SOUTH LAKE TAHOE, Calif. – Election Day on Nov. 5, didn’t keep City Council from meeting. It was business as usual Tuesday morning in the City of South Lake Tahoe council chambers where Mayor Cody Bass, Mayor Pro Tem Tamara Wallace, and Councilmembers Scott Robbins and Cristi Creegan met. Councilmember Devin Middlebrook was absent.

It was a relatively short meeting, as acknowledged by Mayor Bass when he said, “We’re almost out of here before noon. This is a record.”

The agenda item taking the most time and discussion concerned the Heavenly Area annexation in which councilmembers approved initiating annexation proceedings and other related actions. Approval didn’t come before hearing from a Heavenly Village representative on the matter and council voicing strong positions. The matter is broken down further in an article titled, City of South Lake Tahoe proceeds with Heavenly annexation.

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Financing for both energy and money savings

City Council also approved a multi million dollar bank loan that could save money in the long run.

“After 35 years, we expect to realize cumulative savings of approximately $28 million,” Olga Tikhomirova, Director of Finance said.

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The savings could come in the form of the city’s energy bills. The city identified 19 city facilities that have relatively high energy bills. In an effort to reduce those bills and pursue its ambitious greenhouse gas emissions goal, council approved a loan of almost $8 million.

The financing will go towards the city’s nearly $12 million Energy Saving Contract it approved with Willdan Energy Solutions last month for facility improvements, energy conservation, energy generation, and/or energy management services. A grant of $2 million and another $2 million from the General Fund are making up the difference between loan and contract amounts.

If a prepayment using IRA monies is made, the average annual payments on the 16-year financing term are estimated at $652,000. Although that may sound like a lot, the lease payments are structured proportionally to achieve expected gross savings when taking into account energy cost savings each year, according to the city.

The city is receiving the financing through Banc of America Public Capital Corp as a appropriation lease, which means the City will not have to use its assets as the collateral for the financing. Only the equipment being financed will serve as collateral. The payments will total almost $12 million by the end of the term.

Some items within the scope of work include equipment replacements at the ice arena and solar installation at the police department and motor pool.

Cleanup annexation

Council held a public hearing concerning the city’s Cleanup Annexation. State law requires the city and county to negotiate redistribution of property tax revenue before LAFCO can approve the annexation and requires that certain findings must be made surrounding the redistribution in order to do so.

According to the staff report, the county and city are able to make these findings because the amount of property tax base being transferred to the city is approximately equivalent to the estimated cost the city would incur in providing the public services to the annexation area. These costs will be avoided by the county after annexation when services will be formally provided by the city. However, historically the city has provided these services (police, fire and snow removal) in the past even though it received no revenue from the area, which is a main reason for annexation.

Since initiating annexation proceedings in the spring, the city has reduced the annexation area after the Tahoe Valley Campground owners expressed their concerns. The campground, along with adjacent public parcels were removed from the annexation application. The removal reduces the annexation area from over 400 acres to 79.

The negotiated property tax transfer estimated for the 24/25 fiscal year on those 79 acres is $12,200, which covers the city’s estimated $5,413 services for the reduced annexation area. The city has already been providing services (police, fire and snow removal) to the parcels, which is the main reason for annexation.

Council passed the resolution agreeing to the property tax base. The El Dorado County Board also had this item on their agenda for Nov. 5, which they passed as well.

Tourism Improvement District annual report

Council heard the South Lake Tahoe Tourism Improvement District’s Annual Report for Fiscal Year 2023-2024. The TID is an 18-year partnership between the city and the town’s lodging industry. An assessment is placed on each overnight stay and processed through the city. Assessments are then turned over to the district to fund marketing and tourism promotion with a goal of increasing overnight stays and tourist spending.

Assessments rates are $4 per occupied room night on hotels and motels, and $5.50 for timeshares, condos, duplexes, triplexes, and vacation homes under management contracts. For fiscal year 2024, the TID budgeted for $3.1 million and expects to land potentially ahead of that. The TID reports Margaritaville’s opening helped their numbers.

They’ve increased their budget for the next fiscal year by 1%. “We’re hoping that consumer confidence might come back after whatever happens today, one way or another with the elections,” Rich Bodine said on behalf of the district to council.

Between $2.7 and $3.2 million of revenue has been generated each year since 2016 with the exception of fiscal year 2020, which generated the reduced $2.2 million due to the pandemic.

The TID’s 2024 focus areas surrounded attracting ideal visitors to Lake Tahoe while developing sustainable messaging and promoting year around events. Rules to Lake By, Fill it Forward Refills, Awe and Then Some, and a Fourth of July initiative, are some of this year’s campaigns. The Tahoe Blue Events Center, the Knight Monsters, and celebrity golf are also on the TID’s list of successes.

Although the TID displayed this year’s accomplishments through an upbeat video, public commenters expressed criticism of the TID, saying more money should go towards building infrastructure such as parking facilities, bike racks and more garbage cans.

“People know they’re not supposed to litter, at least the vast majority of our tourists,” Melissa Soderston said, “We need to be focusing on things that actually improve the quality of life and not focusing on billboards and ad campaigns to tell people not to litter.”

At the start of the meeting, council received a presentation from Jeff Miner on radon in the region. The presentation defined radon, explained how it gets into homes and why it is dangerous as a class I carcinogen. It also delved into the history of radon in South Lake Tahoe. Miner said that South Lake Tahoe is sitting in a high radon risk area and explained the method for ridding existing houses of radon and as well as preventing it in new construction.

Mayor Bass issued a proclamation to the Tahoe Youth and Family Services, recognizing November 2024 as Youth Homeless Outreach Prevention Education (HOPE) month.

Also during the meeting, staff provided the quarterly update on the Affordable Housing Waitlist. Further details are provided in the article titled, Affordable housing waitlist presented to city council.

Within the consent agenda, council accepted numerous commission reports, a grant for Pioneer Trail Safety Improvement project, and authroized transferring over $173,000 of American Rescue Plan Act Funding to the Upper Bijou Park Creed Watershed Restoration Project, among other actions. Council also appropriated funds to the Tahoe Coalition for the Homeless for the Bear’s Den, Bird’s Nest and Red Lodge.

Mayor Bass adjourned the meeting encouraging everyone to go and vote.

The meeting and agenda are available on the City of South Lake Tahoe’s City Council webpage, cityofslt.us/80/City-Council.