Agenda packet, second session — South Lake Tahoe City Council, March 25, 2025 (part 3 of 3)

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) 266
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]
267
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
268
Subject Photographs
ii
Subject Photographs
Aerial Views (Google Maps)
269
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 270
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 271
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) 272
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. 273
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
274
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
275
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. 276
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. 277
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 278
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. 279
Area Analysis
5 Area Analysis
280
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 281
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
282
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. 283
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.
284
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:
285
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 286
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 non287 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- 288
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. 289
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:
290
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. 291
Site Analysis
17 PLAT MAP
292
Site Analysis
18 ALTA SURVEY (SUBJECT SITE IN YELLOW)
293
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 294
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.

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

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. 295
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. 296
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.
297
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.
298
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 299
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.
300
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. 301
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.
302
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.
303
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:
304
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.
305
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.
306
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.
307
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.
308
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. 309
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.
310
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.
311
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.
312
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
313
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) 314
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. 315
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. 316
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. 317
Addenda

ADDENDA
318
Addenda
Addendum A

LAND SALE DATA SHEETS
319
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
320
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. 321
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
322
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. 323
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
324
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). 325
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 / $32.90 326
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). 327
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
328
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. 329
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 / $45.51 330
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.
331
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 / $16.10 332
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.
333
Addenda
Addendum B

ALTA SURVEY
334
335
336
337
Addenda
Addendum C
PRELIMINARY TITLE REPORT (APN 023-201-072)
338
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
339
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.
340
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.
341
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.
342
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. 343
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.
344
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. 345
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
346
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. 347
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.
348
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.
349
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.
350
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. 351
Addenda
Addendum D

CLIENT CONTRACT INFORMATION
352

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 353

BMO HARRIS BANK, N.A.

Assignment Agreement

Page 2 of 9 ends

February 21, 2024
www.cbre.us/valuation

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. 354

BMO HARRIS BANK, N.A.

Assignment Agreement

Page 3 of 9 ends

February 21, 2024
www.cbre.us/valuation

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
355

BMO HARRIS BANK, N.A.

Assignment Agreement

Page 4 of 9 ends

February 21, 2024
www.cbre.us/valuation

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
356

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 357

BMO HARRIS BANK, N.A.

Assignment Agreement

Page 2 of 9 ends

February 21, 2024
www.cbre.us/valuation

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 358

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 359

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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.
(b) Neither party shall assign this Agreement in whole or in part (other than by operation of law) to any person or entity without the prior written consent of the other party. Subject to the foregoing, this Agreement and all of its provisions shall be binding upon and shall inure to the benefit of the parties and their respective successors and permitted assigns.
(c) No consent or waiver, either expressed or implied, by a party to or of any breach or default, shall be construed to be a consent or waiver to or of any other breach or default in the performance of any obligations hereunder. Failure of a party to complain or declare the other party in default shall not constitute a waiver by such party of rights and remedies hereunder.
(d) Except as hereinafter provided, no delay or failure in performance by a party shall constitute a default hereunder to the extent caused by Force Majeure. Unless the Force Majeure substantially frustrates performance of the Services, Force Majeure shall not operate to excuse, but only to delay, performance of the Services. If Services are delayed by reason of Force Majeure, CBRE promptly shall notify Client. Once the Force Majeure event ceases, CBRE shall resume performance of the Services as soon as possible. As used herein, “Force Majeure” means any event beyond the control of the Party claiming inability to perform its obligations and which such Party is unable to prevent by the exercise of reasonable diligence, including, without limitation, the combined action of workers, fire, acts of terrorism, catastrophes, changes in laws, condemnation of property, governmental actions or delays, national emergency, war, civil disturbance, floods, unusually severe weather conditions, endemic or pandemic, or other acts of God. Inability to pay or financial hardship shall not constitute Force Majeure regardless of the cause thereof and whether the reason is outside a party’s control.
(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.
(f) If any provision of this Agreement, or application thereof to any person or circumstance, shall to any extent be invalid, then such provision shall be modified, if possible, to fulfill the intent of the parties reflected in the original provision. The remainder of this Agreement, or the application of such provision to person or circumstance other than those as to which it is held invalid, shall not be affected thereby, and each provision of this Agreement shall be valid and enforced to the fullest extent permitted by law. 360

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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
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Addenda
Addendum E

APPRAISER QUALIFICATIONS
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©2022 CBRE, INC.

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
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(PER A/MAPS/35)
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: March 25, 2025
Agenda Item #:7
Agenda Item: Community Choice Aggregation Feasibility Study Executive Summary: Community Choice Aggregation (CCA) is a program that allows cities and other governmental entities to purchase electricity for their residents and businesses. If the City were to join a CCA program, Liberty Utilities would continue to deliver the electricity through its transmission and distribution system. Based on a motion unanimously passed by City Council on June 7, 2022, staff contracted with Best Best & Krieger and GDS Associates, Inc. to prepare a high-level feasibility study.

Based on the study's finding that a CCA approach is feasible in South Lake Tahoe, staff recommends that the City pursue joining a CCA as an effort to find greater economies of scale and to reach out to other CCAs interested in expansion by applying for Affiliate Membership in CalCCA.

Requested Action / Suggested Motions: Pass a Motion directing staff to pursue joining a Community Choice Aggregation program and authorizing and directing the Mayor to execute an application for Affiliate Membership with CalCCA.

Responsible Staff Member: Sara Letton, Sustainability Coordinator Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney
Attachments:
01 - Staff Report - Community Choice Aggregation Feasibility.docx 02 - South Lake Tahoe CCA Feasibility Memo 03-07-25.pdf 03 - CalCCA-Affiliate-Member-Application.pdf
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City of South Lake Tahoe
Report to City Council
Meeting Date: March 25, 2025
Title: Community Choice Aggregation Feasibility
Location: Citywide
Responsible Staff Member: Sara Letton, Sustainability Coordinator Background: In places where investor-owned utilities (IOU) provide electricity, community choice aggregation (CCA) programs provide local control over electricity procurement and rate setting. 14 million Californians are served by CCAs, who provide electricity at a lower price, and often lower carbon emissions, than their IOU. CCAs are governed by public agencies that procure the energy, while the existing IOU continues to service poles & lines and process the customer bills. Some CCAs have opt-in programs such as 100% renewable energy and even 24/7 Carbon Free Energy. As not-for-profit public agencies, CCAs are not beholden to investor profit interests, and develop & fund their own customer-serving projects and programs because they set rates.

CCAs can even develop electricity generation projects, creating local well-paying green jobs. City Staff have been looking into CCA programs for some time:
 June 2022: City Council directed staff to pursue a feasibility study for a CCA program. In preparing for an RFP, Staff learned of several complexities of our local electricity delivery system such that the pursuit of joining or forming a CCA was somewhat unprecedented.

Staff pursued lower hanging fruit in pursuit of energy saving projects.  November 2022: Staff reported to Council on those additional opportunities and continued to look into CPUC administrative opportunities as well as cost effective municipal energy projects. Council approved offering a one-year franchise agreement with Liberty in large part due to their refusal to engage with the City in a memorandum of understanding in pursuit of cost-effective carbon reduction goals established by council resolution. Liberty refused to sign the one-year franchise agreement, and this is the current status quo. Staff received direction to explore the possibility of creating a municipal electric utility (owning poles & lines and operating a utility).
 March 2024: After extensive meetings with various CPUC staff and officials, Staff reengaged with the pursuit of CCA (considered an easier path to achieving basic goals than municipalization) and contracted the services of a law firm experienced in CCA establishment.
 April 2024: Staff attended the statewide CalCCA conference and learned of CCAs potentially interested in expanding to South Lake Tahoe, and wider into Liberty territory. 369
Council Agenda Report- March 25, 2025 Page 2 of 4
 October/November 2024: After a year+ long facilities energy audit and project development, council funded the ‘Energy Upgrades Project’ in an effort to find greater energy efficiency, and carbon offsets, while addressing necessary facility upgrades.  December 2024: City Staff learned that other jurisdictions in Liberty territory are also exploring CCA. This changes the economies of scale assessed in a city-only feasibility study for CCA.
 March 2025: Contracted law firm updated a city-only feasibility memo, noting South Lake Tahoe’s unique energy situation and yet finding potential feasibility.

Issue and Discussion: According to CalCCA, the membership organization of California CCAs, “Over the last decade, local governments in more than 200 towns, cities, and counties throughout the state have chosen to participate in CCA to meet climate action goals, provide residents and businesses with more energy options, ensure local transparency and accountability, and drive economic development. There are currently 25 operational CCA programs in California serving more than 14 million customers, and with many more in progress, those numbers are set to grow.”
CCAs provide:
 “Consumer choice, local control, and accountability
 Policy tool to help communities reach their climate and economic goals  Transition to a cleaner, more efficient energy supply  Revenues reinvested in the community, not distributed to shareholders  Development of new renewable energy projects
 Tool for communities to establish local energy resources and programs such as solar+storage for resilience, low-income solar, EV vehicle and infrastructure incentives, feed-in-tariff, net energy metering (NEM), energy efficiency, demand response, and more.1” Liberty Utilities has never seen a CCA developed in their territory. The feasibility memo produced for South Lake Tahoe notes that the regulatory path is untested and underdeveloped but is a legal right of Liberty’s ratepayers. The memo notes that a city-only CCA is feasible. However, a cityonly CCA would have administrative costs. If the customer base was larger, those administrative costs could be spread out. Pioneer Community Energy has expressed initial interest in expanding into South Lake Tahoe and other Tahoe basin areas. Additionally, there is active interest among north lake jurisdictions in the potential of creating a regional CCA. These are two active and potentially beneficial pathways forward. However, because jurisdictions served by CCAs do not need to be geographically contiguous, it would be beneficial to let other California CCAs know that South Lake Tahoe is interested in their expansion into our city. Doing so would be easily accomplished by requesting free Affiliate Membership in CalCCA. South Lake Tahoe would be listed on their website as an Affiliate Member and implicitly asks CCAs to reach out if interested in expanding into South Lake Tahoe. Therefore, Staff seek council approval to explore joining a CCA and applying for Affiliate Membership in CalCCA.

A common benefit of California CCAs is a lower rate than is offered by the IOU. Liberty has historically had relatively low rates, which made early interest in CCA dwindling out. However, Liberty’s rates have been increasing in the last few years, which has re-engaged interest and increased feasibility. Liberty’s residential non-CARE rate proposed in their current General Rate

1 CalCCA, “CCA: What is it?” https://cal-cca.org/powered/ 370
Council Agenda Report- March 25, 2025 Page 3 of 4
Case is $0.4032, and it was $0.158 as of November 20203. For comparison, PG&E is $0.3824 and includes access to a number of carbon reducing programs that Liberty customers do not have because they do not pay in and are not mandated by CPUC to provide. Most of the current proposed rate increase is due to wildfire risk mitigation and insurance increases. This will remain a cost even for a CCA. There will be costs of administration for a CCA, which would be absorbed in the rates it sets.

Lowering electricity rates, increasing resiliency, and lowering carbon emissions is in the interest of all residents and businesses. In order to maximize these aspects, Staff recommend exploring how to create even greater economies of scale by either joining an established CCA or joining an effort at creating a new regional CCA to include other jurisdictions in Liberty Utilities service territory Financial Implications: The initial financial contribution to exploring joining an established or new regional CCA is likely minimal to none because this feasibility memo provides the necessary initial information that would be needed by the interested parties.

Environmental Considerations: This action is not a project requiring review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(5) (organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment).

Policy Implications:

Strategic Plan, 1.5 Carbon Neutrality, “Implement a variety of projects to reach the City’s 100% renewable energy goals, eventually achieving carbon neutrality, Action item 3: Work with community partners to achieve 100% local, renewable energy for all entities by 2025.” Resolution 2017-26, “Establishing renewable energy and carbon emissions reduction goals for South Lake Tahoe”
Resolution 2021-104, “Aspire towards citywide 100 percent renewable, carbon-free electricity, 24/7 by 2030.

Resolution 2022-088, “Adopting a science-based target for greenhouse gas emissions reductions by 2030”
2020 Climate Action Plan, Strategy 10: Renewable Energy, “focusing on increasing the use of renewable energy in the community through advocating for utility-scale renewable energy, the potential development of a community choice aggregation program, and production and use of renewable energy.

Action: RE – 1: Transition the City to 100% renewable electricity  Work with Liberty Utilities to offer green power/renewable energy purchasing (i.e. green tariff) to customers;

2 Liberty Utilities Customer Notice, https://california.libertyutilities.com/uploads/Liberty%20-%20GRC%20Final%2024-09- 010_Bi%20Lingual.pdf
3 Liberty Utilities Rate Brochure November 1 2020,
https://california.libertyutilities.com/uploads/LU%20Rate%20Broch%2011x8.5%2011-20%20pr4.pdf 4 Notice of PG&E Request to Increase Rates https://www.pge.com/assets/pge/docs/account/billing-and-assistance/10-DCPPextended-operations-2025-forecast.pdf 371
Council Agenda Report- March 25, 2025 Page 4 of 4
 If progress is not being made toward these goals by 2025, begin process of developing a community choice aggregation ordinance.

Action RE – 2: Increase Renewable Energy and Storage Throughout the Community  Pursue community solar and distributed energy systems; explore the development of community solar projects on city-owned land, possibly public-private partnerships, to increase the resilience of City operations.
 Explore options for and the feasibility of increasing local solar energy production and distributed renewable energy while using energy storage systems.” 372
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MEMORANDUM
TO Sara Letton, Sustainability Coordinator, City of South Lake Tahoe FROM Amber Gschwend and Garrett Cole, GDS Associates; Ryan Baron, Best Best & Krieger LLP DATE March 7, 2025
RE City of South Lake Tahoe CCA Feasibility

INTRODUCTION
This memo updates the previous analysis completed for the City of South Lake Tahoe (City) to determine the financial feasibility of implementing a Community Choice Aggregation (CCA) program for the City. This update incorporates changes since the draft feasibility assessment was prepared in May 2024. Specific updates include:

1. Liberty Utilities Energy Cost Adjustment Request (updated October 24, 2024)

2. Liberty Utilities 2025 General Rate Case (GRC)Application

3. Current market conditions and scenario projections for power supply costs Based on the updates it was determined that a standalone, fully staffed South Lake Tahoe CCA would not likely be financially feasible unless power supply costs remain at current levels and interest only payments on debt service could be made in the first 3 years of operation.

CCA FORMATION AUTHORITY
An initial question is whether the City can form a CCA under California law given that investor-owned utility (IOU) service territory the CCA would provide retail electricity in is within Liberty Utilities (Liberty), which is outside the California Independent System Operator (CAISO) Balancing Authority (BA) but within the BA of Nevada Energy. Assembly Bill (AB) 117, enacted in 2002, allows for CCA throughout the State of California with no limitation on the formation of a CCA except within the territory of a local publicly owned electric utility.1 Essentially, state law allows any city, county, or group of cities and/or counties through a joint powers authority to aggregate the electrical load of interested electricity consumers within its boundaries except in the territory of another public agency (e.g., Truckee Donner Public Utility District).2

SOUTH LAKE TAHOE LOAD CHARACTERISTICS
Liberty provided the City with customer usage data and service account numbers for calendar year 2023.

The retail sales to end-customers are aggregated based on load shapes available through several sources including data provided by Liberty, Liberty’s General Rate Case filings, Marginal Cost of Service analysis, and load characteristics from neighboring utilities. Figure 1 summarizes the breakdown of the load within each customer class.
1 Pub. Util. Code § 366.2(c)(1).
2 See also Pub. Util. Code § 331.1.
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M E M O R A N D U M
City of South Lake Tahoe CCA Feasibility
- 2 -
FIGURE 1. ANNUAL RETAIL SALES, 158 GWH
Figure 2 shows the number of service accounts.

FIGURE 2. 2023 SERVICE ACCOUNTS
Notably, the City has a large share of homes that are occupied during parts of the year as seasonal homes.

Liberty estimates that 55% of the City’s residential service accounts are seasonal (non-permanent). The breakdown of service accounts and usage is estimated based on the figures provided by Liberty. Nonpermanent accounts are associated with a higher cost of service due in part to their lower consumption and also in part by their load profiles that partly peak during summer months (Figure 3). For purposes of this study, permanent and seasonal residential customers are modeled separately.

Permanent
Residents
28%
Seasonal
Residents
16%
Small Commercial
24%
Medium
Commercial
14%
Large Commercial
18%
Lights
0%
6,014
7,351
1,843
5,132
15 69
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Permanent
Residents
Seasonal
Residents
Small
Commercial
Medium
Commercial
Large
Commercial
Lights
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M E M O R A N D U M
City of South Lake Tahoe CCA Feasibility
- 3 -
FIGURE 3. RESIDENTIAL MONTHLY LOAD SHAPES
Participation Rates
CCA program participation can vary. Most recent CCAs have observed low program opt-out rates ranging from 2-5% (95-98% participation). These assumptions are reasonable for modeling potential CCA loads.

Liberty has confirmed that there are no direct access customers within its service territory. Direct Access customers are those that purchase power supply directly from a third-party supplier rather than through the utility. It is common practice for a CCA to exclude direct access customers from automatic enrollment.

CCA Load Forecast
After applying participation rates and line losses,3 the CCA load is forecasted at 149,000 MWh for the full 2027 calendar year. This assumes load is served beginning January 1, 2027. The system peaks in January at approximately 37 MW. Electric loads are forecast to grow at approximately 0.3% annually based on the 0.5% growth in residential and 0.25% annual growth in small and medium commercial classes. Growth rates were informed by the City of South Lake Tahoe 2022-2027 Housing Element Report.4 Figure 4 illustrates the estimated monthly load shape for calendar year 2026. 3 Distribution system losses are 4% secondary and 2% primary based on Liberty’s GRC documents. 4 Placeworks, City of South Lake Tahoe 2022-2027 Housing Element, Public Draft (Dec. 2021). 0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
1 2 3 4 5 6 7 8 9 10 11 12
kWh
Month
Permanent Residents Seasonal Residents
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City of South Lake Tahoe CCA Feasibility
- 4 -
FIGURE 4. CCA SYSTEM MONTHLY LOAD FORECAST: 2026

CCA OVERHEAD
If the City were to implement its own CCA program, the program would need to hire staff and consultants to carry out day-to-day operations and meet all regulatory requirements. The overhead costs include services for the following:

TABLE 1. CCA OVERHEAD
Service Performed By: General Functions
Portfolio Management Third
Party/Consultant
Resource Planning, power contract procurement,
load forecasting
Schedule Coordinator Third
Party/Consultant
Hourly management of load and resources
Data Management and
Customer Service Call
Center
Third
Party/Consultant
Validates meter reads, staff customer service call
center, manages usage data
Billing IOU Calculates, prints, and mails utility bills for all customers
CCA Program Management CCA Staff Can include many roles but at a minimum: CEO, CFO, Power Supply Director
Energy Program
Management
Mix of CCA staff and
Consultant
Develop energy-related customer programs such
as energy efficiency
Financial Services Third
Party/Consultant
Accounting, banking services
Program management staff is assumed to include 3.5 FTE once fully operational. Depending on CCA organization and program goals, this level of staffing can be increased over time. For the purposes of the feasibility assessment, it is assumed that the minimum staffing level is 3.5 FTE. Operating CCAs of similar 0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1 2 3 4 5 6 7 8 9 10 11 12
M
Wh
Month
Permanent Residents Seasonal Residents Small Commercial Medium Commercial Large Commercial Lighting
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size typically employ 3-15 FTE. Annual operating costs, including all the necessary functions, are estimated at $3.3 million in 2027.

In addition, non-operating costs will also be incurred. These costs include the following:
 Financial Security Requirements – Deposit paid in the event the CCA program is closed and customers need to be returned to IOU service
 Debt-Service – Start-up costs and working capital. The CCA will require capital for costs it incurs prior to collecting revenues from customers. On average it requires 2.5 months to collect the total revenue billed in any given month.

CCA start-up costs are highly predictable based on previous experience in reviewing detailed expenses for more than 20 California CCAs. Cost estimates are updated to current 2025 dollars and included in the proforma.

CCA POWER COSTS
Power supply costs are calculated based on the load characteristics and projected market conditions.

Once formed, a CCA can decide the power supply mix preferences; however, for this initial analysis, it is assumed that a South Lake Tahoe CCA would only meet the California Renewables Portfolio Standard (RPS) requirements and would not “opt-up” customers into higher renewable product tiers. The requirement is 49% renewable energy by 2026 increasing to 60% renewable by 2030 and 100% carbon free by 2045. Additional requirements are also met including:
 Resource Adequacy requirements (RAR)
 65% of renewable energy requirements must be purchased through long-term contracts (10 or more years)
 Requirement for meeting loads with 0.1% energy storage resources Block Energy Purchases
A South Lake Tahoe CCA could meet its energy requirements through block energy purchases. These purchases could be short-term (months to a year) or long-term power contracts (multiple year contracts).

Additionally, the pricing construct of potential contracts could vary. For example, pricing could be based on time of day usage, flat price for all years, include an escalation factor, or other constructs. For the purposes of this study, energy purchases are priced based on forward market prices, which vary by time of day and escalate year to year. This pricing construct best captures the cost to serve the estimated South Lake Tahoe load shape.

The South Lake Tahoe area would have access to NP15 market exchanges, and NP15 is one of the closest trading hubs for wholesale electricity. The forward pricing for NP15 is adjusted for the South Lake Tahoe area based on historical congestion differentials. Figure 5 shows the NP15 data and the adjusted pricing for South Lake Tahoe region (SLT) as of December 2024.
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FIGURE 5. FORWARD MARKET PRICES
Renewable Energy
As mentioned above, the CCA would be subject to CA RPS which includes provisions for the share of energy purchased from renewable resources as well as the contract length. Given the City’s Climate Goals of 24/7 greenhouse gas free electricity, this study evaluated meeting RPS requirements with only Portfolio Content Category (PCC) 1 and 2 renewable energy credits (RECs). These are bundled RECs deliverable to California. The CCA could purchase PCC3 RECs and realize cost savings in meeting RPS requirements. This option is not evaluated in this analysis.

PCC1 and PCC2 RECS in December 2024-January 2025 were trading in the range of $50-$70/MWh. These prices are additive to the market price of electricity. Since that time, the price for renewable energy has declined significantly and is now trading in the $15-$25/MWh range (March 2025). This lower cost range is more typical for renewable energy costs observed prior to the COVID-19 pandemic and subsequent supply chain issues. Both power cost scenarios are modeled in to assess feasibility.

For long-term renewable energy contracts, it is assumed that the CCA would be able to procure approximately 17 MW from a solar facility at the beginning of the study period and incrementally procure more solar throughout the 10-year term to meet the 65% long-term contract requirement as the RPS grows through 2035. This results in the CCA participating in a total of 26 MW by the end of the study period at an estimated cost of $50/MWh. This is slightly higher than the Q4 2023 price from Edison Electric that averages long-term contracts. The higher price reflects that the cost is considered inclusive of the long-duration storage requirement of 0.1% of the system peak demand.

In order to enter into a long-term contracting arrangement, sellers typically require credit ratings or up front capital to secure the agreement. As a new entity, the CCA would not have a credit rating. Therefore, the CCA will need a credit facility that addresses the collateral requirements to enter into power purchase agreements with a seller. The cost of this credit is included in the financial feasibility assessment. $-
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Resource Adequacy
The California Public Utilities Commission (CPUC) requires that all Load Serving Entities (LSEs) comply with certain Resource Adequacy requirements (RAR).5 These requirements ensure enough capacity to meet electrical demand across the system. LSEs can meet the RAR with different types of RA: local, system, and flexible. There are some minimum amounts from each type of RA required depending on the LSE’s location. If an LSE fails to meet the requirements, certain penalties will apply including fines.

Flexible and local RAR are calculated based on CAISO system information. Because South Lake Tahoe is located outside of the CAISO system, it is assumed that it would have only a system RAR.6 Also, since the South Lake Tahoe system is not connected to the CAISO, the CCA would not need to purchase capacity (resource adequacy) from the CAISO area where prices have increased significantly in the past 5 years.

Current CAISO system RA prices are in the $13-14/kW-mo.

The CCA could purchase capacity resources from sellers in the NV Energy balancing area to meet their RA requirement. The feasibility assessment assumes that a CCA would receive the same treatment that Liberty currently receives from NV Energy regarding power supply contracting. NV Energy provides Liberty with all of its RA requirements. The cost of the RA is based on a contract demand (kW peak demand that is fixed in each month of the year) and the capacity charge of $8.20/kW-mo through December 2025. NV Energy would give the CCA capacity credits for local solar resources as it has done for Liberty in the 2021 Energy Services Agreement (ESA).7 The capacity credits would be negotiated values; however, the proforma assumes capacity credits consistent with the CAISO’s RA program.

Transmission
Transmission services would continue to be provided by Liberty and billed through the delivery rate.

Ancillary services including scheduling, system control, dispatch service, reactive supply, voltage control, and regulation and frequency response costs are the responsibility of the CCA. The costs for these services included are estimated at $1.13/MWh.

Power Cost Summary
Figure 6 shows the resulting annual power costs in $/MWh units for each year of the study. As the RPS requirement increases, renewable purchases become a larger share of total power costs. Power costs increase approximately 3% annually over the study period. Figure 6 shows the Scenario 1 power supply costs which assume the higher renewable energy costs observed in December 2024 and January 2025. 5 CPUC Rulemakings (R.) 16-02-007, R.15-02-020, R.17-09-020, and R.19-11-009. 6 According to comments filed by Liberty through its trade association the California Association of Small and MultiJurisdictional Utilities (CASMU), Liberty is not subject to CAISO RA Requirements. “As described above, Liberty and PacifiCorp operate outside of the CAISO balancing authority area. Accordingly, Liberty and PacifiCorp are not subject to CAISO resource adequacy (“RA”) requirements. Additionally, none of the CASMU members are subject to Commission RA requirements. It should also be noted that because the Commission does not exercise supervisory authority over certain contracting undertaken by the CASMU members, none of the CASMU members participate in a Procurement Review Group. Further, neither BVES nor Liberty utilizes an Independent Evaluator.” CPUC Rulemaking (R.) 20-11-003, Exhibit CASMU-1, pg. 6 (Sept. 1, 2021). https://www.cpuc.ca.gov/-/media/cpucwebsite/divisions/energy-division/documents/summer-2021-reliability/opening-testimony/smju-openingtestimony-phase-2.pdf. 7 Liberty Utilities Advice Letter 153-E (U-933-E). Liberty Utilities (CalPeco Electric) LLC – Request of 2021 Energy Services Agreement with Sierra Pacific Power Company, dba NV Energy (Sept. 4, 2020). 379
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FIGURE 6. CCA POWER COST ESTIMATES: SCENARIO 1, $/MWH
Figure 7 shows the power supply costs when assuming more current renewable energy costs (March 2025).

FIGURE 7. CCA POWER COST ESTIMATES: SCENARIO 2, $/MWH
$85 $82 $82 $84 $86 $88 $91 $93 $96
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EXIT FEE
Traditionally California IOUs calculate a Power Charge Indifference Adjustment (PCIA) for departing loads, such as regions where CCAs have been established. The PCIA is the stranded generation cost a departing load customer must pay in order to hold remaining customers indifferent to the load departure. The three large 3 IOUs (PG&E, SCE, SDG&E) manage large portfolios of power supply resources, which include a combination of long-term and short-term contracts and resources that are directly owned and operated by the utility. In the case of Liberty, power supply is provided by NV Energy via a 5-year contract that includes all energy requirements. Liberty’s own resources are included in the contract as a credit to its power costs.

The current contract expires December 2025. Liberty is likely negotiating an updated contract for the term beginning directly after expiration. It is expected that the new contract will be similar to the current version in term and exceptions. This is an important factor in determining whether or not Liberty’s generation costs are stranded. Key components of the contract include the following:

1. Liberty is billed based on contract demand (Appendix C). This contract demand may be modified with written notice8 for certain instances including:
a. Up to 20,000 kWac of new renewable facilities procured through Liberty’s competitive bid process and connected to Liberty’s distribution system. b. Adjustment for new Qualifying Facilities (for PURPA compliance).9 c. Procurement of energy or capacity in the case NV Energy fails to deliver the full requirement.
d. Mutual agreement between NV Energy and Liberty to modify Liberty’s contract demand for changes that more accurately reflect Liberty’s load.

2. Contract demand is billed at $8.20/kW-month.

3. NV Energy provides transmission services through its Network Integrated Transmission Service (NITS).

Based on the above contract provisions, there appears to be flexibility in Liberty’s purchased power contract. Both the short term of the contract (5 years with optional termination at 3 years) and the allowance to modify contract demand based on accurate load estimates suggest that the stranded generation costs would be minimal.

There is also support for a $0 PCIA rate from both Liberty’s resource plans and its current Direct Access rates. First, Liberty is seeking to increase its renewable energy share, and if a portion of its load departed to form a CCA, there could be cost savings to the remaining Liberty customers. These cost savings would be from Liberty avoiding the need to procure additional renewable energy as it could rely on its current generating resources to meet a larger share of the remaining load.

Second, the Direct Access tariff does not include an exit fee. Liberty does not currently provide distribution services to direct access customers. If a customer wanted to move to direct access, however, the customer would not have to pay for generation cost stranding. This is informative because in the CPUC’s initial decisions implementing Assembly Bill 117 that enacted the CCAs laws, the CPUC instructed the three large IOUs at that time to use their Direct Access tariffs as the basis for formulating new CCA tariffs. Although 8 Section 4.6.
9 Public Utilities Regulatory Policies Act of 1978.
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the three large IOUs eventually drafted tariffs that included stranded cost methodologies, which was later reformed by the CPUC in a broader CPUC PCIA proceeding, there is initial precedent that suggests that Liberty use its current Direct Access tariff as the basis for a newly forming CCA in its territory (i.e., no stranded cost).

LIBERTY GENERATION RATE
Liberty’s current rate structure is unbundled. Therefore, the generation rate for each class is clearly separated from other costs, such as distribution and rate riders. Between rate cases, Liberty adjusts generation rates using the Energy Cost Adjustment Clause (ECAC). Liberty must file for ECAC adjustments for new fuel and purchased power costs (termed Offset Rate) and when there is an anticipated under or over-collection of revenues by at least 5% (Balancing Account). The most recent ECAC request10 would increase generation rates by approximately 30% above their current level. The Advice letter was filed April 2024 and is currently pending.

We reviewed recent rate filings and advice letters filed by Liberty and summarized the expense data provided in Liberty’s FERC Form 1 filings (2019-2023). Table 2 shows the trend identified from the aforementioned source documents. Based on these figures, Liberty’s generation rate has increased approximately 28% per year since 2019.

TABLE 2. LIBERTY GENERATION COSTS
2019 2020 2021 2022 2023
Total Power Supply Expenses $21,436,540 $22,354,003 $25,424,004 $28,846,921 $30,888,492 MWh Sales 568,415 559,781 553,504 558,269 543,980
Generation Rate, $/kWh $0.0377 $0.0399 $0.0459 $0.0517 $0.0568 Incremental Adjustment 5.9% 15.0% 12.5% 9.9%
Table 2 shows purchased power and production expenses for each year reported. However, these costs are not the direct generation rate charged to consumers. Due to the lag between rate adjustment requests and approvals, Liberty records shortfalls and overages in a balancing account. The most recent request for the energy cost adjustment includes $0.05765/kWh for purchased power and fuel costs and an additional $0.03892/kWh for the balancing account recovery. Liberty has requested that the current under-collection be amortized over 2 years beginning January 1, 2025. If a CCA is established, and there is an under-collection balance for energy costs, CCA customers would need to pay their share even after leaving Liberty bundled service.

Looking forward, the study assumes Liberty’s current generation rate will increase by 28.9% in 2025 and then 10% annually after. Based on Liberty’s FERC Form 1 filings, the total retail rate (revenues divided by retail sales) has increased by an average of 10.8% per year since 2019. 10 Advice Letter 233-E Customer First Rate Change and ECAC. https://california.libertyutilities.com/uploads/CalPeco%20ALs/Liberty%20CalPeco's%20AL%20233- E%20Customer%20First%20Rate%20Change%20and%20ECAC.pdf.
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LIBERTY 2025 GENERAL RATE CASE FILING
Liberty filed its 2025 GRC application earlier this year requesting significant increases to its delivery rate.

The average system increase is approximately 40% over current rates. This increase translates to a 19% increase in the total Liberty rate (generation plus delivery). Much of this increase is due to wildfire mitigation costs, capital spending, increased operating costs, and the utility’s approved rate of return.

Even as a CCA, South Lake Tahoe residents would be required to pay the delivery charge to Liberty.

FEASIBILITY ANALYSIS
The feasibility analysis compares the CCA operating costs with estimated revenue to determine if the net revenue is sufficient to cover the takeout financing required for working capital and/or lockbox arrangements with creditors. Figure 8 illustrates the potential revenue compared with operating costs for the CCA under the higher power cost scenario (Scenario1). A relatively large working capital amount is needed since net operating income in the first 3 years is negative. The longer-term outlook is more positive, however this result relies on continued Liberty generation rate increases and market prices that don’t increase significantly. Figure 9 illustrates more favorable feasibility under Scenario 2 power supply costs (lower renewable energy costs). Only the first year (2027) of net operating income is negative. It’s reasonable that the CCA program could make interest-only payments on debt service until year 2 (2028). 383
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FIGURE 8. FEASIBILITY RESULTS: CITY OPERATED PROGRAM: SCENARIO 1 FIGURE 9. FEASIBILITY RESULTS: CITY OPERATED PROGRAM: SCENARIO 2 The above analysis assumes some minimal level of City staffing for the CCA program in addition to the team of consultants needed to operate the program. If the City considers a turnkey approach, the 384
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overhead costs could be reduced. The turnkey option is analyzed assuming 1 part time City employee manages the program with support from a full turnkey solution. Figure 10 shows that feasibility is achieved even when renewable power supply costs are high. Figure 11 indicates that lower power supply prices improve the turnkey feasibility.

FIGURE 10. FEASIBILITY RESULTS: TURNKEY OPERATED PROGRAM: SCENARIO 1 FIGURE 11. FEASIBILITY RESULTS: TURNKEY OPERATED PROGRAM: SCENARIO 2 385
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Findings
The feasibility analysis revealed the following:
 Based on Liberty’s power supply contracts, the PCIA will likely be very low or zero. A low PCIA is advantageous to new CCA programs.
 If an under-collection exists at the time of load departure, CCA customers will still need to pay Liberty for their fair share of the under-collection.
 South Lake Tahoe is located outside of CAISO and would likely be able to meet its RAR at a lower cost through bilateral contracts.
 Feasibility was evaluated for two power supply cost scenarios. Scenario 1 represents the pricing trends during December 2024-January 2025 which ranged from $50-$80/MWh. Scenario 2 analyzed current (March 2025) renewable pricing trends at $15-$25/MWh. The feasibility results are sensitive to the power supply cost forecast and indicate that lower renewable prices could result in CCA program feasibility for the City.
 The study analyzed CCA program feasibility under a turnkey approach. Feasibility is obtainable under the turnkey option for either Scenario 1 or Scenario 2 power supply costs.  The study assumes substantial generation rate increases of 11% per year on average. These rates are adjusted by over 20% in the first year.
 Liberty’s current ESA with Nevada Energy expires at the end of the 2025 calendar year. A new, updated contract with Nevada Energy is expected to put upward pressure on Liberty’s generation rates which could help improve the feasibility of CCA in the initial years. A new contract term may also introduce cost stranding for the length of the contract.  Even with over 20,000 service accounts, total usage in South Lake Tahoe is only about 150 GWh annually. This relatively low total usage that makes it challenging to recover non-power operating costs. A Turnkey approach can help lower overhead costs for the program.  New CCA programs will need significant capital to enter into long-term renewable energy contracts. These long-term contracts are required by state RPS; however, in absence of credit ratings, a new CCA would need to provide some type of collateral in order for the terms to be accepted by a supplier. This reserve requirement adds to the debt service payment and results in less favorable feasibility results.
 Liberty does not offer a 100% green rate to its customers, however, the CCA could offer this, or similar options, and recover the costs through retail rates that are above the rates for the standard product offered by Liberty.
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TABLE 3. CITY-STAFFED CCA FEASIBILITY 10-YEAR PROFORMA, SCENARIO 1 POWER COSTS, $MILLIONS 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Revenues
Retail Rate Revenues $0.00 $12.33 $15.80 $17.45 $19.27 $21.29 $23.51 $25.97 $28.68 $31.68 $34.99 Uncollectible $0.00 -$0.01 -$0.02 -$0.02 -$0.02 -$0.02 -$0.02 -$0.03 -$0.03 -$0.03 -$0.04 Total Rate Revenue $0.00 $12.32 $15.78 $17.43 $19.25 $21.26 $23.49 $25.94 $28.65 $31.65 $34.96 Expenses
Power Supply
Block Energy Purchases $0.00 $5.41 $6.38 $6.52 $6.30 $6.21 $6.26 $6.32 $6.38 $6.43 $6.48 Renewable Energy $0.00 $3.36 $3.86 $3.80 $4.01 $4.28 $4.56 $4.85 $5.14 $5.45 $5.77 Capacity/Resource Adequacy $0.00 $3.06 $3.46 $3.54 $3.62 $3.70 $3.78 $3.87 $3.96 $4.05 $4.14 Ancillary Services $0.00 $0.24 $0.26 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 $0.27 Total Power Supply $0.00 $12.07 $13.95 $14.12 $14.20 $14.46 $14.87 $15.30 $15.75 $16.20 $16.66 Operating and Administrative
Data Management and Customer Service Call Center $0.10 $0.32 $0.33 $0.34 $0.35 $0.36 $0.37 $0.39 $0.40 $0.41 $0.43 Power Management Consultant $0.17 $0.52 $0.54 $0.56 $0.57 $0.59 $0.61 $0.62 $0.64 $0.66 $0.68 Schedule Coordinator/Dispatch $0.08 $0.26 $0.27 $0.28 $0.29 $0.29 $0.30 $0.31 $0.32 $0.33 $0.34 Financial (Audit, Accounting) $0.06 $0.19 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22 $0.23 $0.23 $0.24 Technical Consultants $0.04 $0.11 $0.11 $0.12 $0.12 $0.12 $0.13 $0.13 $0.13 $0.14 $0.14 Marketing & Outreach $0.05 $0.16 $0.17 $0.17 $0.18 $0.18 $0.19 $0.20 $0.20 $0.21 $0.21 Legal/Regulatory $0.07 $0.22 $0.22 $0.23 $0.24 $0.25 $0.25 $0.26 $0.27 $0.28 $0.28 Liberty Fees, Billing $0.03 $0.10 $0.10 $0.11 $0.11 $0.11 $0.12 $0.12 $0.13 $0.13 $0.13 General & Administrative expenses $1.04 $1.47 $1.43 $1.47 $1.52 $1.56 $1.61 $1.66 $1.71 $1.76 $1.81 Total O&M and A&G $1.64 $3.34 $3.36 $3.47 $3.57 $3.68 $3.79 $3.91 $4.03 $4.15 $4.28 Debt Service Payment on Financing $0.00 $2.42 $2.64 $2.64 $2.64 $0.22 $0.00 $0.00 $0.00 $0.00 $0.00 Total Expenses $1.64 $17.83 $19.95 $20.22 $20.41 $18.36 $18.66 $19.21 $19.78 $20.35 $20.94 Net Income -$1.64 -$5.51 -$4.17 -$2.79 -$1.15 $2.91 $4.83 $6.73 $8.88 $11.30 $14.02 Net Income Allocation
Reserve Fund Contribution $9.21 -$5.51 -$4.17 -$2.79 -$1.15 $2.91 $4.83 $1.42 $0.14 $0.14 $0.15 Start-up Funding Payments + Collateral -$10.85 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Discretionary Programs/Additional Rate Discounts $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5.31 $8.74 $11.15 $13.87 Total Cash Outlays -$1.64 -$5.51 -$4.17 -$2.79 -$1.15 $2.91 $4.83 $6.73 $8.88 $11.30 $14.02 Rate Stabilization Reserve Balance $9.21 $3.71 -$0.47 -$3.26 -$4.41 -$1.50 $3.32 $4.74 $4.88 $5.02 $5.16 Reserve Balance Target $3.80 $3.80 $4.27 $4.34 $4.38 $4.47 $4.60 $4.74 $4.88 $5.02 $5.16 387
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TABLE 4. CITY-STAFFED CCA FEASIBILITY 10-YEAR PROFORMA, SCENARIO 2 POWER COSTS, $MILLIONS 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Revenues
Retail Rate Revenues $0.00 $12.33 $15.80 $17.45 $19.27 $21.29 $23.51 $25.97 $28.68 $31.68 $34.99 Uncollectible $0.00 -$0.01 -$0.02 -$0.02 -$0.02 -$0.02 -$0.02 -$0.03 -$0.03 -$0.03 -$0.04 Total Rate Revenue $0.00 $12.32 $15.78 $17.43 $19.25 $21.26 $23.49 $25.94 $28.65 $31.65 $34.96 Expenses
Power Supply
Block Energy Purchases $0.00 $5.41 $6.38 $6.52 $6.30 $6.21 $6.26 $6.32 $6.38 $6.43 $6.48 Renewable Energy $0.00 $2.80 $3.22 $3.96 $4.31 $4.60 $4.90 $5.22 $5.54 $5.88 $6.23 Capacity/Resource Adequacy $0.00 $1.95 $2.29 $2.33 $2.38 $2.42 $2.47 $2.51 $2.56 $2.60 $2.65 Ancillary Services $0.00 $0.16 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 Total Power Supply $0.00 $10.32 $12.06 $12.99 $13.17 $13.42 $13.81 $14.23 $14.66 $15.09 $15.54 Operating and Administrative
Data Management and Customer Service Call Center $0.10 $0.32 $0.33 $0.34 $0.35 $0.36 $0.37 $0.39 $0.40 $0.41 $0.43 Power Management Consultant $0.17 $0.52 $0.54 $0.56 $0.57 $0.59 $0.61 $0.62 $0.64 $0.66 $0.68 Schedule Coordinator/Dispatch $0.08 $0.26 $0.27 $0.28 $0.29 $0.29 $0.30 $0.31 $0.32 $0.33 $0.34 Financial (Audit, Accounting) $0.06 $0.19 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22 $0.23 $0.23 $0.24 Technical Consultants $0.04 $0.11 $0.11 $0.12 $0.12 $0.12 $0.13 $0.13 $0.13 $0.14 $0.14 Marketing & Outreach $0.05 $0.16 $0.17 $0.17 $0.18 $0.18 $0.19 $0.20 $0.20 $0.21 $0.21 Legal/Regulatory $0.07 $0.22 $0.22 $0.23 $0.24 $0.25 $0.25 $0.26 $0.27 $0.28 $0.28 Liberty Fees, Billing $0.03 $0.10 $0.10 $0.11 $0.11 $0.11 $0.12 $0.12 $0.13 $0.13 $0.13 General & Administrative expenses $1.04 $1.47 $1.43 $1.47 $1.52 $1.56 $1.61 $1.66 $1.71 $1.76 $1.81 Total O&M and A&G $1.64 $3.34 $3.36 $3.47 $3.57 $3.68 $3.79 $3.91 $4.03 $4.15 $4.28 Debt Service Payment on Financing $0.00 $2.42 $2.64 $2.64 $2.64 $0.22 $0.00 $0.00 $0.00 $0.00 $0.00 Total Expenses $1.64 $16.08 $18.07 $19.09 $19.38 $17.32 $17.60 $18.14 $18.69 $19.25 $19.82 Net Income -$1.64 -$3.76 -$2.28 -$1.66 -$0.13 $3.95 $5.88 $7.80 $9.97 $12.40 $15.14 Net Income Allocation
Reserve Fund Contribution $9.21 -$3.76 -$2.28 -$1.66 -$0.13 $2.84 $0.12 $0.13 $0.13 $0.14 $0.14 Start-up Funding Payments + Collateral -$10.85 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Discretionary Programs/Additional Rate Discounts $0.00 $0.00 $0.00 $0.00 $0.00 $1.11 $5.76 $7.67 $9.83 $12.27 $15.00 Total Cash Outlays -$1.64 -$3.76 -$2.28 -$1.66 -$0.13 $3.95 $5.88 $7.80 $9.97 $12.40 $15.14 Rate Stabilization Reserve Balance $9.21 $5.45 $3.17 $1.51 $1.38 $4.22 $4.34 $4.47 $4.61 $4.75 $4.89 Reserve Balance Target $3.37 $3.37 $3.80 $4.06 $4.13 $4.22 $4.34 $4.47 $4.61 $4.75 $4.89 388
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M E M O R A N D U M
City of South Lake Tahoe CCA Feasibility
- 17 -
TABLE 5. TURNKEY CCA FEASIBILITY 10-YEAR PROFORMA, SCENARIO 1 POWER COSTS, $MILLIONS 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Revenues
Retail Rate Revenues $0.00 $12.33 $15.80 $17.45 $19.27 $21.29 $23.51 $25.97 $28.68 $31.68 $34.99 Uncollectible $0.00 -$0.01 -$0.02 -$0.02 -$0.02 -$0.02 -$0.02 -$0.03 -$0.03 -$0.03 -$0.04 Total Rate Revenue $0.00 $12.32 $15.78 $17.43 $19.25 $21.26 $23.49 $25.94 $28.65 $31.65 $34.96 Expenses
Power Supply
Block Energy Purchases $0.00 $5.41 $6.38 $6.52 $6.30 $6.21 $6.26 $6.32 $6.38 $6.43 $6.48 Renewable Energy $0.00 $3.36 $3.86 $3.80 $4.01 $4.28 $4.56 $4.85 $5.14 $5.45 $5.77 Capacity/Resource Adequacy $0.00 $1.95 $2.29 $2.33 $2.38 $2.42 $2.47 $2.51 $2.56 $2.60 $2.65 Ancillary Services $0.00 $0.16 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 Total Power Supply $0.00 $10.88 $12.70 $12.83 $12.87 $13.09 $13.46 $13.86 $14.26 $14.67 $15.09 Operating and Administrative
Turnkey Operating Costs $0.56 $1.73 $1.79 $1.84 $1.90 $1.95 $2.01 $2.08 $2.14 $2.21 $2.27 Liberty Fees, Billing $0.03 $0.10 $0.10 $0.11 $0.11 $0.11 $0.12 $0.12 $0.13 $0.13 $0.13 General & Administrative expenses $0.31 $0.51 $0.44 $0.46 $0.47 $0.49 $0.50 $0.51 $0.53 $0.55 $0.56 Total O&M and A&G $1.37 $3.80 $3.84 $3.95 $4.07 $4.20 $4.33 $4.46 $4.59 $4.73 $4.88 Debt Service Payment on Financing $0.00 $2.42 $2.64 $2.64 $2.64 $0.22 $0.00 $0.00 $0.00 $0.00 $0.00 Total Expenses $0.89 $15.63 $17.67 $17.87 $17.99 $15.87 $16.09 $16.57 $17.05 $17.55 $18.06 Net Income -$0.89 -$3.32 -$1.89 -$0.44 $1.27 $5.40 $7.39 $9.37 $11.60 $14.10 $16.90 Net Income Allocation
Reserve Fund Contribution $9.96 -$3.32 -$2.93 -$0.44 $0.52 $0.07 $0.11 $0.12 $0.12 $0.12 $0.12 Start- up Funding Payments + Collateral -$10.85 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Discretionary Programs/Additional Rate Discounts $0.00 $0.00 $1.04 $0.00 $0.75 $5.32 $7.28 $9.26 $11.48 $13.98 $16.78 Total Cash Outlays -$0.89 -$3.32 -$1.89 -$0.44 $1.27 $5.40 $7.39 $9.37 $11.60 $14.10 $16.90 Rate Stabilization Reserve Balance $9.96 $6.64 $3.71 $3.27 $3.78 $3.86 $3.97 $4.09 $4.21 $4.33 $4.45 Reserve Balance Target $3.26 $3.26 $3.71 $3.76 $3.78 $3.86 $3.97 $4.09 $4.21 $4.33 $4.45 389
55868.00001\42219788.8

M E M O R A N D U M
City of South Lake Tahoe CCA Feasibility
- 18 -
TABLE 6. TURNKEY CCA FEASIBILITY 10-YEAR PROFORMA, SCENARIO 2 POWER COSTS, $MILLIONS 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Revenues
Retail Rate Revenues $0.00 $12.33 $15.80 $17.45 $19.27 $21.29 $23.51 $25.97 $28.68 $31.68 $34.99 Uncollectible $0.00 -$0.01 -$0.02 -$0.02 -$0.02 -$0.02 -$0.02 -$0.03 -$0.03 -$0.03 -$0.04 Total Rate Revenue $0.00 $12.32 $15.78 $17.43 $19.25 $21.26 $23.49 $25.94 $28.65 $31.65 $34.96 Expenses
Power Supply
Block Energy Purchases $0.00 $5.41 $6.38 $6.52 $6.30 $6.21 $6.26 $6.32 $6.38 $6.43 $6.48 Renewable Energy $0.00 $2.80 $3.22 $3.96 $4.31 $4.60 $4.90 $5.22 $5.54 $5.88 $6.23 Capacity/Resource Adequacy $0.00 $1.95 $2.29 $2.33 $2.38 $2.42 $2.47 $2.51 $2.56 $2.60 $2.65 Ancillary Services $0.00 $0.16 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 $0.18 Total Power Supply $0.00 $10.32 $12.06 $12.99 $13.17 $13.42 $13.81 $14.23 $14.66 $15.09 $15.54 Operating and Administrative
Turnkey Operating Costs $0.56 $1.73 $1.79 $1.84 $1.90 $1.95 $2.01 $2.08 $2.14 $2.21 $2.27 Liberty Fees, Billing $0.03 $0.10 $0.10 $0.11 $0.11 $0.11 $0.12 $0.12 $0.13 $0.13 $0.13 General & Administrative expenses $0.31 $0.51 $0.44 $0.46 $0.47 $0.49 $0.50 $0.51 $0.53 $0.55 $0.56 Total O&M and A&G $1.37 $3.80 $3.84 $3.95 $4.07 $4.20 $4.33 $4.46 $4.59 $4.73 $4.88 Debt Service Payment on Financing $0.00 $2.42 $2.64 $2.64 $2.64 $0.22 $0.00 $0.00 $0.00 $0.00 $0.00 Total Expenses $0.89 $15.08 $17.03 $18.03 $18.29 $16.19 $16.44 $16.94 $17.45 $17.97 $18.51 Net Income -$0.89 -$2.76 -$1.25 -$0.60 $0.97 $5.07 $7.05 $9.00 $11.20 $13.67 $16.45 Net Income Allocation
Reserve Fund Contribution $9.96 -$2.76 -$3.65 -$0.60 $0.91 $0.08 $0.12 $0.12 $0.13 $0.13 $0.13 Start- up Funding Payments + Collateral -$10.85 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Discretionary Programs/Additional Rate Discounts $0.00 $0.00 $2.40 $0.00 $0.06 $5.00 $6.93 $8.88 $11.08 $13.55 $16.32 Total Cash Outlays -$0.89 -$2.76 -$1.25 -$0.60 $0.97 $5.07 $7.05 $9.00 $11.20 $13.67 $16.45 Rate Stabilization Reserve Balance $9.96 $7.20 $3.55 $2.95 $3.86 $3.94 $4.05 $4.18 $4.30 $4.43 $4.56 Reserve Balance Target $3.12 $3.12 $3.55 $3.80 $3.86 $3.94 $4.05 $4.18 $4.30 $4.43 $4.56 390

CALIFORNIA COMMUNITY CHOICE ASSOCIATION

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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: March 25, 2025
Agenda Item #:8
Agenda Item: Establishing an Electric Vehicle Charging Rate for Public Chargers, $0.4108 per kWh.

Executive Summary: The City is moving forward with the installation of two sets of public facing electric vehicle chargers this year at the Bellamy Garage and at the Multigenerational Recreation and Aquatics Center. A rate to charge customers must be approved by the STJPPFA and Council, respectively, and programmed into the software before chargers can be open to the public.

Requested Action / Suggested Motions: 1) Acting as the City Council, Pass a Resolution adopting an electric vehicle charging rate structure for City-owned publicly available electric vehicle chargers; and (2) Acting as the South Tahoe Joint Powers Parking Financing Authority, Pass a Resolution establishing an electric vehicle charging rate structure for public chargers at the Parking Garage.

Responsible Staff Member: Sara Letton, Sustainability Coordinator, and Jeff Roberson, Police Lieutenant
Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Olga Tikhomirova, Finance Director
Attachments:
03 - Resolution EV Charging Station Rates STJPPFA.docx
02 - Resolution EV Charging Station Rates City.docx
01 - Staff Report Establishing an Electric Vehicle Charging Rate for Public Chargers.docx 392
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City of South Lake Tahoe
Report to City Council and
South Tahoe Joint Powers
Parking Financing Authority
Meeting Date: March 25, 2025
Title: Establishing an Electric Vehicle Charging Rate for Public Chargers, $0.4108 per kWh.

Location: Citywide
Responsible Staff Member: Sara Letton, Sustainability Coordinator, & Police Lt. Jeff Roberson Background:

In September 2020 Governor Newsom signed an Executive Order aimed at combatting climate change by setting the goal that 100% of new vehicles sales in California be zero emission by 2035. That Order emphasized the need to expand electric vehicle charging infrastructure to support the increasing adoption of electric vehicles. The City’s greenhouse gas inventories show transportation as consistently about one third of overall greenhouse gas emissions. The City’s Climate Action Plan identifies the EV-1 strategy metric as the “number of nonresidential EV charging stations installed.” Both private businesses and the City are noted contributors toward implementing the action.

The City has identified two sites for its first installations of public facing Level 2 electric vehicle (EV) charging stations. Seven (7) dual chargers (to charge up to 14 vehicles) will soon be installed at the Bellamy Garage, and three (3) more (to charge up to six vehicles) are scheduled for the new Recreation Center, also for installation in 2025. These sites were identified in the City’s 2022 EV Charger Siting Plan. The contract with Blink Network, LLC, for the chargers was approved at the June 18, 2024 City Council meeting, with an Amendment 1 on March 11, 2025.

Issue and Discussion: The City will be installing publicly accessible EV charging stations and the City must adopt an EV charging rate to charge customers because the City will own the chargers. Staff is recommending charging a rate to cover electricity, Operations & Maintenance costs, equipment & installation costs, a Parking Fee and our vendor’s fees.

For context, how many public EV charging stations are in South Lake Tahoe? A map of available charging stations is publicly available on Plugshare, which is a widely used app and website showing all public charging stations in a given area. Plugshare lists 34 stations in the city, including those currently functioning and those planned for construction. Staff vetted this list and found one redundant entry. Removing the redundant location, as well as those not yet active or long inactive, Staff accounted for 65 available charging ports in city limits as of fall 2024 (noting that some of the listed 34 stations by Plugshare are singles and most are dual stations). The City recently brought a contract to council with a plan to increase publicly available charging by 20 total 393
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ports, as noted above. In addition, the City contracted to lease to Tesla twelve parking spaces at the City’s public parking lot at 3069 Harrison Avenue where they plan to install superchargers. The City will receive monthly lease payments from Tesla, and Tesla will otherwise manage the chargers and set their own rates.

An analysis of local EV charging rates
EV charging rates can be dynamic as frequently as within a given day because of time of use rates or holidays or other circumstances. For this reason, evaluating charging rates is an inexact endeavor. When a driver looks for an available charger on an app such as PlugShare, a vendor must have a relationship with PlugShare to enable frequent updates on the app. Going directly to a vendor/charger provider’s app will provide the best information. It is notable that the landscape of accountability has increased through time. California Department of Food and Agriculture’s Division of Management and Standards’ California Type Evaluation Program (CTEP) added commercial EV charging manufactured or installed in California to their compliance roster. This brings added transparency and accountability to EV charging. One effect is that new EV chargers must charge per kWh as opposed to per hour (which had been common especially on lower kW chargers as the state was first scaling EV charging).

A rate analysis in fall of 2024 of the 34 stations identified by the widely used Plugshare app provided just nine data points on the fees charged at the stations. Two locations with DC Fast Chargers charged $0.65 and $0.50 per kWh. Seven Level 2 EV charging locations charged:
$0.25, $0.25, $0.25, $0.25, $0.38, $0.45, and $0.49 per kWh. Those stations were either 6.48kW stations or the kW was not listed. The stations that the City is installing are 19.2kW dual stations.

This higher kW provides a faster charge, and better service to the public compared to the lower capacity chargers. Additionally, the 19.2kW station can be installed at a fraction of the cost of installation of a DC fast charger, which often necessitates significant electrical upgrades at typical sites. It provides the best of both worlds and ‘future proofs’ the City’s investment with faster Level 2 charging.

How long does it take to charge?
Table 1 shows that charging will take between 1.9 to 3.4 hours for a 60 - 80% charge on the planned 19.2kW chargers for the three bestselling electric vehicles in California during 2023.1 For comparison, it takes about three times as long to charge on a typical Level 2, 6.48kW charger.

Please note that energy dispensed will be divided when two cars are plugged into the dual charger at the City’s stations. If charge management is needed in order to avoid a demand charge to keep costs reasonable, electricity will be dispensed slower, extending charge times.

1B. Crothers, Forbes. Jan 30 2024, Plug-In Hybrid Gains, Jeep Wrangler 4xe Sales Strong in California https://www.forbes.com/sites/brookecrothers/2024/01/30/jeep-wrangler-4xe-tops-toyota-tesla-model-y-tops-everyone-in-california-evsales-in-2023/ 394
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Table 1: Hours to achieve 60% or 80% capacity charge on California's 2023 bestselling EVs. This demonstrates a scenario of arriving at a charging station at 20% and desiring to charge to 80% or 100%.

Battery size
(kWh), min
and max
available in
that model
charge 60%
of capacity of
that model's
battery (kWh)
Hours to
achieve that
60% additional
capacity charge
on the City's

19.2 kW
chargers (one
car plugged into
the dual
charger)
charge 80%
of capacity of
that model's
battery
(kWh)
Hours to
achieve that
80% additional
capacity charge
on the City's

19.2 kW
chargers (one
car plugged into
the dual
charger)
Tesla Model
Y 60 81 36 49 1.9 2.5 48 64.8 2.5 3.4
Tesla Model
3 60 82 36 49 1.9 2.6 48 65.6 2.5 3.4
Chevy Bolt 65 39 2.0 52 2.7
How much does electricity cost?
An EV charging rate will be composed primarily of the cost of electricity charged by Liberty Utilities. According to the posted February 1, 2025 Rate Brochure, the weighted average cost of electricity is $0.306813/kWh at the A-2 General Service rate (see Table 2).2 The A-2 rate includes demand charges above 200kw, and Blink chargers have charge management software that can keep demand low so as not to trigger the demand charge. Liberty adjusts rates sometimes multiple times in a single year by filing with the California Public Utilities Commission.3 Staff recommend indexing the EV charging cost per kWh to the cost of electricity, to be able to change the rate charged to customers as Liberty changes rates and/or as the CPI increases on the O&M contract without having to go to council every time this happens. Table 2 shows the current A-2 rate and a weighted average.

Table 2:

A-2 Medium General Services Rate, February 1, 2025 Rate Brochure $ 0.337900 Cost of electricity per kWh (Liberty -2, Medium Commercial WINTER). This is billed 8 of 12 billing periods a year.
$ 0.244640 Cost of electricity per kWh (Liberty -2, Medium Commercial SUMMER). This is billed 4 billing periods a year.
$ 0.306813Weighted Average. Does not include demand charge. Blink allows for charge management, which allows us to keep total load within a defined maximum.

Cost of Operations & Maintenance of the chargers
In addition to electrical costs, the stations will be monitored and maintained by Blink Network, LLC via an annual Operations & Maintenance (O&M) agreement, as mentioned. The software allows Blink to monitor the stations remotely via cell signal for faults, receive feedback from users, and provide repairs for the stations as-needed. The cloud monitoring also allows City staff to set charging parameters (time limits, waitlists, etc.), as well as charging rates. This function is

2 Liberty Utilities February 1, 2025 Rate Brochure, https://california.libertyutilities.com/uploads/Liberty%20Rate%20Brochure%202-2025.pdf 3 Liberty posts the most recent rates at this site: https://california.libertyutilities.com/truckee/residential/rates-and-tariffs/electrical.html 395
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included in the O&M cost and is estimated to be approximately $0.05/kWh and is indexed to the CPI (San Francisco Bay Area) and is based on a certain estimated utilization rate of the chargers.

Cost of Network and Backend Support, and Session Fee
The City’s contract with Blink Network LLC includes the cost of network and backend support with Blink keeping 8% of the transaction, which is the cost of charging and the cost of overstaying (i.e. the Parking Fee). Blink also collects a session fee of $0.49 per charging session in order to support the cost of new technologies and roaming with other networks and providers.

Cost of Equipment and Installation
The cost of installation is highly variable depending on the site. Retrofitting charging infrastructure into the Bellamy Garage was more expensive than the brand-new Recreation Center. Staff estimate that a per kWh cost of equipment is $0.0140, based on actual cost and a life of 10 years and an estimated utilization rate. Staff estimate the cost of installation at $0.0343 per kWh over 10 years and the same utilization rate. Together these are about $0.05 per kWh Cost of a Parking Fee for overstayers
A rate structure that includes a fee for those whose vehicles remaining in the charging space once charging is complete would act to incentivize turnover, thereby maximizing EV charger availability.

Blink refers to this as a ‘Parking Fee’. City staff propose a Parking Fee of $0.50/minute to commence after a 15-minute grace period before that Parking Fee clock commences.

Summary of Proposed Cost of EV Charging
In summary, the proposed cost of EV charging is a rate structure built on: whatever is the current cost of electricity at Liberty’s A-2 rate, the current cost of O&M (indexed to the CPI, as contracted), an estimate of cost recovery for equipment and installation, Blink’s 8% on the kWh, a $0.50 per minute Parking Fee after a 15-minute grace period, and Blink’s $0.49 session fee. Note that Blink will take 8% of the Parking Fee. Staff commits to evaluating the appropriateness of this cost structure after about a year of data.

At current rates, the per kWh cost of electricity is $0.3068, plus $0.0229 per kWh for O&M, plus $0.0482 per kWh for equipment and installation, and Blink’s 8%, all equals $0.4108 per kWh. See Table 3 for a breakdown and example of costs and how revenues are broken down.

Table 3: Proposed EV Charging rate structure and example of cost breakdown.

Per kWh
cost
Example to
purchase
39 kWh
(60%
charge on a
Chevy Bolt)
Example to
purchase
39 kWh
and
overstay
10min
Current cost of electricity at Liberty’s A2 rate $0.3068 $11.97 $11.97 Current estimated per kWh cost of O&M $0.0229 $0.89 $0.89 Estimated cost recovery for equipment
and installation per kWh $0.0482 $1.88 $1.88
Blink’s 8% of the kWh $0.0329 $1.28 $1.28
$0.50 per minute Parking Fee 0 $5.00
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Subtotal $0.4108 $16.02 $21.02
Blink's 8% $0.0329 $1.28 $1.68
City's 92% $0.3780 $14.74 $19.34
Blink’s $0.49 session fee 0.49 0.49
Total (Cost to Customer) $16.51 $21.51
Total for City $14.74 $19.34
Total for Blink $1.77 $2.17
Financial Implications:

Revenue will be collected into budget line item -35339, EV charging stations revenue accounts, by facility, to cover cost of providing the service. Blink will collect all revenue and remit payment to the City. The attached City Council and South Tahoe Joint Powers Parking Financing Authority resolutions establish the electric vehicle charging rates at the city locations and at the Parking Garage and grant authority to staff to update the rates periodically to accommodate actual changes in electricity rates and operations & maintenance costs (due to changes in the Consumer Price Index) in order to maximize cost recovery without the need to return to council to do so.

Environmental Considerations:Staff has determined that the fee is exempt from CEQA pursuant to Public Resources Code Section 21065, as the fee does not constitute a “project” within the meaning of CEQA in that it has no potential to cause either a direct physical change to the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review.

Policy Implications: The public facing EV charging project supports the City’s Strategic Priorities:
 1.4 Transportation via “electrification of the transportation system is a top priority.”  1.5 Carbon Neutrality to “pursue opportunities for electrification, including transitioning fleet vehicles to electric and building robust EV charging infrastructure by 2025.” The project advances the City’s Climate Action Plan:
 EV-1, Promote and incentivize EVs and EV chargers.

The public facing EV charging project supports community GHG emissions reductions, contributing to the science-based emissions reductions target established in Resolution No. 2022- 088.
397
Resolution 2025-XXX March 25, 2025 Page 1 of 2
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
March 25, 2025
Establishing an Electric Vehicle Charging Rate for Public Chargers

BACKGROUND
A. Governor Newsom’s Executive Order N-79-20 set a goal of 100% of in-state sales of new cars and trucks be zero-emission by 2035.

B. The majority of zero-emissions vehicles will be electric vehicles that will require charging.

C. The City is desirous of providing public electric vehicle charging infrastructure.

D. Certain aspects of the state and municipal code authorize the imposition and collection of fees to defray the costs of providing certain programs and services.

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

1. Effective immediately, the City’s electric vehicle charging rate shall be structured to:
a. the current cost of electricity per kWh (i.e. indexed to the current cost per kWh, which is the weighted average of winter and summer periods, according to Liberty Utilities February 1, 2025, Rate Brochure),
b. City’s estimated cost of Operations & Maintenance per kWh, c. City’s estimated cost of equipment and installation per kWh, d. Blink’s 8% on top of the kWh (items 1a – 1c)
e. a Parking Fee of $0.50/per minute commencing after a 15-minute grace period, f. Blink’s per session fee of $0.49,

2. The per kWh component will be adjusted to accommodate actual changes in electricity rates and Operations & Maintenance costs (due to changes in the Consumer Price Index) in order to maximize cost recovery and minimize the need to return to council to do so.

3. The City Clerk shall certify to the adoption of this Resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.

Adopted by the City of South Lake Tahoe City Council on March 25, 2025 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Tamara Wallace, Mayor
398
Resolution 2025-XXX March 25, 2025 Page 2 of 2
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
399
Resolution 2025-XXX March 25, 2025 Page 1 of 2
Resolution 2025-XXX
Adopted by the South Tahoe Joint Powers Parking Financing Authority March 25, 2025
Establishing an Electric Vehicle Charging Rate for Public Chargers at the Parking Garage

BACKGROUND
A. Governor Newsom’s Executive Order N-79-20 set a goal of 100% of in-state sales of new cars and trucks be zero-emission by 2035.

B. The majority of zero-emissions vehicles will be electric vehicles that will require charging.

C. The City and the South Tahoe Joint Powers Parking Financing Authority (STJPPFA) are desirous of providing public electric vehicle charging infrastructure at the Parking Garage.

D. Certain aspects of the state and municipal code authorize the imposition and collection of fees to defray the costs of providing certain programs and services.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the Governing Boards of the South Tahoe Joint Powers Parking Financing Authority hereby finds, determines, resolves and orders as follows:

1. Effective immediately, the electric vehicle charging rate at the Parking Garage shall be structured to:
a. the current cost of electricity per kWh (i.e. indexed to the current cost per kWh, which is the weighted average of winter and summer periods, according to Liberty Utilities February 1, 2025, Rate Brochure),
b. City’s estimated cost of Operations & Maintenance per kWh, c. City’s estimated cost of equipment and installation per kWh, d. Blink’s 8% of the kWh (items 1a-1c)
e. a Parking Fee of $0.50/per minute commencing after a 15 minute grace period, f. Blink’s per session fee of $0.49,

3. The STJPPFA Secretary shall certify to the adoption of this Resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.

Adopted by the South Tahoe Joint Powers Parking Financing Authority on March 25, 2025 by the following vote:

Yes:

No:

Absent:

Abstain:
400
Resolution 2025-XXX March 25, 2025 Page 2 of 2
________________________ Date:_________
Tamara Wallace, Chair
Attest:
________________________
Susan Blankenship, Secretary
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
401
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: March 25, 2025
Agenda Item #:9
Agenda Item: Electric Vehicle Parking Ordinance (First Reading) Executive Summary: The City plans to install electric vehicle chargers in city parking facilities, and desires to be able issue parking citations to those who are not actively charging their vehicles in the designated spaces. If approved by City Council, the second reading and adoption of the Ordinance and Resolution identifying Electric Vehicle Parking in Public Spaces will be brought back to Council on April 22, 2025.

Requested Action / Suggested Motions: Pass a Motion to hold a first reading (by title only) of an Ordinance establishing electric vehicle parking regulations and refer to a second reading and adoption to the April 22, 2025, meeting.

Responsible Staff Member: Sara Letton, Sustainability Coordinator Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney
Attachments:
01 - Staff Report EV Parking Ordinance (First Reading).docx 02-Ordinance EV Parking on Public Spaces.docx
03 - Resolution-Electric Vehicle Parking Spaces on City Property.docx 402
Council Agenda Report- March 25, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: March 25, 2025
Title: Electric Vehicle Parking Ordinance (First Reading) Location: Citywide
Responsible Staff Member: Sara Letton (530) 542-6175
Background: California Assembly Bill 1452 provides that by ordinance a local authority may designate parking spaces for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes, codified as California Vehicle Code §22511.

The City of South Lake Tahoe owns and operates numerous parking facilities. Facilities targeted for hosting electric vehicle (EV) chargers have been identified in the EV Charger Siting Plan, adopted by council in 2022. The City’s Climate Action Plan and greenhouse gas emissions inventories report that the transportation sector accounts for roughly a third of total emissions.

Adoption of electric vehicles, and the supporting charging infrastructure, is a quantifiable impact on local emissions, with installation of nonresidential public EV charging infrastructure as the strategy metric in the Climate Action Plan.

Issue and Discussion: The City will soon be hosting 32 parking spaces with available electric vehicle charging: 12 spaces have been identified for EV charging at 3069 Harrison Avenue; 14 parking spaces will have chargers at 1 Bellamy Court; and six spaces will have chargers at 1100 Rufus Allen Blvd.

By adopting the Electric Vehicle Parking Ordinance, and by designating the spaces identified in this Resolution, the South Lake Tahoe Police Department will be empowered to cite those who are parked in a designated electric vehicle parking space while not charging the vehicle, nor incurring a Parking Fee (sometime referred to as an ‘overstay fee’), at the addresses designated.

High turnover is desirable in these spaces in order to provide good customer service.

A citable offense is easy for code enforcement to identify. A car parked in a space while the LEDs are green indicates the car is neither charging nor overstaying its charging session and thus is eligible for a citation. A car that is fully charged and is beyond the grace period while still parked will have solid blue LEDs indicating it is paying a per minute Parking Fee. A car with blinking blue LEDs is actively charging and paying a per kwh Charging Fee.

Financial Implications: City of South Lake Tahoe Police Department Code Enforcement will train parking enforcement staff on this new citable offense. The violation will be cited under

4.25.435 and a fee of $75, and amend the Master Fee Schedule to include this. 403
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Environmental Considerations: This is not a project subject to review under the California Environmental Quality Act (CEQA) under CEQA guidelines section 15378A(b)(2) (continuing administrative or maintenance activities, such as purchase for supplies).

Policy Implications: The proposed ordinance supports the City’s Strategic Priorities:
 1.4 Transportation via “electrification of the transportation system is a top priority.”  1.5 Carbon Neutrality to “pursue opportunities for electrification, including transitioning fleet vehicles to electric and building robust EV charging infrastructure by 2025.” The project advances the City’s Climate Action Plan:
 EDT-1, Promote and incentivize EVs and EV chargers. The metric tracks the number of nonresidential EV charging stations installed.

The project supports community GHG emissions reductions, contributing to the science-based emissions reductions target established in Resolution No. 2022-088. 404
Ordinance 2025-XXX April 22, 2025 Page 1 of 3
Ordinance 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
April 22, 2025
An Ordinance Adding Sections 4.25.435 (Electric Vehicle Charging Stations in Public Parking Areas) and 4.25.605 (Electric Vehicle Charging Stations) to Title 4 of the South Lake Tahoe City Code to Authorize Enforcement of Designated Electric Vehicle Parking at Charging Stations in Public Parking Areas

FINDINGS
A. On October 20, 2020, the City Council adopted the Climate Action Plan to create a roadmap for achieving the goals laid out in City Council Resolution No. 2017-26, setting a goal to reduce carbon emissions 50 percent below 2015 levels by 2030 and 80 percent below 2015 levels by 2040. The Climate Action Plan includes Action EV-1 (Promote and incentivize EVs and EV chargers), with a specific action item to provide charging stations throughout the City at public facilities, parks, beaches, campgrounds, and other high-use parking areas.

B. The City is planning to add electric vehicle charging stations in public parking areas.

C. California Vehicle Code section 22511(a)(1) authorizes local authorities to designate, by ordinance or resolution, stalls or spaces in an off-street parking facility owned or operated by the local authority for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes.

D. California Vehicle Code section 22511(a)(2) authorizes local authorities to designate, by ordinance or resolution, stalls or spaces on a public street within its jurisdiction for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes.

E. California Vehicle Code section 22511 authorizes local authorities to remove and store any vehicle that is found illegally parked in the parking stalls or spaces that have been designated for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes, provided that the required signage has been posted.

F. California Vehicle Code section 22511.1(a) states that a vehicle shall not park or occupy a parking space designated under Section 22511 unless the vehicle is connected for electric vehicle charging purposes.

G. California Vehicle Code section 22511.1(b) states that a person shall not obstruct, block, or otherwise inhibit access to parking spaces designated under Section 22511.

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

SECTION 1. Article V (Stopping, Standing, and Parking) of Chapter 4.25 (Motor Vehicles and Traffic) of Title 4 (Police/Code Enforcement) of the South Lake Tahoe City Code is amended to add Section 4.25.435 to read as follows:

4.25.435 Electric vehicle charging stations in public parking areas 405
Ordinance 2025-XXX April 22, 2025 Page 2 of 3
A. Definitions
For the purposes of this section, the following words and phrases shall be defined as follows:
“Actively charging” means the time during which the connector from the charger at a charging station is inserted into the inlet and electrical power is being transferred for the purpose of recharging an electric vehicle’s onboard battery, as indicated by the electric vehicle charging station monitor display. “Charger” means an electrical component assembly or cluster of component assemblies designed specifically to charge batteries or other energy storage devices within electric vehicles. “Connected” means the connector of an electric vehicle charging station is inserted into the inlet for an electric vehicle.
“Electric vehicle” means either a vehicle fueled entirely by electricity stored in the onboard battery or a plug-in hybrid vehicle fueled by a battery and another fuel source such as gasoline. “Electric vehicle charging station” means a parking stall or space, which is designated by resolution in accordance with California Vehicle Code section 22511, as may be amended, for the exclusive purpose of charging an electric vehicle, and is located on a public street or a municipally owned or operated off-street parking facility.

B. Restrictions.

1. It shall be unlawful for a person to park or leave standing any vehicle in an electric vehicle charging station unless the vehicle is an electric vehicle that is actively charging or overstaying while paying a Parking Fee.

2. It shall be unlawful for a person to obstruct, block, or otherwise bar access to an electric vehicle charging station, unless otherwise authorized by subsection (B)(1) of this section.

C. Enforcement. Subject to the signage requirements set forth in California Vehicle Code section 22511, as may be amended, a vehicle in violation of subsection (B) may be cited and/or removed by towing.

SECTION 2. Article VII (Parking Garage Facility Regulations) of Chapter 4.25 (Motor Vehicles and Traffic) of Title 4 (Police/Code Enforcement) of the South Lake Tahoe City Code is amended to add Section 4.25.605 to read as follows:

4.25.605 Electric vehicle charging stations. Electric vehicle charging stations within the parking garage facility are subject to section 4.25.435 of this code.

SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 4. The City Council finds that adoption of the proposed Ordinance is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines 406
Ordinance 2025-XXX April 22, 2025 Page 3 of 3
section 15378(b)(2) because the Ordinance is general policy and procedure making related to enforcement of parking regulations.

Adopted by the City of South Lake Tahoe City Council on April 22, 2025 by the following vote:

Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
First Reading:

Published:

Second Reading:

Effective:

The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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Resolution 2025-XXX April 22, 2025 Page 1 of 2
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
April 22, 2025
City-owned Publicly Available Electric Vehicle Charging Locations and Establishment of $75 Parking Citation Fee under City Code Section 4.25.435

BACKGROUND
A. The City Council of the City of South Lake Tahoe (City) regulates parking within City limits and finds that designating parking spaces in public parking lots to allow for the charging of electric vehicles is in alignment with City Strategic Priorities 1.4 and 1.5.

B. The City of South Lake Tahoe has contracted for 10 dual port electric vehicle charging stations that will utilize 20 public parking spaces in City-owned parking facilities; and has agreed to lease to Tesla an additional 12 spaces to provide their superchargers.

C. The City of South Lake Tahoe has identified EV charging parking spaces within the following City-owned parking facilities: 3069 Harrison Avenue (12 spaces), 1 Bellamy Way (14 spaces), and 1100 Rufus Allen Blvd (6 spaces).

D. California Assembly Bill 1452, which provides that by ordinance a local authority may designate parking spaces for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes, codified as California Vehicle Code §2251.

E. Public parking spaces with electric vehicle charging stations are intended to be used for the exclusive purpose of charging electric vehicles.

F. The City desires to prohibit the parking of any vehicle in spaces designated for electric vehicle charging unless that vehicle is connected for electric charging purposes.

G. The City desires to incentivize the turnover of electric vehicles so as to maximize the availability of City-provided EV charging stations in pursuit of providing excellent customer service.

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

1. Designates the locations listed for electric vehicle parking only.

2. Establishes a $75 parking violation fine under City Code section 4.25.435 for a citable offence for illegal parking in an electric vehicle charging space.

Adopted by the City of South Lake Tahoe City Council on March 25, 2025 by the following vote:

Yes:
408
Resolution 2025-XXX April 22, 2025 Page 2 of 2
No:

Absent:

Abstain:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
409
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: March 25, 2025
Agenda Item #:10
Agenda Item: Fiscal Year 2024-2025 Mid-Year Budget Review, Amendments to the Allocated Permanent Position Listing, and Five-Year Financial Plan Update Executive Summary: The annual mid-year budget review is an essential element in maintaining the City's financial stability. It provides the City Council an opportunity to review the General Fund and other funds' budget status, adjust amounts in order to achieve a more accurate budget for the current fiscal year and help shape the development of next year's budget. The Five-Year Financial Plan update provides a forecast of revenues and expenditures for the General Fund over the five-year period for fiscal years 2025-2026 through 2029-2030. The Five-Year Financial Plan provides a multi-year view of the financial picture and allows for strategic discussions and planning needed to balance the General Fund budget and to prepare City Council for the upcoming update of the Strategic Plan 2023-2028 ensuring the City's financial sustainability in providing the community with core services, infrastructure and facilities improvements.

Requested Action / Suggested Motions: Pass a Resolution approving FY 2024-2025 Mid-Year Budget Adjustments, Amendments to the Allocated Permanent Positions Listing for Changes Made during MidYear and Corresponding Salary Tables.

Responsible Staff Member: Olga Tikhomirova, Director of Finance Joseph Irvin, City Manager Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report-Mid Year Budget.docx
02-Resolution Mid-year Budget 2024-2025.docx
03-Position Allocation 24-25 Mar 2025 (Exh. A to Reso).pdf 04-Salary Tables for Resolution 3.25.2025 (Exh. B to Reso).pdf 05-5yr Financial Plan & Assumptions as of March 2025.pdf 06-General Fund Undesignated FB Activity Mar 2025 rv.pdf 410
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City of South Lake Tahoe
Report to City Council
Meeting Date: March 25, 2025
Title: FY 2024-2025 Mid-Year Budget Review and Five-Year Financial Plan Update Location: All Departments
Responsible Staff Members: Joseph Irvin, City Manager, and Olga Tikhomirova, Director of Finance
Background: The annual mid-year budget review is an essential element in maintaining the City’s financial stability. It provides the City Council with an opportunity to make adjustments and operational corrections based on unanticipated changes and the goals and priorities set by the City Council for the current fiscal year. Additionally, it helps shape the development of the next year’s budget.

During the mid-year process, the City Manager and staff review the City’s fiscal condition and make recommendations to amend appropriations, if necessary. The recommended budget amendments address unanticipated events or items that may have occurred in the first half of the fiscal year. These amendments support the goals and initiatives outlined in the 2023-2028 Strategic Plan, adopted by the City Council on March 14, 2023.

In accordance with recommendations from financial experts and the Governmental Accounting Standards Board (GASB) on the importance for public agencies to conduct long-term financial planning, the City has been producing a Five-Year Financial Forecast annually since 2011. This forecast provides the public and City Council with critical information to guide financial and policy decisions.

When preparing the financial forecast, the City considers a variety of economic indicators to estimate revenues and expenditures over the five-year period. This multi-year analysis allows for strategic discussions and planning, ensuring the City’s long-term financial stability. Financial stability enables the City to provide core services, improve infrastructure and facilities, and address the City Council’s strategic priorities.

Issue and Discussion: The City’s FY 2024-2025 budget reflects a positive outlook. Overall, current-year operating revenues are projected to increase compared to the adopted budget.

Staff recommends increases to some non-major revenues as well as Property Tax revenue, while keeping Sales Tax and Transient Occupancy Tax budgets unchanged. Additional expenditure allocations are recommended for City services, capital projects, and for the implementation of City Council Strategic Priorities.

Mid-Year Budget Review
The total current General Fund budget, after the carry-forward appropriations and other adjustments approved by the City Council since the budget adoption (Attachment 06), shows a 411
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usage of $4,705,400 from General Fund Undesignated Excess Reserves. The major items contributed to this net expense include:
 $500,000 allocated in the adopted budget for projects that scored highly in the Participatory Budgeting Survey conducted in summer 2024.  $500,000 in additional contributions to the South Shore Transportation Management Association (SSTMA).
 $2,097,426 budgeted for Willdan Energy Upgrades project.  $1,254,374 in net carry-forward appropriations from FY 2024 for projects and purchases not completed in that fiscal year.
 $197,033 for year 1 payment for the Police Body Worn Cameras.  $156,567 in other miscellaneous changes and budget appropriations for various needs, as detailed in Attachment 06.

The City ended the previous fiscal year (2024-2025) with undesignated excess reserves of approximately $9.6 million. After the carry-forward and other appropriations described above, the remaining balance available for spending at the City Council’s discretion is approximately $4.9 million. The FY 2024-2025 mid-year budget adjustments propose the use of $2,719,224 of this surplus for critical operating and capital needs.

General Fund Revenue Adjustments
The recommended revenue adjustments for the General Fund total $2,022,408, including the following:
 Property Tax Revenue: +$475,000, based on the first of two installments of property tax revenues from the El Dorado County. The City is on the teeter plan, which requires the County distribute to the City full share of property tax based on current assessed values without regard to actual collections. The County retains all interest and penalties that result from delinquent tax payments.
 Interest Earnings: +$800,000, based on current actual investments and anticipated earnings.
 Business and Professions Tax: +$200,000, based on actual receipts in FY 2024 and anticipated receipts for FY 2025.
 Franchise Fees: +$200,000, based on actual receipts and an amended franchise agreement with South Tahoe Refuse.
 9-1-1 Fees: +$120,000, based on actual receipts in FY 2024.  Parking Citation Revenue: +$100,000, due to the expanded code enforcement program and FY 2025 year-to-date collection.
 Federal and State Reimbursements: +$48,570, primarily from FEMA for Management Cost during COVID pandemic and from CalOES for Fire Strike Team overtime reimbursement.
 Motorpool Internal Service Charges: -$100,000, based on anticipated FY 2025 charges.
 Real Property Transfer Tax: +$50,000, based on actual receipts in FY 2024.  Water Franchise Fees: +$40,000, based on actual receipts in FY 2024. 412
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 Miscellaneous Revenue Adjustments: +$29,836, covering a range of small revenue items, such as Golf Course revenues, Technology fee revenue collected with permits and Business License tax, and Motor Vehicle in Lieu Tax based on actual receipts in FY 2024.  Transfer in from Measure S Sales tax: +$45,078, to compensate General Fund for the actual cost of 7 Firefighters in FY 2024 (partially funded by the SAFER grant thru 2022).  Transfer in from Stormwater fund: +$9,924, for the Chipper Program Equipment Charges.
 Transfer in from Redevelopment Obligations Retirement fund: +$4,000, an increase for administrative cost reimbursement based on ROSP 2024-2025.

General Fund Expenditure Adjustments
The recommended expenditure adjustments for the General Fund total $4,741,632, which include the following categories and items:

Personnel Needs:
 +$98,768 for two new Full-Time Equivalent (FTE) positions for a portion of FY 2025: one Recreation Supervisor – Aquatics, and one Head Pool Lifeguard for the new Recreation Center.
 +$175,000 for additional temporary and seasonal staffing in Parks and Recreation department.
 +$525,999 for overtime, position reclassification, promotions, retirement and vacation payouts across multiple departments.
 +$267,073 for an increase in CalPERS Unfunded Accrued Liability (UAL) prepayment amount, based on the June 30, 2023 Actuarial Valuation Reports received in August 2024. These reports use demographic data and financial information through June 30, 2023, including the results of FY 2022-2023 investment return of 5.8%. This return fell short of the 6.8% target (the discount rate) which is necessary to maintain the funded level and prevent further increases to the UAL. As a result, the City, like all agencies serviced by CalPERS, saw higher UAL balances and corresponding payment amounts when the FY 2023 actuarial reports were published in the summer of 2024. When the City makes a UAL prepayment due in July, the total annual payments are discounted by 3.4%, resulting in savings of approximately $277K in payments to CalPERS. After accounting for lost interest revenue, the net savings for FY 2025 and FY 2026 is projected to be approximately $117K, based on the current interest rate of 4.5%.

Operational Needs:
 +$209,342 for General Government and Finance (including IT) needs, including software upgrades and increases to IT software subscription renewals, HR-related contracts, and leave balances payouts.
 +$145,000 for Police department needs, including overtime, fire alarm control system replacement, utility cost increases, and code enforcement uniforms.  +$29,000 for Fire department needs, including overtime, new hire medical testing, travel costs for strike team supported by an increase in revenue, communications, cameras and various tools.
 +$45,740 for Public Works needs, including truck rental, electricity and software cost increases.
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 +$248,679 for Parks and Recreation needs, including procurement services contract for furniture, fixtures, and equipment (FF&E) for the new Recreation Center, light pole banner project, Parks division carts replacement, tools and supplies, as well as electricity cost increases and HVAC servicing contract.
 +$100,000 for Transfer out to Snow Removal and Ice Arena funds to reimburse for additional costs incurred in FY 2024, and to Arts Programs fund for the new Recreation Center Mural Space art.

Capital Needs:
 +$1,470,531 to Transfer to the new Recreation Center Construction project for FF&E items procurement in preparation for the center’s opening next winter. This cost was not included in the contract with Roebbelen and was set to be addressed at a later time.

According to the Public Works Director staff report and presentation on August 8, 2023, the estimated cost was around $800,000 to $900,000, with the expectation that the Parks Foundation would assist in fundraising a portion of this amount. Fundraising efforts are currently underway but are progressing slowly. Additionally, the original estimate did not account for all required items. To ensure the new Recreation Center is ready for its opening in winter 2026, these budget appropriations are necessary for Tier 1 priority items. The amount includes contingency, staging, and price fluctuations. Any funding raised by the Parks Foundation for FF&E purposes can potentially offset the cost.

Furthermore, any leftover contingency funds provided by the General Fund or Measure S Sales Tax Fund will be returned to their respective funds and made available for City’s operational needs in the future.

Capital Improvement Program (CIP) Requests:
 +$326,000 Transfer out to Aloha Basin Drainage and Walkup Area Pipe Replacement projects.
 +$250,000 Transfer out to James Elois Drainage Project for construction cost.  +$100,000 Transfer out to Police Department parking lot repaving project required after Solar groundwork and installation.
 +$100,000 Transfer out for Police Department Roof replacement project for inspection costs.
 +$200,000 Transfer out to Citywide Energy Upgrade project for labor compliance, inspection, and permitting costs.
 +$400,000 Transfer out to Long Term Capital Replacement for Ice Arean Fire Suppression and Facility Painting to be completed as part of the Energy Upgrade project.

Not Included:
 +$500,000 – Estimated cost for EV Charging Stations Phase 1 construction. These budget appropriations will be requested when the contract is procured and brought to the City Council for approval.
 +$106,992 – City’s contribution to the South Tahoe Transit JPA for startup cost, including the costs for two new positions: Transit Manager (100% JPA funded) and Accountant (50% JPA funded). This will be brought to the City Council on March 25th.  +$17,682 – City’s cost for 50% of Accountant position.  +$200,000 – Lisa Maloff Way pavement rehabilitation (deferred to in-house). 414
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Measure S Sales Tax General Fund Revenues and Expenditure Adjustments  +$45,078 – Increase in Transfer out to the General Fund for an unreimbursed cost in FY 2024 for 7 Firefighters previously funded by SAFER grant.

The balance remaining in the Measure S Sales Tax fund, after the proposed allocation of $45,078, is approximately $1.0 million. Staff is not requesting any budget appropriations from this fund balance at this time, and it remains available for future allocations at the discretion of the City Council.

Cannabis Program Revenue Fund and Cannabis Grant Program According to the Cannabis Community Benefit Fee Revenue Allocation Policy, which stipulates that City Council will allocate up to 50 percent of the previous year’s revenue to the Communitywide Benefit Grant Program during a mid-year budget process, staff has proposed to appropriate $400,000 for this grant program in the current fiscal year, consistent with the allocation made in FY 2024. The total Cannabis Business & Professions Tax revenue collected in FY 2023-2024 was $897,293, with non-grant expenditures totaled $1,201,929. Of this amount, $950,000 was transferred to fund five CIP projects.
 +$400,000 – Increase in expense for appropriations towards the 2025 Cannabis Revenue Grant Program for FY 2024/2025.

The remaining available balance in the Cannabis Program Revenue Fund, after the proposed allocation for the 2025 grant program is approximately $0.6 million. Staff is not requesting any budget appropriations from this fund balance at this time, and it remains available for future allocations at the discretion of the City Council.

Other Non-General Fund Programs
Special Revenue Funds
 Various revenue and expense line items will see increases or decreases. Funds will either get their projected revenue increased, utilize available fund balances, require a General Fund contribution (as noted above), or transfer balances to the General Fund or other special revenue funds for program reimbursement.

CIP (Capital Improvement Program)
 Various CIP revenues and expenses will increase or decrease. These CIP projects are funded by transfers from the General Fund, as described earlier in this report. The budget adjustments also include reallocation of funding between projects due to project completions.

Enterprise Funds
 Revenues for these funds are projected to decrease by $371,000, primarily due to a decrease in Parking Garage revenues based on past year’s revenue collection. The increase in expenditures of $375,408 across all enterprise funds is largely due to the addition of $305,000 at the Airport for pavement maintenance, terminal and airfield repairs, professional services, overtime, and machinery and equipment, all funded through the available fund balance in that specific fund. 415
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Trust and Agency Fund
 An increase in interest revenue is projected for the Redevelopment Obligation Retirement Fund and the Bijou CFD fund, offset by an increase in administrative reimbursement costs in the former.

General Fund Five-Year Financial Plan
The Five-Year Financial Plan analyzes major known and projected future fiscal conditions to support informed long-term planning and decision-making regarding operational and capital improvement resources. The Plan focuses on the City’s General Fund and provides a forecast of revenues and expenditures for the five-year period from fiscal year 2025-2026 through 2029- 2030.

Key highlights of this Five-Year Financial Plan update include:
 Revenues are forecasted based on the previous year’s actuals and current economic trends and estimates.
o Major City Revenues - Property Tax, Transient Occupancy Tax and Sales Tax are expected to grow at a modest rate of 1% to 3%. Although Property tax revenue grew by 10% in FY 2023 and an additional 7% in FY 2024, this robust increase was a result of recent increases in property resale values and is not expected to continue based on current year projections from the El Dorado County Auditor-Controller office. o FY 2024 City TOT declined by 2.5% compared to FY 2023. The reduction in occupancy and average daily rates, as part of a post-pandemic self-correction, is stabilizing. Staff does not expect this decline to continue and projects a 1.25% growth in TOT revenue over the next several years, based on semi-optimistic projections and current trends.
o Project Area TOT saw an increase of 3.4% in FY 2024, largely due to the full reopening of the Margaritaville hotel after a remodel. Similar to City TOT, this revenue is projected to grow at a rate of 1.25% over the next several years. o The plan assumes that approximately $1.8 million from Measure S Sales Tax fund in FY 2025 will be used to fund 7 Firefighters previously supported by the SAFER grant, 50% of the Fire Marshal position, and 100% of one Police Lieutenant position. This amount is expected to grow to $2.2m by FY 2030.
o Parks and Recreation Revenues are projected based on full operations in FY 2026 and the subsequent four years, though they do not yet reflect a partial shift of revenues and expenditures expected after the new Recreation Center opens in January 2026.

The City is projected to bear the net cost of operating the new Rec Center, which is expected to be similar to the current net cost of operating Recreation programs.

Measure P TOT revenue will only cover the debt service on the Lease Revenue Bonds issued in 2023 for the construction of the new Rec Center and will not be available to fund its operations.
 Expenditures:
o The majority of personnel and operating expenditures are projected to increase between 2% and 3% annually.
o Personnel expenditures include the full three-year cost of the Classification & Compensation Study.
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o Projected personnel costs do not incorporate the two new Recreation positions requested during this mid-year budget review; these positions are expected to be covered by the new revenues when the Recreation Center opens. o FY 2025 CalPERS pension cost reflects 0.7% to 1.5% increases in normal cost rates for Safety PEPRA and Safety Classic members, and a 2.1% decrease for Miscellaneous members based on 2023 Actuarial Reports.
o Unfunded Accrued Liability (UAL) cost projections are based on a 9.5% investment return for CalPERS for the fiscal year ended June 30th, 2024. o The forecast assumes a prepayment of CalPERS UAL annually in July. Even with increased interest rates, the City will save at least $100K from the prepayment. o All one-time large capital expenditures and contributions have been removed from the projections moving forward.
o No major capital expenditures, such as road rehabilitation or vehicle replacement, are included in the main General Fund for FY 2026 and beyond and are projected to be funded by Measure S sales tax general fund.

As of September 30, 2024, the undesignated excess reserves amounted to $9.6 million, excluding the required 25% reserve of $14.8 million for FY 2025, the $2.0 million set-aside for anticipated deficit in future years (approved by City Council with the FY 2024 budget adoption), and the $1.0 million set-aside for an affordable housing project (from the participatory budgeting community survey approved by City Council with the FY 2025 budget adoption). The FY 2025 amended budget uses $4.7 million from the $9.6 million in undesignated excess reserves available at September 30th, before mid-year adjustments.

The table below presents a summary of the 2026-2030 General Fund Five-Year Financial Plan.

The preliminary estimates for FY 2025-2026, which include the assumptions previously listed in the Key Highlights section, indicate that the General Fund for the upcoming fiscal year is projected to have a deficit of $3.1 million. Programmed revenue increases are being absorbed by growing personnel and other costs, contributing to an on-going projected General Fund deficit for the subsequent four years. It will be necessary in the upcoming budget year to use the $2.0 million set-aside, and potentially seek cuts in operational expenditures, or use the available undesignated excess reserves while other strategies for deficit remediation are explored.

The Finance Department will begin the next fiscal year’s budget process in April 2025. Staff will continue examining various strategies to achieve a balanced budget in the upcoming year while continuing to implement the City Council’s Strategic Priorities.

Measure S Sales Tax General Fund Five-Year Projections
Measure S sales tax is projected to generate $8.1 million on average annually for the next five years. The preliminary projected uses for FY 2026 include:

Actual Actual Budget Projected Projected Projected Projected Projected 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 Rev. $58,672,940 $62,404,855 $60,256,106 $60,908,006 $60,940,201 $61,999,575 $63,038,573 $64,393,637 Exp. $54,164,508 $61,975,811 $64,961,506 $64,053,073 $63,264,550 $63,762,401 $65,280,260 $66,805,634 FB Inc/(Decr) $4,508,432 $429,044 ($4,705,400) ($3,145,067) ($2,324,349) ($1,762,826) ($2,241,687) ($2,411,996) General Fund Five-Year Plan Summary 2026 to 2030
417
Council Agenda Report March 25, 2025 Page 8 of 8
 $1.9 million for Fire Station II Staffing, 50% of the Fire Marshal position, and 100% of the Police Lieutenant position.
 $166,000 for city-wide sidewalk snow removal.
 $3.5 million for road rehabilitation and expanded in-house street maintenance and snow removal programs.
 $1.2 million for snow removal vehicle and equipment replacement, debt service payments, stormwater management program and extended warranty payments for the new communications system.
 $2.2 million is projected to be available in each of the subsequent four years for Fire Station III construction bond financing debt service.

Attachment 05 provides a detailed analysis of the primary General Fund revenues by type and expenditures by department, as well as Measure S Sales Tax general fund revenues and financing uses through FY 2030.

Financial Implications: The General Fund budget is currently utilizing $4.7 million of the available $9.6 million in undesignated excess reserves for one-time expenditures. The recommended mid-year net budget appropriations of $2,719,224 will reduce the available undesignated reserves balance to approximately $2.1 million. Several requests from these excess reserves are pending, including $500K for the EV Charging Stations Phase 1 construction and $107K for the City’s portion of the South Tahoe Transit JPA startup budget.

Completion of the 2024-2025 mid-year budget process will ensure continued operations through the end of the fiscal year and enable City staff to continue implementing the City Council’s priorities.

In addition to the mid-year budget appropriations, the accompanying resolution amends the City’s Allocated Position Listing by adding two new FTEs, approves salary schedules for one new position, and updates the salary schedule for one existing position due to reclassification.

The fiscal impact of this action is included in the proposed budget adjustments.

The General Fund Five-Year Financial Plan update provides an analysis of the economic factors driving the City’s revenues base, specific revenue sources available to the City, and the projected known obligations at the time of the plan update. Multi-year financial planning is required as part of the City’s Financial Policies (Financial Planning) and is an essential tool for developing budget guidelines and evaluating the future impact of current-year decisions.

Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies) Policy Implications: Compliance with City Financial Policies: Budget Management, Section E and Financial Planning, Section B.
418
Resolution 2025-XXX March 25, 2025 Page 1 of 3
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
March 25, 2025
Approving FY 2024-2025 Mid-Year Budget Adjustments and
Amendments to the Allocated Permanent Position Listing
for Changes Made During Mid-Year

BACKGROUND
A. The Mid-year budget review is recommended as part of the City’s Financial Policies – Budget Management.

B. The City Council Priorities 2023-2028 include priorities and goals, some of which are included in the fiscal year 2024-2025 mid-year budget adjustments.

C. The City Council wishes to amend the 2024-2025 Fiscal Year Total Budget for funding of continued operations and one-time costs through the end of the fiscal year.

D. There are staffing level changes approved which will amend the allocated position listing as described below (mid-year amendments reflect partial year). a. Establish one (1) full-time Recreation Supervisor (Aquatics) position. b. Eliminate one (1) full-time Events Coordinator position. c. Establish one (1) full-time Marketing & Events Coordinator position. d. Add one (1) full-time Head Pool Lifeguard position.
e. Eliminate one (1) full-time Complete Streets Program Manager position. f. Add one (1) full-time Assistant/Associate Planner (Transportation) position. g. Add one (1) full-time Engineering Technician I/II position.

E. The City Manager and Director of Finance recommend the budget adjustments summarized on the next page.
419
Resolution 2025-XXX March 25, 2025 Page 2 of 3
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED that the City Council of the City of South Lake Tahoe:

1. Adopts the 2024-2025 Fiscal year budget for the recommended adjustments listed above.

2. Adopts changes to the attached allocated position listing and new and amended salary tables, attached hereto as Exhibits “A” and “B,” respectively.

Adopted by the City of South Lake Tahoe City Council on March 25, 2025 by the following vote:

Yes:

No:

Absent:

Abstain:

Revenue Expense Net Change
Increase/(Decrease) (Increase)/Decrease Revenue/(Expense) General Fund:
100 General Fund ** $ 2,022,408 $ (4,741,632) $ (2,719,224) 102 General Fund - Measure S Sales Tax ** $ - $ (45,078) $ (45,078) Total General Fund $ 2,022,408 $ (4,786,710) $ (2,764,302) Other Funds:
201 Gas Tax ** $ - $ (94,050) $ (94,050)
207 Snow Removal $ 96,645 $ (7,000) $ 89,645
210 Vehicle Replacement $ 15,000 $ - $ 15,000
215 Disaster Relief/Preparation $ 10,231 $ - $ 10,231
216 Transit Center Explore Tahoe ** $ - $ (8,000) $ (8,000) 217 Arts Programs ** $ 10,000 $ (14,000) $ (4,000)
220 Measure P TOT $ 200,000 $ - $ 200,000
221 Ice Arena $ 70,000 $ - $ 70,000
223 Cannabis Program ** $ - $ (400,000) $ (400,000)
236 EMS - General Fund ** $ - $ (46,677) $ (46,677)
244 Solid Waste $ 65,000 $ - $ 65,000
245 Stormwater ** $ - $ (20,155) $ (20,155)
301 City CIP ** $ 3,141,276 $ (3,181,909) $ (40,633)
310 Long Term Capital $ 400,000 $ (400,000) $ -
501 Airport Enterprise Fund ** $ 9,000 $ (305,000) $ (296,000) 520 Parking Garage ** $ (380,000) $ (31,000) $ (411,000) 550 Transit Operations ** $ - $ (39,408) $ (39,408)
711 Bijou ECP CFD $ 1,000 $ - $ 1,000
725 Redevelopment Obligation Retirement Fund$ 100,000 $ (4,000) $ 96,000 Total Other Funds $ 3,738,152 $ (4,551,199) $ (813,047) Total All Funds $ 5,760,560 $ (9,337,909) $ (3,577,349) ** Fund Balance Available
420
Resolution 2025-XXX March 25, 2025 Page 3 of 3
______________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
421
Allocated Permanent Positions
Authorized/ Authorized/ Authorized/ Authorized/ Authorized/ Appropriated Appropriated Appropriated Appropriated Frozen Positions Positions Positions Positions Positions
Department/Positions 23/24 Adopted thru May'24 24/25 Adopted thru Mar'25 24/25 Budget

CITY COUNCIL
Council Member (Elected) Department Total 5.00 5.00 5.00 5.00 0.00

CITY CLERK
City Clerk (Elected) 1.00 1.00 1.00 1.00
Assistant City Clerk 1.17 1.17 1.00 1.00
Department Total 2.17 2.17 2.00 2.00 0.00

CITY TREASURER
City Treasurer (Elected) Department Total 1.00 1.00 1.00 1.00 0.00

CITY MANAGER DEPARTMENT
City Manager 1.00 1.00 1.00 1.00
Assistant City Manager 1.00 1.00 1.00 1.00
Communications and Project Specialist 1.00 1.00 1.00 1.00 Data and Innovation Program Manager 0.00 0.00 1.00 1.00 Sustainability Coordinator 1.00 1.00 1.00 1.00

4.00 4.00 5.00 5.00
Human Resources
Human Resources Manager 1.00 1.00 1.00 1.00
Principal &/or H.R. Analyst 2.00 2.00 2.00 2.00
Total 3.00 3.00 3.00 3.00 0.00
Department Total 7.00 7.00 8.00 8.00 0.00

CITY ATTORNEY
City Attorney 1.00 1.00 1.00 1.00
Assistant City Attorney 1.00 1.00 1.00 1.00
Risk Manager 1.00 1.00 1.00 1.00
Paralegal 1.00 1.00 1.00 1.00
Department Total 4.00 4.00 4.00 4.00 0.00

FINANCE DEPARTMENT
Director of Finance 1.00 1.00 1.00 1.00
Total 1.00 1.00 1.00 1.00 0.00
Financial Services
Financial Services Supervisor 1.00 1.00 1.00 1.00
Accountant I, II 1.00 1.00 1.00 1.00
Accountant I / Payroll Coordinator 1.00 1.00 1.00 1.00
Principal Management Analyst - Purchasing and Grants 1.00 1.00 1.00 1.00 Total 4.00 4.00 4.00 4.00 0.00
Revenue
Accounting Technician I, II 2.00 2.00 2.00 2.00
Supervising Accounting Technician 1.00 1.00 0.00 0.00
Assistant Management Analyst 0.00 0.00 1.00 1.00
Accountant I/II 1.00 1.00 1.00 1.00
Total 4.00 4.00 4.00 4.00 0.00
Information Systems
Information Systems Supervisor 1.00 1.00 0.00 0.00
Information Systems Manager 0.00 0.00 1.00 1.00
Network Systems Administrator 1.00 1.00 1.00 1.00
Information Systems Technician 1.00 1.00 1.00 1.00
Total 3.00 3.00 3.00 3.00 0.00
Department Total 12.00 12.00 12.00 12.00 0.00
1 of 3
422
Allocated Permanent Positions
Authorized/ Authorized/ Authorized/ Authorized/ Authorized/ Appropriated Appropriated Appropriated Appropriated Frozen Positions Positions Positions Positions Positions
Department/Positions 23/24 Adopted thru May'24 24/25 Adopted thru Mar'25 24/25 Budget

DEVELOPMENT SERVICES DEPARTMENT
Director of Development Services 1.00 1.00 1.00 1.00
Administrative Clerk I, II 1.00 1.00 1.00 1.00
Total 2.00 2.00 2.00 2.00 0.00
Planning
Planning Manager/Environmental Planner 1.00 1.00 1.00 1.00 Associate Planner, Assistant Planner 2.00 2.00 2.00 2.00 Sr. Planner 1.00 1.00 1.00 1.00
Development Services Technician 0.00 0.00 0.00 0.00 1.00 Total 4.00 4.00 4.00 4.00 1.00
Housing
Housing Manager 1.00 1.00 1.00 1.00
Associate Planner, Assistant Planner- Housing 1.00 1.00 1.00 1.00 Associate Management Analyst 1.00 1.00 1.00 1.00
Program Coordinator 1.00 1.00 1.00 1.00

4.00 4.00 4.00 4.00 0.00
Building and Safety
Building Official 1.00 1.00 1.00 1.00
Pr Bldg & Sr Bldg Inspector, Bldg Inspector, Hsng Insp. 4.00 4.00 4.00 4.00 Sr. Permit Center Technician, Permit Center Technician 2.00 2.00 2.00 2.00 Total 7.00 7.00 7.00 7.00 0.00
Department Total 17.00 17.00 17.00 17.00 1.00

PUBLIC WORKS DEPARTMENT
Director of Public Works 1.00 1.00 1.00 1.00
Capital Program and Facilities Program Manager 1.00 1.00 1.00 1.00 Office Manager 1.00 1.00 1.00 1.00
Total 3.00 3.00 3.00 3.00 0.00
Engineering
Construction Engineer 0.00 0.00 0.00 0.00 1.00
Complete Streets Program Manager 1.00 1.00 1.00 0.50
GIS Analyst 1.00 1.00 0.00 0.00
Resident Engineer / Resident Inspector 1.00 1.00 0.00 0.00 Engineering Manager 0.33 0.67 0.00 0.00
Associate Civil Engineer, Assistant Engineer 2.50 0.00 0.00 0.00 Associate Civil Engineer, Associate Architect 0.00 2.50 4.00 4.00 Associate Planner, Assistant Planner (Transportation) 0.00 0.00 0.00 0.50 Engineering Technician I, II 1.00 1.00 1.00 1.50
Total 6.83 7.17 6.00 6.50 1.00
Maintenance Operations / Snow Removal
Maintenance Manager 2.00 2.20 2.17 2.17
Lead Maintenance Technician 2.00 2.50 3.00 3.00
Maintenance Technician I, II, III, IV, V 16.00 15.50 15.00 15.00 Total 20.00 20.20 20.17 20.17 0.00
Fleet Maintenance
Maintenance Manager - Fleet 1.00 1.00 1.00 1.00
Equipment Mechanic I, II, III 6.00 6.00 6.00 6.00
Fleet Control Specialist 1.00 1.00 1.00 1.00
Total 8.00 8.00 8.00 8.00 0.00
Airport
Airport Manager 1.00 1.00 1.00 1.00
Airport Maintenance Supervisor 1.00 1.00 1.00 1.00
Administrative Assistant I, II 1.00 1.00 1.00 1.00
Maintenance Technician I, II, III, IV, V 1.00 1.00 1.00 1.00 Total 4.00 4.00 4.00 4.00 0.00
Department Total 41.83 42.37 41.17 41.67 1.00
2 of 3
423
Allocated Permanent Positions
Authorized/ Authorized/ Authorized/ Authorized/ Authorized/ Appropriated Appropriated Appropriated Appropriated Frozen Positions Positions Positions Positions Positions
Department/Positions 23/24 Adopted thru May'24 24/25 Adopted thru Mar'25 24/25 Budget

PARKS AND RECREATION DEPARTMENT
Director of Parks and Recreation 1.00 1.00 1.00 1.00
Total 1.00 1.00 1.00 1.00
Recreation
Administrative Assistant I, II 1.00 1.00 1.00 1.00
Recreation Manager 1.00 1.00 1.00 1.00
Maintenance Manager - Recreation 0.00 0.33 1.00 1.00
Recreation Supervisor - Acquatics 0.00 0.00 0.00 0.42
Events Coordinator 1.00 1.00 1.00 0.50
Marketing and Events Coordinator 0.00 0.00 0.00 0.50
Recreation Program Coordinator 0.00 0.42 1.00 1.00
Head Pool Lifeguard 1.00 1.00 1.00 1.42
Total 4.00 4.75 6.00 6.84
Parks
Maintenance Manager - Parks 1.00 1.00 1.00 1.00
Lead Maintenance Technician 1.00 1.00 1.00 1.00
Maintenance Technicians I, II, III, IV,V 7.00 7.00 7.00 7.00 Total 9.00 9.00 9.00 9.00
Department Total 14.00 14.75 16.00 16.84 0.00

FIRE DEPARTMENT
Fire Chief 1.00 1.00 1.00 1.00
Fire Division Chief (Grant Funded) 0.00 0.50 1.00 1.00
Fire Marshall 1.00 1.00 1.00 1.00
Fire Battalion Chief 3.00 3.00 3.00 3.00
Fire Captain 9.00 9.00 9.00 9.00
Fire Engineer 9.00 9.00 9.00 10.00
Firefighter, Paramedic 9.00 9.00 9.00 8.00
Firefighter, Paramedic (Meas. S, prev. SAFER Grant) 7.00 7.00 7.00 7.00 Fire Safety Inspector I, II 1.00 1.00 1.00 1.00
Executive Assistant to the Fire Chief 1.00 1.00 1.00 1.00 Department Total 41.00 41.50 42.00 42.00 0.00

POLICE DEPARTMENT
Chief of Police 1.00 1.00 1.00 1.00
Police Lieutenant 3.00 3.00 3.00 3.00
Police Sergeant 6.00 6.00 6.00 6.00
Police Officer 31.00 31.00 31.00 31.10 1.00
Police Officer (cannabis) 1.00 1.00 1.00 1.00
Public Safety Dispatch Supervisor 1.00 1.00 1.00 1.00
Police Records Supervisor 1.00 1.00 1.00 1.00
Community Service Officer Supervisor 1.00 1.00 1.00 1.00 Public Safety Dispatcher 9.00 9.00 9.00 9.00
Senior Police Records Tech, Police Record Tech 2.00 2.00 2.00 2.00 Administrative Assistant I 1.00 1.00 1.00 1.00
Senior Evidence/Prop Tech, Evidence/Prop Tech 2.00 2.00 2.00 2.00 Sr Community Svcs Officer, Community Svcs Officer 4.00 4.00 4.00 4.00 Parking Ambassador 4.00 4.00 4.00 4.00
Code Compliance Investigator 1.00 1.00 1.00 1.00
Administrative Assistant II 1.00 1.00 1.00 1.00
Department Total 69.00 69.00 69.00 69.10 1.00
Total City Employees 214.00 215.79 217.17 218.61 3.00
3 of 3
424
3426 RECREATION SUPERVISOR
Index Key Value Hourly Monthly
3400/3426/01 38.13797 6,611
3400/3426/02 40.04487 6,941
3400/3426/03 42.04716 7,288
3400/3426/04 44.14960 7,653
3400/3426/05 46.35709 8,035

XXXX MARKETING & EVENTS COORDINATOR
Index Key Value Hourly Monthly
3400/XXXX/01 33.35570 5,782
3400/XXXX/02 35.02348 6,071
3400/XXXX/03 36.77466 6,374
3400/XXXX/04 38.61339 6,693
3400/XXXX/05 40.54406 7,028
City of South Lake Tahoe
Salary Table Updates
Effective 3/29/2025
Approved by City Council 3/25/2025
1 of 1 425
CITY OF SOUTH LAKE TAHOE GENERAL FUND FIVE-YEAR FINANCIAL PLAN Fiscal Years 2026 to 2030 Actual Actual Budget Forecast Forecast Forecast Forecast Forecast REVENUES BY TYPE 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 Prop Tax 10,643,052 11,384,911 11,450,000 12,282,750 12,651,233 13,030,769 13,421,693 13,824,343 Transient Occupancy Tax (TOT) 10,919,486 10,641,698 10,762,562 10,870,188 11,006,065 11,143,641 11,282,936 11,423,973 Sales Tax 7,304,010 7,101,512 7,264,000 7,336,640 7,428,348 7,521,202 7,615,217 7,710,408 Transfers IN 2,310,676 3,203,557 2,969,037 3,062,727 3,056,413 3,101,126 3,098,597 3,184,429 Vehicle License Fee 2,745,534 2,969,117 2,922,000 3,009,660 3,099,950 3,192,948 3,288,737 3,387,399 Measure Q 3,955,207 3,972,886 3,900,000 3,939,000 3,988,238 4,038,090 4,088,567 4,139,674 Parks & Recreation Revenue 774,057 1,059,366 1,107,400 1,150,000 1,072,000 1,122,000 972,000 1,022,000 Project Area TOT 7,264,552 7,513,043 7,550,000 7,625,500 7,720,819 7,817,329 7,915,046 8,013,984 Other Revenue 3,018,020 3,473,825 2,426,003 1,500,000 1,400,000 1,300,000 1,400,000 1,500,000 Police Revenue 2,268,823 2,698,593 2,377,168 2,496,026 2,620,828 2,751,869 2,889,463 3,033,936 Franchise Fees 1,848,628 2,214,663 2,010,000 2,050,200 2,091,204 2,122,572 2,154,411 2,186,727 Business License Tax 2,229,311 2,373,475 2,075,000 2,116,500 2,158,830 2,202,007 2,246,047 2,290,968 Public Services Revenue 2,945,046 3,167,262 2,399,000 2,404,000 2,409,000 2,414,000 2,419,000 2,424,000 Fire Revenue 446,538 630,949 1,043,936 1,064,815 237,275 242,021 246,861 251,798 Total Revenues 58,672,940$ 62,404,855$ 60,256,106$ 60,908,006$ 60,940,201$ 61,999,575$ 63,038,573$ 64,393,637$ EXPENDITURES BY DEPT s
Police 12,836,536$ 14,508,708$ 16,024,823$ 16,622,874$ 17,374,583$ 17,991,453$ 18,391,283$ 18,791,863$ Fire 9,873,398 11,044,043 12,297,401 12,644,427 12,348,969 12,794,893 13,074,411 13,354,063 General Fund Transfers OUT 5,102,274 7,844,510 4,857,054 2,124,000 2,177,000 2,282,000 2,337,100 2,492,302 General Fund Transfer OUT - Debt Service 3,599,074 3,537,610 3,225,375 3,382,775 2,178,625 523,106 527,067 428,333 Parks and Recreation 3,326,362 4,435,057 4,629,701 4,749,311 3,845,140 3,939,299 4,035,931 4,135,102 General Government 4,901,272 5,167,964 7,473,495 7,890,682 8,052,780 8,264,885 8,482,763 8,706,576 Finance 2,579,731 3,020,976 3,212,650 3,297,448 3,366,385 3,448,840 3,533,398 3,620,114 Miscellaneous General Fund 5,689,807 5,456,227 5,462,501 5,355,105 5,767,499 6,167,239 6,345,539 6,517,336 Development Services 1,740,140 1,963,179 2,052,162 2,109,650 2,153,867 2,203,270 2,253,852 2,305,640 Public Works/Engineering 4,515,915 4,997,536 5,726,344 5,876,801 5,999,702 6,147,417 6,298,917 6,454,305 Total Expenses 54,164,508$ 61,975,811$ 64,961,506$ 64,053,073$ 63,264,550$ 63,762,401$ 65,280,260$ 66,805,634$ Increase to / (Use of) Fund Balance $4,508,432 $429,044 ($4,705,400) ($3,145,067) ($2,324,349) ($1,762,826) ($2,241,687) ($2,411,996) 426

MEASURE S SALES TAX GENERAL FUND FIVE
-YEAR FINANCIAL PLAN Fiscal Years 202
6 to 2030 Actual Actual Budget Forecast Forecast Forecast Forecast Forecast REVENUES 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 Measure S Sales Tax 7,900,148 7,933,783 7,800,000 7,878,000 7,976,475 8,076,181 8,177,133 8,279,347 Interest Revenue 20,009 46,023 35,000 20,000 15,000 10,000 7,000 5,000 Transfer - in - 9,506 REVENUES TOTAL 7,920,157$ 7,989,312$ 7,835,000$ 7,898,000$ 7,991,475$ 8,086,181$ 8,184,133$ 8,284,347$ EXPENDITURES / FINANCING USESTechnical Services - 6,413 10,000 5,000 5,000 5,000 5,000 5,000 Transfer out for:

PAYGO - Communications System - - - 43,100 47,410 47,410 47,410 47,410 Financing - Communications System 554,643 554,643 554,643 - - - - - Financing - Snow Removal Equipment 301,361 602,721 602,721 602,721 602,721 301,361 - - Financing - Fire Station 3 bonds - - - - 2,200,000 2,200,000 2,200,000 2,200,000 Fire Station III Rehabilitation 500,000 800,000 500,000 500,000 - - - - Fire Station II Staffing 979,030 1,326,619 1,155,000 1,392,950 1,504,386 1,564,561 1,627,144 1,692,230 Fire Marshall (vehicle, 50% funded position) 85,572 120,107 144,000 155,520 161,741 168,210 174,939 181,936 Police Lieutenant (100% funded) 123,174 309,124 320,000 345,600 359,424 373,801 388,753 388,753 Police Officer (partial year, if grant not renewed) 70,013 - - - - - - - Police Safety Equipment 121,400 - - - - - - -
Stormwater Management Program and Project 50,000 136,054 99,352 100,000 100,000 100,000 100,000 100,000 South Shore Fuel Reduction Program 305,633 37,844 - - - - - - Road Reconstruction & StormWater Projects 2,800,000 3,380,000 3,000,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Sidewalk snow removal - 126,000 161,234 166,071 171,053 176,185 181,470 186,914 Recreation Center Construction 1,000,000 - - - - - - - Streets Maintenance (in-house) - - 630,000 500,000 500,000 500,000 500,000 500,000 Snow Removal (enhanced ops public streets) - - 500,000 500,000 500,000 500,000 500,000 500,000 Vehicle Replacement - 481,379 350,000 Snow Removal Equipment Replacement 843,263 1,197,000 - 500,000 - 500,000 - - EXPENDITURES TOTAL 7,734,089$ 9,077,904$ 8,026,950 $ 7,310,962$ 8,651,735$ 8,936,529$ 8,224,716 $ 8,302,243$ INCREASE TO (USE OF) FUND BALANCE 186,068$ (1,088,592)$ (191,950)$ 587,038$ (660,260)$ (850,348)$ (40,583)$ (17,896)$ Proposed additional appropriations @ mid-year (45,078)$ MEASURE S YEAR-END FUND BALANCE 2,346,632$ 1,258,040 $ 1,021,012$ 1,608,050$ 947,790$ 97,443$ 56,860$ 38,964$ 427
FIVE-YEAR FINANCIAL PLAN: REVENUES AND EXPENDITURES ASSUMPTIONS 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 Property Tax 3.00% 3.00% 3.00% 3.00% 3.00%T.O.T./Project Area T.O.T 1.00% 1.25% 1.25% 1.25% 1.25%Sales Tax/Measure Q/Measure S 1.00% 1.25% 1.25% 1.25% 1.25%Vehicle License Fee 3.00% 3.00% 3.00% 3.00% 3.00%Franchise Fees 2.00% 2.00% 1.50% 1.50% 1.50%Transfer-in from Measure S - funding for Fire and Police staffing (7 FFs,
50% of Fire Marshall, 100% of Police Lt.) and Sidewalk Snow Removal $2.0 million $2.0 million $2.1 million $2.2 million $2.3 million 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030
Salaries 3.00% 2.00% 2.00% 2.00% 2.00%Health 3.00% 3.00% 3.00% 3.00% 3.00%Pension 3.00% 2.00% 2.00% 2.00% 2.00%Pension (UAL) PERS actuarial estimates;
assumes
prepayment
PERS actuarial
estimates;
assumes
prepayment
PERS actuarial
estimates;
assumes
prepayment
PERS actuarial
estimates;
assumes
prepayment
PERS actuarial
estimates;
assumes
prepayment
Road Repairs none none none none none Vehicle and Equipment Replacement none none none none none Transfers-out CIP Projects none none none none none Other Personnel Expenditures 3.00% 2.00% 2.00% 2.00% 2.00%Other Operating Expenditures 2.00% 2.00% 3.00% 3.00% 3.00%Contractual Services 2.00% 2.00% 3.00% 3.00% 3.00%Capital Outlay 2.00% 2.00% 3.00% 3.00% 3.00%

MAJOR REVENUE ASSUMPTIONS

MAJOR EXPENSE ASSUMPTIONS
428

CITY OF SOUTH LAKE TAHOE

GENERAL FUND - UNDESIGNATED FUND BALANCE ACTIVITY
THROUGH 3/11/2025
Beginning Fund Balance @ 10/01/2024 $ 35,835,007
Less: Unspendable amounts at the beginning of the fiscal year Non-Spendable (advances, encumbrances, prepaids, inventories, committed) (7,898,774) Restricted - General Liability Claims (500,000)
25% Reserve (14,769,729)
ARPA (100,000)
Set-aside for projected budget deficit per Resolution 2023-077 (2,000,000) Set-aside for Affordable Housing Project (Loan to Novin) per comm survey (1,000,000) Available for 2024-2025 Expenditures 9,566,504$
Activity during FY 2024-2025:

FY24/25 Adopted budget usage of reserves per community survey, ccm 8.27.24 (500,000) FY24/25 increase to contributions to SSTMA for micro-transit, ccm 9.10.24 (500,000) Axon Body Worn Camera's purchase yr 1 payment, ccm 9.10.24 (197,033) City Council/City Treasurer Compensation increase, ccm 9.24.24 & 10.22.24 (5,072) Carryforward Encumbrances, net, ccm 10.22.24 (1,254,374) Willdan Energy Project funding, ccm 11.5.24 (2,097,426) HSIP grant match, ccm 11.5.24 (11,410)
ARPA funding transfer for Arts project, ccm 11.19.24 (100,000) Lakeside Residential Neighborhood RPPP implementation, ccm 11.19.24 (17,500) Grants Rev&Exp Roll Forward & True up 12.29.24 14,417
SRO agreement with LTUSD, adopted budget rev increase, ccm 1.14.25 7,056 Agreement Extension with Placement, ccm 1.28.25 (90,000) CalOES grant for LVF transfer for staff time increase, ccm 2.25.25 85,942 Pay for Success Agreement with LVF, ccm 2.25.25 (40,000) Net Usage Subtotal (4,705,400)
Available Undesignated Reserves Balance before Mid-Year Budget Requests 4,861,104 Mid-Year Budget Adjustments, ccm 3.25.2025 (2,719,224)
Total Activity (Usage) during FY 2024-2025 (7,424,624)
Remaining Available Undesignated Reserves Fund Balance @ 3/25/2025 2,141,880$ Less anticipated appropriations for:

EV Charging Stations Phase 1 construction (currently in design phase) ($500,000) City's portion of Startup Budget contributions to the South Tahoe Transit JPA ($106,992) Remaining Projected Available Balance 1,534,888$
429
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: March 25, 2025
Agenda Item #:11
Agenda Item: South Tahoe Transit Joint Powers Authority Startup Budget Contribution and Allocation of Transportation Manager and Accountant Positions
Executive Summary: On October 15, 2024, the El Dorado County Board of Supervisors and City of South Lake Tahoe City Council approved a Joint Powers Authority (JPA) Agreement creating the South Tahoe Transit JPA. The JPA Agreement requires that, within one hundred twenty (120) days of notice of the JPA setting the startup contribution amount, the City and County shall contribute startup funds in amounts determined by the Board. The City Council will consider appropriating $108,992 in general fund to the JPA and creation of new Transportation Manager and Accountant positions to provide management support to the JPA.

Requested Action / Suggested Motions: Pass a Resolution authorizing $108,992 Budget Appropriations from General Fund Undesignated Excess Reserves for the South Tahoe Transit JPA Startup Budget and Amending the FY 2024/2025 Allocated Permanent Position Listing to add Transportation Manager and Accountant positions.

Responsible Staff Member: Hilary Roverud, Assistant City Manager Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff_Report-Transit_JPA_Start-Up_Budget.docx
02-Transit JPA Startup Budget Resolution
03-Transit JPA Start Up Contribution Request
04-Resolution_City_Budget_Appropriation.docx
05-Position Allocation 24-25 Budget (Exh. 1 to Reso).pdf 06-Salary Table Transportation Manager (Exh. 2 to Reso).pdf 430
Council Agenda Report- March 25, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: March 25, 2025
Title: South Tahoe Transit Joint Powers Authority Startup Budget Contribution and Allocation of Transportation Manager and Accountant Positions
Location: Citywide
Responsible Staff Member: Joseph Irvin, City Manager
Background: On October 15, 2024 the El Dorado County Board of Supervisors and City of South Lake Tahoe City Council approved a Joint Powers Authority (JPA) Agreement creating the South Tahoe Transit JPA. The JPA was created with the purpose of “planning, programming, financing, acquisition, ownership and operation of public transit services and facilities to serve the Lake Tahoe south shore area.” The jurisdiction of the JPA is the area within El Dorado County, including the City of South Lake Tahoe, however the intent of the JPA is to benefit the Lake Tahoe south shore area, which may include transit service within and outside of the JPA jurisdictional territory.

Issue and Discussion: The JPA Agreement requires that, within one hundred twenty (120) days of notice of the JPA setting the startup contribution amount, the City and County shall contribute startup funds in amounts determined by the Board. At their first meeting on January 30, 2025, the JPA Board adopted a resolution approving the startup budget and contribution amounts which reflect two thirds contribution by the City of South Lake Tahoe and one third contribution by the County of El Dorado (Attachment 02). The division of costs is consistent with agency representation on the Board. The startup budget reflects administrative and support expenses for January through September 2025. The resolution also directs the Executive Director to submit requests to the City of South Lake Tahoe and the County. The Executive Director submitted the attached request on February 12, 2025 (Attachment 03). The attached resolution (Attachment 04) appropriates $108,992 in general fund to the JPA contingent upon approval by the County Board of Supervisors to provide the County portion of the startup funding.

The JPA startup budget includes staffing support from the City, as managing agency, including a Transportation Manager and one half of an Accountant beginning in July. The attached resolution would authorize an amendment to FY 2024/2025 list of Allocated Permanent Positions to add one Transportation Manager position and one Accountant position. The Accountant would also provide additional capacity in the Finance Department to support the financial aspects of additional City priorities. The costs of these two positions will be expensed out of the General Fund from City Manager and Finance Department budgets respectively.

The costs incurred by the City for 100% of the Transportation Manager position and 50% of the Accountant position as well as other administrative support costs, will be reimbursed by the 431
Council Agenda Report- March 25, 2025 Page 2 of 2
JPA based on a reimbursement agreement that is being developed and anticipated to be brought to City Council for approval in May.

Financial Implications: Funding the City portion of the JPA startup budget requires $108,992 from the City general fund. The JPA Board will be developing their fiscal year 2025/2026 budget prior to September 30, 2025, which may include adjustments and additional contributions from the City and County as the JPA begins pursuing options for improving transit in the South Shore area and pursue additional long term funding sources.

The resolution approves the City’s contributions to the JPA as well as expenditure appropriations for the cost of two new positions to be partially reimbursed by the JPA via a reimbursement agreement that is being developed.

Environmental Considerations: Allocating funds to the JPA and creating the Transportation Manager position for administrative support to the South Tahoe Transit JPA is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies).

Policy Implications: The formation of the South Shore Transit JPA and continued support for the JPA priorities and goals is consistent with the following Strategic Plan goals and Action Items:
 “…Work with local partners to develop a funding mechanism and operating structure for local transit and micro-transit operators…”
 Action Item 6. Evaluate the feasibility of the transit system run by the City and the possibility of the City becoming the recipient of FTA and TDA monies. 432
Resolution 2025-001
Adopted by the South Tahoe Transit Joint Powers Authority Board of Directors
January 30, 2025
Approving the January 1, 2025, through
September 30, 2025, South Tahoe Transit
JPA Startup Budget

BACKGROUND
A. The South Tahoe Transit Joint Powers Authority (JPA) was established on October 15, 2024, by the City of South Lake Tahoe and El Dorado County, pursuant to Section 9 of Article XI of the California Constitution and Government Code Sections 26002 and 39732., and a Joint Exercise of Powers Agreement.

B. The Joint Exercise of Powers Agreement specifies that the City of South Lake Tahoe is the Managing Agency and City staff shall serve as staff to the JPA.

C. The Joint Exercise of Powers Agreement specifies that within one hundred twenty (120) days of notice of the JPA action setting the startup contribution amounts the City and County shall contribute to the JPA startup funds in the amounts determined by the Board.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the South Tahoe Transit JPA:

1. Does hereby adopt the Startup Budget for January 1, 2025, through September 30, 2025 (Exhibit A).

2. Approves the following contribution amounts which reflects two thirds contribution by the City of South Lake Tahoe and one third contribution by the County of El Dorado to fund the JPA:

Amount
City of South Lake Tahoe $108,992
El Dorado County $54,496
Total $163,488
Directs the Executive Director to submit requests to the City of South Lake Tahoe and the County of El Dorado to submit funding to the JPA administered 433
by the City as the Managing Agency consistent with the amounts set forth herein.

Adopted by the South Tahoe Transit JPA on January 30, 2025, by the following vote:

Yes: Laine, Bass Roberts
_Brooke Laine 02/03/2025
B
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Attest:
_Su san Blankenship (Feb 3, 2025 11:26 PST)
Susan Blankenship, Secretary
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Tahoe Transit JPA.
434

EXHIBIT A
STARTUP BUDGET South Tahoe Transit JPA

STARTUP EXPENSES

PERSONNEL AMOUNT
Assistant City Manager, 6mo, 10% $16,503
Transit Manager, 3mo, 100% $56,813
Treasurer/Finance Director, 9mo, 5% $10,623
Secretary, 9mo, 5% $6,867
Accountant, 3mo, 50% $17,682
Total $108,488

OTHER AMOUNT
Legal Counsel $30,000
Financially Responsible Officer Bond $5,000
Indemnification Insurance $20,000
$0
Total $55,000
Total Startup Expenses $163,488
435
TRANSI~1
Final Audit Report 2025-02-03
"TRANSI~1" History
Document created by Susan Blankenship ([email protected]) 2025-02-03 - 7:20:03 PM GMT
Document emailed to [email protected] for signature
2025-02-03 - 7:20:07 PM GMT
Document emailed to Susan Blankenship ([email protected]) for signature 2025-02-03 - 7:20:07 PM GMT
Email viewed by [email protected]
2025-02-03 - 7:25:55 PM GMT
Document e-signed by Susan Blankenship ([email protected]) Signature Date: 2025-02-03 - 7:26:49 PM GMT - Time Source: server Signer [email protected] entered name at signing as Brooke Laine 2025-02-03 - 8:21:55 PM GMT
Document e-signed by Brooke Laine ([email protected])
Signature Date: 2025-02-03 - 8:21:57 PM GMT - Time Source: server Agreement completed.
2025-02-03 - 8:21:57 PM GMT
Created: 2025-02-03
By:

Status:

Transaction ID:

Susan Blankenship ([email protected])
Signed
CBJCHBCAABAAe2E23VSbTcYQq_-fip-OSm-Srvf9HlqN
436
South Tahoe Transit Joint Powers Authority
February 12, 2025
City of South Lake Tahoe Council
1901 Lisa Maloff Way, Suite 203
South Lake Tahoe, CA 96150
Dear City Councilmembers,
Subject: Request for Contribution of South Tahoe Transit JPA Startup Funds I am writing to respectfully request the City of South Lake Tahoe’s financial contribution to the South Tahoe Transit Joint Powers Authority (JPA) startup budget in the amount of $108,992.

The JPA Agreement approved by the El Dorado County Board of Supervisors and City of South Lake Tahoe City Council on October 15, 2024, requires that within one hundred twenty (120) days of notice of the JPA setting the startup contribution amount, the City and County shall contribute startup funds in amounts determined by the Board. The JPA Board adopted the attached resolution on January 30, 2025, adopting the startup budget for the period of January 1, 2025 through September 30, 2025 and approving contribution amounts which reflects two thirds contribution by the City and one third contribution by the County to fund the JPA.

The South Tahoe Transit JPA represents an opportunity to improve transit services in the South Lake Tahoe area and contributions to the startup funds will not only facilitate the successful launch of the JPA but also demonstrate the City’s commitment to improving transit for residents and visitors in the Tahoe Basin portion of El Dorado County.

Please feel free to contact me if you have any questions.

Sincerely,
Hilary Roverud
South Tahoe Transit JPA Executive Director
437
Resolution 2025-001
Adopted by the South Tahoe Transit Joint Powers Authority Board of Directors
January 30, 2025
Approving the January 1, 2025, through
September 30, 2025, South Tahoe Transit
JPA Startup Budget

B. The Joint Exercise of Powers Agreement specifies that the City of South Lake Tahoe is the Managing Agency and City staff shall serve as staff to the JPA.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the South Tahoe Transit JPA:

1. Does hereby adopt the Startup Budget for January 1, 2025, through September 30, 2025 (Exhibit A).

2. Approves the following contribution amounts which reflects two thirds contribution by the City of South Lake Tahoe and one third contribution by the County of El Dorado to fund the JPA:

Directs the Executive Director to submit requests to the City of South Lake Tahoe and the County of El Dorado to submit funding to the JPA administered 438
by the City as the Managing Agency consistent with the amounts set forth herein.

Adopted by the South Tahoe Transit JPA on January 30, 2025, by the following vote:

Yes: Laine, Bass Roberts ________________________________ _________________ Brooke Laine, Chair Date:

Attest: ________________________________
Susan Blankenship, Secretary
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Tahoe Transit JPA.

02/03/2025
439

EXHIBIT A
STARTUP BUDGET South Tahoe Transit JPA

STARTUP EXPENSES

OTHER AMOUNT
Legal Counsel $30,000
Financially Responsible Officer Bond $5,000
Indemnification Insurance $20,000
$0
Total $55,000
Total Startup Expenses $163,488
440
Resolution 2025-XXX March 25, 2025 Page 1 of 2
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe City Council
March 25, 2025
Authorizing $108,992 Budget Appropriations from General Fund Undesignated Excess Reserves for the South Tahoe Transit JPA Startup Budget and Amending the FY 2024/2025 Allocated
Permanent Position Listing to add Transportation Manager and Accountant positions

BACKGROUND
A. The South Tahoe Transit Joint Powers Authority was established on October 15, 2024 by the City of South Lake Tahoe and El Dorado County, pursuant to Section 9 of Article XI of the California Constitution and Government Code Sections 26002 and 39732., and a Joint Exercise of Powers Agreement.

B. Section 6.f(5) of the Joint Exercise of Powers Agreement states that “within one hundred twenty (120) days of notice of Authority action setting the start-up contribution amount the City and County shall contribute to the Authority start-up funds in the amounts determined by the Board.” C. Section 3(1) states that, “unless otherwise approved unanimously by the Members, City staff shall serve as staff to the Authority and perform administrative functions for the Authority” and “The board may enter into agreements with the City for payment to, or reimbursement to, the City for the performance of administrative functions for the Authority.”

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

1. Finds that the above recitals are true, correct and a substantive part of this resolution.

2. Authorizes the appropriation of funds for the City’s portion of start-up contributions to South Tahoe Transit JPA into the City’s fiscal year 2024/2025 budget, upon approval by the County Board of Supervisors to provide the County portion of the startup funding, as follows:

From General Fund Undesignated Excess Reserves
100-01956-50068: $108,992
Transfer into Transit JPA XXX-XXXXX-36300: $108,992

3. Authorizes the amendment to the FY 24/25 List of Allocated Permanent Positions (attached hereto as Exh.1).
441
Resolution 2025-XXX March 25, 2025 Page 2 of 2

4. Approves the corresponding Transportation Manager salary table (attached hereto as Exh. 2).

5. Authorizes the expenditure appropriations for the Transportation Manager and Accountant positions into the City’s fiscal year 2024/2025 budget to be partially reimbursed by the JPA based on a reimbursement agreement that being developed, as follows:
a. Transportation Manager 100-01310-41* $56,813 (total for all payroll line items)
b. Accountant 100-01511-41* $35,365 (total for all payroll line items)
Budget for the reimbursement revenue will be established with the reimbursement agreement approval.

Adopted by the City of South Lake Tahoe City Council on March 25, 2025 by the following vote:

Yes:

No:

Absent:

Abstain:

Date:

Tamara Wallace, Mayor
Attest:

Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
442
Allocated Permanent Positions
Authorized/ Authorized/ Authorized/ Authorized/ Authorized/ Appropriated Appropriated Appropriated Appropriated Frozen Positions Positions Positions Positions Positions
Department/Positions 23/24 Adopted thru May'24 24/25 Adopted thru Mar'25 24/25 Budget

CITY COUNCIL
Council Member (Elected) Department Total 5.00 5.00 5.00 5.00 0.00

CITY CLERK
City Clerk (Elected) 1.00 1.00 1.00 1.00
Assistant City Clerk 1.17 1.17 1.00 1.00
Department Total 2.17 2.17 2.00 2.00 0.00

CITY TREASURER
City Treasurer (Elected) Department Total 1.00 1.00 1.00 1.00 0.00

CITY ATTORNEY
City Attorney 1.00 1.00 1.00 1.00
Assistant City Attorney 1.00 1.00 1.00 1.00
Risk Manager 1.00 1.00 1.00 1.00
Paralegal 1.00 1.00 1.00 1.00
Department Total 4.00 4.00 4.00 4.00 0.00

FINANCE DEPARTMENT
Director of Finance 1.00 1.00 1.00 1.00
Total 1.00 1.00 1.00 1.00 0.00
Financial Services
Financial Services Supervisor 1.00 1.00 1.00 1.00
Accountant I, II 1.00 1.00 1.00 1.00
Accountant I / Payroll Coordinator 1.00 1.00 1.00 1.00
Accountant (Transit JPA) 0.00 0.00 0.00 0.25
Principal Management Analyst - Purchasing and Grants 1.00 1.00 1.00 1.00 Total 4.00 4.00 4.00 4.25 0.00
Revenue
Accounting Technician I, II 2.00 2.00 2.00 2.00
Supervising Accounting Technician 1.00 1.00 0.00 0.00
Assistant Management Analyst 0.00 0.00 1.00 1.00
Accountant I/II 1.00 1.00 1.00 1.00
Total 4.00 4.00 4.00 4.00 0.00
Information Systems
Information Systems Supervisor 1.00 1.00 0.00 0.00
Information Systems Manager 0.00 0.00 1.00 1.00
Network Systems Administrator 1.00 1.00 1.00 1.00
Information Systems Technician 1.00 1.00 1.00 1.00
Total 3.00 3.00 3.00 3.00 0.00
Department Total 12.00 12.00 12.00 12.25 0.00
1 of 3
443
Allocated Permanent Positions
Authorized/ Authorized/ Authorized/ Authorized/ Authorized/ Appropriated Appropriated Appropriated Appropriated Frozen Positions Positions Positions Positions Positions
Department/Positions 23/24 Adopted thru May'24 24/25 Adopted thru Mar'25 24/25 Budget

PUBLIC WORKS DEPARTMENT
Director of Public Works 1.00 1.00 1.00 1.00
Capital Program and Facilities Program Manager 1.00 1.00 1.00 1.00 Office Manager 1.00 1.00 1.00 1.00
Total 3.00 3.00 3.00 3.00 0.00
Engineering
Construction Engineer 0.00 0.00 0.00 0.00 1.00
Complete Streets Program Manager 1.00 1.00 1.00 0.50
GIS Analyst 1.00 1.00 0.00 0.00
Resident Engineer / Resident Inspector 1.00 1.00 0.00 0.00 Engineering Manager 0.33 0.67 0.00 0.00
Associate Civil Engineer, Assistant Engineer 2.50 0.00 0.00 0.00 Associate Civil Engineer, Associate Architect 0.00 2.50 4.00 4.00 Associate Planner, Assistant Planner (Transportation) 0.00 0.00 0.00 0.50 Engineering Technician I, II 1.00 1.00 1.00 1.50
Total 6.83 7.17 6.00 6.50 1.00
Maintenance Operations / Snow Removal
Maintenance Manager 2.00 2.20 2.17 2.17
Lead Maintenance Technician 2.00 2.50 3.00 3.00
Maintenance Technician I, II, III, IV, V 16.00 15.50 15.00 15.00 Total 20.00 20.20 20.17 20.17 0.00
Fleet Maintenance
Maintenance Manager - Fleet 1.00 1.00 1.00 1.00
Equipment Mechanic I, II, III 6.00 6.00 6.00 6.00
Fleet Control Specialist 1.00 1.00 1.00 1.00
Total 8.00 8.00 8.00 8.00 0.00
Airport
Airport Manager 1.00 1.00 1.00 1.00
Airport Maintenance Supervisor 1.00 1.00 1.00 1.00
Administrative Assistant I, II 1.00 1.00 1.00 1.00
Maintenance Technician I, II, III, IV, V 1.00 1.00 1.00 1.00 Total 4.00 4.00 4.00 4.00 0.00
Department Total 41.83 42.37 41.17 41.67 1.00
2 of 3
444
Allocated Permanent Positions
Authorized/ Authorized/ Authorized/ Authorized/ Authorized/ Appropriated Appropriated Appropriated Appropriated Frozen Positions Positions Positions Positions Positions
Department/Positions 23/24 Adopted thru May'24 24/25 Adopted thru Mar'25 24/25 Budget

XXXX TRANSPORTATION MANAGER
Index Key Value Hourly Monthly
1401/XXXX/01 63.55409 11,016
1401/XXXX/02 66.73171 11,567
1401/XXXX/03 70.06843 12,145
1401/XXXX/04 73.57173 12,752
1401/XXXX/05 77.25034 13,390
City of South Lake Tahoe
Salary Table Updates
Effective 3/25/2025
Approved by City Council 3/25/2025
1 of 1 446
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: March 25, 2025
Agenda Item #:12
Agenda Item: Agenda Planning Calendar
Requested Action / Suggested Motions: Identify, with consent of at least two Council members, any desired future agenda items, and/or modify the Agenda Planning Calendar as desired.

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

APC - 03 20 2025.pdf
447
2025 Agenda Planning Calendar (Updated 03 20 2025)
Agenda Item Agenda Section
April 22, 5:30 p.m. City Attorney Use Agreement with EDC for Multigenerational Recreation & Aquatic Cente NB

CC & STJPPA
Attorney/PD Shared Mobility Devices Saftey and Liability Options Discussion UB City Manager EV Charging Parking Ordinance (Second Reading) Consent Award CalTrans Carbon Reduction Grant Consent
Dev Services Pay for Success Agreement Tahoe Coalition for the Homeless UB Emergency Shelter and Warm Room Discussion NB
CTC Land Exchange NB
Finance 2024 Annual Comprehensive Financial Report (ACFR) Consent Ski Run BID to Levy Assessment for Business License year 2025/2026 PH Fire LRA Fire Severity Zone Map Ordinance (First Reading) NB HR City Personnel Rules Consent
Public Works Award Pioneer Trial PH II UB
Paving Lieu Fee Agreement with STPUD Consent
Reimbursable agreement FAA (PAPI) Consent
Annual Roadway Rehab Contract Reconciliation Consent
Department
448
2025 Agenda Planning Calendar (Updated 03 20 2025)
Airport Restaurant Opening Extension Consent
Award Pioneer Trail HSIP Consent
CTC Easement Purchase Consent
Sale of Excess Property Consent
Transfer Measure S funds to Tahoe Valley Project (Phase 1 Road Rehab) Consent May 6, 9 a.m. City Attorney Time-Share Ordinance Amendments (First Reading) NB City Clerk Military Appreciation Month Proclamations
Dev. Services Building Code Appendix AW Adoption-3D Printed Structures NB Development Rights Annual Report Consent
Mid-Town Area Plan Draft Presentation and Implementation Discussion NB Fire LRA Fire Severity Zone MapOrdinance (Second Reading) Consent Police Stateline Transit Center Parking and Signage NB
Public Works Award 2025 Road Rehab Drainage Replacement project Consent Award of PD Roof Replacement Consent
Draft 2025/26 CIP Recommendation NB
May 20, 5:30 p.m. City Attorney Time-Share Ordinance Amendments (Second Reading) Consent 449
2025 Agenda Planning Calendar (Updated 03 20 2025)
City Clerk Public Works Week Proclamation Proclamations Finance Quarterly Budget and Financial Status Report as of March, 2025 Consent Investment Portfolio Report as of March 2025 Consent
Public Works Subdivision Map for 14 Condo Units - 3708 Lake Tahoe Blvd/3709 Osgood NB Award Citywide Traffic Calming Toolbox NB
Award Contract for Hwy 50 Corridor Study NB
June 3, 9 a.m. City Manager California Climate Action Corps Fellows Projects Presentation Presentation Public Works CSA Assessment Confirmation PH
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 Aug.12, 9 a.m.

Aug. 12, 5:30 p.m. Budget Workshop
Sep.9, 9 a.m.

Sep. 23, 5:30 p.m.

Oct. 21, 5:30 p.m. City Clerk Pet Wellness Awareness Month (Humane Society, Erin Ellis) Proclamation Unscheduled/Pending
450
2025 Agenda Planning Calendar (Updated 03 20 2025)
City Attorney Discussion: City Requirement to Replace Housing Units within the City City Clerk Records Management Policy
Dev Services Res. Area Plan to Accommodate SB9 and Remove Tourist Accomodation Discussion: Second Home Cap/Permit Options
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 Geothermal Use Discussion Item
Award James-Eloise Drainage Upgrade
TTD US 50 Plans Presentation
Sierra Blvd. Speed Survey
Award Lakeview and Ski Run Electrical Upgrades
Award PS&E for Sugar Pine Bike Path Project
451
2025 Agenda Planning Calendar (Updated 03 20 2025)
Award Grant Writing Services Contract
Award US 50 RSA City Portion Upgrades
452

South Lake Tahoe City CouncilMarch 25, 2025

South Lake Tahoe City Council
March 25, 2025