South Lake Tahoe City Council
May 20, 2025

EXHIBIT A
Prohousing Incentive Program (PIP)
NOFA Date: 01/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

AUTHORITY, PURPOSE AND SCOPE OF WORK

1. Authority
Pursuant to Health and Safety Code section 50470, subdivision (b)(2)(C)(i), the State of California Department of Housing and Community Development (the “Department” or “State”) has established the Prohousing Incentive Program (“PIP” or the “Program” as defined in Attachment C of the Guidelines) for Local Governments and Localities. This Standard Agreement, along with all its exhibits (the “Agreement”), is entered into under the authority of, and in furtherance of, the purpose of the Program. Pursuant to Health and Safety Code Section 50470, subdivision (d) (“PIP Statute”), the Department has issued the Prohousing Incentive Program Guidelines and Notice of Funding Availability (“NOFA”) dated January 23, 2024, to govern administration of the fund and carry out the Program.

2. Purpose
In accordance with the authority cited above, the Grantee has been awarded financial assistance in the form of a grant from the Program. The Department has agreed to make the grant to provide financial assistance to accelerate housing production for housing related projects and programs that assist in addressing the unmet housing needs of their local communities pursuant to the terms of the PIP Statute, Guidelines and NOFA, and Permanent Local Housing Allocation (PLHA) Statute and Guidelines, and this Agreement. By entering into this Agreement and thereby accepting the award of the Program funds, the Grantee agrees to comply with the terms and conditions of the PIP Statute, Guidelines and NOFA, and PLHA Statute and Guidelines, and this Agreement, the representations contained in the application, and the requirements of the authority cited above. Based on the representations made by the Grantee, the State shall provide a grant in the amount shown in Exhibit B, Section 2, Grant and Reimbursement Limit.

3. Definitions
Terms not otherwise defined herein shall have the same meaning as definitions set forth in Health and Safety Code Section 50470 and Attachment C of the PIP Guidelines and Definition Section (Section 101) of the PLHA Guidelines.

4. Scope of Work
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EXHIBIT A
Prohousing Incentive Program (PIP)
NOFA Date: 01/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
The “Scope of Work” or “Work” for this Agreement shall be used to accelerate housing production for housing related projects and programs that assist in addressing the unmet housing needs of their local communities. Uses shall consist of one or more of the eligible uses described in Guidelines set forth in the PIP Application, Exhibit E of this Agreement and any other supplemental forms prescribed by the Department in full accordance with this Agreement, PIP Guidelines and PLHA Guidelines Section 301.

Where eligible uses in PIP Guidelines Section 601 differ from PLHA Guidelines Section 301, the Department will defer to PLHA Guidelines except for eligible uses 7 (accessibility modifications) and 10 (fiscal incentives).

A Local government that receives an allocation shall use no more than five percent of the allocation for costs related to the administration of the Activity(ies) for which the allocation was made. Staff and overhead costs directly related to carrying out the eligible activities described in the PIP and PLHA Statute and Guidelines are “activity costs” and not subject to the cap on “administrative costs.” A Local government may share any funds available for administrative costs with entities that are administering its allocation.

The Scope of Work may in no event be revised or altered without the Department’s prior written consent and approval, and such consent and approval is within the Department’s sole and absolute discretion. The Department reserves the right, but assumes no obligation, to review and approve any and all Work.

5. Department Contract Coordinator
The Department’s Contract Coordinator of this Agreement is the Housing Policy Development Senior Program Manager, or the Manager’s designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be sent by email to the Department Contract Coordinator at [email protected].

6. Grantee Contract Coordinator
The Grantee’s Contract Coordinator for this Agreement is the Authorized Representative listed below.

Authorized Representative
Name:

Joseph Irvin
Authorized Representative
Title:

City Manager
Agency Name: City of South Lake Tahoe
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EXHIBIT A
Prohousing Incentive Program (PIP)
NOFA Date: 01/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
Address: 1901 Lisa Maloff Way, Suite 210
South Lake Tahoe, CA 96150
Phone Number: (530)542-6043
Email Address: [email protected]
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EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

BUDGET DETAIL AND PAYMENT PROVISIONS

1. Application for Funds
A. Grantee has submitted to the Department an Application for a Grant under the Program. The Department is entering into this Agreement on the basis of, and in reliance on fact, information, assertions and representations contained in the Application and any subsequent modifications or additions thereto approved by the Department. The Application and any approved modifications and additions thereto are hereby incorporated into this Agreement.

B. The Grantee warrants that all information, facts, assertions, and representations contained in the Application and approved modifications and additions thereto are true, correct, and complete to the best of the Grantee’s knowledge. In the event that any part of the Application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading, in such a manner that would substantially affect the Department's approval, disbursement, reimbursement, or monitoring of the funding and the grant or activities governed by this Agreement, the Department may declare a breach hereof and take such action or pursue such remedies as are provided for breach hereof.

2. Grant and Reimbursement Limit
The Department’s decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding provided, shall be final. The maximum total amount granted and disbursable to the Grantee pursuant to this Agreement shall not exceed $620,000.00.

3. Grant Timelines
A. This Agreement is effective upon approval by all parties and the Department, which is evidenced by the date signed by the Department on page one, Standard Agreement, STD 213 (the “Effective Date”).

B. The grant term begins on the day the Department and the grantee have fully executed the Standard Agreement as described in Exhibit D(1).

C. All reimbursement requests for Grant funds must be submitted to the Department no later than March 30, 2026.

D. Upon completion of all deliverables within the Standard Agreement and prior to processing final invoicing, the awardee shall submit a Close Out Report. 180
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EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
E. The Grantee shall deliver to the Department all supporting documents of Work performed on or before March 30, 2026, to ensure meeting the June 30, 2026, expenditure deadline. Under special circumstances, as determined by the Department, the Department may modify the March 30, 2026, reimbursement deadline but may not go beyond the expenditure deadline.

F. It is the responsibility of the Grantee to monitor the project and timeliness of requests for reimbursement before the expenditure deadline.

G. The grant term ends on June 30, 2027.

4. Conditions of Reimbursement
A. The Department shall not award or disburse funds unless it determines that the grant funds shall be expended in compliance with the terms and provisions of the Guidelines, the NOFA, and this Agreement.

B. Grant funds shall only be used by the Grantee for project activities approved by the State that involve the preparation and adoption of project activities as stated in the Scope of Work.

C. A Grantee that receives funds under this Program may use a subcontractor. The subcontractor shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the Grantee of its responsibilities under the Program.

D. After the contract has been executed by the Department and all parties, approved and eligible costs for eligible activities may be reimbursed for the project(s) upon completion of deliverables as set forth in the PIP Application, Exhibit E of this Agreement, and any other supplemental forms prescribed by the Department and subject to the terms and conditions of this Agreement.

Applicants may request disbursements in advance of activity initiation under unique and/or unusual circumstances including but not limited to feasibility, lack of resources, or unavailability of funds.

E. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of execution and acceptance of the Standard Agreement and completed during the grant term until the expenditure deadline will be reimbursable.

F. Approved and eligible costs incurred prior to the NOFA date are ineligible, unless otherwise approved by the Department.
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EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
G. The Contractor may request that eligible uses or grant funds may be revised without an amendment to this Agreement. This request must be made in writing to HCD and shall be effective only upon written HCD approval. HCD’s decision to approve or deny any such request shall be final.

5. Performance
The Grantee shall take such actions, pay such expenses, and do all things necessary to complete the scope of work and within the terms and conditions

6. Fiscal Administration
A. The Grantee is responsible for maintaining records which fully disclose the activities funded by the PIP grant. Adequate documentation for each reimbursable transaction shall be maintained to permit the determination, through an audit if requested by the State, of the accuracy of the records and the allowability of expenditures charged to Prohousing Incentive Program grant funds. If the allowability of expenditure cannot be determined because records or documentation are inadequate, the expenditure may be disallowed, and the State shall determine the reimbursement method for the amount disallowed. The State’s determination of the allowability of any expense shall be final.

B. Prior to receiving grants, the Grantee shall submit the following documentation:
1) Government Agency Taxpayer ID Form (GovTIN; Fi$cal form). 2) A Request for Funds on a form and manner provided by the Department; and
3) Any and all additional documentation that may be requested by the Department in the prescribed form and manner.

C. Grant fund payment will be made on a reimbursement basis. Project invoices will be submitted to the Department by the grantee on a quarterly basis or, if earlier, upon completion of deliverables.

D. The Department recognizes that budgeted deliverable amounts are based upon estimates. Grantees may request, in writing, a budget adjustment across deliverables subject to written approval by the Department, as long as the total budget does not exceed the maximum amount awarded to the Grantee.

E. Work must be completed prior to requesting reimbursement, unless otherwise approved by the Department.
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EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
F. Grant funds cannot be reimbursed until this Standard Agreement has been fully executed.

G. The Grantee will be responsible for compiling all invoices and supporting documentation and reporting documents. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. Failure to provide requested documentation to HCD could result in exclusion from consideration for grants in future program years.

H. Supporting documentation may include but is not limited to purchase orders, receipts, progress payments, subcontractor invoices, timecards, or any other documentation as deemed necessary by the Department to support the reimbursement to the Grantee for expenses in accordance with the Grantee’s PIP Application and the PIP Guidelines.

I. The Grantee will submit documentation to the Department detailing actual costs incurred, which must be based on clear and completed objectives and deliverables as outlined in the PIP Application, Exhibit E of this Agreement, and any other supplemental forms prescribed by the Department J. In unique and/or unusual circumstances, the Department may consider alternative arrangements (e.g., disbursements in advance of activity initiation) to reimbursement and payment methods. Unusual circumstances include but are not limited to feasibility, unavailable funds or lack of resources and substantial progress in expenditure.

K. The Department may withhold Grant funds until the grant terms have been fulfilled.

L. The Department may withhold eligible Program Grants in future program years until terms of this Agreement have been fulfilled to the satisfaction of the Department.

7. Budget Contingency Clause
A. The Department’s provision of funding to Grantee pursuant to this Agreement is contingent on the continued availability of PIP funds and continued state authorization for PIP activities. The Department’s provision of funding is subject to amendment or termination due to lack of funds or proper authorization. This Agreement is subject to written modification or termination, as necessary, by the Department in accordance with requirements contained in any future state legislation and/or regulations. If funding for any fiscal year is reduced or deleted 183
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EXHIBIT B
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
for purposes of this program, the Department shall have the sole discretion to cancel this Agreement without cause, no liability occurring to the Department, or amend the current Agreement and amount allocated to Grantee. 184
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

PIP TERMS AND CONDITIONS

1. Effective Date, Commencement of Work
This Agreement is effective upon the date of the Department representative’s signature on page one of the full executed Standard Agreement, STD 213. Grantee agrees that work under this Agreement shall not commence until execution of the STD 213, (the “Effective Date”).

2. Strict Compliance
Grantee will strictly comply with the terms, conditions and requirements of the PIP Statute, Guidelines and NOFA, and PLHA Statute and Guidelines, and this Agreement.

3. Contractor’s Application for Funds
A. Grantee has submitted to the Department an Application for a Grant under the Program.

B. Grantee warrants that all information, facts, assertions and representations contained in the Application and approved modifications and additions thereto are true, correct, and complete to the best of Grantee’s knowledge.

4. Eligible Activities
A. Grant funds awarded to the Grantee and expended by either the Grantee or any entity to which Grantee awards funds shall be used for the eligible activities set forth in Exhibit A(4). The following additional requirements shall apply:

B. Each Grantee shall submit a Plan contained in Exhibit E detailing:
1) The manner in which allocated funds will be used for eligible activities. 2) A description of how the Plan is consistent with the programs set forth in the Local government’s Housing Element.
3) The following for each proposed Activity:
a) A description of each proposed Activity and the percentage of funding allocated to it.
b) A description of major steps/actions and a proposed schedule required for the implementation and completion of the Activity. 185
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
c) Where applicable, the period of affordability and level of affordability for each Activity. Rental Projects are required to have affordability periods of at least fifty-five years.

C. If funds are used for the acquisition, construction, or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the following requirements if the property is no longer the primary residence of the homeowner due to sale, transfer or lease, unless it is in conflict with the requirements of another public funding source or law:
1) PIP loan and any interest thereon shall be reused consistent with the Eligible Activities specified in Exhibit A(4); or,
2) The initial owner and any subsequent owner shall sell the home at an Affordable housing cost to a qualified Lower-Income or ModerateIncome household; or, 3) The homeowner and the Local government shall share the equity in the unit pursuant to an equity-sharing agreement. The grantee shall reuse the proceeds of the equity-sharing agreement consistent with the Eligible Activities specified in Exhibit A(4).

D. If funds are used for the development of an affordable rental housing project, and the Local government makes the PIP assistance in the form of a loan to the Sponsor of the project, the loan shall be evidenced through a Promissory Note secured by a Deed of Trust.

E. If funds are used as a loan, Grantees are required to implement a program income reuse plan describing how repaid loans and any interest thereon shall be reused for Eligible Activities specified in Exhibit A(4).

5. Scope of Work Revisions and Terms/Amendments
A. Adjustments to the terms within this Agreement must be completed as a contract amendment. Contract amendments must be approved by the Department prior to implementation. If approved, contract amendments shall automatically be deemed a part of, and incorporated into, this Agreement. Approval shall be provided in writing, as appropriate. Contract amendments shall include but not be limited to:
1) Changes in the total grant amount;
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
2) Changes in Payee(s);
3) Changes in the expiration date of this Agreement;
4) Changes to the grant term date;
5) Changes to the Reimbursement Deadline.

B. Revisions to the Scope of Work that may not require a contract amendment will be subject to the review and approval of the Housing Policy Development Senior Program Manager, or Manager’s Designee. Such revisions must be approved by the Department prior to implementation. Approval shall be provided in writing, as appropriate. Adjustments to the Scope of Work (Exhibit E) shall include but not be limited to:
1) An increase or reduction of activity scope;

2) Changes to or reallocations among activities that do not change the total award amount;
3) Changes in affordability and level of affordability for each activity; 4) Changes to activity start and/or completion dates.

6. Core Practices
A Grantee or Subrecipient must provide eligible activities in a manner consistent with the housing first practices described in California Code of Regulations, title 25, section 8409(b)(1)-(6). A Grantee or Subrecipient allocated funds for eligible activities that provide permanent housing shall incorporate the core components of Housing First as provided in Section 8255(b) of the Welfare and Institutions Code.

7. Monitoring Grant Activities
A. Grantee shall monitor the activities selected and awarded by them to ensure compliance with PIP requirements. An onsite monitoring visit of Subrecipients and any other service providers may occur whenever determined necessary by the Grantee, but at least once during the Grant period.

B. The Department will monitor the performance of the Grantee based on a risk assessment and according to the terms of this Agreement. The Department may 187
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
also monitor any Subrecipients of the Grantee as the Department deems appropriate based on a risk assessment.

C. As requested by the Department, the Grantee shall submit to the Department all PIP monitoring documentation necessary to ensure that Grantee and its Subrecipients are in continued compliance with PIP requirements. Such documentation requirements and the submission deadline shall be provided by the Department at the time such information is requested from the Grantee.

8. Reporting/Audits
A. During the term of the Standard Agreement, the Department may request a performance report that demonstrates satisfaction of all requirements identified in the Standard Agreement and other Program requirements with emphasis on eligible activities, eligible uses, ineligible uses, and expenditures, according to timelines and budgets referenced herein.

B. Grantees shall submit a report, in the form and manner prescribed by the Department, by April 1 of the year following the receipt of funds, and annually thereafter until funds are expended. The annual report shall contain a detailed report which must include, at a minimum:
1) Identification of the Eligible Activities to which the Grantee committed program funds, and the income levels of households assisted; 2) Amounts awarded to Subrecipients with the activity(ies) identified; 3) Identification of the Eligible Activities upon which the Contractor expended program funds, and the income levels of households assisted and the affordability level for any units assisted; and 4) Close out report for contracts that were fully expended and in which all activities funded were completed during the fiscal year.

C. The Department may request additional information, as needed.

D. At any time during the term of the Standard Agreement, the Department reserves the right to perform or cause to be performed a financial audit. At the Department’s request, the Contractor shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during and over the project life.
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
E. If a financial audit is required by the Department, the audit shall be performed by an independent certified public accountant. Selection of an independent audit firm shall be consistent with procurement standards contained in 24 CFR 85.36. 1) The Contractor shall notify the Department of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by the Department to the independent auditor's working papers.
2) The Contractor is responsible for the completion of audits and all costs of preparing audits.
3) If there are audit findings, the Contractor must submit a detailed response acceptable to the Department for each audit finding within ninety (90) days from the date of the audit finding report.

9. Retention and Inspection Records
A. The Contractor is responsible for maintaining records, which fully disclose the activities funded by the Grant. Adequate documentation of each transaction shall be maintained to permit the determination, through an audit if requested by the State, of the accuracy of the records and the allowability of expenditures charged to Grant funds.

B. The Grantee, its staff, contractors and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for payment vouchers and invoices.

C. The Eligible Applicant shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the project in accordance with GAAP.

D. The Eligible Applicant must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the scope of work, project timeline and budget. Separate bank accounts are not required.

E. The Contractor agrees that the Department or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to 189
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
performance of this Agreement. The Contractor agrees to provide the Department or its designee, with any relevant information requested. 1) The Contractor agrees to permit the Department or its designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with the PLHA Statutes, the NOFA, and this Agreement.

F. The Contractor further agrees to retain all records for a period of five years after the end of the term of this Agreement:
1) If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues, which arise from it. 2) The Contractor also agrees to include in any contract that it enters in an amount exceeding $10,000, the Department’s right to audit the contractor’s records and interview their employees. The Contractor shall comply with the caveats and be aware of the penalties for violation of fraud and for obstruction of investigation as set forth in California Public Code Section 10115.10.

G. The determination by the Department of the eligibility of any expenditure shall be final. If the eligibility of any expenditure cannot be determined because records or documentation are inadequate, the expenditure may be disallowed, and the Department shall determine the reimbursement method for the amount disallowed.

H. The Contractor shall retain all books and records relevant to this Agreement for a minimum of five years after the end of the term of this Agreement. Records relating to any and all audits or litigation relevant to this Agreement shall be retained for five years after the conclusion or resolution of the matter.

I. Subcontractors employed by the Grantee and paid with moneys under the terms of this Standard Agreement shall be responsible for maintaining accounting records as specified above. The Grantee shall monitor and enforce subcontracts accordingly.
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

10. Breach and Remedies of Non-Performance
A. The Department may monitor expenditures and activities of an applicant, as the Department deems necessary, to ensure compliance with Program requirements.

B. Any dispute concerning a question of fact arising under this Standard Agreement that is not disposed of by agreement shall be decided by the Department’s Housing Policy Development Manager, or the Manager’s designee, who may consider any written or verbal evidence submitted by the Grantee. The decision of the Department’s Housing Policy Development Manager or Designee shall be the Department’s final decision regarding the dispute.

C. Neither the pendency of a dispute nor its consideration by the Department will excuse the Grantee from full and timely performance in accordance with the terms of this Standard Agreement.

D. In the event that it is determined, at the sole discretion of the Department, that the Grantee is not meeting the terms and conditions of the Standard Agreement, immediately upon receiving a written notice from the Department to stop work, the Grantee shall cease all work under the Standard Agreement. The Department has the sole discretion to determine that the Grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the Grantee to resume work under the Standard Agreement.

E. Both the Grantee and the Department have the right to terminate the Standard Agreement at any time upon 30 days written notice. The notice shall specify the reason for early termination and may permit the Grantee or the Department to rectify any deficiency(ies) prior to the termination date. The Grantee will submit any requested documents to the Department within 30 days of the early termination notice.

F. At any time, if the Department finds the applicant falsely proposed information in the application or as part of the application review, including documentation related to incentive payments (e.g., affordability, enhancements), the Department may require the repayment of funds or decline reimbursement.

G. The Department may, as it deems appropriate or necessary, require the repayment of funds from a grantee, or pursue any other remedies available to it by law for failure to comply with Program requirements (Health and Safety Code section 50515.04(e).

H. The following shall constitute a breach of this Agreement:
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
1) Grantee’s failure to comply with any of the terms and conditions of this Agreement.
2) Use of, or permitting the use of, grant funds provided under this Agreement for any ineligible costs or for any activity not approved under this Agreement.
3) Any failure to comply with the deadlines set forth in this Agreement unless approved by the Program Manager.

I. In addition to any other remedies that may be available to the Department in law or equity for breach of this Agreement, the Department may at its discretion, exercise the following remedies:
1) Disqualify the Grantee from applying for future Program Funds or other Department administered grant programs;
2) Revoke existing PIP award(s) to the Grantee;
3) Decline reimbursement of funds;
4) Require the return of unexpended Program funds disbursed under this Agreement;
5) Require repayment of Program funds disbursed and expended under this Agreement;
6) Require the immediate return to the Department of all funds derived from the use of Program funds including, but not limited to recaptured funds and returned funds;
7) Seek, in a court of competent jurisdiction, an order for specific performance of the obligation defaulted upon, or the appointment of a receiver to complete the obligations in accordance with the PIP requirements; and
8) Other remedies available at law, or by and through this Agreement.

J. All remedies available to the Department are cumulative and not exclusive.

K. The Department may give written notice to the Grantee to cure the breach or violation within a period of not less than fifteen (15) days. 192
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

11. Termination
A. The Department may terminate this Agreement at any time for cause by giving a minimum of thirty days’ notice of termination, in writing, to the Grantee. Cause shall consist of, violations of any terms and/or special conditions of this Agreement, the PIP Statutes, Guidelines or NOFA. Upon termination of this Agreement, unless otherwise approved in writing by the Department, any unexpended funds received by the Grantee shall be returned to the Department within thirty days of the notice of termination.

B. This Agreement is subject to any additional restrictions, limitations or conditions, or statute, regulations or any other laws, whether federal or those of the State of California, or of any agency, department, or any political subdivision of the federal or the State of California governments, which may affect the provisions, terms or funding of this Agreement in any manner.

C. The Department has the option to terminate this Agreement under the thirty-day cancellation clause or to amend this Agreement to reflect any reduction of funds.

12. Waivers
No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions.

13. Relocation
Grantee shall comply with all requirements of applicable California relocation law (Gov.

Code, § 7260 et seq. and the regulations promulgated thereunder at Cal. Code Regulations, Title. 25, § 6000 et seq.). Any relocation plan for the Development shall be subject to the review and approval by the State.

14. Relationship of Parties
It is expressly understood that this Standard Agreement is an agreement executed by and between two independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party.
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EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

15. Third-Party Contracts
A. All state-government funded procurements must be conducted using a fair and competitive procurement process. The Grantee may use its own procurement procedures as long as the procedures comply with all City/County laws, rules and ordinances governing procurement, and all applicable provisions of California state law.

B. Any contract entered into as a result of this Agreement shall contain all the provisions stipulated in the Agreement to be applicable to the Grantee’s subrecipients, contractors, and subcontractors. Copies of all agreements with subrecipients, contracts, and subcontractors must be submitted to the Department’s program manager upon request.

C. The Department does not have a contractual relationship with the Grantee’s subrecipients, contractors, or subcontractors, and the Grantee shall be fully responsible for all work performed by its sub-recipients, contractors, or subcontractors.

D. In the event the Grantee is partnering with another jurisdiction or forming a collaborative effort between the Grantee and other jurisdictions who are grantees of the PIP, the Grantee acknowledges that each partner and/or all entities forming the SB 2 PIP collaborative are in mutual written agreement with each other but are contractually bound to the Department under separate, enforceable contracts.

E. In the event the Grantee is partnering with another jurisdiction or forming a collaborative effort with other entities that are not grantees of the Prohousing Incentive Program, the Department shall defer to the provisions as noted in subsections 8(B) and 8(C) of this Section.

F. The Grantee agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit E. These conditions shall be met to the satisfaction of the Department prior to disbursement of funds. The Grantee shall ensure that all Subrecipients are made aware of and agree to comply with all conditions of this Agreement and the applicable State requirements governing the use of Grant funds. The Grantee shall ensure that all Subrecipients are qualified to do business and in good standing with the California Secretary of State and the California Franchise Tax Board. Failure to comply with these conditions may result in cancellation of this Agreement. 194
City of South Lake Tahoe
23-PIP-18490

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

16. Compliance with State and Federal Laws, Rules, Guidelines and Regulations A. The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the grant, the Grantee, its contractors or subcontractors, and any other grant activity.

B. During the performance of this Agreement, the Grantee assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, ancestry, national origin, sex, gender, gender identity, gender expression, genetic information, age, disability, handicap, familial status, religion, or belief, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 USC 3601-20) and all implementing regulations, and the Age Discrimination Act of 1975 and all implementing regulations.

C. The Grantee shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements with all of same that each of them in turn include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under the Prohousing Incentive Program.

D. The Grantee shall, in the course of performing project work, fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.) E. The Grantee shall adopt and implement affirmative processes and procedures that provide information, outreach and promotion of opportunities in the Prohousing Incentive Program project to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability.

This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 CFR 92.351.

17. Litigation
195
City of South Lake Tahoe
23-PIP-18490

EXHIBIT D
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable.

B. The Grantee shall notify the Department immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or the Department, and the Grantee shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of the Department.

18. Special Conditions
The State reserves the right to add any special conditions to this Agreement it deems necessary to assure that the policy and goals of the Program are achieved. 196
City of South Lake Tahoe
23-PIP-18490

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

PROGRAM-SPECIFIC PROVISIONS AND SPECIAL CONDITIONS

1. Program-specific Provisions
The following are project-specific terms and conditions and shall inform the references made to project-specific information not contained in the Standard Agreement.

2. Budget Detail:

Grantee has been awarded the following grant activity amounts: $620,000.00 Estimated allocation may not exceed: $620,000.00
Payees: City of South Lake Tahoe
The authorized Payee(s) is/are specified below:

Name: City of South Lake Tahoe Amount: $620,000.00

3. Consistency with Housing Element Programs:

Provide a description of how the Plan is consistent with the programs set forth in the Local government’s Housing Element.

The PIP grant will be used for implementation of affordable housing options in the City and is consistent with the following adopted policies and programs:

City General Plan Housing Element

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

Program 1-2 Development of Substandard/Underutilized Sites

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

Policy 2-5 The City shall recognize that it will become difficult to attract employees if they cannot afford to purchase or rent housing in South Lake Tahoe. The City shall encourage and support programs and activities that create a robust local economy that provides residents with good paying employment and the means to purchase and/or rent housing in the city.
197
City of South Lake Tahoe
23-PIP-18490

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
Program 2-6 Assist Non-Profit Housing Developers
Policy 4-2 The City shall work with surrounding jurisdictions to address the causes of homelessness and the needs of transient homeless persons on a regional basis. The City shall support TCH and El Dorado County Community Services and in its countywide programs address the needs of homeless persons.

Policy 4-4 The City shall provide priority permit processing of projects that are targeted toward special-needs groups, such as seniors, the disabled (including the developmentally disabled), and the homeless, including priority for building plan check, subdivision map review, improvement plans for roadways and utilities, and environmental impact analysis.

Program 4-3 Special-Needs Housing
198
City of South Lake Tahoe
23-PIP-18490

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
Project Timeline, Budget, and Statement of Work (Plan):

PROJECT TIMELINE AND BUDGET AND STATEMENT OF WORK
Objective
Responsible
Party Est. Cost Begin End Deliverable Notes
Objective –
Predevelopment
or Development
Costs for new
construction
affordable
housing project at
3900 Lake Tahoe
Blvd.

City of South
Lake Tahoe,
Novin
Development
$500,000 August
2024
June
2026
75 units are expected to
be completed at 3900
Lake Tahoe Blvd.

The project
at 3900
Lake Tahoe
Boulevard’s
affordability
is expected
to be a
minimum of
55 years
with 75 units
at 30% -
80% AMI.

The
activities in
this
objective
are eligible
for PIP
funding
under PIP
Guidelines
Section 601
(1).

Subtask –
Develop
amendment to
Predevelopment
Loan or new
agreement with

NDC LLC
City of South
Lake Tahoe,
Novin
Development
$0 November
2024
June
2026
Develop amendment to
Predevelopment Loan
with NDC or create new
agreement outlining
construction/development
costs. City will take this
agreement to City
Council on November 5,
2024.

Subtask – Grant
Administration,
Compliance &
Reimbursement
City of South
Lake Tahoe,
Novin
Development
$0 NDC LLC will submit
invoices for work, city
staff will review and
process for
reimbursement.

ObjectiveRehabilitation of
72 units at three
different
properties
purchased with
City of South
Lake Tahoe,
Tahoe
Coalition for
the Homeless
$120,000 August
2024
June
2026
72 units completed and
16 beds in the shelter at
three different properties
will be compliant with City
and State Building Codes
and the City’s Multifamily
The three
Project
Homekey
properties
owned by
Tahoe
Coalition for
199
City of South Lake Tahoe
23-PIP-18490

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024
Project HomeKey
funding
Development Inspection
Program.
the
Homeless is
expected to
be a
minimum of
55 years of
affordability
at 30% AMI
and below.

The
activities in
this
objective
are eligible
for PIP
funding
under PIP
Guidelines
Section 601
(6).

Subtask –
Development of
agreement with
Tahoe Coalition
for the Homeless
for rehabilitation
costs at three
properties
City of South
Lake Tahoe,
Tahoe
Coalition for
the Homeless
$0 November
2024
June
2026
City will develop an
agreement with Tahoe
Coalition for the
Homeless with
rehabilitation needs at
three properties to
conduct with $120,000.

City will take this
agreement to City
Council on November 5,
2024.

Subtask - Grant
Administration,
Compliance &
Reimbursement
City of South
Lake Tahoe,
Tahoe
Coalition for
the Homeless
$0 November
2024
June
2026
Tahoe Coalition for the
Homeless will submit
invoices for work, city
staff will review and
process for
reimbursement.

Total
Estimated
Cost: $620,000
200
City of South Lake Tahoe
23-PIP-18490

EXHIBIT E
Prohousing Incentive Program (PIP)
NOFA Date: 1/23/2024
Approved Date: 06/11/2024
Preparation Date: 11/7/2024

4. Special Terms and Conditions
The following Special Conditions are applicable to this Standard Agreement:

Pursuant to Exhibit D of this Agreement, PIP Program loans and any interest thereon shall be reused consistent with the Eligible Activities specified in Exhibit A(4).
201
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: May 20, 2025
Agenda Item #:6
Agenda Item: Use Agreement with El Dorado County for Multi-Generational Recreation and Aquatics Center
Executive Summary: On January 18, 2022, El Dorado County and the City of South Lake Tahoe entered into the 56-Acre Agreement in which the County and City agreed to a property swap to allow for construction of the new Multi-Generational and Aquatic Center on the preferred site where construction is currently underway. The 56-Acre Agreement anticipated that the parties would subsequently enter into this proposed Use Agreement to address several matters related to the construction and use of the MultiGenerational Center. The Use Agreement covers these matters as well as several issues that have subsequently arisen during construction that require coordination with the County.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Use Agreement with El Dorado County for Multi-Generational Recreation and Aquatics Center Responsible Staff Member: Heather Stroud, City Attorney Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Attachments:
01 - Staff Report - Use Agreement.docx
02 - Use Agreement with County.pdf
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Council Agenda Report- May 20, 2025 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: May 20, 2025
Title: Use Agreement with El Dorado County for Multi-Generational Recreation and Aquatics Center
Location: “56-Acre Property” Near 1000 Rufus Allen Blvd.

Responsible Staff Member: Heather Stroud, City Attorney (530) 542-6046 Background: On January 18, 2022, El Dorado County and the City of South Lake Tahoe entered into an Agreement for the Development, Operation and Maintenance of the 56-Acre Property (“56-Acre Agreement”), in which the County and City agreed to a property swap to allow for construction of the new Multi-Generational Recreation and Aquatic Center (“Multi-Generational Center”) on the preferred site where construction is currently underway. The 56-Acre Agreement anticipated that the parties would subsequently enter into this proposed Use Agreement to address several matters related to the construction and use of the Multi-Generational Center. The Use Agreement Covers these matters as well as several issues that have subsequently arisen during construction of the Multi-Generational Center that require coordination with the County.

Issue and Discussion: The initial term of the Use Agreement is for fifty (50) years, and is automatically extended on an annual basis up to ninety-nine (99) years, to match the term of the Ground Lease the County and City entered into pursuant to the 56-Acre Agreement. The matters included in the Use Agreement that are required to be addressed by the 56-Acre Agreement are:
(1) a location within the new Multi-Generational Center or existing facilities on the 56-Acre Property for the County’s senior nutrition program; (2) the City’s obligation for snow removal on the County EMS property housing the ambulance facility, and at the County Library upon completion of the Multi-Generational Center; and (3) the cost allocations to the parties for the replacement costs of equipment and appliances in the commercial kitchen and dining room of the Multi-Generational Center based on each party’s proportionate use. On these points:
 Section 2.1 provides that the City shall allocate approximately 3,235 square feet of space in the Multi-Generational Center, consisting of the commercial kitchen and dining room, to accommodate the County senior nutrition program, and that this space shall allow for shared use with City programs and activities. Upon completion of the Multi-Generational Center, the County will transition its senior nutrition program from the Senior Center where it currently operates to the allocated space in the Multi-Generational Center. 203
Council Agenda Report- May 20, 2025 Page 2 of 3
 Section 2.2 provides that the City will track the hours the allocated space is used by the County senior nutrition program versus all other programs, including City programs and activities and private rentals, and shall maintain a dedicated reserve fund for the allocated space for the purpose of paying for the cost of repairs, replacements, renovations, or upgrades to this space, in an amount equal to two percent of the total asset value of the allocated space including furnishings, fixtures, and equipment. Based on proportional usage, the County will provide to the City its share of this reserve fund annually.  Section 3 provides the details on the City’s obligations to provide snow removal services on the portions of the 56-Acre Property retained by the County.

In addition to these topics, the Use Agreement addresses the following construction-related issues:
 Section 4 provides the County with a non-exclusive license to use a portion of the City’s Multi-Generational Center property to install, maintain, repair, and replace County equipment serving the County Library. This equipment consists of HVAC, a generator, and electrical transformer equipment.
 Section 5.1 provides the City with a non-exclusive license to use a portion of the County’s Library Property to construct, maintain, repair, and replace certain improvements to the shared parking lot. These improvements consist of electric vehicle charging stations, drainage infrastructure, and pedestrian lighting.
 Section 5.2 provides that the County and City will negotiate a shared parking plan agreement to include joint use and pavement maintenance needs and cost sharing during their annual review meeting.
 Section 5.3 provides that the County will negotiate a permanent easement over the County’s Library Property to for a joint utility trench for gas, electricity, and telephone/broadband to serve the Multi-Generational Center. The City installed this joint utility trench during the first phase of construction.

Financial Implications: There are no direct financial implications of entering into this Use Agreement as no money is changing hands between the County and City. The Use Agreement sets forth the parameters for future cost sharing when repairs and maintenance are needed for the allocated senior nutrition space in the Multi-Generational Center and the shared parking lot with the County Library.

Environmental Considerations: In connection with consideration of the 56 Acres Master Plan and the 56-Acre Agreement, on January 18, 2022, the City completed review under the California Environmental Quality Act (“CEQA”) and approved a Mitigated Negative Declaration. 204
Council Agenda Report- May 20, 2025 Page 3 of 3
This Use Agreement is within the scope of that Mitigated Negative Declaration, and no further environmental review is required under CEQA Guidelines section 15162.

Policy Implications: This action is consistent with Priority 7 (Recreation and Equitable Access for All), specifically Section 7.1 (Complete the New Recreation and Swim Complex and maintain the current complex in the meantime) and Section 7.6 (Partner for Senior Services) in the City of South Lake Tahoe Strategic Plan 2025-2030.
205
1 USE AGREEMENT FOR MULTI-GENERATIONAL RECREATION

AND AQUATICS CENTER

THIS USE AGREEMENT FOR THE MULTI-GENERATIONAL RECREATION AND AQUATICS CENTER (“Agreement”) dated as of this ___ day of _____, 2025, the last day of execution (the “Effective Date”), is entered into by and between the CITY OF SOUTH LAKE TAHOE, a municipal corporation (“City”), and EL DORADO COUNTY, a political subdivision of the State of California (“County”). The City and County may each be referred to as a “Party” or collectively as the “Parties.”

R E C I T A L S
The following Recitals are a substantive part of this Agreement:

A. The City owns approximately 10.2 acres of property in the City of South Lake Tahoe, also known as Assessor’s Parcel Number 026-050-015 (the “City Property”), on which the City is constructing a new Multi-Generational Recreation and Aquatics Center (the “MultiGenerational Center”). The City Property consists of approximately 1.1 acres of property previously held in City ownership and approximately 9.1 acres conveyed to the City by County by Grant Deed dated June 20, 2022, and recorded in the Official Records of El Dorado County on August 24, 2022 as Document No. 2022-0034737.

B. The County owns approximately 4.3 acres of property in the City of South Lake Tahoe containing the County Library, also known as Assessor’s Parcel Number 026-050-020 (the “County Library Property”). The County also owns approximately 25.1 acres of property, also known as Assessor’s Parcel Number 026-050-018, on which the existing Senior Center building and other facilities are located (the “County Senior Center Property”), and which is leased to the City under a ground lease dated June 13, 2022 and recorded with the County Recorder-Clerk on August 24, 2022 as Document No. 2022-0034736 (“Ground Lease”), with the exception of a carve-out for the County’s ambulance services building and grounds that is not subject to the Ground Lease (“County EMS Property”).

C. Upon completion of construction, the Multi-Generational Center and County Library will share a parking lot, which is partially on the City Property and partially on the County Library Property (“Shared Parking Lot”).

D. On January 25, 2022, the County and City entered into an Agreement for Development, Operation and Maintenance of the 56-Acre Property (“56-Acre Agreement”), which anticipated that the Parties would subsequently enter into this Use Agreement to address:
(1) a location within the Multi-Generational Center or existing facilities on the 56-Acre Property for the County’s senior nutrition programs; (2) the City’s obligation for snow removal on the County EMS Property, and on the County Library Property upon completion of the MultiGenerational Center; and (3) the cost allocations to the Parties for the replacement costs of equipment and appliances in the commercial kitchen and dining room of the Multi-Generational Center based on each Party’s proportionate use. In addition to these topics, the Parties desire to address the following additional issues in this Use Agreement: (4) County maintenance of the 206
2 HVAC equipment for the County Library which is located on the City Property; (5) City installation and maintenance of electric vehicle charging stations, drainage infrastructure, and pedestrian lighting, all as part of the construction of the Multi-Generational Center, in the parking lot on the County Library Property; (6) the cost allocations to the Parties for the pavement maintenance and repair costs for the Shared Parking Lot; and (7) an easement over the County Library Property for a joint utility trench for gas, electricity, and telephone/broadband to serve the Multi-Generational Center.

E. In connection with consideration of the 56 Acres Master Plan, also approved on January 18, 2022, and the 56-Acre Agreement, the City completed review under the California Environmental Quality Act (“CEQA”) and prepared a Mitigated Negative Declaration, which was approved on January 18, 2022. This agreement is within the scope of that Mitigated Negative Declaration, and no further environmental review is required under CEQA Guidelines section 15162.

A G R E E M E N T
NOW, THEREFORE, City and County hereby agree as follows:

1. REPRESENTATIONS AND WARRANTIES / TERM.

1.1 Representations and Warranties.
(a) City Representations. City represents and warrants to County as follows:
(i) Authority. City is a municipal corporation of the State of California. City has full right, power and lawful authority to perform its obligations hereunder and the execution, performance and delivery of this Agreement by City has been fully authorized by all requisite actions on the part of City.
(ii) No Conflict. City’s execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which City is a party or by which it is bound. (iii) Ownership of Property. City is the owner of the City Property. (iv) No Litigation or Other Proceeding. To City’s current actual knowledge, no litigation or other proceeding (whether administrative or otherwise) is outstanding or has been threatened which would prevent, hinder or delay the ability of City to perform its obligations under this Agreement.

Until the expiration or earlier termination of this Agreement, City shall, upon learning of any fact or condition which would cause any of the warranties and representations in this Section (a) not to be true, immediately give written Notice of such fact or condition to County.
(b) County’s Representations. County represents and warrants to City as follows:
207
3 (i) Authority. County is a political subdivision of the State of California. County has full right, power and lawful authority to undertake all of its obligations hereunder and the execution, performance and delivery of this Agreement by County has been fully authorized by all requisite actions on the part of County. (ii) No Conflict. County’s execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which County is a party or by which it is bound. (iii) Ownership of Property. County is the owner of the County Library Property and County Senior Center Property.
(iv) No Litigation or Other Proceeding. To County’s current actual knowledge, no litigation or other proceeding (whether administrative or otherwise) is outstanding or has been threatened which would prevent, hinder or delay the ability of County to perform its obligations under this Agreement.

Until the expiration or earlier termination of this Agreement, County shall, upon learning of any fact or condition which would cause any of the warranties and representations in this Section (b) not to be true, immediately give written Notice of such fact or condition to City.

1.2 Term. The term of this Agreement shall be fifty (50) years from the effective date of the Ground Lease (through June 12, 2072), unless and until earlier terminated as provided herein (“Initial Term”). The Agreement shall be automatically extended on an annual basis up to a total of ninety-nine (99) years, unless either Party notifies the other Party no later than sixty days prior to the end of the Initial Term, or the then-current term, of a Default (as defined in Section 6.2 below) under this Agreement. If the defaulting Party does not cure the Default as provided herein, the other Party may terminate this Agreement. The Initial Term in addition to any automatic extensions pursuant to this Section 1.2 shall be referred to as the “Term.”

2. COUNTY SENIOR PROGRAMS.

2.1 Multi-Generational Center. In accordance with Section 5.3(b) of the 56-Acre Agreement, the City shall allocate approximately 3,235 square feet of space in the MultiGenerational Center, consisting of a commercial kitchen and dining room to accommodate the County senior nutrition program, which space shall allow for shared use with City programs and activities (“Shared Senior Nutrition Space”), as shown in Exhibit “A.” Upon completion of the Multi-Generational Center, the County shall transition the senior nutrition program from the Senior Center to the Shared Senior Nutrition Space in the Multi-Generational Center. The City, County, and/or senior organizations may schedule other older adult services and programs in any other space in the Multi-Generational Center through the City’s normal scheduling process. The Parties, during their annual meeting, will review and discuss the programs and priorities in the Multi-Generational Center, including the County’s and City’s commitment to serving seniors and allocation of staff or resources dedicated to such services and programs coordination.

2.2 Cost Sharing. The City shall track the number of hours the Shared Senior Nutrition Space is used by the County and the number of hours it is used for all other programs, including City programs and activities and private rentals. The City shall provide the County 208
4 with an annual report no later than June 30 of each fiscal year documenting the County’s proportional use of the Shared Senior Nutrition Space, which will be provided along with the annual report documenting the City’s Net Operating Profits, balance of the Reserve Fund, and the use of the Reserve Fund for expenditures for the 56-Acre Property referenced in Section 4.1 of the Ground Lease. The City shall establish and maintain a dedicated reserve fund for the Shared Senior Nutrition Space for the purpose of paying for the cost of repairs, replacements, renovations, or upgrades to the Shared Senior Nutrition Space (“Shared Space Reserve Fund”).

The City shall use the Shared Space Reserve Fund for general repair and replacement, renovation and upgrades, and major capital improvement projects, and shall not use the Reserve Fund for periodic, recurring, or routine maintenance. The Shared Space Reserve Fund shall be set at an amount equal to two percent (2%) of the total asset value of the Shared Senior Nutrition Space including furnishings, fixtures, and equipment. Commencing the first year following completion of the Multi-Generational Center, and annually thereafter no later than 30 days after receiving the City’s annual report, the County shall provide to the City its proportional share of the Shared Space Reserve Fund. The City intends to fund its portion of the Shared Space Reserve Fund within the Reserve Fund referenced in Section 4.1 of the Ground Lease.

2.3 Use of Senior Center. Upon completion of the Multi-Generational Center, the County, at its option, may elect to continue providing older adult services and programs at the Senior Center in addition to those provided at the Multi-Generational Center.

3. SNOW REMOVAL.

3.1 County Library Property. Upon completion of the Multi-Generational Center, and for as long as the County Library Property is in use, the City will provide snow removal services to the County Library Property, to include the driveway, parking lot, and walkways.

3.2 County EMS Property. The City will continue to provide snow removal services to the County EMS Property for as long as it is in use, to include the driveway, parking lot, and walkways.

3.3 Snow Storage. The City may store snow it has removed from the County Library Property, County EMS Property, and other paved surfaces within the 56 Acres Property in convenient location(s) on the 56 Acres Property within the City’s reasonable discretion that will not impede facility access or parking.

3.4 Snow Removal Frequency and Level of Service. Snow removal services on County Library Property and County EMS Property shall be provided to each facility in the order listed below and according to the access requirements for each facility. Parking lots, handicap parking spaces, driveways, walkways, and sidewalks shall be cleared when the snow level at the facility is at or has exceeded three (3) inches of snow accumulation. Priority one (1) locations require that when the specified accumulation exists, snow removal shall be provided twenty-four (24) hours per day, from November 1 to April 30. Snow stakes shall be installed and maintained for the purpose of delineating and identifying the parking lots, driveways, sidewalks, and walkways.
209
5 Access Requirements
Priority Address
Facility
Description
24 hour
/ 7day
access
required
Snow
Removal
by: Weekdays Weekends Holidays
1 3066
Lake
Tahoe
Blvd
Cal Tahoe
JPA
Ambulance
Services Yes
Clear At
All Times Yes Yes Yes
2 1000
Rufus
Allen
Blvd
LibraryPublic
Access No 9:00am
TuesdayFriday Saturday No
2 1000
Rufus
Allen
Blvd
LibraryEmployee
Parking No 8:00am
MondayFriday Saturday No

4. MAINTENANCE OF COUNTY HVAC EQUIPMENT ON CITY PROPERTY.

4.1 The City hereby provides the County a non-exclusive license to use a portion of the City Property to install, maintain, repair, and replace the County’s HVAC, generator, and electrical transformer equipment which serves the County Library, as shown on Exhibit “B.” The City shall grant no rights inconsistent with the reasonable exercise by the County of its rights to maintain, repair, and replace its HVAC equipment under this license. The County shall, at its sole cost and expense, obtain any and all permits which may be required by any law, regulation, or ordinance with respect to its HVAC equipment. If the County removes or relocates its HVAC equipment, then the County shall restore the license area to the same condition it was prior to the County’s use within thirty (30) business days after the relocation or removal of the HVAC equipment.

5. SHARED PARKING LOT.

5.1 City Infrastructure. As part of the construction of the Multi-Generational Center, the City intends to construct improvements in the Shared Parking Lot including asphalt paving modifications, electric vehicle charging stations, drainage infrastructure, and pedestrian lighting as shown on Exhibit “B” (“Shared Parking Lot Improvements”). The County hereby provides the City a non-exclusive license to use a portion of the County Library Property to construct, maintain, repair, and replace the Shared Parking Lot Improvements. Prior to commencing the Shared Parking Lot Improvements on County Library Property, City shall submit at least ten (10) days in advance its proposed schedule therefor, including the City’s proposed hours of work, for review and approval by the County, which approval will not be unreasonably conditioned, delayed, or withheld, provided the City agrees to coordinate and cooperate with the County in the performance of the Shared Parking Lot Improvements so as not to unreasonably interfere with Library operations during operating hours. The County shall grant 210
6 no rights inconsistent with the reasonable exercise by the City of its rights to maintain, repair, and replace the Shared Parking Lot Improvements under this license. The City shall, at its sole cost and expense, obtain any and all permits which may be required by any law, regulation, or ordinance with respect to the Shared Parking Lot Improvements. If the City removes or relocates some or all of the Shared Parking Lot Improvements, then the City shall restore the affected portion of the license area to the same condition it was prior to the City’s use within thirty (30) business days after the relocation or removal of the Shared Parking Lot Improvements. The City is responsible for the utility costs associated with the Shared Parking Lot Improvements.

5.2 Parking Plan and Pavement Maintenance. The Parties will discuss and negotiate a shared parking plan agreement to address the Parties’ joint use of the Shared Parking Lot spaces, including pavement maintenance needs and cost sharing, during their annual review meeting.

5.3 Easement for Joint Utility Trench. As part of the construction of the MultiGenerational Center, the City constructed a joint utility trench for gas, electricity, and telephone/broadband to serve the Multi-Generational Center, which was necessarily located in a portion of the County Library Property, as indicated on Exhibit “B.” The Parties will negotiate a permanent easement for the joint utility trench.

6. ANNUAL REVIEW, DEFAULTS AND REMEDIES.

6.1 Annual Review. The Parties shall meet at least once a year to review the status of the terms of the Agreement and to ensure adequate communication and strengthen the relationship between the Parties. Prior to the annual meeting date, each Party shall submit to the other Party an update on its compliance with the terms and obligations of this Agreement. This annual review shall be completed in conjunction with the annual review set forth in Section 7.1 of the 56-Acre Agreement.

6.2 Default Remedies. Failure by either Party to perform any action or covenant required by this Agreement within the time periods provided herein following Notice shall constitute a “Default” under this Agreement. A Party claiming a Default shall give written Notice of Default to the other Party specifying the Default complained of. Except as otherwise expressly provided in this Agreement, the claimant shall not institute any proceeding against the other Party if such Party within 60 days following receipt of such Notice of Default immediately, with due diligence, commences to cure, correct or remedy such failure or delay and completes such cure, correction or remedy with diligence.

6.3 Dispute Resolution. In the event that the Party receiving a Notice of Default disputes the allegations or is not intending to cure, correct or remedy the alleged default, the Parties shall promptly meet in an effort to resolve the issues raised. If the Parties fail to resolve the issues raised, mediation may be pursued by mutual agreement. It is the intent of the Parties to the extent possible that litigation be avoided as a method of dispute resolution.

6.4 Institution of Legal Actions. Except as otherwise specifically provided herein, upon the occurrence of a Default, the Parties have the right, in addition to any other rights or remedies, to institute any action at law or in equity to cure, correct, prevent or remedy any 211
7 Default, or to recover damages for any Default, or to obtain any other remedy consistent with the purpose of this Agreement. The Parties’ remedies in the event of a Default shall be limited to obtaining specific performance or injunctive relief. Such legal actions must be instituted in the Superior Court of the County of El Dorado, State of California, or in the Federal District Court for the Eastern District of the State of California. Neither Party shall have the right to recover any consequential, punitive or special damages.

6.5 Termination. This Agreement may be terminated by mutual consent of the Parties.

6.6 Rights and Remedies Are Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party, except as otherwise expressly provided herein.

6.7 Inaction Not a Waiver of Default. Any failures or delays by either Party in asserting any of its rights and remedies as to any Default shall not operate as a waiver of any Default or of any such rights or remedies, or deprive either such Party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.

7. GENERAL PROVISIONS.

7.1 No Assignment. The qualifications and identity of the Parties are of particular concern and material considerations for entering into this Agreement. Neither Party shall have the right during the Term to assign all or any portion of its rights, obligations or interests under this Agreement.

7.2 Mutual Indemnity.
(a) County shall indemnify, defend (with counsel reasonably acceptable to City), protect and hold City and its officers, employees, agents and representatives, harmless from any and all liabilities, obligations, orders, claims, damages, fines, penalties and expenses, including attorneys’ fees and costs (“Claims”) to the extent caused by any of County’s activities under this Agreement or by anyone directly or indirectly employed or contracted with by County and whether such Claims shall accrue or be discovered before or after termination of this Agreement.
(b) City shall indemnify, defend (with counsel reasonably acceptable to County), protect and hold County and its officers, employees, agents and representatives, harmless from any and all Claims to the extent caused by any of City’s activities under this Agreement or by anyone directly or indirectly employed or contracted with by City and whether such Claims shall accrue or be discovered before or after termination of this Agreement.

7.3 Compliance with Laws; Indemnity and Waiver. Both City and County shall carry out all work and development under this Agreement in conformity with all applicable laws, ordinances, statutes, codes, rules, regulations, orders and decrees, of the United States, the State 212
8 of California, the County of El Dorado, the City, and of any other political subdivision or instrumentality exercising jurisdiction (collectively, the “Governmental Requirements”), including all state labor laws and standards; the County zoning and development standards; building, plumbing, mechanical and electrical codes; all other provisions of the South Lake Tahoe City Code; and all applicable disabled and handicapped access requirements, including the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq. Each Party shall defend, indemnify and hold harmless the other Party and its officers, employees, volunteers, agents and representatives from and against any and all present and future liabilities, obligations, orders, claims, damages, fines, penalties and expenses, including attorneys’ fees and costs, arising out of or in any way connected with the first Party’s failure to comply with all Governmental Requirements.

7.4 Notices, Demands and Communications between the Parties. Any approval, disapproval, demand, document or other notice (“Notice”) which either Party may desire to give to the other Party under this Agreement must be in writing and shall be given by certified mail, return receipt requested and postage prepaid, personal delivery, or reputable overnight courier (but not by facsimile or email), to the Party to whom the Notice is directed at the address of the Party as set forth below, or at any other address as that Party may later designate by Notice.

To City: City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Attention: Joseph D. Irvin, City Manager
To County: El Dorado County
Chief Administrative Office
330 Fair Lane
Placerville, CA 95667
Tiffany Schmid, County Chief Administrative
Officer
Any Notice shall be deemed received on the date of delivery if delivered by personal service, on the date of delivery or refused delivery as shown by the return receipt if sent by certified mail, and on the date of delivery or refused delivery as shown by the records of the overnight courier if sent via nationally recognized overnight courier. Notices sent by a Party’s attorney on behalf of such Party shall be deemed delivered by such Party.

7.5 Enforced Delay; Extension of Times of Performance. Subject to the limitations set forth below, performance by either Party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; governmental restrictions or priority; litigation, including court delays; or unusually severe weather; acts or omissions of the other Party. An extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if Notice by the Party claiming such extension is sent to the other 213
9 Party within 30 days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and County.

7.6 Relationship between City and County. It is hereby acknowledged that the relationship between City and County is not that of a joint venture and that City and County shall not be deemed or construed for any purpose to be the agent of the other.

7.7 Approvals and Actions. Whenever a reference is made herein to an action or approval to be undertaken by either Party, the City Manager of City or County Chief Administrative Officer of County, as applicable, or his or her designee is authorized to act on behalf of such Party, unless specifically provided otherwise or the context requires otherwise.

7.8 Counterparts. This Agreement may be signed in multiple counterparts each of which shall be deemed to be an original.

7.9 Integration. This Agreement, including the exhibits hereto, contain the entire understanding between the Parties relating to the transactions contemplated by this Agreement.

Each Party is entering this Agreement based solely upon the representations set forth herein and upon each Party’s own independent investigation of any and all facts such Party deems material.

7.10 Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or of any of its terms. References to section numbers are to sections in this Agreement, unless expressly stated otherwise. References to specific section numbers shall include all subsections which follow the referenced section.

7.11 Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The words “include” and “including” shall be construed as if followed by the words “without limitation.” The Parties acknowledge that each Party and his, her or its counsel have reviewed and revised this Agreement and that the rule of construction to the effect that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this Agreement or any document executed and delivered by either Party in connection with this Agreement.

7.12 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each Party.

7.13 Severability. If any term, provision, condition or covenant of this Agreement or its application to any Party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.

7.14 Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day, and including the last day, unless the last day 214
10 is a holiday or Saturday or Sunday, and then that day is also excluded. The term “holiday” shall mean all holidays as specified in Sections 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time.

7.15 Legal Advice. Each Party represents and warrants to the other the following:
they have carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other Party, or their respective agents, employees, or attorneys, except as specifically set forth in this Agreement.

7.16 Time of Essence. Time is expressly made of the essence with respect to the performance by City and County of each and every obligation and condition of this Agreement.

7.17 Mutual Cooperation. Each Party agrees to cooperate with the other to implement the terms and conditions of this Agreement and, in that regard, shall execute any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement.

7.18 Conflicts of Interest. No member, official or employee of County or City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested.

7.19 Non-liability of Officials and Employees. No member, official or employee of either Party shall be personally liable to the other Party, in the event of any Default, breach or for any amount which may become due, or on any obligations under the terms of this Agreement.

Each Party hereby waives and releases any claim it may have against the members, officials or employees of the other Party with respect to any Default, breach or for any amount which may become due under the terms of this Agreement.

7.20 Applicable Law. The laws of the State of California, without regard to conflict of laws principles, shall govern the interpretation and enforcement of this Agreement.

6.20 Contract Administrators. The County officer or employee with responsibility for administration of this Agreement is Tiffany Schmid, Chief Administrative Officer, or successor. The City officer or employee for responsibility for administration of this Lease is Joe Irvin, City Manager, or successor.
[Remainder of page intentionally left blank]
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11 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

CITY:

CITY OF SOUTH LAKE TAHOE, a
municipal corporation
By:

Tamara Wallace, Mayor
COUNTY:

EL DORADO COUNTY, a political
subdivision of the State of California
By:

Chair, Board of Supervisors
APPROVED AS TO FORM:

By:

Heather Stroud, City Attorney
ATTEST:

By:

Susan Blankenship, City Clerk
ATTEST:

Kim Dawson
Clerk of the Board of Supervisors
By:

Deputy Clerk
216

EXHIBIT A

ALLOCATED SPACE FOR SENIOR NUTRITION
217
Allocated Space For
Senior Nutrition
Path: \\gis\share\Projects\CityAttorney\GeneralCityAttorneyProjects\GeneralCityAttorneyProjects.aprx | Rec Center Allocated Space for Senior Nutrition | 4/25/2025 Gym
Commercial Kitchen
~1,360 sf
Dining Room Area
~828 sf
Lobby
Exhibit A
218

EXHIBIT B

SITE PLAN
219
Shared Use
Site Plan
Path: \\gis\share\Projects\CityAttorney\GeneralCityAttorneyProjects\GeneralCityAttorneyProjects.aprx | Rec Center Shared Use Site Plan | 4/30/2025 Recreation &
Aquatics Center
Library
HVAC
Trash Enclosure
Water Tower
Shared Full Parking Area
Joint Utility Trench
Library Staff
Parking
50 Rufus Allen Blvd
Map Extent
EV Charing
Proposed Lighting
Parcel Line
APN: 026-050-020
County of El Dorado
APN: 026-050-015
City of South Lake Tahoe
Exhibit B
Generator
Electrical Transformer
Switchgear/ATS
220
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: May 20, 2025
Agenda Item #:7
Agenda Item: 2024 Road Rehabilitation Project - Ratification of Contract Change Orders No. 1, 2, 3, 4, and 5 with All American Construction, Inc.

Executive Summary: City Council is asked to ratify five Contract Change Orders addressing issues that arose during construction, which were executed by the Public Works Director for the 2024 Road Rehabilitation Project.

Requested Action / Suggested Motions: Pass a Motion to ratify five 2024 Road Rehabilitation Project Contract Change Orders in the amount of $259,752.31 (within the approved 10% contingency), for a total Contract value of $3,937,2888.01, including other project quantity overruns and underruns.

Responsible Staff Member: Stephen Anderjack, Project Manager Reviewed and Approved By: Anush Nejad, Director of Public Works Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff Report-All American Construction, Inc..docx
02-Final Quantities.pdf
03 - CCO 1.pdf
04 - CCO 2.pdf
05 - CCO 3.pdf
06 - CCO 4.pdf
07 - CCO 5.pdf
221
Council Agenda Report- May 20, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 20, 2025
Title: 2024 Road Rehabilitation Project - Reconciliation of Contract Change Orders No. 1, 2, 3, 4, and 5 with All American Construction, Inc.

Location: Keller Rd. Saddle Rd. Sterling Ct. Sherman Wy. Ledge Ct. Regina Rd. Needle Peak Rd. 10th St.

Responsible Staff Members: Stephen Anderjack, Project Manager

Background: The annual Road Rehabilitation Project is the City’s annual paving project that restores deteriorated and failed roadways to new condition. This is accomplished by removing the existing asphalt and replacing it with new asphalt. This project is funded with Measure S funding, SB-1 Road Maintenance and Rehabilitation Account (RMRA) funding, and utility reimbursements.

The 2024 Road Rehabilitation Project was awarded on June 04, 2024, to All American Construction, Inc for a total contract value of $3,609,812.40. Construction began on June 4, 2024, and was completed on September 18, 2024.

Issue and Discussion: During reconstruction of the roadways, the Contractor encountered unforeseen groundwater and road issues that required additional work not foreseen in the original contract.

Some Project construction bid item quantities were less than the amount estimated within the agreement awarded to All American Construction, Inc. and some quantities constructed were more than the estimated amount awarded to All American Construction Inc. Public Works directed the Contractor to perform extra work through Contract Change Order (CCO) where work was not defined within the PS&E bid documents. Five CCOs were approved for Project construction.

All change order and quantity overrun/underruns are below the 10% ($360,981.24) authorized by City Council upon award.

Financial Implications: All Contract Change Orders (CCO’s) are listed in Table 1 below:

Table 1 - Contract Change Orders (CCO)
CCO No. CCO Description CCO Amount
1 Regina Underdrain, Keller Road Repair $189,280.00
2 Needle Peak Additional Paving ($21,622.75)
3 Regina Tie In, AC Dike Removal $10,730.06
4 Regina Upper Underdrain $44,240.00
5 Extra Tonnage on Needle Peak and Regina Rd $37,125.00 Total CCO Amount: $259,752.31
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Council Agenda Report- May 20, 2025 Page 2 of 2
With all CCO’s and quantity overruns and underruns, the total contract value is $3,937,288.01.

This is $327,475.61 above the original contract value of $3,609,812.40, but within the 10% ($360,981.24) contingency approved by the City Council.

No additional funding is being requested for the CCOs City Council is considering for this reconciliation.

Environmental Considerations: This project is considered roadway rehabilitation and will not extend the boundaries of the existing roadways. As such, the project is exempt from Tahoe Regional Planning Agency (TRPA) permits and the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301(c) (Existing Facilities). All applicable best management practices will be utilized to protect air and water quality during construction.

Policy Implications: The City Council has included Street Rehabilitation as one of their Strategic Priorities and Goals in their 2021-2026 Strategic Plan. This project will help to accomplish the City Council’s objective as well as provide adequate roadways for all to use. 223
Project No.:

Date:

ITEM ITEM DESCRIPTION UNIT ESTIMATED QUANTITY UNIT PRICE ITEM TOTAL Payment Retention Quantity Amount Quantity Amount Quantity Amount 5%
1 Mobilization/Demobilization LS 1 $ 50,000.00 $ 50,000.00 0.75 37,500.00 $ 0.25 12,500.00 $ 1.00 50,000.00 $ 2,500.00 $ 2 Traffic Control LS 1 $ 81,000.00 $ 81,000.00 0.75 60,750.00 $ 0.25 20,250.00 $ 1.00 81,000.00 $ 4,050.00 $ 3 Temporary Erosion Control LS 1 $ 3,500.00 $ 3,500.00 0.75 2,625.00 $ 0.25 875.00 $ 1.00 3,500.00 $ 175.00 $ 4 Fabricate and Install Project Signs EA 2 $ 1,500.00 $ 3,000.00 0.00 - $ - $ 0.00 - $ - $ 5 Lower and Raise Utilites (water, sewer, strom drain, gas, ect.) EA 100 $ 1,450.00 $ 145,000.00 47.00 68,150.00 $ 61.00 88,450.00 $ 108.00 156,600.00 $ 7,830.00 $ 6 Dig Out & Repair (Unsuitable Material) CY 100 $ 785.00 $ 78,500.00 96.20 75,517.00 $ - $ 96.20 75,517.00 $ 3,775.85 $ 7 Mill 4" AC SY 55,920 $ 1.23 $ 68,781.60 57322.20 70,506.31 $ - $ 57322.20 70,506.31 $ 3,525.32 $ 8 Placement of 4" AC (2 Lifts) SY 55,920 $ 50.00 $ 2,796,000.00 57322.20 2,866,110.00 $ - $ 57322.20 2,866,110.00 $ 143,305.50 $ 9 Roadway Striping (12" Stop Bar) LF 160 $ 10.00 $ 1,600.00 140.00 1,400.00 $ - $ 140.00 1,400.00 $ 70.00 $ 10 Roadway Striping (4" Yellow Line) LF 400 $ 5.00 $ 2,000.00 350.00 1,750.00 $ - $ 350.00 1,750.00 $ 87.50 $ 11 AC Dike LF 200 $ 18.00 $ 3,600.00 5290.00 95,220.00 $ 407.00 7,326.00 $ 5697.00 102,546.00 $ 5,127.30 $ A3-1 Mobilization/Demobilization LS 1 $ 6,000.00 $ 6,000.00 0.75 4,500.00 $ 0.25 1,500.00 $ 1.00 6,000.00 $ 300.00 $ A3-2 Traffic Control LS 1 $ 8,000.00 $ 8,000.00 0.75 6,000.00 $ 0.25 2,000.00 $ 1.00 8,000.00 $ 400.00 $ A3-3 Temporary Erosion Control LS 1 $ 1,200.00 $ 1,200.00 0.75 900.00 $ 0.25 300.00 $ 1.00 1,200.00 $ 60.00 $ A3-4 Lower and Raise Utilites (water, sewer, strom drain, gas, ect.) EA 25 $ 1,450.00 $ 36,250.00 12.00 17,400.00 $ 9.00 13,050.00 $ 21.00 30,450.00 $ 1,522.50 $ A3-5 Dig Out & Repair (Unsuitable Material) CY 25 $ 1,300.00 $ 32,500.00 0.00 - $ - $ 0.00 - $ - $ A3-6 Mill 4" AC SY 5,245 $ 2.84 $ 14,895.80 5712.00 16,222.08 $ - $ 5712.00 16,222.08 $ 811.10 $ A3-7 4" of AC (2 Lifts) SY 5,245 $ 53.00 $ 277,985.00 5712.00 302,736.00 $ - $ 5712.00 302,736.00 $ 15,136.80 $ Core Section Thickness Deduction LS 0 $1.00 $0.00 -9444.44 (9,444.44) $ - $ -9444.44 (9,444.44) $ (472.22) $

0.00 - $ - $ 0.00 - $ - $
SUBTOTAL $3,609,812.40 $ 3,617,841.95 $ 146,251.00 $ 188,204.65 3,764,092.95 $ CCO No. CCO Description UNIT ESTIMATED QUANTITY UNIT PRICE ITEM TOTAL Payment Retention Quantity Amount Quantity Amount Quantity Amount 5%
C1.1 Regina Underdrain LF 130 300.00 $ $39,000.00 112.00 33,600.00 $ - $ 112.00 33,600.00 $ 1,680.00 $ C1.2 Keller Rd Repair LS 1 $ 47,500.00 $47,500.00 1.00 $ 47,500.00 $ - 1.00 $ 47,500.00 $ 2,375.00C3.1 Regina Underdrain Tie In LS 1 $ 5,713.68 $5,713.68 1.00 $ 5,713.68 $ - 1.00 $ 5,713.68 $ 285.68C3.2 Remove Double Stacked Dike Curb LS 1 $ 5,016.38 $5,016.38 1.00 $ 5,016.38 $ - 1.00 $ 5,016.38 $ 250.82C4.1 Regina Upper Underdrain LF 158 $ 280.00 $44,240.00 158.00 $ 44,240.00 $ - 158.00 $ 44,240.00 $ 2,212.00C5.1 Extra Tonnage on Needle Peak and Regina Rd TON 225 $ 165.00 $37,125.00 225.00 $ 37,125.00 $ - 225.00 $ 37,125.00 $ 1,856.25 $0.00 0.00 $ - $ - 0.00 $ - $ - $0.00 0.00 $ - $ - 0.00 $ - $ - Change Order Total: $ 178,595.06 $ 173,195.06 $ - $ 173,195.06 $ 8,659.75 Payment Application Totals: $ 3,791,037.01 $ 146,251.00 $ 3,937,288.01 $ 196,864.40 Original Contract Amount: $3,609,812.40 Total Work Competed to Date $ 3,937,288.01 Contract Amount w Change Orders $ 3,942,688.01 Total Retention $ 196,864.40 Previous Payment Applications Work Completed This Period Total Work Completed to DatePrevious Payment Applications Work Completed This Period Total Work Completed to Date

CHANGE ORDER WORK
2024 Road Rehabilitation Project PWC: 24-30150005
Payment Request No. 5 Retainage Release
224
ITEM ITEM DESCRIPTION UNIT ESTIMATED QUANTITY UNIT PRICE ITEM TOTAL Payment Retention Quantity Amount Quantity Amount Quantity Amount 5%
Previous Payment Applications Work Completed This Period Total Work Completed to Date $ 5,400.00 Amount of This Request $ 196,864.40
Retention This Request $ - Amount Due with Retention Release: $ 196,864.40 225
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: May 20, 2025
Agenda Item #:8
Agenda Item: Ordinance Amending Parking Prohibitions on Off Street Parking Facilities (Second Reading)
Executive Summary: This item is an amendment to the City Code authorizing various parking prohibitions, restrictions, and regulations in municipal off-street parking facilities. A first reading of this ordinance amendment was held by City Council at their regular meeting on May 6, 2025.

Requested Action / Suggested Motions: Pass an Ordinance amending Article VII of Chapter 4.25 of the South Lake Tahoe City Code to add Section 4.25.607 authorizing City Council, by Resolution, to establish certain parking prohibitions, restrictions, and regulations in municipal off-street parking facilities.

Responsible Staff Member: David Stevenson, Police Chief, and Anush Nejad, Director of Public Works Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-STAFF REPORT-Ordinance Off Street Parking Facilities (2nd Reading).docx 02 - Ordinance to Amend Off Street Parking.docx
03- Legal Notice Publication.pdf
241
Council Agenda Report May 20, 2025 1
City of South Lake Tahoe
Report to City Council
Meeting Date: May 20, 2025
Title: Ordinance Amending Parking Prohibitions on Off Street Parking Facilities (Second Reading) Location: Citywide
Responsible Staff Members: David Stevenson, Police Chief Background: At the regular City Council meeting on May 6, 2025, the City Council passed a motion approving the first reading (by title only) of an Ordinance to amend Article VII of Chapter

4.25 of the South Lake Tahoe City Code to add Section 4.25.607 authorizing City Council, by resolution, to establish certain parking prohibitions, restrictions, and regulations at municipal offstreet parking facilities (As authorized by California Vehicle Code Section 22519).

At the same meeting, City Council also approved a resolution authorizing certain parking prohibitions and restrictions to maintain the current parking configuration at the Stateline Transit Center to become effective upon the effective date of this ordinance amendment.

Issue and Discussion: If adopted, this ordinance authorizes City Council, via resolution, to adopt various parking prohibitions, restrictions, and regulations in municipal off-street parking facilities.

Financial Implications: No impact to the general fund. Financial impacts would be brought in any future resolutions for City Council consideration.

Environmental Considerations: The proposed action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (creation of government funding mechanisms or government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).

Policy Implications: This project is consistent with the City’s Strategic Plan including priority 1.4, Transportation, and priority 5.1 Public Safety - Action Item 7, parking enforcement in high visitor areas.
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Ordinance 2025-XXX May 20, 2025 Page 1 of 4
Ordinance 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
May 20, 2025
An Ordinance Amending Article VII (Parking Garage Facility Regulations) of Chapter 4.25 (Motor Vehicles and Traffic) of Title 4 of the South Lake Tahoe City Code to Add Section 4.25.607 to Provide Authority to Establish No Parking Zones, Loading Zones, Permit Parking, and Restrictions on Overnight Parking in Municipal Off-Street Parking Facilities

FINDINGS
A. California Vehicle Code section 22519 authorizes local authorities, by ordinance or resolution, to prohibit, restrict, or regulate the parking, stopping, or standing of vehicles on any off-street parking facility which the local authority owns or operates, once signs giving notice of such restrictions have been erected.

B. The Police Department desires to establish clear authority to enforce parking restrictions currently marked and signed at various municipal off-street parking facilities including the Stateline Transit Center, Parking Garage at 1 Bellamy Way, and parking lot at 3069 Harrison Avenue, and the establish authority to create additional parking restriction at municipal offstreet parking facilities in the future by resolution.

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

SECTION 1. 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 read in its entirety as follows:

Article VII. Municipal Off-Street Parking Facility Regulations

4.25.580 Purpose.

This article is adopted for the purpose of regulating municipal off-street parking facilities, defined as city-owned and operated parking lots, facilities, and garages. No person shall park any vehicle in any parking space on any municipal off-street parking facility except as permitted by this article.

4.25.590 Payment required.

When parking on a municipal off-street parking facility is regulated and controlled by a parking revenue control system, it shall be unlawful for the operator of any vehicle parked on such municipal 243
Ordinance 2025-XXX May 20, 2025 Page 2 of 4
off-street parking facility to fail, neglect, or refuse to pay the parking charges established for such municipal off-street parking facility.

4.25.600 Parking within parking spaces.

Parking spaces on municipal off-street parking facilities shall be designated by lines or other appropriate markings. When parking spaces are so designated, it shall be unlawful for the operator of any vehicle to stop, stand, or park said vehicle other than in a regularly designated parking space, across any such line or marking, or in such position that said vehicle shall not be entirely within the area so designated as a parking space except upon the direction of a parking lot attendant. No vehicle shall be parked, stopped or shall stand either wholly or partially in any driveway of any municipal off-street parking facility or in any manner which shall obstruct or interfere with the free movement of vehicles in such driveway or in any manner so as to obstruct or otherwise prevent or interfere with ingress to or egress from any regularly designated parking space except on the direction of a parking lot attendant.

No vehicle shall be backed into any diagonal or angle parking space or placed into any diagonal or angle parking space so that the vehicle is facing the opposite direction of the general traffic pattern for the street or parking lot or is facing the travel portion of the street, alley, or lot providing access to the parking space.
[Note: 4.25.605 (Electric Vehicle Charging Stations) was added by Ordinance No. 2025-1194, which was adopted on April 22, 2025]

4.25.607 Parking prohibitions, restrictions and regulations.

A. No parking zones. No person shall park in an area of any municipal off-street parking facility where a prohibition on parking is so designated by ordinance or resolution of city council upon posting of signage indicating such prohibition.

B. Loading zones. No person shall park in a parking space for more than thirty (30) minutes within any municipal off-street parking facility designated as a loading zone by ordinance or resolution of the city council upon posting of signage indicating such time restriction.

C. Permit parking. No person without a permit shall park in a parking space within any municipal off-street parking facility designated for permit parking only by ordinance or resolution of the city council upon posting of signage indicating such restriction.

D. Overnight parking. No person shall park overnight in any municipal off-street parking facility where a prohibition on overnight parking is so designated by ordinance or resolution of city council upon posting of signage indicating such prohibition.

4.25.610 Weight and size limitations on vehicles.

No person shall stop, stand or park any vehicles exceeding a gross maximum weight limit of three tons or exceeding either 22 feet in length or eight feet in width in any parking garage owned or operated by the city.

4.25.620 Use of entrance and exit.

It shall be unlawful for any person to enter any municipal off-street parking facility over any area or driveway or the portion of any curb which is not marked with the word “Entrance” or otherwise indicated by arrows, signs, or words to be a driveway or place for entering of such facility. 244
Ordinance 2025-XXX May 20, 2025 Page 3 of 4
It shall be unlawful for any person to move any vehicle from any such facility into any public way or area except over an area marked with the word “Exit” or otherwise indicated by arrows, signs, or words to be a driveway or place for leaving of such parking lot, facility or garage.

4.25.630 Speed of vehicles.

It shall be unlawful for any person to move any vehicle on a municipal off-street parking facility at any speed exceeding 10 miles per hour.

4.25.640 Prohibited use.

No person shall ride or propel any bicycle, snowboard, skis, skateboard, roller skates, scooter, wagon or other similar nonmotorized vehicle in any municipal off-street parking facility. Persons riding or propelling baby carriages, strollers or other similar vehicles for transportation of young persons, wheelchairs or other similar vehicles for transportation of persons with disabilities, or shopping carts or other similar vehicles used to transport goods or equipment shall be exempt from this regulation while riding or propelling such vehicles to and from their motor vehicles within said facility.

4.25.650 Penalty.

Any person violating the provisions of this article shall be guilty of an infraction and upon conviction thereof shall be punished by a fine of not less than $50.00 or a greater amount set by resolution of the city council.

4.25.660 Citations.

Any officer of the police department or parking control officer may issue a citation to the owner or driver of any vehicle at a municipal off-street parking facility in violation of any of the provisions of this article in the same manner and in accordance with the same procedure and with the same effect as citations are issued for traffic or parking violations pursuant to the provisions of this article.

4.25.670 Removal of vehicles authorized.

When appropriate signs or markings are in place giving notice, any officer of the police department or parking control officer is hereby authorized to remove or cause to be removed any vehicle that is stopped, standing or parked on any municipal off-street parking facility in violation of this article. The procedure for removal or impounding of vehicles shall be as provided in Sections 22850 through 22856 of the California Vehicle Code, as may be amended.

SECTION 2. 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 3. 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 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 May 20, 2025 by the following vote:

Yes:

No:
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Ordinance 2025-XXX May 20, 2025 Page 4 of 4
Abstain:

Absent:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
First Reading: May 6, 2025
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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LEGAL PUBLICATION

CITY OF SOUTH LAKE TAHOE

SUMMARY OF PROPOSED ORDINANCE
NOTICE IS HEREBY GIVEN that on May 6, 2025,
the City of South Lake Tahoe City Council waived
first reading, read by title only and referred to second reading and adoption at the May 20, 2025, City Council
meeting, the following ordinance:
“An Ordinance Amending Article VII (Parking
Garage Facility Regulations) of Chapter 4.25
(Motor Vehicles and Traffic) of Title 4 of the South
Lake Tahoe City Code to Add Section 4.25.607 to
Provide Authority to Establish No Parking Zones,
Loading Zones, Permit Parking, and Restrictions
on Overnight Parking in Municipal Off-Street
Parking Facilities”
City Attorney’s Summary of Ordinance:
“Under the authority provided under California Vehicle
Code section 22519, this Ordinance would allow
the City Council to prohibit, restrict, or regulate the parking, stopping, or standing of vehicles on any offstreet parking facility which the City owns or operates, once signs giving notice of such restrictions have been erected . The City Council may designate areas for
such restrictions by adopting a resolution.”
A copy of the proposed ordinance in its entirety is
available for review at the City Clerk’s Office or by
contacting the City Clerk.

Susan Blankenship
Susan Blankenship, City Clerk
[email protected]
City of South Lake Tahoe
1901 Lisa Maloff Way, Ste 206
South Lake Tahoe, Ca 96150
(530) 542-6005
Published: May 9, 2025
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: May 20, 2025
Agenda Item #:9
Agenda Item: Amendment to Public Art Installation Contract Amendment with Terrie Bennett Executive Summary: On Tuesday, August 17, 2021, City Council approved $100,000 earmarked American Rescue Plan Act (ARPA) funds to go towards Art Program Funding. Funding would support strategic cultural and arts investments that benefit residents and visitors and enhance quality of life. The investments made through this funding would allow us to develop the desired state of arts and culture for our community. Public art, which is one example of an investment, would add value to the cultural, aesthetic, and economic vitality of our community. The City Council has expressed a desire to integrate art into public spaces and has pledged funding to do so. Incorporating public art into the community is an opportunity to create a more attractive, interesting, and beautiful city for residents and visitors to enjoy for years to come. The Arts, Culture, and Tourism (ACT) Commission in support of City Council directive, approved a budget of $100,000 for an artist to create an original sculpture or sculpture series to be permanently displayed on identified park property owned by the City of South Lake Tahoe. On May 31, 2024, the City advertised the Public Art Installation City of South Lake Tahoe on the City PlanetBids website. Ten bidders submitted proposals. ACT commissioners held a Special Meeting on September 9, 2024, to review proposals and submit scores. Terrie Bennet's proposal was selected by the Commission as the top choice to award the Public Art Installation RFP. On November 19, 2024, Council passed a Resolution authorizing and directing the Mayor to execute a contract with Terrie Bennett for a public art installation at Lakeview Commons at the location of Alternative A appropriating and transferring funds from General Fund ARPA funding Account #100-01956-50006 to Art-Public Art Accounts #217-04504- 36300 and 217-04504-44095 of $100,000. Anticipated project installation was May 2025. The artist is requesting an extension of the contract to September 1, 2025, to allow for additional time for fabrication and installation of the public art due to the length of time spent during the preparation for the permitting process.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Amendment No.1 to Agreement with Terrie Bennett for a public art installation at Lakeview Commons extending the completion date of the contract to September 1, 2025.

Responsible Staff Member: John Stark, Director of Parks & Recreation Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report-Public Art Installation Contract Amendment.docx 02-C-291-2024 Terrie Bennett Public Art.pdf
03-Amendment No. 1 to Agreement with Terrie Bennett.docx 248
Council Agenda Report May 20, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 20, 2025
Title: Arts, Culture & Tourism Public Art Installation Contract Amendment Location: Lakeview Commons
Responsible Staff Members: John Stark, Director of Parks & Recreation

Background: On Tuesday, August 17, 2021, City Council approved $100,000 earmarked American Rescue Plan Act (ARPA) funds to go towards Art Program Funding. Funding would support strategic cultural and arts investments that benefit residents and visitors and enhance quality of life. The investments made through this funding would allow us to develop the desired state of arts and culture for our community. Public art, which is one example of an investment, would add value to the cultural, aesthetic, and economic vitality of our community. The City Council of the City of South Lake Tahoe has expressed a desire to integrate art into public spaces and has pledged funding to do so. Incorporating public art into the community is an opportunity to create a more attractive, interesting, and beautiful city for residents and visitors to enjoy for years to come.

The Arts, Culture, and Tourism (ACT) Commission in support of City Council directive, has approved a budget of $100,000 for an artist to create an original sculpture or sculpture series to be permanently displayed on identified park property owned by the City of South Lake Tahoe.

On November 19, 2024, Council passed a Resolution authorizing and directing the Mayor to execute a contract with Terrie Bennett for a public art installation at Lakeview Commons at the location of Alternative A appropriating and transferring funds from General Fund ARPA funding Account #100-01956-50006 to Art-Public Art Accounts #217-04504-36300 and 217-04504-44095 of $100,000. Anticipated project installation was May 2025.

Issue and Discussion: The artist is requesting an extension of the contract to September 1, 2025, to allow for additional time for fabrication and installation of the public art due to the length of time spent during the permitting process.

Staff requests Council Pass a motion authorizing and directing the Mayor to execute an amendment to the contract with Terrie Bennett for a public art installation at Lakeview Commons extending the completion date of the contract to September 1, 2025.

Financial Implications: On Tuesday, August 17, 2021, City Council approved $100,000 earmarked American Rescue Plan Act (ARPA) funds to go towards Art Program Funding. ACT Commissioners selected Terrie Bennett’s proposal which would fully utilize these funds. On 249
Council Agenda Report May 20, 2025 Page 2 of 2
November 19, 2024, Council passed a Resolution authorizing and directing the Mayor to execute sa contract with Terrie Bennett for a public art installation at Lakeview Commons at the location of Alternative A appropriating and transferring funds from General Fund ARPA funding Account #100-01956-50006 to Art-Public Art Accounts #217-04504-36300 and 217-04504-44095 of $100,000. In accordance with the American Rescue Plan Act, all ARPA funds must be fully expended by the end of 2026.

Environmental Considerations: The art installation is categorically exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines 15301 (Existing Facilities) because it consists of minor alterations of existing public facilities involving negligible or no expansion of existing or former use.

Policy Implications: This action is consistent with the City’s 2025-2030 Strategic Plan Priority 7 (Recreation and Equitable Access for All).
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CITY OF SOUTH LAKE TAHOE

PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of the 19th day of November 2024 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and Terrie Bennett (“Consultant”).

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

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

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

AGREEMENT

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

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

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

2. Term/Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue for with installation and final inspection to occur no later than Memorial Day (May 26, 2025). 251
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No grading, excavation, or other land disturbance will be allowed between October 15th and May 1st.

3. Compensation. Compensation to be paid to Consultant shall be in accordance with the Schedule set forth in Exhibit B which is attached hereto and incorporated herein by reference. In no event shall Consultant’s compensation, including travel and out-of-pocket expenses, exceed $100,000 without additional written authorization from City. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to City at the time of payment. Payment is contingent upon compliance with all terms and conditions of this Agreement, as set forth herein. Consultant shall obtain prior written authorization from the City Project Manager for any costs in excess of budgeted amounts for each line item, task, or obligation under the Scope of Services.

4. Method of Payment. The payment schedule for this project will begin with an initial deposit and continue with monthly progress payments as follows:

1. Initial Deposit: A 20% deposit of the total project cost shall be paid upon contract signing. This deposit will cover design fees and material procurement necessary to initiate the project and ensure it remains on schedule.

2. Monthly Billings: Consultant shall submit monthly invoices to the City detailing the work performed during the preceding month. Each invoice shall include:
o A brief description of the services performed.
o The date the services were performed.
o The number of hours worked, by whom, and the applicable hourly rate.
o A detailed description of any reimbursable expenditures incurred.

Payment Terms: The City agrees to pay Consultant within 30 days after City staff approves the monthly invoice.

5. Prevailing Wages. Pursuant to the provisions of California Labor Code, Sections 1770 to 1780, inclusive thereof, for the portions of the Scope of Work that are within the definition of “public works” in Labor Code section 1720, the Consultant, and any subcontractor, of any tier, shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations.

In compliance with Senate Bill 854 and the California Labor Code, this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Consultant must submit their certified payroll records 252
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directly to the Division of Labor Standards Enforcement Compliance Monitoring Unit through the electronic certified payroll reporting (eCPR) system, as well as to the City.

Pursuant to the provisions of California Labor Code Section 1773.2, Consultant is hereby advised that copies of the prevailing rate of per diem wages and a general prevailing rate for holidays, Saturdays and Sundays and overtime work in the locality in which the Work is to be performed for each craft, classification, or type of worker required to execute the Agreement, are on file in the City's office. Consultant agrees that not less than said prevailing rates shall be paid to workers employed on this Agreement as required by Labor Code Section 1774. These rate determinations are found on the State of California Department of Industrial Relations' website at:
http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm. Furthermore, the project has received federal funding and is required to meet Federal wage determinations which can be found at: Davis-Bacon Wage Determinations | U.S. Department of Labor.

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

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

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

8. Ownership of Documents.

All plans, studies, documents and other writings, including working notes and internal documents, prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, shall become the property of City upon payment to Consultant 253
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for such work, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party.

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

9. Consultant’s Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant for services provided pursuant to this Agreement.
b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from records shall be available at Consultant’s address indicated for the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to City for inspection at City offices when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City may, by written request by any of the above-named officers, require that custody of the records be given to City and that the records and documents be maintained at City offices. Access to such records and documents 254
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shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

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

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

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

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

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

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

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

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

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

15. Indemnity. Consultant hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, officers, agents, employees and volunteers from and against any liability for any and all claims, demands, actions, losses, damages and injuries, direct or indirect (including any and all 256
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costs and expenses in connection therein), arising out of this Agreement or caused in any way by Consultant’s negligent performance of this Agreement or its breach of its obligations contained in this Agreement, except for any such claims arising out of the negligence or willful misconduct of the City.

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

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

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

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

16. Insurance Requirements.
a. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies.
i. Workers’ Compensation Coverage. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers’
Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation of all Workers’ Compensation policies must be received by City 257
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at least thirty (30) days prior to such change. Consultant shall provide thirty (30) days written notice of nonrenewal of any Workers’ Compensation policies. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work
performed by Consultant for City.
ii. Commercial General Liability Coverage. Consultant shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. Coverage must be made on
the standard Occurrence form. Claims-Made forms are not acceptable without prior written consent of City. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of Consultant. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general
aggregate limit shall be at least twice the required
occurrence limit.
iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and nonowned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant or by its employees, or subcontractors. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit per occurrence basis.
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b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a AM Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
i. City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional
insured’s under Consultant’s General Liability and Automobile Liability policies with respect to liability arising out of this Agreement and/or work performed by or on behalf of the
Consultant, including materials, parts or equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by City, including any self-insured retention City may have, shall be considered excess insurance only and shall not contribute with it.
iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each,
except with respect to the limits of liability of the insuring Consultant.
iv. The insurer waives all rights of subrogation against City except for Consultant’s Professional Liability and Employers’ Liability policies, its elected or appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. No policies of insurance carried by Consultant shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail.
c. Deductibles and Self-Insured Retentions. The Consultant shall be responsible for all deductibles in all of Consultant’s insurance policies. 259
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The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.
d. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Consultant shall not commence work under this contract until all insurance required under this section has been approved by City as to form, amount and carrier, nor shall Consultant allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.

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

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

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

Provide a copy to:

18. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in the Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation 260
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on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law.

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

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

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

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

23. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, disability, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan, or other related programs or guidelines currently in effect or hereinafter enacted. 261
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24. Drug-Free Workplace Certification. By signing this Agreement, Consultant hereby certifies under penalty of perjury under the laws of the State of California that the Consultant will comply with the requirements of the DrugFree Workplace Act of 1990 (Government Code Section 8350, et seq.) and will provide a drug-free work place by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355 (a). b. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b) to inform employees about all of the following:
i. The dangers of drug abuse in the workplace;
ii. The person’s or organization’s policy of maintaining a drug-free workplace;
iii. Any available counseling, rehabilitation and employee assistance program; and
iv. Penalties that may be imposed upon employees for drug abuse violations.
c. Provide, as required by Government Code Section 8355(c), that every employee who performs grant activities under this Agreement:
i. Will receive a copy of the Consultant’s drug-free policy statement; and
ii. Will agree to abide by the terms of the Consultant’s statement as a condition of employment on this Agreement.

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

25. Anti-Lobbying Certification. Consultant shall submit to City the Anti-Lobbying Certification contained in Exhibit C. Further, Consultant shall require that the language of the certification in Exhibit C be included in all contracts or subcontracts entered into in connection with this Agreement and that all Consultants and contractors shall certify and disclose accordingly. 262
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26. Debarment, Suspension, Ineligibility and Voluntary Exclusion. By signing this Agreement, Consultant assures that neither it nor its principals, is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.

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

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

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

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

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

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

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

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

CITY OF SOUTH LAKE TAHOE: CONSULTANT:

Terrie Bennett
By Cody Bass(Nov 25, 2024 13:27 PST) By Terrie Bennett(Nov 25, 2024 14:14 PST) Cody Bass, Mayor Terrie Bennett, Artist
Date Nov 25, 2024 Date Nov 25, 2024
APPROVED AS TO FORM:

By Heather Stroud (Nov 21, 2024 14:41 PST)
Heather Stroud, City Attorney
ATTEST:

Business License # _331855
Date Nov 21, 2024
By Susan Blankenship (Nov 21, 2024 14:30 PST)
Susan Blankenship, City Clerk
Attachments:

Exhibit A – Scope of Services
Date Nov 21, 2024
Exhibit B – Compensation Schedule
Exhibit C - Anti-Lobbying Certification
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EXHIBIT A
ARTIST ATTACHMENT: SCOPE OF SERVICES
Project Title: Footsteps of the Past: Suspended in Time Artist and Project Manager: Terrie Bennett
Assistant Sculptor/Project Manager: Nicki Bennett
Concept Overview
"Footsteps of the Past: Suspended in Time" is an interactive sculptural experience, consisting of four freestanding steel sculptures that honor the Lake Tahoe Basin’s cultural and environmental heritage. The sculptures will be placed along the waterfront at Lake View Commons, connected by life-size bronze footprints cast from the feet of Washoe tribe elders. The sculptures represent significant historical and natural themes, creating a narrative journey for visitors.

Display Interaction and Setup will vary based on chosen site:

Site #1: Along the Lake front, raised above the ground level and walking path by 24”. From this site the sculptures will be able to be viewed from all sides, with the transparency allowing for the natural landscape of the lake to be experienced through and with the sculptures. For this site the footsteps will be mounted within the rock wall connecting the bronze plaques, explaining each sculpture.

Site #2: Along the bike path, adjacent to the parking lot. From this site, the sculptures will be mounted taller, for ease of viewing and interaction. This display will include the footsteps connecting the sculptures and will allow for visitors to walk through and interact. This site will have to include a raised site for plagues, and include site specific landscaping and walking paths for accessibility.

Sculpture Specifications
• Dimensions: Rectangular box (36” long, 24” deep, 28” high) of stainless steel mesh.
• Pedestals (Variance depending on Chosen Site): For site #1 (next to the Lake) 24” tall, for optimum viewing from all sides, site is raised 24” from walking path. For Site #2 (on Bike Path) 40” tall, as his site will be interactive. Pedestals will be 3” x 3” stainless steel square tube. **All sculpture and pedestal dimensions are subject to final plan 265
C-291-2024
approval from structural engineer to ensure the safety and longevity of the sculpture.

Materials and Construction
• Outer Box: Heavy-duty stainless steel mesh (Grade 316). • Internal Sculptures: Lighter stainless steel mesh for detailed work. • Pedestals: 3” x 3” stainless steel square tube.
• Footprints and Plaques: Bronze with a natural patina. • Structural Engineering: Professional structural engineering for yearround durability.

Theme and Representation
The sculptures represent:
• Native Washoe Woman: Weaving a basket.
• Old Schooner Sailboat: Symbolizing Lake Tahoe’s boating history. • Vintage Skier: Depicting early skiing and snow recreation. • Bear: Representing the region’s wildlife.

Interactive and Accessibility Elements
• Bronze Footprints: Life-size footprints connecting each sculpture. • Plaques with Braille: Accessibility-enhanced signage at each sculpture.
• Transparency: Mesh design allows visibility for all visitors, including those in wheelchairs.

Cultural Significance
The project reflects the rich history of the Lake Tahoe Basin, highlighting the contributions of the Washoe tribe, early settlers, and native wildlife.

Management and Supervision
• Project Oversight: Terrie Bennett will manage all aspects. 266
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• Project Support: Nicki Bennett will support and assist Terrie Bennett, as needed throughout the process.
• Local Collaboration: Involvement of local artisans and contractors. • Regular Site Visits: Scheduled updates and quality checks.

Timeline
November 2024 – Design Finalization
• Design: Finalize detailed designs for all four sculptures, including specifications for size, materials, and internal elements. • 3D Renderings: Develop site-specific renderings for Lake View Commons.
• Washoe Tribe Collaboration: Meet with tribe representatives to arrange for the creation of plaster casts of footprints. • Hire Structural Engineer: Create engineering plan for sculpture fabrication, support and installation.

December 2024 – Studio Preparation & Material Procurement • Studio Setup: Acquire tools, workbenches, welding supplies, and other necessary equipment.
• Materials Procurement: Purchase all metal and other materials, depending on receipt of initial project payment (see PSA Exhibit B for details).
• Footprint Mold Creation: Meet with the Washoe tribe to create plaster molds of footprints for later casting in bronze.

January 2025 – Fabrication of Sculpture #1
• Fabrication: Begin construction of the first stainless steel box for Sculpture #1.
• Sculpting: Begin sculpting the internal elements of Sculpture #1 (estimated completion time: 4-6 weeks).
• Bronze Casting Preparation: Create silicone molds of the footprints in preparation for the lost-wax bronze casting process.
• Site Work Design: Hire a contractor to design the site work for installation.

February 2025 – Fabrication of Sculpture #2
• Fabrication: Begin construction of the second stainless steel box for Sculpture #2.
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• Sculpting: Start sculpting the internal elements of Sculpture #2 (estimated completion time: 4-6 weeks).
• Bronze Casting: Prepare wax models of the footprints and ship them to the foundry for casting (casting timeframe: 4-6 weeks).

March 2025 – Fabrication of Sculpture #3 and Installation Design • Fabrication: Begin construction of the third stainless steel box for Sculpture #3.
• Sculpting: Start sculpting the internal elements of Sculpture #3 (estimated completion time: 4-6 weeks).
• Installation Planning: Collaborate with a structural engineer to finalize installation details, including hardware, concrete work, and foundation requirements.
• Bronze Plaques: Design and proof the bronze plaques for each sculpture and submit the order.

April 2025 – Fabrication of Sculpture #4 and Bronze Work • Fabrication: Begin construction of the fourth and final stainless steel box for Sculpture #4 (completion by mid-May).
• Bronze Footprints: Receive bronze castings of the footprints in late March/early April.
• Finishing: Begin applying patina to the bronze footprints and welding hardware to prepare them for installation into the concrete pads.

May 2025 – Installation and Final Completion
Completion of Sculptures: Finish the sculpting and fabrication of all four sculptures, including their internal elements and pedestals. • Pre-Installation Work: Perform preliminary site work in early May to prepare the area for installation, including concrete foundation work. • Sculpture Delivery: Deliver all sculptures to Lake View Commons for installation.
• Final Installation: Complete the installation of all sculptures and bronze footprints. Ensure the installation is completed before Memorial Day 2025.

Final Inspection & Handover: Conduct a final inspection and handover of the completed project.
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EXHIBIT B

SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees (not to exceed) $100,000
TOTAL (not to exceed) $100,000

TIMELINE
Delivery Schedule and Implementation Timeline upon execution of the contract:
● Design Finalization: 1 month. Final design plans to be submitted to City for review and approval. ● Material Procurement: 1 month
● Fabrication: 3 months
● Installation Preparation: 1 month
● Installation: 2 weeks
● Final Inspection and Handover: 1 week
Projected Installation: May 2025
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EXHIBIT C

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

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

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

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

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

Consultant:

Terrie Bennett, Artist
By:

Terrie Bennett Terrie Bennett(Nov 25, 2024 14:14 PST)
270
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Extent Map
Art Dimensions: 36" Long x 24" Deep x 28" High
Pedestal Height: 24"
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271
ACORDfJJ CERTIFICATE OF LIABILITY INSURANCE
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TlllS IS TO CERTIFY THAT THE POLICIES OF INSURANCE IJISTIED BELOW HAVE BEIEN ISSUED TO THE IINSURED NAMED ABOVE FOR TIHE POLICY PERIOD INDICATED. NOiWl1HSTANDING ANY REQUIREMENT, iERM OR CONDITION OF ANY OOITTRACT OR 011HER DOCUMENT WITH RESPECT iO WHICH THIS CERTIFICATIE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY TiiE POLICIES DESCRIBED HERE IS SUBJECT TO All THE TERMS, EXCLUSIONS AND CONDITIONS Of SUCH POUOlffi LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS_ POI..ICY MUIIBcR
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THIS CERTIFICATE IS ISSUED AS A MATTEIR OF INiFORMATION ONLY AND CONFEIRS N:O RIGHTS UPON TiiE CERTIFICATIE HOLDER_ THIS CERTIFICATE DOES NOT AJFFIRJMATIVEILY OR NEGATIVELY AMEND, EXTEND O'R ALTIER THE CO�EAA.GE AFFORDED B,Y liHE POLICIES BELOW_ THIS CERTIFICATE OF INSUAAN:CE DOES NOT CONSTITIUITE A CONlRACT BETWEEN THE ISSUIING INSURER(SI, AUTIHOR!IZED REPRIESENTATME OR PRODUCER, AND THE CERTIFICATIE HOLD :ER_ IMPORTANTI: If the certificate holder os an ADDITIONAL INSUIRED, the policy(ie,s) must.ha�e ADDITIONAL INSURED provisions or be endorsed.

If SUB,ROGATION IS WAIVED, -subject to the 'IP1rms and conditions of the policy, certain po'licies.may requil"e an endorsement. A statement -on th1s ce-l!'tificat@ doe-"S not confe-r riaht.s to the ceriifica1te ho 'lde,r in Eie111 of s111ch endor-se-me-ntls't PRODUC6R
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272
C-291-2024 Terrie Bennett Public Art
Final Audit Report 2024-11-25
"C-291-2024 Terrie Bennett Public Art" History
Document created by Michelle Davis ([email protected]) 2024-11-21 - 10:12:54 PM GMT
Document emailed to Susan Blankenship ([email protected]) for signature 2024-11-21 - 10:13:03 PM GMT
Email viewed by Susan Blankenship ([email protected]) 2024-11-21 - 10:30:05 PM GMT
Document e-signed by Susan Blankenship ([email protected]) Signature Date: 2024-11-21 - 10:30:25 PM GMT - Time Source: server Document emailed to Heather Stroud ([email protected]) for signature 2024-11-21 - 10:30:26 PM GMT
Email viewed by Heather Stroud ([email protected])
2024-11-21 - 10:39:55 PM GMT
Document e-signed by Heather Stroud ([email protected]) Signature Date: 2024-11-21 - 10:41:37 PM GMT - Time Source: server Document emailed to Cody Bass ([email protected]) for signature 2024-11-21 - 10:41:39 PM GMT
Email viewed by Cody Bass ([email protected])
2024-11-25 - 9:26:35 PM GMT
Document signing delegated to Cody Bass ([email protected]) by Cody Bass ([email protected]) 2024-11-25 - 9:26:38 PM GMT
Document e-signed by Cody Bass ([email protected])
Signature Date: 2024-11-25 - 9:27:10 PM GMT - Time Source: server Created: 2024-11-21
By:

Status:

Transaction ID:

Michelle Davis ([email protected])
Signed
CBJCHBCAABAAQLm56vAPtmFskDXNBLfMQSIbmG8xgzJQ
273
Document emailed to Terrie Bennett ([email protected]) for signature 2024-11-25 - 9:27:12 PM GMT
Email viewed by Terrie Bennett ([email protected]) 2024-11-25 - 9:29:24 PM GMT
Document e-signed by Terrie Bennett ([email protected]) Signature Date: 2024-11-25 - 10:14:27 PM GMT - Time Source: server Agreement completed.
2024-11-25 - 10:14:27 PM GMT
274

CITY OF SOUTH LAKE TAHOE
AMENDMENT No. 1 TO

PROFESSIONAL SERVICES AGREEMENT
This Amendment to the Professional Services Agreement between the City of South Lake Tahoe, a municipal corporation ("City"), and __Terrie Bennett_____ ("Consultant") is entered into and effective as of the _20__ day of _May_____ 2025, extending and amending the Professional Services Agreement ("Agreement") dated ____November 19, 2024_______.(C-291-2024)

RECITALS
.

A. On _November 19, 2024_____, the City entered into the Agreement with Consultant to perform professional design services for all tasks outlined within the proposed scope of work for the Lakeview Commons Public Art Installation.

B. The Parties now desire to alter the Agreement's Term to allow the Consultant additional time to complete the Scope of Services.

AGREEMENT
Section 2 of the Agreement is hereby amended such that the Term ends on _September 1, 2025______.

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

CITY OF SOUTH LAKE TAHOE CONSULTANT
By: __________________________ By: __________________________ Tamara Wallace, Mayor

Business License # 331855

APPROVED AS TO FORM: ATTEST:
_____________________________ __________________________ Heather Stroud, City Attorney Susan Blankenship, City Clerk 275
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: May 20, 2025
Agenda Item #:10
Agenda Item: Judicial Foreclosure Actions for Community Facilities District No. 2001-1 (Heavenly Village) to Collect Delinquent Special Tax Installments Executive Summary: In 2001, the South Tahoe Redevelopment Agency established Community Facilities District No. 2001-1 to fund public facilities related to the Park Avenue (Heavenly Village) redevelopment project, and issued bonds to pay for the public facilities. The special tax assessments are levied annually by way of the El Dorado County Tax Roll for the payment of the bonds. A lien has been placed on each parcel in the Community Facilities District which secures the special tax and interest and penalties on delinquent installments. Annual special tax installments on four parcels have not been paid for multiple years. Pursuant to the Mello-Roos Act, the Redevelopment Successor Agency, acting as the legislative body of the Community Facilities District, is authorized to order that any delinquent installments be collected by judicial foreclosure proceedings. The proposed resolution would authorize such proceedings. The Redevelopment Successor Agency has contracted with law firm Stradling, Yocca, Carlson & Rauth LLP to prosecute these judicial foreclosure actions on behalf of the Community Facilities District.

Requested Action / Suggested Motions: Acting as the South Tahoe Redevelopment Successor Agency, Pass a Resolution ordering commencement of judicial foreclosure actions pursuant to the MelloRoos Community Facilities Act of 1982 to collect delinquent special tax installments and directing the removal of delinquent special tax installments from the County tax roll.

Responsible Staff Member: Heather Stroud, City Attorney Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Attachments:
01 - Staff Report - CFD 2001-1 - Foreclosure actions.docx 02 - Resolution - Foreclosure CFD 2001-1.docx
276
Council Agenda Report May 20, 2025 Page 1 of 2
City of South Lake Tahoe
Report to Redevelopment Successor
Agency
Meeting Date: May 20, 2025
Title: Judicial Foreclosure Actions for Community Facilities District No. 2001-1 (Heavenly Village) to Collect Delinquent Special Tax Installments Location: Citywide
Responsible Staff Members: Heather Stroud, City Attorney (530) 542-6046 Olga Tikhomirova, Director of Finance (530) 542-7431
Background: In 2001, the South Tahoe Redevelopment Agency (Agency) Board of Directors established Community Facilities District No 2001-1 (CFD) to fund public facilities related to the Park Avenue (Heavenly Village) redevelopment project. The Agency issued bonds to pay for the public improvements associated with the project. The special tax installments are levied annually by way of the El Dorado County Tax Roll for the payment of the bonds. A lien has been placed on each parcel within the CFD which secures the annual Special Tax and interest and penalties on delinquent installments.

The Agency has covenanted with and for the benefit of the owners of the bonds that it will commence judicial foreclosure proceedings against all parcels owned by a property owner where the aggregate delinquent installments on such parcels is greater than $1,000; and commence judicial foreclosure proceedings against all parcels with delinquent installments in which it receives Special Taxes in an amount which is less than 90% of the total Special Taxes levied for such Fiscal Year; and diligently pursue such foreclosure proceedings in accordance with the provisions of the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311, et seq.) (the “Mello-Roos Act”) and applicable law until the delinquent Special Taxes are paid.

Issue and Discussion: The annual special tax installments listed below have not been paid.

Pursuant to the Mello-Roos Act, the Agency, acting as the legislative body of the CFD, is authorized to order that any delinquent installments be collected by judicial foreclosure proceedings.

Parcel Owner's Name Tax Year Amount Delinquent
513-100-003-000 Perez Robert Armando 2019/20 $281.98
513-100-003-000 Perez Robert Armando 2020/21 $281.98
513-100-003-000 Perez Robert Armando 2023/24 $281.98
513-118-002-000 Perez Robert Armando 2019/20 $281.98
513-118-002-000 Perez Robert Armando 2020/21 $281.98
513-118-002-000 Perez Robert Armando 2023/24 $281.98
514-102-001-000 Perez Robert Armando 2022/23 $281.98
514-102-001-000 Perez Robert Armando 2023/24 $281.98
515-241-004-000 Davis Philip & Davis Tina 2019/20 $281.98 277
Council Agenda Report May 20, 2025 Page 2 of 2
Parcel Owner's Name Tax Year Amount Delinquent
515-241-004-000 Davis Philip & Davis Tina 2020/21 $281.98 515-241-004-000 Davis Philip & Davis Tina 2021/22 $281.98 515-241-004-000 Davis Philip & Davis Tina 2022/23 $281.98 515-241-004-000 Davis Philip & Davis Tina 2023/24 $281.98 Financial Implications: Any costs incurred by the Agency to satisfy the foreclosure covenant shall be a cost of the CFD and, therefore, shall be paid from funds available to the CFD, and not any other funds of the Agency.

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: None.
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STRSA Resolution 2025-XXX May 20, 2025 Page 1 of 4
4912-8198-4060v1/202097-0001
Resolution 2025-XXX
Adopted by the Board of Directors of the
South Tahoe Redevelopment Successor Agency
May 20, 2025
Acting as the Legislative Body of Community Facilities District No. 2001-1, Ordering the Commencement of Judicial Foreclosure Actions Pursuant to the Mello-Roos Community Facilities Act of 1982 to Collect Delinquent Special Tax Installments and Directing the Removal of Delinquent Special Tax Installments from the County Tax Roll

BACKGROUND
A. Pursuant to the Mello-Ross Community Facilities Act of 1982 (Government Code Section 53311, et seq.) (“Mello-Roos Act”), Community Facilities District No. 2001-1 (“CFD”) has incurred bonded indebtedness to finance certain public infrastructure improvements and duly and regularly levied a special tax against parcels of real property within the CFD by way of the El Dorado County Tax Roll for the payment of such bonded indebtedness (“Special Tax”).

B. The CFD has duly recorded notice of the levy of the Special Tax, thereby imposing a lien securing each installment thereof, and interest and penalties thereon, against those parcels set forth in said notice.

C. Those installment(s) of the Special Tax set forth in Exhibit “A” attached hereto have not been paid when due and remain delinquent.

D. The Board of Directors of the South Tahoe Redevelopment Successor Agency acting as the legislative body of the CFD (“Successor Agency”) is authorized by the Mello-Roos Act to order, not later than four (4) years after the due date of the last installment of principal due on the bonds secured by the levy of the Special Tax, that any delinquent installments thereof be collected by action(s) brought in the Superior Court to foreclose the liens securing those installments.

E. Pursuant to the Mello-Roos Act, the CFD has covenanted with the owners of the bonded indebtedness secured by the Special Tax to institute and prosecute judicial foreclosure actions to collect delinquent installments of the Special Tax (“Bond Covenant”).

F. The Successor Agency has determined that the public interest and necessity, including, but not limited to, the Bond Covenant, requires the prosecution of judicial foreclosure actions to collect delinquent installment(s) of the Special Tax set forth in Exhibit “A.” G. When a foreclosure action is ordered to be commenced pursuant to the Mello-Roos Act, the county tax collector (“Tax Collector”) shall be credited upon the current tax roll with the amount charged on account of the delinquent Special Tax to be sued on, including applicable penalties, interest, and costs, and to be relieved of further duty in regard thereto. 279
STRSA Resolution 2025-XXX May 20, 2025 Page 2 of 4
4912-8198-4060v1/202097-0001
H. The Mello-Roos Act requires a Notice of Intent to Remove Delinquent Special Tax Installments from the Tax Roll (“NOI”) to be recorded prior to the removal of the delinquent Special Tax installments from the county tax roll.

I. The CFD previously retained Willdan Financial Services (“Financial Consultant”) to administer the CFD.

J. The CFD previously retained Stradling, Yocca, Carlson & Rauth LLP (“Special Counsel”), to prosecute judicial foreclosure actions on behalf of the CFD.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the Board of Directors of the South Tahoe Redevelopment Successor Agency:

1. Declares that the foregoing recitals are true and correct and are incorporated herein by this reference.

2. Incorporates herein by this reference the delinquent Special Tax installment(s) listed in Exhibit “A,” and directs that these delinquent Special Tax installment(s) shall be collected by action(s) brought pursuant to the Mello-Roos Act in the applicable Superior Court of the State of California to foreclose the liens securing those delinquent Special Tax installments (“Foreclosure Action(s)”).

3. Authorizes and directs Special Counsel to initiate and litigate the Foreclosure Action(s) on behalf of the CFD.

4. Authorizes and directs Special Counsel to seek all costs and attorneys’ fees incurred in the collection of the delinquent Special Taxes in the Foreclosure Action(s) pursuant to the Mello-Roos Act, and authorizes Special Counsel to require payment of costs and attorneys’ fees as a condition of any pre-judgment or post-judgment redemption.

5. Authorizes and directs Special Counsel, in conjunction with Agency staff and the Financial Consultant, to take the following actions pursuant to Section 53356.2 of the Mello-Roos Act:
a. Record an NOI that corresponds to the delinquent parcel(s) listed in Exhibit “A” and lists the City Manager of the City of South Lake Tahoe, as Executive Director of the Successor Agency (“Executive Director”) as the official to be contacted regarding the delinquent installment amounts;
b. To present to the Tax Collector written proof of the recordation of the NOI together with a request for the Tax Collector to remove the delinquent Special Tax installment(s) from the tax rolls for each parcel listed in Exhibit “A”; and 280
STRSA Resolution 2025-XXX May 20, 2025 Page 3 of 4
4912-8198-4060v1/202097-0001
c. To credit the Tax Collector upon the current tax roll with the amount charged on account for the parcel(s) listed in Exhibit “A”, including applicable penalties, interest, and costs, and relieve the Tax Collector of further duty in regard thereto.

6. Hereby ratifies any prior actions set forth in Section 5 above, in the case that any such actions have already been completed.

7. In the event that future installments of the Special Tax levied against parcel(s) listed in Exhibit “A” became delinquent during the pendency of the Foreclosure Action(s) and/or prior to the particular delinquent parcel’s sale pursuant to judgment, directs Special Counsel to cause such future delinquent Special Tax installments to be removed from the county tax roll and collected, along with any applicable interest, penalties, costs, fees and other charges, through the corresponding pending Foreclosure Action(s) or modification of the judgment pursuant to Section 53356.1(c) of the Mello-Roos Act.

8. Hereby authorizes and directs the Chair, Secretary, Executive Director , and other officers of the Successor Agency to take any actions and execute and deliver any and all documents as necessary to implement the terms of this Resolution, including entering into agreements for services with Special Counsel and other consultants to pursue the collection of the delinquent Special Tax installments. In the event that the Executive Director is unavailable to sign any document to be executed pursuant to the terms of this Resolution, then their designee may sign such document.

9. Declares that this Resolution shall take effect immediately upon its adoption.

Adopted by the Board of Directors of the South Tahoe Redevelopment Successor Agency on May 20, 2025 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ 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.
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4912-8198-4060v1/202097-0001
Exhibit A
City of South Lake Tahoe
Community Facili? es District No. 2001-1
Parcels Exceeding Foreclosure Thresholds
Parcel Owner's Name District Tax Year Installments
513100003000 Perez Robert Armando CFD No. 2001-1 2019/20 1st & 2nd 513100003000 Perez Robert Armando CFD No. 2001-1 2020/21 1st & 2nd 513100003000 Perez Robert Armando CFD No. 2001-1 2023/24 1st & 2nd 513118002000 Perez Robert Armando CFD No. 2001-1 2019/20 1st & 2nd 513118002000 Perez Robert Armando CFD No. 2001-1 2020/21 1st & 2nd 513118002000 Perez Robert Armando CFD No. 2001-1 2023/24 1st & 2nd 514102001000 Perez Robert Armando CFD No. 2001-1 2022/23 1st & 2nd 514102001000 Perez Robert Armando CFD No. 2001-1 2023/24 1st & 2nd 515241004000 Davis Philip & Davis Tina CFD No. 2001-1 2019/20 1st & 2nd 515241004000 Davis Philip & Davis Tina CFD No. 2001-1 2020/21 1st & 2nd 515241004000 Davis Philip & Davis Tina CFD No. 2001-1 2021/22 1st & 2nd 515241004000 Davis Philip & Davis Tina CFD No. 2001-1 2022/23 1st & 2nd 515241004000 Davis Philip & Davis Tina CFD No. 2001-1 2023/24 1st & 2nd 282
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: May 20, 2025
Agenda Item #:11
Agenda Item: Amendments to Time-Share Ordinance Confirming that Fractional Ownerships are TimeShares and Making Other Updates (First Reading) Executive Summary: At the request of City Council, staff is proposing edits to update the City's timeshare ordinance to clarify and explicitly state that fractional ownership of residential properties is regulated by the City's time-share ordinance, and to make other updates for consistency with state law and for clarity. On March 20, 2025, the Planning Commission unanimously adopted Resolution No. 2025-004, recommending that City Council adopt this ordinance.

Requested Action / Suggested Motions: Hold a first reading (by title only) of an Ordinance Amending Chapter 6.60 of the South Lake Tahoe City Code (Time-Share), Confirming that Fractional Ownerships Are Time-Shares and Making Other Updates, and refer second reading and adoption to the June 3, 2025 meeting.

Responsible Staff Member: Heather Stroud, City Attorney Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Attachments:
01 - Staff Report - Time Share Ord Amendments (First Reading).docx 02 - Ordinance - Time Share Amendment.docx
03 - Ordinance Redline.pdf
04 - PC Reso 2025-004.pdf
05-PH Notice-Timeshare Ordinance.pdf
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City Council Agenda Report- May 20, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: May 20, 2025
Title: Amendments to Time-Share Ordinance Confirming That Fractional Ownerships Are Time-Shares and Making Other Updates
Location: Citywide
Responsible Staff Member: Heather L. Stroud, City Attorney (530) 542-6046 Background:

The City first adopted an ordinance regulating time-share uses in 1980 (“Time-Share Ordinance”).

First adopted on March 4, 1980, as City Council Ordinance No. 558, the Time-Share Ordinance has been amended several times since then, most recently on June 20, 2006 by adoption of City Council Ordinance No. 966. Since 1987, the Time-Share Ordinance has prohibited the conversion of existing residential property to time-share use, based on findings stated in South Lake Tahoe City Code section 6.60.010 of a “critical shortage of affordable housing,” and that “the conversion of residential property within the city to vacation time-sharing projects eliminates residential property otherwise available for rental in the city.”
In 2021, the City started to receive complaints about “fractional ownerships” of single-family residences being advertised and sold. The City sent a courtesy notice and notice cease and desist advertising and selling such fractional ownerships to the responsible entities, notifying them that fractional ownerships were included in the definition of “time-share” and therefore prohibited under the Time Share Ordinance.

A company called Pacaso was the primary entity advertising and selling fractional ownerships.

Pacaso established three single-family residential properties as fractional ownerships prior to the 2021 cease and desist letter: 3737 Terrace Drive, 3914 Saddle Road, and 783 Michael Drive. In September 2024, the City and Pacaso entered into settlement agreements regarding these properties, whereby Pacaso agreed not to “market, use, or sell any single family home in the City that is fractionally-owned, or intended to be fractionally owned, for as long as the City Time Share Regulations, as may be amended, remain in effect.” In exchange, the City agreed not to “undertake any enforcement action based on the City Time Share Regulations, as may be amended” against those three properties.

At the time the settlement agreements were approved, City Council requested that the City Attorney bring back an amendment to confirm and clarify that fractional ownerships are prohibited under the Time Share Ordinance.

On March 20, 2025, the Planning Commission considered the proposed amendments and unanimously passed Resolution No. 2025-004, recommending that the City Council adopt the 284
City Council Agenda Report- May 20, 2025 Page 2 of 2
ordinance amending the Time Share Ordinance to confirm and clarify that fractional ownerships are prohibited.

Issue and Discussion:

While fractional ownerships are no longer being marketed in South Lake Tahoe to the City’s knowledge, an update to the Time Share Ordinance is warranted to confirm that this type of use is prohibited. This is achieved by amending the definition of “time-share” in Subsection 6.60.020(O) to read:
“Time-share” means the exclusive right to use and occupy a unit on a periodic basis in any manner which under the laws of the state of California constitutes a timeshare plan or estate, irrespective of whether such rights are a result of a grant of ownership rights, possessory rights, membership rights, rights pursuant to contract, or ownership of a fractional interest or share in the unit. This definition includes all legal documents creating any such interest and the unit actually occupied under any such arrangement.

Additional updates to the Time Share Ordinance are proposed to remove references to outdated Tahoe Regional Planning Agency regulations and the South Tahoe Redevelopment Agency, and for consistency with the California Vacation Ownership and Time-Share Act of 2004, Business & Professions Code section 11210 et seq.

Financial Implications:

There are no financial implications associated with this action because it is confirming existing regulation.

Environmental Considerations:

This Ordinance is not a project requiring environmental review under the California Environmental Quality Act (“CEQA”) under CEQA Guidelines section 15378(a) because it simply confirms and updates the existing regulation and thereby it does not have the potential for resulting in either a direct or indirect physical change in the environment.

Policy Implications:

The proposed amendments are consistent with the policy findings in South Lake Tahoe City Code section 6.60.010.
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Ordinance 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
June 3, 2025
An Ordinance Amending Chapter 6.60 of the South Lake Tahoe City Code (TimeShare), Confirming That Fractional Ownerships Are Time-Shares and Making Other Updates

FINDINGS
A. The City first adopted an ordinance regulating time-share uses in 1980 (“Time-Share Ordinance”). First adopted on March 4, 1980, as City Council Ordinance No. 558, the TimeShare Ordinance has been amended several times since then, most recently on June 20, 2006 by adoption of City Council Ordinance No. 966.

B. Since 1987, the Time-Share Ordinance has prohibited the conversion of existing residential property to time-share use, based on findings stated in South Lake Tahoe City Code section

6.60.010 of a “critical shortage of affordable housing,” and that “the conversion of residential property within the city to vacation time-sharing projects eliminates residential property otherwise available for rental in the city.”
C. In 2021, the City started to receive complaints about “fractional ownerships” of single-family residences being advertised and sold. The City sent a courtesy notice and notice cease and desist advertising and selling such fractional ownerships to the responsible entities, notifying them that fractional ownerships were included in the definition of “time-share” and therefore prohibited under the Time Share Ordinance.

D. While fractional ownerships are no longer being marketed in South Lake Tahoe to the City’s knowledge, an update to the Time Share Ordinance is warranted to confirm that this type of use is prohibited. Additional updates to the Time Share Ordinance are also warranted to remove references to outdated Tahoe Regional Planning Agency regulations and the South Tahoe Redevelopment Agency, and for consistency with the California Vacation Ownership and Time-Share Act of 2004, Business & Professions Code section 11210 et seq.

E. The Planning Commission considered this proposed ordinance at a duly noticed public hearing on March 20, 2025, and pursuant to Government Code section 65853, recommended that the City Council adopt the ordinance by unanimously approving Resolution No. 2025-004. 286
Ordinance 2025-XXX May 20, 2025 Page 2 of 6
F. On May 9, 2025, a notice of this public hearing was published in the Tahoe Daily Tribune pursuant to Government Code sections 65090, 56091, and 65854, and at its meeting on May 20, 2025, the City Council held a public hearing to consider these amendments.

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

SECTION 1. Subsection 6.60.010(G) of the South Lake Tahoe City Code is hereby amended to read in its entirety as follows:

And whereas many owners of time-share units are renting their units to transients (as such term is defined in SLTCC 3.00.010) without accounting to the city for the tax imposed by SLTCC 3.50.050. Such rentals compete directly with the transient lodging facilities industry which is a very substantial factor in the economy of the city. These time-sharing projects should contribute to the city’s economy in a manner similar to transients renting motel or hotel units;
SECTION 2. Section 6.60.020 (Definitions) of the South Lake Tahoe City Code is hereby amended to read in its entirety as follows:

A. “City manager” means the duly appointed city manager or their designee.

B. “Commercial activity” means any and all activity which does, may or could result in the sale of a service commodity or product.

1. This definition shall include any communication, oral or written, with actual or prospective purchasers which is intended to obtain a commitment from the actual or prospective purchaser to participate in any promotion or sales activity intended to generate or encourage sale of the service, commodity or product offered.

2. This definition shall specifically include any offer or inducement, whether characterized as a “free” or “discount” offer, which is intended to obtain the participation of the actual or prospective purchaser in any such sales or promotional presentation.

3. This definition shall further specifically include the distribution or handing out of any written materials regarding any such offer, inducement or incentive to any actual or prospective purchaser.

4. The term “sale” as used in this chapter shall include solicitations for commercial transactions, as well as actual exchange of consideration pursuant to any such transaction; provided, however, that nothing in this definition shall be construed to prohibit or impede any right or activity which may be judicially determined to constitute protected activity under the Constitution of the United States or the state of California.

C. “Conversion” means the reuse of all or part of the physical structure of an existing tourist accommodation property when the use is changed to a time-share (hotel/motel or residential design) use. The reuse of the tourist accommodation units of use for a demolished structure is not a conversion.

D. “Developer” means, in the case of any given property, any person or entity which is in the business of creating or which is in the business of selling its own time-share intervals in any time-share program. This definition does not include a person acting solely as a sales agent for a previously approved time-share program.
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E. “Developer/project owner” means any person who offers to dispose of or actually disposes of, by any lawful means, interest in a time-share project. This term shall include any person with any active interest in a time-share project, including partners, officers, directors and/or holders of majority voting stock.

F. “Development, project or property” means all of the real property subject to a project instrument.

G. “Offering” means any offer to sell, solicitation, inducement or advertisement whether by person-to-person contact, through radio, television, newspaper, magazine, or by mail whereby a person is given an opportunity to acquire a time-share interval. Any offering of a time-share interval which is not located in the city shall not be an offering if such offer is in compliance with the laws of the jurisdiction in which the time-share interval is located. This chapter shall in no way be construed to exempt anyone from the laws of the state of California.

H. “Off-premises contact” means any commercial activity, as defined herein, which is conducted at a location other than the premises upon which the time-share units being offered for sale are located.

1. This definition shall exclude any commercial activity as it may be performed by a duly licensed California real estate agent or broker who conducts such sales without the use of nonlicensees for solicitation of prospective purchasers.

I. “Person” means any natural person, combination of natural persons, corporation, partnership, trust, joint venture or other legal and commercial entity.

J. “Project” means the real property or properties in which the time-share interests are created for sale by any single instrument or series of instruments.

K. “Project instrument” means one or more recordable documents applicable to the whole project by whatever name denominated, containing restrictions or covenants regulating the use, occupancy or disposition of an entire project, including any amendments to the documents, but excluding any law, ordinance or governmental regulation.

L. “Purchaser” means any person other than a developer/project owner or a licensed California lending institution to which an offer to purchase a time-share interest is made or which purchases such interest.

M. “Representative/solicitor” means any person who on behalf of himself or any developer/owner solicits persons at a location other than on the time-share property to attend a sales presentation or consider the purchase of a time-share interest.

1. This definition shall exclude any duly licensed California real estate agent or broker who conducts time-share sales without the use of nonlicensees for solicitation of prospective purchasers.

N. “Sales agent” means a person who sells or offers to sell time-share intervals in a time-share program to a purchaser.

O. “Time-share” means the exclusive right to use and occupy a unit on a periodic basis in any manner which under the laws of the state of California constitutes a time-share plan or estate, irrespective of whether such rights are a result of a grant of ownership rights, possessory rights, membership rights, rights pursuant to contract, or ownership of a fractional interest or 288
Ordinance 2025-XXX May 20, 2025 Page 4 of 6
share in the unit. This definition includes all legal documents creating any such interest and the unit actually occupied under any such arrangement.

P. “Time-share estate” means an ownership or leasehold estate in property devoted to a timeshare fee (tenants in common, time span ownership, interval ownership) or a time-share lease.

Q. “Time-share interval” means a time-share estate or a time-share use.

R. “Time-share instrument” means any document, by whatever name denominated, creating or regulating time-share programs, but excluding any law, ordinance or governmental regulation.

S. “Time-share program” means any arrangement for time-share intervals in a time-sharing project whereby the use, occupancy or possession of real property has been made subject to either a time-share estate or time-share use whereby such use, occupancy or possession circulates among purchasers of the time-share intervals according to a fixed or floating time schedule on a periodic basis for a specific period of time during any given year, but not necessarily for consecutive years.

T. “Time-share use” means any contractual right of exclusive occupancy which does not fall within the definition of a time-share estate, including, without limitation, a vacation license, prepaid hotel reservation, club membership, limited partnership or vacation bond.

U. “Unit” means each portion of the real property or real property improvement in a project which is divided into time-share intervals.

V. “Vacation time-sharing project” means any real property subject to a time-share program.

W. “Employee” means any representative/solicitor utilized or retained by a developer/project owner for off-premises contact purposes, whether or not the relationship of independent contractor exists between the representative/solicitor and developer/project owner; provided, however, that the responsibility of a developer/project owner as to the conduct of any representative/solicitor shall be solely for the purposes of this chapter and shall not be deemed or construed to make a developer/project owner responsible in any manner for conduct of a representative/solicitor except with regard to the regulatory purposes of this chapter.

SECTION 3. Section 6.60.040 (Use permits) of the South Lake Tahoe City Code is hereby amended to read in its entirety as follows:

A. Vacation time-sharing projects shall, except as provided below, be prohibited in any area plan, plan area statement, or community plan district within the city which does not allow timesharing.

B. Vacation time-sharing projects shall be permitted only if a discretionary time-share special use permit is issued by the city council; provided, however, that applications may be considered only for new construction of such facilities. The city council will be the decisionmaker for all time-share special use permits and such a special use permit is required for any time-sharing project, even when the use is listed as “allowable” under the applicable area plan, plan area statement, or community plan district. All projects shall first be reviewed at a public hearing before the city planning commission, which shall forward a recommendation to the city council for consideration.

Newly constructed time-share projects may be approved only when:
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Ordinance 2025-XXX May 20, 2025 Page 5 of 6

1. Such project is the subject of an owner participation agreement approved by the city council; and said owner participation agreement contains revenue sources, guarantees, and assurances, satisfactory to the city council in its sole discretion, which ensure that there can be no future legal challenge on the grounds of inapplicability of transient occupancy taxes on units in the time-share project, or otherwise.

2. Conversion of existing residential dwellings to time-share units, even if located in a commercially zoned area, is prohibited. Conversion of an existing visitor lodging use to time-share units is similarly prohibited. All new construction shall meet all applicable city standards for such construction.

Nonconforming setbacks, parking, density and height of the previously existing use may not be retained.

Adequate information to address the issue of market feasibility, a copy of the packet submitted to the department of real estate (DRE) and any other appropriate information pertaining to the property which may be reasonably required to assess use of the property as a time-share facility shall accompany the special use permit application.

SECTION 4. 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 5. The City Council finds that this Ordinance is not a project requiring environmental review under the California Environmental Quality Act (“CEQA”) under CEQA Guidelines section 15378(a) because it simply confirms and updates the existing regulation and thereby it does not have the potential for resulting in either a direct or indirect physical change in the environment.

SECTION 6. The City Clerk is directed to certify this Ordinance and cause it to be published in the manner required by law.

SECTION 7. This Ordinance shall become effective 30 days following its adoption.

Adopted by the City of South Lake Tahoe City Council on June 3, 2025 by the following vote:

Yes:

No:

Abstain:

Absent:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
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Ordinance 2025-XXX May 20, 2025 Page 6 of 6
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.
291
South Lake Tahoe City Code
Chapter 6.60 TIME-SHARE

The South Lake Tahoe City Code is current through Ordinance 1189, passed October 22, 2024.

Chapter 6.60

TIME-SHARE
Sections:

6.60.010 Statement of legislative intent.

6.60.020 Definitions.

6.60.030 Administration.

6.60.040 Use permits.

6.60.050 Disclosure.

6.60.060 Dispute resolution and enforcement.

6.60.070 Prohibition of off-premises contact time-share sales solicitation.

6.60.080 Penalties.

6.60.090 Private actions to enforce.

6.60.010 Statement of legislative intent.

A. Whereas there is a critical shortage of affordable housing in the city of South Lake Tahoe; B. And whereas the conversion of residential property within the city to vacation time-sharing projects eliminates residential property otherwise available for rental in the city; C. And whereas vacation time-sharing projects have the character of a commercial use due to the multiple occupancy of such projects by those participating in time-sharing projects; D. And whereas such projects are therefore appropriately confined to commercial zones; E. And whereas such commercial or quasi-commercial use is inappropriate in residential areas due to the increased traffic generation and multiple occupancies disturbing the peace and quiet of residential neighborhoods;
F. And whereas the lodging of transients is a substantial factor in the economy of the city; G. And whereas many owners of time-share units are renting their units to transients (as such term is defined in SLTCC 3.50.03000.010) without accounting to the city for the tax imposed by SLTCC 3.50.050. Such rentals compete directly with the transient lodging facilities industry which is a very substantial factor in the economy of the city. These time-sharing projects should contribute to the city’s economy in a manner similar to transients renting motel or hotel units; The city council of the city of South Lake Tahoe does hereby find and determine that this chapter is necessary to accomplish the objectives set forth in the above section and to protect the public health, safety and welfare of the citizens of the city of South Lake Tahoe pursuant to the laws of the state of California.

6.60.020 Definitions.

A. “City manager” means the duly appointed city manager or their his/her designee.

B. “Commercial activity” means any and all activity which does, may or could result in the sale of a service commodity or product.
292
South Lake Tahoe City Code
Chapter 6.60 TIME-SHARE

The South Lake Tahoe City Code is current through Ordinance 1189, passed October 22, 2024.

1. This definition shall include any communication, oral or written, with actual or prospective purchasers which is intended to obtain a commitment from the actual or prospective purchaser to participate in any promotion or sales activity intended to generate or encourage sale of the service, commodity or product offered.

2. This definition shall specifically include any offer or inducement, whether characterized as a “free” or “discount” offer, which is intended to obtain the participation of the actual or prospective purchaser in any such sales or promotional presentation.

3. This definition shall further specifically include the distribution or handing out of any written materials regarding any such offer, inducement or incentive to any actual or prospective purchaser.

4. The term “sale” as used in this chapter shall include solicitations for commercial transactions, as well as actual exchange of consideration pursuant to any such transaction; provided, however, that nothing in this definition shall be construed to prohibit or impede any right or activity which may be judicially determined to constitute protected activity under the Constitution of the United States or the state of California.

C. “Conversion” means the reuse of all or part of the physical structure of an existing tourist accommodation property when the use is changed to a time-share (hotel/motel or residential design) use. The reuse of the tourist accommodation units of use for a demolished structure is not a conversion.

D. “Developer” means, in the case of any given property, any person or entity which is in the business of creating or which is in the business of selling its own time-share intervals in any time-share program. This definition does not include a person acting solely as a sales agent for a previously approved time-share program.

E. “Developer/project owner” means any person who offers to dispose of or actually disposes of, by any lawful means, interest in a time-share project. This term shall include any person with any active interest in a time-share project, including partners, officers, directors and/or holders of majority voting stock.

F. “Development, project or property” means all of the real property subject to a project instrument.

G. “Offering” means any offer to sell, solicitation, inducement or advertisement whether by person-to-person contact, through radio, television, newspaper, magazine, or by mail whereby a person is given an opportunity to acquire a time-share interval. Any offering of a time-share interval which is not located in the city shall not be an offering if such offer is in compliance with the laws of the jurisdiction in which the time-share interval is located. This chapter shall in no way be construed to exempt anyone from the laws of the state of California.

H. “Off-premises contact” means any commercial activity, as defined herein, which is conducted at a location other than the premises upon which the time-share units being offered for sale are located.
293
South Lake Tahoe City Code
Chapter 6.60 TIME-SHARE

The South Lake Tahoe City Code is current through Ordinance 1189, passed October 22, 2024.

1. This definition shall exclude any commercial activity as it may be performed by a duly licensed California real estate agent or broker who conducts such sales without the use of nonlicensees for solicitation of prospective purchasers.

I. “Person” means any natural person, combination of natural persons, corporation, partnership, trust, joint venture or other legal and commercial entity.

J. “Project” means the real property or properties in which the time-share interests are created for sale by any single instrument or series of instruments.

K. “Project instrument” means one or more recordable documents applicable to the whole project by whatever name denominated, containing restrictions or covenants regulating the use, occupancy or disposition of an entire project, including any amendments to the documents, but excluding any law, ordinance or governmental regulation.

L. “Purchaser” means any person other than a developer/project owner or a licensed California lending institution to which an offer to purchase a time-share interest is made or which purchases such interest.

M. “Representative/solicitor” means any person who on behalf of himself or any developer/owner solicits persons at a location other than on the time-share property to attend a sales presentation or consider the purchase of a time-share interest.

1. This definition shall exclude any duly licensed California real estate agent or broker who conducts time-share sales without the use of nonlicensees for solicitation of prospective purchasers.

N. “Sales agent” means a person who sells or offers to sell time-share intervals in a time-share program to a purchaser.

O. “Time-share” means the exclusive right to use and occupy a unit on a periodic basis in any manner which under the laws of the state of California constitutes a time-share arrangement plan or estate, irrespective of whether such rights are a result of a grant of ownership rights, possessory rights, membership rights, rights pursuant to contract, or ownership of a fractional interest or share in the unit. This definition includes all legal documents creating any such interest and the unit actually occupied under any such arrangement.

P. “Time-share estate” means an ownership or leasehold estate in property devoted to a time-share fee (tenants in common, time span ownership, interval ownership) or a time-share lease.

Q. “Time-share (hotel/motel design)” is defined in Chapter 18 of the TRPA Code of Ordinances as: A right to exclusively use, occupy or possess a tourist accommodation unit of a hotel/motel design without kitchen units, according to a fixed or floating time schedule on a periodic basis occurring annually over a period of time in excess of three years.

RQ. “Time-share interval” means a time-share estate orf a time-share use.

SR. “Time-share instrument” means any document, by whatever name denominated, creating or regulating time-share programs, but excluding any law, ordinance or governmental regulation. 294
South Lake Tahoe City Code
Chapter 6.60 TIME-SHARE

The South Lake Tahoe City Code is current through Ordinance 1189, passed October 22, 2024.

TS. “Time-share program” means any arrangement for time-share intervals in a time-sharing project whereby the use, occupancy or possession of real property has been made subject to either a time-share estate or time-share use whereby such use, occupancy or possession circulates among purchasers of the time-share intervals according to a fixed or floating time schedule on a periodic basis for a specific period of time during any given year, but not necessarily for consecutive years.

U. “Time-share (residential design)” is defined in Chapter 18 of the TRPA Code of Ordinances as: A right to exclusively use, occupy or possess a tourist accommodation unit of a residential design with kitchen units, according to a fixed or floating time schedule on a periodic basis occurring annually over a period of time in excess of three years.

VT. “Time-share use” means any contractual right of exclusive occupancy which does not fall within the definition of a time-share estate, including, without limitation, a vacation license, prepaid hotel reservation, club membership, limited partnership or vacation bond.

WU. “Unit” means each portion of the real property or real property improvement in a project which is divided into time-share intervals.

XV. “Vacation time-sharing project” means any real property subject to a time-share program.

YW. “Employee” means any representative/solicitor utilized or retained by a developer/project owner for off-premises contact purposes, whether or not the relationship of independent contractor exists between the representative/solicitor and developer/project owner; provided, however, that the responsibility of a developer/project owner as to the conduct of any representative/solicitor shall be solely for the purposes of this chapter and shall not be deemed or construed to make a developer/project owner responsible in any manner for conduct of a representative/solicitor except with regard to the regulatory purposes of this chapter.

6.60.030 Administration.

A. Regulations. The city manager may as reasonably required make regulations to carry out the purpose and intent of the city council in the adoption of this chapter. Such regulations may include, but shall not necessarily be limited to, the process to be used for hearings, the fees to be charged for applications and renewals thereof, and the forms utilized for the making and processing of applications, and the disclosures required to be made in any advertising for sales of a time-share interest.

B. Exclusions and Exceptions. This chapter shall not apply to the following:

1. Transfer of any interest by order of a court of competent jurisdiction.

2. Sale or transfer of a time-share interest by an owner of an individual interest on a resale basis.

3. Transfer by right of inheritance or gratuitous transfer.

4. Transfer by foreclosure or deed in lieu of such action. 295
South Lake Tahoe City Code
Chapter 6.60 TIME-SHARE

The South Lake Tahoe City Code is current through Ordinance 1189, passed October 22, 2024.

6.60.040 Use permits.

A. Vacation time-sharing projects shall, except as provided below, be prohibited in any area plan, plan area statement, or community plan district within the city which does not include allow time-sharinge (residential or hotel/motel design) uses as permissible.

B. Vacation time-sharing projects shall be permitted only if a discretionary time-share special use permit is issued by the city council; provided, however, that applications may be considered only for new construction of such facilities. The city council will be the decision-maker for all time-share special use permits and such a special use permit is required for any time-sharing project, even when the use is listed as “allowable” under the applicable area plan, plan area statement, or community plan district. All projects shall first be reviewed at a public hearing before the city planning commission, which shall forward a recommendation to the city council for consideration.

Newly constructed time-share projects may be approved only when:

1. Such project is the subject of an owner participation agreement approved by the city council and, if applicable, the redevelopment agency; and said owner participation agreement contains revenue sources, guarantees, and assurances, satisfactory to the city council (and, if applicable, redevelopment agency) in their its sole discretion, which ensure that there can be no future legal challenge on the grounds of inapplicability of transient occupancy taxes on units in the time-share project, or otherwise. In addition, if the project is located in a redevelopment area, the owner participation agreement shall ensure that present and future bonded indebtedness in support of redevelopment projects within the designated area will be paid in full.

2. Conversion of existing residential dwellings to time-share useunits, even if located in a commercially zoned area, is prohibited. Conversion of an existing visitor lodging use to a time-share use units is similarly prohibited. All new construction shall meet all applicable city and, where applicable, redevelopment agency standards for such construction.

Nonconforming setbacks, parking, density and height of the previously existing use may not be retained.

Adequate information to address the issue of market feasibility, a copy of the packet submitted to the department of real estate (DRE) and any other appropriate information pertaining to the property which may be reasonably required to assess use of the property as a time-share facility shall accompany the special use permit application.

6.60.050 Disclosure.

A. Each and every representative/solicitor shall, immediately upon making any contact, verbal or written, with a time-share prospect, disclose that the express purpose of the contact and any gift or inducement offered is to attempt to sell time-share units at a time-share project and that unless the prospect is interested in considering the purchase of a time-share interest, they shall discontinue the contact.

B. Each place of business from which off-premises contact is conducted by a representative/solicitor shall have prominently posted a sign setting forth the provisions for the 296
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Chapter 6.60 TIME-SHARE

The South Lake Tahoe City Code is current through Ordinance 1189, passed October 22, 2024. lodging of complaints regarding the posting of complaints as specified in regulations adopted by the city manager.

6.60.060 Dispute resolution and enforcement.

A. Whenever any person files a written complaint concerning the activities or conduct of any representative/solicitor with the city of South Lake Tahoe, the chamber of commerce, the visitors authority, or any other community organization designated by the city, that complaint shall be heard before a hearing board consisting of a representative of a project owner/developer licensed under this chapter, a representative of either the chamber of commerce or the visitors authority, whichever may be able to serve, and a representative of the public at large, selected by the city, who shall not be employed by, or an officer of, the city.

B. If a majority of the hearing board finds that the complaint is meritorious, it may order such restitution to the complainant as may be reasonable required not to exceed a total value of $500.00.

C. Whenever the city council finds, at a public hearing called for that purpose, that the provisions for complaint resolution hereunder have been ineffective in enforcement of the purpose and intent of this chapter, it may assess each licensee hereunder its pro rata share of the reasonable costs of providing such city enforcement personnel as are necessary to ensure compliance.

D. Any licensee under this chapter who, after five days’ written notice, fails or refuses to pay its share of such costs shall be deemed to have relinquished any and all licenses granted hereunder by operation of law.

6.60.070 Prohibition of off-premises contact time-share sales solicitation.

All off-premises contact time-share solicitation is prohibited. This prohibition does not extend to solicitation of sales of a time-share interest which is: (a) conducted by a licensed California real estate broker or agent who conducts such solicitations; and (b) conducted within the premises of a legally established commercial business; or (c) conducted within the scope of a permit, license or other written agreement issued by the city for such off-premises solicitations.

6.60.080 Penalties.

Any violation of this chapter and any regulations adopted under the authority of this chapter shall be a misdemeanor, punishable to the extent established by law. Any violation of this chapter is also hereby declared to be a public nuisance which may be enjoined in any court of competent jurisdiction. The remedies set forth herein are not intended to be exclusive, but are in addition to and separate from any other remedies authorized by law.

6.60.090 Private actions to enforce.

Any person who has suffered, or alleges to have suffered, damage to person or property as a result of a violation of this chapter may bring an action for money damages and any other appropriate relief in a court of competent jurisdiction against the party alleged to have violated this chapter. The prevailing party in any such litigation shall be entitled to recover reasonable litigation costs, including attorney’s fees in an amount deemed reasonable by the court.

Nothing herein shall be deemed or construed to create any right of action against the city or any of its officers, employees, or agents. The sole purpose and intent of this section is to create a 297
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Chapter 6.60 TIME-SHARE

The South Lake Tahoe City Code is current through Ordinance 1189, passed October 22, 2024. right of action between private parties, entities and interests which are or may be impacted or affected by various aspects of time-sharing uses within the city. 298
Resolution 2025- 004 March 20, 2025 Page 1 of 2
Resolution 2025- 004
Adopted by the City of South Lake Tahoe
Planning Commission
March 20, 2025
Recommending that the City Council Adopt an Ordinance Amending Chapter 6.60 of the South Lake Tahoe City Code ( Time- Share), Confirming that Fractional Ownerships Are Time-Shares and Making Other Updates

BACKGROUND
A. The City first adopted an ordinance regulating time-share uses in 1980 (“TimeShare Ordinance”). First adopted on March 4, 1980, as City Council Ordinance No. 558, the Time-Share Ordinance has been amended several times since then, most recently on June 20, 2006 by adoption of City Council Ordinance No. 966.

B. Since 1987, the Time-Share Ordinance has prohibited the conversion of existing residential property to time-share use, based on findings stated in South Lake Tahoe City Code section 6.60.010 of a “critical shortage of affordable housing,” and that “the conversion of residential property within the city to vacation time-sharing projects eliminates residential property otherwise available for rental in the city.” C. In 2021, the City started to receive complaints about “fractional ownerships” of single-family residences being advertised and sold. The City sent a courtesy notice and notice cease and desist advertising and selling such fractional ownerships to the responsible entities, notifying them that fractional ownerships were included in the definition of “time-share” and therefore prohibited under the Time Share Ordinance.

D. While fractional ownerships are no longer being marketed in South Lake Tahoe to the City’s knowledge, an update to the Time Share Ordinance is warranted to confirm that this type of use is prohibited. Additional updates to the Time Share Ordinance are also warranted to remove references to outdated Tahoe Regional Planning Agency regulations and the South Tahoe Redevelopment Agency, and for consistency with the California Vacation Ownership and Time-Share Act of 2004, Business & Professions Code section 11210 et seq.

E. The Planning Commission considered this proposed ordinance at a duly noticed public hearing on March 20, 2025, and pursuant to Government Code section 65853, recommends that the City Council adopt the ordinance. 299
Resolution 2025- 004 March 20, 2025 Page 2 of 2

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

1. Recommends that the City Council adopt the Ordinance attached hereto as Exhibit “A.”
Adopted by the City of South Lake Tahoe Planning Commission on March 20, 2025 by the following vote:

Yes: Wieczorek, Feiger, Lucksinger, Imhoff, Williams
Date:_________
Natalia Wieczorek, Chair
Attest:

Michelle Davis, Assistant 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.

Michelle Davis (Mar 26, 2025 08:25 PDT)
Natalia Wieczorek (Mar 26, 2025 08:29 PDT)
Mar 26, 2025
300
Ordinance 2025- XXX March 20, 2025 Page 1 of 6
Ordinance 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
May 6, 2025
An Ordinance Amending Chapter 6.60 of the South Lake Tahoe City Code (TimeShare), Confirming That Fractional Ownerships Are Time-Shares and Making Other Updates

FINDINGS
A. The City first adopted an ordinance regulating time-share uses in 1980 (“ Time-Share Ordinance”). First adopted on March 4, 1980, as City Council Ordinance No. 558, the TimeShare Ordinance has been amended several times since then, most recently on June 20, 2006 by adoption of City Council Ordinance No. 966.

B. Since 1987, the Time-Share Ordinance has prohibited the conversion of existing residential property to time-share use, based on findings stated in South Lake Tahoe City Code section

6.60.010 of a “critical shortage of affordable housing,” and that “the conversion of residential property within the city to vacation time-sharing projects eliminates residential property otherwise available for rental in the city.”
C. In 2021, the City started to receive complaints about “ fractional ownerships” of single-family residences being advertised and sold. The City sent a courtesy notice and notice cease and desist advertising and selling such fractional ownerships to the responsible entities, notifying them that fractional ownerships were included in the definition of “time-share” and therefore prohibited under the Time Share Ordinance.

D. While fractional ownerships are no longer being marketed in South Lake Tahoe to the City’s knowledge, an update to the Time Share Ordinance is warranted to confirm that this type of use is prohibited. Additional updates to the Time Share Ordinance are also warranted to remove references to outdated Tahoe Regional Planning Agency regulations and the South Tahoe Redevelopment Agency, and for consistency with the California Vacation Ownership and Time-Share Act of 2004, Business & Professions Code section 11210 et seq.

E. The Planning Commission considered this proposed ordinance at a duly noticed public hearing on March 20, 2025, and pursuant to Government Code section 65853, recommended that the City Council adopt the ordinance.

Now, Therefore, the City Council of City of South Lake Tahoe does ordain as follows:
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Ordinance 2025- XXX March 20, 2025 Page 2 of 6
SECTION 1. Subsection 6.60.010(G) of the South Lake Tahoe City Code is hereby amended to read in its entirety as follows:

And whereas many owners of time-share units are renting their units to transients ( as such term is defined in SLTCC 3.00.010) without accounting to the city for the tax imposed by SLTCC 3.50.050. Such rentals compete directly with the transient lodging facilities industry which is a very substantial factor in the economy of the city. These time-sharing projects should contribute to the city’s economy in a manner similar to transients renting motel or hotel units;
SECTION 2. Section 6.60.020 (Definitions) of the South Lake Tahoe City Code is hereby amended to read in its entirety as follows:

A. “City manager” means the duly appointed city manager or their designee.

B. “Commercial activity” means any and all activity which does, may or could result in the sale of a service commodity or product.

1. This definition shall include any communication, oral or written, with actual or prospective purchasers which is intended to obtain a commitment from the actual or prospective purchaser to participate in any promotion or sales activity intended to generate or encourage sale of the service, commodity or product offered.

2. This definition shall specifically include any offer or inducement, whether characterized as a “free” or “discount” offer, which is intended to obtain the participation of the actual or prospective purchaser in any such sales or promotional presentation.

3. This definition shall further specifically include the distribution or handing out of any written materials regarding any such offer, inducement or incentive to any actual or prospective purchaser.

4. The term “ sale” as used in this chapter shall include solicitations for commercial transactions, as well as actual exchange of consideration pursuant to any such transaction; provided, however, that nothing in this definition shall be construed to prohibit or impede any right or activity which may be judicially determined to constitute protected activity under the Constitution of the United States or the state of California.

C. “Conversion” means the reuse of all or part of the physical structure of an existing tourist accommodation property when the use is changed to a time-share ( hotel/motel or residential design) use. The reuse of the tourist accommodation units of use for a demolished structure is not a conversion.

D. “Developer” means, in the case of any given property, any person or entity which is in the business of creating or which is in the business of selling its own time-share intervals in any time-share program. This definition does not include a person acting solely as a sales agent for a previously approved time-share program.

E. “Developer/ project owner” means any person who offers to dispose of or actually disposes of, by any lawful means, interest in a time-share project. This term shall include any person with any active interest in a time-share project, including partners, officers, directors and/or holders of majority voting stock.

F. “Development, project or property” means all of the real property subject to a project instrument.
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G. “Offering” means any offer to sell, solicitation, inducement or advertisement whether by person-to-person contact, through radio, television, newspaper, magazine, or by mail whereby a person is given an opportunity to acquire a time-share interval. Any offering of a time-share interval which is not located in the city shall not be an offering if such offer is in compliance with the laws of the jurisdiction in which the time-share interval is located. This chapter shall in no way be construed to exempt anyone from the laws of the state of California.

H. “Off-premises contact” means any commercial activity, as defined herein, which is conducted at a location other than the premises upon which the time-share units being offered for sale are located.

1. This definition shall exclude any commercial activity as it may be performed by a duly licensed California real estate agent or broker who conducts such sales without the use of nonlicensees for solicitation of prospective purchasers.

I. “Person” means any natural person, combination of natural persons, corporation, partnership, trust, joint venture or other legal and commercial entity.

J. “Project” means the real property or properties in which the time-share interests are created for sale by any single instrument or series of instruments.

K. “Project instrument” means one or more recordable documents applicable to the whole project by whatever name denominated, containing restrictions or covenants regulating the use, occupancy or disposition of an entire project, including any amendments to the documents, but excluding any law, ordinance or governmental regulation.

L. “Purchaser” means any person other than a developer/ project owner or a licensed California lending institution to which an offer to purchase a time-share interest is made or which purchases such interest.

M. “Representative/ solicitor” means any person who on behalf of himself or any developer/ owner solicits persons at a location other than on the time-share property to attend a sales presentation or consider the purchase of a time-share interest.

1. This definition shall exclude any duly licensed California real estate agent or broker who conducts time-share sales without the use of nonlicensees for solicitation of prospective purchasers.

N. “Sales agent” means a person who sells or offers to sell time-share intervals in a time-share program to a purchaser.

O. “Time- share” means the exclusive right to use and occupy a unit on a periodic basis in any manner which under the laws of the state of California constitutes a time-share plan or estate, irrespective of whether such rights are a result of a grant of ownership rights, possessory rights, membership rights, rights pursuant to contract, or ownership of a fractional interest or share in the unit. This definition includes all legal documents creating any such interest and the unit actually occupied under any such arrangement.

P. “Time-share estate” means an ownership or leasehold estate in property devoted to a timeshare fee (tenants in common, time span ownership, interval ownership) or a time-share lease.

Q. “Time- share interval” means a time-share estate or a time-share use. 303
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R. “Time- share instrument” means any document, by whatever name denominated, creating or regulating time-share programs, but excluding any law, ordinance or governmental regulation.

S. “Time-share program” means any arrangement for time-share intervals in a time-sharing project whereby the use, occupancy or possession of real property has been made subject to either a time-share estate or time-share use whereby such use, occupancy or possession circulates among purchasers of the time-share intervals according to a fixed or floating time schedule on a periodic basis for a specific period of time during any given year, but not necessarily for consecutive years.

T. “Time-share use” means any contractual right of exclusive occupancy which does not fall within the definition of a time-share estate, including, without limitation, a vacation license, prepaid hotel reservation, club membership, limited partnership or vacation bond.

U. “Unit” means each portion of the real property or real property improvement in a project which is divided into time-share intervals.

V. “Vacation time-sharing project” means any real property subject to a time-share program.

W. “Employee” means any representative/ solicitor utilized or retained by a developer/ project owner for off-premises contact purposes, whether or not the relationship of independent contractor exists between the representative/ solicitor and developer/ project owner; provided, however, that the responsibility of a developer/ project owner as to the conduct of any representative/ solicitor shall be solely for the purposes of this chapter and shall not be deemed or construed to make a developer/ project owner responsible in any manner for conduct of a representative/ solicitor except with regard to the regulatory purposes of this chapter.

SECTION 3. Section 6.60.040 (Use permits) of the South Lake Tahoe City Code is hereby amended to read in its entirety as follows:

A. Vacation time-sharing projects shall, except as provided below, be prohibited in any area plan, plan area statement, or community plan district within the city which does not allow timesharing.

B. Vacation time-sharing projects shall be permitted only if a discretionary time-share special use permit is issued by the city council; provided, however, that applications may be considered only for new construction of such facilities. The city council will be the decisionmaker for all time-share special use permits and such a special use permit is required for any time-sharing project, even when the use is listed as “allowable” under the applicable area plan, plan area statement, or community plan district. All projects shall first be reviewed at a public hearing before the city planning commission, which shall forward a recommendation to the city council for consideration.

Newly constructed time-share projects may be approved only when:

1. Such project is the subject of an owner participation agreement approved by the city council; and said owner participation agreement contains revenue sources, guarantees, and assurances, satisfactory to the city council in its sole discretion, which ensure that there can be no future legal challenge on the grounds of inapplicability of transient occupancy taxes on units in the time-share project, or otherwise.

2. Conversion of existing residential dwellings to time-share units, even if located in a commercially zoned area, is prohibited. Conversion of an existing visitor lodging use to 304
Ordinance 2025- XXX March 20, 2025 Page 5 of 6
time-share units is similarly prohibited. All new construction shall meet all applicable city standards for such construction.

Nonconforming setbacks, parking, density and height of the previously existing use may not be retained.

Adequate information to address the issue of market feasibility, a copy of the packet submitted to the department of real estate ( DRE) and any other appropriate information pertaining to the property which may be reasonably required to assess use of the property as a time-share facility shall accompany the special use permit application.

SECTION 4. 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 5. The City Council finds that this Ordinance is not a project requiring environmental review under the California Environmental Quality Act (“CEQA”) under CEQA Guidelines section 15378( a) because it simply confirms and updates the existing regulation and thereby it does not have the potential for resulting in either a direct or indirect physical change in the environment.

SECTION 6. The City Clerk is directed to certify this Ordinance and cause it to be published in the manner required by law.

SECTION 7. This Ordinance shall become effective 30 days following its adoption.

Adopted by the City of South Lake Tahoe City Council on May 6, 2025 by the following vote:

Yes:

No:

Abstain:

Absent:

Date:_________
Tamara Wallace, Mayor
Attest:

Susan Blankenship, City Clerk
First Reading:

Published:

Second Reading:

Effective:
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The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
306
Resolution 2025-004_Amendments to TimeShare Ordinance
Final Audit Report 2025- 03-26
Created: 2025- 03-25
By: Yvette Miranda ( ymiranda@cityofslt. us)
Status: Signed
Transaction ID: CBJCHBCAABAAXSMcFyK1YjceayYGl1Gaogf7Eb4hjGb0 Resolution 2025-004_Amendments to Time-Share Ordinance" History
Document created by Yvette Miranda ([email protected]) 2025- 03- 25 - 7:30:49 PM GMT
Document emailed to Michelle Davis ([email protected]) for signature 2025- 03- 25 - 7:31:25 PM GMT
Email viewed by Michelle Davis ( medavis@cityofslt. us) 2025- 03- 26 - 3:24:58 PM GMT
Document e-signed by Michelle Davis ([email protected]) Signature Date: 2025- 03-26 - 3:25:22 PM GMT - Time Source: server Document emailed to [email protected] for signature 2025- 03- 26 - 3:25:24 PM GMT
Email viewed by [email protected]
2025- 03- 26 - 3:28:44 PM GMT
Signer [email protected] entered name at signing as Natalia Wieczorek 2025- 03- 26 - 3:29:05 PM GMT
Document e-signed by Natalia Wieczorek ([email protected]) Signature Date: 2025- 03-26 - 3:29:07 PM GMT - Time Source: server Agreement completed.
2025- 03- 26 - 3:29:07 PM GMT
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First Reading of Time-share Ordinance PH - Page 1 of 2
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309
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: May 20, 2025
Agenda Item #:12
Agenda Item: City Development Rights Annual Report
Executive Summary: Pursuant to City Council Resolution 2023-051, the Development Services Department shall have an appraisal prepared annually, analyzing the sale of development rights and recommending a fair-market value for such rights. The staff report provides an update on the appraised values and the corresponding suggested price per City policy.

Requested Action / Suggested Motions: Pass a Resolution accepting the development rights appraisal prepared by Johnson Valuation Group Limited and establishing a price point for the calendar year 2025 at one-third of the recommended fair market value outlined in the appraisal.

Responsible Staff Member: Katherine Moore, Assistant Planner Reviewed and Approved By: Zach Thomas, Director of Development Services Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01-Staff_Report-Development_Rights.docx
02-Development_Rights_Inventory.docx
03-Res 2023-051 - TRPA Development Commodities.pdf
04-2025 Revised Appraisal.pdf
05-Resolution_-_Adopting_Development_Rights_Appraisal.docx 310
Council Agenda Report May 20, 2025 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: May 20, 2025
Title: City Development Rights Annual Report
Location: Citywide
Responsible Staff Member: Katherine Moore, Assistant Planner Background: The City maintains an inventory of potential residential units of use, single and multi-family residential units of use, tourist accommodation units, commercial floor area, land coverage and Stream Environment Zone (SEZ) restoration credits, which have been accumulated from various sources (e.g., Environmental Improvement Projects, implementing of Community Plans and Area Plans, City purchase of land with attached development right). See Attachment 02 for an inventory of development rights owned by the City.

In order to establish a clear City policy for the disposition of these assets, the City Council on September 3, 2019, adopted Resolution 2019-067, which provided for a consistent and equitable disposition process, promoted the achievement of the City's affordable housing and community development goals, and provided certainty for the development community. The adopted resolution 1) establishes an annual determination for the fair market value of the development rights and specifies that the City Council will establish a price point for each category by applying a factor of one-third to be the recommended rate, 2) provides for the earmarking of sales revenue in the City's new Workforce Housing Fund (to be used for targeted affordable housing initiatives), 3) provides for the sale of development rights for deed-restricted housing projects at no cost, 4) provides for the sale of development rights for multi-family residential projects and mixed-use projects within an established Town Center at no cost, 5) provides for the sale of development rights for commercial or industrial projects that redevelop distressed properties at no cost, and 6) delegates authority to complete transactions to the City Manager.

On June 6, 2023, the City Council adopted Resolution 2023-051 (see Attachment 03), amending Resolution 2019-067 to set aside up to 70 banked tourist accommodation units to be converted to residential units of use and provided at no cost to construct new accessory dwelling units or multifamily rental units. The resolution requires deed restrictions to be placed on the properties prohibiting their use as a vacation home rental. For multi-family projects, language was also adopted, restricting the conversion of commercial floor area to other development rights.

Issue and Discussion: Pursuant to Resolution 2023-051 the City contracted with Mr. Ben Johnson of Johnson Valuation Group Limited to revise his 2024 appraisal and estimate the market value of the assets owned by the City. Mr. Johnson was tasked with providing a general overview of the market conditions in the Lake Tahoe Basin, providing a detailed analysis of the market for each development right, and recommending a per unit market value for each development right.

Mr. Johnson's scope of work included interviewing experienced land use planners well versed in TRPA's growth management system and project permitting, real estate agents, developers, and the staff of the California Tahoe Conservancy (CTC) & Nevada State Lands. Historically, these 311
Council Agenda Report May 20, 2025 Page 2 of 3
two state agencies have been the primary source for development rights in the Tahoe Basin. Mr.

Johnson also did extensive research on the existing market conditions, analyzed the sale of development rights, and completed a comparable sales analysis of each development right.

Appraisal and findings on the current state of the market are included in Attachment 04, which analyzes the change in market conditions for development rights from January 1, 2024, to December 31, 2024. After extensive research and careful consideration of all data available, site inspections, recent sales of development rights, and comparative analysis of comparable properties, Mr. Johnson recommends changes to the fair market value for Commercial Floor Area, Potential Residential Units of Use, Residential Units of Use, and Tourist Accommodation Units of Use. The revised appraisal report also includes a new category for Stream Environment Zone (SEZ) Restoration Credits.

Commercial Floor Area
The appraisal noted that Barton Healthcare has been the largest seller of CFA in the past and had two CFA sales in 2024 for $25 per square foot. Barton Healthcare offers the most competitive price to set the market, thus Mr. Johnson recommends increasing the estimated value of CFA from $22.50 to $25 per square foot.

Potential Residential Units of Use (PRUU)
The appraisal noted that there had been one closed sale of a PRUU at $14,500 and one asking price of a PRUU at $25,000. Thus, Mr. Johnson recommends increasing the estimated value of a PRUU from $5,000 to $15,000.

Residential Units of Use (RUU)
The appraisal noted that there had been four RUU sales in 2024. A land planner in Incline Village states that clients are actively looking for RUUs at the present time. However, a lack of sales data indicates that clients may be purchasing CFA and converting them to RUUs. Based on the information considered in the appraisal, it is estimated that the market value of an RUU is presently in the range of $30,000 to $35,000 each, which results in a correlated estimated value of $32,500. Thus, Mr. Johnson recommends increasing the estimated value of an RUU from $28,750 to $32,500.

Tourist Accommodation Units (TAU)
The appraisal noted that there had been one TAU sale in 2024 at $30,000. With consideration given to the increased price for an RUU over the last year, the estimated value of a TAU is $25,000 to $30,000 each, which results in a correlated value of $27,500. Thus, Mr. Johnson recommends increasing the estimated value of a TAU from $25,000 to $27,500.

Stream Environment Zone (SEZ) Restoration Credits
In 1997, The City of South Lake Tahoe received approval from TRPA for Phase 2 of the Ski Run Boulevard Stream Environment Zone Restoration (SEZ) Project. The project included the removal of existing structures and coverage in a disturbed SEZ, as well as restoring the SEZ to its natural state. As a result of the restoration, the City was credited with 42,260 square feet of SEZ restoration credits. The restoration credit has been recognized by TRPA as banked on APN 027- 312
Council Agenda Report May 20, 2025 Page 3 of 3
073-029 and is available for transfer. Restoration credits can be used to mitigate impacts of development in stream environment zones (e.g, shoreline structures). The California Tahoe Conservancy (CTC) is the primary agency that sells SEZ restoration credits. The appraisal noted that the CTC had seven SEZ restoration credit sales in 2024 for $30 per square foot. The CTC offers the most competitive price to set the market, thus Mr. Johnson recommends establishing the market price for SEZ restoration credits to $30 per square foot.

The recommended market values for all city-owned development rights is listed in the table below.

Development Right Market Value Per Unit Based
on Typical Retail Quantity
Price Point Based on
City Council policy
Land Coverage 1B $30/Sq. Ft. $10/Sq. Ft.

Land Coverage 4-7 (Potential)
South Stateline HRA
Upper Truckee HRA
$7.50/Sq. Ft.
$7.50/Sq. Ft.
$2.50/Sq. Ft.
$2.50/Sq. Ft.

Land Coverage 4-7 (Hard) $25/Sq. Ft. $8.33/Sq. Ft.

SEZ Restoration Credit $30/Sq. Ft. $10/Sq. Ft.

Commercial Floor Area $25/Sq. Ft. $8.33/Sq. Ft.

Potential Residential Units of
Use
$15,000/Unit $5,000/Unit
Residential Units of Use $32,500/Unit $10,833.33/Unit
Tourist Accommodation Units
(City Owned)
$27,500/Unit $9,166.67/Unit
Environmental Considerations: Implementing a policy for the sale of development rights and land coverage is not approval of a project under the California Environmental Quality Act (CEQA) Guidelines Sections 15352 and 15378. Any proposed project that uses development rights and/or land coverage purchased from the City would be required to go through a project-level environmental analysis pursuant to the CEQA Guidelines.

Financial Implications: Revenue generated from the sale of development rights and/or land coverage is used to support City Council Housing priorities. The revenue generated from direct sales of the development rights/land coverage is earmarked to support the City's Workforce Housing Fund (to be used for targeted housing initiatives). Satisfaction with all conditions of an approved sale, including project completion, is required before the funds are available for use.

Policy Implication: The City Council policies for distribution of development commodities is consistent with the following General Plan Land Use Element policy. Note that the target number of residential units has been updated in the recently adopted Housing Element (Resolution 2022- 086).

Policy LU
1.10: Future Residential Development Rights (RDR) Commodities. The City shall pursue the maximum amount of available residential unit allocations from the Tahoe Regional Planning Agency in order to use them as an incentive for revitalization, including workforce housing, up to an additional 940 market rate units and 222 affordable units. (Note: please see the Housing Element for additional policies related to market rate and affordable housing, incentives, and locations).
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CITY VERIFIED & BANKED DEVELOPMENT RIGHTS

STATELINE HRA
Low Capability Hard Coverage 68,143 SF
Low Capability Hard Coverage (ROW) 4,170 SF
High Capability Hard Coverage 68,460 SF
High Capability Hard Coverage (ROW) 40,784 SF
Soft Coverage 7,706 SF
Soft Coverage (ROW) 4,134 SF

UPPER TRUCKEE HRA
Low Capability Hard Coverage 92,956 SF
Low Capability Hard Coverage (ROW) 1,927 SF
High Capability Hard Coverage 24,849 SF
High Capability Hard Coverage (ROW) 37,367 SF
Soft Coverage -
Soft Coverage (ROW) 2,625 SF

OTHER DEVELOPMENT RIGHTS
Airport 1b Hard Coverage 49,153 SF
SEZ Restoration Credit 42,260 SF
ERUU 8.5
PRUU 12
TAU City Owned 49
CFA Banked 20,690 SF
Sewer Units 67
Potential Coverage (LC 5) 150,000

COMMERCIAL FLOOR AREA POOLS
South Y Industrial Community Plan 0 SF
Bijou/Al Tahoe Community Plan 6,150 SF
Tahoe Valley Area Plan 0 SF
Tourist Core Area Plan 0 SF
EIP 1 Pool 0 SF
EIP 2 Pool 4,780 SF
Community Plan Recharge 1,749 SF
Areas Outside of Community Plans 0 SF
Pre-Community Plan Adoption 0 SF
Special Projects CFA Assignments 0 SF
1740 D Street 11,274 SF

RESIDENTIAL ALLOCATIONS
Single Family Pool 53
Multi-Family Pool 24
Town Center Pool 55
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Resolution 2023-051
Adopted by the City of South Lake Tahoe
City Council
June 6, 2023
Adopting Policy Regarding Disposition of Tahoe Regional Planning Agency Development Commodities Owned by the City of South Lake Tahoe (Replaces Resolution 2022-051)

BACKGROUND
A. The Tahoe Regional Planning Authority ( TRPA) is the land use authority and has established a development rights system to manage future development and a system to regulate the amount of land coverage in the Tahoe basin.

B. The TRPA development rights are land-use units that must be acquired before a property can be developed. Development rights include potential residential units of use ( PRUs), single and multi-family residential units of use ( RUUs), tourist accommodation units (TAUs), and commercial floor area (CFA).

C. Permanent land coverage is also regulated by the TRPA to protect the Lake Tahoe watershed. Parcels are limited to a specified amount of land coverage and, in some cases, may be transferred to maximize the allowable amount on a given parcel.

D. The City of South Lake Tahoe is subject to applying the development rights and land coverage systems to our review and approval of land use entitlement applications that are subject to the TRPA/ City Memorandum of Understanding.

E. The City has TRPA development rights and land coverage, which have accumulated from various sources ( e.g., Environmental Improvement Projects, implementation of Community Plans and Area Plans, City purchase of land with attached development rights, the retirement of rights, and TRPA allocation of development).

F. The City has been approached by project developers/ applicants interested in securing development rights and land coverage from the City.

G. The City has independently sold or provided various TRPA development rights and land coverage to project developers/ applicants based on the merits of the individual project.

H. Through the sale of TRPA development rights and land coverage, the City has also provided an environmental and economic incentive to projects which otherwise would not have been economically feasible.
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I. The City believes it is appropriate and transparent to establish a policy that addresses the future distribution and sale of development rights and land coverage maintained by the City.

Based on the facts set forth in the background, be it resolved, that the City Council of the City of South Lake Tahoe:

1. Acknowledges and reserves the right to retain all necessary TRPA development rights and land coverage to support City-sponsored municipal projects; and

2. Hereby authorizes the distribution and sale of City maintained TRPA development rights and land coverage subject to the provisions of this policy; and

3. The City Council adopts the following policy for the distribution and sale of TRPA development rights and land coverage:

A. Distribution and sale of TRPA development rights and land coverage shall be directed toward the development of residential, commercial, mixed- use, and industrial properties in the City of South Lake Tahoe.

B. Distribution and sale of City-owned TRPA development rights and land coverage shall be consistent with the TRPA Regional Plan, TRPA Code of Ordinances, City of South Lake Tahoe General Plan and Municipal Code, and all other applicable community or area plan policies.
i. When a developer/ applicant requests City maintained TRPA development rights and/or land coverage for a project to be located within the City, the proposed project shall be evaluated to ensure the project is consistent with the following criteria;
a. The subject property must be in the City of South Lake Tahoe; and b. The developer/ applicant must have a planning application on file with the Development Services Department, prior to a project developer/ applicant requesting development rights and/or land coverage; and c. The proposed project provides an environmental and/or economic benefit for the community.

C. The distribution and sale of development rights and land coverage shall be to the affected parcel( s), not the developer/ applicant; and
i. Any change to an approved project ( e.g., elevations, building size or siting, land uses, or density) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. The City Manager has the discretion to require any project change to be reviewed by the City Council to 316
Resolution 2023- 051 June 6, 2023 Page 3 of 5
determine whether development rights or land coverage should be revoked. If revoked, the developer/ applicant will return to the City the allocated development rights and/or land coverage. The City shall reimburse the developer/ applicant the price of sale, less the City's administrative processing fee.

D. The distribution and sale of TRPA development rights and land coverage shall be at no cost for the following projects:
i. The sale of city-owned development rights and land coverage shall be at no cost to single or multi-family residential projects, which are deed restricted to accommodate low, very-low, and moderate- income families, as defined by the Department of Housing and Community Development HCD) annual State Income Limits, pursuant to Health & Safety Code Section 50093. ii. The sale of city-owned development rights and land coverage shall be at no cost to a developer/ applicant of a multi-family residential project or a mixeduse project containing multi-family residential units, if the project is located with the boundaries of an identified Town Center.
a. A mixed- use project can be the horizontal or vertical mix of uses residential, commercial and industrial).
iii. The sale of city-owned development rights and land coverage shall be at no cost to commercial/ industrial projects, when the property is deemed to be distressed and/or blighted, and the value of the proposed improvements and/or new construction are greater than fifty-one percent of the El Dorado County assessed value.
iv. Seventy ( 70) City banked Tourist Accommodation Units are set aside and may only be used for converting to Residential Units of Use and sold at no cost for the construction of new Accessory Dwelling Units or the construction of new multi-family rental units (2 or more units) projects.

Should an approved residential, commercial, mixed- use, or industrial project later choose to subdivide the land (pursuant to the Subdivision Map Act), all previously required deed restrictions will remain in force, or the developer shall reimburse the City the full market rate for said development rights/ land coverage at the time of subdivision.

E. Should the City provide or sell development rights or land coverage for a project containing residential units, a deed restriction shall be placed on the property prohibiting use as a Vacation Home Rental as defined in City Code Section

3.50.370.
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F. Commercial Floor Area shall only be provided or sold to a commercial project and shall not be converted to other development right types.

4. The City Council adopts the following implementation strategy for the distribution and sale of development rights and land coverage:

A. The Development Services Department will have an appraisal prepared by a California licenses appraiser, analyzing the sale of each development right potential residential units of use (PRUs), single and multi-family residential units of use (RUUs), tourist accommodation units (TAUs), commercial floor area CFA); and land coverage, for the preceding calendar year. i. The appraiser shall prepare the above- described report for presentation to the City Council on or before February 1 of each calendar year. a. The report shall describe the methodology used in determining the value of each development right category, including commercial floor area, and b. The report shall contain recommendations for each development right category, including land coverage; and
c. The report shall also include a recommended tiers rate structure to address variances based on the scale of the project.
ii. The City Council reserves the right to annually set the price point for each development right type and/or land coverage; and
a. The established cost per category, shall be based upon one-third of the recommended appraisal rate.
iii. A developer/ applicant shall have one-year from the date of the approved development right/land coverage request to submit and obtain a building permit, issued through the City. If this milestone is unachievable the applicant may apply for an extension or relinquish the City granted development rights and land coverage.
iv. One, one-year extension for the retention of approved development rights/ land coverage may be granted by the City Manager, based on the project continuing to meet the distribution policy and proceeding in a diligent manner, or relinquish the City granted development rights and land coverage.
v. The sale and transfer of development rights/ land coverage shall be completed prior to the issuance of a Certificate of Occupancy. vi. If any of the associated City Planning, Building and/or TRPA permits expire, the allocated development rights/ land coverage shall be returned 318
Resolution 2023- 051 June 6, 2023 Page 5 of 5
to the City. The City shall also reimburse the developer/ applicant for the cost of those development rights/land coverage, less the City's administrative processing fee.
vii. Should the project parcel( s) change ownership the development rights may be transferred to a new owner so long as the project is constructed as approved. Any change to an approved project ( e.g., elevations, building siting, interior configuration) may result in the revocation of prior reservation and/or allocated development rights and/or land coverage. viii. When approved development rights/ land coverage is banked on a sending parcel, the developer/ applicant shall obtain TRPA Transfer of Development Rights approval prior to the issuance of a Certificate of Occupancy.
ix. The proceeds from the sale of city-owned development rights/ land coverage shall be dedicated to the City's Workforce Housing Fund to support the City's affordable housing initiatives.

B. The City Council hereby delegates to the City Manager the authority to approve or deny, and to complete the distribution and sale of the development rights/ land coverage inside the City of South Lake Tahoe consistent with the criteria outlined in this policy.

C. The City Council reserves the sole right to distribute and sell development rights/ land coverage to private developers and other public agencies outside the City of South Lake Tahoe, and all such distribution and sales shall be at the full market rate at that time.

D. The City Council hereby directs the implementation of an annual review process of this policy to be completed prior to February 1, of each calendar year.

E. These policies supersede all other distribution and sale of development rights and land coverage policies adopted by the City Council through Resolution 2017- 73, Resolution 2019-067, and Resolution 2022-051.

Adopted by the City of South Lake Tahoe City Council on June 6, 2023 by the following vote:

Yes: Bass, Creegan, Friedrich, Robbins and Wallace
Date:_________
Cristi Creegan, Mayor
Attest:

Susan Blankenship, City Clerk
The presence of electronic signature certified that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.

Sue Blankenship ( Jun 8, 2023 12: 42 PDT)
Cristi Creegan ( Jun 9, 2023 08:15 PDT)
Cristi Creegan Jun 9, 2023
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Res 2023-051 TRPA Development
Commodities
Final Audit Report 2023- 06-09
Created: 2023- 06-08
By: jo Mcdonough ( jmcdonough@cityofslt. us)
Status: Signed
Transaction ID: CBJCHBCAABAAqlqlVoiljZR8JQTKvqp7F- 2XkGjkOuBt Res 2023-051 TRPA Development Commodities" History
Document created by jo Mcdonough ([email protected]) 2023- 06- 08 - 6:05:52 PM GMT- IP address: 128. 92.136. 146 Document emailed to Sue Blankenship ([email protected]) for signature 2023- 06- 08 - 6:20:58 PM GMT
Email viewed by Sue Blankenship ( sblankenship@cityofslt. us) 2023- 06- 08 - 7:41:55 PM GMT- IP address: 104. 47.65.254 Document e-signed by Sue Blankenship ([email protected]) Signature Date: 2023- 06-08 - 7:42:07 PM GMT - Time Source: server- IP address: 128. 92.136. 146 Document emailed to [email protected] for signature 2023- 06- 08 - 7:42:08 PM GMT
Email viewed by [email protected]
2023- 06- 09 - 3:15:03 PM GMT- IP address: 104. 47.65.254 Signer [email protected] entered name at signing as Cristi Creegan 2023- 06- 09 - 3:15:16 PM GMT- IP address: 47.25.118. 95 Document e-signed by Cristi Creegan ([email protected]) Signature Date: 2023- 06-09 - 3:15:18 PM GMT - Time Source: server- IP address: 47.25.118. 95 Agreement completed.
2023- 06- 09 - 3:15:18 PM GMT
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  
JohnsonValuation Group, Ltd.

Post Office Box 11430 124 McFaul Way, Ste. 201 Lake Tahoe, Nevada 89448 (775) 588-4787 www.johnsonvaluationgroup.com
California / Nevada
March 14, 2025
Via E-Mail: [email protected]
Katherine Moore
Assistant Planner
City of South Lake Tahoe
Re: TRPA Intangible Development Rights Valuation Update Letter Dear Ms. Moore:

This is in response to your request for a letter addressing updated Market Values of the City of South Lake Tahoe’s Lake Tahoe Basin Development Rights (intangible development rights). These Development Rights include Land Coverage, Restoration Credits, Commercial Floor Area (CFA), Residential Units of Use, Potential Residential Units of Use, and Tourist Accommodation Units (TAUs).

The undersigned previously prepared a narrative appraisal of the City’s TRPA Development Rights with a date of valuation of January 30, 2020, and a date of issuance of March 26, 2020 (“Original Appraisal”). Subsequently, on August 28, 2020, the First Supplemental Letter to the Original Appraisal addressing updated market conditions from January 30, 2020, to August 28, 2020, was issued. On January 14, 2021, the Second Supplemental Letter to the Original Appraisal addressing Market Conditions from January 30, 2020, to January 14, 2021, was issued. On February 24, 2022, the Third Supplemental Letter to the Original Appraisal, with an effective date of valuation of January 31, 2022, was issued. On February 16, 2023, the Fourth Supplement Letter to the Original Appraisal was issued predicated upon a date of valuation of January 31, 2023. On March 8, 2024, I issued the Fifth Supplemental Letter predicated upon a date of valuation of January 31, 2024. This is the Sixth Supplement Letter to the Original Appraisal and is based on a date of valuation of January 15, 2025. This Sixth Supplemental Letter is incorporated by reference to the Original Appraisal, the 321
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First Supplemental Letter, the Second Supplemental Letter, the Third Supplemental Letter, the Fourth Supplemental Letter and the Fifth Supplemental Letter. It is assumed the reader of this update letter has access to all aforementioned documents that are incorporated by reference herein and has reviewed full copies of all these documents.

This report is being prepared as a new Appraisal Report under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). It is an extraordinary assumption1 of this appraisal that the reader of this appraisal has access to and has fully reviewed a full copy of the Original Appraisal and First through Fourth Update Letters Advisory Opinion 3 of the 2024/25 edition of USPAP provides the following guidance relative to updating a prior appraisal.
“When developing an opinion regarding a property that was the subject of a previous assignment, the scope of work in the new assignment may be different from the scope of work in the prior one. In addition, rather than duplicating steps in the appraisal process, the appraiser can elect to incorporate some of the analyses from the previous assignment (those items that the appraiser concludes are credible and in compliance with the applicable development Standard) into the new assignment through the use of an extraordinary assumption.” This appraisal incorporates by reference the Original Appraisal. Advisory Opinion 3 of the 2024/25 edition of USPAP provides the following guidance relative to incorporating by reference a prior appraisal when completing a new assignment:
“a new report that incorporates by reference specified information/analysis from the prior report so that, in combination, the referenced portions and the new information/analysis added satisfies the applicable reporting requirements. When this incorporation by reference 1 This report, and the value conclusion(s) set forth herein, is subject to an extraordinary assumption. An extraordinary assumption is defined by the 2024/25 version of USPAP as “an 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.”1 322
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option is used, the following items from that prior report should be specifically identified in the new report to avoid being misleading:
• subject property
• client and any other intended users
• intended use
• appraiser(s)
• effective date of value or assignment results
• date of report, and
• interest(s) appraised”
Pursuant to your request, I have prepared this Sixth Supplemental Letter to update the 100% fee simple Market Values for TRPA commodities owned by the City of South Lake Tahoe to January 15, 2025, in typical retail quantities as identified in the Original Appraisal. In order to analyze how market conditions may have changed, the undersigned has reviewed market conditions for the improved commercial and residential real estate market and the changes in the market for TRPA Development Rights, searched the South Lake Tahoe Multiple Listing Service, and interviewed various market participants. The Client and Intended User of this letter is the City of South Lake Tahoe. The intended use is to assist the City of South Lake Tahoe in establishing the value of their owned TRPA intangible development rights in considering potential offers they may receive to purchase some of these rights. 323
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The South Lake Tahoe Board of Realtors has collected the following data for the El Dorado County portion of the Lake Tahoe Basin for sales of single-family residences.

In 2024, the median sale price of single-family residences increased by 0.7% and the median sale price per square foot increased by 3.2% The total sales volume increased by 22.6% and the average number days on market increased by 22.6%. Overall, the market is generally viewed as being stable at the present time.

Currently (as of 1/21/25) there are 127 listings in the El Dorado County portion of South Shore. The median listing price is $885,000 and average listing price is $1,476,892. Inventory has increased over the last two years. There is presently 3.37 months of supply of units presently available on the market based on 2024’s total number of sales. In January 2023, there was less than a two-month supply of inventory.

Changes in the commercial market have also been considered. The demand for commercial properties is largely being driven by buyers completing tax deferred exchanges (1031 exchange) and desiring a replacement property in the Tahoe area. The market for 324
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development land has experienced strong headwinds due to the increases in costs of construction (both labor and materials) and increased interest rates. Many commercial agents and owners indicate the market is in a stage of pause at the present time.

Next, the market for TRPA development rights has been considered. The undersigned interviewed staff at the California Tahoe Conservancy, real estate agents, and private TRPA consultants in January of 2025. These interviews indicated that there has been very limited sales of TRPA development rights over the last year and market participants have varying views of pricing and demand. Due in part to the very limited sales volume, market participants do not appear to have enough data points through which to form a consolidated view of market conditions and pricing for some TRPA development rights.

Class 1b Land Coverage/SEZ Restoration Credits
In the Fifth Update Appraisal (date of value of January 31, 2024), the value per square foot of 1b land coverage was estimated to be $30.00 per square foot. The California Tahoe Conservancy had seven sales for SEZ restoration credit in 2024 that all transacted at a price of $30 per square foot. Four of these sales were in the Upper Truckee Hydrological Area and three of these sales were in the Tahoe City Hydrological Area. In discussions with land planners, it was indicated that there is a relatively small market for small quantities of 1b coverage and sellers are largely able to name their price as the primary buyers are higher end residential properties that have inelastic demand.

There was one larger sale of 18,000 square feet of class 1b land coverage in August of 2024 that was sold from the former Colony Inn Site in the Tourist Core of South Lake Tahoe to 940 Southwood Boulevard in Incline Village. This sale transacted at $17 per square foot. The price reflected a bulk sale discount for a much larger than typical quantity of coverage in a single transaction
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Land Planners reported sale prices of up to $35 per square foot for 1b Land Coverage in 2024 but generally indicated that the market accepts the CTC’s established price of $30 per square foot for the primary basis of establishing value. Based on the CTC’s current asking price, 2024 sales, the Market Value for 1b Coverage is estimated, as of January 15, 2025, at $30 per square foot for a typical retail quantity. This conclusion applies to both 1b potential coverage and 1b restoration credit.

High Capability Potential Coverage – Upper Truckee
In the Fifth Update Appraisal (date of value of January 31, 2024), the Market Value of high capability potential coverage in the Upper Truckee Hydrologic Basin was estimated at $7.50 per square foot. The CTC presently has an asking price of $7.50 per square foot.

Below is a summary of the high capability potential high capability coverage sales by the CTC in 2024 for the Upper Truckee Hydrologic Basin:

High Capability Potential Coverage Sales
Upper Truckee Hydrological Basin
Commodity Amount of Coverage Sale Price per SF Sale Price Escrow Close Date Class 5 - Potential 550±sq. ft. $7.50 $ 4,125.00 7/17/2024 Class 5 - Potential 313±sq. ft. $7.50 $ 2,347.50 3/4/2024 Class 6 - Potential 490±sq. ft. $7.50 $ 3,675.00 9/20/2024 Class 6 - Potential 364±sq. ft. $7.50 $ 2,730.00 4/4/2024 Class 6 - Potential 44±sq. ft. $7.50 $ 330.00 11/21/2024 As indicated, all of the CTC’s sales of high capability potential coverage in the Upper Truckee Hydrologic Basin in 2024 were for $7.50 per square foot. Based on this data the Market Value of high capability potential coverage in the Upper Truckee Hydrologic Basin is estimated, as of January 15, 2025, at $7.50 per square foot for a typical retail quantity. 326
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High Capability Potential Coverage – South Stateline
In the Fifth Update Appraisal (date of value of January 31, 2024), the Market Value of high capability potential coverage in the South Stateline Hydrologic Basin was estimated at $7.50 per square foot. The CTC presently has an asking price of $7.50 per square foot. The CTC did not have any high capability potential coverage sales in 2024 in the South Stateline Hydrologic Basin. There most recent sale was in 2023 and is summarized as follows:

High Capability Potential Coverage Sales
South Stateline Hydrological Basin
Commodity Amount of Coverage Sale Price per SF Sale Price Escrow Close Date Class 7 - Potential 1,498 $7.50 $11,235 03/22/2023
As indicated, the CTC’s most recent sale of high capability potential coverage in the South Stateline Hydrologic Basin was in March 2023 for $7.50 per square foot. Based on this data and the data contained in prior update appraisals, the Market Value of high capability potential coverage in the South Stateline Hydrologic Basin is estimated, as of January 15, 2025, at $7.50 per square foot for a typical retail quantity.

Restored Hard Coverage
In the In the Fifth Update Appraisal (date of value of January 31, 2024), the Market Value of restored hard coverage in the South Stateline Hydrologic Area and the Upper Truckee Hydrologic Area was estimated at $25.00 per square foot. The undersigned is not aware of any 2024 sales of restored hard coverage . The CTC’s present asking price for restored soft coverage (Land Capability Classes 1 to 3) is $25.00 per square foot. Nevada State Lands has restored high capability coverage in the South Stateline Hydrologic Area available for $25.50 for a smaller quantity of 1 to 150 square feet. The asking price decreases to $22.00 for quantities from 151 to 1,500 square feet. It is important to note that Nevada State Lands only sells to properties located in Nevada.

Based on the limited information, the Market Value of restored hard coverage in the South Stateline Hydrologic Area and the Upper Truckee Hydrologic Area is estimated to be unchanged at $25 per square foot for typical retail quantities. 327
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Commercial Floor Area (CFA)
In the Fifth Update Appraisal (date of value of January 31, 2024), the value per square foot of CFA was estimated to be $22.50 per square foot. Barton Healthcare is one of the larger owners of CFA in South Lake Tahoe and has had a standing asking price of $25 per square foot for many years. Barton Healthcare had two sales of CFA (732± square feet and 200± square feet) in 2024, both of which transacted at $25.00 per square foot.

Jessee Walker, of Wells and Barnett Associates, LLC, indicated a client of his was in contract in 2024 to sell CFA to a developer that planned to convert the CFA to RUUs for use in a proposed residential development project. The contract price was $25.00 per square foot, but the transaction failed as the buyer’s proposed development was delayed.

Nick Exline reported prices up to $35 per square foot for CFA in 2024. However, Barton’s standing offer price appears to set the market.

Based on a review, the estimated value of CFA, as of January 15, 2025, is $25.00 per square foot.

Residential Unit of Use (RUU)
In the Fifth Update Appraisal (date of value of January 31, 2024), the value of a Residential Unit of Use (RUU) was estimated to be $28,750.

In 2024, Wyatt Ogilvy reported that he has facilitated a couple of RUU transfers that ranged in price from $30,000 to $32,000.

Nick Exline indicated that his most recent sale price of an RUU was for $35,500.

Dustin Allen of Sierra Sotheby’s sold one RUU in February of 2024 for $35,000. 328
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Kevin Agan, a land planner in Incline Village, indicated that he is not aware of any sales for RUUs, but has clients actively looking for RUUs at the present time.

The undersigned is also aware of CFA being converted to residential units of use to create new RUUs, with property owners using existing CFA that was already owned or CFA that they acquired on the open market. At the current market price of $25.00 per square foot for CFA and 300 square feet of CFA being convertible to a single-family residential unit of use, it indicates the implied value of an RUU is $7,500. However, this process takes time, uncertainty and cost to purchase and convert CFA into an RUU. The lack of sales data uncovered as part of this assignment for RUUs indicates that buyers would rather go through the process of converting CFA as opposed to buying an RUU right on the open market at the present time. On the other hand, there would likely be a market premium attached to a RUU as opposed to buying CFA and converting it.

Based on the information considered herein, it is estimated that the Market Value of an RUU is presently in the range of $30,000 to $35,000 each. This range will be correlated to $32,500.

Tourist Accommodation Unit (TAU)
In the Fifth Update Appraisal (date of value of January 31, 2024) the value of a TAU was estimated to be $25,000.

Nick Exline reported pricing of $30,000 per TAU in 2024, all other TRPA consultants interviewed were not aware of any recent sales of TAUs in 2024.

With consideration given to the increased price for an RUU over the last year, the estimated present value of a TAU, as of January 15, 2025, is $25,000 to $30,000 and will be correlated to a final value conclusion of $27,500.
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Potential Residential Unit of Use (Formerly Residential Development Right) In the Fifth Update Appraisal (date of value of January 31, 2024), the Market Value of a Potential Residential Unit of Use was estimated at $5,000.

The undersigned is aware of one sale of a PRUU in 2024 for a price of $14,500 that was attached to Assessor’s Parcel Number 031-224-009-000.

The undersigned is aware of one current listing of a PRUU for $25,000. This offering also includes 700± square feet of potential coverage in addition to the PRUU and it is not possible to extract the value of the coverage or PRUU from the offering individually.

Additionally, this reflects an asking price as opposed to a closed sale.

Therefore, it is opined the value of a PRUU has increased to $15,000 as of January 15, 2025.
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Summary of Value Conclusions
Overall, the market values summarized herein are based on limited sales data and values may continue to change in the near term as additional transactions occur. It is noted that of the various interviews conducted, many had materially different views of the pricing and future demand for various TRPA development rights. The value conclusions are summarized as follows:

Summary of Value Conclusions
As of January 15, 2025
Development Resource Acronym
Market Value Per Unit
Based on Typical Retail
Quantity
Land Coverage 1B N/A $30.00/SF
SEZ Restoration Credits N/A $30.00/SF
Potential High Capability Land Coverage
South Stateline Hydrological Area N/A $7.50/SF
Potential High Capability Land Coverage
Upper Truckee Hydrological Area N/A $7.50/SF
Restored Hard High Capability Land Coverage
South Stateline and Upper Truckee Hydrological Areas N/A $25.00/SF Commercial Floor Area CFA $25.00SF
Residential Unit of Use RUU $32,500/Ea.

Tourist Accommodation Unit TAU $27,500/Ea.

Potential Residential Unit of Use PRU $15,000/Ea.

Respectfully Submitted,
_________________________________
Benjamin Q. Johnson, MAI
California Certified General Appraiser
License Number AG043925
Type text here
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APPRAISER’S CERTIFICATION
Each of the undersigned do hereby certify that, unless otherwise noted in this appraisal report:
• I have not made a personal inspection of the property that is the subject of this report as it involves intangible development rights.
• I have no present or contemplated future interest in the real estate that is the subject of this appraisal report.
• I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
• I am acting independently of the borrower.
• To the best of my knowledge and belief, the statements of fact contained in this appraisal report, upon which the analysis, opinions, and conclusions herein are based, are true and correct.
• This report sets forth all the limiting conditions (imposed by the terms of our assignment or by the undersigned) affecting the analysis, opinions, and conclusions contained in this report.
• 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 & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
• My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. • The appraisal was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.
• My engagement in this assignment was not contingent upon developing or reporting predetermined results.
• This appraiser has performed services involving the subject property within the prior three years as an appraiser from the date of acceptance of this assignment.
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• No one other than the undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this appraisal report. • The Appraisal Institute conducts a mandatory program of continuing education for its designated members. As of the date of this report, Benjamin Q. Johnson has completed the requirements under the continuing education program of the Appraisal Institute.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

Respectfully Submitted,
____________________________
Benjamin Q. Johnson, MAI
California Certified General Appraiser
License Number AG043925
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STANDARD ASSUMPTIONS AND LIMITING CONDITIONS
The acceptance of this appraisal assignment and the completion of the appraisal report submitted herewith are contingent upon the following assumptions and limiting conditions.

LIMITS OF LIABILITY
This report was prepared by Johnson Valuation Group, Ltd. All opinions, recommendations, and conclusions expressed during the course of this assignment are rendered by the staff of Johnson Valuation Group, Ltd., as employees, not as individuals. The liability of Johnson Valuation Group, Ltd. and its employees and associates is limited to the client only and to the fee actually received by the appraisal firm. There is no accountability, obligation, or liability to any third party. If the appraisal report is disseminated to anyone other than the client, the client shall make such party or parties aware of all limiting conditions and assumptions affecting the appraisal assignment. Neither the appraisers nor the appraisal firm is in any way to be responsible for any costs incurred to discover or correct any physical, financial and/or legal deficiencies of any type present in the subject property. In the case of limited partnerships or syndication offerings or stock offerings in real estate, the client agrees that in the event of a lawsuit brought by a lender, a partner or part owner in any form of ownership, a tenant or any other party, the client will hold the appraiser(s) and the appraisal firm completely harmless in such action with respect to any and all awards or settlements of any type in such lawsuits.

COPIES, PUBLICATION, DISTRIBUTION AND USE OF REPORT
Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for any purpose or any function other than its intended use, as stated in the body of the report. The appraisal fee represents compensation only for the analytical services provided by the appraiser(s). The appraisal report remains the property of the appraisal firm, though it may be used by the client in accord with these assumptions and limiting conditions.

This appraisal is to be used only in its entirety, and no part is to be used without the whole report. All conclusions and opinions concerning the analysis as set forth in the report were prepared by the appraiser(s) whose signature(s) appears on the appraisal report, unless it is indicated that one or more of the appraisers was acting as "Review Appraiser." No change of any item in the report shall be made by anyone other than the appraiser(s). The appraiser(s) and the appraisal firm shall bear no responsibility for any such unauthorized changes.
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CONFIDENTIALITY
Except as provided for subsequently, neither the appraiser(s) nor the appraisal firm may divulge the analyses, opinions or conclusions developed in the appraisal report, nor may they give a copy of the report to anyone other than the client or his designee as specified in writing. However, this condition does not apply to any requests made by the Appraisal Institute for purposes of confidential ethics enforcement. Also, this condition does not apply to any order or request issued by a court of law or any other body with the power of subpoena.

INFORMATION SUPPLIED BY OTHERS
Information (including projections of income and expenses) provided by informed local sources, such as government agencies, financial institutions, Realtors, buyers, sellers, property owners, bookkeepers, accountants, attorneys, and others is assumed to be true, correct and reliable. No responsibility for the accuracy of such information is assumed by the appraiser(s). Neither the appraiser(s) nor the appraisal firm is liable for any information or the work product provided by subcontractors. The client and others utilizing the appraisal report are advised that some of the individuals associated with Johnson Valuation Group, Ltd. are independent contractors and may sign the appraisal report in that capacity. The comparable data relied upon in this report has been confirmed with one or more parties familiar with the transaction or from affidavit or other sources thought reasonable. To the best of my judgment and knowledge, all such information is considered appropriate for inclusion. In some instances, an impractical and uneconomic expenditure of time would be required in attempting to furnish absolutely unimpeachable verification. The value conclusions set forth in the appraisal report are subject to the accuracy of said data. It is suggested that the client consider independent verification as a prerequisite to any transaction involving a sale, a lease or any other commitment of funds with respect to the subject property.

TESTIMONY, CONSULTATION, COMPLETION OF CONTRACT FOR APPRAISAL

SERVICE
The contract for each appraisal, consultation or analytical service is fulfilled and the total fee is payable upon completion of the report. The appraisers(s) or those assisting in the preparation of the report will not be asked or required to give testimony in court or in any other hearing as a result of having prepared the appraisal, either in full or in part, except under separate and special arrangements at an additional fee. If testimony or a deposition is required, the client shall be responsible for any additional time, fees and charges, regardless of the issuing party. Neither the appraiser(s) nor those assisting in the preparation of the report is required to engage in post- appraisal consultation with the client or other third parties, except under a separate and special arrangement and at an additional fee.

EXHIBITS AND PHYSICAL DESCRIPTIONS
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A survey of the property has not been made by the appraiser(s) and no responsibility is assumed in connection with such matters. Any maps, plats, or drawings reproduced and included in the report are there to assist the reader in visualizing the property and are not necessarily drawn to scale. They should not be considered as surveys or relied upon for any other purpose, nor should they be removed from, reproduced or used apart from the report.

TITLE, LEGAL DESCRIPTIONS, AND OTHER LEGAL MATTERS
No responsibility is assumed by the appraiser(s) or the appraisal firm for matters legal in character or nature. No opinion is rendered as to the status of title to any property. The title is presumed to be good and merchantable. The property is appraised as if free and clear, unless otherwise stated in the appraisal report. The legal description, as furnished by the client, his designee or as derived by the appraiser(s), is assumed to be correct as reported. The appraisal is not to be construed as giving advice concerning liens, title status, or legal marketability of the subject property.

ENGINEERING, STRUCTURAL, MECHANICAL, ARCHITECTURAL CONDITIONS This appraisal should not be construed as a report on the physical items that are a part of any property described in the appraisal report. Although the appraisal may contain information about these physical items (including their adequacy and/or condition), it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed report on these physical items. The appraiser(s) is not a construction, engineering, or architectural expert, and any opinion given on these matters in this report should be considered tentative in nature and is subject to modification upon receipt of additional information from appropriate experts. The client is advised to seek appropriate expert opinion before committing any funds to the property described in the appraisal report.

Any statement in the appraisal regarding the observed condition of the foundation, roof, exterior walls, interior walls, floors, heating system, plumbing, insulation, electrical service, all mechanicals, and all matters relating to construction is based on a casual inspection only. Unless otherwise noted in the appraisal report, no detailed inspection was made. For instance, the appraiser is not an expert on heating systems, and no attempt was made to inspect the interior of the furnace. The structures were not investigated for building code violations, and it is assumed that all buildings meet the applicable building code requirements unless stated otherwise in the report.

Such items as conditions behind walls, above ceilings, behind locked doors, under the floor, or under the ground are not exposed to casual view and, therefore, were not inspected, unless specifically so stated in the appraisal. The existence of insulation, if any is mentioned, was discovered through conversations with others and/or circumstantial evidence. Since it is not exposed to view, the accuracy of any statements regarding insulation cannot be guaranteed. 336
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