South Lake Tahoe to spend almost $3M on new snow removal equipment

SOUTH LAKE TAHOE, Calif. - With about $8 million in unassigned General Fund reserves, the South Lake Tahoe City Council voted last week to spend about $2.5 million for the replacement of four pieces of critical snow removal equipment and the purchase of one new piece of equipment.

The Department of Public Works has thirty-one pieces of heavy equipment assigned to snow removal operations for use on roads, the airport, facilities, parks, and
trails. Some of that equipment can do double duty and work during non-winter months including loaders, pick-up trucks, and tractors.

The following will be added:

Three motor graders (Cat 160M3) at $561,000 ea.
One Kodiak Snow Blower (CR770s) at $647,000 ea.
One Snow Blower (model to be determined) for Bike Trail use at $171,000

Also approved was the appropriation of $512,000 for the early retirement of
outstanding snow removal debt, and this early retirement is recommended in order to enable the City to more effectively plan for additional snow removal equipment replacement in future years. This early retirement will "free up" approximately $262,000 for future snow removal equipment purchases.

Each year the City receives approximately $226,000 towards the replacement of snow removal equipment from a parcel tax, nothing close to the cost in 2019 to replace equipment. When the levy began a Caterpillar 163h Motor Grader could be purchased for roughly $240,000 meaning the City could have been replacing a grader each and every year with minimal support from the general fund had a CPI been in place.

A similar grader outfitted for snow removal today is estimated to cost nearly $560,000.

The reserves were created by a settlement over the 2014 fire ladder truck the City was never able to use but paid for, so in the future, the Council may consider an increase to the parcel tax to cover future replacement of snow removal equipment.

The prepare for future expenses for CALPERS and unforeseen emergencies, the City has a 25 percent reserve policy. There is approximately $10.3 million in that fund that will not be touched except for an emergency.