annual Growth 2023 - 2028 -0.10% -0.15% -0.15% 0.22%
Annual Growth 2010 - 2023 0.19% -0.37% -0.26% 0.53%
Annual Growth 2000 - 2010 -1.32% -1.12% -1.08% 1.49%
Households
2028 Total Households 2,656 8,351 12,392 79,119
2023 Total Households 2,641 8,318 12,348 77,123
2010 Total Households 2,551 8,458 12,237 70,223
2000 Total Households 2,748 8,957 12,930 58,916
Annual Growth 2023 - 2028 0.11% 0.08% 0.07% 0.51%
Annual Growth 2010 - 2023 0.27% -0.13% 0.07% 0.72%
Annual Growth 2000 - 2010 -0.74% -0.57% -0.55% 1.77%
Income
2023 Median Household Income $59,197 $70,085 $69,980 $97,498 2023 Average Household Income $85,160 $108,563 $108,711 $142,859 2023 Per Capita Income $39,224 $48,194 $47,506 $56,829
2023 Pop 25+ College Graduates 1,375 5,206 7,510 56,103 Age 25+ Percent College Graduates - 2023 32.6% 37.7% 36.6% 39.5% Source: ESRI

SELECTED NEIGHBORHOOD DEMOGRAPHICS
El Dorado
County 1 Mile Radius 3 Mile Radius 5 Mile Radius

CONCLUSION
The City of South Lake Tahoe is growing slowly due to geographic constraints and the seasonal nature of the local economy. The population within the subject neighborhood has shown some growth over the past 23 years. The neighborhood currently has a low-income to middle-income demographic profile with significant demand from the tourist sector. A large proportion of the local employment consists of lower-paid service jobs. Residential and commercial development, under a controlled environment, is occurring, but at a limited pace. This limited growth suggests minimal new competition for the subject. The subject is also positively affected by the many recreational activities and high tourist demand for the Lake Tahoe area.

The outlook for the neighborhood is for stable performance with some population decline over the next several years. Recent growth in the neighborhood has primarily been related to retail and lodging development, which appears to be supported by both neighborhood demographics, tourism, and the primary traffic carriers within the neighborhood. 324
Site Analysis
17 PLAT MAP
325
Site Analysis
18 ALTA SURVEY (SUBJECT SITE IN YELLOW)
326
Site Analysis
19 Site Analysis
The following chart summarizes the salient characteristics of the subject site.

SITE SUMMARY AND ANALYSIS
Physical Description
Gross Site Area 1.521 Acres 66,253 Sq. Ft.

Net Site Area 1.521 Acres 66,253 Sq. Ft.

Primary Road Frontage Lake Tahoe Boulevard
Secondary Road Frontage James Avenue
Additional Road Frontage n/a
Shape
Topography
Parcel Number(s)
023-201-053-000 (Portion)
Zoning District
Flood Map Panel No. & Date 06017C0367F April 3, 2012
Flood Zone Zone X (Unshaded)
Adjacent Land Uses
Earthquake Zone
Comparative Analysis
Visibility
Functional Utility
Traffic Volume
Adequacy of Utilities
Landscaping
Drainage
Utilities Availability
Water Yes
Sewer Yes
Natural Gas Yes
Electricity Yes
Other Yes No Unknown
Detrimental Easements X
Encroachments X
Deed Restrictions X
Reciprocal Parking Rights X
Various sources compiled by CBRE
Rectangular
Generally Level
TC-MUC, Town Center Mixed-Use Commercial
See Comments
Commercial and residential uses
023-201-072-000
Rating
Good
Assumed adequate
Good
Comments
Assumed adequate
None
Assumed adequate
South Tahoe PUD
South Tahoe PUD
Southwest Gas
Liberty Utilities

LOCATION
The subject property represents a 1.521-acre (66,253-square foot) site of vacant land located along the north side of Lake Tahoe Boulevard and along the south side of James Avenue in the incorporated city of South Lake Tahoe, El Dorado County, California.

ASSESSOR’S PARCEL NUMBERS
The subject is identified as the two existing adjacent El Dorado County parcels with the entirety of APN 023-201-072-000 measuring 22,572 square feet (0.518 acre) and a contributing portion of 327
Site Analysis
20 023-201-053-000 measuring 43,681 square feet (1.003 acres), for a total site area of 66,253 square feet (1.521 acres). This is shown in the following table.

SUBJECT PARCELS
Compiled by CBRE

LAND AREA
The land area size was obtained via Assessor’s records. The site is considered adequate in terms of size and utility. There is no unusable, excess, or surplus land area.

INGRESS/EGRESS, SHAPE AND FRONTAGE
The subject site is rectangular in shape and has frontage along two streets, Lake Tahoe Boulevard and James Avenue.

Please refer to the prior site/plat exhibit for the layout of the streets that provide access to the subject.

TOPOGRAPHY AND DRAINAGE
The subject parcel has generally level topography and is at street grade. The topography of the site is not seen as an impediment to the development of the property. During our inspection of the site, we observed no drainage problems and assume that none exist.

EASEMENTS AND ENCROACHMENTS
A preliminary report for APN 023-201-072-000 prepared by First American Title Insurance Company and dated April 13, 2023, was provided for review. According to the preliminary title report, plat map and physical inspection of the subject property, there appear to be no known easements or encroachments impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision.

COVENANTS, CONDITIONS AND RESTRICTIONS (CC&R’S)
Based on the inspection, there appear to be no known covenants, conditions and restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a copy of the current covenants, conditions, and restrictions, if any, prior to making a business decision. 328
Site Analysis
21 ACCESS AGREEMENTS
There are no known access agreements that may affect the subject’s marketability.

UTILITIES AND SERVICES
The site is within the jurisdiction of the city of South Lake Tahoe and is provided all municipal services, including police, fire and refuse garbage collection. All utilities are available to the subject site.

FLOOD ZONE
According to flood hazard maps published by the Federal Emergency Management Agency (FEMA), the majority of the site is within Zone X (Unshaded) as indicated on Community Map Panel No. 06017C0367F. FEMA defines the flood zone(s) as follows:

Zones C and X (unshaded) are flood insurance rate zones used for areas outside the 0.2-percent-annual-chance floodplain. No Base Flood Elevations (BFEs) or depths are shown in this zone, and insurance purchase is not required.

The subject property is not located within a special flood zone requiring flood insurance. 329
Site Analysis
22 SEISMIC HAZARDS (EARTHQUAKE)
All properties in California are subject to some degree of seismic risk. The Alquist-Priolo special Studies Zone Act of 1972 was enacted by the State of California to regulate development near active earthquake faults. The Act required the State Geologist to delineate “special studies zones” along known active faults in California. Cities and Counties affected by the identified zones must limit certain development projects within the zones unless geologic investigation demonstrates that the sites are not threatened by surface displacement from future faulting.

According to “Fault-Rupture Hazard Zones in California” published in 2018 by the California Department of Conservation, Department of Mines and Geology, the subject is shown in the following map.

According to the preceding map, the subject property is not located in or within 1,000 feet of an Alquist-Priolo earthquake zone.

SOILS
A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use.
330
Site Analysis
23 ENVIRONMENTAL ISSUES
CBRE, Inc. is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property.

WETLANDS
The subject site is not within a “wetlands” area as designated by the U.S. Army Corps of Engineers.

MINERALS
The mineral estate has not been severed from the surface. No known marketable minerals exist on the property currently.

AGRICULTURAL PRESERVE
The property is not subject to the California Land Conservation Act of 1965 (Williamson Act).

CONCLUSION
The subject site is adequately located and afforded good access and visibility from street frontage. The size of the site is typical for the area, and there are no known detrimental uses in the immediate vicinity. Overall, there are no known factors which are considered to prevent the site from development to its highest and best use.
331
Zoning
24 Zoning
The following map and table summarize the subject’s zoning requirements.

ZONING SUMMARY
Current Zoning TC-MUC, Town Center Mixed-Use Commercial Legally Conforming Yes
Uses Permitted The TC-MUC district is intended to facilitate the transformation of the eastern and western portions of Lake Tahoe Boulevard into a multimodal, mixed-use corridor. Allowable uses include a rich mixture of retail, service, public facility, recreation, entertainment, and housing organized in a compact development pattern, creating an aesthetically-pleasing and safe environment for pedestrians, cyclists, and automobile drivers.

Zoning Change Not likely
Source: City of South Lake Tahoe Planning & Zoning Dept.

The current use of the subject site represents a legal and conforming use. It is recommended that local planning and zoning personnel be contacted regarding more specific information that might be applicable to the subject.

The Tahoe Regional Planning Agency and City of South Lake Tahoe have jurisdiction over the subject property’s land use. The subject’s parcel is positioned along the north side of Lake Tahoe Boulevard and falls under the zoning designation TC-MUC, Town Center – Mixed-Use Corridor, which allows for a variety of commercial and residential uses. The current use of the subject site represents a legal and conforming use. It is recommended that local planning and zoning 332
Zoning
25 personnel be contacted regarding more specific information that might be applicable to the subject.

Transferable Development Rights (TDRs)
The following is a brief discussion of the transferable development rights inherent within the Lake Tahoe Basin.

COVERAGE
To prevent over development and to preserve the natural environment of the Lake Tahoe region, the Tahoe Regional Planning Agency (TRPA) established the concept of impervious coverage which is assigned to each commercial property. The coverage is the maximum allowable area that can be developed with non-water penetrating improvement, which typically includes building footprint, driveway, parking lot (asphalt or packed dirt) and sidewalk area. Landscaping and open land areas are not included.

Coverage rights can be traded on the open market and can trade anywhere from $6 to $20 per square foot, generally depending on the type purchased and the hydrological area. Generally, vacant commercial properties in the subject’s neighborhood cannot have more than 30% coverage; unless the coverage already exists on the property from an older development (coverage can be up to 50% for vacant parcels and 70% for previously improved properties within the community plan). TRPA defines two types of existing land coverage-- “hard land coverage” (i.e., impervious surfaces) and “soft land coverage” (i.e., compacted areas). TRPA also defines a third type of land coverage -- “potential land coverage” (i.e., allowable coverage in the future, but does not exist yet).

COMMERCIAL FLOOR AREA (CFA)
The commercial floor area (CFA) is the maximum commercial building area allowed for a particular parcel. Commercial floor area can be transferred from one property to another and can be purchased from another property owner. According to brokers and developers in the area, commercial floor area is priced around $25 to $35 per square foot and has decreased from around $45 per square foot at the height of the market.

TRANSIENT ACCOMMODATION UNITS (TAU) AND RESIDENTIAL UNITS OF USE (RUU) Properties are further defined based on their number of Transient Accommodation Units (TAUs) and Residential Units of Use (RUUs). TAUs and RUUs are both transferable and tradable on the open market. They are both determined by individual zoning regulations for each parcel in addition to the property’s historical use. TAUs are assigned for each hotel unit on a property (alternatively can be used for time share units and/or condo hotel units if the owner occupies the unit for no more than 60 days a year), whereas RUUs are assigned for each residential unit on a property. Although, a TAU is required for fractional use of a home, one can file a BRE (California Bureau of Real Estate) public report as one timeshare report and sell all shares in a home for whole ownership.
333
Zoning
26 According to brokers and developers in the area, as well as recent sales of older lodging facilities with little or no remaining improvement value, TAUs are currently priced at approximately $20,000 to $30,000 each, and RUU’s are priced around $17,000 to $40,000 each, depending on the location. At the height of the market in 2007, TAUs and RUUs were each priced upwards of $40,000 and $75,000, respectively. As few new development units are created, TAU and RUU development rights are generally obtained by purchasing the rights directly from other owners with excess. TAU development rights can also be obtained by purchasing existing “tear downs” and using the TAU allocations on a new development.

Conclusion
According to the TRPA, the subject’s hypothetical parcel is located within Class 7 soils with a maximum land coverage reported as 30%, or approximately 19,876 square feet (0.456 acre).

No other TRPA development rights such as CFA (commercial floor area), RUUs (residential units of use), or TUAs (transient accommodation units) are known to exist as banked on the property.

Although the subject’s underlying zoning allows for a variety of uses, it should be noted that it would likely be costly and time consuming to obtain approvals for a use. Any changes to the current use would require approval from the TRPA and Placer County. As mentioned earlier within the report, due to strict regulations of the TRPA and overlapping planning authorities, the development process is generally expensive and time consuming in the Lake Tahoe area. 334
Tax & Assessment Data
27 Tax & Assessment Data
In California, privately held real property is typically assessed at 100% of full cash value (which is interpreted to mean market value of the fee simple estate) as determined by the County Assessor.

Generally, a reassessment occurs only when a property is sold (or transferred) or when new construction occurs (as differentiated from replacing existing construction). In the case of longterm ground leases, the general rule is that a reassessment is made at the time of assigning or terminating a lease where the remaining term is more than 35 years. For reassessment purposes, the lease term includes all options to extend. Assessments for properties that were acquired before the tax year 1975-1976 were stabilized as of the tax year 1975-1976. Property taxes are limited by state law to 1% of the assessed value plus voter-approved obligations and special assessments. If no sale (or transfer) occurs or no new building takes place, assessments may not increase by more than 2% annually. Taxes are payable in two equal installments, which become delinquent after December 10 and April 10, respectively. 2023 - 2024 AD VALOREM TAX INFORMATION
Assessor's Market Value 023-201-072-000 023-201-053-000 Total Land $159,133 $424,386 $583,519
Improvements - 1,506,261
Personal Property - - -
Fixtures - 148,750 148,750
Exemptions - - -
Subtotal $159,133 $2,079,397 $732,269
% of Assessed Value 100% 100% 100%
Final Assessed Value 159,133 2,079,397 $732,269
General Tax Rate (per $100 A.V.) 1.060128 1.060128 1.060128 General Tax: $1,687 $22,044 $7,763
Special Assessments: $43 $544 $587
Effective Tax Rate (per $100 A.V.) 1.086999 1.086288 1.140252 Total Taxes $1,730 $22,588 $8,350
Source: El Dorado County Tax Collector and Assessor Offices It is noted that the subject property consists of the entirety of APN 023-201-072-000 and approximately one half (unimproved) of APN 023-201-053-000.

According to a representative for the El Dorado County Tax Collector, the subject’s existing parcels have no delinquent taxes. The subject’s existing parcels are currently not encumbered by any major infrastructure bonds. To the best of our knowledge, the real estate taxes are current.

CBRE assumes that all taxes are current. If the subject sold for the value estimate in this report, a reassessment at that value could occur. The consequences of this reassessment have been considered in the appropriate valuation sections.
335
Market Analysis
28 Market Analysis
The market analysis forms a basis for assessing market area boundaries, supply and demand factors, and indications of financial feasibility.

DEMOGRAPHIC ANALYSIS
Demand for commercial and residential properties is a direct function of demographic characteristics analyzed on the following pages.

Housing, Population and Household Formation
The following table illustrates the population and household changes in the one-, three-, and five-mile radius of the subject, along with statistics for the county.

POPULATION AND HOUSEHOLD PROJECTIONS
Population
2028 Total Population 5,666 18,588 28,007 196,044
2023 Total Population 5,694 18,724 28,224 193,917
2010 Total Population 5,557 19,645 29,183 181,058
2000 Total Population 6,344 21,982 32,535 156,229
Annual Growth 2023 - 2028 -0.10% -0.15% -0.15% 0.22%
Annual Growth 2010 - 2023 0.19% -0.37% -0.26% 0.53%
Annual Growth 2000 - 2010 -1.32% -1.12% -1.08% 1.49%
Households
2028 Total Households 2,656 8,351 12,392 79,119
2023 Total Households 2,641 8,318 12,348 77,123
2010 Total Households 2,551 8,458 12,237 70,223
2000 Total Households 2,748 8,957 12,930 58,916
Annual Growth 2023 - 2028 0.11% 0.08% 0.07% 0.51%
Annual Growth 2010 - 2023 0.27% -0.13% 0.07% 0.72%
Annual Growth 2000 - 2010 -0.74% -0.57% -0.55% 1.77%
Source: ESRI
El Dorado
County 1 Mile Radius 3 Mile Radius 5 Mile Radius
As indicated in the table above, the subject’s area is experiencing and projecting a decline in population within the three-mile and five-mile radii from the subject property, and the subject’s area is experiencing and projecting slow growth for households.

Income Distributions
Household income available for expenditure on consumer items is a primary factor in determining the retail supply and demand levels in each market area. In the case of this study, a projection of household income identifies (in gross terms) the market from which the subject submarket draws. The following table illustrates estimated household income distribution for the subject neighborhood.
336
Market Analysis
29 HOUSEHOLD INCOME DISTRIBUTION
Households by Income Distribution (2023)
<$15,000 14.16% 10.12% 9.61% 7.00%
$15,000 - $24,999 9.16% 8.02% 8.04% 5.15%
$25,000 - $34,999 7.57% 7.57% 7.40% 4.22%
$35,000 - $49,999 8.52% 8.11% 9.35% 6.80%
$50,000 - $74,999 22.38% 18.91% 18.32% 14.79%
$75,000 - $99,999 9.28% 11.99% 11.63% 13.08%
$100,000 - $149,999 16.24% 15.65% 16.35% 18.87%
$150,000 - $199,999 7.12% 7.65% 7.02% 9.96%
$200,000+ 5.57% 11.99% 12.28% 20.14%
Source: ESRI
1 Mile Radius 3 Mile Radius 5 Mile Radius El Dorado
County
The following table illustrates the median and average household income levels for the subject neighborhood.

HOUSEHOLD INCOME LEVELS
Income
2023 Median Household Income $59,197 $70,085 $69,980 $97,498 2023 Average Household Income $85,160 $108,563 $108,711 $142,859 2023 Per Capita Income $39,224 $48,194 $47,506 $56,829
Source: ESRI
1 Mile Radius 3 Mile Radius 5 Mile Radius El Dorado
County
Employment
An employment breakdown typically indicates the working-class characteristics for a given market area. The specific employment population within the indicated radii of the subject is as follows:
337
Market Analysis
30 EMPLOYMENT BY INDUSTRY
Occupation (2023)
Agric/Forestry/Fishing/Hunting 2.04% 1.98% 1.91% 1.34%
Construction 7.92% 8.92% 8.81% 9.03%
Manufacturing 2.36% 2.61% 3.94% 7.05%
Wholesale Trade 0.03% 0.37% 0.70% 1.38%
Retail Trade 11.42% 11.09% 10.07% 8.90%
Transportation/Warehousing 5.60% 3.96% 2.91% 3.38%
Information 1.16% 1.86% 1.54% 1.98%
Finance/Insurance 0.61% 1.39% 1.82% 4.77%
Prof/Scientific/Tech Services 7.57% 6.65% 6.55% 10.68%
Mgmt of Companies/Enterprises 0.29% 0.23% 0.16% 0.07%
Admin/Support/Waste Mgmt Srvcs 3.95% 4.51% 6.08% 4.70%
Educational Services 9.41% 7.93% 8.02% 8.24%
Health Care/Social Assistance 11.71% 10.73% 10.61% 12.77% Arts/Entertainment/Recreation 9.99% 12.59% 12.69% 4.98% Accommodation/Food Services 16.88% 16.23% 16.47% 7.89%
Other Services (excl Publ Adm) 3.78% 3.99% 3.44% 4.98%
Public Administration 5.27% 4.98% 4.28% 7.88%
Source: ESRI
1 Mile Radius 3 Mile Radius 5 Mile Radius El Dorado
County
Outlook
Based on this analysis, the immediate area surrounding the subject is projected to experience small declines relative to households and population levels into the near future. Given the area demographics, it appears that demand for both comparable surrounding area properties and the subject will continue to be somewhat favorable.

NATIONAL DEVELOPMENT LAND MARKET OVERVIEW
A brief overview of the national development land market was taken from the PwC Real Estate Investor Survey, 4th Quarter 2023, published by Price Waterhouse Cooper, which is the most recent in-depth analysis:

When looking at macro development prospects for the five major commercial real estate (CRE) sectors included in Emerging Trends, only the retail sector shows an improvement in its rating from last year – moving from 2.51 [on a scale of 1 abysmal to 5 excellent] to 2.75 (see Chart NDL-1). The current rating for office is its lowest in the past five years. With a score of 1.88, the office sector’s rating drops 46 points. The industrial/distribution and multifamily sectors boast the highest ratings for 2024.

From a micro standpoint, the top five property types for development prospects in 2024 are data centers, single-family rental housing, lower-income apartments, manufacturing, and moderateincome/workforce apartments. On the other hand, the property types at the bottom of the 27- category list are power centers, outlet centers, regional malls, suburban office, and central-city office.
338
Market Analysis
31 Preferred Metros
Of the 80 U.S. metros included in Emerging Trends, the top-ten individual markets regarding overall real estate prospects for 2024 are Nashville, Phoenix, Dallas/Fort Worth, Atlanta, Austin, San Diego, Boston, San Antonio, Raleigh/Durham, and Seattle. At the bottom of the Emerging Trends ranking list are Hartford, Madison, Gainesville, Spokane (WA), Tucson, Albuquerque, Portland (ME), Buffalo, Deltona/Daytona, and Honolulu.

For homebuilding prospects for 2024, the top cities according to Emerging Trends respondents are Austin, San Antonio, Washington DC-Northern VA, Atlanta, Dallas/Fort Worth, Charlotte, Houston, Raleigh/Durham, Tampa/St. Petersburg, and Denver. At the bottom of this list sit New Orleans, Gainesville, Cleveland, Hartford, Long Island, Detroit, Portland (ME), Milwaukee, Pittsburgh, and St. Louis.

Development Issues
For 2024, development issues among Emerging Trends respondents are shown below, ranked on a scale of 1 [no importance] to 5 [great importance].

Discount Rates
On an unleveraged basis, discount rates (including developers’ profit) for the national development land market range from 12.00% to 30.00% and average 19.20% this quarter – 95 basis points higher than six months ago.
339
Market Analysis
32 OVERALL CONCLUSION
The market and the local submarket are exhibiting stabilized vacancy levels, along with increasing rental and absorption rates. However, new construction is nonexistent in the subject area and the cost of financing negates the feasibility of many commercial and residential projects. Considering the overall economic conditions as well as the trend in vacancy, rental rates, and new construction, the local market area will continue to exhibit a stabilized position in the short term. Long-term projection for the subject area is for continued growth as economic conditions further improve.
340
Highest and Best Use
33 Highest and Best Use
In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are:
 legally permissible;
 physically possible;
 financially feasible; and
 maximally productive.

The highest and best use analysis of the subject is discussed as follows.

AS VACANT
The legally permissible uses were discussed in the Zoning section. The subject has an adequate shape and size, sufficient access, etc., to be developed with the legally permissible uses. The subject site is of sufficient size to accommodate various types of development. The immediate area includes commercial, residential, and light industrial land uses. The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. The subject’s commercial and residential markets have stabilized from the effects of the COVID-19 pandemic, and development of new properties is sparsely currently occurring in the competitive market. Based on the surrounding land uses, location attributes, legal restrictions, and other factors, it is our opinion that a mixed-use commercial and residential development would be reasonable and appropriate.

However, the rapidly increasing cost of construction and high interest rates (the cost to borrow money) has impacted the feasibility for new construction. As a result, we are of the opinion that the highest and best use would be to hold for future mixed-use commercial and residential development. The most likely buyer of the subject property, as if vacant, would be a developer or land speculator.
341
Land Value
34 Land Value
The following map and table summarize the comparable data used in the separate valuation of the subject’s site. A detailed description of each transaction is included in the addenda. 342
Land Value
35 SUMMARY OF COMPARABLE LAND SALES
Actual Sale Adjusted Sale Usable/Coverage Usable/Coverage Price No. Property Location Type Date Zoning Price Price 1 Size (Acres) Size (SF) Per SF 1 Fourth Street Land
1072 4th Street
South Lake Tahoe, CA 96150
Sale Jan-24 TC-NP, Town Center
Neighborhood Professional
$500,000 $500,000 0.211 9,174 $54.50
2 Lake Forest Road Land
2905 Lake Forest Road
Tahoe City, CA 96145
Sale Nov-22 Mixed-Use, Lake Forest
Commercial Area #2,
Commercial & Industrial
$1,300,000 $1,373,600 0.488 21,235 $64.69
3 Pioneer Trail Land
3574-3594 Pioneer Trail
South Lake Tahoe, CA 96150
Sale Aug-22 TSC-MUC, Tourist Center MixedUse Corridor$3,500,000 $3,500,000 0.957 41,687 $83.96 4 Emerald Bay Road Gateway Land
1190 Emerald Bay Road
South Lake Tahoe, CA 96150
Sale Aug-22 TC-G, Town Center Gateway $430,000 $430,000 0.300 13,068 $32.90 5 Emerald Bay Road Land
1080 Emerald Bay Road
South Lake Tahoe, CA 96150
Sale Apr-21 TC-G, Town Center Gateway $1,850,000 $1,850,000 1.199 52,232 $35.42 6 Lake Tahoe Land
8716 North Lake Boulevard
Kings Beach, CA 96143
Sale Sep-20 MU-WREC, Mixed Use
Commercial
$875,000 $875,000 0.441 19,226 $45.51
7 Emerald Bay Road Commercial Land
941 Emerald Bay Road
South Lake Tahoe, CA 96150
Sale Mar-24 TC-C, Town Center - Core $765,000 $765,000 0.428 18,633 $41.06 Subject 2111 Lake Tahoe Boulevard
South Lake Tahoe, CA 96150
--- --- TC-MUC, Town Center Mixed-Use
Corridor
--- --- 0.456 19,876 ---
1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE
Transaction
The sales utilized represent the best data available for comparison with the subject and were selected from the subject’s larger Tahoe Basin market area. These sales were chosen based upon location, size, zoning, and recent transfer date.

According to the TRPA, the maximum existing land coverage for the subject site is reported as 30%, or approximately 19,876 square feet (0.456 acre). No CFA (commercial floor area), RUUs (residential units of use), or TUAs (transient accommodation units) are known to exist as banked development rights on the subject property.

TRANSFERABLE DEVELOPMENT RIGHTS (TDR) OVERVIEW
The land comparables used are all located within the Lake Tahoe basin. To better compare relative value, each comparable is analyzed based on its current coverage/useable area. All land comparables are valued on a price per usable (coverage) area. Some of the comparables require adjustments for differences in CFA, RRUs, and TAUs. CFA is adjusted for at $30 per square foot and is adjusted on a dollar per square foot basis. RUUs are adjusted for at $30,000 each based on a dollar per square foot basis. No adjustment is given for affordable unit RUUs. TAUs are adjusted for at $25,000 each based on a dollar per square foot basis. The market prices of these development rights are based on discussions with local market participants. It is noted that this analysis assumes that the subject has the stated transferrable development rights.

SUMMARY OF ADJUSTMENTS
Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable.
343
Land Value
36 LAND SALES ADJUSTMENT GRID
Comparable Number 1 2 3 4 5 6 7 Subject
Transaction Type Sale Sale Sale Sale Sale Sale Sale --- Transaction Date Jan-24 Nov-22 Aug-22 Aug-22 Apr-21 Sep-20 Mar-24 --- Zoning TC-NP, Town Center
Neighborhood
Professional
Mixed-Use, Lake Forest
Commercial Area #2,
Commercial & Industrial
TSC-MUC, Tourist
Center Mixed-Use
Corridor
TC-G, Town Center
Gateway
TC-G, Town Center
Gateway
MU-WREC, Mixed
Use Commercial
TC-C, Town Center
- Core
TC-MUC, Town
Center Mixed-Use
Corridor
Actual Sale Price $500,000 $1,300,000 $3,500,000 $430,000 $1,850,000 $875,000 $765,000 --- Adjusted Sale Price 1 $500,000 $1,373,600 $3,500,000 $430,000 $1,850,000 $875,000 $765,000 --- Usable/Coverage Size (Acres) 0.211 0.488 0.957 0.300 1.199 0.441 0.428 0.456 Usable/Coverage Size (SF) 9,174 21,235 41,687 13,068 52,232 19,226 18,633 19,876 Price Per SF $54.50 $64.69 $83.96 $32.90 $35.42 $45.51 $41.06 --- Price ($ PSF) $54.50 $64.69 $83.96 $32.90 $35.42 $45.51 $41.06 CFA (SF) 0 7,360 0 0 5,631 0 7,604 0
RUUs 0 1 1 0 4 1 0 0
TAUs 0 0 0 0 0 0 0 0
Price ($ PSF) $54.50 $64.69 $83.96 $32.90 $35.42 $45.51 $41.06 Property Rights Conveyed 0% 0% 0% 0% 0% 0% 0%
Financing Terms 1 0% 0% 0% 0% 0% 0% 0%
Conditions of Sale 0% 0% 0% 0% 0% 0% -5%
Market Conditions (Time) 0% -4% -5% -5% -3% 0% 0%
Subtotal $54.50 $62.10 $79.76 $31.26 $34.36 $45.51 $39.01 CFA (SF) $0.00 ($10.40) $0.00 $0.00 ($3.23) $0.00 ($12.24) RUUs $0.00 ($1.41) ($0.72) $0.00 ($2.30) ($1.56) $0.00
TAUs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Subtotal $54.50 $50.29 $79.04 $31.26 $28.83 $43.95 $26.76 Location 0% -10% -25% 0% 0% 0% 0%
Size -10% 0% 5% -5% 7% 0% 0%
Visibility/Exposure 10% 5% 0% 10% 0% 0% 10%
Frontage/Access 5% 0% 0% 0% 3% 0% 0%
Topography 0% 0% 0% 0% 0% 0% 0%
Zoning/Density -10% 0% -5% 5% 5% 0% 0%
Utilities 0% 0% 0% 0% 0% 0% 0%
Highest & Best Use 0% 0% 0% 0% 0% 0% 0%
Entitlements 0% 0% 0% 0% 0% 0% 0%
Total Other Adjustments -5% -5% -25% 10% 15% 0% 10%
Value Indication for Subject $51.78 $47.78 $59.28 $34.38 $33.15 $43.95 $29.44 Absolute Adjustment 35% 19% 40% 25% 18% 0% 15%
1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE

MARKET CONDITIONS ADJUSTMENTS
Commercial real estate market conditions have deteriorated at the macro level. Prior to the recent interest rate increases, no change in market conditions is recognized for land within the subject market since the onset of the COVID-19 pandemic, with market conditions appreciating leading up to the pandemic. However, this has been largely offset by increases in interest rates that began in March 2022 through July 2023 from the increase in the Federal Funds Rate by the Federal Reserve, with many market participants surveyed indicating a softening in the overall commercial real estate market, especially for development land. This, coupled with a marked increase in construction costs, has placed downward pressure on pricing and increased marketing times for all assets. Therefore, appropriate downward adjustments are considered for the comparable properties depending on their sale date.

DISCUSSION/ANALYSIS OF LAND SALES
Land Comparable 1 requires a downward adjustment for its smaller size based on economies of scale, wherein smaller quantities of a commodity typically sell for higher per unit prices compared to larger quantities of the same commodity, all else being equal. An upward adjustment is required for its inferior visibility/exposure along a less trafficked street. An upward adjustment is warranted for its inferior street frontage/access. A downward adjustment is warranted for its superior zoning, which allows more diverse uses. Overall, this property is slightly superior to the subject property.
344
Land Value
37 Land Comparable 2 requires a downward adjustment for its superior market conditions at the time of sale. This comparable requires a downward adjustment for its superior location in Tahoe City, Placer County. An upward adjustment is required for its inferior visibility/exposure along a less trafficked street. Overall, this property is slightly superior to the subject property.

Land Comparable 3 requires a downward adjustment for its superior market conditions at the time of sale. A downward adjustment for its superior location closer to the Nevada casinos and near Heavenly Ski Resort. An upward adjustment for its larger size is warranted based on economies of scale. A downward adjustment is warranted for its superior zoning, which allows for construction of vacation home rentals. Overall, this property is superior to the subject property.

Land Comparable 4 requires a downward adjustment for its superior market conditions at the time of sale. A downward adjustment for its smaller size is warranted based on economies of scale. An upward adjustment is required for its inferior visibility/exposure within a less infill position of US Highway 50. An upward adjustment is warranted for its slightly inferior zoning, which caters to less dense residential uses. Overall, this property is inferior to the subject property.

Land Comparable 5 requires a downward adjustment for its superior market conditions at the time of sale. An upward adjustment for its larger size is warranted based on economies of scale.

An upward adjustment is required for its frontage/access. An upward adjustment is warranted for its slightly inferior zoning, which caters to less dense residential uses. Overall, this property is inferior to the subject property.

Land Comparable 6 requires no adjustment.

Land Comparable 7 requires a downward adjustment for conditions of sale, as properties typically sell for less than their list price in this market. An upward adjustment for its inferior highway visibility/exposure is warranted as most of this property is situated behind an existing commercial building adjacent to the south. Overall, this property is inferior to the subject property.

MARKET PARTRICIPANT DISCUSSION
A broker with Chase International Luxury Real Estate in South Lake Tahoe reported the subject would likely sell for around what his property sold for along 4th Street (Sale 1) at $54.50 per square foot of coverage area, given the superior visibility but slightly inferior zoning. However, a broker with NAI Sierra Tahoe in South Lake Tahoe reported the subject would likely sell around $10 per gross square foot, or approximately $33 per square foot of coverage area like that of Sale 6 along Emerald Bay Road. However, he thought the subject’s visibility/exposure was slightly superior to that sale. Both brokers reported the market has been a small boom in residential construction as demand for reasonably priced apartment housing for laborers in the local travel industry is at high.
345
Land Value
38 VALUE CONCLUSION
The comparable properties range from $29.44 to $59.28 per square foot after considering adjustments. Overall, a value per square foot indicator below the unadjusted indicators of the superior comparable properties and above the unadjusted indicators of the inferior comparable is reasonable, with a majority emphasis placed on the adjusted sale indicators of Land Comparable 1, proximate location to the subject property, lack of TDRs like the subject property, and most recent sale date, and Land Comparable 6 for its least amount of gross adjustment and lack of TDRs like the subject property. The concluded land value is shown as follows.

CONCLUDED LAND VALUE
$ PSF Subject SF Total
$45.00 x 19,876 = $894,416
$50.00 x 19,876 = $993,795
Land Value (Rounded): $940,000
(Rounded $ PSF) $47.29
Compiled by CBRE
346
Reconciliation of Value
39 Reconciliation of Value
In valuing the subject property, the sales comparison approach is used. The sales comparison approach is predicated on the principle that a buyer would pay no more for an existing property than for a comparable property with similar utility. The cost and income capitalization approaches were not applicable for the fee simple market value of the subject property.

Based on the foregoing, the market value of the subject property is concluded as follows:

MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion Hypothetical Value Fee Simple Estate March 5, 2024 $940,000 Compiled by CBRE

EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 8
 The coverage and transferrable development rights (TDRs) for the subject parcels were reported by the TRPA on their website. It is assumed the stated coverage figures and TDRs for the subject parcels in this appraisal report are accurate. The use of this extraordinary assumption may affect the assignment results.

HYPOTHETICAL CONDITIONS
A hypothetical condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis.” 9  The hypothetical value uses the hypothetical condition that the subject is a sellable, legal parcel measuring 66,253 square feet (1.521 acres). The use of the hypothetical condition may have affected the assignment results.
8 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 9 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 347
Assumptions and Limiting Conditions
40 Assumptions and Limiting Conditions

1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters.

2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date.

3. Unless otherwise expressly noted in the Report, CBRE has assumed that:
(i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company.
(ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems.
(iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices.
(iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances.

The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property.
(vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based.
(viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super-efficiently.
(ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses.
(x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. 348
Assumptions and Limiting Conditions
41 (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property.

Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions.

4. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report.

5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy permit.

6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property.

7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence-based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control.

In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change.

8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property.

9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles (“ESG”), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 349
Assumptions and Limiting Conditions
42 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance.

11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user’s failure to become familiar with and understand the same.

12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests.

13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use.

14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report.

15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. 350
Addenda

ADDENDA
351
Addenda
Addendum A

LAND SALE DATA SHEETS
352
Sale Land - Retail / Commercial No. 1
Property Name Fourth Street Land
Address 1072 4th Street
South Lake Tahoe, CA 96150
United States
Government Tax Agency El Dorado
Govt./Tax ID 023-391-008-000
Site/Government Regulations
Acres Square feet
Land Area Net 0.211 9,174
Land Area Gross 0.702 30,580
Site Development Status Finished
Shape Rectangular
Topography Generally Level
Utilities To Site
Maximum FAR N/A
Min Land to Bldg Ratio N/A
Maximum Density N/A
Frontage Distance/Street 150 ft 4th Street
General Plan N/A
Specific Plan N/A
Zoning TC-NP, Town Center Neighborhood Professional
Entitlement Status None
Sale Summary
Recorded Buyer Provision Properties LLC Marketing Time 1 Month(s) True Buyer N/A Buyer Type Developer
Recorded Seller Barton Healthcare System Inc. Seller Type Private Investor True Seller N/A Primary Verification Douglas Rosner-Chase International530-314-9221 Interest Transferred Fee Simple/Freehold Type Sale
Current Use Vacant Land Date 1/30/2024
Proposed Use Multi-Family Residential Sale Price $500,000 Listing Broker Douglas Rosner-Chase International-530-314 -9221
Financing All Cash
Selling Broker Mark Salmon-Compass Cash Equivalent $500,000 Doc # 2024-002552 Capital Adjustment $0
Adjusted Price $500,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 01/2024 Sale Provision Properties LLC Barton Healthcare System Inc.
$500,000 $2,374,169 / $54.50
353
Sale Land - Retail / Commercial No. 1
Units of Comparison
$54.50 / sf N/A / Unit
$2,374,169.04 / ac N/A / Allowable Bldg. Units
N/A / Building Area
Financial
No information recorded
Map & Comments
Buildable lot approximately 0.702 acre in the City's "Neighborhood Professional" zoning which allows multi-family development (25 units per acre), daycare/preschool, General Retail, Single Family, Professional Offices and many more. TRPA has verified 30% coverage with the chance of going to 70% coverage for multi-family development. It was listed for sale by Douglas Rosner of Chase International at $375,000 on January 13, 2024 and sold for $500,000 in late January 2024. The broker reported a bidding war between multiple potential buyers, which increased the selling price to $500,000. The buyer is reportedly going to build multi-family residential on the lot. No CFA, TAUs, or RUUs. 354
Sale Land - Retail / Commercial No. 2
Property Name Lake Forest Road Land
Address 2905 Lake Forest Road
Tahoe City, CA 96145
United States
Government Tax Agency Placer
Govt./Tax ID 093-052-001-000
Site/Government Regulations
Acres Square feet
Land Area Net 0.488 21,235
Land Area Gross 0.542 23,594
Site Development Status Finished
Shape Irregular
Topography Generally Level
Utilities To Site
Maximum FAR N/A
Min Land to Bldg Ratio N/A
Maximum Density N/A
Frontage Distance/Street 105 ft Lake Forest Road
Frontage Distance/Street 280 ft Aspen Street
Frontage Distance/Street 98 ft Hillcrest Avenue
General Plan N/A
Specific Plan N/A
Zoning Mixed-Use, Lake Forest Commercial Area #2, Commercial & Industrial
Entitlement Status N/A
Sale Summary
Recorded Buyer 2905 Lake Forest Road LLC Marketing Time 2 Month(s) True Buyer Stuart Gensburg Buyer Type Developer
Recorded Seller William Hunter Seller Type Private Investor True Seller William Hunter Primary Verification Breck Overall-Sierra Sotheby's Int.-530 -587-3505
Interest Transferred Fee Simple/Freehold Type Sale
Current Use Dilapidated Restaurant Date 11/14/2022
Proposed Use N/A Sale Price $1,300,000
Listing Broker Breck Overall-Sierra Sotheby's Int.-530-587- 3505
Financing All Cash
Selling Broker Jamison Blair-Tahoe Real Estate Group-530- 277-8654
Cash Equivalent $1,300,000
Doc # 2022-085801 Capital Adjustment $0
Adjusted Price $1,373,600
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 11/2022 Sale 2905 Lake Forest Road
LLC
William Hunter $1,300,000 $2,817,641 / $64.69
355
Sale Land - Retail / Commercial No. 2
Units of Comparison
$64.69 / sf N/A / Unit
$2,817,641.03 / ac N/A / Allowable Bldg. Units
N/A / Building Area
Financial
No information recorded
Map & Comments
The building was reported as obsolete so this sale was for land value. The buyer plans to redevelop the property as an owner-user opportunity. The restaurant measured 7,360-SF, which would be considered banked CFA upon demolition. The property also had one living unit, which would be considered a banked RUU. The property was listed for sale at $1,350,000 on September 16, 2022, and sold in November 2022 at $1,300,000. This site had approximately 90% coverage at the time of sale.

Demolition costs were estimated at $10/SF of building area and added to the sale price for the bare land value. The parcel is within the Lake Forest Commercial Area #2, which permits a variety of uses including commercial (retail & office), light industrial, and residential. 356
Sale Land - Planned Development No. 3
Property Name Pioneer Trail Land
Address 3574-3594 Pioneer Trail
South Lake Tahoe, CA 96150
United States
Government Tax Agency El Dorado
Govt./Tax ID Multiple
Site/Government Regulations
Acres Square feet
Land Area Net 0.957 41,687
Land Area Gross 3.190 138,956
Site Development Status Raw
Shape Irregular
Topography Generally Level
Utilities To Site
Maximum FAR N/A
Min Land to Bldg Ratio N/A
Maximum Density 82.55 per ac
Frontage Distance/Street 460 ft Pioneer Trail
Frontage Distance/Street 100 ft Ski Run Blvd.

General Plan N/A
Specific Plan N/A
Zoning TSC-MUC, Tourist Center Mixed-Use Corridor
Entitlement Status N/A
Sale Summary
Recorded Buyer Heavenly Resort Homes LLC Marketing Time 6 Month(s) True Buyer R.D. McIntyre Holdings, Inc. Buyer Type Developer Recorded Seller Pacific Development Group Seller Type Private Investor True Seller Joe Michael Primary Verification Scott Fair-NAI Tahoe Sierra-(530) 525- 2304
Interest Transferred Fee Simple/Freehold Type Sale
Current Use Vacant Land Date 8/30/2022
Proposed Use Resort Hotel or Luxury SFRs Sale Price $3,500,000 Listing Broker Scott Fair-NAI Tahoe Sierra-(530) 525-2304 Financing All Cash Selling Broker Mark Salmon-Compass-(530) 318-7637 Cash Equivalent $3,500,000 Doc # 2022-038086 Capital Adjustment $0
Adjusted Price $3,500,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 08/2022 Sale Heavenly Resort Homes
LLC
Pacific Development
Group
$3,500,000 $3,657,262 / $83.96
357
Sale Land - Planned Development No. 3
Units of Comparison
$83.96 / sf N/A / Unit
$3,657,262.28 / ac $44,304 / Allowable Bldg. Units
N/A / Building Area
Financial
No information recorded
Map & Comments
This 3.19-acre site is composed of five contiguous parcels along the northeast corner of Pioneer Trail and Ski Run Boulevard. It was listed for sale at $3,900,000 in early 2022, and it sold for $3,500,000 in late August 2022. The property was purchased by a developer for either a resort property for luxury SFR subdivision. The property is located at the Southeast corner of the intersection of Pioneer Trail and Ski Run Boulevard. It is a high-traffic and high-visibility location on the way to the entrance of the Heavenly Valley Ski Resort. It includes approximately 460·of frontage along Pioneer Trail and approximately 100· of frontage along Ski Run Boulevard. All five parcels are located within the Class 6 Land Capability District allowing 30% base allowable coverage, the highest such factor stipulated by TRPA. The Class 6 Land Capability District designation also facilitates the transfer of coverage on to the parcels to increase coverage from the 30% base allowable to the 70% maximum under the TCAP. Development rights included one verified Residential Unit of Use (RUU).

In April 2020 an Amendment to the City of South Lake Tahoe Tourist Core Area Plan (TCAP) was approved by the City and the Tahoe Regional Planning Agency (TRPA) placing the entire site within the TCAP and Town Center with the zoning of Tourist Center ²Mixed Use Corridor Special Area #1. The zoning permits commercial, residential market-rate for-sale and rental projects. The zoning also allows vacation home rentals, making it one of the few sites in the City of South Lake Tahoe where development of such a project is still allowed. Other major benefits of the property·s location within the TCAP include:
- Maximum building height of 56·
4 stories), Maximum land coverage of 70% (subject to transfer of coverage to site as applicable), Maximum density of 25 dwelling units/acre (results in density of 79 units when applied to site acreage) under the TCAP Multi-Person Dwelling land use (including condominiums). 358
Sale Land - Retail / Commercial No. 4
Property Name Emerald Bay Road Gateway Land
Address 1190 Emerald Bay Road
South Lake Tahoe, CA 96150
United States
Government Tax Agency El Dorado
Govt./Tax ID 032-151-001-000
Site/Government Regulations
Acres Square feet
Land Area Net 0.300 13,068
Land Area Gross 1.000 43,560
Site Development Status Raw
Shape Rectangular
Topography Generally Level
Utilities To Site
Maximum FAR N/A
Min Land to Bldg Ratio N/A
Maximum Density N/A
Frontage Distance/Street 209 ft Emerald Bay Road (State Hwy 89) Frontage Distance/Street 209 ft D Street
General Plan N/A
Specific Plan N/A
Zoning TC-G, Town Center Gateway
Entitlement Status N/A
Sale Summary
Recorded Buyer Faups LLC Marketing Time 3 Month(s)
True Buyer N/A Buyer Type Developer
Recorded Seller Turner Family Trust Seller Type Private Investor True Seller Stephen G & Andrea J Turner Primary Verification Scott Fair-NAI Tahoe Sierra-530-525- 2304
Interest Transferred Fee Simple/Freehold Type Sale
Current Use Vacant Land Date 8/9/2022
Proposed Use N/A Sale Price $430,000
Listing Broker Scott Fair-NAI Tahoe Sierra-530-525-2304 Financing All Cash Selling Broker Michael Keller-Keller Properties-530-307- 0027
Cash Equivalent $430,000
Doc # 2022-033567 Capital Adjustment $0
Adjusted Price $430,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 08/2022 Sale Faups LLC Turner Family Trust $430,000 $1,433,333 / $32.90 359
Sale Land - Retail / Commercial No. 4
Units of Comparison
$32.90 / sf N/A / Unit
$1,433,333.33 / ac N/A / Allowable Bldg. Units
N/A / Building Area
Financial
No information recorded
Map & Comments
This site was listed for sale at $350,000. It was on the market for approximately three months and sold for $430,000. It has 30% coverage and no TDRs (CFA, RUUs, TAUs). 360
Sale Land - Retail / Commercial No. 5
Property Name Emerald Bay Road Land
Address 1080 Emerald Bay Road
South Lake Tahoe, CA 96150
United States
Government Tax Agency El Dorad0
Govt./Tax ID Multiple
Site/Government Regulations
Acres Square feet
Land Area Net 1.199 52,232
Land Area Gross 5.420 236,095
Site Development Status Raw
Shape Irregular
Topography Level, At Street Grade
Utilities To Site
Maximum FAR N/A
Min Land to Bldg Ratio N/A
Maximum Density N/A
Frontage Distance/Street 350 ft Emerald Bay Road (State Hwy 89) Frontage Distance/Street 100 ft B Street
Frontage Distance/Street 30 ft Bonanza Ave.

General Plan N/A
Specific Plan N/A
Zoning TC-G, Town Center Gateway
Entitlement Status N/A
Sale Summary
Recorded Buyer Pinoz, LLC Marketing Time 9 Month(s)
True Buyer N/A Buyer Type Developer
Recorded Seller Emerald Bay Road Properties, LP Seller Type Private Investor True Seller N/A Primary Verification Forest Halford - Natural Resources Group, Inc.

Interest Transferred Fee Simple/Freehold Type Sale
Current Use Vacant Land Date 4/20/2021
Proposed Use N/A Sale Price $1,850,000
Listing Broker Forest Halford - Natural Resources Group, Inc.

Financing All Cash
Selling Broker Roderic McIsaac - Natural Resources Group, Inc.

Cash Equivalent $1,850,000
Doc # 21-0027774 Capital Adjustment $0
Adjusted Price $1,850,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 04/2021 Sale Pinoz, LLC Emerald Bay Road
Properties, LP
$1,850,000 $1,542,824 / $35.42
361
Sale Land - Retail / Commercial No. 5
Units of Comparison
$35.42 / sf N/A / Unit
$1,542,823.78 / ac N/A / Allowable Bldg. Units
N/A / Building Area
Financial
No information recorded
Map & Comments
The site was vacant at the time of sale. Per a survey provided by Tahoe Regional Planning Agency, the property has 40,746 sf of banked coverage and an additional 11,486 square feet of remaining base potential development for a total of 52,232 SF of coverage. The property also includes 4 RUUs and 5,631 square feet of residential floor area. This property was listed for sale in August 2020 at $2,000,000 by Forest Halford of Natural Resources Group, Inc. The buyer and seller entered contract in January 2021 at $1,850,000 and closed escrow in April 2021 at that price. 362
Sale Land - Retail / Commercial No. 6
Property Name Lake Tahoe Land
Address 8716 North Lake Boulevard
Kings Beach, CA 96143
United States
Government Tax Agency Placer
Govt./Tax ID 090-142-029, 090-142-001, 090-142-002, 090-142-011 Site/Government Regulations
Acres Square feet
Land Area Net 0.441 19,226
Land Area Gross 0.896 39,033
Site Development Status N/A
Shape Rectangular
Topography Generally Level
Utilities To site
Maximum FAR 0.00
Min Land to Bldg Ratio N/A
Maximum Density 0.00 per ac
Frontage Distance/Street 125 ft N. Lake Tahoe Blvd. (Highway 28) Frontage Distance/Street 125 ft Brockway Vista Avenue
General Plan N/A
Specific Plan N/A
Zoning MU-WREC, Mixed Use Commercial
Entitlement Status N/A
Sale Summary
Recorded Buyer Neptune Investments LLC Marketing Time 8 Month(s) True Buyer Alan Shera Buyer Type Private Investor
Recorded Seller County of Placer Seller Type Public Syndicator True Seller County of Placer Primary Verification Katie Mancuso-Mancuso Real Properties-530-559-4299
Interest Transferred Fee Simple/Freehold Type Sale
Current Use Vacant Land Date 9/17/2020
Proposed Use N/A Sale Price $875,000
Listing Broker Katie Mancuso-Mancuso Real Properties-530- 559-4299
Financing Cash to Seller
Selling Broker Katie Mancuso-Mancuso Real Properties-530- 559-4299
Cash Equivalent $875,000
Doc # 2020-103872 Capital Adjustment $0
Adjusted Price $875,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 09/2020 Sale Neptune Investments LLC County of Placer $875,000 $1,982,329 / $45.51 363
Sale Land - Retail / Commercial No. 6
Units of Comparison
$45.51 / sf N/A / Unit
$1,982,328.95 / ac N/A / Allowable Bldg. Units
N/A / Building Area
Map & Comments
This site composed of four adjacent parcels was listed for sale by Katie Mancuso in June 2019 at $875,000. The property consist of four contiguous land parcels with a total land area of 0.896 acres the property is zoned mixed-use commercial and residential. The property has frontage on N Lake Blvd and Brockway Vista Avenue. One of the parcels along Brockway Vista Ave was partially paved. The listing and buyer brokers reported that the buyer will develop into two commercial units and two residential units.

The property was not approved for the development at the time of sale. The escrow time on the sale was 45 days but the sale was under contract for eight months due to the seller being the County of Placer.

The buyer used a 1031 exchange on this transaction; however, the broker report this sold at market levels. The site had a combined 19,226 square feet of coverage, no CFA, no TAUs, and one RUU at the time of sale.
364
Sale Land - Retail / Commercial No. 7
Property Name Emerald Bay Road Commercial Land
Address 941 Emerald Bay Road
South Lake Tahoe, CA 96150
United States
Government Tax Agency El Dorado
Govt./Tax ID 023-191-007-000
Site/Government Regulations
Acres Square feet
Land Area Net 0.428 18,633
Land Area Gross 0.560 24,393
Site Development Status Finished
Shape Rectangular
Topography Generally Level
Utilities All to Site
Maximum FAR N/A
Min Land to Bldg Ratio N/A
Maximum Density N/A
Frontage Distance/Street 116 ft Emeral Bay Road
Frontage Distance/Street 116 ft James Avenue
General Plan N/A
Specific Plan N/A
Zoning TC-C, Town Center - Core
Entitlement Status N/A
Sale Summary
Recorded Buyer N/A Marketing Time 9 Month(s)
True Buyer N/A Buyer Type N/A
Recorded Seller S & J Leman Trust Seller Type Private Investor True Seller Steven & Janet Leman Primary Verification Scott Fair - NAI Sierra Tahoe Interest Transferred Fee Simple/Freehold Type Sale
Current Use Previously Developed Parcel Date 3/5/2024
Proposed Use Commercial Development Sale Price $765,000 Listing Broker Scott Fair - NAI Sierra Tahoe Financing Market Rate Financing Selling Broker N/A Cash Equivalent $765,000
Doc # N/A Capital Adjustment $0
Adjusted Price $765,000
Transaction Summary plus Five-Year CBRE View History
Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 03/2024 Sale N/A S & J Leman Trust $765,000 $1,788,219 / $41.06 03/2019 Sale S & J Leman Trust C & S Purvance Trust $300,000 $701,262 / $16.10 365
Sale Land - Retail / Commercial No. 7
Units of Comparison
$41.06 / sf N/A / Unit
$1,788,218.79 / ac N/A / Allowable Bldg. Units
N/A / Building Area
Financial
No information recorded
Map & Comments
This 0.56-acre previously developed parcel was listed for sale at $765,000 in October 2023 by Scott Fair of NAI Tahoe Sierra. This parcel has banked land coverage of 18,633 square feet (banked and paid for) and commercial floor area (CFA) of 7,604 square feet (1,434 SF banked & 6,170 SF bonus). It has frontage of 116 feet along the east side of Emerald Bay Road, with additional access available from James Avenue in the rear. This property previously sold in March 2019 for $300,000 when it was originally listed for sale at $685,000.
366
Addenda
Addendum B

ALTA SURVEY
367
368
369
370
Addenda
Addendum C
PRELIMINARY TITLE REPORT (APN 023-201-072)
371
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 1 of 13
Transaction Identification Data, for which the Company assumes no liability as set forth in Commitment Condition 5.e.:

Issuing Agent: First American Title Insurance Company National Commercial Services Issuing Office: 200 SW Market Street, Suite 250, Portland, OR 97201 Commitment No.: NCS-1174332-OR1
Issuing Office File No.: NCS-1174332-OR1
Property Address: 2111 Lake Tahoe Boulevard,South Lake Tahoe, CA 96150 Reference No.: 2111 Lake Tahoe Boulevard
Revision No.:

Escrow Officer/Assistant: Rene Moody/ Lisa Smith
Phone: (503)795-7600/(503)795-7606
Email: [email protected]/ [email protected]
Title Officer/Assistant: Emily Collins/
Phone: (503)795-7604/
Email: [email protected]/

SCHEDULE A

1. Commitment Date: April 13, 2023 at 7:30 AM

2. Policy to be issued:
a. ALTA® Standard Owner’s Policy
Proposed Insured: To Be Determined
Proposed Amount of Insurance: $156,013.00
The estate or interest to be insured: See Item 3 below

3. The estate or interest in the Land at the Commitment Date is:

Fee

4. The Title is, at the Commitment Date, vested in:

Central Bank, a California Banking corporation

5. The Land is described as follows:

See Exhibit A attached hereto and made a part hereof
372
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 2 of 13
Commitment No. NCS-1174332-OR1
SCHEDULE B, PART I—Requirements
All of the following Requirements must be met:

A. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions.

B. Pay the agreed amount for the estate or interest to be insured.

C. Pay the premiums, fees, and charges for the Policy to the Company.

D. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records.

E. Releases(s) or Reconveyance(s) of Item(s): NONE
F. Other: NONE
G. You must give us the following information:
a. Any off-record leases, surveys, etc.
b. Statement(s) of Identity, all parties.
c. Other: NONE
The following additional requirements, as indicated by "X", must be met:
☒ H. Provide information regarding any off-record matters, which may include, but are not limited to: leases, recent works of improvement, or commitment statements in effect under the Environmental Responsibility Acceptance Act, Civil Code Section 850, et seq. ☒ I. The Company's Owner's Affidavit form (attached hereto) must be completed and submitted prior to close in order to satisfy this requirement. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary.
☒ J. An ALTA/NSPS survey of recent date, which complies with the current minimum standard detail requirements for ALTA/NSPS land title surveys, must be submitted to the Company for review. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary.
373
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 3 of 13
☐ K. The following LLC documentation is required from the seller:
a. a copy of the Articles of Organization.
b. a copy of the Operating Agreement, if applicable.
c. a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State.
d. express Company Consent to the current transaction.
☐ L. The following partnership documentation is required:
a. a copy of the partnership agreement, including all applicable amendments thereto. b. a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State.
c. express Partnership Consent to the current transaction. ☒ M. The following corporation documentation is required:
a. a copy of the Articles of Incorporation.
b. a copy of the Bylaws, including all applicable Amendments thereto. c. a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State.
d. express Corporate Resolution consenting to the current transaction. ☒ N. Based upon the Company's review of that certain partnership/operating agreement dated Not disclosed for the proposed insured herein, the following requirements must be met:

Any further amendments to said agreement must be submitted to the Company, together with an affidavit from one of the general partners or members stating that it is a true copy, that said partnership or limited liability company is in full force and effect, and that there have been no further amendments to the agreement. This Commitment will then be subject to such further requirements as may be deemed necessary. ☐ O. A copy of the complete lease, as referenced in Schedule A, #3 herein, together with any amendments and/or assignments thereto, must be submitted to the Company for review, along with an affidavit executed by the present lessee stating that it is a true copy, that the lease is in full force and effect, and that there have been no further amendments to the lease. This Commitment will then be subject to such further requirements as may be deemed necessary.
☒ P. Approval from the Company's Underwriting Department must be obtained for issuance of the policy contemplated herein and any endorsements requested thereunder. This Commitment will then be subject to such further requirements as may be required to obtain such approval.
374
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 4 of 13
☒ Q. Potential additional requirements, if ALTA Extended coverage is contemplated hereunder, and work on the land has commenced prior to close, some or all of the following requirements, and any other requirements which may be deemed necessary, may need to be met:
a. The Company's "Indemnity Agreement I" must be executed by the appropriate parties. b. Financial statements from the appropriate parties must be submitted to the Company for review.
c. A copy of the construction contract must be submitted to the Company for review. d. An inspection of the Land must be performed by the Company for verification of the phase of construction.
e. The Company's "Mechanic's Lien Risk Addendum" form must be completed by a Company employee, based upon information furnished by the appropriate parties involved.
375
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 5 of 13
Commitment No. NCS-1174332-OR1
SCHEDULE B, PART II—Exceptions
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This Commitment and the Policy treat any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document will be excepted from coverage.

The Policy will not insure against loss or damage resulting from the terms and conditions of any lease or easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of the Company:

1. Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I—Requirements are met.

2. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

3. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

4. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

5. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

7. General and special taxes and assessments for the fiscal year 2023-2024, a lien not yet due or payable.

8. Taxes and assessments, if any, of the South Tahoe Public Utility District. 376
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 6 of 13

9. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code.

10. The lien of special tax assessed pursuant to Chapter 2.5 commencing with Section 53311 of the California Government Code for Community Facilities District No. 2000-1, as disclosed by Notice of Special Tax Lien recorded February 13, 2001 as Instrument No. 2001-7379 of Official Records.

Document(s) declaring modifications thereof recorded May 09, 2013 as Instrument No. 2013-23469 of Official Records.

11. Water rights, claims or title to water, whether or not shown by the Public Records.

12. An easement for Pole Lines and incidental purposes, recorded December 01, 1924 in Book 100 of Deeds, Page 189.

In Favor of: The Pacific Telephone and Telegraph Company Affects: The Exact Location is not Set Out

13. An easement for Electric Transmission Lines, Telephone and Telegraph Wires and incidental purposes, recorded November 05, 1930 in Book 120, Page 159 of Official Records.

In Favor of: Sierra Pacific Power Company, a corporation Affects: Reference made to said Document for exact location

14. The fact that the land lies within the boundaries of the South Tahoe Redevelopment Project Area No. 2 (Uncodified) Redevelopment Project Area, as disclosed by the document recorded June 08, 2010 as Instrument No. 2010-24970 of Official Records.

15. Rights of parties in possession.
377
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 7 of 13

INFORMATIONAL NOTES
ALERT - CA Senate Bill 2 imposes an additional fee of $75 up to $225 at the time of recording on certain transactions effective January 1, 2018. Please contact your First American Title representative for more information on how this may affect your closing.

1. Taxes for proration purposes only for the fiscal year 2022-2023.

First Installment: $856.17, PAID
Second Installment: $856.17, PAID
Tax Rate Area: 002-002
APN: 023-201-072-000

2. The property covered by this report is vacant land.

3. According to the public records, there has been no conveyance of the land within a period of twentyfour months prior to the date of this report, except as follows:

None

4. This preliminary report/commitment was prepared based upon an application for a policy of title insurance that identified land by street address or assessor's parcel number only. It is the responsibility of the applicant to determine whether the land referred to herein is in fact the land that is to be described in the policy or policies to be issued.

The map attached, if any, may or may not be a survey of the land depicted thereon. First American Title Insurance Company expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of this Commitment or the Policy, if any, to which the map is attached. 378
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 8 of 13
Commitment No. NCS-1174332-OR1

EXHIBIT A
The Land referred to herein below is situated in the City of South Lake Tahoe, County of El Dorado, State of California, and is described as follows:

PARCEL ONE:

ALL THAT PORTION OF SECTION 4, TOWNSHIP 12 NORTH, RANGE 18 EAST, M.D.B.&M., DESCRIBED AS FOLLOWS:

COMMENCING AT THE NORTHWEST CORNER OF THE TRACT HEREIN DESCRIBED, FROM WHICH POINT THE WEST QUARTER CORNER OF SAID SECTION 4 BEARS SOUTH 49° 38' WEST 104.0 FEET, AND NORTH 87° 56' WEST 561.0 FEET; THENCE LEAVING SAID POINT OF BEGINNING AND RUNNING SOUTH 40° 22' EAST 209.00 FEET TO THE SOUTHWEST CORNER OF THE PARCEL HEREIN DESCRIBED, SAID POINT BEING SITUATE ON THE NORTHERLY BOUNDARY OF U.S. HIGHWAY 50 THENCE ALONG THE NORTH BOUNDARY OF U.S. HIGHWAY 50, NORTH 49° 38' EAST 104.0 FEET TO THE SOUTHEAST CORNER THEREOF; A 2 INCH SQUARE STAKE; THENCE LEAVING SAID HIGHWAY AND RUNNING NORTH 40° 22' WEST 209.0 FEET TO THE NORTHEAST CORNER THEREOF, A SIMILAR STAKE; THENCE SOUTH 49° 38' WEST 104.0 FEET TO THE POINT OF COMMENCEMENT.

PARCEL TWO:

ALL THAT PORTION OF SECTION 4, TOWNSHIP 12 NORTH, RANGE 18 EAST, M.D.B.&M., DESCRIBED AS FOLLOWS:

COMMENCING AT THE NORTHWEST CORNER OF THE PROPERTY HEREIN DESCRIBED FROM WHICH POINT THE WEST QUARTER CORNER OF SAID SECTION 4, BEARS SOUTH 49° 38' WEST 100.0 FEET AND NORTH 87° 56' WEST 561.0 FEET; THENCE FROM POINT OF BEGINNING, SOUTH 40° 22' EAST 209.0 FEET TO THE SOUTHWEST CORNER OF THE PROPERTY HEREIN DESCRIBED, A POINT IN THE NORTHERLY BOUNDARY OF U.S. HIGHWAY 50; THENCE, ALONG SAID NORTHERLY BOUNDARY OF U.S.

HIGHWAY 50, NORTH 49° 38' EAST 4.0 FEET; THENCE, LEAVING SAID HIGHWAY BOUNDARY, NORTH 40° 22’ WEST 209.0 FEET TO THE NORTHEAST CORNER THEREOF; THENCE SOUTH 49° 38’ WEST 4.0 FEET TO THE POINT OF BEGINNING.

For conveyancing purposes only: APN 023-201-072-000
379
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 9 of 13

ALTA COMMITMENT FOR TITLE INSURANCE
issued by

FIRST AMERICAN TITLE INSURANCE COMPANY
NOTICE
IMPORTANT—READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT.

THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE

PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY

SEARCH AND EXAMINATION, ARE PROPRIETARY TO THE COMPANY, WERE PERFORMED SOLELY FOR

THE BENEFIT OF THE COMPANY, AND CREATE NO EXTRACONTRACTUAL LIABILITY TO ANY PERSON, INCLUDING A PROPOSED INSURED.

THE COMPANY’S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED

INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT. THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON.

COMMITMENT TO ISSUE POLICY
Subject to the Notice; Schedule B, Part I—Requirements; Schedule B, Part II—Exceptions; and the Commitment Conditions, First American Title Insurance Company, a Nebraska Corporation (the “Company”), commits to issue the Policy according to the terms and provisions of this Commitment. This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A, only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Amount of Insurance and the name of the Proposed Insured.

If all of the Schedule B, Part I—Requirements have not been met within six months after the Commitment Date, this Commitment terminates and the Company’s liability and obligation end. 380
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 10 of 13

COMMITMENT CONDITIONS

1. DEFINITIONS
a. “Discriminatory Covenant”: Any covenant, condition, restriction, or limitation that is unenforceable under applicable law because it illegally discriminates against a class of individuals based on personal characteristics such as race, color, religion, sex, sexual orientation, gender identity, familial status, disability, national origin, or other legally protected class.
b. “Knowledge” or “Known”: Actual knowledge or actual notice, but not constructive notice imparted by the Public Records.
c. “Land”: The land described in Item 5 of Schedule A and improvements located on that land that by State law constitute real property. The term “Land” does not include any property beyond that described in Schedule A, nor any right, title, interest, estate, or easement in any abutting street, road, avenue, alley, lane, right-of-way, body of water, or waterway, but does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy.
d. “Mortgage”: A mortgage, deed of trust, trust deed, security deed, or other real property security instrument, including one evidenced by electronic means authorized by law. e. “Policy”: Each contract of title insurance, in a form adopted by the American Land Title Association, issued or to be issued by the Company pursuant to this Commitment. f. “Proposed Amount of Insurance”: Each dollar amount specified in Schedule A as the Proposed Amount of Insurance of each Policy to be issued pursuant to this Commitment. g. “Proposed Insured”: Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment.
h. “Public Records”: The recording or filing system established under State statutes in effect at the Commitment Date under which a document must be recorded or filed to impart constructive notice of matters relating to the Title to a purchaser for value without Knowledge. The term “Public Records” does not include any other recording or filing system, including any pertaining to environmental remediation or protection, planning, permitting, zoning, licensing, building, health, public safety, or national security matters. i. “State”: The state or commonwealth of the United States within whose exterior boundaries the Land is located. The term “State” also includes the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and Guam. j. “Title”: The estate or interest in the Land identified in Item 3 of Schedule A.

2. If all of the Schedule B, Part I—Requirements have not been met within the time period specified in the Commitment to Issue Policy, this Commitment terminates and the Company’s liability and obligation end.
381
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 11 of 13

3. The Company’s liability and obligation is limited by and this Commitment is not valid without:
a. the Notice;
b. the Commitment to Issue Policy;
c. the Commitment Conditions;
d. Schedule A;
e. Schedule B, Part I—Requirements; and
f. Schedule B, Part II—Exceptions; and
g. a counter-signature by the Company or its issuing agent that may be in electronic form.

4. COMPANY’S RIGHT TO AMEND
The Company may amend this Commitment at any time. If the Company amends this Commitment to add a defect, lien, encumbrance, adverse claim, or other matter recorded in the Public Records prior to the Commitment Date, any liability of the Company is limited by Commitment Condition 5.

The Company is not liable for any other amendment to this Commitment.

5. LIMITATIONS OF LIABILITY
a. The Company’s liability under Commitment Condition 4 is limited to the Proposed Insured’s actual expense incurred in the interval between the Company’s delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment, resulting from the Proposed Insured’s good faith reliance to:
i. comply with the Schedule B, Part I—Requirements;
ii. eliminate, with the Company’s written consent, any Schedule B, Part II—Exceptions; or iii. acquire the Title or create the Mortgage covered by this Commitment. b. The Company is not liable under Commitment Condition 5.a. if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing.
c. The Company is only liable under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured. d. The Company’s liability does not exceed the lesser of the Proposed Insured’s actual expense incurred in good faith and described in Commitment Condition 5.a. or the Proposed Amount of Insurance.
e. The Company is not liable for the content of the Transaction Identification Data, if any. f. The Company is not obligated to issue the Policy referred to in this Commitment unless all of the Schedule B, Part I—Requirements have been met to the satisfaction of the Company. g. The Company’s liability is further limited by the terms and provisions of the Policy to be issued to the Proposed Insured.
382
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 12 of 13

6. LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT; CHOICE OF LAW AND

CHOICE OF FORUM
a. Only a Proposed Insured identified in Schedule A, and no other person, may make a claim under this Commitment.
b. Any claim must be based in contract under the State law of the State where the Land is located and is restricted to the terms and provisions of this Commitment. Any litigation or other proceeding brought by the Proposed Insured against the Company must be filed only in a State or federal court having jurisdiction.
c. This Commitment, as last revised, is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations, representations, and proposals of any kind, whether written or oral, express or implied, relating to the subject matter of this Commitment. d. The deletion or modification of any Schedule B, Part II—Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy.
e. Any amendment or endorsement to this Commitment must be in writing and authenticated by a person authorized by the Company.
f. When the Policy is issued, all liability and obligation under this Commitment will end and the Company’s only liability will be under the Policy.

7. IF THIS COMMITMENT IS ISSUED BY AN ISSUING AGENT
The issuing agent is the Company’s agent only for the limited purpose of issuing title insurance commitments and policies. The issuing agent is not the Company’s agent for closing, settlement, escrow, or any other purpose.

8. PRO-FORMA POLICY
The Company may provide, at the request of a Proposed Insured, a pro-forma policy illustrating the coverage that the Company may provide. A pro-forma policy neither reflects the status of Title at the time that the pro-forma policy is delivered to a Proposed Insured, nor is it a commitment to insure.

9. CLAIMS PROCEDURES
This Commitment incorporates by reference all Conditions for making a claim in the Policy to be issued to the Proposed Insured. Commitment Condition 9 does not modify the limitations of liability in Commitment Conditions 5 and 6.

10. CLASS ACTION

ALL CLAIMS AND DISPUTES ARISING OUT OF OR RELATING TO THIS COMMITMENT,

INCLUDING ANY SERVICE OR OTHER MATTER IN CONNECTION WITH ISSUING THIS

COMMITMENT, ANY BREACH OF A COMMITMENT PROVISION, OR ANY OTHER CLAIM OR

DISPUTE ARISING OUT OF OR RELATING TO THE TRANSACTION GIVING RISE TO THIS COMMITMENT, MUST BE BROUGHT IN AN INDIVIDUAL CAPACITY. NO PARTY MAY SERVE AS

PLAINTIFF, CLASS MEMBER, OR PARTICIPANT IN ANY CLASS OR REPRESENTATIVE PROCEEDING. ANY POLICY ISSUED PURSUANT TO THIS COMMITMENT WILL CONTAIN A CLASS ACTION CONDITION.
383
Commitment for Title Insurance
California - 2021 v. 01.00 (07-01-2021)
This page is only a part of a 2021 ALTA Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Form 50187306 (10-11-22) Page 13 of 13

11. ARBITRATION
The Policy contains an arbitration clause. All arbitrable matters when the Proposed Amount of Insurance is $2,000,000 or less may be arbitrated at the election of either the Company or the Proposed Insured as the exclusive remedy of the parties. A Proposed Insured may review a copy of the arbitration rules at http://www.alta.org/arbitration. 384
Addenda
Addendum D

CLIENT CONTRACT INFORMATION
385

VALUATION & ADVISORY SERVICES
Proposal and Contract for Services
CBRE, Inc.
400 South Hope Street, 25th Floor
Los Angeles, CA 90071
www.cbre.us/valuation
February 21, 2024
Andrew G. Power, MAI, MRICS
Executive Vice President
Grant Harris
Director, Corporate Real Estate
BMO HARRIS BANK, N.A.
121 Kalley Drive
Goleta, CA 93117
Phone: 805.637.8844 Ext. 21
Email: [email protected]
RE: Assignment Agreement
Vacant Commercial Land,
2111 South Lake Tahoe Boulevard
South Lake Tahoe, CA 96150
Dear Mr. Harris:

We are pleased to submit this proposal and our Terms and Conditions for this assignment.

PROPOSAL SPECIFICATIONS
Purpose: To estimate the Market Value of the referenced real estate.

Premise: As Is
Rights Appraised: Fee Simple
Intended Use: Portfolio Management Purposes
Intended User: The intended user is BMO HARRIS BANK, N.A. (“Client”), and such other parties and entities (if any) expressly recognized by CBRE as “Intended Users” (as further defined herein).

Reliance: Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or
conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the 386

BMO HARRIS BANK, N.A.

Assignment Agreement

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February 21, 2024
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VALUATION & ADVISORY SERVICES
report, its conclusions or contents or have any liability in connection therewith.

Inspection: CBRE will conduct a physical inspection of both the interior and exterior of the subject property, as well as its surrounding environs on the effective date of appraisal.

Valuation Approaches: All appropriate approaches to value (Sales Comparison Approach and Income Capitalization Approach).

Report Type: Standard Appraisal Report
Appraisal Standards: USPAP
Appraisal Fee: $5,000
Expenses: Fee includes all associated expenses
Retainer: A retainer is not required for this assignment Payment Terms: Final payment is due upon delivery of the final report or within thirty (30) days of your receipt of the draft report, whichever is sooner. The fee is considered earned upon delivery of the draft report.

We will invoice you for the assignment in its entirety at the completion of the assignment.

Delivery Instructions: CBRE encourages our clients to join in our environmental sustainability efforts by accepting an electronic copy of the report.

Two (2) hard copies will be provided upon authorization from client that the appraisal is in a finalized form.

An Adobe PDF file via email will be delivered to
[email protected].

Delivery Schedule:

Preliminary Value: Not Required
Draft Report: 20 business days after the Start Date
Final Report: Upon Client’s request
Start Date: The appraisal process will start upon receipt of your signed agreement, the retainer, and the property specific data.

Acceptance Date: These specifications are subject to modification if this proposal is not accepted within three business days from the date of this letter.

When executed and delivered by all parties, this letter, together with the Terms and Conditions and the Specific Property Data Request attached hereto and incorporated herein, will serve as the Agreement for appraisal services by and between CBRE and Client. Each person signing below represents that it is authorized to enter into this Agreement and to bind the respective parties hereto. 387

BMO HARRIS BANK, N.A.

Assignment Agreement

Page 3 of 9 ends

February 21, 2024
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VALUATION & ADVISORY SERVICES
We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us.

Sincerely,
CBRE, Inc.

Valuation & Advisory Services
Andrew G. Power, MAI, MRICS
Executive Vice President
As Agent for CBRE, Inc.

California State Cert. No. AG027835
Phone: (310) 930-8475
Phone: (213) 613-3711
388

BMO HARRIS BANK, N.A.

Assignment Agreement

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VALUATION & ADVISORY SERVICES

AGREED AND ACCEPTED
FOR: BMO HARRIS BANK, N.A. (“CLIENT”):

Signature Date

Name Title
Phone Number E-Mail Address

ADDITIONAL OPTIONAL SERVICES
Assessment & Consulting Services: CBRE’s Assessment & Consulting Services group has the capability of providing a wide array of solution-oriented due diligence services in the form of property condition and environmental site assessment reports and other necessary due diligence services (seismic risk analysis, zoning compliance services, construction risk management, annual inspections, etc.). CBRE provides our clients the full complement of due diligence services with over 260 employees in the U.S. that are local subject matter experts.

Initial below if you desire CBRE to contact you to discuss a proposal for any part or the full complement of consulting services, or you may reach out to us at [email protected]. We will route your request to the appropriate manager. For more information, please visit www.cbre.com/assessment. ________ Initial Here
2/21/2024
Grant Harris Director
389

VALUATION & ADVISORY SERVICES
Proposal and Contract for Services
www.cbre.us/valuation

TERMS AND CONDITIONS

1. The Terms and Conditions herein are part of an assignment agreement (the “Agreement”) for appraisal services (“Services”) between CBRE, Inc. (“CBRE”) and the client signing this Agreement and for whom the Services will be performed (the “Client”) for the property identified herein (the “Property”) and shall be deemed a part of such Agreement as though fully set forth therein. In addition, with respect to any appraisal report prepared by CBRE pursuant to the Agreement (the “Report”), any use of, or reliance on, the Report by any Intended User constitutes acceptance of these Terms and Conditions as well as acceptance of all qualifying statements, limiting conditions, and assumptions stated in the Report. The Agreement shall be governed and construed by the laws of the state where the CBRE office executing this Agreement is located without regard to conflicts of laws principles.

2. Client shall be responsible for the payment of all fees stipulated in this Agreement. Payment of the fees and preparation of the Report are not contingent upon any predetermined value or on any action or event resulting from the analyses, opinions, conclusions, or use of the Report. Final payment is due as provided in the Proposal Specifications Section of this Agreement. If a draft Report is requested, the fee is considered earned upon delivery of the draft Report. It is understood that the Client may cancel this assignment in writing at any time prior to delivery of the completed Report. In such event, the Client is obligated to pay CBRE for the time and expenses incurred (including, but not limited to, travel expenses to and from the job site) prior to the effective date of cancellation, with a minimum charge of $500. Hard copies of the Reports are available at a cost of $250 per original color copy and $100 per photocopy (black and white), plus shipping fees of $30 per Report.

3. If CBRE is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required or requested by Client or a third party to participate in meetings, phone calls and conferences (except routine meetings, phone calls and conferences with the Client for the sole purpose of preparing the Report), litigation, or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this assignment, the Report, CBRE’s expertise, or the Property, Client shall pay CBRE’s additional out-of-pocket costs and expenses, including but not limited to CBRE’s reasonable attorneys’ fees, and additional time incurred by CBRE based on CBRE’s then-prevailing hourly rates and related fees. Such charges include and pertain to, but are not limited to, time spent in preparing for and providing court room testimony, depositions, travel time, mileage and related travel expenses, waiting time, document review and production, and preparation time (excluding preparation of the Report), meeting participation, and CBRE’s other related commitment of time and expertise. Hourly charges and other fees for such participation will be provided upon request. In the event Client requests additional Services beyond the scope and purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related expenses, whether or not the completed Report has been delivered to Client at the time of such request.

4. CBRE shall have the right to terminate this Agreement at any time for cause effective immediately upon written notice to Client on the occurrence of fraud or the willful misconduct of Client, its employees or agents, or without cause upon 5 days written notice.

5. In the event Client fails to make payments when due then, from the date due until paid, the amount due and payable shall bear interest at the maximum rate permitted in the state where the CBRE office executing this Agreement is located.

EACH PARTY, AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL OF ITS CHOICE, KNOWINGLY

AND VOLUNTARILY, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION IN ANY WAY RELATED TO THIS AGREEMENT.

6. CBRE assumes there are no major or significant items or issues affecting the Property that would require the expertise of a professional building contractor, engineer, or environmental consultant for CBRE to prepare a valid Report hereunder.

Client acknowledges that such additional expertise is not covered in the fee and agrees that, if such additional expertise is required, it shall be provided by others at the discretion and direction of the Client, and solely at Client’s additional cost and expense.

7. Client acknowledges that CBRE is being retained hereunder as an independent contractor to perform the Services described herein and nothing in this Agreement shall be deemed to create any other relationship between Client and CBRE. Unless otherwise stated in this Agreement, Client shall not designate or disclose CBRE or any of its agents or employees as an expert or opinion witness in any court, arbitration, or other legal proceedings without the prior written consent of CBRE.

8. This assignment shall be deemed concluded and the Services hereunder completed upon delivery to Client of the Report discussed herein.

9. All statements of fact in the Report which are used as the basis of CBRE's analyses, opinions, and conclusions will be true and correct to CBRE's actual knowledge and belief. CBRE does not make any representation or warranty, express 390

BMO HARRIS BANK, N.A.

Assignment Agreement

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VALUATION & ADVISORY SERVICES
or implied, as to the accuracy or completeness of the information or the condition of the Property furnished to CBRE by Client or others. TO THE FULLEST EXTENT PERMITTED BY LAW, CBRE DISCLAIMS ANY GUARANTEE OR WARRANTY

AS TO THE OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY REPORT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE EVEN IF KNOWN TO CBRE.

Furthermore, the conclusions and any permitted reliance on and use of the Report shall be subject to the assumptions, limitations, and qualifying statements contained in the Report.

10. CBRE shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil conditions, engineering, or other similar technical matters. The Report will not constitute a survey of the Property analyzed.

11. Client shall provide CBRE with such materials with respect to the assignment as are requested by CBRE and in the possession or under the control of Client. Client shall provide CBRE with sufficient access to the Property to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary.

12. The data gathered in the course of the assignment (except data furnished by Client, “Client Information”) and the Report prepared pursuant to the Agreement are, and will remain, the property of CBRE. With respect to Client Information provided by Client, CBRE shall not violate the confidential nature of the appraiser-client relationship by improperly disclosing any confidential and proprietary Client Information furnished to CBRE. Notwithstanding the foregoing to the contrary, CBRE is authorized by Client to disclose all or any portion of the Report and related data as may be required by applicable law, statute, government regulation, legal process, or judicial decree, including to appropriate representatives of the Appraisal Institute if such disclosure is required to enable CBRE or its employees and agents to comply with the Bylaws and Regulations of the Appraisal Institute as now or hereafter in effect.

13. Unless specifically noted, in preparing the Report CBRE will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, “Hazardous Materials”) on or affecting the Property, or the cost of encapsulation or removal thereof.

Further, Client represents that there are no major or significant repairs, improvements or deferred maintenance of the Property that would require the expertise of a professional cost estimator, engineer, architect or contractor. If any such repairs, improvements or maintenance are needed, the estimates for such repairs, improvements or maintenance are to be prepared by other parties pursuant to a separate written agreement in Client’s sole discretion and direction, and are not deemed part of the Services or otherwise covered as part of the fee hereunder.

14. In the event Client intends to use the Report in connection with a tax matter, Client acknowledges that CBRE provides no warranty, representation or prediction as to the outcome of such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Report or otherwise disagree with Client’s tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Report. Client agrees that CBRE shall have no responsibility or liability to Client or any other party for any such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from CBRE relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorneys’ fees, costs or other expenses relating to Client’s tax matters.

15. LIMITATION OF LIABILITY. NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT TO THE CONTRARY:

16. (A) EXCEPT TO THE EXTENT ARISING FROM SECTION 16, OR SECTION 17 IF APPLICABLE, IN NO EVENT SHALL

EITHER PARTY OR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR CONTRACTORS BE

LIABLE TO THE OTHER PARTY, FOR ANY LOST OR PROSPECTIVE PROFITS OR ANY OTHER INDIRECT,

CONSEQUENTIAL, SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR OTHER EXEMPLARY LOSSES OR DAMAGES,

WHETHER BASED IN CONTRACT, WARRANTY, INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, REGARDLESS OF THE FORESEEABILITY OR THE CAUSE THEREOF.

17. (B) EXCEPT TO THE EXTENT ARISING FROM SECTION 16, OR SECTION 17 IF APPLICABLE, AGGREGATE

DAMAGES IN CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY

THE FEES AND COSTS REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO CBRE UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10,000).

18. (C) CBRE SHALL HAVE NO LIABILITY WITH RESPECT TO ANY LOSS, DAMAGE, CLAIM OR EXPENSE INCURRED BY OR ASSERTED AGAINST CLIENT ARISING OUT OF, BASED UPON OR RESULTING FROM CLIENT’S OR ANY INTENDED USER’S FAILURE TO PROVIDE ACCURATE OR COMPLETE INFORMATION OR DOCUMENTATION

PERTAINING TO ANY SERVICES OR REPORT ORDERED UNDER OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING CLIENT’S OR ANY INTENDED USER’S FAILURE, OR THE FAILURE OF ANY OF CLIENT’S OR ANY 391

BMO HARRIS BANK, N.A.

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INTENDER USER’S RESPECTIVE OFFICERS, DIRECTORS, MEMBERS, PRINCIPALS, AGENTS OR EMPLOYEES, TO PROVIDE A COMPLETE AND ACCURATE COPY OF THE REPORT TO ANY THIRD PARTY. CBRE SHALL HAVE NO LIABILITY WHATSOEVER FOR REPORTS OR DELIVERABLES THAT ARE SUBMITTED IN DRAFT FORM.

19. (D) THE LIMITATIONS OF LIABILITY IN SUBSECTIONS 15(A) AND 15(B) ABOVE SHALL NOT APPLY IN THE EVENT

OF A FINAL FINDING BY A COURT OF COMPETENT JURISDICTION THAT SUCH LIABILITY IS THE RESULT OF A PARTY’S FRAUD OR WILLFUL MISCONDUCT.

20. 21. (a) Client shall not disseminate, distribute, make available or otherwise provide any Report prepared hereunder to any third party (including without limitation, incorporating or referencing the Report, in whole or in part, in any offering, including, but not limited to any offering of the Property or any securities offering as defined by applicable law, or other material intended for review by other third parties) except (i) to any third party (a) identified in the Agreement as an Intended User subject to the terms and conditions of this Agreement or (b) otherwise expressly acknowledged in a separate writing executed by CBRE, such third party and Client, setting forth that such third party is an “Intended User” of the Report and providing CBRE with an acceptable release from such third party with respect to such Report or wherein Client provides acceptable indemnity protections to CBRE against any claims resulting directly from the distribution of the Report to such third party; (ii) to any third party service provider (including accountants, attorneys, rating agencies and auditors) using the Report in the course of providing Services for the sole benefit of an Intended User and limited to the Intended Use of the Report as defined in this Agreement, or (iii) to the extent required by applicable law, statute, government regulation, legal process, or judicial decree.

22. (b) In the event CBRE consents, in writing, to Client incorporating or referencing the Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such other materials available to any such parties unless and until Client has provided CBRE with complete copies of such offering or other materials and CBRE has approved the inclusion of the Report, or reference to the Report and/or CBRE, in such offering and other materials in writing. Further, CBRE’s consent to such inclusion of the Report, or reference to the Report and/or CBRE, in any securities offering is subject to (i) CBRE’s and CBRE’s securities counsel’s review and approval, in writing, of any inclusion of the Report, or reference to the Report and/or CBRE, in such securities offering; (ii) Client shall not modify the Report, any such inclusion of or reference to the Report and/or CBRE in such securities offering once approved by CBRE and its securities counsel in writing; and (iii) Client shall reimburse CBRE for its out-of-pocket costs and expenses, including attorneys’ fees, arising from legal review of such securities offering and related materials on CBRE’s behalf.

23. (c) In the absence of satisfying the conditions of this Section 16 with respect to any party who is not designated as an Intended User, in no event shall the receipt of a Report by such party extend any right to the party to use and rely on such Report, and CBRE shall have no liability for such unauthorized use and reliance on any Report.

24. (d) In the event Client breaches the provisions of this Section 16, Client shall indemnify, defend and hold CBRE and its affiliates and their officers, directors, employees, contractors, agents and other representatives (CBRE and each of the foregoing an “Indemnified Party” and collectively the “Indemnified Parties”), fully harmless from and against all losses, liabilities, damages and expenses (collectively, “Damages”) claimed against, sustained or incurred by any Indemnified Party arising out of or in connection with such breach, regardless of any negligence on the part of any Indemnified Party in preparing the Report.

25. In the event Client incorporates or references the Report, in whole or in part, in any offering, including, but not limited to any offering of the Property or any securities offering as defined by applicable law, or other material intended for review by other parties, Client shall indemnify, defend and hold each of the Indemnified Parties harmless from and against any Damages in connection with (i) any transaction contemplated by this Agreement or in connection with the Report or the engagement of or performance of Services by any Indemnified Party hereunder, (ii) any Damages claimed by any user or recipient of the Report, whether or not an Intended User, (iii) any actual or alleged untrue statement of a material fact, or the actual or alleged failure to state a material fact necessary to make a statement not misleading in light of the circumstances under which it was made with respect to all information furnished to any Indemnified Party or made available to a prospective party to a transaction, or (iv) an actual or alleged violation of applicable law by an Intended User (including, without limitation, securities laws) or the negligent or intentional acts or omissions of an Intended User (including the failure to perform any duty imposed by law); and will reimburse each Indemnified Party for all reasonable fees and expenses (including fees and expenses of counsel) (collectively, “Expenses”) as incurred in connection with investigating, preparing, pursuing or defending any threatened or pending claim, action, proceeding or investigation (collectively, “Proceedings”) arising therefrom, and regardless of whether such Indemnified Party is a formal party to such Proceeding. Client agrees not to enter into any waiver, release or settlement of any Proceeding (whether or not any Indemnified Party is a formal party to such Proceeding) without the prior written consent of CBRE (which consent will 392

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Assignment Agreement

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February 21, 2024
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VALUATION & ADVISORY SERVICES
not be unreasonably withheld or delayed) unless such waiver, release or settlement includes an unconditional release of each Indemnified Party from all liability arising out of such Proceeding.

26. Time Period for Legal Action. Unless the time period is shorter under applicable law, except in connection with Section16 and Section 17, CBRE and Client agree that any legal action or lawsuit by one party against the other party or its affiliates, officers, directors, employees, contractors, agents, or other representatives, whether based in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, relating to (a) this Agreement, (b) any Services or Reports under this Agreement or (c) any acts or conduct relating to such Services or Reports, shall be filed within two (2) years from the date of delivery to Client of the Report to which the claims or causes of action in the legal action or lawsuit relate. The time period stated in this section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the underlying claims, causes of action or damages.

27. Miscellaneous.
(a) This Agreement contains the entire agreement and understanding of the parties with respect to the subject matter hereof. This Agreement may not be amended, modified or discharged, nor may any of its terms be waived except by written agreement of both parties. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. A signed copy of this Agreement transmitted by facsimile, email, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Agreement for all purposes.
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(e) Any provision of this Agreement that, by its language, contemplates performance or observation subsequent to any termination or expiration of this Agreement shall survive such termination or expiration and shall continue in full force and effect.
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SPECIFIC PROPERTY DATA REQUEST
In order to complete this assignment under the terms outlined, CBRE, Inc., Valuation & Advisory Services, will require the following specific information for the property:

1. PLEASE NOTIFY US IMMEDIATELY IF ANY OTHER CBRE SERVICE LINE (INCLUDING CAPSTONE) IS INVOLVED IN THE BROKERAGE, FINANCING, INVESTMENT OR MANAGEMENT OF THIS ASSET.

2. Current title report and title holder name

3. Legal description

4. Survey and/or plat map

5. Site plan for proposed or entitled development, if applicable

6. Current county property tax assessment or tax bill

7. Details on any sale, contract, or listing of the property within the past three years

8. Planning/Zoning application or approval, if applicable

9. Any previous market/demand studies or appraisals

10. Name and telephone number of property contact for physical inspection and additional information needed during the appraisal process

11. Any other information that might be helpful in valuing this property If any of the requested data and information is not available, CBRE, Inc., reserves the right to extend the delivery date by the amount of time it takes to receive the requested information or make other arrangements. Please have the requested information delivered to the following:

Andrew G. Power, MAI, MRICS
Executive Vice President
[email protected]
CBRE, Inc.

Valuation & Advisory Services
400 South Hope Street, 25th Floor
Los Angeles, CA 90071
394
Addenda
Addendum E

PROFILES

CBRE VAS & CBRE HOTELS ADVISORY

SACRAMENTO, CA
Justin E. Schlageter, MAI
First Vice President
O +1 916 492 6994
M +1 530 400 1168
E [email protected]
CA Certified General Appraiser (AG037887)
NV Certified General Appraiser (A.0207983-CG)
Professional Experience
Justin E. Schlageter, MAI is a First Vice President of the Valuation & Advisory Services division of CBRE in their Sacramento office. Since 2002, Justin Schlageter has performed real estate appraisal and consulting assignments throughout California and Nevada, with an emphasis on lodging properties. He specializes in upper-upscale and luxury lodging facilities in resort areas like Lake Tahoe, Mammoth Lakes, Napa & Sonoma Counties, and other driveto leisure destinations in Northern California.

As part of CBRE’s National Hotel Valuation team, Justin has appraised and consulted on more than 200 lodging assignments within the past three years in California and Nevada.

These assignments included several institutional-grade lodging assets with individual property values exceeding $450 million, new construction/expansion/renovation developments, and hotels going through brand/flag transition and/or repositioning. Justin has also performed work on property tax appeal cases and provided expert witness testimony for litigation support.

In addition, Justin has over 20 years of experience appraising all other major property types of commercial real estate including entire residential subdivisions, retail, office (general and professional), industrial, multi-family, mobile home parks, RV parks, golf courses, and vacant land. Special-use experience includes educational facilities (schools), campgrounds (transient and summer), marinas, gas stations, self-storage facilities, cellular antennae, and event centers.

Achievements
• MAI Designated Member – Appraisal Institute; NorCal Chapter (#479925) • Expert Witness Testimony (Litigation Support, Property Tax Appeal) • UASFLA (Yellow Book) Appraisal Standards for Federal Land Acquisitions • Guest Speaker for Presentations on Northern California Hotel Markets Clients Represented
‒ The US Big Four Banks
‒ US Bank
‒ Bank of the West
‒ Cathay Bank
‒ East West Bank
‒ Bank of the Orient
‒ Bank of India (California)
‒ First Northern Bank
‒ Cornerstone Community Bank
‒ Tri Counties Bank
‒ Golden 1 Credit Union
‒ Yolo Federal Credit Union
‒ Bank of Hope
‒ Banner Bank
‒ Safe Credit Union
‒ Farmers & Merchants Bank
‒ Tech Credit Union
‒ Stanford University
Pro Affiliations /
Accreditations
‒ Appraisal Institute
Education
‒ BS, Psychology, UC Davis, 2001
396
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(LAKE TAHOE BLVD.)
(PER A/MAPS/35)
(PER A/MAPS/35)
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: February 25,
2025
Agenda Item #:12
Agenda Item: Update on Annual Road Rehabilitation Program and Drainage Replacements Executive Summary: As part of the Cityâ€™s Pavement Maintenance Plan, the City has developed an annual Road Rehabilitation Project in order to repair roads that have significant deterioration. The annual paving projects are compiled each year using the latest Pavement Condition Index (PCI) measurements, evaluating upcoming utility projects, considering staff knowledge of problem areas, and clustering projects to increase cost efficiency. The 2025 Road Rehabilitation project is centered on the Herbert Ave. / Walkup Rd. neighborhood. A main factor in this selection is the low PCIs in addition to recently completed STPUD water and sewer line replacements in this area. Other 2025 paving projects include roads within the Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase 1 and Pioneer Trail Pedestrian Improvements, Phase 2 areas. Additionally, there are many areas throughout that City that have existing degrading drainage infrastructure that is at or nearing the end of its useful life, under roads with low PCIs that should be considered for the annual road rehabilitation program. This presentation aims to focus on the drainage/flood relief and infrastructure maintenance components of the Cityâ€™s drainage in correlation with the annual road rehabilitation program. Staff proposes to expend the remainder of previously allocated drainage pipe replacement funding in the Herbert Ave. / Walkup Rd. area for a 2025 Drainage Replacement project ahead of the 2025 Road Rehabilitation project, and suggests an annual two-project program be funded to allow for: 1) an annual project of pipe replacements identified in the Condition Assessment Report as high-risk for failure; and 2) a separate annual project to address pipe replacement needs in the area of the road rehabilitation project.

Requested Action / Suggested Motions: Pass a Motion approving the 2025 Road Rehabilitation Program and drainage replacement plan.

Responsible Staff Member: Stephen Anderjack, Associate Civil Engineer and Brianna Greenlaw, Associate Civil Engineer
Reviewed and Approved By: Anush Nejad, Director of Public Works Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report - Road Rehab Drainage.docx
03-2022 Focused Condition Assessment Report.pdf
04-Aloha Basin.pdf
05 - Pavement Maintenance Toolbox.pdf
02 - 2025 Presentation.pptx
399
Council Agenda Report February 25, 2025 Page 1 of 6
City of South Lake Tahoe
Report to City Council
Meeting Date: February 25, 2025
Title: Annual Road Rehabilitation Program and Drainage Replacements Update Location: Citywide
Responsible Staff Member: Stephen Anderjack, Associate Civil Engineer (530) 542-6033; Brianna Greenlaw, Associate Civil Engineer (530) 542-6042 Background: As part of the City’s Pavement Maintenance Plan, the City has developed an annual Road Rehabilitation Project in order to repair roads that have significant deterioration. Currently, the City maintains the following roadway assets:
 Arterials: 17 lane miles (6.82%)
 Collectors: 43 lane miles (17.71%)
 Local Roads: 197 lane miles (75.47%)
The 2025 Road Rehabilitation project is centered on the Herbert Ave / Walkup Rd neighborhood.

A main factor in the selection of this area is the low PCIs (Pavement Condition Index) in the area.

PCIs rank pavement deterioration on a scale from 0-100 with 100 being the best. The PCIs in this neighborhood mainly range from the 20’s-40’s, and a large portion of the roads have not been paved in ~50 years. STPUD has also recently completed a water line and sewer line replacement project in the area in the 2024 construction season. They have restored their trench lines in the ROW per the Cities PIES. The 2” mill and overlay was not performed because the roadways were deteriorated beyond the point where a 2” mill and overlay would be practical. An In Lieu Fee Reimbursement was agreed upon by STPUD and the City to reimburse the City for STPUD’s required paving.

Drainage Improvements:

There are three main components/goals of the City’s drainage: 1) drainage/flood relief, 2) infrastructure maintenance, and 3) water quality. Most of the drainage systems and water quality improvements installed in the City have been funded through grants from federal and state sources focused on protecting the clarity of Lake Tahoe. Larger projects that meet all of these goals and are eligible for grant funding take many years to plan, design, secure funding, and implement. As staff works to plan drainage/flood relief and water quality projects, there are many areas throughout that City that have existing degrading drainage infrastructure that is at or nearing the end of its useful life, under roads with low PCIs that should be considered for the annual road rehabilitation program.

This report aims to focus on the 1) drainage/flood relief and 2) infrastructure maintenance components of the City’s drainage in correlation with the annual road rehabilitation program.

In April 2021, a Drainage Master Plan/Pipe Replacement Update was presented to City Council, discussing the need to develop a data-driven approach to storm drain repair and replacement.

The update recommended creating a systematic method to inventory, rank, and repair 400
Council Agenda Report February 25, 2025 Page 2 of 6
underground storm drainpipes, focusing on the highest risk infrastructure constructed of corrugated metal pipe (CMP). The City Council authorized the allocation of $35,000 (Resolution No. 2021-026) to fund a focused Condition Assessment of underground stormwater infrastructure.

The City hired Kayuga Solutions Inc. and partnered with Tahoe Resource Conservation District (TRCD) to develop a Citywide Storm Drainage System – Focused Condition Assessment Report (Attachment_03). The report has helped to inform and move the City towards a data-driven, proactive approach to managing infrastructure within a risk-based framework. In March 2022, the underground storm drainpipe condition assessment results were presented to City Council and funding was allocated to a high priority pipe replacement, the James and Eloise Avenue Drainage Maintenance Project ($150,000), drainage improvements such as drywells ($50,000), and for other drainage replacements city-wide ($250,000) during the mid-year budget adjustments. Since then, a total of $450,000 has been allocated for city-wide drainage replacements in 2023 and 2024.

Issue and Discussion:

Road Rehabilitation:

The annual paving projects are compiled each year using the latest PCI measurements, evaluating upcoming utility projects, considering staff knowledge of problem areas, and clustering projects to increase cost efficiency.

The three recommended paving rehabilitation projects scheduled for the 2025 season are as follows:

Tahoe Valley Greenbelt and Stormwater Improvement Project Ph I
Road Limits
F St Margaret Ave Bonanza Ave
Bonanza Ave F St B St
D St Emerald Bay Rd Julie Ln
Pioneer Trail Pedestrian Improvement Ph II
Road Limits
Pioneer Trail Larch Ave Ski Run Blvd
2025 Road Rehabilitation Project Base Bid
Road Limits
Herbert Ave Pioneer Trail Spruce Ave
Warr Rd Herbert Ave Walkup Rd
Red Lake Rd Herbert Ave Walkup Rd
Aloha Rd Herbert Ave Walkup Rd
Hobart Rd Herbert Ave Walkup Rd
Woodland Rd Herbert Ave Glenwood Way
Walkup Rd Pioneer Trail Woodland Rd
Apple St Janet Dr Walkup Rd
Gilmore Lake Rd Spruce Ave Woodland Rd
Susie Lake Rd Gilmore Lake Rd Woodland Rd
(continued next page)
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Council Agenda Report February 25, 2025 Page 3 of 6
2025 Road Rehabilitation Project Base Bid (continued)
Road

Limits
Angora Lake Rd Spruce Ave Woodland Rd
Champlain Dr Spruce Ave Herbert Ave
Victor St Lester St Glenwood Way
Lester St Victor St Lewis St
Eastern Sierra Engineering, Inc, and Lumos Associates were retained to evaluate and recommend pavement section analysis for the proposed roads in the 2025 road rehabilitation projects. They collected asphalt cores, test pits, and utilized Falling Weight Deflection (FWD) Testing. Their analysis of this data concluded that all local roads should be fully reconstructed using 4” Asphalt Concrete (AC) on 8” Aggregate Base (AB), while roads with higher Average Daily Traffic (ADT) and arterials should be reconstructed using 4” AC on 12” AB due to the increased traffic loading. Pioneer Trail is an example of a high ADT road.

The roadways mentioned above are proposed to be fully reconstructed. Based on their analysis and recommendation, a full pavement section reconstruction includes removing existing pavement, and adding 8-12” of base rock with a 4” asphalt overlay on top of the base rock. This repair method is needed because these roads were constructed without adequate base when they were originally built. Pavements installed with inadequate base will experience severe premature deterioration as there is no structural base for the pavement.

Drainage Improvements:

Of the total miles of roadways in the City, it is roughly estimated that 57% are lacking adequate drainage systems. In this context, “lacking drainage systems” means there is not sufficient existing drainage infrastructure (inlets, ditches, underground pipes and culverts) to prevent ponding of water on the roadways. When there is not sufficient drainage infrastructure, water will penetrate the subgrade of the roadway, causing freezing and thawing repeatedly. The expanding ice pushes the road surface up and weakens the subgrade when the ice melts, leading to cracks, potholes, and instability of the road structure. Based on previous capital improvement projects that include drainage systems and flood relief, it is estimated that to implement solutions to drain all miles of City roads, the cost would exceed $150 million.

Meanwhile, the City is also responsible for meeting the Lake Tahoe Total Maximum Daily Load (TMDL). Each year the City needs to receive a designated number of credits, evidencing that the implemented projects and maintenance practices are reducing sediment and nutrients carried in urban stormwater runoff to meet regional lake clarity goals.

As staff works to fund and implement capital improvement projects to meet both of these stormwater components/goals, there is existing infrastructure that has reached or is nearing the end of its useful life and needs replacement. The Condition Assessment Report identified that there are specific areas where pipe failures are most probable, specifically in the Tahoe Keys and in areas that pipes are frequently under lake level or within saturated stream environment zones (SEZ). Furthermore, at the time, the report identified there were 91 high-risk replacements that should be completed within the next five years.

Additionally, road rehabilitation over this existing infrastructure must continue on an annual basis.

Without a sound foundation with functional drainage, the City’s roads will not provide the expected 402
Council Agenda Report February 25, 2025 Page 4 of 6
longevity. To ensure the newly paved roads are not being cut into to replace drainage infrastructure when it fails in the near-term, an annual drainage replacement project should be considered prior to the road rehabilitation project, in addition to a separate pipe replacement project focusing on the high-risk needs identified in the report. Staff recommends implementation of pipe replacement prior to 2025 Road Rehab in the Herbert Ave -Walkup Rd area, which is anticipated to use up the remainder of the funding in the Drainage Pipe Replacement account ($457,276).

In addition, staff recommends the addition of the Aloha Basin (Attachment_04) drainage upgrade project. This project is one of the watershed improvement projects that is a part of the Bijou Park Creek Watershed Restoration Project, will include abandoning an existing pipe and installing two new pipes across Herbert Avenue, which is one of the roads included in the 2025 Road Rehab Project. This project is estimated to cost ~$315,000 and is currently unfunded; however, it would be beneficial for the City to implement this project prior to the 2025 Road Rehab Project.

The James and Eloise Drainage Maintenance Project is a drainage project that is focused on replacing a failing CMP pipe that spans from Emerald Bay Road to the Eloise Detention Basin.

The project has been split into two phases due to property acquisition challenges. The first phase has been completed and new pipe has been installed from Emerald Bay Road to James Avenue.

The second phase of the project involves installing the new drainage pipe from James Avenue to the Eloise detention basin. Staff is proposing to construct the second phase of the project in the 2025 season. This phase of the project is currentlyin design. The project is expected to cost ~$450,000 to construct and there is currently ~$200,000 of funding towards this phase of the project. This leaves ~$250,000 of the construction cost currently unfunded.

Financial Implications:

Road Rehabilitation:

Road rehabilitation will be funded from the Street Overlay Program CIP account (301-50005).

The account is funded by the Measure S Sales Tax fund, State Senate Bill 1 – RMRA Funding, and the utility In Lieu Fee Reimbursements.

Currently, the Street Overlay Account has a balance of $4,870,084.00 for Construction (Account 301-5005-48030). The STPUD In Lieu Fee Reimbursement of $319,416 is also expected to supplement the budget. Staff is recommending allocation of approximately $1.5 million for the pavement component of two construction projects in the 2025 construction season (Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase 1 and Pioneer Trail Pedestrian Improvement Project, Phase 2). This leaves a balance of $3,634,644.38 for the 2025 annual pavement program. The estimated cost for the recommended 2025 Road Rehabilitation Project is $3,600,000. This cost also includes contingency, materials testing, inspection services, and labor compliance, and leaves the available base bid construction budget to be ~$3,100,000. It is anticipated that the 2025 paving project will be awarded at the May 6, 2025 Council Meeting.

Tahoe Valley Ph 1 and Pioneer Trail Ped Improvement Ph II each have an estimated paving cost of $1,100,000 while the 2025 Road Rehab has an estimated construction cost of $3,100,000. This brings the total estimated paving cost of the 2025 season to approximately $5,300,000, which is within the available budget.

Drainage Improvements:

Staff recommends that City Council consider allocating $100,000 during the mid-year budget to 403
Council Agenda Report February 25, 2025 Page 5 of 6
allow for completion of drainage replacements before the 2025 Road Rehab Project and an additional $315,000 during the mid-year budget to fund the construction of the Aloha Basin as its construction should be sequenced prior to the 2025 Road Rehab Project.

In addition, staff recommends that City Council consider allocating $250,000 during the mid-year budget to the James and Eloise Drainage Maintenance Project, in order to enable construction of this project in the 2025 construction season.

As indicated by the Condition Assessment Report completed in 2022, there is an estimated annual long-term need of approximately $1.35 million for full pipe replacement over 20 years. Field surveys, completed in conjunction with the drainage inventory and risk assessment, found that there were many situations where the CMP was past the generally assumed lifespan, but the material appeared to be in fair or good condition depending on the location and site conditions. By extending the anticipated useful life of CMP, the average estimated repair and replacement need was reduced to $900,000 per year. Further looking at only the high-risk pipes that should be replaced within five years, there was an estimated need of $2.64 million, calculating out to $528,000 annually. This estimate included construction costs only, so it will likely require an estimated $610,000 per year for five years or $500,000 for six years to replace the pipes previously identified in the condition assessment as high-risk. Staff recommends allocating $500,000 to the Drainage Pipe Replacement account, annually for the next 6 years, to construct an annual project to address replacements of high-risk, failing pipes. This request will be submitted with the annual budget request for council consideration.

Additionally, pipes within annual road rehabilitation areas may not have been categorized as highrisk in the assessment report, but many culverts in the City are past or nearing their useful life and installed with inadequate cover. To ensure recently paved roads are not cut into to complete drainage replacements or compromised when culverts fail, the City must be proactive with these infrastructure replacements. It is estimated that completing necessary culvert replacements prior to the annual road rehabilitation projects will cost approximately $500,000 annually, depending on the location and size of the area. Staff recommends allocating another $500,000 annually for a second annual project to replace drainage infrastructure in the same area as the upcoming road rehabilitation project. This request will be submitted with the annual budget request for council consideration.

Environmental Considerations:

This plan update is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2).

Any future drainage maintenance or repair work will likely qualify for a CEQA Class 1 (§§ 15301 - repair or maintenance of existing facilities) exemption, Class 2 (§§ 15302 - replacement or reconstruction of existing structure or facilities), or Class 4 (§§ 15304 - minor alteration to land) Categorical Exemptions.

Policy Implications:

This plan update is consistent with the City’s Strategic Plan 2021-2026. It aligns with goal 1.4 Transportation, by planning the rehabilitation of City-owned streets. The plan update is also consistent with goal 5.3, Infrastructure and Maintenance. When underground drainage pipes fail, roads and property may be damaged and access can become limited due to public safety 404
Council Agenda Report February 25, 2025 Page 6 of 6
concerns. This plan update will achieve action item 1 by defining maintenance needs for the roadway network and existing drainage infrastructure while simultaneously matching the project to available funding sources such as Measure S, Road Maintenance and Rehabilitation Account (SB1 Gas Tax), in lieu paving funds from utility providers, and the Drainage Pipe Replacement Account. 405
February 2022406
407
Table of Contents
1 Introduction................................................................................................................................ 1

1.1 Project Approach ...............................................................................................................................2

1.2 Storm Drainage Asset Inventory........................................................................................................3 2 Business Risk Exposure............................................................................................................... 5

2.1 Probability of Failure..........................................................................................................................5

2.2 Consequence of Failure .....................................................................................................................6

2.3 BRE Matrix .......................................................................................................................................10 3 Inspection Plan ......................................................................................................................... 11

3.1 Condition Rating System..................................................................................................................12

3.2 Additional Data Collection...............................................................................................................14

3.3 Field Inspection Pipe List .................................................................................................................15 4 Focused Condition Assessment................................................................................................ 17

4.1 Condition Assessment Results.........................................................................................................17

4.2 Updated Asset Inventory .................................................................................................................18

4.3 Adjusted Useful Life.........................................................................................................................18 5 Storm Drain Replacement Outlook .......................................................................................... 22

5.1 Storm Drain Replacement Cost .......................................................................................................22

5.2 Management Strategy .....................................................................................................................23

5.3 Risk Profile .......................................................................................................................................24

5.4 Cost Projection.................................................................................................................................25 6 Recommendations.................................................................................................................... 30 List of Figures
Figure 1 Project Approach ............................................................................................................................2 Figure 2 Installation Profile...........................................................................................................................3 Figure 3 City of South Lake Tahoe Storm Drainage Pipes.............................................................................4 Figure 4 Business Risk Exposure ...................................................................................................................5 Figure 5 BRE Matrix.....................................................................................................................................10 Figure 6 Inspection Plan Methodology .......................................................................................................11 Figure 7 Pipes Selected for Field Inspection ...............................................................................................16 Figure 8 Hot Spot Area Map........................................................................................................................19 Figure 9 Kaplan-Meier Survival Curve.........................................................................................................20 Figure 10 Decay Curves...............................................................................................................................20 Figure 11 Total Storm Drainage Pipe Replacement Cost............................................................................23 Figure 12 BRE Matrix with Asset Count and Replacement Cost.................................................................24 408
Figure 13 Risk Map......................................................................................................................................25 Figure 14 20-Year Pipe Replacement Outlook............................................................................................26 List of Tables
Table 1 Initial Asset Inventory by Pipe Material and Installation Year .....................................................3 Table 2 Probability of Failure and Remaining Useful Life..........................................................................6 Table 3 CoF Criteria and weight ................................................................................................................6 Table 4 CoF Scores by Pipe Size.................................................................................................................7 Table 5 CoF Scores by Road Class..............................................................................................................7 Table 6 CoF Scores by General Zoning Area..............................................................................................7 Table 7 CoF Scores by Specific Zoning Area ..............................................................................................8 Table 8 CoF Scores by Critical Facilities.....................................................................................................9 Table 9 CoF Scores by Catchment Area.....................................................................................................9 Table 10 CoF Scores by Stream Environmental Zone..............................................................................10 Table 11 Condition Rating Score and Estimated Time to Failure............................................................12 Table 12 Condition Rating System for CMP Pipes...................................................................................13 Table 13 Additional Data Collection........................................................................................................14 Table 14 Field Inspection Pipe List ..........................................................................................................15 Table 15 Condition Assessment Results by Pipe Materials.....................................................................17 Table 16 Updated Asset Inventory..........................................................................................................18 Table 17 Unit Cost by Pipe Diameter ......................................................................................................22 Table 18 Potential Useful Life by Pipe Material and Location ................................................................23 Table 19 5-Year Pipe Replacement Needs ..............................................................................................26 Table 20 5-Year Pipe Replacement List...................................................................................................27 409
1 1 Introduction
The City of South Lake Tahoe (City) manages over 34 miles of storm drainage pipes of varying material and diameter. Historically, many of the drainage and water quality improvements installed within the City since incorporation in 1965 have been funded through grants from federal and state sources focused on protecting the clarity of Lake Tahoe. However, the goals of storm drainage improvement should also include providing flood prevention, reducing damage to roadways and private property, and improving neighborhoods and the quality of life for residents. To address this, the City needs a deeper understanding of the current condition of its storm drainage infrastructure, the risk of asset failure, and associated investment needs to maintain the level of service.

The City believes significant portions of the City’s storm drainage infrastructure are aging well past the expected lifespan of the pipe material. Through this study, the City wants to achieve the following goals:
• Review and evaluate the existing GIS data gaps with City staff • Develop a consistent method for classifying the condition of underground pipes by material (RCP, HDPE, CMP/SRP)
• Develop a consistent approach to field condition assessment to fill in critical data gaps • Develop a framework for risk-based prioritization of replacing/repairing aging pipes considering environmental constraints within the Lake Tahoe basin
• Develop short- and long-term replacement need projections for storm drainage pipes This report is organized into six sections:

1. Introduction – Background and purpose of the report

2. Business Risk Exposure – Risk assessment methodology

3. Inspection Plan – Condition rating system and targeted pipes for field inspection

4. Focused Condition Assessment – The results of field inspection and condition assessment and adjustment of pipe useful life

5. Storm Drain Replacement Outlook – Life cycle cost analysis for short- and long-term storm drainage pipe replacement projection

6. Recommendations – Continuous improvement effort to improve data quality and cost projection accuracy
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2 1.1 Project Approach
The overall project approach is based on development of a custom Business Risk Exposure (BRE) methodology for focused condition assessment prioritization. The initial results of the BRE model will prioritize the targeted field inspection and condition assessment efforts. The results will be used to project the timing of storm drain replacement projects. For optimum data visualization and interpretation, Kayuga will utilize IRIS, a cloud-based asset management system, to model pipe deterioration and risk profile. IRIS utilizes asset information from GIS (and other data sources), combined with management strategy (e.g., useful life assumptions), condition scores, cost, and BRE information to generate prioritized replacement and rehabilitation needs.

The following image shows the dataflow between GIS, BRE model, condition assessment program, and IRIS.

Figure 1 Project Approach
The BRE model will be created based on the asset data compiled from available GIS layers and other related sources. The initial BRE results, combined with data gap assessment will be utilized to prioritize the field inspection and condition assessment. Existing and new asset data, along with field inspection results will be uploaded into IRIS. Once data has been configured in IRIS, the City will have the ability to view and filter asset information in a tabular format, BRE matrix, or map. The BRE matrix will classify the assets based on PoF and CoF scores. Next, replacement cost and management strategy will be assigned and the life cycle cost analysis will be performed. The result is a year-by-year projection of pipe replacement needs.
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3 1.2 Storm Drainage Asset Inventory
The initial summary of storm drainage asset inventory was developed based on the City’s GIS layer, which is comprised of over 34 miles of drainage pipes. The following figure shows the installation profile of the City’s storm drainage pipes. The oldest of these pipes were installed in the 1960s, with major development in 1969 and 1970. After that, the City installed very little pipe until 1988, and has continued to install pipes since then.

Figure 2 Installation Profile
Overall, the most common pipe material is CMP (36.0%), followed by HDPE and RCP. The material is unknown for about 21% of the pipes. The following table summarizes the City’s initial asset inventory.

Table 1 Initial Asset Inventory by Pipe Material and Installation Year Decade CMP HDPE RCP Unknown Total (%)
1960-1969 10,078.3 559.5 282.9 14,852.1 14.3%
1970-1979 14,876.9 560.3 8.6%
1980-1989 11,420.2 281.6 4,851.4 8,582.2 14.0%
1990-1999 26,086.8 3,750.6 756.2 6,397.7 20.6%
2000-2009 1,929.1 21,127.1 18,124.6 4,817.5 25.6%
2010-2019 1,931.6 25,421.9 396.7 2,736.2 17.0%
Total (Ft) 66,322.9 51,701.0 24,411.8 37,385.7
Total (%) 36.9% 28.8% 13.6% 20.8%
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4 The following figure shows the IRIS map interface for the City’s storm drainage pipes.

Figure 3 City of South Lake Tahoe Storm Drainage Pipes
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5 2 Business Risk Exposure
Business Risk Exposure (BRE) is a product of probability of failure (PoF) and consequence of failure (CoF).

PoF provides an understanding of the timing to failure while the CoF measures the impact of asset failure. The relationship between BRE, PoF and CoF and sample of their associated criteria is shown the figure below.

Figure 4 Business Risk Exposure
Understanding the BRE profile of the assets provides the following benefits:
• Identify critical assets with the greatest risk to the City, the public, and the environment • Prioritize assets for further investigation (e.g., condition assessment) • Prioritize assets for replacement or rehabilitation under limited resources

2.1 Probability of Failure
The PoF provides an understanding of the timing to failure. Ideally, the PoF determination should consider all failure modes relevant to stormwater pipe (i.e., physical mortality, capacity, and level of service). Physical mortality failure mode is related to all physical deficiencies of the pipe, such as corrosion issues, floor damage, and roof collapse, and will be varied depending on pipe materials. A pipe is consider failed due to capacity failure modes if its existing hydraulic capacity do not meet the current design criteria (e.g., pipe is in good condition but does not meet 25-year storm requirements). The level of service failure mode happens when the current pipes do not meet the current regulatory or environmental requirements. For example, a storm drain that brings a high amount of sediment to a body of water may no longer meet the level of service standard. The PoF criteria will dictate the information that needs to be collected during the field inspection.

Specifically for this study, the PoF analysis will be determined solely based on physical mortality. It was assumed that CMP pipes have a 40-year useful life while RCP and HDPE pipes have a 100-year useful life.

The following table provides an age based PoF estimate in relation to the remaining useful life. 414
6 Table 2 Probability of Failure and Remaining Useful Life Probability of Failure Remaining Useful Life (RUL)

0.1 RUL ≥ 90%

0.2 80% ≤ RUL ≤ 90%

0.3 70% ≤ RUL ≤ 80%

0.4 60% ≤ RUL ≤ 70%

0.5 50% ≤ RUL ≤ 60%

0.6 40% ≤ RUL ≤ 50%

0.7 30% ≤ RUL ≤ 40%

0.8 20% ≤ RUL ≤ 30%

0.9 10% ≤ RUL ≤ 20%
1 0% ≤ RUL ≤ 10%

2.2 Consequence of Failure
The CoF provides the measurement of magnitude of impact of the asset failure. The CoF criteria and the associated weight are presented in the following table. Location is a very significant factor in determining the CoF of each pipe. Among the seven CoF criteria, pipe size and road class account for 60% of the overall weight.

Table 3 CoF Criteria and weight
CoF Criteria Weight
Pipe Size 30%
Road Class 30%
Zoning – Area Plan Statements 5%
Zoning – Plan Areas 10%
Critical Facilities 10%
Environmentally Sensitive Areas - Catchment 10%
Environmentally Sensitive Areas - SEZ 5%
The following section describes the significance of each CoF criteria for in determining the impact of failure of storm drain pipes.

2.2.1 Pipe Size
The greater the size of the asset, the greater the consequence of failure (e.g., flooding impact, social and environmental disturbances). The source of this analysis is the Drainage_Pipe GIS layer. It was determined that pipes with diameter larger than 24” are deemed the most critical (high consequence of failure). When the pipe size is unknown, size will be estimated based on neighboring pipes or similar 415
7 zoning (e.g., most common diameter within the zone type). The following table shows the CoF score for each of the pipe size range.

Table 4 CoF Scores by Pipe Size
Pipe Size Score
Diameter > 24” 5
Diameter 18” up to 24” 4
Diameter 12” up to 18” 3
Less than 12” 1

2.2.2 Road Class
This criterion is used to determine additional economic and social impacts associated with asset failures relative to road class, such as traffic disruption and detours. The bigger the road, the higher volume of traffic, and the higher the social and economic impact of failure. The source of this analysis is the Street_Centerline GIS layer. The buffer applied from the road centerline (half of full width of road) is used to identify pipes that are within proximity of each road class. It was determined that pipes located near Highway and Evacuation Routes are deemed the most critical (high consequence of failure). The following table shows the CoF score for each road class.

Table 5 CoF Scores by Road Class
Road Class/Category Buffer from Centerline (ft) Score
Highway 75 5
Evacuation Routes (Arterial) 50 5
Arterial 50 4
Collector 35 3
Local/Minor 30 2

2.2.3 General Zoning
This criterion measures the social and economic impact on the community based on the general zoning designation provided in the PlanAreaStatements GIS layer. For example, pipe failure within a commercial zoning area will have a greater social and economic impact compared to failure in a residential area. The table below shows the CoF score for each area plan statement zones.

Table 6 CoF Scores by General Zoning Area
Area Plan Statement Zone Score
Commercial 5
Tourist 4
Recreation 4
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8 Area Plan Statement Zone Score
Residential 3
CONS (Conservation) 1

2.2.4 Specific Zoning
This criterion measures the social and economic impact on the community based on the specific zoning designation provided in the Area_Plans GIS layer. Among all designated zones, Town Center Core and Tourist Center are deemed the most critical. The table below shows the CoF score for each plan area zones.

Table 7 CoF Scores by Specific Zoning Area
Plan Area Zone Score
Town Center Core 5
Tourist Center 5
Town Center Neighborhood Professional 4
Town Center Mixed-Use Corridor 4
Town Center Health-Care 4
Tourist Center Neighborhood Mixed-Use 4
Tourist Center Mixed-Use Corridor 4
Tourist Center Mixed-Use 4
Recreation 4
Commercial Mixed-Use Services 4
Town Center Gateway 3
Tourist Center Gateway 3
Open Space -

2.2.5 Critical Facilities
This criterion measures the social impact of pipes failure based on its proximity to the City’s facilities.

There are 35 City’s facilities considered as listed in CityFacilities and Parcel GIS layers. Among them, fire station, police station, hospital, and school were deemed the most critical. The following table shows the CoF score by proximity to each one of the City’s facilities. 417
9 Table 8 CoF Scores by Critical Facilities
Facility Name Score Facility Name Score
Fire Station 5 Rec Center Park 4
Police Station 5 Fuel Island - Abandoned 4
Hospital 5 Golf Pro Shop 4
School 5 Golf yard Barn 4
City Services Center 4 Museum 4
Motor Pool 4 Public Works Office 4
Motor Pool Cinder Barn 4 Bijou Park Food and RR 4
Carpenter Shop 4 Lakeview Commons Food and RR 4
Rufus Allen Corp Yard 4 LTVA 4
STAGE Washing Facility 4 Senior Center 4
STAGE Bus Building 1 4 Art League 4
STAGE Bus Building 2 4 Fire Training and Parks Offices 4 Rec Center 4 Bijou Pump House 4
Ice Arena 4 Parks Offices 4
Explore Tahoe Transit Center 4 Parks Supervisor Office 4 Parking Garage 4 CGBTL 4
Redevelopment Admin Finance Vendors 4 Boat Ramp Kiosk and Restroom 4 Sign Shop 4

2.2.6 Environmentally Sensitive Areas – Catchment
This criterion measures the environmental impact of pipe failure based on watershed area with direct exposure to open water. Pipes located in the area with 100% discharge to the lake are deemed the most critical. This analysis utilized the Catchments GIS layer. The following table shows the CoF score by different level of discharge.

Table 9 CoF Scores by Catchment Area
Catchment Score
100% discharge to the lake 5
50% discharge to the lake 4
20% discharge to the lake 1
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10 2.2.7 Environmentally Sensitive Areas – Stream Environmental Zone This criterion measures the environmental impact of pipe failure based on its location within the Stream Environmental Zone (SEZ). A buffer of 100 ft was used to capture pipes that are outside an SEZ, but still discharge stormwater to the SEZ. This analysis utilized the Lake Tahoe Basin Stream Environment Zone GIS layer. The following table summarizes the CoF score related to Stream Environmental Zone.

Table 10 CoF Scores by Stream Environmental Zone
Stream Environmental Zone Score
Yes 5
No 0

2.3 BRE Matrix
The BRE matrix provides a visual representation of the risk profile of individual assets. The x axis represents the consequence of failure while the y axis represents the probability of failure. Combined, the two scores represent a coordinate where the asset is positioned in the BRE matrix. Each cell in the BRE matrix has been assigned a High, Medium, or Low BRE rating, which is represented by different colors. For example, High BRE is represented in red and includes assets with PoF ≥ 0.9 (failed assets or assets nearing failure) as well as assets with PoF ≥ 0.9 with high impact of failure (CoF ≥ 4). Medium BRE is represented in yellow, and Low BRE is represented in green. The following figure shows the BRE matrix used for the City’s drainage pipe.

Figure 5 BRE Matrix
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11 3 Inspection Plan
In order to get a better understanding of the current condition of the assets, the City performed field inspection and condition assessment for selected storm drainage pipes. Considering the limited resources and time available (i.e., inspection must take place before the wet winter season), only a small percentage of the existing pipes could be covered in the inspection. To get a representative sample of the citywide pipes, the combination of BRE score (high risk pipes) and zoning (i.e., plan area statement) was used in the selection process. From the initial list, field inspection was prioritized for CMP pipes with known access (e.g., manhole, inlet). Additionally, pipes with missing attributes were also prioritized in the final selection to improve the data quality of the asset inventory database. Finally, pipe density by plan area statement is considered to maintain proportional representation of sample by location. The following figure shows the pipe selection process.

Figure 6 Inspection Plan Methodology
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12 3.1 Condition Rating System
A condition rating system was developed to provide guidance for a consistent condition assessment result. This condition rating system focuses on the assessment of structural integrity of the pipes. The rating system uses a 1 to 5 scoring system where 1 represents a new or excellent pipe condition and 5 represents a pipe with significant defects or in failed condition. An additional score 0 was used to mark pipes that were not accessible during field inspection.

The following table shows the Condition Rating System used in the field inspection.

Table 11 Condition Rating Score and Estimated Time to Failure Score Name Estimated Time to Failure
0 Not Accessible
1 New/Excellent Not in foreseeable future
2 Good 10 – 20 years
3 Fair 5 – 10 years
4 Poor Within 5 years
5 Failed (Significant defects) Needs immediate action
Each pipe was inspected visually to identify any sign of defects. The types of possible defects include the following:
• Pitting/Rusting – Small pits are visible in the surface of the pipe. If metal, rusted but still solid.

Concrete has exposed aggregate
• Spalling/Flaking – Loss of material as flat chips of concrete are lost from asset’s surface, or if metal, flakes of rust are falling away.
• Cracks – Describe crack severity: Not Visible (no crack), Crack (cracked), Fracture (broken), or Displaced (fractured with offset pieces)
• Holes – Hole goes completely through the asset’s material • Deformation – Asset’s shape is distorted or ovaled. Describe in inspection comment. • Infiltration – Evidence that soil or water is seeping into pipe • Piping – Water is flowing along the outside of pipe, which causes loss of soil in roadbed (void in road).
• Separated Apron – Describe which end(s) of pipe has a separated apron, where the joints between the apron and first pipe section may be allowing soil to filter through to cause an Inslope Cavity
• Inslope Cavity – A cavity or hole in the inslope of the roadway above an apron or pipe joint.

Usually found in areas where joint separation has occurred.

The following table summarizes the defect indicators for each condition rating score. In order to capture the varying degree of failed pipes for further prioritization, condition score 5 is broken down into 5a, 5b, and 5c. Condition score 5c represents failed pipes that require the most immediate action. 421
13 Table 12 Condition Rating System for CMP Pipes
Score Name Description
1 New/Excellent
• Discoloration of surface
• Galvanizing intact
• No rust or pitting
2 Good • Some galvanizing gone from invert
• Rust starting to develop
• Deformation less than 5% of original diameter
• Pipe is lined and in good condition
3 Fair • Galvanizing gone from invert
• Pitting, superficial rust or tight rust flakes
• Deformation less than 10% of original diameter
• Pipe is lined and in good condition
4 Poor • Flaking rust evident, some loss of wall thickness • Hole less than 1 inch in size
• Deformation, deflection or distortion visible, 10 to 15% of diameter
• Can poke a hole in pipe with a sharp point or a hammer pick strike
• Inslope Cavity – Infiltration of soil into the pipe from road inslope (embankment)
• Infiltration of soil into pipe may be causing loss of fill beneath road surface
• Erosion has undermined apron or pipe
• Apron is separated from pipe or needs replacement
5a Failed-A • Many small holes less than 1 inch size
• Severe deformation greater than 15-20% of diameter
• Cracks or tears
• Joints separated
• Misalignment
• Can poke a hole in pipe with a blunt rod
• Piping or Road Void – Pipe condition is causing soil loss beneath road surface
5b Failed-B • Hole 1 inch or greater
• Severe deformation greater than 20% of diameter
• Cracks or tears
• Joints separated
• Misalignment
• Can poke a hole in pipe with a blunt rod
• Piping or Road Void – Pipe condition is causing soil loss beneath road surface
5c Failed-C • Bottom gone
• Collapsed section
• Cracks or tears
• Joints separated
• Misalignment
• Can poke a hole in pipe with a blunt rod
• Piping or Road Void – Pipe condition is causing soil loss beneath road surface
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14 3.2 Additional Data Collection
To maximize the benefits of the field inspection, the scope was expanded to include confirming basic pipe attributes (e.g., size, material) and identifying any operational or maintenance conditions of the pipes. The latter includes the identification of access points and required maintenance related to erosion, sedimentation, debris, standing water, and excessive vegetation. The summary of additional data to be collected during field inspection is summarized in the table below.

Table 13 Additional Data Collection
No. Type Data Field
1 Pipe Attributes
• Pipe Material
• Pipe Diameter
• Pipe Shape
• Ownership (e.g., City of South Lake Tahoe, Caltrans,
County)
2 Access Point
• Access Structure Type (e.g., inlet, manhole, downstream) • Downstream structure (e.g., none, apron, headwall)
• Condition of downstream structure (Good, Other-Describe the issue (e.g., separated from pipe, cracked, covered by sediment/debris)
• Access Structure Location (e.g., middle of the road, within ROW, open space, private property)
• Quality of Access (e.g., no issues, trail is available, no trail, access through gate, other-specify)
• Traffic Control Needed (Yes/No)
3 Maintenance
Condition
• Sign of Erosion or loss of soil around pipe
• Sediment (Yes/No. If Yes, describe type of sediment and how much, i.e., (% of pipe height & how many feet down
the pipe)
• Debris (Yes/No. If Yes, describe type of debris and how much, i.e., (% of pipe height & how many feet down the
pipe)
• Standing Water (Yes/No. If Yes, how much, i.e., (% of pipe height & how many feet down the pipe)
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15 3.3 Field Inspection Pipe List
The field inspection was planned for 100 pipe segments. These pipes are CMP pipes with known access, high BRE score, and located in diverse areas within the city limits. The following table summarizes the selected pipes by their location.

Table 14 Field Inspection Pipe List
Area Count Area Count
SLT - AL TAHOE 2 SLT - LAKESIDE PARK 3
SLT - AL TAHOE SA#1 3 SLT - LAKEVIEW HEIGHTS 3
SLT - BIJOU 1 SLT - PIONEER VILLAGE 4
SLT - BIJOU MEADOWS 5 SLT - PIONEER/SKI RUN 1
SLT - BIJOU PINES 4 SLT - SIERRA TRACT COMMERCIAL 2
SLT - BIJOU PINES SA#1 1 SLT - SIERRA TRACT SA#1 2
SLT - BIJOU/AL TAHOE 7 SLT - TAHOE ISLAND 5
SLT - BONANZA 7 SLT - TAHOE KEYS 15
SLT - BONANZA SA#2 7 SLT - TAHOE KEYS SA#1 2
SLT - GARDNER MOUNTAIN 1 SLT - TAHOE KEYS SA#2 4
SLT - GLENWOOD 2 SLT - TAHOE VALLEY AREA PLAN 5
SLT - HIGHLAND WOODS 8 SLT - TOURIST CORE AREA PLAN 3
SLT - HIGHLAND WOODS SA#1 1 SLT - WINNEMUCCA 1
SLT - LAKE VIEW HEIGHTS SA#1 1 Total 100
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16 The following figure shows the location of the pipes selected for field inspection and condition assessment.

Figure 7 Pipes Selected for Field Inspection
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17 4 Focused Condition Assessment
This section summarizes the results of field inspection and condition assessment of the City’s storm drainage pipes. The field inspection was started on the second week of October 2021 and continued until early December 2021. Taking advantage of the late arrival of winter weather, the scope of field inspection was expanded to more than double the initial 100 pipes to be inspected. The following sections describe the overall results of the field inspections and the updated useful life estimate based on the new condition assessment data.

4.1 Condition Assessment Results
The total number of pipe segments inspected is 220 segments. This number accounts for about 10% of pipes in the inventory. Overall, the field inspection found 33 pipes with condition score 5 (failed or significant defects). The majority of the pipes (152 segments) are in condition score 3 or better. The field inspection also identifies prior pipe replacements that had not been recorded. For example, there are 13 CMP pipe segments that have been replaced with HDPE pipes. It also found several CMP pipes that were partially replaced with HDPE or RCP pipes.

The following table provides the detailed distribution of the condition assessment result by pipe material.

Table 15 Condition Assessment Results by Pipe Materials Condition Score CMP HDPE RCP CMP/HDPE CMP/RCP
Condition 1
Condition 2 4 12 18
Condition 3 107 1 8 2
Condition 4 34 1
Condition 5a 17
Condition 5b 9
Condition 5c 7
In addition to providing the structural condition assessment result above, the field inspection also improved the overall data quality by making the following data attribute corrections:
• 45 material updates
• 28 size updates
• 5 install year updates (confirmed with as-built drawing) • 27 assumed install year updates (i.e., when as-built drawing is not available, HDPE pipe was assumed installed in 1994)
• 1 pipe not owned by the City
• 25 pipes that need GIS corrections
The field inspection also documented the following operational conditions requiring maintenance activity:
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18 • 12 pipes have sediment issues
• 7 pipes have standing water issues
• 9 pipes have roots, leaves, or pine needles
• 3 pipes have vegetation issues at inlet

4.2 Updated Asset Inventory
Following the field inspection, the IRIS asset register was uploaded with the new updated attributes.

Condition assessment activity and scores are also recorded in IRIS for future reference. The new condition score will replace an age-based projection with condition-based projection for better accuracy. The new asset inventory also includes the updated material based on field verification or assumed material based on neighboring pipe for pipes that were of unknown material in the original dataset.

The following table summarizes the updated asset inventory.

Table 16 Updated Asset Inventory
Decade CMP HDPE RCP CMP/HDPE CMP/RCP
1960-1969 21,193.7 563.7 3,873.8 65.3
1970-1979 14,461.9 918.7 9.9 46.8
1980-1989 19,387.7 508.0 4851.4 173.9
1990-1999 32,484.5 3,750.6 756.2
2000-2009 1,929.1 21,132.3 22,982.6
2010-2019 1,866.3 28,318.2 447.6
Total 91,323.2 55,191.4 33,095.4 112.1 173.9

4.3 Adjusted Useful Life
The main purpose of the field inspection was to gather the current condition of the CMP pipes, identify hot spot areas with high concentrations of failing pipes, and determine a more realistic useful life estimate. After reviewing the condition assessment results, two patterns of pipe deterioration were identified. These two patterns are hot spot areas and non-hot spot areas.

4.3.1 Hot Spot Areas
There are 3 major areas (or 6 plan areas) considered hot spot areas. This includes Tahoe Keys, Highland Woods, and Lakeside Park. The following figure shows the location of the hot spot areas. 427
19 Figure 8 Hot Spot Area Map
The hot spot areas currently have 199 CMP pipes installed in 1969-1970. In the Tahoe Keys are alone, there are 171 CMP pipe segments installed in 1970. Among these pipes, 146 segments (85%) were inspected and 31 segments (18%) are considered failed. To model the useful life for the for the hot spot areas, a survival analysis using the Kaplan-Meir method was performed. Using this method, the median survival time is a commonly reported summary statistic for the useful life for the pipes in the population.

The following figure shows the survival probability against time. Based on this curve, the median survival age is 56 years. As such, it is recommended for the useful life estimate for CMP pipes located in the hot spot areas to be updated from 40 years to 56 years.
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20 Figure 9 Kaplan-Meier Survival Curve

4.3.2 Non-Hot Spot Areas
For the non-hot spot areas, a different method was utilized. The expected useful life is determined by fitting the average age and condition score on a selected decay curve. For pipe deterioration, the late decay curve with shape factor 1.5 is utilized. The following figure shows the decay curves among the varying shape factors.

Figure 10 Decay Curves
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21 Using the selected decay curve, pipes with condition score 3 are assumed to have consumed 73% of their useful lives. Based on the field inspection, the average age of all pipes with condition score 3 is 52 years. The estimated useful life based on the selected decay curve is 71 years. As such, it is recommended for the useful life estimate for CMP pipes located in the non-hot spot areas to be updated from 40 years to 70 years.

The updated useful life for CMP pipes was then used to create a location-based management strategy in IRIS database.
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22 5 Storm Drain Replacement Outlook
This section summarizes the short- and long-terms replacement outlook for the City’s storm drainage pipes. The future cost projection is calculated using life cycle cost analysis in IRIS. All assets in the inventory are assigned a unit cost according to their sizes and a management strategy based on their material and location (i.e., hot spot area, non-hot spot area). The following section provides a detailed description of the unit costing, management strategies, and the results of the life cycle cost analysis.

5.1 Storm Drain Replacement Cost
As the City plans for replacement of the failing storm drainage pipes, an estimated replacement cost can provide the City with an initial cost estimation required to properly budget for the replacement. It should be noted that the estimated replacement cost does not represent a CIP project cost. Additional soft costs related to planning, design, permitting, and project management are not included.

The main source of pipe replacement unit cost is the City’s past replacement records, supplemented by biding history from El Dorado County. When the two cost sources contradict each other, the City’s costs are used. Any outliers (cost too high or too low) are ignored. When the cost reference was not available for a certain pipe diameter, an interpolation and cost estimate from other cities in California was used.

All unit cost information is only for contractor cost.

The following table lists the unit cost per linear foot by pipe diameter. This unit cost is also recorded in the IRIS database for future reference and modeling purposes.

Table 17 Unit Cost by Pipe Diameter
Pipe Diameter Unit Cost (per LF) Pipe Diameter Unit Cost (per LF) 4 Inch $150.00 29 Inch $450.00
6 Inch $150.00 30 Inch $470.00
7 Inch $150.00 36 Inch $560.00
8 Inch $150.00 42 Inch $628.00
12 Inch $175.00 43 Inch $650.00
15 Inch $210.00 48 Inch $724.00
17 Inch $240.00 51 Inch $773.00
18 Inch $280.00 52 Inch $800.00
21 Inch $300.00 57 Inch $872.00
22 Inch $330.00 58 Inch $900.00
24 Inch $355.00 60 Inch $922.00
27 Inch $370.00 68 Inch $1,025.00
28 Inch $400.00 148 Inch $3,000.00
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23 Based on the unit cost information above, the total replacement cost for the City’s 34 miles of storm drainage pipes with varying diameter is over $58 million. The following figure shows the total replacement cost and the distribution among pipe materials.

Figure 11 Total Storm Drainage Pipe Replacement Cost

5.2 Management Strategy
An important element of the life cycle cost process is the concept of management strategy. A management strategy is the logic or set of rules used to help characterize the life cycle behavior and needs of each asset. Specifically for the City’s storm drainage pipes, the management strategies will only include pipe replacement at the end of the potential useful life. Based on the analysis of condition assessment data, the following table shows the potential useful life based on material (i.e., RCP, HDPE, and CMP) and location (e.g., hot spot areas). RCP and HDPE pipes are assigned a 100-year useful life.

CMP pipes will have a 70-year useful life, except those in hot spot areas which will have a shorter useful life of 56 years.

Table 18 Potential Useful Life by Pipe Material and Location Material Potential Useful Life (Years)
RCP Pipes 100
HDPE Pipes 100
CMP in Hot Spots 56
CMP Pipes 70
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24 5.3 Risk Profile
The following figure shows the risk profile for City’s storm drainage pipes. Overall, there are 91 pipe segments with total replacement cost of $2.64 million considered as high-risk. This account for 4.5% of the total replacement of pipe in the inventory., There are 284 pipe segments ($7.41 million) in the medium-risk category. The majority (82.9%) of the City’s pipes are in low-risk category.

Figure 12 BRE Matrix with Asset Count and Replacement Cost The following figure shows the location of the City’s storm drainage pipes color coded by risk level. As confirmed by the field inspections, the high-risk pipes are concentrated in the Tahoe Keys, Highland Woods, and Lakeside Park.
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25 Figure 13 Risk Map

5.4 Cost Projection
Life cycle cost calculation can be very tedious and time consuming. It is especially difficult when the calculations need to be performed for thousands of assets, year-by-year, asset-by-asset. For this reason, Kayuga developed an asset management tool, IRIS (Infrastructure Reinvestment Intelligence System), that incorporates the developed asset register and performs the life cycle cost and risk assessment work. IRIS will use the City’s asset register and management strategies to calculate a life cycle cost for each asset.

The following figure shows the 20-year cost projection for the City’s storm drainage pipe replacement.

The 20-year average of pipe replacement need is $1.35 million annually. 434
26 Figure 14 20-Year Pipe Replacement Outlook
Looking into the short-term (5-year) outlook, the City is facing a total of $2.64 million for pipe replacement. This represents the 91 high-risk pipes shown in the risk matrix (Section 5.3). The following table shows the details of breakdown of the pipes by the year of replacement. There are 46 pipe segments that are currently failed (PoF=1) and need to be replaced right away. Another 45 pipe segments still have a little life left but should be replaced in the next two or three years.

Table 19 5-Year Pipe Replacement Needs
Year of
Replacement Current PoF BRE Rating Pipe Count Total Estimated Replacement Cost 2023 1 High 46 $1,086,717.61
2025 0.95 High 30 $1,311,674.63
2026 0.93 High 15 $242,722.19
Total 91 $2,641,114.42
The following table shows the list of the pipes due for replacement in the next 5 years. 435
27 Table 20 5-Year Pipe Replacement List
Year of
Replacement Asset Id Location Pipe Diameter
Pipe
Length (ft) Replacement Cost
2023 6148-552 SLT - HIGHLAND WOODS SA#1 8 Inch 48.54 $7,281.23 2023 5550-532 SLT - TAHOE KEYS 12 Inch 154.67 $27,066.41 2023 5599-393 SLT - TAHOE KEYS 12 Inch 119.36 $20,888.49 2023 5540-522 SLT - TAHOE KEYS SA#2 12 Inch 22.28 $3,899.03 2023 227-1610 SLT - TAHOE KEYS 60 Inch 25.78 $23,769.05 2023 5624-26 SLT - TAHOE KEYS 58 Inch 28.05 $25,249.33
2023 5597-391 SLT - TAHOE KEYS 12 Inch 132.00 $23,099.98 2023 5545-527 SLT - TAHOE KEYS 12 Inch 156.33 $27,357.50 2023 5625-27 SLT - TAHOE KEYS 12 Inch 134.44 $23,527.17 2023 5617-19 SLT - TAHOE KEYS 12 Inch 128.05 $22,408.31 2023 5619-21 SLT - TAHOE KEYS 12 Inch 118.74 $20,779.53 2023 5661-63 SLT - TAHOE KEYS 12 Inch 55.00 $9,625.01
2023 5663-65 SLT - TAHOE KEYS 12 Inch 125.00 $21,875.03 2023 5647-49 SLT - TAHOE KEYS 12 Inch 150.00 $26,249.99 2023 5649-51 SLT - TAHOE KEYS 12 Inch 158.44 $27,726.80 2023 5651-53 SLT - TAHOE KEYS 12 Inch 153.06 $26,784.98 2023 5587-381 SLT - TAHOE KEYS 12 Inch 108.73 $19,026.88 2023 5635-37 SLT - TAHOE KEYS 12 Inch 103.61 $18,131.06 2023 5541-523 SLT - TAHOE KEYS 12 Inch 105.85 $18,524.54 2023 5634-36 SLT - TAHOE KEYS 48 Inch 18.02 $13,047.58
2023 5529-511 SLT - TAHOE KEYS SA#2 12 Inch 78.85 $13,798.66 2023 5591-385 SLT - TAHOE KEYS 12 Inch 104.22 $18,239.28 2023 5600-394 SLT - TAHOE KEYS 12 Inch 90.51 $15,839.62 2023 5643-45 SLT - TAHOE KEYS 12 Inch 129.69 $22,696.35 2023 213-1596 SLT - TAHOE KEYS 12 Inch 88.49 $15,485.12 2023 5604-7 SLT - TAHOE KEYS 12 Inch 115.34 $20,183.73
2023 5608-11 SLT - TAHOE KEYS 12 Inch 121.10 $21,193.01 2023 5610-13 SLT - TAHOE KEYS 12 Inch 115.31 $20,178.88 2023 5551-533 SLT - TAHOE KEYS 12 Inch 114.60 $20,054.96 2023 5553-535 SLT - TAHOE KEYS 12 Inch 95.62 $16,732.83 2023 5555-537 SLT - TAHOE KEYS 12 Inch 155.00 $27,125.02 2023 5560-542 SLT - TAHOE KEYS 12 Inch 110.67 $19,366.85 2023 5538-520 SLT - TAHOE KEYS SA#2 18 Inch 133.54 $37,389.99 2023 5633-35 SLT - TAHOE KEYS 52 Inch 38.01 $30,406.83
2023 5639-41 SLT - TAHOE KEYS 68 Inch 29.40 $30,133.90
2023 5640-42 SLT - TAHOE KEYS 68 Inch 31.26 $32,042.12
2023 5531-513 SLT - TAHOE KEYS SA#2 18 Inch 65.34 $18,294.96 2023 5532-514 SLT - TAHOE KEYS SA#2 18 Inch 326.79 $91,501.09 436
28 Year of
Replacement Asset Id Location Pipe Diameter
Pipe
Length (ft) Replacement Cost
2023 5895-283 SLT - LAKEVIEW HEIGHTS 18 Inch 40.49 $11,336.02 2023 5886-275 SLT - LAKE VIEW HEIGHTS SA#1 18 Inch 137.53 $38,508.33 2023 5480-780 SLT - TAHOE ISLAND 18 Inch 125.00 $34,999.96 2023 5681-83 SLT - TAHOE ISLAND 24 Inch 117.09 $41,568.50 2023 548-1822 SLT - TOURIST CORE AREA PLAN 18 Inch 11.19 $3,133.27 2023 5844-233 SLT - BIJOU MEADOWS 24 Inch 82.25 $29,198.38 2023 39-1545 SLT - BIJOU/AL TAHOE 12 Inch 176.78 $30,935.94 2023 729-2010 SLT - LAKESIDE PARK 18 Inch 71.63 $20,056.09 2025 6117-347 SLT - HIGHLAND WOODS 18 Inch 35.72 $10,002.02 2025 6115-345 SLT - HIGHLAND WOODS 18 Inch 49.56 $13,876.89 2025 6114-344 SLT - HIGHLAND WOODS 18 Inch 10.87 $3,043.36 2025 6116-346 SLT - HIGHLAND WOODS 18 Inch 188.26 $52,714.01 2025 5797-189 SLT - LAKESIDE PARK 18 Inch 71.59 $20,045.42 2025 6131-573 SLT - HIGHLAND WOODS 18 Inch 55.51 $15,544.19 2025 6132-574 SLT - HIGHLAND WOODS 18 Inch 40.55 $11,353.45 2025 6133-575 SLT - HIGHLAND WOODS 18 Inch 60.07 $16,818.37 2025 6122-352 SLT - HIGHLAND WOODS 18 Inch 25.21 $7,060.04 2025 6123-353 SLT - HIGHLAND WOODS 18 Inch 50.16 $14,045.98 2025 6124-354 SLT - HIGHLAND WOODS 18 Inch 185.10 $51,828.46 2025 6125-355 SLT - HIGHLAND WOODS 18 Inch 159.32 $44,609.56 2025 6126-356 SLT - HIGHLAND WOODS 18 Inch 150.79 $42,220.81 2025 6127-569 SLT - HIGHLAND WOODS 18 Inch 25.67 $7,187.66 2025 6128-570 SLT - HIGHLAND WOODS 18 Inch 34.41 $9,635.68 2025 6129-571 SLT - HIGHLAND WOODS 18 Inch 145.75 $40,810.01 2025 6135-577 SLT - HIGHLAND WOODS 18 Inch 61.21 $17,137.63 2025 6136-578 SLT - HIGHLAND WOODS 18 Inch 177.86 $49,799.97 2025 6137-579 SLT - HIGHLAND WOODS 18 Inch 42.41 $11,873.76 2025 6138-580 SLT - HIGHLAND WOODS 18 Inch 246.55 $69,033.29 2025 6139-581 SLT - HIGHLAND WOODS 18 Inch 228.68 $64,029.31 2025 6140-582 SLT - HIGHLAND WOODS 18 Inch 38.55 $10,795.13 2025 6141-545 SLT - HIGHLAND WOODS 18 Inch 61.89 $17,328.43 2025 6142-546 SLT - HIGHLAND WOODS 18 Inch 112.28 $31,437.17 2025 6143-547 SLT - HIGHLAND WOODS 18 Inch 18.07 $5,059.47 2025 6144-548 SLT - HIGHLAND WOODS 18 Inch 187.23 $52,423.96 2025 6145-549 SLT - HIGHLAND WOODS 18 Inch 12.47 $3,490.67 2025 6146-550 SLT - HIGHLAND WOODS 18 Inch 222.44 $62,282.90 2025 6119-349 SLT - HIGHLAND WOODS 18 Inch 221.56 $62,035.88 2025 5800-192 SLT - LAKESIDE PARK 36 Inch 882.41 $494,151.14 2026 5533-515 SLT - TAHOE KEYS SA#2 18 Inch 123.39 $34,548.24 437
29 Year of
Replacement Asset Id Location Pipe Diameter
Pipe
Length (ft) Replacement Cost
2026 5534-516 SLT - TAHOE KEYS SA#2 18 Inch 155.85 $43,637.98 2026 6210-808 SLT - TAHOE KEYS 12 Inch 20.49 $3,585.14
2026 6211-809 SLT - TAHOE KEYS 12 Inch 37.35 $6,535.95
2026 6212-810 SLT - TAHOE KEYS 12 Inch 83.07 $14,537.45 2026 6213-811 SLT - TAHOE KEYS 12 Inch 34.87 $6,101.48
2026 5670-72 SLT - TAHOE KEYS 12 Inch 46.90 $8,207.70
2026 5671-73 SLT - TAHOE KEYS 12 Inch 145.86 $25,525.79 2026 5674-76 SLT - TAHOE KEYS 12 Inch 37.65 $6,587.97
2026 5675-77 SLT - TAHOE KEYS 12 Inch 157.00 $27,474.99 2026 5676-78 SLT - TAHOE KEYS 12 Inch 32.51 $5,688.55
2026 5641-43 SLT - TAHOE KEYS 12 Inch 130.00 $22,749.97 2026 5556-538 SLT - TAHOE KEYS 12 Inch 58.90 $10,306.65 2026 5557-539 SLT - TAHOE KEYS 12 Inch 31.25 $5,468.36
2026 5558-540 SLT - TAHOE KEYS 12 Inch 124.38 $21,765.96 Total 9,773.21 $2,641,114.42
438
30 6 Recommendations
It is important for the City to continue the asset management program for the storm drainage pipes.

This project is only the start and continuous efforts are needed to improve the quality of asset database and maintain the accuracy of the annual cost projection. Expanding the field inspection program to the remaining storm drainage pipes in the City’s inventory is recommended. This program will not only provide a current condition of the pipes, but will also improve the overall data quality by completing missing attributes and correcting alignment issues. As part of the continuous improvement efforts, the following are recommended.
• Maintain the GIS as the system of record for the storm drainage system by keeping the data up to date. Any feedback or correction from field condition assessment or as built drawing should be incorporated in timely manner. Pipe segments with two different materials (portion of pipe has been replaced) should be redrawn as separate segments to preserve the accuracy of the pipe attributes (i.e., length, material, install year). • Keep condition assessment and pipe replacement records to continuously update the life cycle cost model and to refresh annual cost projection. The City will have continue to have access to IRIS database, free of charge, until October 2022. With IRIS, the City will be able to monitor and track progress of its condition assessment program and the R&R projection will be updated real time.
• Consider including new asset classes (e.g., storm drainage structures, structural BMPs, nonstructural BMPs) in the IRIS database for more complete cost projection. Additional storm water quality programs (e.g., monitoring program, catch basin cleaning, channel maintenance) can also be added and tracked in IRIS.
439
±1,800 SF 3:1 VEGETATED BASIN 11" PONDING DEPTH 850 CF PONDING VOL. MAX PONDING EL=6286.9 MAX CUT=30" BOT.=6286.0 MIN. 12" FREEBOARD DECOMMISSION EX. 12" SD PIPE EX. 6" SS, ±7' DEEP INSTALL DI CONNECT W/ EX. STORM DRAIN RIM=6289.2 IE=6287.2 DECOMMISSION ±60 LF OF EX. SD PIPE DOWNSTREAM OF NEW DI FLARED END SECTION OUTLET TO ROCK DISSIPATOR IE(OUT)=6287.0 INSTALL 45 LF 12" RCP S=0.005 FT/FT INSTALL 80 LF 12" RCP S=0.005 FT/FT INSTALL FLARED END SECTION AND ROCK DISSIPATOR AT OUTFALL IE(OUT)=6286.1 HERBERT AVE.

ALOHA RD. EX. SSMH RIM=6288.9 IE=6281.4 PROJECT LIMIT
RED LAKE RD. EX. CURB AND GUTTER EX. CURB AND GUTTER EX. BIKE PATH DAYLIGHT LINE (TYP.) TRPA BAILEY LAND CAPABILITY LINE (TYP.) CLASS 1b CLASS 6 CLASS 1b CLASS 5 APN 025-191-009 CTC APN 025-192-008 CTC APN 025-192-007 CTC APN 025-191-010 CTC APN 025-510-085 CTC APN 025-510-087 CTC APN 025-510-002 MAINTAIN MIN. 5' BUFFER FROM GRADING DAYLIGHT TO EX. BIKE PATH 1% GRADE LOW FLOW CHANNEL FROM INLET TO OUTLET. S=0.0025 FT/FT SLOPE BASIN 1% TOWARDS LOW-FLOW CHANNEL FD 1" IP FD 2x2 EX. ADA RAMP EX. ADA RAMP EX. DI RIM=6287.6 IE=6285.3GRADE ±110 LF VEGETATED CHANNEL BEGINNING AT DI MIN. S=0.01 FT/FT PROPOSED CTC SOUTH TAHOE GREENWAY PROJECT AREA 6291 6290 6289 6290 6288 OVERFLOW DI (SD-54) W/ TRASH RACK RIM=6286.9 IE(OUT)=6286.5 SUMP=6285.0 1D4 2D4 3D4 4D4 3D3 5D5 1D4 1D4 2D4 3D4 4D4 3D5 3D5 2D9 1D4 2D9 6286 62876288 PROPERTY LINE (TYP.)INSTALL ROCK ARMOR WHERE CURB AND GUTTER OUTFALLS TO BASIN INSTALL SILT FENCE OR FIBER ROLL DOWNHILL OF GRADING ±50 LF INSTALL SILT FENCE OR FIBER ROLL AND CONSTRUCTION LIMIT FENCE DOWNHILL OF GRADING ±100 LF INSTALL CONSTRUCTION LIMIT FENCE AROUND BASIN FOOTPRINT TO PROTECT TREES ±120 LF INSTALL DI PROTECTION 1D10 3D11 1D11 2D11 2D11 3D11 1D11 0 SCALE IN FEET 20 40 KEY MAP: NOTES: 1. CONSTRUCTION STAGING TO OCCUR WITHIN AREA OF DISTURBANCE PRIOR TO BASIN EXCAVATION, THE HERBERT ROAD R.O.W. AND/OR IN THE SKI RUN BLVD. R.O.W. SOUTH OF SADDLE ROAD. NO STAGING SHALL INTERFERE WITH THE USE OF THE EX. BIKE PATH. 2. SEE DETAIL 1, SHEET R-2 FOR STORMWATER BASIN REVEGETATION. 2/7/2024 PJ/PJ CHECKED DESIGNED/DRAWN SCALE PROJECT SHEET DATE AS INDICATED BIJOU PARK CREEK CB

WILDSCAPE ENGINEERING
1901 Lisa Maloff Way, Suite 108
South Lake Tahoe, CA 96150
www.wildscape-engineering.com

BIJOU PARK CREEK WATERSHED

RESTORATION PROJECT
ALOHA BASIN 90% PLANS - NOT FOR CONSTRUCTION C1-1
6 OF 34
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City of South Lake Tahoe
Pavement Maintenance and Repair Toolbox
January 2025
Prepared for:

CITY OF SOUTH LAKE TAHOE
1740 D Street
South Lake Tahoe, CA
96150
441
Prepared by:

LUMOS & ASSOCIATES, INC.
950 Sandhill Rd, Suite 100
Reno, NV 89521
(775) 827-6111
442
Pavement Maintenance and Repair Toolbox
City of South Lake Tahoe
January 2025
Prepared for:

Public Works Department,
City of South Lake Tahoe
1740 D Street
South Lake Tahoe, CA 96150
Prepared by:

Brian Harer
Senior Project Manager
Chris Lillo
Assistant Project Manager
LUMOS & ASSOCIATES, INC.
950 Sandhill Rd, Suite 100
Reno, NV 89521
(775) 827-6111
January 9, 2025
443
Pavement Maintenance and Repair Toolbox
City of South Lake Tahoe
January 2025

SUMMARY OF FINDINGS
• The 2022 Pavement Management Services Pavement Condition Report, prepared for the City by Data Transfer Solutions, LLC, has determined that the current overall Network average PCI (Network PCI) of the City’s paved street assets is 55. This PCI value indicates a “Poor” overall Network condition, as defined per method ASTM D6433-20.

RECOMMENDATION SUMMARY
• The City should continue to update their pavement condition database to reflect current conditions of the pavement system as accurately as possible. Recommendations for additional pavement condition database improvements are as follows:
o Continue to estimate and input construction dates for streets which do not currently reflect this data.
o Group roads together (PCI Family Models) in accordance with their anticipated traffic volumes; developing different PCI Family Models will allow the owner to prioritize maintenance based on traffic needs.
o Continue to update pavement condition database as road projects are completed; this includes completion of Capital Improvement Projects and other centerline miles of roadway dedicated to and adopted by the City upon completion of Improvements.
o Continue to perform PCI inspections and input into the database at least every (3) years. Frequency of pavement condition surveys should be adapted to include:
inspection of new, rehabilitated and/or reconstructed pavement sections added to the system and exclusion of recently treated street sections as part of the 3-year pavement condition survey process.
• The City should continue to perform pavement repairs associated with minor stop- gap maintenance. Unplanned or emergency work that may impact safety of the roadway user should be addressed immediately. In the event of an unscheduled pavement section being identified as needing maintenance beyond simple repairs, the management section will be added to the annual PMP project as stop-gap maintenance, or completed as part of a separate contract if necessary. Temporary repairs should be completed in the interim between identifying the potential safety impact and a construction of a more permanent solution.
• The City should strive to maintain a 5- to 7-year cycle for preventive (and corrective where appropriate) maintenance treatments of eligible pavement management sections. • The City should continue to identify, evaluate and implement where practicable, alternate maintenance treatments to accommodate new construction techniques and technologies, as appropriate.
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PAVEMENT CONDITION CATEGORIES
Applying the appropriate maintenance treatment at the correct time slows deterioration and extends the life of the pavement. Typically, a PCI of 70 (good condition) is used as a critical level when determining whether a roadway should receive preventative maintenance or more costly corrective or rehabilitative maintenance. If preventive maintenance is delayed, the cost to repair the road increases as it may require corrective maintenance or rehabilitative measures.

Treatments are generally not conducted on pavement management sections with a PCI exceeding

90. The City’s average network PCI is currently estimated to be in “Poor” condition. After analyzing PCI in the 2022 Pavement Management Services Pavement Condition Report, Lumos has determined the critical threshold for preventive maintenance to be an approximate PCI value of 55; meaning that preventive maintenance of pavement management sections with a PCI value ranging from 55 to 90 should, in general, be prioritized over management sections with a PCI less than 55 or more than 90. Applying preventive maintenance treatments to management sections with a PCI outside of the critical range is likely to provide little benefit in extending the service life of the existing roadway.

1. PCI 100-86, Condition Category I
Pavement sections in this Condition Category are considered to be in “Good” condition and are typically newly constructed or resurfaced with few signs of distress. These roadways generally require minimal preventive maintenance treatment. Maintenance in this category may include crack sealing or fog seals.

2. PCI 85-71, Condition Category II
Pavement sections in this Condition Category are considered to be in “Satisfactory” condition and are typically newer or previously maintained with minor signs of distress. These roadways generally require moderate preventive maintenance treatment. Maintenance in this category may include crack sealing, fog seals, shallow pavement patching and slurry/micro surfacing to prevent early pavement oxidation or weathering.

3. PCI 70-56, Condition Category III
Pavement sections in this category are considered to be in “Fair” condition. Typical age of pavement within this category is approximately 5-10 years old. These roads generally experience both non-load related (such as weathering and raveling) and load related (such as alligator cracking) distress types, and may begin to show minor signs of structural and non-structural distress. Treatments assigned to non-load and load related distresses are distinctly different; corresponding costs between the (2) subcategories vary. Preventive maintenance recommended for roads in this category may include crack sealing, surface sealing, chip sealing, cape sealing, shallow pavement patching for surface level distresses and localized deep patching repairs of load related distresses.
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Pavement Maintenance and Repair Toolbox
City of South Lake Tahoe
January 2025

4. PCI 55-41, Condition Category IV
Pavement sections in this category are considered to be in “Poor” condition and experience more moderate to high severity of distresses. At this point in the pavement life cycle, it is imperative tomake repairs to roads because the rate of deterioration is greatly increased once the PCI drops below the critical level and maintenance alone will not be sufficient to repair. Crack sealing, surface sealing and shallow patching will typically not be effective treatments for more severe distresses. A Cape Seal, which is a chip seal topped with slurry seal, with localized patching may be an effective treatment in certain circumstances. Reconstruction with a surface treatment is recommended for Arterial and Collector streets, while reconstruction is recommended for residential roadways.

5. PCI 40-26, Condition Category V
Pavement sections in this category are considered to be in “Very Poor” condition and experience high severity of distresses. At this point in the pavement life cycle, it is imperative tomake major repairs to roads because the rate of deterioration is greatly increased once the PCI drops well below the critical level beyond standard condition to repair. Crack sealing, surface sealing and shallow patching will typically not be effective treatments for distresses of this condition. Full reconstruction with a surface treatment is recommended for Arterial, Collector and Residential streets.

6. PCI 25-11, Condition Category VI
Pavement sections in this category are in “Serious” condition, and are at the end of their service lives. These roadways will require reconstruction or full depth reclamation, which is typically the most costly treatment type that may be assigned to pavement sections within the network.

7. PCI 10-0, Condition Category VII
Pavement sections in this category are in “Failed” condition, and are at the end of their service lives.

These roadways will require full depth reclamation including asphalt surface and underlying base material, possibly including subgrade. This the most costly treatment type that may be assigned to pavement sections within the network.

M&R STRATEGIES AND REPAIR TECHNIQUES
Selecting an appropriate treatment type based on pavement management section condition is essential to an effective Pavement Management Plan. Factors considered when determining these techniques include: types of pavement distress, age, condition, traffic levels, expected future plans and available funding. Pavement Maintenance Methods are discussed below.

1. Crack Seal
Crack seal is a flexible, polymer-modified, rubberized asphalt blend that adheres to the edges of 446
Pavement Maintenance and Repair Toolbox
City of South Lake Tahoe
January 2025
existing cracks and fills in the voids. When dried, crack seal provides a barrier that prevents water and incompressible material from infiltrating the pavement structure. Crack seal is a long- term, cost-effective way to maintain and extend the life of the pavement. Although it does not significantly increase section PCI, it generally helps to postpone major maintenance treatments.

Crack seal should be completed with and at the midpoint between preventive maintenance treatments.

2. Surface Seal
A surface seal, also known as a fog seal, is the application of asphalt and/or aggregate to a pavement surface with the intent to improve or protect the surface characteristics of the roadway.

In general, surface seal coats help to: improve chip retention, prevent raveling, fill small cracks and surface voids, and provide a waterproof layer that protects the pavement structure. Surface seals can provide improvements to distresses of minor cracking and alligator cracking. Minor raveling may be adequately sealed with a surface seal, thereby preventing further deterioration.

No structural benefit is generally developed through placement of surface seals.

3. Slurry and Micro Seal
A slurry seal is a mixture of fine aggregate, asphalt emulsion, water, and mineral filler. The mineral filler most often used is Portland cement. A slurry seal acts as a wearing surface and seals the existing asphalt surface. Slurry seals are used to: seal the existing asphalt pavement surface, slow surface raveling, seal small cracks, and improve surface friction. Slurry seals can be placed in areas where chip seals would not be a good choice due to high traffic volume, such as intersections, signaled and stop areas, and business areas (in these instances, a double micro or double slurry may be more appropriate). These seals can be placed in areas where pavement and ambient temperatures are as low as 50 degrees Fahrenheit. Slurry seals should not be placed at night, and by design are intended to be a single stone thick application. In the event that application during the night or cold temperatures is required, the use of a standard slurry seal may not be permissible. Micro sealing uses a chemical break and may be placed in cooler conditions, as low as 40 degrees Fahrenheit. Micro seals can give more structural support than slurry seals and may be used on pavements exhibiting more severe distresses. A double slurry or double micro seal is another acceptable form of maintenance in which the roadway is coated a second time after the first application has dried. The double seal application is utilized when roads are anticipated to experience a heavier traffic loading, or where more severe distresses occur and a single coat would not be sufficient.

4. Chip Seal
Generally, alligator cracking or more general cracking can be repaired in a cost effective manner by chip seals. In cases where raveling progresses to the point of affecting ride quality, a thin overlay, (pre-leveling), followed by a chip seal might be needed. A chip seal is a single spray application, usually of liquid or emulsified asphalt followed by a single layer of aggregate. This type of seal reduces the infiltration of air and water into the pavement and may be used to improve skid resistance of slippery pavements. In heavy snow environments chip seals may not be an ideal option, although it can provide traction in the inclement weather, the use of plows to clear snow and ice from the roadway can significantly displace and remove the chip aggregate. 447
Pavement Maintenance and Repair Toolbox
City of South Lake Tahoe
January 2025

5. Cape Seal
Cape seal consists of a chip seal that is overlaid with a micro-surface to resurface the roadway.

Generally, a cape seal is a good option when a chip seal or micro-surface alone does not alleviate the roadway distresses. Cape seals are more durable than a micro-surface and have a reduced aggregate loss compared to a chip seal. Typically cape seals are a good choice for areas with heavy traffic volumes providing the benefits of chip seal as well as micro-surfacing including sealing minor cracks, providing skid resistance, reducing the infiltration of air and water into the pavement protecting it from oxidation and raveling. Cape seals can be a successful option in heavy snow environments. The underlying chip seal can restore roadway traction during sever weather and the overlaying micro-surface protects the aggregate from being removed by snow plows.

6. Shallow Pavement Patch
Shallow pavement patching restores structural integrity and improves ride quality by replacing the top one-third of the distressed asphalt with a patch. Repairs of partially deteriorated sections of pavement will improve the overall quality without the expense of a full depth patch. Shallow pavement patching is typically used where pavement deterioration is confined to the top onethird asphalt concrete portion of the pavement section and when the existing substructure and bottom pavement section has not been compromised. Shallow pavement patching is the recommended repair for raveling, bleeding, and minor alligator cracking.

7. Full Depth Pavement Patch
When a pavement surface has failed from sub-soil issues or severe distresses, the entire pavement section will typically need to be replaced. Full depth replacement consists of pulverizing the entire depth of pavement and possibly replacing the substructure if compromised. If damage is due to underlying soils, unsuitable soils are removed and replaced with structural material. Full depth pavement patch is recommended for more severe alligator cracking, rutting, swelling and depressions.

8. Micro-Mill
A micro-mill removes the top 3/8” -1” of the roadway surface. This treatment is used in eliminating surface level distresses. This process can provide protection to the pavement structure, reduce the rate of pavement deterioration, reduce permeability, correct surface deficiencies and improve ride quality. Typically micro-mill applications are used when roadway deficiencies do not penetrate the entire depth of the roadway section. Overlay applications following a micro-mill include micro-surfacing, chip seal and cape seal. Pitting, surface cracking, weathering and oxidation are typical failures where overlay can be effective by quickly and effectively restoring the surface.
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Pavement Maintenance and Repair Toolbox
City of South Lake Tahoe
January 2025

9. Mill and Overlay
An overlay is a layer of hot mixed aggregates and asphalt binder. Overlays are used to: provide protection to the pavement structure, reduce the rate of pavement deterioration, reduce permeability, correct surface deficiencies, improve ride quality and add strength to the existing pavement structure. Overlay patches are generally applied when an area is too large to be economically repaired by hand with a small crew. Roads are typically milled down to at least onethird the pavement thickness and then a pavement overlay is applied. The overlay, which uses hot plant-mix asphalt, also has the advantage of setting quickly. Typically, pavement overlays are applied in areas of pavement failure or wear problems rather than areas with a base or subgrade problems. Pitting, surface cracking, weathering and oxidation are typical failures where overlay can be effective by quickly and effectively restoring the surface.

10. Reconstruction
Reconstruction consists of removing the existing pavement and replacing it with a new pavement, typically in a similar alignment as the existing pavement. This process may utilize either new or recycled material incorporated into the build materials, which are then used for the reconstruction of the complete pavement section. Pavement reconstruction is required when a pavement has either failed or has become functionally obsolete.

Table 1: Treatment Based on Condition Category
Category Application
Interval (Yrs.) Treatment Detail
Category I (GOOD) - SEAL
CRACKS 3
Crack Seal, Fog Seal
Category II
(SATISFACTORY) -
PREVENT MNT 1
5-7 Crack Seal, Shallow Patching, Slurry Seal (Type III) Category III (FAIR) -
PREVENT MNT 2
5-7 Crack Seal, Shallow Patching, Full Depth Patching,
Micro-mill, Slurry Seal (Type III), Chip Seal, Cape Seal Category IV (POOR) -
CORRECT MNT 1
-
Full Depth Patching, 2" Mill and Overlay, Cape Seal, Micromill Category V (VERY POOR) -
REHAB - Reconstruction
Category VI (SERIOUS) -
RECON - Reconstruction/Full Depth Reconstruction
Category VII (FAILED) – FDR
- Full Depth Reconstruction including Base Material
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Table 2: M&R Treatment Option Cost
Treatment Cost
Crack Seal $0.70/sy
Surface Seal (Fog Seal) $1.40/sy
Slurry and Micro Seal $2.70/sy
Chip Seal $5.30/sy
Cape Seal $8.00/sy
Shallow Pavement Patch $64.00/sy
Full Depth Pavement Patch $117.00/sy
Micro-Mill $7.40/sy
Mill and Overlay $49.50/sy
Reconstruction $130.00/sy
450
City Council Meeting
February 25, 2025
Annual Road Rehabilitation &
Drainage Replacements
451
Topics of Discussion
• General Roadway Information
• Pavement Maintenance Plan
• Planning a Road Rehab Project
• 2025 and 2026 Paving Projects
• In House Paving
• City Drainage Overview
• Drainage & Pavement Correlation
• Ongoing Drainage Replacement
• 2025 and Beyond Drainage Replacement Projects
452 2
General Roadway Information
• 257 lane miles of roadways owned by the City
• 8 lane miles fully reconstructed in the last 6 years
• 22 lane miles rehabilitated in the last 6 years
3 Roadway Classification Lane Miles Example Roadways
Arterial 17 Pioneer Trail, Al Tahoe
Collectors 43 Tahoe Keys, Glenwood
Residential 197 Idaho, Walkup
Total 257
453
City Streets PCI Map
4 Good
Fair
Poor
Failed
50 25
0 Minor Overlays
Major
Overlays
75 100
Maintenance
Reconstruction
Good 31%
Poor 37%
Failed 10%
2022 City PCI Rating: 57 Avg
Fair 22%
454
Accelerated Deterioration Factors
5 • Freeze Thaw Cycle
• Heavy Use of Plows/Graders
• Heavy Use of Vehicle Chains
• Lack of Adequate Drainage
• Lack of Pavement Base
Infrastructure issues
that should be
addressed
Issues arising
from Tahoe’s
alpine climate
455
Required Range of Pavement Rehab
City of South Lake Tahoe CIP Presentation (March 4, 2024) 6 456
Planning a Road Rehab Project
7 Factors Taken Into Consideration
• PCI of potential roads
• Average Daily Traffic (ADT) of potential
roads
• Grouping of roads with low PCI’s.

Additional contractor mobilizations cost
~$30,000 each.
• Upcoming projects (Utility, City, Private…)
• Equity, we try to pave different areas of the
City each year
Annual Budget
• State SB–1 – RMRA Funding ~$500,000
• Measure S Funding $2,500,000-
$3,000,000
• Utility In Lieu Paving Fees Variable
457
Recommended 2025 Paving Projects
Current Budget: $5.3 million
Walkup Neighborhood: $3.1 million
8 2025 Road Rehabilitation Project Base Bid
Road Limits
Herbert Ave Pioneer Trail Spruce Ave
Warr Rd Herbert Ave Walkup Rd
Red Lake Rd Herbert Ave Walkup Rd
Aloha Rd Herbert Ave Walkup Rd
Hobart Rd Herbert Ave Walkup Rd
Woodland Rd Herbert Ave Glenwood Way
Walkup Rd Pioneer Trail Woodland Rd
Apple St Janet Dr Walkup Rd
Gilmore Lake Rd Spruce Ave Woodland Rd
Susie Lake Rd Gilmore Lake Rd Woodland Rd
Angora Lake Rd Spruce Ave Woodland Rd
Champlain Dr Spruce Ave Herbert Ave
Victor St Lester St Glenwood Way
Lester St Victor St Lewis St 458
Walkup Area
Insert Map
City of South Lake Tahoe CIP Presentation (March 4, 2024) 9 459
Recommended 2025 Paving Projects
Current Budget: $5.3 million
Tahoe Valley Green Belt – Phase 1 Neighborhood: $1.1 million 10 Tahoe Valley Greenbelt and Stormwater Improvement Project Ph I Road Limits
F St Margaret Ave Bonanza Ave
Bonanza Ave F St B St
D St Emerald Bay Rd Julie Ln
460
Tahoe Valley Greenbelt
Insert Map
City of South Lake Tahoe CIP Presentation (March 4, 2024) 11461 Recommended 2025 Paving Projects
Current Budget: $5.3 million
Pioneer Trail – Phase 2: $1.1 million
12 Pioneer Trail Pedestrian Improvement Ph II
Road Limits
Pioneer Trail Larch Ave Ski Run Blvd
462
Pioneer Trail
Insert Map
City of South Lake Tahoe CIP Presentation (March 4, 2024) 463 13 Potential 2026 Road Rehab Projects
Expected Budget: $2,500,000 Measure S, $500,000 SB-1, plus utility In Lieu Fees: ~$3.5 million
Proposed Options for 2026 Road Rehabilitation Projects
• James/Eloise Neighborhood: Varies depending on limits • Johnson Blvd – 1.5” Overlay - $700,000
• Heavenly Village Way: $650,000
• Palmira Avenue: $640,000
• Rufus Allen Blvd: $400,000
• Lisa Maloff Way: $600,000
• Pavement Sealing Program: $ 1,000,000
14464
In House Paving 2024 (Craig Ave)
15 In-House paving can supplement annual Road Rehab Program, but is dependent on additional resources
465
City Drainage Overview
16 Drainage and
Flood Relief
Water
Quality
Infrastructure
Maintenance
466
17 Drainage and
Flood Relief
Water
Quality
Infrastructure
Maintenance
467
Drainage & Pavement Correlation
18468
Drainage & Pavement Correlation
19 Intersection of Sierra Blvd &
Elwood Ave - BEFORE
Sierra Blvd Complete Streets
completed 2020 - AFTER
469
Ongoing Drainage Replacement
20 Drainage and
Flood Relief
Water
Quality
Infrastructure
Maintenance
470
21 Estimated Age of Existing CMP
471
Pipe Replacement Cost
22 $18,498,435
$28,629,428
$11,549,214
Total Existing Pipe Replacement Cost – over $58M
High Risk Pipes (91)
$? .? ? ?
? ? ? ? ??
=
$528,000 + 15% for soft
costs, annually for 5
years
472
Proposed 2025 Drainage Replacement Projects
23 Project Recommended
Funding
Budget
Cycle
2025 Road Rehab
Drainage Replacement
$100,000 MidYear
Aloha Basin
construction (in 2025
Road Rehab area)
$315,000 MidYear
James/Eloise Drainage
Replacement Project
$250,000 MidYear
473
Proposed 2026 and Beyond Annual Pipe Replacement Projects 24 Hot Spot Areas Identified in
the Assessment Report
Project Estimated Cost
Annual High-Risk Pipe
Replacement Project
(Tahoe Keys – Potential
2026 Pipe Replacement
Project)
$500,000 annually over 6yr
Annual Pipe
Replacement Project in
Road Rehab Area
$500,000 annually
474
2025 Agenda Planning Calendar (Updated 02 20 2025)
Agenda Item Agenda Section
March 11, 9 a.m. City Mngr Chateau RSG Report NB
Blink Network LLC Contract Amendment Consent
South Tahoe Transit JPA startup contribution NB
City Attorney Athletex Donation Agreement Consent
Dev. Services General Plan Annual Progress Report Consent Future Funding for Long-Term Warm Room NB
Finance Fiscal Year 2024-2025 Mid-Year Budget Review NB Ski Run BID Annual Report and Budget NB
Police AB41 Policy Adoption Consent
Police Department Annual Report Consent
Shared Mobility Ordinance Update (First Reading) NB
March 18, 9 a.m. Strategic Planning Session
Mar. 25, 3:00 p.m. Joint City Council/Planning Commission Ethics Training Mar. 25, 5:30 p.m. City Manager EV Charging Parking Ordinance (First Reading) NB

CC & STJPPFA
Establishing an EV Charging Rate for the City's Public EV Chargers NB Department
475
2025 Agenda Planning Calendar (Updated 02 20 2025)
Community Choice Aggregation Feasability Analysis UB
Finance 2024-2025 Master Fee Schedule Adoption Consent
HR City Personnel Rules Consent
Police Shared Mobility Ordinance Update (Second Reading) Consent Stateline Transit Center Parking and Signage NB
Public Works Award Pioneer Trial PH II
Annual Roadway Rehab Contract Reconciliation Consent
Award Pioneer Trail HSIP
Transfer Measure S funds to Tahoe Valley Project (Phase 1 Road Rehab) Consent Paving Lieu Fee Agreement with STPUD
April 22, 5:30 p.m. City Manager EV Charging Parking Ordonance (Second Reading) Consent

CC & STJPPA
Award CalTrans Carbon Reduction Grant Consent
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 476
2025 Agenda Planning Calendar (Updated 02 20 2025)
Fire LRA Fire Severity Zone Map Ordinance (First Reading) Public Works Award 2025 Road Rehab Drainage Replacement project Riembursement Agreement with FAA for PAPI
May 6, 9 a.m. City Clerk Military Appreciation Month Proclamations Dev. Services Building Code Appendix AW Adoption-3D Printed Structures Fire LRA Fire Severity Zone MapOrdinance (Second Reading) 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. City Manager California Climate Action Corps Fellows Projects Presentation Presentation 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
Dev Services Res. Area Plan to Accommodate SB9 and Remove Tourist Accomodation Discussion: Second Home Cap/Permit Options
Unscheduled/Pending
477
2025 Agenda Planning Calendar (Updated 02 20 2025)
Finance Disolution STJPPFA
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 PD Roof Replacement
TTD US 50 Plans Presentation
Sierra Blvd. Speed Survey
Award Lakeview and Ski Run Electrical Upgrades
Award Contract for Hwy 50 Corridor Study
Award PS&E for Sugar Pine Bike Path Project
478
2025 Agenda Planning Calendar (Updated 02 20 2025)
Award Citywide Traffic Calming Toolbox
Award Grant Writing Services Contract
Award US 50 RSA City Portion Upgrades
479

South Lake Tahoe City CouncilFebruary 25, 2025

South Lake Tahoe City Council
February 25, 2025