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Chief Administrative Office recommending the Board approve and authorize the Chair to sign a Fiscal Year (FY) 2025-26 budget transfer increasing appropriations in Contributions to Non-County Government Agencies by $25,775, using the Transient Occupancy Tax Special Projects Designation, for the El Dorado County contribution for the FY 2025-26 South Tahoe Transit Joint Powers Authority Budget. (4/5 vote required)
FUNDING: General Fund.
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DISCUSSION / BACKGROUND
On February 13, 2024, the City of South Lake Tahoe adopted Resolution 2024-022, authorizing and directing the City Manager and City Attorney to enter negotiations with El Dorado County on a Joint Exercise of Powers Agreement to establish a South Tahoe Transit Joint Powers Authority (JPA). On March 12, 2024, with Legistar file 24-0487, the El Dorado County Board of Supervisors authorized County staff to initiate negotiations with the City regarding the formation of a JPA. The general purpose of forming the JPA is to jointly implement transit services in the Lake Tahoe south shore area. On August 13, 2024, the City Council of South Lake Tahoe received an update on JPA formation discussions and terms of a potential JPA Agreement. The County Board of Supervisors received a similar update on August 27, 2024, with Legistar file 24-1514.
On October 15, 2024, with Legistar file 24-1797, the Board approved the South Tahoe Transit JPA agreement in order to improve the transit system on the south shore of Lake Tahoe. The formation of the JPA and the transfer of the funding and responsibility to provide transit on the East Slope of the County would provide for a structure similar to that on the West Slope, with the relationship between the JPA and the Tahoe Transportation District being comparable to the relationship between the El Dorado County Transportation Commission and the El Dorado County Transit Authority.
The JPA incurred initial startup costs and will have ongoing administrative costs associated with retaining legal counsel, securing indemnification insurance and financial officer bonding, and staffing (Executive Director, Treasurer, and Secretary). A cost sharing agreement for these startup costs was discussed and approved at the JPA Board meeting on January 30, 2025. The County contribution was recommended at $54,496, with the City covering the remaining $108,992, for total startup costs of $163,488. This request from the JPA was brought to the Board on April 8, 2025, with Legistar file 25-0654, during FY 2025-26 budget discussions for consideration to be included in the budget. The Board voted to not fund the County’s share of startup costs.
On August 26, 2025, the City approved funding the JPA startup costs at $150,000 during their City Council Budget Workshop to cover a portion of the County’s share and avoid terminating the agreement with the County. The City expressed the importance of the JPA and the progress made with building a better working relationship with the Tahoe Transportation District to achieve City and County goals for transit within the South Lake Tahoe area.
On October 30, 2025, the South Tahoe Transit JPA approved the FY 2025-26 budget. The total budget was approved for $77,326 with the County share of $25,775. The JPA sent a letter to the County on November 4, 2025 requesting the County contribution. This budget transfer would allow for the payment of the County contribution to the JPA’s FY 2025-26 budget.
ALTERNATIVES
The Board could choose not to approve the budget transfer; however, the County would be out of compliance with the South Tahoe Transit Joint Powers Authority agreement.
PRIOR BOARD ACTION
03/12/2024 Legistar file 24-0487
08/27/2024 Legistar file 24-1514
10/15/2024 Legistar file 24-1797
04/08/2025 Legistar file 25-0654
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Auditor-Controller’s Office
FINANCIAL IMPACT
The General Fund cost associated with this item is $25,775, which will be taken from the Transient Occupancy Tax Special Projects Designation.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon approval, Clerk of the Board to forward executed budget transfer to the Auditor Controller’s Office.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Alison Winter, Principal Management Analyst