SOUTH LAKE TAHOE, Calif. – With the resignation of former Mayor Tamara Wallace, the South Lake Tahoe City Council will begin its next meeting on October 21 at 5:30 p.m. with leadership reorganization and the filling of the vacant position and open assignments.

The Council has two choices:

  • Hold a special election to fill the position on June 2, 2026, the date of the primary election
  • Fill the position by appointment, conducting interviews at the November 18, 2025, meeting

With either scenario, the replacement councilmember would hold office until the November 2026 election.

Council will also reassign Wallace’s spots on the California Tahoe Conservancy, City Selection Committee, El Dorado LAFCO, El Dorado Countywide Oversight Board, California Tahoe Emergency Services Operations Authority (Cal Tahoe JPA), Clean Tahoe Program, Park Avenue Development Project Plaza Maintenance Association (PADMA), Tahoe Prosperity Center, and Finance Subcommittee.

On the agenda item’s staff report, City Manager Joe Irvin and Director of Finance Olga Tikhomirova stated the City of South Lake Tahoe is stable, operational, and financially sound. There has been no impact whatsoever to City funds or finances. The matter involving Ms. Wallace is related to her private employment, not the city. Our financial systems are strong and transparent.

Before her resignation, Wallace wrote in a letter that she had embezzled from her employer, Lake Tahoe Community Presbyterian Church. The church’s legal counsel said that the amount missing is about $300,000.

The City undergoes an independent financial audit every year, as required by state law (California Government Code Section 26909) and sound financial management practices. The audit is conducted by an independent, certified public accounting firm with expertise in governmental financial reporting. The firm is selected through a competitive process and operates separately from City staff or elected officials.

Council will also discuss changes to the current Vacation Home Rental (VHR) ordinance:

  • The 150-foot buffer is replaced with a cap of no more than 1,200 VHR permits in residential areas, OR the 150-foot buffer is replaced with a prohibition of properties with VHR permits being adjacent to each other.
  • A minimum age of 25 is established to rent a VHR.
  • Attached condominiums are allowed to get VHR permits unless the applicable homeowners’ association rules prohibit VHRs.
  • Requires advertising platforms to include “family-friendly” language for VHRs in residential areas.
  • Appeals of permit denials go to an independent hearing officer instead of the Planning Commission
  • Commercial and recreational areas are regulated with rules applicable to the Tourist Core Area Plan.
  • Room night reporting is required.

In addition to the changes requested above, staff made several additional edits that are consistent with these changes:

  • To complement the cap, provisions were added to establish a waitlist when the cap is reached.
  • The prohibition on permit transfers is clarified to match existing practice, where a permit may be transferred into a family trust in which an owner is a trustee for estate planning purposes.
  • The preferred application period provision has been deleted as that period has closed.

Councilmember Keith Roberts requested that a discussion item on Council opposition to California Proposition 50 (Use of Legislative Congressional Redistricting Map Amendment) be placed on a future agenda, and the request was seconded by Mayor Wallace. California Proposition 50 would amend the California Constitution to authorize temporary changes to congressional district maps.

Council will also receive a report on discussions with Heavenly Resort on annexation and parking plans for the upcoming winter.

For a complete agenda and instructions on participation, visit HERE.