SOUTH LAKE TAHOE, Calif. – The next meeting of the South Lake Tahoe City Council will take place on Tuesday, June 17, at 5:30 p.m. The meeting will be held in the Council Chambers at the airport and can also be followed on Zoom, online, and on Channel 21 (details here).
On the agenda:
Agreement with Heavenly Valley Limited Partnership for Snow Removal on Certain City Streets – The agreement presented to the City Council for consideration includes the following time and monetary aspects: Five (5) years from the Effective Date, unless earlier terminated by written mutual agreement of both Parties. Heavenly to pay $40,000 to reimburse the City for a portion of the City’s actual costs of maintaining city streets from snow removal operations by January 31st of each year of the agreement with an annual compounded increase of 4 percent. Heavenly shall pay to the City a flat fee (the Street Sweeping fee) of $3,500 for street sweeping to recover abrasives that either Heavenly or the City has put down on the streets. The Street Sweeping Fee will increase each year by 4 percent. Heavenly shall reimburse the City for the cost of any road repair work required as a result of damage caused by Heavenly’s negligent use of its snow removal or deicer equipment within thirty (30) days from Heavenly’s receipt of the undisputed invoice from the City showing repairs performed and monies due. In the event of a dispute over the nature of the charges or the reasonableness of the cost of the repair work invoiced, the parties will first attempt to resolve through good-faith negotiations. If the dispute is not resolved within 30 days of written notice to the other, either party may initiate legal action.
Ordinance Amending Vacation Home Rental Regulations Outside Tourist Core (Second Reading) and Resolution Establishing Initial Application Period for Preferred Applicants – On May 6, 2025, City Council passed a motion by a vote of 4-1 (Robbins voting no) to bring back an ordinance making the following changes to the pre-Measure T regulations that were in place as of November 2018, as they apply outside the Tourist Core: (1) Remove the cap and establish a 150-foot buffer; (2) allow condominiums to hold a VHR permit if they had one as of Sept. 1, 2016, with condominiums exempt from the 150-foot buffer; (3) In-person or virtual check-in required with either a wet or electronic signature on a Good Neighbor Contract at or before check-in, 24/7 in-person response to complaints, indoor noise monitoring, outdoor cameras for trash and parking areas, and a requirement to have an animal-resistant recycling cart when available; (4) occupancy lowered to two per bedroom,
exempting up to five children aged 13 and under; (5) eliminate the two-year waiting period from May 6 version of draft Ordinance; (6) require defensible space inspections; (7) increase consequences for violations, including providing that the owner can always be cited and rules apply to all; (8) all VHR permits will be issued by the Police Department; (9) no more than 150 permits will be issued per month;
(10) the Planning Commission will have the final decision on appeals of permit denials and revocations, and any appeal of a third citation within 24 months resulting in revocation will be heard by the Planning Commission along with any revocation appeal; (11) staff will review VHR permit fee to ensure complete
cost recovery; (12) provide permitting preference for prior VHR/QVHR permittees who were in good standing. City Council’s requested amendments are included in the attached Ordinance, for which City Council voted to hold a first reading and refer second reading and adoption to this meeting on June 3, 2025, by a vote of 3-2 (Jinkens and Robbins voting no). This item also includes a resolution to establish an initial 60-day application period for preferred applicants who previously held permits and were in good standing at the time their permit was not renewed because of Measure T.
Amendments to Vacation Home Rental Program Budget, Allocated Position Listing, and Master Fee Schedule – The proposed action would amend the FY 2024-2025 Vacation Home Rental (VHR) Program Budget and Allocated Position Listing to add necessary staffing and resources and amend the Master Fee Schedule to adjust VHR Permit and inspection fees if City Council decides in the previous item to allow an increase in the number of VHR permits from the current level. These potential
changes respond to the recent overturning of Measure T, which had previously prohibited VHRs in residential areas. With the possible expansion of VHR permitting, additional funding and personnel would be required to manage increased responsibilities related to permitting and enforcement. The proposed adjustments will ensure the VHR program continues to operate efficiently, support neighborhood quality of life, and maintain regulatory compliance. The increased costs associated with this expansion are expected to be fully offset by increased revenue from permit and inspection fees, as detailed in the staff report.
Acceptance of Grant from California Tahoe Conservancy for Regan Beach Rehabilitation Plan – On March 20, 2025, the California Tahoe Conservancy awarded a $500,000 grant to the City to bring the Regan Beach Rehabilitation Plan forward to complete the permitting, environmental review, and 60 percent engineering plans. In 2015, a Regan Beach Rehabilitation Plan was drafted, including recommendations to enhance recreational access, restore the shoreline, upgrade user amenities, and facilities. The conceptual design was developed through a comprehensive process involving public meetings, online surveys, and input from staff. Further design and environmental review are needed to implement the recommendations of this plan.
El Dorado Beach Revetment Project and Budget Allocation – In 2018, severe erosion at El Dorado Beach resulted from high northerly and easterly prevailing winds and high lake levels, leaving a large portion of the shoreline in an unsafe condition. This resulted in vertical drop-offs in excess of four feet and the potential for undermining of the structural foundations supporting the lower seating walls and ramps of the Lakeview Commons improvements. In 2018, the City made emergency repairs by installing plastic super sacks filled with sand to function as a revetment to limit further erosion and replenish the public access beach area. In late 2024/early 2025, the Lahontan Regional Water Quality Control Board notified City staff that the super sacks became exposed on the beach and that their exposure could lead to breakdown and could become a source of contaminants that could enter the lake. City staff evaluated the condition of the beach and the super sacks when the snow melted in spring 2025. Staff confirmed that the super sacks are exposed. City staff met with Lahontan for a 401 Water Quality Certification pre-filing meeting on May 20, 2025, to discuss plans to hire a consultant to assist with a temporary repair to the erosion of the beach and exposure of the super sacks. This includes creating a work plan that will include permitting with Lahontan, US Army Corps of Engineers (USACE), and TRPA, developing a site plan, and other pertinent details, including the source of the sand to cover the exposed super sacks and how replenishment of the sand will happen. Staff is requesting $75,000 to hire a consultant for the project.
Memorandum of Understanding with El Dorado County for Use of Senior Center and Coordination of Senior Services – City Parks & Recreation staff and El Dorado County Health and Human Services staff desire to enter into a Memorandum of Understanding (MOU) regarding the use of the Senior Center and the coordination of senior services. Currently, the City is the legal entity with the sole authority over the development, operation, and use of the Senior Center property leased from the County. The City and County have mutually agreed that the County will assume responsibility for the scheduling and coordination of senior activities at the Senior Center upon execution of this MOU, and with the hiring of a Limited-Term Program Coordinator.
Cannabis Tax Rate Discussion – The Cannabis Business and Professions Tax rate adopted by voters in 2022 (Measure G) is six percent of gross receipts on retail, distribution, and manufacturing, and $20 per square foot of canopy for cultivation. This rate is the maximum rate allowable. City Council may lower the rate by
resolution without voter approval. Some of the local licensed cannabis businesses expressed concern that South Lake Tahoe’s tax rate is higher than neighboring jurisdictions, potentially placing them at a competitive disadvantage, and that the state is proposing to increase the state tax from 15 percent to 19 percent on
July 1. AB 564 is pending, which would delay this increase until the 2030-2031 fiscal year. These business owners requested City Council to consider reducing the rate. Staff is seeking Council direction on whether to prepare a formal resolution to reduce the cannabis tax rate or other fees, and if so, by how much.
Currently, the City collects approximately $900,000 annually in cannabis tax revenue
from four licensed businesses. In addition to the six percent cannabis tax, businesses are responsible for:
-Public Safety Mitigation Fee: $18,750 or $26,250 (if cultivation is involved)
-Public Safety License Fee: $1,190 annually per business
These revenues help fund one dedicated police officer overseeing cannabis regulatory compliance. Under the Cannabis Community Benefit Fee Revenue Allocation Policy (adopted in May 2021), up to 50 percent of the previous year’s revenue is allocated annually to a grant program for local schools, nonprofits, and public agencies for programs or projects designed to mitigate potential impacts of the cannabis industry in South Lake Tahoe and which promote the priorities of the City Strategic Plan. The City Council has consistently allocated $400,000 annually to this grant program over the past four years. Remaining funds have supported Capital Improvement Program (CIP) projects, aligned with City priorities such as recreation, economic development, environmental sustainability, and resident services.
A reduction in the cannabis tax rate would lower annual revenues and could reduce
funding for the cannabis community grant program, capital improvement projects, and City services funded by the Cannabis Fund.
South Tahoe Refuse Final Delinquent Fees Report
For the complete agenda and participation instructions, visit https://granicus_production_attachments.s3.amazonaws.com/slt/6ee991a28fd610ef15c107f9455d196b0.pdf.