City Council
Tamara Wallace, Mayor
Cody Bass, Mayor Pro Tem
Scott Robbins, Councilmember
David Jinkens, Councilmember
Keith Roberts, Councilmember
Mission of the City Council
We provide responsive and effective local
government by maintaining a safe, livable, and
well-managed city through smart investment,
reliable services, and thoughtful planning.
City of South Lake Tahoe
City Council
Meeting Agenda
Tuesday, September 9, 2025 at 9:00 am
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe Public Participation
City Council meetings are held in person at the time and location listed on this agenda. Meetings are live-streamed on Channel 21, City website at www.cityofslt.us, YouTube at https://www.youtube.com/channel/UC3LYne8Ih-kTPLnnuyJW9SQ/live and via ZOOM at this link https://us02web.zoom.us/j/81029244155
A public agenda packet is available for review at City Hall, 1901 Lisa Maloff Way, on the City’s Website at www.cityofslt.us, or by contacting the City Clerk's Office, (530) 542-6005 or [email protected] Providing Public Comment:
In Person: Every agenda for regular meetings provides an opportunity for members of the public to directly address the legislative body (City Council), on any item of public interest which is within the jurisdiction of the City Council during Public Communications. For items on the agenda or in connection with any item which the City Council will consider, the public is given the opportunity to comment before or during the City Council's consideration of the item [Government Code Section 54954.3(a)].
Remote Participation: If you are joining the meeting via ZOOM and would like to make a comment, press the "raise a hand" button. If you are joining the meeting via Channel 21 or live stream and would like to make a comment, please call (530) 542-6500. The Webinar ID is: 810 2924 4155. Press *9 to indicate a desire to make a comment. Press *6 to unmute your phone. The Clerk will call you by the last three digits of your phone number when it is your turn to speak. Note: The Mayor reserves the right to conduct the meeting with in-person public participation only, if there is a technology malfunction that precludes the use of remote public participation.
In Writing: Written comments received by 3 p.m. the day before the meeting will be distributed to City Council prior to the meeting. Written public comment regarding any item on this agenda may be sent to [email protected]. When emailing comments, identify the agenda item number in the subject line to which your comments relate. Any such comment that is a public record and is emailed to 1 1. Proclamation Recognizing September 17-23 as "Constitution Week"
2. Proclamation Recognizing September 2025 as "Suicide Prevention Month and Recovery Month" [email protected] or otherwise provided to a majority of the City Council before the meeting will be made available for public inspection during normal business hours at the City Clerk's Office located at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe [Government Code Section 54957.5(b)]. Written comments will not be read out loud during the meeting.
The City Council Chambers meeting facility is accessible to people with disabilities. Every reasonable effort will be made to accommodate any person needing special assistance to attend this meeting.
Contact the City Clerk at (530) 542-6005 at least 48 hours in advance of the meeting for assistance [28 CFR 35.102.35.104 ADA Title II and Brown Act Government Code Sections 54953.2, 54954.1, 54954.2, and 54957.5].
Spanish Interpretations: The public may access Spanish interpretation using the ZOOM link listed on the front of the agenda from an internet device (smartphone, laptop, tablet, home computer) with audio capabilities and selecting the Spanish language option. Persons without an internet device may attend the meeting in-person and a device will be provided while supplies last. Requests for interpreter services to offer public comment may be made by contacting the City Clerk.
Land Acknowledgement
Land Acknowledgement - The City of South Lake Tahoe acknowledges the lands we occupy today are the lands and home of the Wašíšiw, the people from here known today as the Washoe Tribe of Nevada and California, a sovereign nation. Since the beginning of time and for thousands of years before the arrival of any other people, the Washoe lived here and cared for this place, with values and intention that we can all learn from. On behalf of the City Council, I would like to acknowledge, thank, and honor the Indigenous Washoe Tribal Communities that are the past, present, and future stewards of the Lake Tahoe Basin.
Call to Order/Pledge of Allegiance
Roll Call
Closed Session Report
Proclamations
Requested Action / Suggested Motions: Issue a Proclamation to the Daughters of the American Revolution recognizing September 17-23 as "Constitution Week" Responsible Staff Member(s): Susan Blankenship, City Clerk Item 1- Executive Summary.pdf
Proclamation - Recognizing September 17-23 as Constitution Week.pdf Requested Action / Suggested Motions: Issue a Proclamation to Access Tahoe recognizing September 2025 as "Suicide Prevention Month and Recovery Month" Responsible Staff Member(s): Susan Blankenship, City Clerk Item 2- Executive Summary.pdf
Proclamation - Suicide Prevention Month and Recovery Month.pdf Public Communications
This is the public's opportunity to speak on any topic NOT LISTED on this agenda. Comments shall be limited to four (4) minutes. In accordance with the Brown Act, the City Council cannot deliberate or vote on any matter raised under public communications, but may briefly respond to statements made or questions posed. (Government Code Sections 54954.2)
City Commission Reports
2 3. South Tahoe Joint Powers Parking Financing Authority and City Council Budget Workshop Meeting Minutes
4. Fiscal Year 2024-25 Quarterly Financial Status Report - Quarter Ending June 2025
5. Fiscal Year 2025-2026 Investment Policy and Authority
6. Investment Portfolio Report - June 30, 2025
7. Agreement with Freemotion Fitness, Inc. for Purchase and Installation of Exercise Equipment for New Multigenerational Recreation and Aquatic Center
Consent Agenda
Public Comment - This is the public's opportunity to speak on any topic listed on the Consent Agenda.
Comments shall be limited to three (3) minutes per item and six (6) minutes total per speaker.
The consent agenda consists of items of a repeating or routine nature considered under a single action.
Any Councilmember may have an item on the consent agenda removed and considered separately upon request.
Pass a Motion to adopt the Consent Agenda in one motion except as indicated at each item.
Requested Action / Suggested Motions: Pass a Motion approving the minutes from the August 12, 2025, South Tahoe Joint Powers Parking Financing Authority meeting and the August 26, 2025, City Council Budget Workshop meeting.
Responsible Staff Member(s): Michelle Davis, Assistant City Clerk Item 3- Executive Summary.pdf
08_12_2025_City_Council_Meeting_Minutes.pdf
08 26 2025 City Council Budget Workshop Minutes.pdf
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member(s): Andrew Black, Financial Services Supervisor Item 4- Executive Summary.pdf
01-Staff Report - FY 2024-25 Quarterly Budget.docx
02-FY 2024-25 Qtrly Budget Report June 2025.pdf
Requested Action / Suggested Motions: Pass a Resolution delegating investment authority to the City Treasurer and adopting the City Investment Policy for the fiscal year from October 1, 2025 to September 30, 2026
Responsible Staff Member(s): Olga Tikhomirova, Director of Finance Item 5- Executive Summary.pdf
01-Staff Report Investment Policy 2025-2026.docx
02-Resolution - Investment Policy 2025-2026.docx
03-Investment Policy - 2025-2026 (Exh. A to Reso).pdf
04-Investment Policy - 2025-2026 redline.pdf
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member(s): Olga Tikhomirova, Director of Finance Item 6- Executive Summary.pdf
01-Staff Report Investment Report June 2025.pdf
02-Operations Cash June 2025.pdf
03-Fiscal Agent 06 30 2025.pdf
04-Graph 06 30 2025.pdf
05-Cash June 2025.pdf
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the Professional Services Agreement with Freemotion FItness, Inc. in the amount of $120,021.47 for the purchase, delivery and installation of the exercise equipment for the new Multigenerational Recreation and Aquatic Center.
Responsible Staff Member(s): John Stark, Director of Parks & Recreation Item 7- Executive Summary.pdf
3 8. Grant of Temporary Construction Easements to Caltrans
9. Maintenance Agreement with Caltrans for City-Owned Traffic Signals
10. Accept Donation from South Tahoe Parks Foundation & Award Batting Cages Contract for New Multigenerational Recreation and Aquatics Center
11. Ratification of Organizational Authorized Agent Appointment for Cal OES Listos CERT Grant 01-Staff Report-Freemotion Equipment Purchase for for Rec Center.docx 02-Agreement with Freemotion 8.25.25.docx
03-Freemotion Quote.pdf
04-Agreement-Freemotion-and-CCOG-Master-2021.09.01-Executed.pdf Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Easement Agreements granting temporary construction easements to Caltrans for the U.S.
Highway 50 Pavement Preservation Project as follows: Parcel No. 029-470-016 for $7,000; Parcel Nos. 027-081-002 -005 -006, and 029-150-012, -008, and -009 for $4,000; and Parcel No. 027-690- 001 for $3,500, for a total amount of $14,500 to be paid to the City.
CEQA Determination: This action is categorically exempt under CEQA Guidelines section 15301(c) (Existing Facilities) because it involves the maintenance and minor alteration of an existing public highway involving negligible or no expansion of existing or former use.
Responsible Staff Member(s): John Dickinson, Interim Public Works Director Item 8- Executive Summary.pdf
01-Staff Report - CalTrans ROW Easements.docx
02-Easement Agreement APN 029-470-016.pdf
03-Easement Agreement APN 027-081-002, -5 & -6 and APN 029-150-012, -8 & -9.pdf 04-Parcel 38861- Right of Way Contract.pdf
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Maintenance Agreement with Caltrans to maintain the City traffic signals at Pioneer Trail and Ski Run Blvd., Pioneer Trail and Al Tahoe Blvd., and Al Tahoe Blvd. and Johnson Blvd. for a total cost estimated at $3,000 per year.
CEQA Determination: This action is categorically exempt under CEQA Guidelines section 15301(c) (Existing Facilities) because it involves the maintenance and minor alteration of an existing public highway involving negligible or no expansion of existing or former use.
Responsible Staff Member(s): John Dickinson, Interim Public Works Director Item 9- Executive Summary.pdf
01- Staff Report
02-Agreement with Caltrans to Maintian City Traffic Signal.docx Requested Action / Suggested Motions: Pass a Resolution: 1) authorizing and directing the Mayor to accept $30,000 in donations from the South Tahoe Parks Foundation into the New Multigenerational Recreation and Aquatic Center FF&E Account; 2) authorizing and directing the Mayor to execute a Professional Services Agreement with Grand Slam Safety in the amount of $85,844.67 for the purchase, delivery and installation of the batting cages and other equipment; and 3) authorizing the City Manager to execute the two acknowledgement letters.
Responsible Staff Member(s): John Stark, Director of Parks & Recreation Item 10- Executive Summary.pdf
01-Staff Report - Batting Cages Grand Slam Contract 8.18.25.docx 02-Resolution - Donations from the Parks Foundation.docx 03-Agreement with Grand Slam Saftety 8.18.25.docx
04-Purchasing Co-Ops Contract Summary.pdf
05-Grand Slam National Cooperative Purchasing Alliance Document.pdf 06-Donation Acknowledgement Letter- South Tahoe Parks Foundation.docx 07-Donation Acknowledgement Letter- South Tahoe Parks Foundation NBC Sports Tim Wakefield Foundation.docx
08-Donation Approval Form STPF Batting Cages.docx
4 12. Use of General Fund to Cover Facility Rental Fees for Boo Bash Event
13. Reimbursement Agreement with South Tahoe Public Utility District (STPUD) for Bijou 1 Waterline Replacement Repaving
14. Ordinance Amending South Lake Tahoe City Code to Lower Speed Limits on Sections of Sierra Boulevard (Second Reading)
15. Reimbursement Agreement with Liberty Utilities for Tahoe Keys Blvd.
Requested Action / Suggested Motions: Pass a Resolution Ratifying the Appointment of the Director of Parks and Recreation as the Organizational Authorized Agent and Signatory of the City of South Lake Tahoe for the current CalOES Listos Grant Award# LC23 01 7994, for all Subaward Agreements, Amendments, and all applicable Grant Submittals.
Responsible Staff Member(s): John Stark, Director of Parks and Recreation, and Lori Marino, Principal Management Analyst
Item 11- Executive Summary.pdf
01-Staff Report - CalOES Signatory Authority.docx
02-Resolution-CalOES Listos CERT Proof of Authority.docx 03-LC23 01 7994 - SUBAWARD (002).pdf
Requested Action / Suggested Motions: Pass a Resolution authorizing the Use of General Fund to cover facility rental fees for Ever After Productions for the rental of the Gym, Aspen, Cedar and Douglas Rooms to produce the Boo Bash event totaling $5,828.
CEQA Determination: This action is exempt under CEQA Guidelines section 15323 (normal operations of facilities for public gatherings).
Responsible Staff Member(s): John Stark, Director of Parks & Recreation Item 12- Executive Summary.pdf
01-Staff Report - Boo Bash Facility Rental Fees.docx
02-Resolution - Boo Bash Facility Rental Fees.docx
Requested Action / Suggested Motions: Pass a Resolution 1) authorizing and directing the Mayor to execute a Reimbursement Agreement with STPUD for Bijou 1 waterline replacement repaving; 2) accepting $530,000.00 with 25% contingency of $132,500.00 to reimburse the City for the STPUD utility work; and 3) amending the 2026 Road Rehabilitation Project Budget (301-50005-48030).
Responsible Staff Member(s): Cameron Grant, Engineering Technician Item 13- Executive Summary.pdf
01-Staff Report - STPUD Reimbursement Agreement.docx
02-Resolution - STPUD Reimbursement Agreement.docx
03- STPUD Reimbursement Agreement.pdf
Requested Action / Suggested Motions: Pass an Ordinance Amending South Lake Tahoe City Code Chapter 4.25 (Motor Vehicles and Traffic), Article IV (Operation of Vehicles), Sections
4.25.160 and 4.25.170 to Modify the Speed Restrictions on Sierra Boulevard.
CEQA Determination: This action is exempt from review under CEQA Guidelines section 15301(c) (Existing Facilities).
Responsible Staff Member(s): John Dickinson, Interim Director of Public Works and Doug Sentell, Administrative Lieutenant
Item 14- Executive Summary.pdf
01-Staff Report Second Reading Speed
02-Ordinance-Speed Limit Reduction Sierra Blvd..docx
03- Attachment 03-R20250724 Sierra Boulevard ETS-Signed.pdf Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Mayor to execute a Reimbursement Agreement with Liberty Utilities and accepting $85,905.00 into the Street Overlay Program.
Responsible Staff Member(s): Cameron Grant, Engineering Technician Item 15- Executive Summary.pdf
01-Staff Report - Liberty Reimbursement Agreement.docx
5 16. Sustainable Transportation Planning Grant Agreement with the California Department of Transportation (Caltrans) for the Stateline Complete Streets Project
17. South Tahoe Parks Foundation Community Tile Fundraiser Donation Acceptance & Sponsorship Approval
18. Hazardous Fuels Reduction Agreement with Acres Forestry
19. Agreement with Lake Tahoe Unified School District to Provide School Resource Officer 02-Resolution - Liberty.docx
03-Reimbursment Agreement (Exh. A to Reso).docx
Requested Action / Suggested Motions: Pass a Resolution authorizing the Public Works Director, or designee, to execute all Restricted Grant Agreements and any amendment thereto with the California Department of Transportation, and authorizing the Finance Director to appropriate funding once executed.
CEQA Determination: This action is statutorily exempt under CEQA Guidelines section 15262 (Feasibility and Planning Studies) and categorically exempt under section 15305, Class 6 (Information Collection).
Responsible Staff Member(s): Emily Dougherty, Associate Transportation Planner Item 16- Executive Summary.pdf
01-Staff-Report-STP.docx
02-Resolution - STP Grant Agreement.docx
03-Res 2025-004 Caltrans Sustainable Transportation Grant.pdf 04-STP Grant Application.pdf
Requested Action / Suggested Motions: Pass a Resolution: 1) authorizing and directing the Mayor to accept $34,320 in donations from the South Tahoe Parks Foundation into the New Multigenerational Recreation and Aquatic Center Donations Account; 2) authorizing and directing the Mayor to approve the tile sponsorships; and 3) authorizing the City Manager to execute the acknowledgement letter.
Responsible Staff Member(s): John Stark, Director of Parks & Recreation Item 17- Executive Summary.pdf
01-Staff Report STPF Community Tile Fundraiser Donation Sponsorship.docx 02-Resolution - Donations from the Parks Foundation.docx 03-South Tahoe Parks Foundation Tile Sponsors.pdf
04-Donation Approval Form STPF Tiles.docx
05-Sponshorship Approval Form STPF Community Tiles.docx 06-Donation Acknowledgement Letter South Tahoe Parks Foundation.docx Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the Professional Services Agreement with Acres Forestry in an amount not to exceed $398,909.30 for the City of South Lake Tahoe SNPLMA R18 Hazardous Fuels Reduction Project.
CEQA Determination: This action is exempt from CEQA review under 14 Cal. Code Regs. 1038.3 (Forest Resilience Exemption for harvesting trees to reduce flammable materials in moderate, high, or very high fire hazard severity zones).
Responsible Staff Member(s): Jay Manning, Division Chief Item 18- Executive Summary.pdf
01-Staff Report - Fuels Reduction.docx
02_Acres_Forestry_Agreement Revised.pdf
03 - Acres Forestry SLT Bid.pdf
04 - Valuation Scoresheet - SNPLMA Fuel Reduction Project.xlsx 05 - SNPLMA Map Package 2025.pdf
Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Mayor to execute the Memorandum of Agreement with the Lake Tahoe Unified School District (LTUSD) regarding the operation of the School Resource Officer (SRO) for the 2025-2026 School Year and approve budget for reimbursement from LTUSD to the City in the amount up to $82,484.00. 6 20. Ratification of Subcontractor Addition for the Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase 2
21. Amendment No. 8 to Agreement with Jordan Knighton Architecture Engineering for Architectural and Engineering Services for the Multigenerational Recreation and Aquatics Center
22. Update on Vacation Home Rental Permitting
Responsible Staff Member(s): Lieutenant Russell Liles
Item 19- Executive Summary.pdf
01-Staff Report-School Resource Officer Agreement.docx
02-Resolution - School Resource Officer Agreement with LTUSD.docx 03-School Resource Officer Agreement (Exh. A to Reso)
Requested Action / Suggested Motions: Pass a Motion ratifying the addition of a concrete subcontractor (Morgan Concrete) to the construction contract with Herback General Engineering for Phase 2 of the Tahoe Valley Stormwater and Greenbelt Improvement Project, pursuant to Public Contract Code section 4109 and the written finding of public necessity in the staff report.
CEQA Determination: The Planning Commission adopted a Mitigated Negative Declaration for the Project on May 9, 2019, SCH# 20190292152. Addendum No. 1 adding the basin and associated improvements at the corner of 4th Street and Barton Avenue was adopted by the Planning Commission on February 20, 2025. This action does not require additional review under CEQA Guidelines section 15162.
Responsible Staff Member(s): Brianna Greenlaw, Associate Civil Engineer Item 20- Executive Summary.pdf
01-Staff Report-Subcontractor Addition.docx
02-Subcontractor Addition Request
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Amendment No. 8 to the Professional Services Agreement with Jordan Knighton Architecture Engineering for an additional $50,000.00 to cover design changes requested by the City for a total not-to-exceed amount of $5,110,303.00, and extending the term until October 2026.
CEQA Determination: On January 18, 2022, the City Council adopted an Initial Study/Mitigated Negative Declaration (IS/MND) for the 56 Acre Master Plan and the Multigenerational Recreation and Aquatics Center (State Clearinghouse file No. 2021120206) and filed the Notice of Determination filed with the El Dorado County Clerk on January 19, 2022. This action is included within the scope of the IS/MND and no further environmental review is required under CEQA Guidelines 15162.
Responsible Staff Member(s): Ricky Riddle, Construction Manager/Facilities Program Manager Item 21- Executive Summary.pdf
01-Staff_Report-Amendment_No._8_to_Agreement_with_JK_Architecture.docx 02-Amendment 8 to Agreement with JKAE.pdf
03-C-084-2020 Original PSA.pdf
04-C-010-2021 Amendment-1.pdf
05-C-108-2021 Amendment2-4.pdf
06-C-106-2022 Amendment-5.pdf
07-C-031-2023 Jordan Knighton Amendment-6.pdf
08-C-312-2024 JKAE Amendment 7.pdf
Regular-Unfinished Business
Requested Action / Suggested Motions: Receive report and either: (1) Pass a Motion directing staff to bring back an ordinance at a future meeting to amend Ordinance No. 2025-1200 to make one or more of the following changes: (a) subject non-residential areas to the same rules as the Tourist Core Area Plan; (b) modify buffer requirements in residential areas; and/or (c) modify restrictions regarding condominiums; or (2) take no action.
Responsible Staff Member(s): Heather Stroud, City Attorney Joseph Irvin, City Manager Item 22- Executive Summary.pdf
7 23. Cannabis Revenues Grant Program Award Recommendations for 2025
24. Cannabis Tax Rate Discussion
25. Grant Applications to Tahoe Regional Planning Agency for Tahoe Metropolitan Planning Organization (TMPO) 2025 Regional Grant Program for Complete Streets Projects
26. Mid-Town Area Plan Policy Review and Design Standards Discussion 01 - Staff Report - VHR Update.docx
02- Ordinance_2025-1200_VHR_Amendments_-_signed.docx
Requested Action / Suggested Motions: Pass a Resolution appropriating an additional allocation of $46,415 of Cannabis Program Revenue toward the 2025 Cannabis Revenue Grant Program for a total amount of $446,415 and approving the grant awards list of projects recommended by the grant application review committee.
Responsible Staff Member(s): Sara Letton, Sustainability Coordinator Item 23- Executive Summary.pdf
01 - Staff Report Cannabis Revenues Grant Awards 2025.docx 02 - Resolution - Cannabis Grant Budget Allocation.docx 03 - Attachment 1 to Resolution-Grant Award List.docx
04 - Res 2025-031 2025 Cannabis Grant Program Process and Guidelines.pdf Regular-New Business
Requested Action / Suggested Motions: Pass a Motion to either: 1) Direct staff to bring back a resolution reducing Cannabis Business and Professions Tax rate and if so, by how much, and/or to reduce or eliminate Public Safety Mitigation Fee; or 2) Take no action in regard to Cannabis Business and Professions Tax rate and other fees.
Responsible Staff Member(s): Olga Tikhomirova, Director of Finance, Joseph Irvin, City Manager, and Heather Stroud, City Attorney
Item 24- Executive Summary.pdf
01-Staff Report - Cannabis Tax Rate Discussion.docx
02-Attachment A Letter to City Council- lowering local cannabis tax.pdf 03-Attachment B - Cannabis Tax Rates Chart 2025.docx
Requested Action / Suggested Motions: Pass a Resolution authorizing the Public Works Director, or designee, to submit grant application(s) to the TMPO for federal fiscal years 2027 and 2028 for one or both of the following: (1) Stateline Complete Streets Project Design, Engineering, and Environmental Review ($2,700,000 grant requested with $309,690 local match); and/or (2) Johnson Boulevard Complete Streets Project Design, Engineering, and Environmental Review ($2,400,000 grant requested with $275,280 local match).
CEQA Determination: This action is statutorily exempt under CEQA Guidelines section 15262 (Feasibility and Planning Studies) and categorically exempt under Section 15306, Class 6 (Information Collection).
Responsible Staff Member(s): Emily Dougherty, Associate Transportation Planner, and John Dickinson, Interim Public Works Director
Item 25- Executive Summary.pdf
01_SR_Authorization to Apply to RGP.docx
02- Resolution.docx
03_PPT Authorization to Apply to RGP.pptx
04-2025 July Letter to City Council re Greenway UTR Bridge Johnson Mdw-final.pdf 05- TTD Letter
Requested Action / Suggested Motions: Pass a Motion providing direction to staff on the contents of the draft Mid-Town Area Plan on the following topics: (1) increasing maximum density of residential development; (2) increasing height limit to 56 feet; (3) modifying parking requirements and establishing exceptions to minimum parking requirements; (4) confirming priorities, design standards, and changes to the permissible land use list for the six proposed districts; and (5) 8 27. Grow and Diversify the Economy- Strategic Plan Priority Update
28. Policy Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Development Commodities Owned by the City of South Lake Tahoe
29. Emergency Shelter and Warm Room Discussion
30. Pay for Success Contract with Tahoe Coalition for the Homeless confirming the proposed implementation strategies.
Responsible Staff Member(s): Anna Kashuba, Senior Planner Item 26- Executive Summary.pdf
01 - Staff Report - Mid-Town Area Plan.docx
02 - Mid-Town Area Plan Boundary.pdf
03 - Outreach Summary and Appendices.pdf
04 - Mid-Town Policy Direction.docx
05 - Mid-Town Districts Summary.pdf
06 - Implementation Strategies.docx
07-Mid-Town Powerpoint CC.pptx
Requested Action / Suggested Motions: Pass a Motion directing staff to continue business outreach efforts, initiate the General Plan Economic Development Update process, continue efforts to reduce regulatory barriers to business investment, develop industry social media campaigns, and explore options to fund a facade/property improvement grant program and/or pre-development loan program.
Responsible Staff Member(s): Hilary Roverud, Assistant City Manager Item 27- Executive Summary.pdf
01-Staff Report
02- General Plan Economic Development Element
03-Economic Development Presentation
Requested Action / Suggested Motions: Pass a Resolution amending the policy regarding disposition of Tahoe Regional Planning Agency (TRPA) development commodities owned by the City of South Lake Tahoe to modify disposition to commercial/industrial projects.
Responsible Staff Member(s): John Hitchcock, Planning Manager Item 28- Executive Summary.pdf
01-Staff Report - Development Rights.docx
02-Res 2023-051 TRPA Development Commodities.pdf
03-Resolution-Disposition of Development Rights (Red Line).pdf 04-Resolution-Disposition of Development Rights.docx
Requested Action / Suggested Motions: Either: 1) Pass a Motion directing staff to pursue establishment of an emergency shelter in partnership with local and regional stakeholders; or 2) Receive report and take no further action at this time.
Responsible Staff Member(s): Jessica Wackenhut Lomeli, Housing Manager Item 29- Executive Summary.pdf
01- Staff Report - Warm Room Discussion.docx
02 - Housing First - Fact Sheet.pdf
Requested Action / Suggested Motions: 1) Pass a Motion authorizing and directing the Mayor to execute Pay for Success Agreement with Tahoe Coalition for the Homeless in an amount not to exceed $40,000; and 2) Pass a Resolution Authorizing $40,000 Budget Appropriations from General Fund Undesignated Excess Reserves for the agreement.
Responsible Staff Member(s): Jessica Wackenhut Lomeli, Housing Manager Item 30- Executive Summary.pdf
01_-_Staff_Report_P4S_LVF_TCH_Agreement (1).docx
02 - TCH Pay for Success Contract.pdf
03 - Resolution P4S Budget Appropriation.docx
9 31. Extension of City Manager Employment Agreement
32. League of California Cities Annual Conference Voting Delegate and Alternate
33. Agenda Planning Calendar
Requested Action / Suggested Motions: Pass a Resolution authorizing and directing the Mayor to execute the Amended and Restated City Manager Employment Agreement with Joseph D. Irvin, extending the term of his employment for an additional six years, until April 14, 2032.
Responsible Staff Member(s): Heather Stroud, City Attorney Item 31- Executive Summary.pdf
Staff Report - City Manager Contract Extension.docx
02 - Resolution - City Manager Contract Extension.docx
03 - Amended and Restated City Manager Employment Agreement (Exh. A to Reso).docx 04 - Redline Showing Changes to Employment Agreement.pdf Requested Action / Suggested Motions: Pass a Motion selecting a Voting Delegate and an Alternate for the League of California Cities Annual Conference General Assembly.
Responsible Staff Member(s): Susan Blankenship, City Clerk Item 32- Executive Summary.pdf
01-Staff Report - League Conference Voting Delegate Appointment.docx 02-2025 Voting Delegate Information Packet.pdf
Agenda Planning Calendar
Requested Action / Suggested Motions: Identify, with consent of at least two Council Members, any desired future agenda items, and/or modify the Agenda Planning Calendar as desired.
Responsible Staff Member(s): Joseph Irvin, City Manager, and Susan Blankenship, City Clerk Item 33- Executive Summary.pdf
APC - 09 04 2025.pdf
Updates and Announcements (City Attorney, City Clerk, City Manager) Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Adjournment
I, Susan Blankenship, City Clerk for the City of South Lake Tahoe, declare that the foregoing agenda for the Tuesday September 9, 2025, City Council meeting was posted and available for review on Thursday, September 4, 2025, at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe, CA 96150. The agenda was also available on the City's website at https://www.cityofslt.us.
Signed September 4, 2025
\\sb\\ Susan Blankenship, Elected City Clerk
10 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 9,
2025
Agenda Item #:1
Agenda Item: Proclamation Recognizing September 17-23 as "Constitution Week" Requested Action / Suggested Motions: Issue a Proclamation to the Daughters of the American Revolution recognizing September 17-23 as "Constitution Week" Responsible Staff Member: Susan Blankenship, City Clerk Attachments:
Proclamation - Recognizing September 17-23 as Constitution Week.pdf 11 City of South Lake Tahoe
Proclamation
Recognizing September 17-23 as
“Constitution Week”
Whereas, The Constitution of the United State of America, the guardian of our liberties, embodies the principles of limited government in a republic dedicated to rule by law; and
Whereas, September 17, 2025, marks the two hundred and thirty-sixth anniversary of the framing of the Constitution of the United States of America by the Constitutional Convention; and
Whereas, It is fitting and proper to accord official recognition to this magnificent document and its memorable anniversary; and Whereas, Public Law 915 guarantees the issuing of a proclamation each year by the President of the United States of America designating September 17 through 23 as Constitution Week.
Now, therefore, The City Council of the City of South Lake Tahoe, does hereby proclaim the week of September 17 through 23 as “Constitution Week” and ask our citizens to reaffirm the ideals the Framers of the Constitution had in 1787, by vigilantly protecting the freedoms guaranteed to us through this guardian of our liberties.
_____________________ __________________________
Tamara Wallace, Mayor Susan Blankenship, City Clerk
12 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 9,
2025
Agenda Item #:2
Agenda Item: Proclamation Recognizing September 2025 as "Suicide Prevention Month and Recovery Month"
Requested Action / Suggested Motions: Issue a Proclamation to Access Tahoe recognizing September 2025 as "Suicide Prevention Month and Recovery Month" Responsible Staff Member: Susan Blankenship, City Clerk Attachments:
Proclamation - Suicide Prevention Month and Recovery Month.pdf 13 City of South Lake Tahoe
Proclamation
Recognizing September 2025 as
“Suicide Prevention Month and Recovery Month”
Whereas, the health and well-being of the citizens of South Lake Tahoe are of utmost importance to the prosperity and quality of life in our community; and Whereas, suicide and other deaths of despair, which include deaths related to drug and alcohol abuse, are major public health issues that impact people of all ages, genders, and backgrounds, with devastating effects on families, friends, and entire communities; and Whereas, according to the Centers for Disease Control and Prevention (CDC), suicide is the 10th leading cause of death in the United States, underscoring the critical need for comprehensive mental health care and proactive intervention; and
Whereas, the observance of Suicide Prevention Month in September provides an opportunity to raise awareness, educate the public about suicide prevention, and promote mental health resources that can save lives; and
Whereas, recovery from mental health and substance use disorders is possible with the appropriate support and treatment, helping individuals lead fulfilling and productive lives; and Whereas, Recovery Month is celebrated nationally in September to increase awareness and understanding of mental health and substance use disorders, and to celebrate those who have embarked on the journey of recovery; and
Whereas, the City of South Lake Tahoe is committed to supporting initiatives that promote mental health, prevent suicide, and provide recovery resources to those in need; and Whereas, through collaborative efforts with healthcare providers, educators, community organizations, and concerned citizens, we can work together to foster a culture of understanding, compassion, and resilience.
Now, therefore, the City Council of the City of South Lake Tahoe does hereby proclaim September 2025 as “Suicide Prevention Month and Recovery Month” in South Lake Tahoe and encourage all citizens to take steps to increase awareness and to extend compassion and support to those affected by mental health and substance use disorders. _____________________ ___________________________
Tamara Wallace, Mayor Susan Blankenship, City Clerk
14 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 9,
2025
Agenda Item #:3
Agenda Item: South Tahoe Joint Powers Parking Financing Authority and City Council Budget Workshop Meeting Minutes
Requested Action / Suggested Motions: Pass a Motion approving the minutes from the August 12, 2025, South Tahoe Joint Powers Parking Financing Authority meeting and the August 26, 2025, City Council Budget Workshop meeting.
Responsible Staff Member: Michelle Davis, Assistant City Clerk Attachments:
08_12_2025_City_Council_Meeting_Minutes.pdf
08 26 2025 City Council Budget Workshop Minutes.pdf
15 City of South Lake Tahoe
City Council and South Tahoe Joint Powers
Parking Financing Authority Meeting Minutes
Tuesday, August 12, 2025 at 9:00 a.m.
City Hall - Council Chambers – 1901 Lisa Maloff Way, South Lake Tahoe NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council. Complete Council member discussions on Regular Session meeting items can be viewed in archived video recordings on the City’s website at http://www.cityofslt.us Public submittals on items are retained in the administrative record and can be viewed in the City Clerk’s repository at http://www.cityofslt.us Land Acknowledgement
Mayor Pro Tem Bass read the Washoe Tribe of Nevada and California Land Acknowledgement.
Call to Order/Pledge of Allegiance
Mayor Pro Tem Bass called the meeting to order at 9:19 a.m., then led the pledge of allegiance.
Roll Call
Present were Mayor Pro Tem Bass, and Councilmembers Robbins, Jinkens and Roberts.
Mayor Wallace was absent.
Also present were City Manager Irvin, City Attorney Stroud, and City Clerk Blankenship.
Closed Session Reports
1. Conference with Legal Counsel – Anticipated Litigation, Initiation of Litigation under Gov. Code section 54956.9(d)(4) (one case).
Action: Council moved to initiate the litigation in a vote of 3-1 with Councilmember Jinkens voting No.
2. Conference with Legal Counsel – Existing Litigation – Government Code section 54956.9(d)(1) Case: Herlinda Beltran v. City of South Lake Tahoe, Workers’ Compensation Appeals Board Case Nos. ADJ17894958 and ADJ12468995
Action: No reportable action.
3. Conference with Legal Counsel – Existing Litigation – Government Code section 54956.9(d)(1) Kyle Printz v. City of South Lake Tahoe, Workers’ Compensation Appeals Board Case Nos.
ADJ16686341 and ADJ18748809.
Action: No reportable action.
4. Closed Session Report from March 18, 2025
Conference with Legal Counsel – Existing Litigation - Government Code section 54956.9(d)(1) Case: Willian Araujo, et al. v. City of South Lake Tahoe, et al., El Dorado County Superior Court Case No. 22CV0761
Action: case arouse out of a Police Department pursuit of a stolen vehicle resulting in an accident causing injuries to the plaintiffs. The parties have settled this case in a fully executed settlement agreement as of July 30, 2025. The terms of the settlement agreement are that the plaintiffs will dismiss the case with full prejudice in exchange for a total payment of $2,000,000; one million per plaintiff. This amount is covered by the City’s risk pool insurance through Secura. 16 Public Communications
Public Comment was heard from the following people:
1. Ed Mosur- South Tahoe Refuse waste bin policies, lightning along Hwy 50
2. Scott Bye, Bear League- Code enforcement program
3. Kathi Zollinger, Bear League- Code enforcement program
4. Dennis Cobb- Need for “Do not Feed Geese” signs at Pope Beach, e-bike enforcement and speeed signs on bike trails, lake pollution
5. Brad Adams- Request for the City to review VHR 150 foot buffer requirements
6. Melissa Soderston- Bear policies within City limits
7. Caleb Fry- Request for the City to review VHR 150 foot buffer requirements
8. Colleen Bye- Bear policies within City limits, issuance of permits to general public City Commission Reports
None.
Consent Agenda
Action: Moved/Seconded: Jinkens/Robbins
Yes: Bass, Robbins, Jinkens, Roberts
Absent: Wallace
Action: Passed the consent agenda with noted correction to Item 1.
1. Regular City Council Meeting Minutes
Action: Passed Motion 2025-061 approving the minutes from the June 17, 2025, City Council meeting.
Note: Councilmember Jinkens made a correction to the minutes on page 5 under Councilmember Reports, Councilmember Jinkens item 2 name should be “Candace Williams”.
2. Bijou Park Connector Multi-Use Trail Project: Award Construction Contract to The Design Build Inc.
and Amend Professional Services Agreement with Eastern Sierra Engineering to Add Construction Support Services
Action: Passed Motion 2025-062 authorizing and directing the Mayor Pro Tem to: (1) execute an Agreement with The Design Build Inc. (C-161-2025) in the amount of $733,786.00, with an additional 10% contingency of $ 73,378.60, for a total not-to-exceed project amount of $807,164.60 to build approximately
0.6 miles of Class I bicycle and pedestrian trail within Bijou Community Park; and (2) execute Second Amendment to Professional Services Agreement with Eastern Sierra Engineering (C-162-2025) in the amount $19,470.00, for a total contract amount not exceed $396,022.00
3. Correction of Assessor Parcel Numbers for Grant of Permanent Easement to Liberty Utilities for Underground and Above Ground Utility Facilities at Harrison Avenue Parking Lot Action: Passed Resolution 2025-057 Granting a Permanent Utility Easement to Liberty Utilities for the purpose of expanding infrastructure to service 12 Electric Vehicle Charging Stations at APNs 026-113- 007, -008, -009, -010, and -011, all City-owned parcels
4. Grant Funding Acceptance from the California Office of Traffic Safety Action: Passed Resolution 2025-058 authorizing and directing the Mayor Pro Tem to execute agreement, budget, and reimbursement of grant award by California Office of Traffic Safety (C-163-2025) in amount up to $45,000.00 to facilitate extra enforcement for traffic-related issues for Federal fiscal year 2025/2026, effective October 1, 2025, and ending September 30, 2026.
5. Public Works Department Annual Report 2024
Action: Receive and File.
17 6. Award Furniture, Fixtures & Equipment Contract for New Multigenerational Recreation and Aquatic Center
Action: Passed Motion 2025-063 authorizing the Mayor Pro Tem to execute the Professional Services Agreement with Meteor Education (C-164-2025) in the amount of $237,875.80 for the purchase, delivery, storage and installation of the furniture, fixtures and equipment for the new Multigenerational Recreation and Aquatic Center.
7. Approval of a 3-Year Agreement with Arctic Wolf for Cybersecurity Services Action: Passed Motion 2025-064 to authorize and direct the Mayor Pro Tem to execute a 3-year agreement with Arctic Wolf (C-165-2025) to provide cyberthreat detection and response services for a total cost of $113,538.00, paid in yearly installments.
8. Updating the Electric Vehicle Charging Rate for Public Chargers to Eliminate Grace Period Action: 1) Acting as the City Council, Passed Resolution 2025-059 adopting the updated electric vehicle charging rate structure for City-owned publicly available electric vehicle chargers; and (2) Acting as the South Tahoe Joint Powers Parking Financing Authority, Passed Resolution 2025-002 updating the electric vehicle charging rate structure for public chargers at the Parking Garage.
9. Reimbursement Agreement with South Tahoe Public Utility District for the Rockwood to Blackwood Drainage Improvements Project
Action: Passed Resolution 2025-060 authorizing and directing the Mayor Pro Tem to execute the South Tahoe Public Utility District reimbursement agreement (C-166-2025) in an amount up to $59,728.75; and authorizing the Director of Finance to amend Fiscal Year 2024-2025 budget, and to invoice the District for an overall not to exceed amount of $59,728.75.
10. Reimbursement Agreements with South Tahoe Public Utility District for the Tahoe Valley Stormwater and Greenbelt Improvement Project
Action: Passed Resolution 2025-061 authorizing and directing the Mayor Pro Tem to execute the South Tahoe Public Utility District reimbursement agreements (C-167-2025, C-168-2025) in amounts up to $326,561.25 for the Phase 1 Project and up to $112,862.50 for the Phase 2 Project; and authorizing the Director of Finance to amend Fiscal Year 2024-2025 budget, and to invoice the District for an overall not to exceed amount of $439,423.75.
11. Financial Policy Amendments Regarding Procurement, Grant Funding and Compliance, Preserving Capital Investments, Unclaimed Check, and New Financial Policy - Fraud Waste and Abuse
Action: Passed Resolution 2025-062 amending financial policies regarding Procurement, Grant Funding and Compliance, Preserving Capital Investments, Unclaimed Check, and adopting New Financial Policy - Fraud Waste and Abuse.
12. Amendment No.1 to Agreement with Black Eagle Consulting for 2025 Construction Season Material Testing
Action: Passed Motion 2025-065 authorizing and directing the Mayor Pro Tem to execute Amendment No.1 to Agreement with Black Eagle Consulting (C-169-2025) for an Additional $150,000 for the 2025 Construction Season Material Testing, for a total amount not to exceed $355,000.
13. Ratification of Contract Amendment with Patrick Clark Consulting for Labor Relations Support Action: Passed Motion 2025-066 ratifying a contract amendment with Patrick Clark Consulting (C-170- 2025) for Labor Relations Support for additional compensation of $13,000, and a total amount not to exceed $63,000.
18 Regular-Unfinished Business
14. Lease to Locals Program Update
Action: Moved/Seconded: Robbins/Roberts
Yes: Bass, Robbins, Jinkens, Roberts
Absent: Wallace
Action: Passed Motion 2025-067 to Terminate the Professional Services Agreement with Placemate in 30 days, bring Program management in-house, and change the name to Long-Term Rental Incentive Program; and to direct staff to reach out to regional government partners and regional businesses to gauge interest in and request participation in funding of the Long-Term Rental Incentive Program.
Public Comment was heard from the following people:
1. Ed Mosur
2. David Gregorich
Regular- New Business
15. Citizen Appointment to the Building and Housing Board of Appeals Action: Moved/Seconded: Robbins/Roberts
Yes: Bass, Robbins, Jinkens, Roberts
Absent: Wallace
Action: Passed Motion 2025-068 appointing Dan May to the Building and Housing Board of Appeals.
Public Comment was heard from the following person:
1. Dan May
16. Ordinance Amending South Lake Tahoe City Code to Lower Speed Limits on Sections of Sierra Boulevard (First Reading)
Action: Moved/Seconded: Robbins/Jinkens
Yes: Bass, Robbins, Jinkens, Roberts
Absent: Wallace
Action: Passed Motion 2025-069 to hold a first reading (by the title only) of an Ordinance Amending South Lake Tahoe City Code Chapter 4.25 (Motor Vehicles and Traffic), Article IV (Operation of Vehicles), Sections 4.25.160 and 4.25.170 to Modify the Speed Restrictions on Sierra Boulevard, and refer to second reading and adoption to the meeting on September 9, 2025.
Public Comment was heard from the following person:
1. Melissa Soderston
17. Delegation of City Engineer and City Traffic Engineer and Agreement with Lefrancois Engineering for On-Call Engineering and Traffic Engineering Services Action: Moved/Seconded: Jinkens/Roberts
Yes: Bass, Robbins, Jinkens, Roberts
Absent: Wallace
Action: Passed Resolution 2025-063 1) Authorizing and directing the Mayor Pro Tem to execute Professional Services Agreement with Lefrancois Engineering for an amount not to exceed $300,000; 2) Appropriating $300,000 from General Fund Undesignated Excess Reserves into account 100- 03210-42025; 3) Delegating to Michael Lefrancois, P.E., an employee of Lefrancois Engineering, the authority to act as City Engineer; 4) Delegating to Bill Suen, P.E. (Traffic) an employee of LSC Transportation Consultants, Inc., a subconsultant to Lefrancois Engineering, the authority to act as City Traffic Engineer.
19 Agenda Planning Calendar
18. Agenda Planning Calendar
Action: Councilmembers Roberts- Requested a discussion item on bear enforcement options in the City (Jinkens seconded).
Action: Councilmember Roberts- Requested a discussion item on potential speed bumps on bike trails (Bass seconded).
Action: Mayor Pro Tem Bass- Requested a discussion item re-evaluating Sign Ordinance (Jinkens seconded).
Action: Mayor Pro Tem Bass- Requested an update on discussions with Heavenly Resort on annexation and parking (Jinkens seconded).
Action: Councilmember Robbins- Requested the City manager to work with the Tahoe Regional Planning Agency to schedule a presentation on mitigation fees (Bass seconded).
Action: Councilmember Robbins- Requested the City Manager to work with the Tahoe Regional Planning Agency to present housing policy changes (Jinkens seconded).
Updates and Announcements (City Attorney, City Clerk, City Manager) City Clerk Blankenship
1. Proclamation request from Peace Love Tahoe for September as “Suicide Prevention Month and Recovery Month”
2. Proclamation request from Daughters of the American Revolution for “Constitution Week” Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions Councilmember Robbins
1. Attended Tahoe Transportation District Special Meeting Councilmember Jinkens
1. Attended Tahoe Gold Foundation Fundraiser
2. Commended Elected City Treasurer David Olivo
Mayor Pro Tem Bass
1. Attended Tahoe Regional Planning Agency Meeting
Adjournment
Mayor Pro Tem Bass adjourned the meeting at 11:37 p.m.
Date:
Tamara Wallace, Mayor
Attest:
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
20 City of South Lake Tahoe
City Council Budget Workshop
Meeting Minutes
Tuesday, August 26, 2025 at 9:00 a.m.
City Hall - Council Chambers – 1901 Lisa Maloff Way, South Lake Tahoe NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council. Complete Council member discussions on Regular Session meeting items can be viewed in archived video recordings on the City’s website at http://www.cityofslt.us Public submittals on items are retained in the administrative record and can be viewed in the City Clerk’s repository at http://www.cityofslt.us Call to Order/Pledge of Allegiance
Mayor Wallace called the meeting to order at 9:03 a.m., and then led the pledge of allegiance.
Land Acknowledgement
Mayor Wallace read the Washoe Tribe of Nevada and California Land Acknowledgement.
Roll Call
Present were Mayor Wallace, Mayor Pro Tem Bass, and Councilmembers Robbins, Jinkins, and Roberts.
Also present were City Manager Irvin, City Attorney Stroud, and City Clerk Blankenship.
Closed Session Report of August 26, 2025
1. Conference with Labor Negotiator - Government Code section 54957.6(a) Designated representative: Heather Stroud, City Attorney. Unrepresented employee: City Manager.
Action: No reportable action.
2. Closed Session Update from the August 12, 2025 Meeting Conference with Legal Counsel – Anticipated Litigation, Initiation of Litigation under Gov.
Code section 54956.9(d)(4) (one case).
Action: Council voted to initiate litigation in a 3-1 vote with Councilmember Jinkens voting “No” and Mayor Wallace being absent. The case is to join with the City of Fresno and other local governments to challenge federal grant conditions. The case’s name is City of Fresno et al. v. Scott Turner et al. It is filed in the Northern District of California. The case number is 3:25-cv-07070-RS. It was filed on August 20, 2025.
Public Communications
1. Duane Wllace, South Tahoe Chamber of Commerce- South Lake Tahoe as a marriage capitol, bear protection
2. Chad Hayes- Heavenley negotiations
3. Toogee Sielsch- CA Department of Fish and Wildlife handling of bear incidents
4. Melissa Soderston- Protection of bears
5. Angie Regean- Need “Community for All” to be in the City’s Strategic Plan 21 Public Hearing
1. Local Public Employees: Vacant Positions (Assembly Bill 2561) Action: Moved/Seconded: Roberts/Bass
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Held a public hearing and passed Motion 2025-070 accepting the City's AB 2561 "Vacant Positions" report.
Regular- New Business
2. South Tahoe Transit Joint Powers Authority Update
Action: Moved/Seconded: Jinkens/Bass
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed Motion 2025-071 requesting a contribution of $150,000 towards the South Tahoe Transit Joint Powers Authority to be included in the budget.
Public Comment was heard from the following people:
1. Jim Marino- Tahoe Transportation District Director
2. Andy Chapman, Tahoe Transportation District Chair
3. Duane Wallace, South Tahoe Chamber of Commerce
3. Fiscal Year 2025-2026 Recommended Budget
Action: Moved/Seconded: Jinkens/Roberts
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed Resolution 2025-064 Approving FY 2025-2026 Municipal Operating and Capital Improvement Program Budget; and Passed Resolution 2025-065 Approving FY 2025-2026 List of Allocated Permanent Positions, including new, eliminated, and reclassified positions.
Note: The Director of Finance clarified that the $150,000 contribution towards the South Tahoe Transit JPA will come back to Council as a future budget appropriation.
Note: City Council provided consensus for the City Manager to join the National League of Cities.
Public Comment was heard from the following person:
1. Stacey Ballard
Agenda Planning Calendar
4. Agenda Planning Calendar Action:
Received and Filed.
Updates and Announcements (City Attorney, City Clerk, City Manager) None.
Councilmember Reports and Comments
Councilmember Jinkens
1. Request for a discussion item on performance bonds as a condition of demolition” (Wallace seconded).
Mayor Pro Tem Bass
1. Upcoming Tahoe Regional Planning Agency meeting
2. Last Live at Lakeview concert Thursday
Councilmember Roberts
1. Reported conversations with the City Manager, Tourism Improvement District, and the Lake Tahoe Visitor’s Authority regarding room nights.
22 Adjournment
Mayor Wallace adjourned the Meeting at 3:30 p.m.
Date:
Tamara Wallace, Mayor
Attest:
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
23 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 9,
2025
Agenda Item #:4
Agenda Item: Fiscal Year 2024-25 Quarterly Financial Status Report - Quarter Ending June 2025 Executive Summary: In accordance with the City's Financial Policies, the Finance Department submits reports to City Council on a periodic basis to provide assurance of budget compliance and for informational and comparative purposes. Attachment 2, “FY 2024/25 Quarterly Budget and Financial Status Report for Period Ending June 30, 2025†summarizes operating revenues and operating expenditures (unaudited figures) for the General Fund and Measure S Sales Tax Fund for the year-todate providing an analysis of any significant budget variances.
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member: Andrew Black, Financial Services Supervisor Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - FY 2024-25 Quarterly Budget.docx
02-FY 2024-25 Qtrly Budget Report June 2025.pdf
24 Council Agenda Report- September 9, 2025 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 9, 2025
Title: Fiscal Year 2024/25 Quarter End Financial Status Report as of June 2025 Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance, (530) 542-7431; Andrew Black, Financial Services Supervisor, (530) 542-6016
Background: The Finance Department submits quarterly reports to City Council to provide assurance of budget compliance and for informational and comparative purposes throughout the year. Attachment 2, “FY 2024/25 Quarterly Budget and Financial Status Report for Period Ending June 30, 2025” is an unaudited snapshot of year-to-date actual revenues and expenditures for the General Fund for that period.
Issue and Discussion: At the end of June 2025 with 75% of the year complete, primary General Fund actual revenues were at 66.4% of the amended budget, while expenditures were at 59.4% of appropriations. All departmental expenditures were below the total 75.0% threshold allocated to the first three quarters of the fiscal year. Measure S Sales Tax revenue, accounted for in a separate general fund, amounted to approximately 54.5% of the adopted budget, while the scheduled transfers used up 49.5% of the total expenditures budget. See Attachment 2 for further analysis.
Financial Implications: As of June 30, 2025, or after the first nine months of the fiscal year, actual General Fund expenditures exceeded revenues by $346K. Compared to the same period last year, overall revenues have increased by approximately 1.9%, or $777K, primarily due to strong performance in Property Tax, Transient Occupancy Tax (TOT), including TOT receipts from the Project Area, and Sales Tax, including Measure Q. These three revenue sources collectively increased by $1.4 million. While there were additional increases in other revenue categories, such as Motor Vehicle License Fees, Business License Tax, and Interest Revenue, those increases were offset by decreases in departmental revenues, including parking citation fines, one-time grants and insurance reimbursements, as well as the timing of transfers in from other funds.
Expenditures increased by 5.2%, or $2.0 million, compared the same period last fiscal year.
Departmental expenditures, excluding Miscellaneous General Fund, increased by approximately $3.1 million, largely due to citywide increases in personnel costs, including a reduction in position vacancies. This increase was partially offset by a $1.1 million reduction in the Miscellaneous General Fund category, primarily due to decreased transfers out to other funds.
Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes in the environment).
25 Council Agenda Report- September 9, 2025 Page 2 of 2 Policy Implications: Consistent with City’s Financial Policies. 26 2024-25 QUARTERLY FINANCIAL REPORT Page 1 of 2 3rd QUARTER ENDING JUNE 30, 2025
CITY OF SOUTH LAKE TAHOE
2024-25 QUARTERLY FINANCIAL REPORT
3 RD QUARTER ENDING JUNE 30, 2025
This report summarizes the financial position for the City’s primary General Fund and the Measure S Sales Tax general fund for Fiscal Year 2024-25, displaying expenditures at the department or program level and revenues by type. It compares actual revenues and expenditures received through June 2025 to the total budget.
Primary General Fund Financial Condition
As of June 30, with 75% of the fiscal year complete, General Fund revenues are at 66.4% of projections and expenditures are at 59.4% of appropriations.
Revenues. The top three revenues, Property Tax, City Transient Occupancy Tax (TOT), and Sales Tax, generated 55.2% of the $41.3 million in General Fund revenue collected through June 30.
Property Tax and Motor Vehicle License Fees
(MVLF) received through June 30, 2025, reflect
two major installments for the current year.
Their strong performance compared to the
same period last year (with an increase of 2.9%
and 4.7%, respectively) has resulted in these
revenues nearing or exceeding their annual
budget allocations.
TOT receipts, including TOT from the Project
area, increased by $889K, or 9.8%. Sales Tax and
Measure Q revenue combined was 3.4% or
$198K higher than for the same period last fiscal
year.
Increases in other revenue sources, such as
interest revenue ($320K), Motor Vehicle License
Fees ($140K), Business License Tax ($76K), and
Franchise Fees ($51K), have significantly
contributed to the overall revenue growth of $777K in comparison to the first three quarters of the previous year.
These increases were offset by decreases in Departmental revenue, primarily due to one-time grants and reimbursements received in FY 2023/24 and decreased transfers in from other funds. Fire revenue, which is currently at 13.3% of total budget to date, will increase substantially at year-end due to an outstanding transfer-in from the Measure S Sales Tax fund for seven firefighters.
Expenditures. Total General Fund expenditures
through June 30 were $41.7 million. Of this
amount, $25.2 million (60.4%), was allocated to
personnel costs, covering 19 payroll periods
which represents 73.1% of the total payroll
periods for the year. Out of the remaining $16.5
million (39.6%), $9.0 million is attributed to
transfers-out, $2.9 million to professional,
technical, and other contract services, $1.9
million to miscellaneous general expense (e.g,
Revenues by Type
Total Budget
as of
June 30
Actuals
through
June 30
As % of
Budget
Property Tax 11,925,000$ 11,418,498$ 95.8%
Transient Occupancy Tax - City 10,762,562 5,461,521 50.7% Transient Occupancy Tax - Project Area 7,550,000 4,502,192 59.6% Sales Tax 7,264,000 3,840,025 52.9%
Measure Q 3,900,000 2,118,714 54.3%
Motor Vehicle License Fees (MVLF) 2,933,780 3,108,752 106.0% Franchise Fees 2,150,000 1,472,319 68.5%
Business License Tax 2,215,000 1,352,855 61.1%
Finance - Other Revenues 3,215,735 2,492,291 77.5%
General Government 298,126 3,383 1.1%
Police 3,115,046 1,715,190 55.1%
Fire 2,833,005 377,247 13.3%
Public Works 849,534 590,504 69.5%
Development Services 1,975,700 2,099,034 106.2%
Parks and Recreation 1,127,400 686,014 60.8%
Transfers In 117,000 77,000 65.8%
Miscellaneous General Fund 46,626 23,332 50.0%
REVENUES TOTAL 62,278,514$ 41,338,871$ 66.4%
Expenditures by Department
Total Budget
as of
June 30
Actuals
through
June 30
As % of
Budget
General Government 7,530,000$ 3,324,565$ 44.2%
Finance 3,456,840 2,397,030 69.3%
Miscellaneous General Fund 16,733,748 10,746,169 64.2%
Police 16,575,473 9,964,155 60.1%
Fire 12,569,362 6,991,560 55.6%
Public Works 6,092,084 3,655,885 60.0%
Development Services 2,052,162 1,332,897 65.0%
Parks and Recreation 5,178,114 3,272,790 63.2%
EXPENDITURES TOTAL 70,187,783$ 41,685,051$ 59.4%
27 2024-25 QUARTERLY FINANCIAL REPORT Page 2 of 2 3rd QUARTER ENDING JUNE 30, 2025 taxes, fees, travel, training, communications), $0.9 million to purchases of tools, parts, software, machinery and equipment, and the remaining $1.8 million to utilities, general supplies, and other miscellaneous expense.
Expenditures increased by 5.2% ($2.0 million) compared to the same period last fiscal year. Personnel costs increased by 11.9% ( $2.7 million), primarily due to Cost of Living Adjustments (COLAs) and Year 2 equity increases for eligible job classifications, as specified in the Memoranda of Understanding (MOUs) for the City’s six bargaining units and the Compensation and Benefits package for unrepresented employees. Lower vacancy levels and the addition of several new positions over the past year also contributed to the increase in personnel costs. Service departments with allocated staffing reported a combined expenditure increase totaling $3.1 million, including payroll costs. Non payroll related increases in expenditures were due to higher contracted services, utilities, software, and machinery and equipment purchases, among other factors. This overall increase was partially offset by a $1.1 million decrease in the Non-Departmental Miscellaneous General Fund category, primarily due to the timing of transfers out to other funds.
All departments remained below the 75% budget threshold allocated for the first three quarters. As the fiscal year wraps up, the recognition of remaining budgeted expenses, including transfers out, insurance premiums, and the annual CalPERS Unfunded Accrued Liability (UAL) payment, will further impact the ratio of actual expenditures to the total budget.
Overall, the majority of General Fund revenues are projected to meet or exceed budget estimates by the end of the fiscal year, with some expenditure savings expected in various categories, both contributing positively to the overall year-year results.
Measure S Sales Tax General Fund
Measure S, a 1% city-wide sales and use tax, went into effect on April 1, 2021, and is projected to generate $7.8 million in FY 2024-25.
Revenues. As of June 30, 2025, the City
received approximately $4.2 million in
Measure S Sales Tax revenue.
Expenditures. The FY 2024-25 total budget
allocates $9.2 million in Measure S funds to
various programs and capital projects,
including $3.0 million for Road Reconstruction,
$630K for in-house Street Maintenance, $500K
for Fire Station III rehabilitation, and $1.1
million for Pioneer Trail Pedestrian
Improvement Project.
Personnel funded (fully or partially) by
Measure S include seven firefighter positions
formerly funded by the SAFER grant, one
Police Lieutenant position, and 50% of the Fire
Marshall position.
Other Measure S revenue uses include
transfers out for debt service on the
emergency communications system and the
snow removal equipment purchase
agreements, funding for expanded Snow Removal Operations, including Sidewalk Snow Removal, support for the Storm Water Program, and funding for the replacement of Streets vehicles and equipment.
As of June 30, $4.5 million has been transferred out to support these Measure S-designated programs and projects.
Measure S Sales Tax Total Budget as of
June 30
Actuals through
June 30
As % of
Budget
REVENUES
Measure S Sales Tax 7,800,000$ 4,232,415$ 54.3%
Interest/Dividends Revenue 35,000.00 39,456 112.7%
REVENUES TOTAL 7,835,000$ 4,271,871$ 54.5%
EXPENDITURES and FINANCING USES
Technical Services 10,000 600 6.0%
Transfer out to/for:
CIP - Pioneer Trail Pedestrian 1,050,000 1,050,000 100.0% CIP - Pioneer Trail HSIP 47,000 47,000 100.0%
Debt Service - Communication System 554,643 554,643 100.0% Debt Service - Snow Removal Equip 602,721 602,721 100.0% Fire Marshall position (50%) 144,000 - 0.0%
Fire Station III 500,000 500,000 100.0%
Police Lieutenant position 320,000 - 0.0%
Road Reconstruction 3,000,000 - 0.0%
Seven (7) Firefighters 1,200,078 45,078 3.8%
Sidewalk Snow Removal 161,234 161,234 100.0%
Snow Removal Operations 500,000 500,000 100.0%
Streets - In house repair 630,000 630,000 100.0%
Storm Water Program 99,352 99,352 100.0%
Vehicle Replacement 350,000 350,000 100.0%
EXPENDITURES TOTAL 9,169,028$ 4,540,628$ 49.5%
28 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 9,
2025
Agenda Item #:5
Agenda Item: Fiscal Year 2025-2026 Investment Policy and Authority Executive Summary: City Council will formally consider the City's Investment Policy, and reaffirm the use of this policy for fiscal year 2025-2026. California law requires all public agencies to annually present a formal investment policy to City Council approval. The fiscal year 2025-2026 policy is submitted with several changes which are explained in the staff report and are identified in the attachment 04. The policy formally delegates investment authority to the City Treasurer, and grants the City Manager the formal authority to assign a second official (Finance Director) to perform investment management during absences of the City Treasurer. The policy prioritizes safety, liquidity, and then yield, and establishes various limits on the term, percentage of the City's portfolio authorized in various instruments and caps on investments in various instruments, and prohibits certain types of investments deemed to carry greater risk. City staff presents a report on the status of the City's investments on a quarterly basis. The most recent, June 30, 2025 report will also be presented at September 9, 2025 council meeting with the next report scheduled for December. The City's primary investment instrument is the Local Agency Investment Fund (LAIF), a California state pool (approximately 64% of the City's portfolio as of the quarter ended June 30, 2025). LAIF is highly liquid, safe, and typically generates a competitive yield (4.27% as of the end of the June 30, 2025 quarter). The City's other primary investment instruments are Government Agency funds and certificates of deposit.
Requested Action / Suggested Motions: Pass a Resolution delegating investment authority to the City Treasurer and adopting the City Investment Policy for the fiscal year from October 1, 2025 to September 30, 2026
Responsible Staff Member: Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report Investment Policy 2025-2026.docx
02-Resolution - Investment Policy 2025-2026.docx
03-Investment Policy - 2025-2026 (Exh. A to Reso).pdf
04-Investment Policy - 2025-2026 redline.pdf
29 Council Agenda Report- September 9, 2025 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 9, 2025
Title: Fiscal Year 2025-2026 Investment Policy
Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 David Olivo, City Treasurer (530) 307-8972
Background: California State Law requires all public agencies to reduce to writing the investment policy that is followed for investing agency funds.
In accordance with the City’s adopted financial policies, the annual review of the investment policy has occurred and is complete.
Included in the Investment Policy is Attachment A which serves as a quick guide to permitted investments and the applicable guidelines. The guide serves as an easy reference to verify that investment purchases are made in accordance with the City Council adopted resolution, minimizing risk exposure while maximizing investment opportunities.
The most recent glossary of terms from the Association of Public Treasurers of the United States and Canada is provided for added clarification.
Issue and Discussion: Changes to the policy are as follows:
XII. DIVERSIFICATON
Added the criterion “highest letter and number rating by a Nationally Recognized Statistical Rating Organization (NRSRO)” to the Commercial Paper investment instrument.
Added the criterion “A rated or higher” to the Medium-Term Corporate Notes investment instrument.
XIII. MAXIMUM MATURITIES
Updated the City’s liquid investment types to include Money Market Funds for idle funds.
30 Council Agenda Report- September 9, 2025 Page 2 of 2
ATTACHMENT A
Updated the guidelines for Commercial Paper and Medium-Term Corporate Notes to reflect the changes made in Section XII.
Financial Implications: Financial Policies that are up to date with current laws, governmental accounting standards and compliance are essential to the prudent financial management of the City’s assets and resources.
Environmental Considerations: These policy additions and amendments are not a project requiring review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (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: Updating the investment policy yearly ensures it is in compliance with California State law.
31 Resolution 2025-XXX September 9, 2025 Page 1 of 1
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
September 9, 2025
Delegating investment authority to the City Treasurer and reconfirming and adopting the City Investment Policy for the fiscal year October 1, 2025 through September 30, 2026
BACKGROUND
A. In accordance with California law, the City has maintained a formal investment policy for many years.
B. City policy requires annual review and approval of the investment policy by the City Council.
C. The Fiscal Year 2025-2026 policy presented for Council review and approval is submitted with several changes which are explained in the staff report and are incorporated in the attached Exhibit A.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Hereby reconfirms and adopts the Fiscal Year 2025-2026 Investment Policy (attached hereto as Exhibit A).
2. Delegates formal investment authority to the City Treasurer and the Finance Director (as designated by the City Manager, in the absence of the City Treasurer).
Adopted by the City of South Lake Tahoe City Council on September 9, 2025 by the following vote:
Yes:
No:
Absent:
Abstain:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
32 CALIFORNIA
Investment Policy
Fiscal Year 2025-2026
33 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
2 Contents
I. POLICY ................................................................................................................................... 3 II. SCOPE .................................................................................................................................... 3 III. PRUDENCE ......................................................................................................................... 3 IV. OBJECTIVE ......................................................................................................................... 4 V. DELEGATION OF AUTHORITY ...................................................................................... 4 VI. ETHICS AND CONFLICT OF INTEREST ..................................................................... 5 VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ................................ 5 VIII. AUTHORIZED AND SUITABLE INVESTMENTS .................................................... 6 IX. INVESTMENT POOLS/MUTUAL FUNDS ..................................................................... 6 X. COLLATERIZATION ......................................................................................................... 7 XI. SAFEKEEPING AND CUSTODY ..................................................................................... 7 XII. DIVERSIFICATION ......................................................................................................... 7 XIII. MAXIMUM MATURITIES .......................................................................................... 10 XIV. INTERNAL CONTROL ................................................................................................ 10 XV. PERFORMANCE STANDARDS ................................................................................... 10 XVI. REPORTING ................................................................................................................... 11 XVII. INVESTMENT POLICY ADOPTION ....................................................................... 12 XVIII. GUIDELINES............................................................................................................... 12 ATTACHMENT A: INVESTMENT GUIDELINES SUMMARY TABLE.……………….14 GLOSSARY................................................................................................................................. 15 34 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
3 I. POLICY
This policy is intended to provide guidelines for the prudent investment of the City of South Lake Tahoe’s (City) funds and to enhance the economic status of the City while protecting its pooled cash. Funds will be invested in accordance with this policy and with applicable sections of the California Government Code.
II. SCOPE
This investment policy applies to all financial assets of the City which are available for investment by the City's Treasurer. These funds are accounted for in the City's Comprehensive Annual Financial Report and include:
• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Project Funds
• Enterprise Funds
• Internal Service Funds
• Fiduciary Funds
The following assets are exempt from the policy: proceeds of City bond issues, Hourly/ Part-time Employee Retirement Plan, Other Postemployment Benefits Plan, Pension Rate Stabilization Trust Fund and assets held by the City as fiduciary for other agencies and subject to separate agency agreement(s). The exempt assets are invested in accordance with regulations established by the State of California and any agreements specific to the funds.
III. PRUDENCE
The standard of prudence to be used for managing the City's investments shall be California Government Code Section 53600.3, the prudent investor standard, which states “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
35 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
4 IV. OBJECTIVE
1. Safety: Safety of principal is the foremost objective of the investment program.
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.
2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
3. Yield on Investments: The City’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.
V. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code 53607. Management responsibility for the investment program is hereby delegated to the City Treasurer who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the City Treasurer.
The City Manager shall designate an official to manage investments and designate a second official to perform investment management during absences of the primary designee.
The City Manager shall insure that competent investment management is maintained and shall insure that, if both designated investment officials are replaced or are simultaneously absent, any temporary replacement(s) shall be closely supervised, and indoctrinated in the requirements of this Statement of Investment Policy, and given written investment procedures, regulating the authority to invest in maturities beyond six months by means of appropriate controls and restraining requirements. The City Manager shall authorize preparation and filing of documents with all financial institutions with which the City conducts investment activities certifying the names of those persons authorized to effect trades on behalf of the City.
1. Investment Procedures: The City Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, SIFMA master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority of persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.
36 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
5 VI. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which would impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City.
All the City’s employees who are listed on the City’s Conflict of Interest Policy are required by the Fair Political Practices Commission to complete and file a Form 700 annually. All persons, broker/dealers, financial institutions and advisors providing investment services or bond issuance shall disclose to the Treasurer all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issue bonds.
VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
To promote the optimum yield on the investment of City funds, investment procedures shall be designed to encourage competitive bidding on transactions from approved financial institutions or broker/dealers.
1. The City Treasurer will maintain a list of financial institutions and broker/dealers authorized to provide investment services to the City who are authorized to provide investment services in the State of California. An eligible designation does not guarantee that the City will do business with the firm or institution;
1.1 Must certify that they have read and agree to comply with the investment policies of the City.
1.2 Must be a "primary" or regional dealer that qualifies under the Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule).
1.3 Must be experienced in institutional trading practices and familiar with the California Government Code as related to investments for local governmental agencies.
1.4 Must have been in business for at least three years.
1.5 Must provide current audited financial statements.
1.6 Must provide proof of Financial Industry Regulatory Authority certification.
2. All financial institutions in which the City's public funds are deposited will supply the Treasurer with the following;
2.1 Current audited financial statements.
2.2 Depository contracts.
2.3 Proof that the institution is State or Federally chartered. 37 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
6 VIII. AUTHORIZED AND SUITABLE INVESTMENTS
The City is empowered by statute to invest in the following types of securities: (see Section XII for a description of each investment type)
1. Certificates of Deposit (or Time Deposits) placed with commercial banks and or savings and loan institutions.
2. Bankers’ Acceptances.
3. Securities of the U.S. Government or its agencies.
4. Commercial Paper.
5. Medium-Term Corporate Notes.
6. Local Agency Investment Fund (State Pool) Demand Deposits, (LAIF).
7. Negotiable Certificates of Deposit.
8. Passbook Savings Account Demand Deposits.
9. Government Security Mutual Funds.
10. Money Market Mutual Funds.
11. Bonds, Notes or California State and Local Agencies.
12. Bond proceeds may be invested as authorized by California Government Code 53601(m) but may also be invested in authorized investments as outlined in bond covenants and agreements.
13. Notes, Bonds and other securities of all fifty United States.
14. Supranationals
Attachment A: Investment Guidelines Summary Table
Prohibited Investments: The following investments are either prohibited by law or authorized by law and prohibited by the City Treasurer. Under Provisions of California Code 53601.6 the City shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools or any investment that may result in a zero-interest accrual if held to maturity. Also, the City shall not invest in Reverse Repurchased Agreements and Mortgage Pass Through Securities.
IX. INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/funds is required prior to investing, and on a quarterly basis. There shall be a questionnaire developed which will answer the following general questions:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced, and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
• A schedule for receiving statements and portfolio listings. 38 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
7 • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? X. COLLATERIZATION
Collateralization will be required on two types of investments: certificates of deposit and sweep checking accounts. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value of principal and accrued interest.
The City chooses to limit collateral to the following: certificates of deposit and sweep checking accounting held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.
Collateral for other investments must be 110% of principal for government securities. and 150% of principal for first mortgages.
XI. SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery-versus payment (DVP) basis. Securities will be held by a third-party custodian designated by the Treasurer and evidenced by safekeeping receipts.
XII. DIVERSIFICATION
The City will diversify its investments by security type and institution in order to reduce portfolio risk while maintaining average market rates.
Security Type and Institution - U.S. Treasury securities and authorized pools, and any portfolio or institutional limits shall comply with California Government Code. Investments are further limited by specific language relating to each investment type as stated below.
Maximum Maturities - To the extent possible, the City Treasurer will attempt to match investments with anticipated cash flow requirements. The City's portfolio will be directly invested in securities with a maturity of no more than five years from the date of purchase.
The City Treasurer may invest in the following types of Investment Instruments:
1. Certificate of Deposit: Certificates of deposit of up to $250,000 are federally insured.
Beyond that amount, these CDs must be collateralized with the collateral held separately from 39 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
8 the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities.
Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 25 percent of the portfolio (GC 53601(i)). In addition, time deposits shall be placed in institutions meeting all capital requirements and which maintain a rating equivalent to FDIC rating of "One" or "Two" or a Sheshunoff performance rating of A or better.
2. Bankers’ Acceptances: The maximum investment with any one institution will not exceed $1.0 million. The maximum maturity will be 180 days. The maximum proportion of City funds invested in Bankers’ Acceptance shall not exceed 20% of the total City portfolio.
Maximum 5% invested per issuer. (Note: California Government Code allows a maximum of 40%).
3. Securities of the U.S. Government or its Agencies: Maximum maturity is five years.
4. Commercial Paper: Commercial paper will be used solely as a short-term investment not to exceed 270 days. Commercial paper will be of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statisticalrating organization. Maximum $2,000,000 combined any issuer, maximum 25% of City portfolio, highest letter and number rating by a Nationally Recognized Statistical Rating Organization (NRSRO).
5. Medium-Term Corporate Notes: The City may invest in medium-term corporate notes with a maximum of five years maturity issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
Notes shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service. The maximum proportion of City funds invested in Medium Term Corporate Notes shall be A rated or higher and shall not exceed 30% of the total City Portfolio.
6. Local Agency Investment Fund (State Pool): The investment with LAIF may not, by state regulation, exceed $75 million. LAIF transactions, by LAIF guidelines, are not to exceed 15 per month.
7. Negotiable Certificates of Deposit: The maximum maturity is five years. The maximum investment is 30% of the total City Portfolio. Maximum 5% or $1,000,000 invested per issuer. Negotiable Certificates of Deposits (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.
8. Passbook Savings Account Demand Deposits: This account shall be maintained solely for the following purposes:
a. Investment of amounts over $100,000.00 received too late in the day to invest in other instruments; or,
b. Investment of amounts under $100,000.00 for periods of up to ten working days in order to fine-tune cash flow and minimize LAIF transactions in a given month. 40 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
9 9. Government Security Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53601, are permitted investments. Section 53601(l) further defines requirements. A maximum of 20 percent of the portfolio may be so invested.
10. Money Market Mutual Funds: Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Must receive the highest ranking or the highest letter and numerical rating by no less than two nationally recognized rating services. A maximum of 20 percent of the portfolio may be so invested.
11. Bonds, Notes or other evidence of indebtedness issue by the California State and Local Agencies: Bonds issued by the local agency, including bonds payable solely out of the revenues from revenue -producing property owned, controlled, or operated by California state or local agency, or by a department, board, agency, or authority of the local agency as authorized by California Government Code 53601 (a). Notes eligible for investment shall be rated in a category of “A” or its equivalent by two Nationally Recognized Rating Organizations.
Bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state, include bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. A maximum of 20% of the portfolio may be so invested.
12. Bond Proceeds: Section 53601 (m) allows greater flexibility with respect to the types of investments that may be made with bond proceeds. Specifically, the law permits money from bond proceeds, obligations under a lease, installment sales, or other agreements of a local agency to be invested in any security that meets the statutory provisions governing the issuance of the bond or other agreements made by the issuing agency. In doing so, this section of the code recognizes that outstanding contracts between issuers and bond holders may not comply with the investment statutes and gives local agencies greater discretion in how to invest bond proceeds.
13. U.S. Treasury Notes and Bonds: Registered Treasury notes or bonds of all 50 United States including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency or authority of the state as authorized by California Government Code 53601 (c) and (d). Maximum maturity is five years.
14. Supranationals: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States.
41 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
10 Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
XIII. MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow and authorized by the City Council, the City will not directly invest in securities maturing more than five years from the date of purchase.
CD maturities will normally not exceed five years. U.S. Government or Agency securities will not exceed five years. At least 50% of idle funds can be placed in investments which can be liquidated for at least face value in the event of an emergency. The City uses LAIF and Money Market Funds for its idle funds to ensure this requirement is met.
XIV. INTERNAL CONTROL
The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures.
The Finance department shall establish a system of internal controls, which shall be documented in writing. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City. Controls deemed most important include; control of collusion, separation of duties, separating transition authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, written confirmation of telephone transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and ethical standards.
XV. PERFORMANCE STANDARDS
The investment portfolio will be designed to attain at least a market-average rate of return during budgetary and economic cycles. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek returns in the range of the average rate of return of the 2-year CMT (Constant Maturity Treasury) whose maturity most closely matches the average maturity of the portfolio. In addition, the City portfolio will be compared with LAIF and the goal is to maintain a higher positive annual yield than LAIF’s annual yield.
42 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
11 1. Investment Strategy: The City’s investment strategy is to buy and hold investments until maturity. However, the Treasurer may sell a security due to adverse changes in credit risk or due to unexpected cash flow needs.
2. Market Yield (Benchmark): The basis used by the Treasurer to determine whether market yields are being achieved shall be the rates of return from the following combination of indices: Local Agency Investment Fund (LAIF) and 3-month, 6-month, and 1-year Treasury Bills.
3. Review: The investment policy shall be reviewed at least annually by the City Manager and Finance Director and approved by the City Council to ensure its consistency with the overall objectives of safety (including diversification), liquidity and return, as well as its relevance to current law and financial/economic trends.
The City's philosophy prohibits speculation; i.e., the purchase of securities with the intent to profit from favorable changes in market prices or market conditions. Leveraging or borrowing money for the purpose of investing is specifically prohibited.
XVI. REPORTING
The City Treasurer shall provide investment information to City Council.
Periodic Reports – If any, the City Treasurer will provide a monthly transaction report of all investments including any pooled investment fund portfolio to the City Council, City Manager, Chief Financial Officer and City Clerk. Also, within thirty days of the end of each quarter a full report of the City's operational cash investment portfolio report will be provided with additional information such as market pricing. This report shall include the type of investment, issuer, date of maturity, par and dollar amount invested in all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund (LAIF), the report shall also include a current market value as of the date of the report and shall include the source of this same valuation.
Annual Report – This investment policy will be presented annually following the close of the fiscal year, to the City Council for approval.
Financial Statements per GASB #31 – City Treasurer will provide the portfolio’s market value gains/losses to Finance to be incorporated in the fiscal year-end balance sheet.
Financial Statements per GASB #40 – Effective June 30, 2005, additional disclosure is required. City Treasurer will provide detailed maturity and rating information to Finance to be incorporated in the Annual Comprehensive Financial Report (ACFR). 43 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
12 XVII. INVESTMENT POLICY ADOPTION
The City’s investment policy shall be adopted by resolution of the City’s legislative authority. Per Government code, the policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.
XVIII. GUIDELINES
Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.
1. Investment Transactions: Every investment transaction must be authorized, documented and reviewed by the local agency Treasurer.
2. Pooled Cash: Whenever practical, local agency cash should be consolidated into one bank account and invested on a pooled concept basis. Interest earnings may be allocated to fund cash and investment balances.
3. Competitive Bids: Purchase and sale of securities should be made on the basis of competitive offers and bids when practical.
4. Cash Forecast: The cash flow for the local agency should be analyzed with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements.
5. Investment Limitations: Security purchases and holdings shall be maintained within statutory limits imposed by the Investment Policy and California Government code. Any investments not listed are not subject to % limitations.
Bankers’ Acceptance 40% Code Section 53601 (f)
Commercial Paper 25% Code Section 53601 (g)
Medium-Term Corporate Notes 30% Code Section 53601 (j)
Negotiable Cert. Of Deposit 30% Code Section 53601 (h)
6. Liquidity: The marketability of a security should be considered at the time of purchase as the security may have to be sold at a later date to meet unanticipated cash needs.
7. Long-Term Maturities: As a general rule, long-term maturities should not represent a significant percentage of the total portfolio, as the principal risk involved can outweigh the potential for higher earnings.
8. Authorized Broker/Dealers: Execute investment transactions with previously approved broker/dealers who have certified compliance with the City’s investment policy.
44 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 2025-2026
13 9. Diversification: The portfolio should consist of a mix of various types of securities, issuers and maturities.
10. Annual Review: The investment portfolio will be reviewed yearly by the Treasurer, City Manager and Finance department representative.
11. Evaluation of Certificates of Deposit: The following items will govern the valuation:
a. Time Certificates of Deposit (TCD) are FDIC insured. b. Negotiable Certificates of Deposit (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.
45 City of South Lake Tahoe, CA
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Fiscal Year 2025-2026
14 Attachment A:
The City's specific permitted investment guidelines are summarized below. It should be noted that the City's permitted investments are more restrictive than the State guidelines.
Percentages of investment allocation and investment maximum limits apply at the time of purchase. The designated portfolio manager may at his/her discretion temporarily exceed these guidelines when repositioning the portfolio. Should the manager recommend an extended departure from the diversification’s guideline (more than 90 days) City council approval will be required.
The Investment Policy sets forth minimum credit ratings for each type of permitted security.
These credit limits apply at the time of the initial purchase of the said security and a subsequent change in rating status does not necessarily force the sale or disposition of the investment. If the security is later downgraded below minimum required levels, the Treasurer and City staff will assess the risk exposure, make a decision on the course of action, and advise the City council.
PERMITTED INSTRUMENTS
CITY GUIDELINES
Certificates of Deposits 5 years / 25% max / $250,000 max per issuer Bankers Acceptances 180 days / 40% max / 5% per issuer/20% max per City Investment policy
Securities of the U.S. Government or its Agencies 5 years / no limit Commercial Paper 270 days / 25% max / 5% per issuer combined / highest letter and number rating by an NRSRO
Medium-Term Corporate Notes 5 years / 30% max / $2,000,000 combined any Issuer / max of 30% of portfolio / A rated or higher
Local Agency Investment Fund (State Pool) LAIF $75,000,000 / no limit Negotiable Certificates of Deposit 5 years / 30% max / lesser of 5% or $1,000,000 per issuer
Passbook Savings Account 10 days / investments under $100,000 Government Security Mutual Funds 20% max / 10% per issuer Money Market Mutual Funds 20% max per issuer
Bonds, Notes issued by:
California State and Local Agencies
5 years / 20% max / 5% per issuer
Bond Proceeds See section XII - number 11
U.S. Treasuries Notes and Bonds 5 years / no limit
Supranationals 5 years / 30% max / AA rated or better
Reverse Repurchase Agreements Not allowed
Mortgage Pass Through Securities Not allowed
Repurchase Agreements Not allowed
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15 GLOSSARY
AGENCIES: Federal agency securities.
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of South Lake Tahoe. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
ASKED: The price at which securities are offered.
BANKERS ACCEPTANCES (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.
BID: The price offered for securities. (When you are selling securities, you ask for a bid.) See offer.
BROKER: A broker brings buyers and sellers together for a commission.
CERTIFICATES OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CD’s are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipts is delivery of securities with an exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon national amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities.) 47 City of South Lake Tahoe, CA
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16 DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value (e.g., U.S. Treasury bills).
DIVERSIFICATION: Dividing investment funds among a variety of securities and issuers offering independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLB’s is to liquefy the housing related assets of its members who must purchase stock in their district bank.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL FUNDS: Non-interest bearing deposits held by member banks at the Federal Reserve, also used to denote immediately available funds in the clearing sense. Fed Funds also used to refer to these funds.
FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system. 48 City of South Lake Tahoe, CA
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17 GOVERNMENTAL NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHA mortgages. The term pass-throughs is often used to describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LAIF (Local Agency Investment Fund): A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $75,000,000 for any agency. The City is restricted to a maximum of fifteen transactions per month. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-quarter of one percent of the earnings. The interest rates are competitive with other securities because of pooling the State’s surplus cash with the surplus cash deposited. This creates a multi-billion-dollar money pool and allows diversified investments. In a high interest rate market, the City does better than LAIF, but in times of low interest rates, LAIF yields are higher. The City continually invests in the Local Agency Investment Fund.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MONEY MARKET FUNDS: Open-ended mutual fund that invests in highly liquid and safe securities (bills, commercial paper, bankers’ acceptances, CD’s, etc.) and pays money market rates of interest. The fund’s net asset value remains a constant $1 a share.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect.
Open market operations are the Federal Reserves most important and most flexible monetary policy tool.
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18 PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.
REPURCHASE AGREEMENTS (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security Abuyer@ in effect lends the Aseller@ money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is, increasing bank reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SEC RULE 15C3-l: See uniform net capital rule.
STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.
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19 SUPRANATIONALS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRARO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
TREASURY BILLS: A non-interest-bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BOND: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.
TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from 2 to 10 years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 51 CALIFORNIA
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52 City of South Lake Tahoe, CA
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2 Contents
I. POLICY ................................................................................................................................... 3 II. SCOPE .................................................................................................................................... 3 III. PRUDENCE ......................................................................................................................... 3 IV. OBJECTIVE ......................................................................................................................... 4 V. DELEGATION OF AUTHORITY ...................................................................................... 4 VI. ETHICS AND CONFLICT OF INTEREST ..................................................................... 5 VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS ................................ 5 VIII. AUTHORIZED AND SUITABLE INVESTMENTS .................................................... 6 IX. INVESTMENT POOLS/MUTUAL FUNDS ..................................................................... 6 X. COLLATERIZATION ......................................................................................................... 7 XI. SAFEKEEPING AND CUSTODY ..................................................................................... 7 XII. DIVERSIFICATION ......................................................................................................... 7 XIII. MAXIMUM MATURITIES .......................................................................................... 10 XIV. INTERNAL CONTROL ................................................................................................ 10 XV. PERFORMANCE STANDARDS ................................................................................... 10 XVI. REPORTING ................................................................................................................... 11 XVII. INVESTMENT POLICY ADOPTION ....................................................................... 12 XVIII. GUIDELINES............................................................................................................... 12 ATTACHMENT A: INVESTMENT GUIDELINES SUMMARY TABLE.……………….14 GLOSSARY............................................................................................................................. 1517 53 City of South Lake Tahoe, CA
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3 I. POLICY
This policy is intended to provide guidelines for the prudent investment of the City of South Lake Tahoe’s (City) funds and to enhance the economic status of the City while protecting its pooled cash. Funds will be invested in accordance with this policy and with applicable sections of the California Government Code.
II. SCOPE
This investment policy applies to all financial assets of the City which are available for investment by the City's Treasurer. These funds are accounted for in the City's Comprehensive Annual Financial Report and include:
• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Project Funds
• Enterprise Funds
• Internal Service Funds
• Fiduciary Funds
The following assets are exempt from the policy: proceeds of City bond issues, Hourly/ Part-time Employee Retirement Plan, Other Postemployment Benefits Plan, Pension Rate Stabilization Trust Fund and assets held by the City as fiduciary for other agencies and subject to separate agency agreement(s). The exempt assets are invested in accordance with regulations established by the State of California and any agreements specific to the funds.
III. PRUDENCE
The standard of prudence to be used for managing the City's investments shall be California Government Code Section 53600.3, the prudent investor standard, which states “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
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4 IV. OBJECTIVE
1. Safety: Safety of principal is the foremost objective of the investment program.
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions.
2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
3. Yield on Investments: The City’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.
V. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code 53607. Management responsibility for the investment program is hereby delegated to the City Treasurer who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the City Treasurer.
The City Manager shall designate an official to manage investments and designate a second official to perform investment management during absences of the primary designee.
The City Manager shall insure that competent investment management is maintained and shall insure that, if both designated investment officials are replaced or are simultaneously absent, any temporary replacement(s) shall be closely supervised, and indoctrinated in the requirements of this Statement of Investment Policy, and given written investment procedures, regulating the authority to invest in maturities beyond six months by means of appropriate controls and restraining requirements. The City Manager shall authorize preparation and filing of documents with all financial institutions with which the City conducts investment activities certifying the names of those persons authorized to effect trades on behalf of the City.
1. Investment Procedures: The City Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, SIFMA master repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority of persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.
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5 VI. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which would impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City.
All the City’s employees who are listed on the City’s Conflict of Interest Policy are required by the Fair Political Practices Commission to complete and file a Form 700 annually. All persons, broker/dealers, financial institutions and advisors providing investment services or bond issuance shall disclose to the Treasurer all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issue bonds.
VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
To promote the optimum yield on the investment of City funds, investment procedures shall be designed to encourage competitive bidding on transactions from approved financial institutions or broker/dealers.
1. The City Treasurer will maintain a list of financial institutions and broker/dealers authorized to provide investment services to the City who are authorized to provide investment services in the State of California. An eligible designation does not guarantee that the City will do business with the firm or institution;
1.1 Must certify that they have read and agree to comply with the investment policies of the City.
1.2 Must be a "primary" or regional dealer that qualifies under the Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule).
1.3 Must be experienced in institutional trading practices and familiar with the California Government Code as related to investments for local governmental agencies.
1.4 Must have been in business for at least three years.
1.5 Must provide current audited financial statements.
1.6 Must provide proof of Financial Industry Regulatory Authority certification.
2. All financial institutions in which the City's public funds are deposited will supply the Treasurer with the following;
2.1 Current audited financial statements.
2.2 Depository contracts.
2.3 Proof that the institution is State or Federally chartered. 56 City of South Lake Tahoe, CA
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6 VIII. AUTHORIZED AND SUITABLE INVESTMENTS
The City is empowered by statute to invest in the following types of securities: (see Section XII for a description of each investment type)
1. Certificates of Deposit (or Time Deposits) placed with commercial banks and or savings and loan institutions.
2. Bankers’ Acceptances.
3. Securities of the U.S. Government or its agencies.
4. Commercial Paper.
5. Medium-Term Corporate Notes.
6. Local Agency Investment Fund (State Pool) Demand Deposits, (LAIF).
7. Negotiable Certificates of Deposit.
8. Passbook Savings Account Demand Deposits.
9. Government Security Mutual Funds.
10. Money Market Mutual Funds.
11. Bonds, Notes or California State and Local Agencies.
12. Bond proceeds may be invested as authorized by California Government Code 53601(m) but may also be invested in authorized investments as outlined in bond covenants and agreements.
13. Notes, Bonds and other securities of all fifty United States.
14. Supranationals
Attachment A: Investment Guidelines Summary Table
Prohibited Investments: The following investments are either prohibited by law or authorized by law and prohibited by the City Treasurer. Under Provisions of California Code 53601.6 the City shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest-only strips derived from mortgage pools or any investment that may result in a zero-interest accrual if held to maturity. Also, the City shall not invest in Reverse Repurchased Agreements and Mortgage Pass Through Securities.
IX. INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/funds is required prior to investing, and on a quarterly basis. There shall be a questionnaire developed which will answer the following general questions:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of interest calculations and how it is distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced, and the program audited. • A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
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7 • A schedule for receiving statements and portfolio listings. • Are reserves, retained earnings, etc. utilized by the pool/fund? • A fee schedule, and when and how is it assessed.
• Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? X. COLLATERIZATION
Collateralization will be required on two types of investments: certificates of deposit and sweep checking accounts. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of market value of principal and accrued interest.
The City chooses to limit collateral to the following: certificates of deposit and sweep checking accounting held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.
Collateral for other investments must be 110% of principal for government securities. and 150% of principal for first mortgages.
XI. SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on a delivery-versus payment (DVP) basis. Securities will be held by a third-party custodian designated by the Treasurer and evidenced by safekeeping receipts.
XII. DIVERSIFICATION
The City will diversify its investments by security type and institution in order to reduce portfolio risk while maintaining market average market rates.
Security Type and Institution - U.S. Treasury securities and authorized pools, and any portfolio or institutional limits shall comply with California Government Code. Investments are further limited by specific language relating to each investment type as stated below.
Maximum Maturities - To the extent possible, the City Treasurer will attempt to match investments with anticipated cash flow requirements. The City's portfolio will be directly invested in securities with a maturity of no more than five years from the date of purchase.
The City Treasurer may invest in the following types of Investment Instruments:
1. Certificate of Deposit: Certificates of deposit of up to $250,000 are federally insured. 58 City of South Lake Tahoe, CA
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8 Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities.
Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 25 percent of the portfolio (GC 53601(i)). In addition, time deposits shall be placed in institutions meeting all capital requirements and which maintain a rating equivalent to FDIC rating of "One" or "Two" or a Sheshunoff performance rating of A or better.
2. Bankers’ Acceptances: The maximum investment with any one institution will not exceed $1.0 million. The maximum maturity will be 180 days. The maximum proportion of City funds invested in Bankers’ Acceptance shall not exceed 20% of the total City portfolio.
Maximum 5% invested per issuer. (Note: California Government Code allows a maximum of 40%).
3. Securities of the U.S. Government or its Agencies: Maximum maturity is five years.
4. Commercial Paper: Commercial paper will be used solely as a short-term investment not to exceed 270 days. Commercial paper will be of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statisticalrating organization. Maximum $2,000,000 combined any issuer, maximum 25% of City portfolio, highest letter and number rating by a Nationally Recognized Statistical Rating Organization (NRSRO).
5. Medium-Term Corporate Notes: The City may invest in medium-term corporate notes with a maximum of five years maturity issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
Notes shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service. The maximum proportion of City funds invested in Medium Term Corporate Notes shall be A rated or higher and shall not exceed 30% of the total City Portfolio.
6. Local Agency Investment Fund (State Pool): The investment with LAIF may not, by state regulation, exceed $75 million. LAIF transactions, by LAIF guidelines, are not to exceed 15 per month.
7. Negotiable Certificates of Deposit: The maximum maturity is five years. The maximum investment is 30% of the total City Portfolio. Maximum 5% or $1,000,000 invested per issuer. Negotiable Certificates of Deposits (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.
8. Passbook Savings Account Demand Deposits: This account shall be maintained solely for the following purposes:
a. Investment of amounts over $100,000.00 received too late in the day to invest in other instruments; or,
b. Investment of amounts under $100,000.00 for periods of up to ten working days in 59 City of South Lake Tahoe, CA
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9 order to fine-tune cash flow and minimize LAIF transactions in a given month.
9. Government Security Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53601, are permitted investments. Section 53601(l) further defines requirements. A maximum of 20 percent of the portfolio may be so invested.
10. Money Market Mutual Funds: Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Must receive the highest ranking or the highest letter and numerical rating by no less than two nationally recognized rating services. A maximum of 20 percent of the portfolio may be so invested.
11. Bonds, Notes or other evidence of indebtedness issue by the California State and Local Agencies: Bonds issued by the local agency, including bonds payable solely out of the revenues from revenue -producing property owned, controlled, or operated by California state or local agency, or by a department, board, agency, or authority of the local agency as authorized by California Government Code 53601 (a). Notes eligible for investment shall be rated in a category of “A” or its equivalent by two Nationally Recognized Rating Organizations.
Bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state, include bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. A maximum of 20% of the portfolio may be so invested.
12. Bond Proceeds: Section 53601 (m) allows greater flexibility with respect to the types of investments that may be made with bond proceeds. Specifically, the law permits money from bond proceeds, obligations under a lease, installment sales, or other agreements of a local agency to be invested in any security that meets the statutory provisions governing the issuance of the bond or other agreements made by the issuing agency. In doing so, this section of the code recognizes that outstanding contracts between issuers and bond holders may not comply with the investment statutes and gives local agencies greater discretion in how to invest bond proceeds.
13. U.S. Treasury Notes and Bonds: Registered Treasury notes or bonds of all 50 United States including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency or authority of the state as authorized by California Government Code 53601 (c) and (d). Maximum maturity is five years.
14. Supranationals: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States.
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10 Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
XIII. MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow and authorized by the City Council, the City will not directly invest in securities maturing more than five years from the date of purchase.
CD maturities will normally not exceed five years. U.S. Government or Agency securities will not exceed five years. At least 50% of idle funds can be placed in investments which can be liquidated for at least face value in the event of an emergency. The City uses LAIF and Money Market Funds for its idle funds to iensure this requirement is met.
XIV. INTERNAL CONTROL
The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures.
The Finance department shall establish a system of internal controls, which shall be documented in writing. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City. Controls deemed most important include; control of collusion, separation of duties, separating transition authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, written confirmation of telephone transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and ethical standards.
XV. PERFORMANCE STANDARDS
The investment portfolio will be designed to attain at least a market-average rate of return during budgetary and economic cycles. Whenever possible, and consistent with risk limitations as defined herein and prudent investment principles, the Treasurer shall seek returns in the range of the average rate of return of the 2-year CMT (Constant Maturity Treasury) whose maturity most closely matches the average maturity of the portfolio. In addition, the City portfolio will be compared with LAIF and the goal is to maintain a higher positive annual yield than LAIF’s 61 City of South Lake Tahoe, CA
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11 annual yield.
1. Investment Strategy: The City’s investment strategy is to buy and hold investments until maturity. However, the Treasurer may sell a security due to adverse changes in credit risk or due to unexpected cash flow needs.
2. Market Yield (Benchmark): The basis used by the Treasurer to determine whether market yields are being achieved shall be the rates of return from the following combination of indices: Local Agency Investment Fund (LAIF) and 3-month, 6-month, and 1-year Treasury Bills.
3. Review: The investment policy shall be reviewed at least annually by the City Manager and Finance Director and approved by the City Council to ensure its consistency with the overall objectives of safety (including diversification), liquidity and return, as well as its relevance to current law and financial/economic trends.
The City's philosophy prohibits speculation; i.e., the purchase of securities with the intent to profit from favorable changes in market prices or market conditions. Leveraging or borrowing money for the purpose of investing is specifically prohibited.
XVI. REPORTING
The City Treasurer shall provide investment information to City Council.
Periodic Reports – If any, the City Treasurer will provide a monthly transaction report of all investments including any pooled investment fund portfolio to the City Council, City Manager, Chief Financial Officer and City Clerk. Also, within thirty days of the end of each quarter a full report of the City's operational cash investment portfolio report will be provided with additional information such as market pricing. This report shall include the type of investment, issuer, date of maturity, par and dollar amount invested in all securities, investments and moneys held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund (LAIF), the report shall also include a current market value as of the date of the report and shall include the source of this same valuation.
Annual Report – This investment policy will be presented annually following the close of the fiscal year, to the City Council for approval.
Financial Statements per GASB #31 – City Treasurer will provide the portfolio’s market value gains/losses to Finance to be incorporated in the fiscal year-end balance sheet.
Financial Statements per GASB #40 – Effective June 30, 2005, additional disclosure is required. City Treasurer will provide detailed maturity and rating information to Finance to be 62 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 20245-20265
12 incorporated in the Annual Comprehensive Financial Report (ACFR).
XVII. INVESTMENT POLICY ADOPTION
The City’s investment policy shall be adopted by resolution of the City’s legislative authority. Per Government code, the policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council.
XVIII. GUIDELINES
Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.
1. Investment Transactions: Every investment transaction must be authorized, documented and reviewed by the local agency Treasurer.
2. Pooled Cash: Whenever practical, local agency cash should be consolidated into one bank account and invested on a pooled concept basis. Interest earnings may be allocated to fund cash and investment balances.
3. Competitive Bids: Purchase and sale of securities should be made on the basis of competitive offers and bids when practical.
4. Cash Forecast: The cash flow for the local agency should be analyzed with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements.
5. Investment Limitations: Security purchases and holdings shall be maintained within statutory limits imposed by the Investment Policy and California Government code. Any investments not listed are not subject to % limitations.
Bankers’ Acceptance 40% Code Section 53601 (f)
Commercial Paper 25% Code Section 53601 (g)
Medium-Term Corporate Notes 30% Code Section 53601 (j)
Negotiable Cert. Of Deposit 30% Code Section 53601 (h)
6. Liquidity: The marketability of a security should be considered at the time of purchase as the security may have to be sold at a later date to meet unanticipated cash needs.
7. Long-Term Maturities: As a general rule, long-term maturities should not represent a significant percentage of the total portfolio, as the principal risk involved can outweigh the potential for higher earnings.
8. Authorized Broker/Dealers: Execute investment transactions with previously approved broker/dealers who have certified compliance with the City’s investment policy. 63 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 20245-20265
13 9. Diversification: The portfolio should consist of a mix of various types of securities, issuers and maturities.
10. Annual Review: The investment portfolio will be reviewed yearly by the Treasurer, City Manager and Finance department representative.
11. Evaluation of Certificates of Deposit: The following items will govern the valuation:
a. Time Certificates of Deposit (TCD) are FDIC insured. b. Negotiable Certificates of Deposit (NCD) shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized notes.
64 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 20245-20265
14 Attachment A:
The City's specific permitted investment guidelines are summarized below. It should be noted that the City's permitted investments are more restrictive than the State guidelines.
Percentages of investment allocation and investment maximum limits apply at the time of purchase. The designated portfolio manager may at his/her discretion temporarily exceed these guidelines when repositioning the portfolio. Should the manager recommend an extended departure from the diversification’s guideline (more than 90 days) City council approval will be required.
The Investment Policy sets forth minimum credit ratings for each type of permitted security.
These credit limits apply at the time of the initial purchase of the said security and a subsequent change in rating status does not necessarily force the sale or disposition of the investment. In the event thatIf the security is later downgraded below minimum required levels, the Treasurer and City staff will assess the risk exposure, make a decision on the course of action, and advise the City council.
PERMITTED INSTRUMENTS
CITY GUIDELINES
Certificates of Deposits 5 years / 25% max / $250,000 max per issuer Bankers Acceptances 180 days / 40% max / 5% per issuer/20% max per City Investment policy
Securities of the U.S. Government or its Agencies 5 years / no limit Commercial Paper 270 days / 25% max / 5% per issuer combined / highest letter and number rating by an NRSRO
Medium-Term Corporate Notes 5 years / 30% max / $2,000,000 combined any Issuer / max of 30% of portfolio / A rated or higher
Local Agency Investment Fund (State Pool) LAIF $75,000,000 / no limit Negotiable Certificates of Deposit 5 years / 30% max / lesser of 5% or $1,000,000 per issuer
Passbook Savings Account 10 days / investments under $100,000 Government Security Mutual Funds 20% max / 10% per issuer Money Market Mutual Funds 20% max per issuer
Bonds, Notes issued by:
California State and Local Agencies
5 years / 20% max / 5% per issuer
Bond Proceeds See section XII - number 11
U.S. Treasuries Notes and Bonds 5 years / no limit
Supranationals 5 years / 30% max / AA rated or better
Reverse Repurchase Agreements Not allowed
Mortgage Pass Through Securities Not allowed
Repurchase Agreements Not allowed
65 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 20245-20265
15 GLOSSARY
AGENCIES: Federal agency securities.
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of South Lake Tahoe. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
ASKED: The price at which securities are offered.
BANKERS ACCEPTANCES (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.
BID: The price offered for securities. (When you are selling securities, you ask for a bid.) See offer.
BROKER: A broker brings buyers and sellers together for a commission.
CERTIFICATES OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CD’s are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipts is delivery of securities with an exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon national amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities.) 66 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 20245-20265
16 DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value (e.g., U.S. Treasury bills).
DIVERSIFICATION: Dividing investment funds among a variety of securities and issuers offering independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLB’s is to liquefy the housing related assets of its members who must purchase stock in their district bank.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL FUNDS: Non-interest bearing deposits held by member banks at the Federal Reserve, also used to denote immediately available funds in the clearing sense. Fed Funds also used to refer to these funds.
FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system. 67 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 20245-20265
17 GOVERNMENTAL NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHA mortgages. The term pass-throughs is often used to describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LAIF (Local Agency Investment Fund): A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $75,000,000 for any agency. The City is restricted to a maximum of fifteen transactions per month. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-quarter of one percent of the earnings. The interest rates are competitive with other securities because of pooling the State’s surplus cash with the surplus cash deposited. This creates a multi-billion-dollar money pool and allows diversified investments. In a high interest rate market, the City does better than LAIF, but in times of low interest rates, LAIF yields are higher. The City continually invests in the Local Agency Investment Fund.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MONEY MARKET FUNDS: Open-ended mutual fund that invests in highly liquid and safe securities (bills, commercial paper, bankers’ acceptances, CD’s, etc.) and pays money market rates of interest. The fund’s net asset value remains a constant $1 a share.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect.
Open market operations are the Federal Reserves most important and most flexible monetary policy tool.
68 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 20245-20265
18 PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.
REPURCHASE AGREEMENTS (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security Abuyer@ in effect lends the Aseller@ money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is, increasing bank reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SEC RULE 15C3-l: See uniform net capital rule.
STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.
69 City of South Lake Tahoe, CA
Investment Policy
Fiscal Year 20245-20265
19 SUPRANATIONALS: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRARO and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.
TREASURY BILLS: A non-interest-bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BOND: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.
TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from 2 to 10 years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 70 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 9,
2025
Agenda Item #:6
Agenda Item: Investment Portfolio Report - June 30, 2025 Executive Summary: In accordance with the City of South Lake Tahoe Financial Policies and State law, a quarterly investment report is hereby submitted to the members of the City Council. As of June 30, 2025, the City's total cash and investment balances across all funds is $149.3 million.
Requested Action / Suggested Motions: Receive and file.
Responsible Staff Member: Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report Investment Report June 2025.pdf
02-Operations Cash June 2025.pdf
03-Fiscal Agent 06 30 2025.pdf
04-Graph 06 30 2025.pdf
05-Cash June 2025.pdf
71 Council Agenda Report September 9, 2025 Page | 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 9, 2025
Title: Investment Portfolio Report as of June 30, 2025
Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431
Background: In accordance with the City of South Lake Tahoe Financial Policies and State law a quarterly investment report shall be submitted to the members of the City Council.
Issue and Discussion: The attached report for the period ending June 30, 2025, describes the type of investments, the issuers, the maturity dates, the par value and the market value. Total cash for operations and cash held by fiscal agents is $149,304,171.
Cash available for operations is $122,536,131. This includes Cash in Bank of $17,786,456 with the remaining amount in various investments diversified in accordance with the City’s adopted Investment Policy. The total portfolio yield is 4.09%. Based on this report the City of South Lake Tahoe will be able to meet projected operating expenditures for the next six months.
Cash held by fiscal agents for debt service is $26,768,040. These investments comprise the reserves and other accounts held in trust for debt service, lease financing, and capital projects financed with debt.
Fund Type Total Cash Balance Operations Balance Fiscal Agent Balance Trust and Agency $14,077,289 $7,854,527 $6,222,762
Special Revenue $29,664,727 $29,664,727 -
General Fund $33,947,257 $33,947,257 -
Internal Service $9,314,957 $9,314,957 -
Debt Service $25,156,471 $4,628,478 $20,527,993
Enterprise $4,255,482 $4,238,197 $17,285
CIP $32,887,988 $32,887,988 -
Grand Total $149,304,171 $122,536,131 $26,768,040
The attached documents include investment terms that are defined below:
• Current yield – The investments annual income (interest or dividends) divided by the current price of the security.
• Weighted par – Weighting the price of each bond by the total price of the entire portfolio. • Weighted yield – The current yield multiplied by the weighted par, provides the yield of the bonds in the portfolio.
Financial Implications: None.
Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies).
Policy Implications: Consistent with City’s Financial Policies. 72 73
74 CITY OF SOUTH LAKE TAHOE
OPERATIONS CASH INVESTMENT PORTFOLIO REPORT
AS OF JUNE 30, 2025
INVESTMENT TYPE ISSUER PAR VALUE
Local Agency Investment Fund State Treasurer 66,952,727$ 67,032,957$ 4.269% 54.6% 2.3% N/AFederal Farm Credit Banks US Government Agency 1,000,000$ 991,184$ 3.110% 0.8% 0.0% 4/13/2026 Federal Home Loan Bank US Government Agency 1,000,000 $ 972,292$ 1.000% 0.8% 0.0% 5/27/2026Federal Farm Credit Banks US Government Agency 1,000,000$ 966,004$ 1.500% 0.8% 0.0% 12/14/2026 Federal Home Loan Banks US Government Agency 1,000,000$ 985,626$ 3.000% 0.8% 0.0% 3/29/2027 Federal Home Loan Banks US Government Agency 1,000,000$ 998,481$ 4.100% 0.8% 0.0% 6/30/2027Federal Home Loan Banks US Government Agency 1,000,000$ 998,330$ 4.550% 0.8% 0.0% 2/10/2028Federal Home Loan Banks US Government Agency 1,000,000$ 997,729$ 4.550% 0.8% 0.0% 1/16/2029Federal Home Loan Banks US Government Agency 3,000,000$ 3,008,049$ 5.000% 2.4% 0.1% 2/20/2029Fed. Home Ln Mtg Corp US Government Agency 2,000,000$ 1,997,999$ 5.000% 1.6% 0.1% 7/24/2029 Federal Home Loan Banks US Government Agency 2,000,000$ 1,999,316$ 5.200% 1.6% 0.1% 7/30/2029Federal Home Loan Banks US Government Agency 790,698$ 790,727$ 5.000% 0.6% 0.0% 9/11/2029 Federal Home Loan Banks US Government Agency 4,000,000$ 3,990,998$ 5.000% 3.3% 0.2% 9/11/2029Federal Home Loan Banks US Government Agency 5,000,000$ 4,992,474$ 5.000% 4.1% 0.2% 1/9/2030Fed. National Mtg Association US Government Agency 5,000,000$ 5,005,078$ 5.000% 4.1% 0.2% 1/23/2030Fed. Home Ln Mtg Corp US Government Agency 5,000,000$ 5,010,756$ 5.000% 4.1% 0.2% 2/19/2030 Federal Home Loan Banks US Government Agency 3,000,000$ 3,003,912$ 4.850% 2.4% 0.1% 5/23/2030Certificate of Deposit Morgan Stanley Private Bk Natl 250,000$ 250,810$ 5.200% 0.2% 0.0% 12/5/2025Certificate of Deposit Morgan Stanley Bk N A 250,000$ 250,810$ 5.200% 0.2% 0.0% 12/5/2025 Certificate of Deposit Capital One Bank (USA) NA 250,000$ 247,544$ 3.150% 0.2% 0.0% 6/2/2026 Certificate of Deposit State Bank of India 250,000$ 246,776$ 3.300% 0.2% 0.0% 6/1/2027Cash in Bank General & Sweep 17,786,456$ 17,786,456$ 0% - 4.18% 7.91% 0.33% N/APetty Cash 6,250$ 6,250$ N/A 0.01% 0.00% N/A TOTAL 122,536,131$ 122,530,558$ 4.09% (Total Portfolio Yield) The Investment porfolio at June 30, 2025 is in compliance with the Investment Policy of the City of South Lake Tahoe. The City of South Lake Tahoe will be able to meet its projected expenditure requirements for the next six months. Valuation is based upon the State Treasurer's Office LAIF quarterly apportionment rates and US Bank Safekeeping.
WEIGHTED
PAR
WEIGHTED
MARKET VALUE CURRENT YIELD YIELD MATURITY DATE
751 of 1
CITY OF SOUTH LAKE TAHOE INVESTMENT REPORT
CASH AND INVESTMENTS HELD WITH FISCAL AGENTS
AS OF JUNE 30, 2025
BOND ISSUE CURRENT MATURITY
ACCOUNT INVESTMENT TYPE ISSUER COST VALUE MARKET VALUE YIELD DATE So Tahoe JPFA Lease Rev Bonds 2023 A Project Fund Dreyfus Gov Sec CM Inst 227 / U.S. Treasury Bill Dreyfus 20,123,151 20,123,151 4.10% N/A Principal Dreyfud Gov Sec MC Inst 227 Dreyfus 1 1 3.85% N/A Lease Revenue Fund Dreyfus Gov Sec CM Inst 227 Dreyfus 3,656 3,656 4.10% N/A Interest Dreyfud Gov Sec MC Inst 227 Dreyfus 4.15% N/A Cost of Issuance Account Dreyfus Gov Sec CM Inst 227 Dreyfus 31 31 4.09% N/A So Tahoe JPFA Ref Lease Rev Bonds 2016 A Lease Revenue Fund Blackrock Treasury Trust Bank of New York Mellon 72 72 4.17% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 182 182 4.16% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 2,492 2,492 4.16% N/A Reserve Assured Guaranty Municipal Bank of New York Mellon - 2 0.00% N/A So Tahoe JPFA Parking Rev Bonds 2013 Debt Service Account Blackrock Treasury Trust Bank of New York Mellon 17,285 17,285 0.00% N/ASo Tahoe JPFA Ref Rev Bonds 2014 A, 2015 A, 2017 A Revenue Fund Blackrock Treasury Trust Bank of New York Mellon 1,975 1,976 4.16% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 5,771 5,771 4.16% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 7,062 7,062 4.16% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 4,730 4,730 4.16% N/A So Tahoe JPFA (RPA 1) Reserve Blackrock Treasury Trust Bank of New York Mellon 5,567,741 5,567,741 4.16% N/ASuccessor Agency to the So Tahoe RDA, CFD 2001-1, Refdg Series 2015 Special Tax Blackrock Treasury Trust Bank of New York Mellon 267 267 4.16% N/A Interest Blackrock Treasury Trust Bank of New York Mellon 13,746 13,746 4.16% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 593 593 4.17% N/A Reserve Blackrock Treasury Trust Bank of New York Mellon 619,671 619,671 4.16% N/A Surplus Blackrock Treasury Trust Bank of New York Mellon 1,204 1,204 4.16% N/A City of South Lake Tahoe 2014 Pension Obligation Bonds Interest Blackrock Treasury Trust Bank of New York Mellon 5,540 5,540 4.16% N/A Principal Blackrock Treasury Trust Bank of New York Mellon 8 8 4.15% N/ACity of So Lake Tahoe 2012 COPS, Road Improvmt. Lease Payment Fund First American Govt Obligation Fund/Money Mkt US Bank 15,978 15,978 3.81% N/A Reserve Account First American Govt Obligation Fund/Money Mkt US Bank 376,881 376,881 3.81% N/A TOTAL 26,768,037 26,768,040
Valuation is based upon the valuations contained in the monthly statements provided by the trust departments of the fiscal agents. 76 LAIF
64%
Medium Term
Certificate of Dep
1%
Government Agency
35%
City of South Lake Tahoe
Operations Cash Investment Portfolio
Market Value as June 30, 2025
77 CITY OF SOUTH LAKE TAHOE
CASH REPORT
JUNE 30, 2025
FUND FUND NAME OPERATIONS CASH FISCAL AGENT TOTAL CASH TOTAL # BALANCE CASH BALANCE BALANCE OPERATIONS FISCAL AGENT CASH BALANCE 100 General Fund 32,957,973.63 $32,957,973.63
102 Measure S - Sales Tax 989,282.85 $989,282.85 $33,947,256 $0 $33,947,256 201 Gas Tax 2105 1,159,568.02 $1,159,568.02
207 Snow Removal 723,505.95 $723,505.95
208 Snow Removal - Equipment Replac 470,847.28 $470,847.28 210 Vehicle Replacement 170,866.92 $170,866.92
211 Police Vehicle Replacement (8,231.88) ($8,231.88)
213 Fire Vehicle Replacement 406,289.28 $406,289.28
215 Disaster Relief/Prep (203,600.96) ($203,600.96)
216 Transit Center 116,730.65 $116,730.65
217 Arts Program 55,165.12 $55,165.12
218 VHR Program 394,801.27 $394,801.27
220 Parks and Recreation 11,894,558.39 $11,894,558.39
221 Ice Arena 37,648.20 $37,648.20
222 Fire Safety Sales Tax 864,125.99 $864,125.99
223 Cannabis Program 992,078.85 $992,078.85
224 PEG Programming 312,176.21 $312,176.21
229 DUI/Traffic Safety Grant 4,713.74 $4,713.74
230 Local Law Enforcement 0.32 $0.32
231 AB3229 COPS 310,654.83 $310,654.83
232 Safety Sales Tax 408,104.50 $408,104.50
233 Forfeiture - State Fund 41,277.97 $41,277.97
235 Forfeiture - Justice Fund 66,043.18 $66,043.18
236 EMS - JPA 65,215.46 $65,215.46
237 Boat Patrol - Grant (16,121.07) ($16,121.07)
238 Domestic Violence (DVRT) Grant 42,021.86 $42,021.86 240 Solid Waste AB939 (35,896.18) ($35,896.18)
241 Clean Community 37,969.45 $37,969.45
242 Vehicle Abatement 226,688.78 $226,688.78
243 Nuisance Abatement 215,350.55 $215,350.55
244 Solid Waste JPA 1,069,506.74 $1,069,506.74
245 Storm Water Mgmt/Sweeping 344,777.51 $344,777.51
250 Hsng&ED - Work Force Housing 1,382,653.06 $1,382,653.06 251 Hsng & Ed - Home 1,286,710.43 $1,286,710.43
252 Hsng & Ed - CDBG 130,141.12 $130,141.12
253 Hsng & Ed - Administration 426,716.86 $426,716.86
255 CDBG Program Income Loans 157,532.53 $157,532.53
256 CDBG Economic Development (135,215.04) ($135,215.04) 258 Calhome Loan Repayments 141,960.36 $141,960.36
262 RDA Low Income Housing Fund 291,067.18 $291,067.18
263 TOT Revenue Fund 1,939,811.25 $1,939,811.25
270 General Plan/Community Plan 561,861.49 $561,861.49
271 Building Permit Fees 2,005,732.97 $2,005,732.97
280 Ski Run Business Improvement 9,756.87 $9,756.87
281 Measure S Maintenance Fund 70,335.30 $70,335.30
284 Measure S City Maintenance 409,020.32 $409,020.32
285 Tourism Improvement District (TID) 228,032.20 $228,032.20 290 Settlement Proceeds Sfty Programs 591,772.88 $591,772.88 $29,664,727 $0 $29,664,727 301 City CIP 31,793,532.92 $31,793,532.92
303 City CIP - Reg.Surf.Transp.Progr 213,563.87 $213,563.87 306 Rehab Water Quality Projects 2,746.00 $2,746.00
310 Long term Capital Replacement 185,274.08 $185,274.08 311 Campground Capital Outlay 397,812.61 $397,812.61
320 Housing - CIP Projects 295,058.89 $295,058.89 $32,887,988 $0 $32,887,988 401 City Debt Service 4,628,478.35 20,527,993.32 $25,156,471.67 $4,628,478 $20,527,993 $25,156,472 501 Airport 1,696,451.61 $1,696,451.61
510 Parking Management Bellamy 334,340.21 $334,340.21
515 Parking Management Plan 20,263.63 $20,263.63
520 Parking Garage 1,581,038.72 17,285.32 $1,598,324.04 550 Transit - Stage 606,102.26 $606,102.26 $4,238,196 $17,285 $4,255,482 601 Self Insurance - Health, Vision, Den 163,844.41 $163,844.41 602 Self Insurance - Workers Comp 8,332,697.15 $8,332,697.15 604 Payroll 781,168.89 $781,168.89
605 Health Insurance Savings 37,246.72 $37,246.72 $9,314,957 $0 $9,314,957 701 Trust 917.00 $917.00
704 Athletic Facilities - Parks & Rec 20,000.00 $20,000.00 707 Park Avenue CFD Fund 1,340,055.32 635,481.05 $1,975,536.37 711 Bijou ECP CFD 169,723.05 $169,723.05
712 Harrison Avenue CFD 269,988.81 $269,988.81
725 RD Obligation Retirement Fund 6,045,855.00 5,587,280.39 $11,633,135.39 751 Special Assessment District 4,572.00 $4,572.00
762 Tahoe Transportation Authority 3,416.00 $3,416.00 $7,854,527 $6,222,761 $14,077,289 Total Cash and Investments $122,536,130.69 $26,768,040.08 $149,304,170.77 $122,536,131 $26,768,040 $149,304,171
SUBTOTAL BY CATEGORY
78 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 9,
2025
Agenda Item #:7
Agenda Item: Agreement with Freemotion Fitness, Inc. for Purchase and Installation of Exercise Equipment for New Multigenerational Recreation and Aquatic Center Executive Summary: On March 25, 2025, City Council approved $1,470,531 towards the procurement of furniture, fixtures and equipment (FF&E) for the new Recreation & Aquatics Center. The new Recreation & Aquatics Center will have an exercise room that requires furnishing the space with workout equipment. Staff worked with Freemotion to identify a variety of exercise equipment options that will serve the needs of multigenerational patrons. Freemotion provided staff with a quote for $120,021.47 for the purchase, delivery and installation of the equipment needed to furnish the exercise room.
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the Professional Services Agreement with Freemotion FItness, Inc. in the amount of $120,021.47 for the purchase, delivery and installation of the exercise equipment for the new Multigenerational Recreation and Aquatic Center.
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-Freemotion Equipment Purchase for for Rec Center.docx 02-Agreement with Freemotion 8.25.25.docx
03-Freemotion Quote.pdf
04-Agreement-Freemotion-and-CCOG-Master-2021.09.01-Executed.pdf 79 City Council Agenda Report September 9, 2025 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 9, 2025
Title: Approval of Professional Services Agreement with Freemotion Fitness to Purchase and Install Exercise Equipment at the New Rec Center
Location: Citywide
Responsible Staff Member: John Stark, Director of Parks & Recreation Background: On March 25, 2025, City Council approved $1,470,531 towards the procurement of furniture, fixtures and equipment (FF&E) for the new Recreation & Aquatics Center. The new Recreation & Aquatics Center will have an exercise room that requires furnishing the space with workout equipment. Staff worked with Freemotion to identify a variety of exercise equipment options that will serve the needs of multigenerational patrons. Freemotion provided staff with a quote for $120,021.47 for the purchase, delivery and installation of the equipment needed to furnish the exercise room.
Issue and Discussion: Freemotion holds a cooperative agreement with Equalis Group numbered #COG-2120A for this exercise equipment that allows public sector entities to utilize their master agreement to procure this equipment.
Freemotion will provide the equipment, delivery and installation.
Financial Implications: The total cost of the equipment, delivery and installation is not to exceed $120,021.47, as outlined in the attached Professional Service Agreement. The project will be funded from the New Rec Center FF&E Account 301-70023.
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: This action is consistent with the 2025-2030 Strategic Plan Strategic Priority 7.1 complete the new Recreation and Swim Complex and maintain the current complex in the meantime and 7.7 Continue to improve access for people of all abilities to all public spaces. 80 ACITY OF SOUTH LAKE TAHOE
PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of the 9 day of September 2025 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and Freemotion Fitness (“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 provide equipment and, where applicable, 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 reasonable investigation and research regarding the conditions affecting the work to be done and labor and materials needed, and that its decision to execute this Contract is based on such independent investigation and research.
All services provided by Consultant pursuant to this Agreement will be provided in accordance with the terms set forth in the Exhibit A, “Scope of Services,” attached hereto and incorporated herein by reference. Exhibit B, “Compensation Schedule,” attached hereto and incorporated herein by reference, outlines the fees and compensation which shall be paid pursuant to this Agreement.
2. Term/Time of Performance. The services by Consultant are to commence upon the execution of the Agreement and continue for one year. 81 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 $120,021.47 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. Prevailing Wages Required. Pursuant to the provisions of California Labor Code, Sections 1770 to 1780, inclusive thereof, 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. Consultant must comply with all applicable requirements set forth in Division 2, Part 7, Chapter 1. Attention is specifically directed to the following sections of the California Labor Code: Prevailing Wage Requirements (§§ 1771.5 and 1776); Apprentices (§1777.5); Working Hours (§§1810 to 1815); Workers’ Compensation (§ 1860); and Protection of Workers in Trench Excavations (§§ 6705 and 6707). In accordance with Labor Code section 1771.5, that the Project is subject to monitoring and enforcement by the Department of Industrial Relations pursuant to 8 Cal. Code Reg. §§16450 through 16464, including the obligation to furnish certified payroll records directly to the Division of Labor Standards Enforcement’s Compliance Monitoring Unit (CMU), using the CMU’s electronic certified payroll reporting (eCPR) system.
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 public works contract as required by Labor Code Section 1774. These rate determinations are found on the State of California 82 Department of Industrial Relations' website at:
http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm. Pursuant to the provisions of California Labor Code Section 1813, Consultant or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit twenty-five dollars ($25) for each worker employed in the execution of the Agreement by the respective Consultant or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the execution of the contract and shall report them to the Division of Labor Standards Enforcement.
5. Method of Payment. Consultant shall submit billings to City in accordance with this Agreement. City shall pay Consultant no later than 30 days after approval of the monthly invoice by City staff.
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 and equipment provided 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.
83 8. Ownership of Documents.
All plans, studies, documents and other writings, including working notes and internal documents, prepared by Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, that is intended for the City, shall become the property of City upon payment to Consultant for such work, and City shall have the right to use such materials in its discretion without further compensation to Consultant or to any other party.
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 84 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 the real property covered by this Agreement and shall not acquire any direct or indirect interest in the real property. 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 not serve in a staff capacity and will conduct research and arrive at conclusions with respect to their 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,
85 b. Possesses no authority with respect to any city decision beyond rendition of information, advice, recommendation or counsel. [FPPC Reg. 18700.3(a)].
12. Performance Standards. Consultant shall perform its obligations under this Agreement in accordance with applicable legal requirements and industry standards.
13. Compliance with Laws. Consultant shall comply with all applicable federal, state, regional and local laws, codes, ordinances and regulations in carrying out their 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 applicable 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. If Consultant will be physically present in the City of South Lake Tahoe to perform some or all of the services, 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.
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, 86 damages and injuries, direct or indirect (including any and all costs and expenses in connection therein), arising out of 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 or breach of this Agreement by the City.
15. Insurance Requirements.
a. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies.
i. Workers’ Compensation Coverage. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for their 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 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 87 be performed under this Agreement or the general
aggregate limit shall be at least twice the required
occurrence limit. An endorsement providing completed
operations coverage for the City, ISO form CG 20 37 (or equivalent) is also required.
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.
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 88 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. 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. Deductibles and Self-Insured Retentions. The Consultant shall be responsible for all deductibles in all of Consultant’s insurance policies. The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.
c. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Consultant shall not commence work under this contract until all insurance required under this section has been approved by City as to form, amount and carrier, nor shall Consultant allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.
16. Notices. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below.
Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.
If to City: City of South Lake Tahoe
89 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: Jackie Trammell, Freemotion Territory Manager 1500 South 1000 West, Logan UT 84321
17. Assignment. Assignment of any rights, duties or obligations under this Agreement will be permitted only with the express written consent of City. If Consultant subcontracts equipment installation, Consultant shall remain fully responsible to City for all acts or omissions of the subcontractor.
18. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.
19. Dispute Resolution. Any dispute concerning this Agreement will be first submitted to the City Manager or his designee for resolution. If no resolution is reached, such dispute shall be submitted to the City Council. The decision of the City Council shall be final and shall be appealable only to the El Dorado Superior Court pursuant to California Code of Civil Procedure §1094.5, and as provided by law.
20. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in the Superior Courts in the County of El Dorado, South Lake Tahoe Division.
21. Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any Consultant or person, other than the independent contractors hired in accordance with Consultant’s standard business practice, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid, nor has it agreed to pay any Consultant or person, other than a bona fide employee working solely for Consultant or an independent contractor hired as discussed above, any fee, commission, percentage, brokerage fee, 90 gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
22. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee, or applicant for employment because of ancestry, age, color, disability, genetic information, gender expression, gender identity, marital status, medical condition, military or veteran status, national origin, race, religion, reproductive health decision making, sex/gender, or sexual orientation. 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.
23. 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.
24. 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.
25. 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.
26. 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.
91 27. 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.
28. 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.
29. 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.
30. Time is of the Essence. Time is of the essence for this Agreement.
31. Authority. 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.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
CITY OF SOUTH LAKE TAHOE: FREEMOTION FITNESS:
By___________________________ By ________________________________ City Manager Jackie Trammell, Freemotion Territory Manager Date __________________________ Date _____________________________ Business License # ___________________
92 APPROVED AS TO FORM:
By____________________________ Date ________________________________ City Attorney
ATTEST:
By______________________________ Date ________________________________ City Clerk
Attachments:
Exhibit A – Scope of Services
Exhibit B – Compensation Schedule
Exhibit C - Anti-Lobbying Certification
93 EXHIBIT A
SCOPE OF SERVICES
Freemotion will provide and install the following pieces of exercise equipment in the new Recreation & Aquatics Center:
2 Freemotion b22.7 CoachBikes with 22 inch HD Touchscreen w/ Warranty Extension 3-year parts and labor
1 Freemotion e22.9 Total Body Elliptical 22 in HD Touchscreen w/ Warranty Extension 3-year parts and labor
2 Freemotion i22.9 Incline Trainer 22 in HD Touchscreen w/ Warranty Extension 3-year parts and labor
1 Freemotion i22.9 Recumbent Bike 22 in HD Touchscreen w/Warranty Extension 3-year parts and labor
3 Freemotion Free Weights Adjustable Bench
1 Freemotion Free Weights Preacher Curl
1 Freemotion Free Weights 45 Degree Back Extension
1 Freemotion Free Weights Dip Chin/Ab Frame
1 Freemotion Free Weights Smith Machine
1 Freemotion Free Weights Abdominal Bench
2 Freemotion Racks Twin Tier Dumbbell Rack
1 Freemotion EPIC Selectorized Leg Extension
1 Freemotion EPIC Selectorized Leg Extension
1 Freemotion EPIC Selectorized Leg Curl
1 Freemotion EPIC Selectorized Leg Press
1 Freemotion EPIC Selectorized Hip Adduction/Abduction 1 Freemotion EPIC Selectorized Dip/Chin Assist
1 Freemotion GENESIS DS Chest/Shoulder
1 Freemotion Genesis DS Abdominal Biceps
1 Freemotion Genesis DS Quad/Hamstring
1 Freemotion Genesis DS Lift/Step
1 Freemotion Genesis DS Multi Pull Press
1 Freemotion Genesis Dual Cable Cross
1 Freemotion Genesis DCC Accessory Holder
1 Freemotion Racks Pro Half Rack
1 Freemotion Free Weights Glute Ham Developer
1 Freemotion FitRig 6 ft Monkey Bar Rig
1 Freemotion FitRig Attachments Dip Station
1 Freemotion FitRig Attachments Landmine Basic
94 1 Freemotion FitRig Attachments Ball Target
1 Freemotion FitRig Attachments D Handle
2 Freemotion FitRig Attachments Plate Storage Peg Fixed 1 Freemotion FitRig Attachments Single Bar Frame Storage 1 Freemotion Attachments Plyo Step
1 Freemotion FitRig Attachments Dumbbell Storage Tray 1 Freemotion FitRig Attachments Kettlebell Storage Tray 1 Freemotion FitRig Attachments Ball Storage Tray
1 Freemotion FitRig Attachments Shackle w/Threaded Connecting Link 1 XP Urethane Dumbbell 5-50 lbs set (10 Pairs)
1 XP Urethane Dumbbell Set 55 – 100 lbs (10 Pairs)
1 Freemotion EPIC Plate Loaded Rear Kick
1 Concept2 Rower Model D
1 Concept2 SkiErg
95 EXHIBIT B
SCHEDULE OF CHARGES AND TIMELINE
BUDGET
Estimated fees (not to exceed) $92,208.00
Tax: $8,692.43
Install: $7,134.00
Freight: $11,987.04
TOTAL (not to exceed) $120,021.47
TIMELINE
Full payment upon delivery and installation.
Delivery & installation following issuance of Temporary Occupancy Permit (Date to be Determined in January or February 2026)
96 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:
Jackie Trammell, Freemotion Territory Manager
By:________________________________________
97 QUOTE
RemitTo Contact Territory Manager
Freemotion Fitness
PO Box 7410479
Chicago, IL 60674-0479
United States
Amanda Peterson
PH: (435) 786-5888
[email protected]
Jackie Trammell
PH: (206) 746-8316
[email protected]
SoldTo ShipTo BillTo
CITY OF SO LAKE TAHOE
ATTN: John Stark
1180 Rufus Allen Blvd.
S Lake Tahoe, CA, 96150
USA
CITY OF SO LAKE TAHOE
Attn: John Stark
1180 Rufus Allen Blvd.
S Lake Tahoe, CA 96150
USA
PH:
[email protected]
CITY OF SO LAKE TAHOE
1180 Rufus Allen Blvd.
S Lake Tahoe, CA 96150
USA
Quote #
Q-43261
Customer #
Quote Created
4/11/2025
Quote Expires
9/26/2025
Quote Terms*
Commercial
Qty Model # Description List Price Unit Price Ext. Price 2 FMEX84821 Freemotion b22.7 CoachBike™_ 22 in HD
Touchscreen_iFit_120/220V
USD 8,499.00 USD 4,610.00 USD 9,220.00
2 UTCOMEB4002 Freemotion Warranty Extension_Bike 3yr
Parts & Labor
USD 399.00 USD 0.00 USD 0.00
1 FMEL84420 Freemotion e22.9 Total Body Elliptical_22 in HD Touchscreen.
USD 10,849.00 USD 0.00 USD 0.00
1 UTCOMEB5002 Freemotion Warranty Extension_e22.9 3yr
Parts & Labor
USD 499.00 USD 0.00 USD 0.00
2 FMTK74819M1-30 Freemotion i22.9 Incline Trainer_22 in HD Touchscreen_iFit.,_110V_Imperial,; Flat
Black Frame
USD 13,999.00 USD 7,830.00 USD 15,660.00
2 UTCOMIT6002 Freemotion Warranty Extension_i22.9 3yr
Parts & Labor
USD 999.00 USD 0.00 USD 0.00
1 FMEX82520 Freemotion r22.9 Recumbent Bike_22 in HD
Touchscreen_iFit.
USD 8,399.00 USD 0.00 USD 0.00
1 UTCOMEB4002 Freemotion Warranty Extension_r22.9 3yr
Parts & Labor
USD 399.00 USD 0.00 USD 0.00
3 EF203-03 Freemotion Free Weights_Adjustable Bench;
Black River Frame, Black Upholstery
USD 1,599.00 USD 0.00 USD 0.00
1 EF205-03 Freemotion Free Weights_Preacher Curl;
Black River Frame, Black Upholstery
USD 1,499.00 USD 0.00 USD 0.00
1 EF206-03 Freemotion Free Weights_45° Back
Extension; Black River Frame, Black
Upholstery
USD 1,599.00 USD 0.00 USD 0.00
1 EF207-03 Freemotion Free Weights_Dip Chin/Ab; Black
River Frame, Black Upholstery
USD 3,199.00 USD 1,330.00 USD 1,330.00
1 EF211A-03 Freemotion Free Weights_Smith Machine;
Black River Frame
USD 6,299.00 USD 2,985.00 USD 2,985.00
• Quote valid until date listed above. Please sign and return to the contact listed above to place your order. • The Freemotion Cable Cross, Chest & Shoulder are ADA compliant/wheelchair accessible. A maximum tax credit of $5,000 per year may be applicable. Reference Section 44 of the IRS tax code. 98 Qty Model # Description List Price Unit Price Ext. Price 1 EF213-03 Freemotion Free Weights_Abdominal Bench;
Black River Frame, Black Upholstery
USD 1,899.00 USD 0.00 USD 0.00
2 EF209-03 Freemotion Racks_Twin Tier Dumbbell Rack;
Black River Frame
USD 1,799.00 USD 0.00 USD 0.00
1 EF210-03 Freemotion Racks_Barbell Rack; Black River
Frame
USD 1,499.00 USD 0.00 USD 0.00
1 ES801-03 Freemotion EPIC Selectorized_Leg
Extension; Black River Frame, Black
Upholstery
USD 5,799.00 USD 2,990.00 USD 2,990.00
1 ES803-03 Freemotion EPIC Selectorized_Leg Curl;
Black River Frame, Black Upholstery
USD 5,999.00 USD 2,840.00 USD 2,840.00
1 ES804-03 Freemotion EPIC Selectorized_Leg Press;
Black River Frame, Black Upholstery
USD 8,799.00 USD 4,835.00 USD 4,835.00
1 ES809-03 Freemotion EPIC Selectorized_Hip
Adduction / Hip Abduction; Black River
Frame, Black Upholstery
USD 6,399.00 USD 3,400.00 USD 3,400.00
1 ES812-03 Freemotion EPIC Selectorized_Dip/Chin
Assist; Black River Frame
USD 6,999.00 USD 3,400.00 USD 3,400.00
1 GD500-03 Freemotion GENESIS DS_Chest / Shoulder;
Black River Frame
USD 6,799.00 USD 3,070.00 USD 3,070.00
1 GD501-03 Freemotion GENESIS DS_Abdominal /
Biceps; Black River Frame
USD 7,799.00 USD 3,180.00 USD 3,180.00
1 GD502-03 Freemotion GENESIS DS_Lat Pulldown /
High Row; Black River Frame
USD 7,999.00 USD 3,280.00 USD 3,280.00
1 GD503-03 Freemotion GENESIS DS_Quad / Hamstring;
Black River Frame
USD 6,299.00 USD 3,080.00 USD 3,080.00
1 GD504-03 Freemotion GENESIS DS_Lift / Step; Black
River Frame
USD 6,999.00 USD 3,560.00 USD 3,560.00
1 GD505-03 Freemotion GENESIS DS_Multi-Pull Press;
Black River Frame
USD 6,799.00 USD 3,110.00 USD 3,110.00
1 G624-03 Freemotion GENESIS_Dual Cable Cross;
Black River Frame
USD 9,499.00 USD 4,870.00 USD 4,870.00
1 G24AH Freeemotion_GENESIS_DCC Accessory
Holder
USD 239.00 USD 0.00 USD 0.00
1 FMDY704003-03 Freemotion Racks_Pro Half Rack; Black
River Frame
USD 6,299.00 USD 3,065.00 USD 3,065.00
1 FMDY709072-03 Freemotion Free Weights_Glute-Ham
Developer; Black River Frame
USD 3,799.00 USD 1,890.00 USD 1,890.00
1 FMDY6MBR-03 Freemotion FitRig_6-ft / 1.8 m Monkey Bar Rig; Black River Frame
USD 6,999.00 USD 3,060.00 USD 3,060.00
1 FMFR85020 Freemotion FitRig Attachments_Dip Station USD 599.00 USD 202.00 USD 202.00 1 FMFR86620 Freemotion FitRig Attachments_Landmine -
Basic
USD 249.00 USD 82.00 USD 82.00
1 FMFR86220 Freemotion FitRig Attachments_Ball Target
w/ Logo (22 in / 55.8 cm)
USD 699.00 USD 153.00 USD 153.00
1 FMFR85520 Freemotion FitRig Attachments_D-Handle USD 199.00 USD 69.00 USD 69.00 2 FMFR85320 Freemotion FitRig Attachments_Plate
Storage Peg - Fixed
USD 199.00 USD 80.00 USD 160.00
1 FMFR86120 Freemotion FitRig Attachments_Single Bar
Frame Storage
USD 199.00 USD 80.00 USD 80.00
1 FMFR85920 Freemotion FitRig Attachments_Plyo Step USD 799.00 USD 213.00 USD 213.00 • Quote valid until date listed above. Please sign and return to the contact listed above to place your order. • The Freemotion Cable Cross, Chest & Shoulder are ADA compliant/wheelchair accessible. A maximum tax credit of $5,000 per year may be applicable. Reference Section 44 of the IRS tax code. 99 Qty Model # Description List Price Unit Price Ext. Price 1 FMFR85620 Freemotion FitRig Attachments_Dumbbell
Storage Tray (6 ft / 1.8 m)
USD 699.00 USD 230.00 USD 230.00
1 FMFR85820 Freemotion FitRig Attachments_Kettlebell
Storage Tray (6 ft / 1.8 m)
USD 899.00 USD 241.00 USD 241.00
1 FMFR85420 Freemotion FitRig Attachments_Ball Storage
Tray (6 ft / 1.8 m)
USD 549.00 USD 142.00 USD 142.00
1 FMFR86020 Freemotion FitRig Attachments_Shackle w/
Threaded Connecting Link
USD 249.00 USD 106.00 USD 106.00
1 ZXP-DBPU-1762-G XP Urethane Dumbbell 5-50lbs Set (10 Pairs - 550lbs)
USD 1,975.00 USD 1,975.00 USD 1,975.00
1 ZXP-DBPU-1763-G XP Urethane Dumbbell 55-100lbs Set (10 Pairs - 1,550lbs)
USD 5,450.00 USD 5,450.00 USD 5,450.00
1 EF309-33 Freemotion EPIC Plate Loaded_Rear Kick;
Textured Black Frame, Black Upholstery
USD 2,999.00 USD 2,050.00 USD 2,050.00
1 PB-2004-MD-BLK Concept2 Rower, Model D, Black USD 1,500.00 USD 1,200.00 USD 1,200.00 1 PB-2009-01 Concept2 SkiErg USD 1,300.00 USD 1,030.00 USD 1,030.00 Subtotal: USD 92,208.00
Tax: USD 8,692.43
Install: USD 7,134.00
Freight: USD 11,987.04
Total Units: 40
Total: USD 120,021.47
Notes/Other Info:
Payment will be made upon completion of install.
• Quote valid until date listed above. Please sign and return to the contact listed above to place your order. • The Freemotion Cable Cross, Chest & Shoulder are ADA compliant/wheelchair accessible. A maximum tax credit of $5,000 per year may be applicable. Reference Section 44 of the IRS tax code. 100
Equalis Contract COG-2120A.
Model # Color Type Color
FMTK74819 Frame Color Flat Black
EF203 Frame Color Black River
EF203 Upholstery Color Black
EF205 Frame Color Black River
EF205 Upholstery Color Black
EF206 Frame Color Black River
EF206 Upholstery Color Black
EF207 Frame Color Black River
EF207 Upholstery Color Black
EF211 Frame Color Black River
EF213 Frame Color Black River
EF213 Upholstery Color Black
EF209 Frame Color Black River
EF210 Frame Color Black River
ES801 Frame Color Black River
ES801 Upholstery Color Black
ES803 Frame Color Black River
ES803 Upholstery Color Black
ES804 Frame Color Black River
ES804 Upholstery Color Black
ES809 Frame Color Black River
ES809 Upholstery Color Black
ES812 Frame Color Black River
GD500 Frame Color Black River
GD500 Upholstery Color Black
GD501 Frame Color Black River
GD501 Upholstery Color Black
GD502 Frame Color Black River
GD502 Upholstery Color Black
GD503 Frame Color Black River
GD504 Frame Color Black River
GD505 Frame Color Black River
GD505 Upholstery Color Black
G624 Frame Color Black River
FMDY704003 Frame Color Black River
FMDY709072 Frame Color Black River
FMDY709072 Upholstery Color Black
FMDY6MBR Frame Color Black River
• Quote valid until date listed above. Please sign and return to the contact listed above to place your order. • The Freemotion Cable Cross, Chest & Shoulder are ADA compliant/wheelchair accessible. A maximum tax credit of $5,000 per year may be applicable. Reference Section 44 of the IRS tax code. 101
Quote # Q-43261 Quote Total USD 120,021.47
Signature:
{{Sig_es_:signer:signature}}
Date:
{{Date_es_:signer:date}}
Your signature indicates that the EQUIPMENT, COLOR and ADDRESS information on this quote are correct. Please sign and return all pages to the contact listed above to place your order.
Thank you for your purchase of Freemotion equipment. If you have elected to pay any portion of this order with a credit card, your signature on this document will authorize your card to be charged as per our credit card terms and conditions. Charges will appear under the name 'ICON AR' on your credit card statement.
Net 30 day terms on approved credit for customers without prior existing terms. • Quote valid until date listed above. Please sign and return to the contact listed above to place your order. • The Freemotion Cable Cross, Chest & Shoulder are ADA compliant/wheelchair accessible. A maximum tax credit of $5,000 per year may be applicable. Reference Section 44 of the IRS tax code. 102
FREEMOTION FITNESS TERMS AND CONDITIONS
The goods listed on the face of this Customer Order have been sold to you ("Buyer") subject to the terms and conditions set forth herein, all of which you agree to by your acceptance of such goods. Additionally, all future orders placed by FreeMotion Fitness ("FMF") will be accepted only on the following terms and conditions, all of which you, as Buyer, accept and agree to by the placement of such orders. 1) Prior Written Contract. To the extent that these terms and conditions are covered by a prior written contract signed by FMF and Buyer, the terms and conditions in that contract are intended to govern, excepting terms of payment, which shall be governed by the installment sale provisions on the face of the Customer Order. To the extent that the order being supplied by this invoice is not expressly covered by a prior written contract, this invoice contains all of the terms and conditions with respect to the sale and purchase of the goods named herein. If any of the provisions of the Buyer's purchase order or other unsigned writings are in conflict with the terms and conditions of this invoice, the terms and conditions of this invoice shall govern. 2) Buyer's Duty to Inspect and Claims for Loss or Damage in Shipping. Buyer must immediately inspect all goods for shortages, conformity with order and defects. All goods claimed to be defective shall be held for inspection by FMF. Claims for shortage or deductions for erroneous charges must be presented within fifteen (15) days after receipt of the goods or they will be disallowed. No goods will be taken back and credited or replaced unless authorization for return has been given by FMF's Customer Service Department. Claims for goods damaged in shipment must be made directly with the carrier. 3) Acceptance of Goods and Returns. Buyer shall be deemed to have accepted all goods covered by this invoice if Buyer fails to reject and return the goods within fifteen (15) days of the receipt of goods. If Buyer chooses to reject any of the goods covered by this invoice, for whatever reason, Buyer must first notify FMF. No returns will be accepted after (15) days from receipt of goods or received by FMF over thirty (30) days after initial delivery to buyer. Buyer agrees to pay FMF (a) restocking fee of 20% of the sales price of the returned items, and (b) all shipping charges, including return shipping costs. 4) Deliveries. The acceptance of shipment by the Buyer when the goods are delivered by a common carrier, licensed public Driver, Buyer's own or leased carrier, or by FMF's own or leased carrier shall constitute a delivery.
(a) In the instance of goods held subject to the Buyer's instruction, or for which the Buyer has failed to supply shipping instructions, or in any case where FMF, in its sole discretion, determines that any part of the goods purchased by the Buyer should be held for Buyer's account, FMF may invoice the goods and Buyer agrees to make payment at the maturity of the invoice so rendered. Goods invoiced and held at any location for whatever reason shall be at Buyer's risk and FMF may charge for insurance and storage at prevailing rates. (b) No freight, express or delivery charges shall be subject to discount. (c) Delivery of a quantity which does not vary more than ten percent (10%) greater or less than the quantity ordered shall constitute compliance under the Customer's Purchase Order. (d) Partial delivery shall be accepted by the Buyer and paid at contract terms and prices. All sample requirements furnished on this order shall be charged for by FMF and paid for by the Buyer. Delay in delivering samples or other sample requirements shall not constitute a breach of this invoice. Delivery or tender of delivery of any installment within fifteen (15) days after the time specified therefore shall be deemed timely delivery.
Thereafter, shipment or tender of delivery prior to receipt of written cancellation shall constitute good delivery. Any defect in quality or delays in delivery shall not affect the balance of this invoice. Any delivery not in dispute shall be paid for on the due date, without offset, defense or counterclaims and regardless of controversies relating to other delivered and undelivered merchandise. Where the Buyer has declared or manifested an intention that it will not accept delivery in accordance with the provisions of this invoice, no tender shall be necessary but FMF may at its option give notice in writing to the Buyer that FMF is ready and willing to deliver in accordance with the provisions of the invoice and such notice shall constitute a valid tender of delivery. 5) Time of the Essence. FMF shall not be liable for default in delivery or delays in shipment for any cause beyond FMF's reasonable control. Buyer requested changes may result in additional charges. FMF will refund Must On Service charges if date requested cannot be met. 6) Risk of Loss. Buyer bears the risk of loss for any specialty items or goods ordered and not readily saleable by FMF to other parties from the time they leave FMF's facilities and are placed with a carrier for shipment to Buyer. Risk of loss as to other goods will be governed by applicable provisions of the Utah Uniform Commercial Code. If a shipment is made FOB shipping point or if, at Buyer's request, freight is prepaid by FMF and invoiced to Buyer, Buyer bears all risk of loss for all goods covered by this invoice from the time they are placed with the carrier by FMF. 7) Purchase Money Security Interest. If the goods described on this invoice are delivered to Buyer without full payment therefore or through the extension of any credit by FMF to Buyer, FMF retains and Buyer hereby grants FMF a purchase money security interest in and to all the goods covered by this invoice to secure the payment of all amounts due hereunder, including principal, interest, freight charges and other expenses incurred by FMF in connection with the sale of the goods and collection of the amount due hereunder. The purchase money security interest granted herein shall be automatically perfected without filing pursuant to the Utah Uniform Commercial Code. Upon any default by Buyer under this invoice, FMF may declare immediately due and payable all amounts secured hereby. 8) Future Orders Placed with FMF. Future orders placed by Buyer with FMF shall be placed by Buyer and accepted by FMF subject to the terms and conditions contained herein, irrespective of any provisions contained in buyer's purchase orders. Upon FMF's acceptance of an order by Buyer, such order shall be non-cancelable. 9) Credit and Default. FMF may, at any time and from time to time, in it's sole discretion modify or cancel the credit of Buyer as to time and amount, and as a consequence may require and demand payment in cash before delivery of any unfilled portion of an invoice. Buyer shall be in default hereunder upon the occurrence of any of the following:
(a) Buyer fails to make payments when due;
(b) Buyer fails to perform any other obligations as required hereunder or under the invoice; (c) Buyer becomes insolvent or makes any assignment for the benefit of creditors or a proceeding is initiated against Buyer alleging that Buyer is insolvent or is unable to pay Buyer's debts as they mature. (d) The issuance of an attachment or garnishment or the filing of a lien against any of the goods subject hereof; or (e) FMF shall deem itself insecure and Buyer fails to provide FMF with adequate assurance of Buyer's ability to perform. 10) Remedies. FMF shall be entitled to all the remedies of a secured party and seller under the Utah Uniform Commercial Code. Additionally, FMF shall be authorized and Buyer hereby grants FMF permission to enter upon any premises, leased or owned by Buyer, to recover possession of any goods received by Buyer from FMF for which FMF has not received payment. 11) Limited Warranty.
(a) FMF warrants to Buyer that for the period specified in the specifications after the date of invoice of the products ("Warranty Period"), that such products will materially conform to the published specifications in effect as of the date of manufacture and will be free from material defects in material and workmanship. This Warranty Period applies only to the original Buyer only and is non-transferable. This Warranty Period may be terminated via misuse, abuse, or improper service, service by a non-certified FMF technician or installer, including moving the product, improper storage, storing the product on its side, or placing the product in a high-humidity environment including spa areas, pool areas, or outside. (b) EXCEPT FOR THE WARRANTY SET FORTH IN SECTION 1(A), FMF MAKES NO WARRANTY WHATSOEVER WITH RESPECT TO THE PRODUCTS, INCLUDING ANY (a) WARRANTY OF MERCHANTABILITY; OR (b) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; OR (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE. (c) Products manufactured by a third party ("Third Party Product") may constitute, contain, be contained in, incorporated into, attached to or packaged together with, the products. Third Party Products are not covered by the warranty in Section 1(a). For the avoidance of doubt, FMF MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO ANY THIRD PARTY PRODUCT, INCLUDING ANY (a) WARRANTY OF MERCHANTABILITY; (b) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE. (d) FMF shall not be liable for a breach of the warranty set forth in Section 1(a) unless: (i) Buyer gives written notice of the defect, reasonably described, to FMF within ten days of the time when Buyer discovers or ought to have discovered the defect; (ii) FMF is given a reasonable opportunity after receiving the notice to examine such products and Buyer (if requested to do so by FMF) returns such products to FMF's place of business at FMF's cost for the examination to take place there; and (iii) FMF reasonably verifies Buyer's claim that the products are defective. (e) FMF shall not be liable for a breach of the warranty set forth in Section 1(a) if: (i) Buyer makes any further use of such products after giving such notice; (ii) the defect arises because Buyer failed to follow FMF's oral or written instructions as to the storage, installation, commissioning, use or maintenance of the products; or (iii) Buyer alters or repairs such products without the prior written consent of FMF. (f) Subject to Section 1(d) and Section 1(e) above, with respect to any such products during the Warranty Period, FMF shall, in its sole discretion, either: (i) repair or replace such products (or the defective part) or (ii) credit or refund the price of such products at the pro rata contract rate provided that, if FMF so requests, Buyer shall, at FMF's expense, return such products to FMF. (g) THE REMEDIES SET FORTH IN SECTION 1(F) SHALL BE THE BUYER'S SOLE AND EXCLUSIVE REMEDY AND FMF'S ENTIRE LIABILITY FOR ANY BREACH OF THE LIMITED WARRANTY SET FORTH IN SECTION 1(A).
103
12) Limitation of Liability.
(a) IN NO EVENT SHALL FMF BE LIABLE TO BUYER OR ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE OR PROFIT OR LOSS OF DATA OR DIMINUTION IN VALUE, OR FOR ANY
CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE,
REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT FMF HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. (b) IN NO EVENT SHALL FMF'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED ONE TIMES THE TOTAL OF THE AMOUNTS PAID TO FMF FOR THE PRODUCTS SOLD HEREUNDER or $100,000.000, WHICHEVER IS LESS. (c) The limitation of liability set forth in Section 2(b) above shall not apply to (i) liability resulting from FMF's gross negligence or willful misconduct and (ii) death or bodily injury resulting from FMF’s acts or omissions. 13) Shortages. When in the opinion of FMF there is a period of shortages of supply or transportation for any reason, FMF may allocate its available supply among any and all of its various customers upon such basis as it shall deem fair and practical, with no liability on its part for failure to deliver the quantity or any portion therein specified. 14) Attorney's Fees and Costs of Collection. In the event Buyer fails to pay the invoice amount within the time specified or materially breaches any other provision of this invoice, Buyer shall be liable to pay all reasonable attorney's fees, court costs and other related collection costs and expenses incurred by FMF prosecuting its rights hereunder. 15) Governing Law and Jurisdiction. This invoice, and all other matters relation hereto, including any matter or dispute arising out of the sale of the goods subject hereto, shall be interpreted, governed, and enforced according to the laws of the State of Utah, and Buyer hereby consents to the exclusive jurisdiction of the First Judicial District Court in and for Cache County, State of Utah, to resolve any such disputes. 16) Amendments. This invoice may be amended at any time upon agreement of the parties hereto, which amendment(s) must be reduced to writing and signed by all parties in order to become effective. No waiver by FMF of any default or provision hereof shall be deemed a waiver of any other default or provision. 17) Taxes. All taxes and excises of any nature whatsoever now or hereafter levied by any governmental authority, whether federal, state or local, either directly or indirectly, upon the sale, use or transportation of any goods sold hereunder shall be paid and borne by Buyer.
Quote valid until date listed above. Please sign and return to the contact listed above to place your order.
The FreeMotion Cable Cross, Chest & Shoulder are ADA compliant/wheelchair accessible. A maximum tax credit of $5,000 per year may be applicable. Reference Section 44 of the IRS tax code. 104
This Agreement, # COG-2120A, entered into as of the first of September in the year of 2021.
MASTER AGREEMENT
between
Cooperative Council of Governments
6001 Cochran Road, Suite 333
Cleveland, Ohio 44139
and
Freemotion Fitness, Inc.
1500 South 1000 West
Logan, Utah 84321
and
Equalis Group LLC
5550 Granite Parkway, Suite 298
Plano, Texas 75024
105
Table of Contents
SECTION 1. RECITALS .......................................................................................................1 SECTION 2. BUSINESS TERMS ..........................................................................................2
2.1. Appendices .....................................................................................................................................................................2
2.2. Terms in Appendices ......................................................................................................................................................2
2.3. Personnel & Equipment ..................................................................................................................................................2
2.4. Rates & Charges.............................................................................................................................................................2 SECTION 3. TERMS & CONDITIONS...................................................................................2
3.1. Confidentiality..................................................................................................................................................................2
3.2. Indemnification................................................................................................................................................................3
3.3. Notice & Opportunity to Defend; Limitations & Thresholds..............................................................................................4
3.4. Freemotion Insurance .....................................................................................................................................................4
3.5. Termination Rights..........................................................................................................................................................5
3.6. Effects of Termination .....................................................................................................................................................5
3.7. Audit of Freemotion.........................................................................................................................................................5
3.8. Force Majeure.................................................................................................................................................................6
3.10. Notices............................................................................................................................................................................6
3.11. Waiver.............................................................................................................................................................................6
3.12. Governing Law; Invalidity ................................................................................................................................................6
3.13. Modification.....................................................................................................................................................................6
3.14. Assignment .....................................................................................................................................................................7
3.15. No Third-Party Beneficiaries; Survival of Representations ..............................................................................................7
3.16. Entire Agreement ............................................................................................................................................................7
3.17. Execution in Counterparts...............................................................................................................................................7
3.18. Titles, Headings & Recitals .............................................................................................................................................7
3.19. Nondiscrimination & Intimidation .....................................................................................................................................7 APPENDIX A: TERM OF AGREEMENT; NOTICES................................................................9 APPENDIX B: PRODUCTS & SERVICES; PRICING ............................................................ 10 106
- 1 -
THIS MASTER COOPERATIVE PURCHASING AGREEMENT (this "Master Agreement" or “Agreement”), effective as of September 1, 2021 (the “Effective Date”), is entered into by and between The Cooperative Council of Governments, Inc., an Ohio non-profit corporation organized as a regional council of governments under Chapter 167 of the Ohio Revised Code, with its principal place of business at 6001 Cochran Road, Suite 333, Cleveland, Ohio 44139 (“CCOG”), Freemotion Fitness, Inc., a Utah corporation with its principal place of business at 1500 South 1000 West, Logan, Utah 84321 (“Freemotion”), and Equalis Group LLC, a Delaware limited liability company with its principal place of business at 5550 Granite Parkway, Suite 298, Plano, Texas 75024 (“Equalis”). Throughout this Master Agreement, CCOG, Freemotion, and Equalis are referred to interchangeably as in the singular “Party” or in the plural “Parties.”
SECTION 1. RECITALS
A. CCOG is a Council of Governments formed under Chapter 167 of the Ohio Revised Code and established for the purpose of (a) developing and implementing certain sound business practices and processes as shared services to be made available to its members, and (b) serving as a lead public agency (a “Lead Public Agency”) for Equalis Group (“Equalis Group”), a national cooperative purchasing organization, by publicly procuring Master Agreements for products and services to be made available to current and prospective Equalis Group members (“Equalis Group Member” or “Member”).
B. Equalis is the third-party procurement administrator for and duly authorized agent of CCOG, and in that role manages the procurement, marketing, sales, reporting, and financial activities of, for, and on behalf of CCOG at the direction and with the authorization of the CCOG Board of Directors.
C. To the extent that the laws of a state, region, territory, and/or country permit, any public sector entity may join Equalis Group as a Member. The term “Public Sector Entities” includes, but is not limited to, political subdivisions, municipal corporations, counties, townships, villages, school districts, special districts, public institutions of higher education or training, units of government, state/regional/territorial agencies, state/regional/territorial governments, federal/national agencies, federal/national governments, and other entities receiving financial support from tax monies and/or public funds.
D. Any organization that is exempt from federal income tax under Section 501(c)(3) of the IRS Code, and any other entity if permitted under the IRS Code and other applicable law, including for-profit companies, may also join Equalis Group as a Member.
E. Equalis Group makes its Master Agreements available through groups and associations (“Association Partners”) that contract with Equalis for the purpose of providing additional benefits to the members of such Association Partners.
F. Members, Association Partners, and Association Partners’ members are referred to throughout this Master Agreement as Equalis Group participants (“Equalis Group Participants”).
G. CCOG issued request for proposal (“RFP”) #COG-2120 dated May 21, 2021 for contracting on behalf of Equalis Group Participants for fitness, exercise, and strength training equipment (“Products & Services”) and awarded a contract to Freemotion as the lowest responsive and responsible bidder.
H. Freemotion desires to promote and expand its operations and increase the sales of its Products & Services to public sector, private sector, and non-profit organizations through Equalis Group.
I. CCOG and Equalis agree to make the Products & Services from Freemotion available to Equalis Group Participants and Freemotion agrees to provide the same to Equalis Group Participants who purchase Products & Services (“Program Participants”) subject to the terms of this Master Agreement, #COG-2120A. 107
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NOW, THEREFORE, in consideration of themutual promises contained herein, the Parties agree to the following terms and conditions:
SECTION 2. BUSINESS TERMS
2.1. Appendices. Freemotion agrees to provide Products & Services to Program Participants as may be agreed to by the Parties in accordance with the specific terms and conditions set forth in this Master Agreement and the appendices attached hereto and made a part of thisMaster Agreement (if one, an “Appendix” or more, “Appendices”). (i) Appendix A defines the Term of this Master Agreement and Addresses for Notices. (ii) Appendix B sets forth the Products & Services and pricing available to Program Participants under this Master Agreement.
2.2. Terms in Appendices. In all cases where the terms of this Master Agreement and any Appendices disagree, the terms in the Appendix shall control.
2.3. Personnel & Equipment. The Parties agree that the number and types of any subcontractors, dealers, distributors, personnel, or specialized equipment which may be required to furnish Products & Services to Program Participants will be determined by Freemotion. Freemotion agrees to engage the number and types of subcontractors, personnel, and/or specialized equipment necessary to furnish the types of Products & Services as specified in Appendix B to all Program Participants throughout the Term, as defined in Appendix A, of this Master Agreement and any Customer Agreement.
2.4. Rates & Charges. The rates, fees, and charges to be charged to and paid by Program Participants for Products & Services are set forth in Appendix B. Freemotion agrees that there are no other applicable rates, fees, charges, or other monetary incentives for Products & Services except those set forth in Appendix B.
SECTION 3. TERMS & CONDITIONS
3.1. Confidentiality.
(a) Obligation. The nature and details of the business relationship established by this Master Agreement, and the business information regarding the other Party(ies) (the “Disclosing Party”) to which a Party(ies) (the “Receiving Party”) may become privy during the Term of this Master Agreement (collectively, the “Information”) constitute confidential and proprietary information, the disclosure, copying, or distribution of which could result in competitive harm to the Disclosing Party. Each Party agrees to maintain the other Parties’ Information in the strictest confidence and agrees not to disclose, copy, or distribute the other Parties’ Information, whether orally or in writing, directly or indirectly, in whole or in part, except to those of the Receiving Party’s employees, agents, subcontractors, and suppliers with a need to know the Information in order to perform their respective obligations under this Master Agreement. The foregoing will not limit a Receiving Party, for purposes of marketing, from informing actual or potential Equalis Group Participants of the existence of a contractual relationship between the Parties. The Parties further agree that they will require that all of their employees, agents, subcontractors, and suppliers who have a need to know such Information in order to perform their respective obligations with respect to this Master Agreement abide by the terms of these confidentiality obligations. The Parties shall be responsible for any breach of this Section 3.1 by any of their respective employees, agents, subcontractors and suppliers. The confidentiality obligations set forth in this section will continue in effect for the Term of this Master Agreement and for a period of two (2) years after the date this Master Agreement is terminated or expires; provided that with respect to Information that constitutes a trade secret under applicable law, such rights and obligations will survive such expiration until, if ever, such Confidential Information loses its trade secret protection other than due to an act or omission of Recipient or its Representatives. 108
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(b) Exceptions. Nothing herein will apply to any information (a) which is or becomes generally available to the public other than as a result of a disclosure by a Receiving Party or its representatives, (b) which was available on a non-confidential basis prior to its disclosure by the Disclosing Party or its representatives, (c) which becomes available to a Receiving Party on a non-confidential basis from a source other than the Disclosing Party or its representatives, provided that such source is not known to be subject to any prohibition against transmitting the information, (d) which is disclosed pursuant to an order of court; provided that in the event that proprietary information is disclosed or threatened to be disclosed pursuant to this clause (d), the Receiving Party will give the original Disclosing Party prompt, written Notice, as hereinafter defined, of such threatened disclosure and the right to defend against such disclosure, at Disclosing Party’s expense, and provided further that the original Receiving Party will cooperate reasonably in such defense, or (e) which is subject to a Freedom of Information Act Request or other public records request to which a Party is, or may be, required to respond by applicable law.
3.2. Indemnification.
(a) Freemotion Indemnification. Except as otherwise provided herein and to the extent permitted by law, Freemotion shall indemnify, defend, and hold harmless (“Indemnifying Party”) CCOG and Equalis, and their respective officers, directors, employees, agents, subcontractors, suppliers, and all Equalis Group Participants subject to this Master Agreement (the “Indemnified Party”) from and against any and all liabilities, damages, fines, penalties, costs, claims, interest, and expenses (including costs of defense, settlement, and reasonable attorneys’ fees), including any claim arising from environmental health and safety laws or regulations, which are generated by thirdparty claims, allegations, actions, causes of action, demands, assertions, adjudications, or suits which arise out of damage to or destruction of any property, or bodily injury (including death) suffered by any person including the Indemnified Party arising out of or relating to this Master Agreement (“Losses”) to the extent they are caused by gross negligence, willful misconduct, noncompliance with applicable laws, or strict products liability of the Indemnifying Party or its employees, agents, subcontractors, and suppliers. With respect to Losses under this Master Agreement, the liability of the Indemnified Party is limited to the extent of such Indemnifying Party’s gross negligence, willful misconduct, willful noncompliance with applicable laws, or strict products liability. (b) CCOG Indemnification. Except as otherwise provided herein and to the extent permitted by law, CCOG shall indemnify, defend, and hold harmless (“Indemnifying Party”) Freemotion, its officers, directors, employees, agents, subcontractors, and suppliers subject to this Master Agreement (the “Indemnified Party”) from and against any and all liabilities, damages, fines, penalties, costs, claims, interest, and expenses (including costs of defense, settlement, and reasonable attorneys’ fees), including any claim arising from environmental health and safety laws or regulations, which are generated by third-party claims, allegations, actions, causes of action, demands, assertions, adjudications, or suits which arise out of damage to or destruction of any property, or bodily injury (including death) suffered by any person including the Indemnified Party arising out of or relating to this Master Agreement (“Losses”) to the extent they are caused by gross negligence, willful misconduct, or noncompliance with applicable laws of the Indemnifying Party or its employees, agents, subcontractors, and suppliers. With respect to Losses under this Master Agreement, the liability of the Indemnified Party is limited to the extent of such Indemnifying Party’s gross negligence, willful misconduct, or willful noncompliance with applicable laws. (c) Equalis Indemnification. Except as otherwise provided herein and to the extent permitted by law, Equalis shall indemnify, defend, and hold harmless (“Indemnifying Party”) Freemotion, its officers, directors, employees, agents, subcontractors, and suppliers subject to this Master Agreement (the “Indemnified Party”) from and against any and all liabilities, damages, fines, penalties, costs, claims, interest, and expenses (including costs of defense, settlement and reasonable attorneys’ fees), including any claim arising from environmental health and safety laws or regulations, which are generated by third-party claims, allegations, actions, causes of action, demands, assertions, adjudications, or suits which arise out of damage to or destruction of any property, or bodily injury (including death) suffered by any person including the Indemnified Party arising out of or relating to this Master Agreement (“Losses”) to the extent they are caused by gross negligence, willful misconduct, or noncompliance with applicable laws of the Indemnifying Party or its employees, agents, subcontractors, and suppliers. With respect to Losses under this Master Agreement, the liability of the Indemnified Party is limited to the extent of such Indemnifying Party’s gross negligence, willful misconduct, or willful noncompliance with applicable laws. 109
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3.3. Notice & Opportunity to Defend; Limitations & Thresholds. (a) Notice; Opportunity. If any Losses are asserted against an Indemnified Party, such Indemnified Party shall notify the Indemnifying Party as promptly as practicable and give it an opportunity to defend the same. The Indemnified Party shall reasonably cooperate with the Indemnifying Party in connection with such defense. In the event that the Indemnifying Party in connection with such claim fails to defend against the claim within thirty (30) days after Notice of such claim, the Indemnified Party shall be entitled to assume the defense thereof, and the Indemnifying Party shall be liable to repay the Indemnified Party entitled to indemnification for all its expenses reasonably incurred in connection with said defense (including reasonable attorneys’ fees and settlement payments) until the Indemnifying Party assumes such defense. The attorneys prosecuting such defense on behalf of a Party must be acceptable to the Indemnified Party, which acceptance shall not be unreasonably withheld. (b) Liability. Notwithstanding any other provision of this Master Agreement, indemnity obligations entered into hereunder shall be due only to the extent of the Losses actually suffered by an Indemnified Party (i.e., reduced by any offsetting or related asset or service received and any recovery from any third Party). The Indemnifying Party’s insurance shall obtain all rights of the Indemnified Party against any third party with respect to any claim for which indemnity was paid.
(c) EXCEPT FOR LIABILITY FOR INDEMNIFICATION UNDER SECTION 3.2(A) OF THIS MASTER AGREEMENT, IN NO EVENT: (I) IS FREEMOTION LIABLE FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL,
SPECIAL, EXEMPLARY, PUNITIVE, OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES, OR
DIMINUTION IN VALUE, ARISING OUT OF OR RELATING TO ANY BREACH OF OR RELATING TO THIS MASTER AGREEMENT, REGARDLESS OF: WHETHER THE DAMAGES WERE FORESEEABLE; WHETHER OR NOT FREEMOTION WAS ADVISED OF THE POSSIBILITY OF THE DAMAGES; AND THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT, OR OTHERWISE) ON WHICH THE CLAIM IS BASED; AND (II) SHALL FREEMOTION’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS MASTER AGREEMENT,
WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE),
OR OTHERWISE, EXCEED THE TOTAL OF THE AMOUNTS PAID AND AMOUNTS ACCRUED BUT NOT YET PAID TO FREEMOTION SELLER UNDER THIS MASTER AGREEMENT IN THE 12 MONTH PERIOD PRECEDING THE EVENT GIVING RISE TO THE CLAIM. THE FOREGOING LIMITATIONS APPLY EVEN IF CCOG’S OR EQUALIS’ REMEDIES UNDER THIS MASTER AGREEMENT FAIL OF THEIR ESSENTIAL PURPOSE. (d) EXCEPT FOR THE WARRANTIES SET OUT UNDER FREEMOTION’S RFP RESPONSE AT SECTION 3.7 (“WARRANTY”) OF ATTACHMENT A (ATTACHMENT A – PROPOSALS REQUIREMENTS &
TECHNICAL SPECIFICATIONS) THEREOF, NEITHER FREEMOTION NOR ANY PERSON OR PARTY ON THE WINNING PARTY’S BEHALF HAS MADE OR MAKES FOR CCOG’S OR EQUALIS’ BENEFIT ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER, INCLUDING ANY WARRANTIES OF: (I) MERCHANTABILITY, (II) FITNESS FOR A PARTICULAR PURPOSE, (III) TITLE OR (IV) NON-INFRINGEMENT;
WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED. CCOG AND EQUALIS ACKNOWLEDGE THAT
THEY HAVE NOT RELIED ON ANY REPRESENTATION OR WARRANTY MADE BY FREEMOTION, OR ANY OTHER PERSON OR PARTY ON THE WINNING PARTY’S BEHALF. Freemotion shall have no obligation under the Warranty set forth above if CCOG, Equalis, the relevant Program Participant(s) or the relevant Program Participant(s)’ subject employee or contractor who is authorized to use the Products & Services (as the case may be): (i) fails to notify Freemotion in writing during the warranty period of a non-conformity; (ii) or uses, misuses, or neglects the Products & Services in a manner inconsistent with the Products & Services' specifications or use or maintenance directions, modifies the Products & Services or improperly installs, handles or maintains the Products & Services.
3.4. Freemotion Insurance. During the Term of this Master Agreement, and for two (2) years following expiration or termination of this Master Agreement, Freemotion, at its own expense, shall maintain and shall require that its agents, subcontractors, and suppliers engaged in Freemotion’s performance of its duties under this Master Agreement maintain general liability insurance, property insurance, and automobile insurance (at a minimum, in the amount of $1,000,000 per occurrence/$5,000,000 annual aggregate) applicable to any claims, liabilities, damages, costs, or 110
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expenses arising out of its performance under this Master Agreement, or any Appendix, and with respect to, or arising out of, Freemotion’s provision of Products & Services to Program Participants. CCOG, Equalis, and their respective officers, directors, employees, and agents will be named as additional insureds on Freemotion’s related insurance policies. All such insurance policies shall incorporate a provision requiring the giving of written Notice to CCOG and Equalis at least thirty (30) days prior to the cancellation, nonrenewal, and/or material modification of any such policies.
Freemotion shall submit to Equalis within ten (10) calendar days after the Effective Date of this Master Agreement, and prior to furnishing Products & Services to any Program Participants, valid certificates evidencing the effectiveness of the foregoing insurance policies. Freemotion shall provide such valid certificates on an annual basis until the terms of this section are no longer applicable.
3.5. Termination Rights. The Parties shall have the termination rights set forth below. (a) Insolvency. If a petition in bankruptcy is filed by any Party, or if any Party is adjudicated as bankrupt, or if any Party makes a general assignment for the benefit of creditors, or if a receiver is appointed on account of the insolvency of any Party, then the other Parties, without prejudice to any other right or remedy, may terminate this Master Agreement upon giving at least five (5) business days prior written Notice of such termination. (b) Mutual Consent. This Master Agreement, or any Appendix, may be terminated at any time by the mutual written consent of the Parties.
(c) Breach. In the event that any Party commits a material breach of its obligations under this Master Agreement, except for a payment obligation, the non-breaching Party(ies) may provide written Notice describing the material breach to the breaching Party. The breaching Party will have thirty (30) calendar days to cure such breach or provide acceptable reassurance to the non-breaching Party(ies), or, if the Parties agree that a cure or reassurance is not feasible within thirty calendar (30) days, such period of time for cure or satisfactory reassurance as the Parties may agree in writing. If the breach is not cured within such period or if satisfactory reassurance is not accepted by the non-breaching Party(ies) in such period, then the Party(ies) not in breach may terminate this Master Agreement upon ten (10) business days written Notice at the Addresses for Notices set forth in Appendix A.
3.6. Effects of Termination. Upon expiration or earlier termination of this Agreement for any reason, all Customer Agreements entered into with Program Participants shall immediately terminate and all ordering documents for Products & Services under such Customer Agreement shall automatically terminate. Freemotion shall immediately cease any sales of Products & Services to any Program Participant under and through the terms of this Master Agreement. Following the date of termination, Freemotion shall not be precluded from selling its products and services to individuals, businesses, and entities that were Program Participants when this Master Agreement was in effect either directly or through some other contract vehicle. Following the date of termination, and subject to the confidentiality obligations set forth in Section 3.1, CCOG and Equalis shall not be precluded from transitioning individuals, businesses, and entities that were Program Participants when this Master Agreement was in effect to another agreement or Equalis Group supplier partner. Upon the expiration or earlier termination of this Agreement for any reason, (a) CCOG and Equalis shall cease to represent itself as authorized to make the Products & Services from Freemotion available to Equalis Group Participants, and shall otherwise desist from all conduct or representations that might lead the public to believe that CCOG and Equalis are authorized by Freemotion to make the Products & Services from Freemotion available; and (b) CCOG and Equalis shall promptly return or destroy (pursuant to Freemotion’s instructions) all documents and tangible materials (and any copies) containing, reflecting, incorporating or based on Information of Freemotion.
3.7. Audit of Freemotion. CCOG and Equalis, whether directly or through an independent auditor or accounting firm, shall have the right to perform audits, including inspection of books, records, and computer data of Freemotion solely with respect to Freemotion’s provision of Products & Services to Program Participants pursuant to this Master Agreement, to ensure that pricing, inventory, quality, process, and business controls are maintained, unless such information is already available to CCOG and Equalis; provided, however, that (a) such inspections and audits will be (i) conducted upon reasonable notice to Freemotion and so as not to unreasonably interfere with Freemotion’s business or operations, (ii) restricted to a reasonable scope and duration as agreed by the Parties prior to the start date, (iii) 111
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conducted no more than twice each year of the Term and (iv) conducted at the sole costs and expense of CCOG and/or Equalis; (b) CCOG, Equalis and their respective auditors and accounting firms comply with Freemotion’s security requirements; and (c) all information that is the subject of said inspections and audits, including books, records and computer data, and any and all results of said inspections and audits shall (i) be deemed and treated by CCOG, Equalis and their respective auditors and accounting firms as Information of Freemotion that is confidential and proprietary under Section 3.1(a) and (ii) constitute Freemotion’s trade secrets under applicable law.
3.8. Force Majeure. This Master Agreement will be temporarily suspended during any period to the extent that any Party during that period is unable to carry out its obligations under this Master Agreement or the Appendices by reason of an Act of God or the public enemy, act of terrorism, epidemic or pandemic, fire, flood, labor disorder not caused by Freemotion, civil commotion, closing of the public highways not caused by Freemotion, government interference, government regulations, or any other event or occurrence beyond the reasonable control of the affected Party (“Event of Force Majeure”). No Party will have any liability to the other Party(ies) for a delay in performance nor failure to perform to the extent this Master Agreement or any Appendix is so temporarily suspended; provided that nothing contained herein shall apply to payment obligations with respect to obligations which have already been performed under this Master Agreement. If the provision of Products & Services are impeded due to an Event of Force Majeure, then Freemotion may apportion the provision of Products & Services among its present and future customers on a fair and reasonable basis after consulting with Equalis and the Program Participants potentially affected and in a manner that would not reasonably be expected to disproportionately affect Program Participants.
3.9. Buy American requirement. (for New Jersey and all other applicable States) Freemotion may only use unmanufactured construction material mined or produced in the United States, as required by the Buy American Act.
Where trade agreements apply, to the extent permitted by applicable law, then unmanufactured construction material mined or produced in a designated country may also be used. Vendors are required to check state specific requirements to ensure compliance with this requirement.
3.10. Notices. All notices, claims, certificates, requests, demands, and other communications required or permitted hereunder (“Notice”) must be in writing and will be deemed given to the Addresses for Notices (a) when delivered personally to the recipient, (b) upon delivery by reputable overnight courier service (charges prepaid), or (c) upon delivery or refusal of delivery by certified or registered mail, return receipt requested, and addressed to the intended recipient. The Parties agree that the day-to-day business communications, including notification of a change of address, pricing updates, or revisions to any Appendix, may be made via electronic communication.
3.11. Waiver. Other than the rights and obligations with respect to payment provided by this Master Agreement, waiver by any Party(ies) of or the failure of any Party(ies) hereto to enforce at any time its rights with regard to any breach or failure to comply with any provision of this Master Agreement by the other Party(ies) may not be construed as, or constitute, a continuing waiver of such provision, or a waiver of any other future breach of or failure to comply with the same provision or any other provision of this Master Agreement.
3.12. Governing Law; Invalidity. This Master Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of Ohio without regard to rules of conflict of laws. If any provision of this Master Agreement is declared unlawful or unenforceable by judicial determination or performance, then the remainder of this Master Agreement shall continue in force as if the invalidated provision did not exist. Any suits filed by any Party pursuant to this Master Agreement shall be brought in a court of competent jurisdiction located in Cuyahoga County, Ohio. In the event any Party initiates a suit and that suit is adjudicated by a court of competent jurisdiction, the prevailing Party shall be entitled to reasonable attorney’s fees and costs from the non-prevailing Party in addition to any other relief to which the court determines the prevailing Party is entitled or awarded.
3.13. Modification. No release, discharge, abandonment, waiver, alteration, or modification of any of the provisions of this Master Agreement, or any of the Appendices incorporated herein, shall be binding upon any Party unless set forth in a writing signed by authorized representatives of the Parties. 112
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3.14. Assignment. This Master Agreement and the rights and obligations hereunder may not be assignable by any Party hereto without the prior written consent of the other Parties, which consent shall not be unreasonably withheld, conditioned, or delayed, provided, however, that Freemotion and Equalis may assign their respective rights and obligations under this Master Agreement without the consent of the other Parties in the event either Freemotion or Equalis shall hereafter effect a corporate reorganization, consolidation, merger, merge into, sale to, or a transfer of all or substantially all of its properties or assets to another entity. Subject to the preceding sentence, this Master Agreement will be binding upon, inure to the benefit of, and be enforceable by the Parties and their respective successors and assigns. Any instrument purporting to make an assignment in violation of this section shall be null and void. This Master Agreement may be extended to additional entities affiliated with the Parties upon the mutual agreement of the Parties. No such extension will relieve the extending Party of its rights and obligations under this Master Agreement.
3.15. No Third-Party Beneficiaries; Survival of Representations. This Master Agreement is made solely for the benefit of the Parties to it, and no other persons will acquire or have any right under or by virtue of this Master Agreement. Except as otherwise provided herein, all representations, warranties, covenants, and agreements of the Parties shall remain in full force and effect regardless of any termination of this Master Agreement, in whole or in part.
3.16. Entire Agreement. This Master Agreement, together with all attachments, appendices, and exhibits hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior oral or written representations and agreements with regard to the same subject matter. In connection with entering into this Master Agreement, CCOG and Equalis specifically disclaim reliance on any and all oral or written representations, statements, warranties or covenants that are not contained in this Agreement. The Parties acknowledge that this Master Agreement has been negotiated and incorporates their collective agreement as to the provisions to be contained herein. Therefore, no presumption will arise giving benefit of interpretation by virtue of authorship of any provision of this Master Agreement, and any ambiguity may not be construed for or against any Party. Freemotion’s complete and final RFP response is hereby incorporated into and made part of this Master Agreement. The Parties acknowledge that the relationship created under this Master Agreement is non-exclusive and (i) Freemotion may in its sole discretion sell its Products & Services, as defined in Appendix B of the Master Agreement, to any other person or party, including distributors, retailers and customers; and (ii) Equalis, in partnership with a public agency may in its sole discretion develop request for proposals and enter into Master and Administration Agreements with any other party, including organizations offering similar Products & Services, provided, however, that, and for clarification and without limiting the generality of Section 3.1(a) of this Master Agreement, no information of Freemotion that is confidential and proprietary under Section 3.1(a) of this Master Agreement, including (without limitation) information that constitutes Freemotion’s trade secrets under applicable law, shall be disclosed to any such other party.
3.17. Execution in Counterparts. This Master Agreement may be executed in one or more counterparts, each of which will be deemed an original. For purposes of this Master Agreement, a facsimile, scanned, or electronic signature will be deemed an original signature.
3.18. Titles, Headings & Recitals. The Preamble to this Master Agreement is hereby incorporated herein and made part of this Master Agreement. The Recitals stated within this Master Agreement are deemed to be a part of this Master Agreement. The titles and headings of the sections and paragraphs of this Master Agreement are inserted for convenience only and shall not constitute a part hereof or affect in any way the meaning or interpretation of this Master Agreement.
3.19. Nondiscrimination & Intimidation.
(a) Freemotion expressly agrees that in the hiring of employees for the performance of work or services under this Master Agreement or any subcontract that takes place in the State of Ohio, Freemotion, its subcontractors, or any person acting on a Freemotion’s or its subcontractor’s behalf shall not discriminate in the hiring of employees by reason of race, creed, sex, disability as defined in Section 4112.01 of the Ohio Revised Code nor shall it discriminate against any citizen of the State of Ohio in the employment of labor or workers who are qualified and available to perform the Work to which the employment relates. 113
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(b) Freemotion expressly agrees that Freemotion, any of its subcontractors, or any person on behalf of Freemotion or its subcontractors in any manner shall not discriminate against or intimidate any employee hired for the performance of work or services under this Master Agreement on account of race, creed, sex, disability as defined in Section 4112.01 of the Ohio Revised Code, or color.
(c) Freemotion expressly agrees to include principally similar provisions of this section in each of its written subcontractor agreements for the Products & Services subject to this Master Agreement.
IN WITNESS WHEREOF, the Parties hereto have caused this Master Agreement to be executed by their duly authorized representatives as of the Effective Date.
THE COOPERATIVE COUNCIL OF
GOVERNMENTS, INC.
FREEMOTION FITNESS, INC.
By: Scott A. Morgan Scott A. Morgan (Oct 11, 2021 08:15 EDT) By: Chris McGill (Oct 12, 2021 08:55 MDT) Name: Scott A. Morgan Name: Chris McGill
As: CCOG Board President As: SVP Global Sales
Date: Oct 11, 2021 Date: Oct 12, 2021
EQUALIS GROUP, LLC.
By:
Name: Eric Merkle
As: SVP, Sourcing & Operations
Date: Oct 11, 2021
114
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APPENDIX A: TERM OF AGREEMENT; NOTICES
This Appendix may be modified at any time with the mutual written consent of the Parties.
1. The Term.
This Master Agreement and the Appendices attached hereto will become effective as of the Effective Date. This Master Agreement will remain in effect for approximately five (5) years and expire on August 31, 2026 (the “Termination Date”) unless extended or unless otherwise terminated or cancelled as set forth in the Master Agreement (the “Initial Term”). This Master Agreement may be renewed at any time by the mutual written consent of the Parties (each a “Renewal Term”) unless this Master Agreement is terminated as set forth herein. The Initial Term together with all Renewal Terms exercised are hereinafter collectively referred to as the “Term.”
2. Addresses for Notices.
a. If to CCOG:
The Cooperative Council of Governments, Inc.
Attn: Board President
6001 Cochran Road, Suite 333
Cleveland, Ohio 44139
Facsimile: 440.337.0002
b. If to FREEMOTION: and with copy to:
Freemotion Fitness, Inc.
1500 South 1000 West
Logan, Utah 84321
Freemotion Fitness, Inc.
Attn: Legal Department
1500 South 1000 West
Logan, UT 84321
c. If to EQUALIS:
Equalis Group, LLC.
Attn: EricMerkle, SVP
5550 Granite Parkway, Suite 298
Plano, Texas 75024
115
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APPENDIX B: PRODUCTS & SERVICES; PRICING
The following terms and conditions will apply to any purchase or utilization of the Products & Services from Freemotion.
This Appendix may be modified at any time with the mutual written consent of Freemotion and Equalis.
1. Products & Services
Freemotion offers a wide array of fitness, exercise, strength training equipment and services including, but not limited to, the following:
(a) Cardio machines. Incline trainers, treadmills, ellipticals, stationary bikes, and indoor bikes. (b) Strength machines. Cable based machines, free weights, racks and rigs. (c) Services. Equipment layout and full CAD design layout, consultations, installation and shipping, inspection and trade-in, service and preventative maintenance and staff education as well as inservice training education that provides educational fitness continuing education credits.
The definition of Products & Services may be amended from time to time upon the mutual written agreement of Freemotion and Equalis.
Freemotion may add or make changes to Products & Services or remove Products & Services subject to Equalis Group’s approval, that are the subject of this Master Agreement on notice to CCOG and Equalis, in each case, without obligation to modify or change any Products & Services previously delivered or to supply new Products & Services meeting earlier specifications.
2. Pricing for Products & Services
Pricing for Products & Services is made available in Exhibit A – Contract Pricing.
3. Price Adjustments
Should it become necessary or proper during the Term of this Agreement to make any change in design or any alterations that will increase expense, Equalis Group must be notified immediately. Price increases must be approved by CCOG, which approval shall not be unreasonably withheld or delayed, and no payment for additional materials or services, beyond the amount stipulated in the Agreement, shall be paid without prior approval. All price increases must be supported by a formal cost justification letter.
Freemotion must honor previous prices for thirty (30) days after approval and written notification from Equalis Group if requested.
It is Freemotion’s responsibility to keep all pricing up to date and on file with Equalis Group. All price changes must be provided to Equalis Group, using the same format as was accepted in the original contract. 116
Created:
By:
Status:
2021-10-06
David Robbins ([email protected])
Signed
Transaction ID: CBJCHBCAABAAi8ejWy1TdaMLSSoryODhrv1NRLIAs6Fr Agreement - Freemotion and CCOG (Master) -
2021.09.01
Final Audit Report 2021-10-12
"Agreement - Freemotion and CCOG (Master) - 2021.09.01" His tory
Document created by David Robbins ([email protected]) 2021-10-06 - 5:55:14 PM GMT- IP address: 23.126.70.39
Document emailed to Scott A. Morgan ([email protected]) for signature 2021-10-06 - 5:56:36 PM GMT
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City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 9,
2025
Agenda Item #:8
Agenda Item: Grant of Temporary Construction Easements to Caltrans Executive Summary: Caltrans is planning a road repair project on Highway 50 from Blue Lake Avenue to the Nevada state line. The road in this area is old and in poor condition, so crews will remove the damaged pavement and replace it with new pavement to make it last longer and improve safety. As part of the project, Caltrans will also add new signs, upgrade traffic systems, and improve sidewalks and ramps to make them easier and safer for everyone, including people with disabilities. Storm drains will also be fixed or replaced to help prevent flooding during storms. This project will make Highway 50 safer, smoother, and more accessible for all users.
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Easement Agreements granting temporary construction easements to Caltrans for the U.S. Highway 50 Pavement Preservation Project as follows: Parcel No. 029-470-016 for $7,000; Parcel Nos. 027-081-002 -005 -006, and 029-150-012, -008, and -009 for $4,000; and Parcel No. 027-690-001 for $3,500, for a total amount of $14,500 to be paid to the City.
Responsible Staff Member: John Dickinson, Interim Public Works Director Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney
Attachments:
01-Staff Report - CalTrans ROW Easements.docx
02-Easement Agreement APN 029-470-016.pdf
03-Easement Agreement APN 027-081-002, -5 & -6 and APN 029-150-012, -8 & -9.pdf 04-Parcel 38861- Right of Way Contract.pdf
119
Council Agenda Report September 9, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: September 9, 2025
Title: Easement Agreements Caltrans
Locations: Lake Tahoe Blvd (U.S. 50) from Blue Lake Avenue to the Stateline Responsible Staff Member: John Dickinson, Interim Public Works Director – (530) 542-6031
Background: Caltrans has programmed a project in the 2022 SHOPP program for the Pavement Preservation Program from Blue Lake Avenue to Stateline. This project aims to grind and pave the current pavement, which is in poor condition, extending from Trout Creek Bridge to the Nevada state line. The primary goal is to preserve and extend the pavement's service life. Additionally, the project aims to improve safety by addressing components of the Traffic Management System (TMS), adding more signage, complying with the Americans with Disabilities Act (ADA) by installing curb ramps and new sidewalks or replacing existing ones that do not meet current standards, and drainage upgrades at 29 culverts.
Issue and Discussion: Caltrans requires permanent and temporary construction easements (TCE) from the City to accomplish the project's goals. Other easements will be needed by other property owners as well. Caltrans may also require additional easements as the design progresses. Caltrans is requesting the execution of three easements from the city and is offering a fair market value, if executed by September 12, 2025 (including $1,000 in incentive pay for each location), for these easements at the following locations:
1. Parcel No. 029-470-016 – Fair Market Value at $7,000, Caltrans Parcel agreement number (38885-1, 2 and 3)
2. Parcel Nos. 027-081-002 (-005 & -006; and 029-150-012, -008 & -009) - Fair Market Value at $4,000, Caltrans Parcel agreement number (38861-1, 1-2, 1-3)
3. Parcel No. 027-690-001 Fair Market Value at $3,500, Caltrans Parcel agreement number (38860-1 and 2)
The total project cost is estimated at $27.1 million, and the State of California fully funds the project. The project is expected to begin construction by Spring 2027.
Financial Implications: Caltrans will pay the City the fair market value for these easements. The city is expected to incur no other costs. Proceeds will be deposited into the General Fund, under the Engineering Division’s Easement Revenue account 100-03210-35337.
Environmental Considerations: Caltrans will complete an environmental clearance document for this work. This maintenance project is categorically exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301(c) (Existing Facilities) because it involves the maintenance and minor alteration of an existing public highway involving negligible or no expansion of existing or former use.
120
Council Agenda Report September 9, 2025 Page 2 of 2
Policy Implications: Cooperating with Caltrans will allow the design and construction of this project.
121
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION CONFIDENTIAL This document contains personal information, and
pursuant to Civil Code 1798.21, it shall be kept
confidential in order to protect against
unauthorized disclosure.
RIGHT OF WAY CONTRACT
STATE HIGHWAY
RW 8-3 (Rev. 6/95)
APN 029-470-016
District County Route P.M. E.A. / Project ID. Program Fed.
Ref.
Name Parcel
03 ED 50 80.23 0J480 /
0319000289
SHOPP N/A CITY OF SOUTH LAKE
TAHOE
38885-1, 2,
3 ,California
,2025
CITY OF SOUTH LAKE TAHOE
Grantor
RIGHT OF WAY CONTRACT - STATE HIGHWAY
This Document No. 38885-1 in the form of an EASEMENT DEED (E) to the State of California, covering the property particularly described in the above instrument, and Document Nos. 38885-2, 3 in the form of TEMPORARY CONSTRUCTION EASEMENTS (TCEs) to the State of California, particularly described in Clause #11 below, covering the property as delineated on the attached maps identified as Exhibit “A” and Exhibit “B”, has been executed and delivered to JOSHUA DEGROODT, Associate Right of Way Agent for the State of California.
In consideration of which, and the other considerations hereinafter set forth, it is mutually agreed as follows:
1. (A) The parties have herein set forth the whole of their agreement. The performance of this agreement constitutes the entire consideration for said document and shall relieve the State of all further obligation or claims on this account, or on account of the location, grade or construction of the proposed public improvement.
(B) Grantee requires said property described as Parcel Nos. 38885-1, 2 and 3 for State highway purposes, a public use for which Grantee has the authority to exercise the power of eminent domain. Grantor is compelled to sell, and Grantee is compelled to acquire the property. (C) Both Grantor and Grantee recognize the expense, time, effort, and risk to both parties in determining the compensation for the property by eminent domain litigation. The compensation set forth herein for the property is in compromise and settlement, in lieu of such litigation.
122
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION
RIGHT OF WAY CONTRACT - STATE HIGHWAY Page 2 of 5
RW 8-3 (Rev. 6/95) Parcel Nos. 38885-1, 2, 3
(D) The parties to this agreement shall, pursuant Section 21.7(a) of Title 49, Code of Federal Regulations, comply with all elements of Title VI of the Civil Rights Act of 1964. This requirement under Title VI and the Code of Federal Regulations is to complete the USDOT- Non-Discrimination Assurance requiring compliance with Title VI of the Civil Rights Act of 1964, 49 C.F.R. Part 21 and 28 C.F.R. Section 50.3.
(E) No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity that is the subject of this agreement.
2. The State shall pay the undersigned Grantor the sum of $7,000.00 ($6,000.00 in Fair Market Value Just Compensation plus a $1,000.00 Incentive Payment as described in Clause 3 below) for the property rights conveyed in this transaction.
3. In addition to Fair Market Value Just Compensation, it is agreed by and between the parties hereto that the amount in Clause 2 above includes a payment of $1,000.00 as an incentive to the Grantor for the timely signing of this Right of Way Contract. This Incentive Payment offer will expire sixty (60) days from the Initiation of Negotiations, which occurred on _____________.
4. The State shall pay all escrow and recording fees, interest, notary fees, and related miscellaneous expenses incurred in this transaction, and if title insurance is desired by the state, the premium charged therefore. Said escrow and recording charges shall not, however, include documentary transfer taxes (as State is exempt from such taxes). This transaction shall be handled through an internal escrow by the State of California, Department of Transportation, District 03, 703 B Street, Marysville, California, 95901.
5. The undersigned Grantor warrants that CITY OF SOUTH LAKE TAHOE is the owners in fee simple of the property affected by the Easement and TCEs conveyed in this transaction, and that CITY OF SOUTH LAKE TAHOE, has the exclusive right to grant these rights.
6. It is understood and agreed by and between the parties, hereto that this Agreement inures to the benefit of, and is binding on, the parties, their respective heirs, personal representatives, successors, and assignees.
7. State shall take title subject to all matters recorded and/or unrecorded. 123
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION
RIGHT OF WAY CONTRACT - STATE HIGHWAY Page 3 of 5
RW 8-3 (Rev. 6/95) Parcel Nos. 38885-1, 2, 3
8. In consideration of the State’s waiving the defects and imperfections in all matters of record title, the undersigned Grantor covenants and agrees to indemnify and hold the State of California harmless from any and all claims that other parties may make or assert on the title to the premises. The Grantor’s obligation herein to indemnify the State shall not exceed the amount paid to the Grantor under this contract.
9. Grantor warrants that there are no oral or written leases on all or any portion of the property exceeding a period of one month, and the Grantor agrees to hold State harmless and reimburse State for any and all of its losses and expenses occasioned by reason of any lease of said property held by any tenant of Grantor for a period exceeding one month. Grantor acknowledges that a waiver will be required from any lessee that has a lease term exceeding one month.
Said waiver is to be provided prior to the close of escrow.
10. It is agreed and confirmed by the parties hereto that notwithstanding other provisions in this contract, the right of possession and use of the Parcel No. 38885- 1 by the State, including the right to remove and dispose of improvements, shall commence on the date the amount of funds as specified in Clause 2 herein are paid to the Grantor. The amount shown in Clause 2 herein includes, but is not limited to, full payment for such possession and use, including damages, if any, from said date.
11. It is understood and agreed that the amount payable in Clause 2 above includes compensation in full for the actual possession and use of the TCEs, identified as Parcel Nos. 38885-2, 3, for the period commencing on April 16, 2026 and terminating on December 1, 2028. If said parcels are no longer necessary for construction purposes, these TCEs may be terminated prior to the above date by the Grantee upon written notice to the Grantor.
The TCEs identified as Parcel Nos. 38885-2, 3 are needed to reconstruct the ADA curb ramps. Said easements shall be for a period of thirty-two (32) months.
Permission is hereby granted the State or its authorized agent to enter upon Grantor’s land where necessary within the TCE areas shown on the map marked Exhibit “A” and “B” attached hereto and made a part hereof.
12. It is agreed and confirmed by the parties hereto that any grantor-owned improvement in the acquisition area damaged during construction, will be repaired or restored to the previous condition; or replaced in like kind by the State’s contractor.
124
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION
RIGHT OF WAY CONTRACT - STATE HIGHWAY Page 4 of 5
RW 8-3 (Rev. 6/95) Parcel Nos. 38885-1, 2, 3
13. It is understood and agreed by and between the parties hereto that payment as provided in Clause 2 includes, but is not limited to, payment for any and all damages which may accrue to the Grantor’s remaining property by reason of its severance from the property conveyed herein and the construction of the proposed highway, including, but not limited to, any expense which may be entailed by the Grantors in restoring the utility of his remaining property.
14. All work done under this agreement shall conform to all applicable building, fire and sanitary laws, ordinances, and regulations relating to such work, and shall be done in a good and workmanlike manner. All structures, improvements or other facilities, when removed, and relocated, or reconstructed by the State, shall be left in as good condition as found.
THIS AREA INTENTIONALLY LEFT BLANK
125
STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION
RIGHT OF WAY CONTRACT - STATE HIGHWAY Page 5 of 5
RW 8-3 (Rev. 6/95) Parcel Nos. 38885-1, 2, 3
15. State agrees to indemnify and hold harmless Grantor from any liability arising out of State’s operations under this agreement. State further agrees to assume responsibility for any damages proximately caused by reason of State’s operations under this agreement and State will, at its option, either repair or pay for such damage.
In Witness Whereof, the Parties have executed this agreement the day and year first above written
AS VESTED
CITY OF SOUTH LAKE TAHOE
______________________________________
TAMARA WALLACE DATE
Mayor
Grantor
RECOMMENDED FOR APPROVAL: ACCEPTED:
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
BY________________________________ BY______________________________________
JOSHUA DEGROODT DATE HARDEEP PANNU DATE
Associate Right of Way Agent Senior Right of Way Agent
Marysville Acquisition and State Lands
Marysville
No Obligation Other Than Those Set Forth Herein Will Be Recognized 126
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION CONFIDENTIAL This document contains personal information, and
pursuant to Civil Code 1798.21, it shall be kept
confidential in order to protect against
unauthorized disclosure.
RIGHT OF WAY CONTRACT
STATE HIGHWAY
RW 8-3 (Rev. 6/95)