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2025.12.18 District Agenda Packet
yoVTH TA/ioF _ ei AGe`/C UT 1950 s sIT Y D S�P�G� IL SOUTH TAHOE PUBLIC UTILITY DISTRICT REGULAR BOARD MEETING AGENDA Thursday, December 18, 2025 - 2:00 p.m. District Board Room 1275 Meadow Crest Drive, South Lake Tahoe, California Joel Henderson, Director BOARD MEMBERS Kelly Sheehan, Director Nick Haven, Vice President Shane Romsos, President Nick Exline, Director Paul Hughes, General Manager Andrea Salazar, Chief Financial Officer 1 . CALL TO ORDER REGULAR MEETING- PLEDGE OF ALLEGIANCE (At this time, please silence phones and other electronic devices so as not to disrupt the business of the meeting.) 2. COMMENTS FROM THE PUBLIC (This is an opportunity for members of the public to address the Board on any short non-agenda items that are within the subject matter jurisdiction of the District. No discussion or action can be taken on matters not listed on the agenda, per the Brown Act. Each member of the public who wishes to comment shall be allotted five minutes.) 3. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR (For purposes of the Brown Act, all Action and Consent items listed give a brief description of each item of business to be transacted or discussed. Recommendations of the staff, as shown, do not prevent the Board from taking other action.) 4. ADOPTION OF CONSENT CALENDAR (Any item can be removed to be discussed and considered separately upon request. Comments and questions from members of the public, staff or Board can be taken when the comment does not necessitate separate action.) 5. CONSENT ITEMS BROUGHT FORWARD FOR SEPARATE DISCUSSION/ACTION 6. PRESENTATION -Mann, Urrutia, Nelson CPA's & Associates, LLP -2025 Fiscal Year Finance Statement Audit (Justin Willams of MUN CPAs) 7. ITEMS FOR BOARD ACTION a. Relinquishment of Unused Legacy Water Rights (Mark Seelos, Water Resources Manager and Megan Colvey, Director of Engineering) Adopt Resolution No. 3324-25, revoking six unused water rights on file with the State Water Resources Control Board. b. Sole Brand, Sole Source and Purchase of Tidal Wave Mixer From D&H Water Systems (Jeremy Rutherdale, Field Operations Mechanical Technician Supervisor) Authorize the District to standardize on Big Wave Technologies potable water mixers and authorize Big Wave Technologies, as manufactured and provided exclusively by D&H Water Systems, as the sole brand and sole source of potable water tank mixers. REGULAR BOARD MEETING AGENDA- December 18, 2025 PAGE-2 C. Resolution Confirming Water Capacity Charges and Sewer Connection Fees for Calendar Year 2026 (Ryan Lee, Customer Service Manager) Adopt Resolution 3325-25, a Resolution by the Board of Directors of the South Tahoe Public Utility District confirming the water capacity charge and sewer connection fee rates for calendar year 2026. d. 2025 Urban Water Management Plan Update (John Sheridan, Operations Supervisor) 1) Approve Task Order No. 34 to Kennedy Jenks in the amount of $85,496 for the 2025 Urban Water Management Plan Update; and 2) Authorize General Manager to execute Task Order No. 34 8. STANDING AND AD-HOC COMMITTEES AND LIAISON REPORTS (Discussions may take place; however, no action will be taken.) a. Committee Assignments (President Romsos) 9. BOARD MEMBER REPORTS (Discussions may take place; however, no action will be taken.) 10. STAFF/ATTORNEY REPORTS (Discussions may take place; however, no action will be taken.) a. Grants Update (Donielle Morse, Grant Coordinator) b. Legislative Update (Shelly Thomsen, Director of Public and Legislative Affairs) C. Water Conservation Update (Lauren Benefield, Water Conservation Specialist) 11. GENERAL MANAGER REPORT (Discussion may take place; however, no action will be taken.) 12. NOTICE OF PAST AND FUTURE MEETINGS/EVENTS Past Meetings/Events 12/04/2025-2:00 p.m. Regular Board Meeting at the District 12/16/2025-3:30 p.m. Operations Committee Meeting at the District Future Meetings/Events 12/24/2025 and 12/25/2025-Christmas Holidays District Offices Closed 01/01/2026- New Year's Holiday- District Offices Closed 01/06/2026-3:30 p.m. Operations Committee Meeting at the District 01/07/2026- 10:00 a.m. El Dorado Water Agency Board Meeting in Placerville 01/07/2026-3:30 p.m. System Efficiency and Sustainability Committee at the District 01/15/2026 - 2:00 p.m. Regular Board Meeting at the District 13. ITEMS FOR CLOSED SESSION (The Board will adjourn to Closed Session to discuss items identified below. Closed Session is not open to the public; however, an opportunity will be provided at this time if members of the public would like to comment on any item listed-three minute limit.) a. Pursuant to Section 54956.9(d)(1) of the California Government code, Closed Session may be held for conference with legal counsel regarding existing litigation: Yolo County Superior Court Case CV 2021-1686, Alpine County vs. South Tahoe Public Utility District; et al. ADJOURNMENT (The next Regular Board Meeting is Thursday, January 15, 2026,at 2:00 p.m.) The South Tahoe Public Utility District Board of Directors regularly meets the first and third Thursday of each month.A complete Agenda packet is available for review at the meeting and at the District office during the hours of 8:00 a.m.and 5:00 p.m.,Monday through Friday. A recording of the meeting is retained for 30 days after Minutes of the meeting have been approved.Items on the Agenda are numbered for identification purposes only and will not necessarily be considered in the order in which they appear. Designated times are for particular items only.Public Hearings will not be called to order prior to the time specified, but may occur slightly later than the specified time. Public participation is encouraged.Public comments on items appearing on the Agenda will be taken at the some time the Agenda items are heard;comments should be brief and directed to the specifics of the item being considered.Please provide the Clerk of the Board with REGULAR BOARD MEETING AGENDA- December 18, 2025 PAGE-3 a copy of all written materials presented at the meeting.Comments on items not on the Agenda can be heard during"Comments from the Audience;"however,action cannot be taken on items not on the Agenda. Backup materials relating to an open session item on this Agenda,which are not included with the Board packet,will be made available for public inspection at the same time they are distributed or made available to the Board,and can be viewed at the District office,at the Board meeting and upon request to the Clerk of the Board. The meeting location is accessible to people with disabilities. Every reasonable effort will be made to accommodate participation of the disabled in all of the District's public meetings.If particular accommodations are needed,please contact the Clerk of the Board at(530) 544-6474,extension 6203.All inquiries must be made at least 48 hours in advance of the meeting. REGULAR BOARD MEETING AGENDA - December 18, 2025 PAGE -4 �06 rA11 t ec AGe<'c r • 1 9 5 0 S�P�G� UTILITY D� SOUTH TAHOE PUBLIC UTILITY DISTRICT CONSENT CALENDAR Thursday, December 18, 2025 ITEMS FOR CONSENT a. RECEIVE AND FILE PAYMENT OF CLAIMS (Greg Dupree, Accounting Manager) Receive and file Payment of Claims in the amount of $3,353,876.20. b. REGULAR BOARD MEETING MINUTES: December 4, 2025 (Melanie Guttry, Executive Services Manager/Clerk of the Board) Approve December 4, 2025, Minutes. PAYMENT OF CLAIMS FOR APPROVAL December 18, 2025 Payroll 12/9/25 840,552.54 Total Payroll 840,552.54 AFLAC/WageWorks claims and fees 105.00 Cal Bank & Trust fiscal agent fees 196,074.44 Ameritas - Insurance Payments 6,589.60 Total Vendor EFT 202,769.04 Weekly Approved Check Batches Water Sewer Total Wednesday, November 26, 2025 363,240.14 394,273.82 757,513.96 Wednesday, December 3, 2025 1,440,958.12 97,894.89 1,538,853.01 Checks, Voids and Reissues -259.00 11,254.04 10,995.04 Total Accounts Payable Checks 2,307,362.01 Utility Management Refunds 3,192.61 Total Utility Management Checks 3,192.61 Grand Total $3,353,876.20 Payroll EFTs & Checks 12/9/2025 EFT CA Employment Taxes &W/H 46,920.74 EFT Federal Employment Taxes &W/H 191,406.67 EFT CalPERS Contributions 94,191.18 EFT Empower Retirement-Deferred Comp 33,664.22 EFT Stationary Engineers Union Dues 3,201.67 EFT CDHP Health Savings (HSA) 5,868.24 EFT Retirement Health Savings 20,779.40 EFT Employee Direct Deposits 387,174.20 CHK Employee Garnishments 159.23 CHK Employee Paychecks 57,186.99 Total 840,552.54 �OVTH TA110 Payment of Claims _ Payment Date Range 11/26/25 - 12/10/25 syy - Report By Vendor - Invoice e� AGe@wer 1950 `G�C Summary Listing �7C UTILITY DES" Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount Vendor 50362-ALCORN GENERAL ENGINEERING 25-12C Asphalt Patching Contract Paid by Check#115167 10/22/2025 11/26/2025 11/30/2025 11/26/2025 20,500.00 25-12CR Asphalt Patching Contract Paid by Check#115167 10/22/2025 11/26/2025 11/30/2025 11/26/2025 (1,025.00) Retainage Vendor 50362-ALCORN GENERAL ENGINEERING Totals Invoices 2 $19,475.00 Vendor 43949-ALPEN SIERRA COFFEE ROASTING CO 251432 Office Supply Issues Paid by EFT#5681 11/18/2025 11/26/2025 11/30/2025 11/26/2025 164.19 251433 Office Supply Issues Paid by EFT#5681 11/18/2025 11/26/2025 11/30/2025 11/26/2025 78.65 251590 Office Supply Issues Paid by EFT#5723 11/25/2025 12/03/2025 11/30/2025 12/03/2025 78.65 251591 Office Supply Issues Paid by EFT#5723 11/25/2025 12/03/2025 11/30/2025 12/03/2025 138.50 Vendor 43949-ALPEN SIERRA COFFEE ROASTING CO Totals Invoices 4 $459.99 Vendor 49874-AMACKER CONSTRUCTION 11042025 Grounds&Maintenance Paid by EFT#5682 11/04/2025 11/26/2025 11/30/2025 11/26/2025 11,294.63 Vendor 49874-AMACKER CONSTRUCTION Totals Invoices 1 $11,294.63 Vendor 49337-AMAZON CAPITAL SERVICES INC 1CNQ-C6QN-CKQM District Computer Supplies Paid by EFT#5724 11/03/2025 12/03/2025 11/30/2025 12/03/2025 13.40 1XYD-D4FV-PRDY District Computer Supplies Paid by EFT#5683 11/14/2025 11/26/2025 11/30/2025 11/26/2025 198.30 1PCL-NHCJ-XKVL District Computer Supplies Paid by EFT#5683 11/15/2025 11/26/2025 11/30/2025 11/26/2025 124.64 1MPC-YWQX-KFJD District Computer Supplies Paid by EFT#5683 11/17/2025 11/26/2025 11/30/2025 11/26/2025 315.98 1P1X-VMWQ-9KLM District Computer Supplies Paid by EFT#5683 11/18/2025 11/26/2025 11/30/2025 11/26/2025 43.14 IQCQ-LUY-C113 Shop Supplies Paid by EFT#5683 11/18/2025 11/26/2025 11/30/2025 11/26/2025 30.27 IMKY-M97C-HWYR Shop Supplies Paid by EFT#5724 11/20/2025 12/03/2025 11/30/2025 12/03/2025 763.45 11XH-7GLQ-QIHW Shop Supplies Paid by EFT#5724 11/23/2025 12/03/2025 11/30/2025 12/03/2025 576.32 1D1D-1T9D-LCR1 Shop Supplies Paid by EFT#5724 11/24/2025 12/03/2025 11/30/2025 12/03/2025 64.50 Vendor 49337-AMAZON CAPITAL SERVICES INC Totals Invoices 9 $2,130.00 Vendor 47919-AQUATIC INFORMATICS INC 115138 Service Contracts Paid by EFT#5684 10/08/2025 11/26/2025 11/30/2025 11/26/2025 145.00 115542 Service Contracts Paid by EFT#5684 11/06/2025 11/26/2025 11/30/2025 11/26/2025 188.00 Vendor 47919-AQUATIC INFORMATICS INC Totals Invoices 2 $333.00 Vendor 45202-AT&T MOBILITY 287257798939 N25 Telephone Paid by EFT#5725 11/19/2025 12/03/2025 11/30/2025 12/03/2025 184.41 Vendor 45202-AT&T MOBILITY Totals Invoices 1 $184.41 Vendor 48000-AT&T/CALNET 3 000024390494 Telephone Paid by EFT#5726 11/15/2025 12/03/2025 11/30/2025 12/03/2025 32.37 000024390495 Telephone Paid by EFT#5726 11/15/2025 12/03/2025 11/30/2025 12/03/2025 32.37 000024396592 Telephone Paid by EFT#5726 11/20/2025 12/03/2025 11/30/2025 12/03/2025 32.44 000024396594 Telephone Paid by EFT#5726 11/20/2025 12/03/2025 11/30/2025 12/03/2025 921.46 000024396595 Telephone Paid by EFT#5726 11/20/2025 12/03/2025 11/30/2025 12/03/2025 118.31 000024396848 Signal Charges Paid by EFT#5726 11/20/2025 12/03/2025 11/30/2025 12/03/2025 31.54 Vendor 48000-AT&T/CALNET 3 Totals Invoices 6 $1,168.49 Vendor 48612-AUTOMATION DIRECT 18635479 Pump Stations Paid by EFT#5727 11/20/2025 12/03/2025 11/30/2025 12/03/2025 1,160.91 Run by Erika Franco on 12/10/2025 04:36:16 PM Page 1 of 10 �OVTH TaH0F Payment of Claims _ Payment Date Range 11/26/25 - 12/10/25 Report By Vendor - Invoice e� AGe0"er 1950 Wa°'`G� Summary Listing '-'C UTILITY 0191 Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount Vendor 48612-AUTOMATION DIRECT Totals Invoices 1 $1,160.91 Vendor 48383-AWWA S0262454 Dues-Memberships- Paid by Check#115168 10/03/2025 11/26/2025 11/30/2025 11/26/2025 5,233.00 Certification Vendor 48383-AWWA Totals Invoices 1 $5,233.00 Vendor 50103-AZUL ELECTRIC SUPPLY LLC 011489 Repair-Maintenance Water Paid by EFT#5685 11/19/2025 11/26/2025 11/30/2025 11/26/2025 224.07 Tanks 011578 Shop Supplies Paid by EFT#5728 11/26/2025 12/03/2025 11/30/2025 12/03/2025 70.95 Vendor 50103-AZUL ELECTRIC SUPPLY LLC Totals Invoices 2 $295.02 Vendor 49702-B&T SALES AND SERVICE INC 33909 Service Contracts Paid by EFT#5729 09/30/2025 12/03/2025 11/30/2025 12/03/2025 1,520.00 Vendor 49702-B&T SALES AND SERVICE INC Totals Invoices 1 $1,520.00 Vendor 49419-BEND GENETICS LLC ST2519 Monitoring Paid by EFT#5686 11/21/2025 11/26/2025 11/30/2025 11/26/2025 825.00 Vendor 49419-BEND GENETICS LLC Totals Invoices 1 $825.00 Vendor 45009-BENTLY RANCH 213816 Biosolid Disposal Costs Paid by EFT#5687 11/20/2025 11/26/2025 11/30/2025 11/26/2025 1,037.40 213832 Biosolid Disposal Costs Paid by EFT#5730 11/24/2025 12/03/2025 11/30/2025 12/03/2025 999.45 Vendor 45009-BENTLY RANCH Totals Invoices 2 $2,036.85 Vendor 50356-BESST INC STPUD112525 Test Wells(0) Paid by EFT#5731 11/25/2025 12/03/2025 11/30/2025 12/03/2025 4,000.00 Vendor 50356-BESST INC Totals Invoices 1 $4,000.00 Vendor 42328-CDW-G CORP AF7UX5G Computer Purchases Paid by EFT#5688 08/30/2025 11/26/2025 11/30/2025 11/26/2025 1,223.88 Vendor 42328-CDW-G CORP Totals Invoices 1 $1,223.88 Vendor 48672-CINTAS CORP 5302819803 Safety Equipment-Physicals Paid by EFT#5689 11/13/2025 11/26/2025 11/30/2025 11/26/2025 377.98 Vendor 48672-CINTAS CORP Totals Invoices 1 $377.98 Vendor 48948-ROSS COLE TRAVELEXP 110625 Travel-Meetings-Education Paid by EFT#5690 11/19/2025 11/26/2025 11/30/2025 11/26/2025 2,565.68 Vendor 48948- ROSS COLE Totals Invoices 1 $2,565.68 Vendor 48181-CONSTRUCTION MATERIALS ENG INC 18635 Bijou#1 Waterline Paid by EFT#5691 09/04/2025 11/26/2025 11/30/2025 11/26/2025 500.00 19164 Gardner No. 2 Tank Coatings Paid by EFT#5691 11/07/2025 11/26/2025 11/30/2025 11/26/2025 6,635.00 Vendor 48181-CONSTRUCTION MATERIALS ENG INC Totals Invoices 2 $7,135.00 Vendor 50279-COONS CONSTRUCTION LLC C25-0480 Base,Spoils,and Hauling Paid by EFT#5692 11/07/2025 11/26/2025 11/30/2025 11/26/2025 8,238.22 Vendor 50279-COONS CONSTRUCTION LLC Totals Invoices 1 $8,238.22 Vendor 42897-CWEA 435138 CSM1 2025 Dues-Memberships- Paid by Check#115169 11/12/2025 11/26/2025 11/30/2025 11/26/2025 114.00 Certification Run by Erika Franco on 12/10/2025 04:36:16 PM Page 2 of 10 OT do E a6ed Wd 91:9£ 70 SZOZ/01/ZT uo oouead qp!]Aq unb OS'TOE'TLb SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/TE/OT 8ELS#133 Aq P1ed (Ex)s!!aM Isal b'EO-9Z all 9NI11I21a 993b9-TSVOS aopuaA S0'08L'S$ T sa:)!onul slelol 0:)NOI1:)ntl.LSN0:)31INV219-£Ob£b aopuaA S0'08L'S SZOZ/9Z/TT SZOZ/OE/TT SZOZ/9Z/TT SZOZ/6Z/60 L69S#133 Aq Pled 6u!lneH pue's!!odS'ase9 ESOE60E 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T SaD!onuI slelol 3:)IA113S IB S31VS Sdwnd NOIV3-t££OS aopuaA 8b'968'TE SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/9Z/60 EELS#133 Aq P1ed Ilelsul dwnd IIaM gnlD ql3 Ti7TTOTANI 33IAH3S18 S31VS Sdwnd NO1V3-ti££OS aopuaA OZ'EZ$ T Sa:)!onuI slelol IVSOdSIa SVlgnoa-6b9£b aopuaA OZ'£Z SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/TO/TT ZELS#iA Aq P1ed lesods!(]asnla�l 9EST8Z IVSOdSIa SVlgnoa-6V9£b aopuaA 00'j7TT$ T saa!onuI slelol V3M:)-L68ZV aopuaA IunowV IaN an!onul ale(]IuawAed ale(] panlaaab ale(]I/g ale(]an(] ale(]aa!onul uoseall PlaH snlelS uo!IduDsa(] aDionul aagwnN aZ)!onul to builsil AjewwnS yo�'�esMa 0s6111/1 41to ' OD!OAUi - aopuaA Ae Taoda-d s SZ/OT/ZT - SZ/9Z/TT a6ued area TuauaAed F_ K- stuiel:) jo juaLuAed 0Hbl H100 �OVTH TaH0F Payment of Claims _ Payment Date Range 11/26/25 - 12/10/25 Report By Vendor - Invoice e� AGe0"er 1950 Wa°'`G� Summary Listing '-7C UTILITY 0191 Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 26-03AR Test Wells(x3) Retainage Paid by EFT#5738 10/31/2025 12/03/2025 11/30/2025 12/03/2025 (23,565.07) Vendor 50451-GREGG DRILLING LLC Totals Invoices 2 $447,736.43 Vendor 44430- HIGH SIERRA BUSINESS SYSTEMS 147857 Service Contracts Paid by EFT#5698 08/04/2025 11/26/2025 11/30/2025 11/26/2025 110.53 Vendor 44430-HIGH SIERRA BUSINESS SYSTEMS Totals Invoices 1 $110.53 Vendor 43208-IN-SITU INC INV121276 Laboratory Equipment Paid by EFT#5739 11/12/2025 12/03/2025 11/30/2025 12/03/2025 486.88 Vendor 43208-IN-SITU INC Totals Invoices 1 $486.88 Vendor 44110-J&L PRO KLEEN INC 40184 Janitorial Services Paid by EFT#5699 11/15/2025 11/26/2025 11/30/2025 11/26/2025 4,992.83 Vendor 44110-J&L PRO KLEEN INC Totals Invoices 1 $4,992.83 Vendor 47947-JACK HENRY&ASSOC.INC 5110135 Service Contracts Paid by EFT#5700 10/31/2025 11/26/2025 11/30/2025 11/26/2025 343.44 Vendor 47947-JACK HENRY&ASSOC.INC Totals Invoices 1 $343.44 Vendor 50352-JENSEN INFRASTRUCTURE CD99303222 Manhole Frames-Lids-Other Paid by EFT#5701 10/23/2025 11/26/2025 11/30/2025 11/26/2025 1,597.99 Parts Inventory Vendor 50352-JENSEN INFRASTRUCTURE Totals Invoices 1 $1,597.99 Vendor 50470-JOE BENIGNOS TREE SERVICE 881 Wells Paid by EFT#5702 11/06/2025 11/26/2025 11/30/2025 11/26/2025 2,950.00 Vendor 50470-JOE BENIGNOS TREE SERVICE Totals Invoices 1 $2,950.00 Vendor 43694-KIMBALL MIDWEST 103940643 Shop Supplies Paid by EFT#5703 11/17/2025 11/26/2025 11/30/2025 11/26/2025 184.28 103942885 Shop Supplies Paid by EFT#5703 11/17/2025 11/26/2025 11/30/2025 11/26/2025 580.21 Vendor 43694-KIMBALL MIDWEST Totals Invoices 2 $764.49 Vendor 48719-LABWORKS LLC LW-4439 Service Contracts Paid by EFT#5740 10/24/2025 12/03/2025 01/31/2026 12/03/2025 15,000.00 Vendor 48719-LABWORKS LLC Totals Invoices 1 $15,000.00 Vendor 49725-LAKESIDE TERMITE&PEST CONTROL 019242699 Buildings Paid by EFT#5704 11/20/2025 11/26/2025 11/30/2025 11/26/2025 150.00 Vendor 49725-LAKESIDE TERMITE&PEST CONTROL Totals Invoices 1 $150.00 Vendor 22550-LIBERTY UTILITIES 200008899078 025 Electricity Paid by Check#115170 11/10/2025 11/26/2025 11/30/2025 11/26/2025 55.79 200008899169 025 Electricity Paid by Check#115170 11/10/2025 11/26/2025 11/30/2025 11/26/2025 52.56 200008899235 025 Electricity Paid by Check#115174 11/10/2025 12/03/2025 11/30/2025 12/03/2025 4.12 200008899391 025 Electricity Paid by Check#115170 11/10/2025 11/26/2025 11/30/2025 11/26/2025 587.06 200008899649 025 Electricity Paid by Check#115170 11/10/2025 11/26/2025 11/30/2025 11/26/2025 216.86 200008899847 025 Electricity Paid by Check#115174 11/10/2025 12/03/2025 11/30/2025 12/03/2025 1.95 200008913424 025 Electricity Paid by Check#115170 11/10/2025 11/26/2025 11/30/2025 11/26/2025 721.95 200008913887 025 Electricity Paid by Check#115170 11/10/2025 11/26/2025 11/30/2025 11/26/2025 203.21 200008919025 025 Electricity Paid by Check#115173 11/10/2025 12/03/2025 11/30/2025 12/03/2025 652.36 200008919983 025 Electricity Paid by Check#115170 11/10/2025 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SZOZ/LT/TT bLTSTT#1:)@qD Aq Ped SZO ESZK680000Z 08'66E SZOZ/9Z/TT SZOZ/OE/TT SZOZ/9Z/TT SZOZ/bT/TT OLTSTT#1:)@qD Aq Ped SZO 6SE6168000OZ LZ'988'T SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/bT/TT ELTSTT#M:)@qD Aq Ped SZO ST"0680000Z TT'8T SZOZ/9Z/TT SZOZ/OE/TT SZOZ/9Z/TT SZOZ/OT/TT OLTSTT#M:)@qD Aq P1ed Al!o!aloa13 SZO ZZOLE68000OZ lunowy IaN aolonul area IuawAed area panlaoab alea l/g ale(]and area aolonul uosMd plaH snlelS uolldlaosad aolonul aagwnN aolonul to All-ll.Ln bUljSij AJ2wwnS 'QM • 096 t • 0 aDionui - aopuaA Aq Taoda� _ SZ/OT/ZT - SZ/9Z/TT a6u2,d @12(1 TuaWAed stuiel:) jo juaLuAed 0Hbl Hl00 �OVTH TaH0F Payment of Claims _ Payment Date Range 11/26/25 - 12/10/25 Report By Vendor - Invoice e� AGe0"er 1950 Wa°'`G� Summary Listing '-'C UTILITY 0191 Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount Vendor 49961-PLATINUM ADVISORS LLC 39487 Public Relations Expense Paid by EFT#5746 12/01/2025 12/03/2025 12/31/2025 12/03/2025 1,000.00 Vendor 49961-PLATINUM ADVISORS LLC Totals Invoices 1 $1,000.00 Vendor 50242-PUBLIC HEALTH INSTITUTE 072358 Contractual Services Paid by EFT#5708 11/05/2025 11/26/2025 11/30/2025 11/26/2025 75,000.00 Vendor 50242-PUBLIC HEALTH INSTITUTE Totals Invoices 1 $75,000.00 Vendor 49881-QCS LLC 28527 Buildings Paid by EFT#5709 11/05/2025 11/26/2025 11/30/2025 11/26/2025 1,240.00 Vendor 49881-QCS LLC Totals Invoices 1 $1,240.00 Vendor 48443-QUALITY CONTROL SERVICES INC QCS4269 Laboratory Equipment Paid by EFT#5747 08/22/2025 12/03/2025 11/30/2025 12/03/2025 402.52 Vendor 48443-QUALITY CONTROL SERVICES INC Totals Invoices 1 $402.52 Vendor 49497-REGULATORY INTELLIGENCE LLC STPUD1025 Advisory Paid by EFT#5710 10/15/2025 11/26/2025 11/30/2025 11/26/2025 9,632.13 Vendor 49497-REGULATORY INTELLIGENCE LLC Totals Invoices 1 $9,632.13 Vendor 48144-RELIANCE STANDARD NOV2025 Voluntary Life Payable Paid by Check#115172 11/14/2025 11/26/2025 11/30/2025 11/26/2025 981.27 NOV25A LTD/Life Insurance Management Paid by Check#115172 11/14/2025 11/26/2025 11/30/2025 11/26/2025 2,862.24 NOV25B LTD/Life Insurance Union/Board Paid by Check#115172 11/14/2025 11/26/2025 11/30/2025 11/26/2025 3,404.74 Payable Vendor 48144-RELIANCE STANDARD Totals Invoices 3 $7,248.25 Vendor 41696-RESOURCE DEVELOPMENT CO LLC 26-04A Al Tahoe/Bayview Backup Power Paid by EFT#5748 10/31/2025 12/03/2025 11/30/2025 12/03/2025 95,525.00 26-04AR Al Tahoe/Bayview Backup Power Paid by EFT#5748 10/31/2025 12/03/2025 11/30/2025 12/03/2025 (4,776.25) Retainage 26-04B Al Tahoe Well Rehab Paid by EFT#5748 10/31/2025 12/03/2025 11/30/2025 12/03/2025 39,750.00 26-04BR Al Tahoe Well Rehab Retainage Paid by EFT#5748 10/31/2025 12/03/2025 11/30/2025 12/03/2025 (1,987.50) Vendor 41696- RESOURCE DEVELOPMENT CO LLC Totals Invoices 4 $128,511.25 Vendor 50251- RICHARDS WATSON&GERSHON 255882 Legal Services October 2025 Paid by EFT#5711 11/18/2025 11/26/2025 10/31/2025 11/26/2025 23,269.02 251702 Legal Services January 2025 Paid by EFT#5711 11/26/2025 12/03/2025 11/30/2025 11/26/2025 8,054.99 252513 Legal Services March 2025 Alpine Paid by EFT#5711 11/26/2025 12/03/2025 11/30/2025 11/26/2025 11,543.72 252514 Legal Services March 2025 Liberty Paid by EFT#5711 11/26/2025 12/03/2025 11/30/2025 11/26/2025 15,405.00 Vendor 50251-RICHARDS WATSON&GERSHON Totals Invoices 4 $58,272.73 Vendor 48684-RS AMERICAS INC 9021465339 Pump Stations Paid by EFT#5749 11/14/2025 12/03/2025 11/30/2025 12/03/2025 758.25 Vendor 48684-RS AMERICAS INC Totals Invoices 1 $758.25 Vendor 50473-SGS NORTH AMERICA INC. LV335755 Monitoring Paid by EFT#5750 11/06/2025 12/03/2025 11/30/2025 12/03/2025 258.00 Vendor 50473-SGS NORTH AMERICA INC.Totals Invoices 1 $258.00 Vendor 22655-SIERRA TAHOE READY MIX 95951 Pipe-Covers &Manholes Paid by EFT#5712 10/24/2025 11/26/2025 11/30/2025 11/26/2025 1,133.72 Run by Erika Franco on 12/10/2025 04:36:16 PM Page 6 of 10 OT do L a6ed Wd 91:9E 70 SZ0Z/0T/ZT uo oouea3 qpl ]Aq unb OS'E8L'E SZOZ/9Z/TT SZOZ/OE/ii SZOZ/9Z/ii SZOZ/Ti/TT LTLS#133 Aq P1ed aTlaolyaodAH 9i950T00bSZ0Z :)NI V(3VA3N d0 ANVdWO:)IJ3H:)1VH1-OZb6b aopuaA 6Z'ObT$ T saa!onuI sleTol 3:)IA213S-100d 30HV1-09S8b aopuaA 6Z'OtiT SZOZ/9Z/TT SZOZ/OE/TT SZOZ/9Z/TT SZOZ/OZ/TT 9TLS#J.3 Aq P1ed sllaM TTOS6 3:)IAM3S-100d 30HV1-09S8b aopuaA T8'0tiZ'Ei$ S SaalonuI sleTol 3 HAN3S 213NIV1N0:)NISVB 30HV1-OSObZ aopuaA 00,8E SZOZ/EO/ZT SZOZ/OE/Ti SZOZ/EO/ZT SZOZ/TO/TT LSLS#133 Aq P1ed lesods!4 asniab Oi0L8Z 00,0E SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/Zi SZOZ/TO/TT LSLS#J=j3 Aq pled lesods!4 asniab 86998Z OS'ZE SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/TO/Ti LSLS#JL�3 Aq P1pd lesods!4 asniad Lb998Z ES'9Eb SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/TO/TT LSLS#J=3 Aq pled lesods!4 asniab 96S98Z 8L'£OL'Zi SZOZ/£0/ZT SZOZ/OE/Ti SZOZ/EO/Zi SZOZ/TO/TT LSLS#J=3 Aq pled slso�lesods!4 p!loso!9 E6S98Z 3MA213S b3NIV1N0:)NISVB 30HV1-OSObZ aopuaA 00'OSZ'LbT$ Z SaalonuI Slelol:)NI 0:)NOIn11211SNOD S'81-86LLb aopuaA a6eulelay (00'OSL'L) SZ0Z/9Z/TT SZOZ/OE/TT SZOZ/9Z/TT SZOZ/TE/Oi STLS#J�3 Aq P1ed ge4ad Sd aannaS aalanal aaddfl 'dV9Z-£Z 00'000'SST SZ0Z/9Z/TT SZOZ/OE/TT SZOZ/9Z/TT SZOZ/TE/Oi STLS#J=13 Aq P1ed ge4ad Sd aaMaS aalanal aaddn v9Z-£Z :)NI 0:)NoinnNISN0:)S'81-86LLb aopuaA 00'E9S$ T SaalonuI sleTol 33Idd0 JNI1Nnoxw 8321MS-T8b8b aopuaA 00'E95 SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/6T/TT 9SLS#ld3 Aq P1ed 6u!SSOJD aaMaS N@@JD aellel ZZb60EO-dM 3:)Idd0 9NIimno:):)V 8m1MS-T8b8b aopuaA 06'LZE'6$ T SaalonuI SleTol S3:)N3I:)S 1131VMIIIIS-6L£OS aopuaA 06'LZE'6 SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/SZ/Ti SSLS#ld3 Aq P1ed smuuaSlenpea;uoD SOTObZTT S3:)N3I:)S 1131VMIIIIS-6L£OS aopuaA SE'TZL'ET$ ET Sa:)lonul sleTol SV91S3MH1f10S-89TSb aopuaA bZ'ZZT SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/9Z/Ti bSLS#J�3 Aq Pled SeE)leanleN SZN OLLS98000OT6 Ob'191 SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/9Z/Ti bSLS#J=13 Aq Pled SeE)Iean;eN SZN Z06SLT000016 8L'99L SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/9Z/TT SSLS#J�3 Aq Pled SeE)Iean;eN SZN bLSSLT000016 ET'ZTE'T SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/bZ/TT bSLS#J�3 Aq Pled SeE)Iean;eN SZN 99SIZOS00016 bb'S9E'6 SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/bZ/TT SSLS#J=13 Aq Pled SeE)Iean;eN SZN 0966Zb0000T6 LS'811 SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/bZ/TT bSLS#J=13 Aq Pled SeE)lean;eN SZN 6S66Zb0000T6 OT'T61'T SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/bZ/TT SSLS#J�3 Aq Pled SeE)Iean;eN SZN ZOSTZb000016 Z8'8LE SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/TZ/TT ZSLS#J�3 Aq Pled SeE)Iean;eN SZN 9TH6T000016 bT'SZT SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/OZ/TT TSLS#J=13 Aq Pled SeE)Iean;eN SZN 6£T91b000016 80'OL SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/6T/TT ZSLS#J=13 Aq Pled SeE)Iean;eN SZN SE9SOOS00016 ET'Zt SZOZ/EO/ZT SZOZ/OE/TT SZOZ/EO/ZT SZOZ/6T/TT ZSLS#J�3 Aq Pled SeE)Iean;eN SZN SOUMV00016 ZS'9S SZ0Z/9Z/TT SZOZ/OE/TT SZOZ/9Z/TT SZOZ/LT/TT bTLS#J=13 Aq Pled SeE)Iean;eN SZN Z809Zb000016 00'TT SZ0Z/9Z/TT SZOZ/OE/TT SZOZ/9Z/TT SZOZ/bT/TT bTLS#J=13 Aq Pled SeE)Iean;eN SZN Z98TV9b00016 SVJ 1S3MH1110S-89TSb aopuaA S6'ZL8'ZE$ T saa!onuI SleTol all SIN310S-b6Sbb aopuaA S6'ZL8'ZE SZOZ/9Z/TT SZOZ/OE/TT SZOZ/9Z/11 SZOZ/60/60 ETLS#iA Aq Pled aawAlod E£76LT0066 all SIN3lOS-b6Sbb aopuaA ZL'EET'T$ T Sa:)!onul slelol XIW A0V3d 30Htl1 V'H113IS-SS9ZZ aopuaA IunowV ION Onlonul area IuawAed area paA!a:)ab area I/g ale(]an(] area aa!onul uoseab plaH sn}eIS uollduosaa aDionul aagwnN ao!onul 6uilsil AjewwnS yo�'�ssMa 096 t - 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aopuaA Aq Taoda� _ SZ/OT/ZT - SZ/9Z/TT @sued area 4u@wA2d stuiel:) jo juaLuAed 0 IVI H -L00 �OVTH TaH0F Payment of Claims _ Payment Date Range 11/26/25 - 12/10/25 Report By Vendor - Invoice e� AGe0"er 1950 Wa°'`G� Summary Listing '-7C UTILITY 0191 Invoice Number Invoice Description Status Held Reason Invoice Date Due Date G/L Date Received Date Payment Date Invoice Net Amount 32030676 Shop Supplies Paid by EFT#5721 11/18/2025 11/26/2025 11/30/2025 11/26/2025 8.62 32038729 Wells Paid by EFT#5764 11/24/2025 12/03/2025 11/30/2025 12/03/2025 50.13 32039653 Wells Paid by EFT#5764 11/24/2025 12/03/2025 11/30/2025 12/03/2025 15.89 32039792 Wells Paid by EFT#5764 11/24/2025 12/03/2025 11/30/2025 12/03/2025 35.92 11986598 Pipe-Covers &Manholes Paid by EFT#5764 11/25/2025 12/03/2025 11/30/2025 12/03/2025 9,261.59 Vendor 25850-WESTERN NEVADA SUPPLY Totals Invoices 10 $21,722.04 Vendor 42323-WHITE ROCK CONSTRUCTION 23-20A Paloma Well Generator Paid by EFT#5722 11/06/2025 11/26/2025 11/30/2025 11/26/2025 14,537.56 23-20AR Paloma Well Generator Retainage Paid by EFT#5722 11/06/2025 11/26/2025 11/30/2025 11/26/2025 (726.88) 23-20B Test Wells(x3) Paid by EFT#5722 11/06/2025 11/26/2025 11/30/2025 11/26/2025 15,494.59 23-20BR Test Wells(x3) Retainage Paid by EFT#5722 11/06/2025 11/26/2025 11/30/2025 11/26/2025 (774.73) 23-20C Outlet Structures Rehab(HPR) Paid by EFT#5722 11/06/2025 11/26/2025 11/30/2025 11/26/2025 82,053.93 23-20CR Outlet Structures Rehab(HPR) Paid by EFT#5722 11/06/2025 11/26/2025 11/30/2025 11/26/2025 (4,102.69) Retainage 23-20D Water Reuse Diamond Ditch Paid by EFT#5722 11/06/2025 11/26/2025 11/30/2025 11/26/2025 3,032.78 Rehab 23-20DR Water Reuse Diamond Ditch Paid by EFT#5722 11/06/2025 11/26/2025 11/30/2025 11/26/2025 (151.64) Rehab Retainage Vendor 42323-WHITE ROCK CONSTRUCTION Totals Invoices 8 $109,362.92 Grand Totals Invoices 229 $2,296,366.97 Glaze Starlet Chk#115176 11_254.04 Kallas Rachel EFT#5375 (259 00) 12118/2025 P_O.C.Total S 2,307,362.01 Run by Erika Franco on 12/10/2025 04:36:16 PM Page 10 of 10 y0uTH TAk01950 S AGet'C UTILITY D STP` SOUTH TAHOE PUBLIC UTILITY DISTRICT Joel Henderson, Director BOARD MEMBERS Kelly Sheehan, Director Nick Haven, Vice President Shane Romsos, President Nick Exline, Director Paul Hughes, General Manager Andrea Salazar, Chief Financial Officer REGULAR MEETING OF THE BOARD OF DIRECTORS SOUTH TAHOE PUBLIC UTILITY DISTRICT December 4, 2025 MINUTES The South Tahoe Public Utility District Board of Directors met in a regular session, 2:00 p.m., at the District Office, located at 1275 Meadow Crest Drive, South Lake Tahoe, California. ROLL CALL: Board of Directors: President Romsos, Directors Haven, Henderson, Sheehan, Exline Staff: Paul Hughes, Andrea Salazar, Ryan Jones, Melonie Guttry, Shannon Chandler, Adrian Combes, Megan Colvey, Brent Goligoski, Mark Seelos, Laura Hendrickson, Richard Jones IV, Ryan Lee, Donielle Morse, Chris Skelly, Taylor Jaime, Chris Stanley, Kilty Devine, Kyle Ostberg, Greg Dupree, Brian Bartlett, Dan Arce and Lauren Benefield. Guests: Dave Peterson. 1. PLEDGE OF ALLEGIANCE: 2. COMMENTS FROM THE PUBLIC: None 3. CORRECTIONS TO THE AGENDA OR CONSENT CALENDAR: Item 9.c. Legislative Update and Item 12.a. were pulled from the Agenda. 4. ADOPTION OF CONSENT CALENDAR: Moved Sheehan/Second Exline/Henderson Yes/Haven Yes/Romsos Yes/Sheehan Yes/Exline Yes to approve the Consent Calendar as amended. a. LEAD SERVICE LINE INVENTORY (Adrian Combes, Director of Operations) 1) Approved Task Order No. 1 A to Truepani, Inc. in the amount of $18,100; and 2) Authorized General Manager to execute Task Order No. 1 A. b. RECEIVE AND FILE PAYMENT OF CLAIMS (Greg Dupree,Accounting Manager) Received and filed Payment of Claims in the amount of $5,112,023.33. c. REGULAR BOARD MEETING MINUTES: October 16, 2025 (Melonie Guttry, Executive Services Manager/Clerk of the Board) Approved October 16, 2025, Minutes. REGULAR BOARD MEETING MINUTES: December 4, 2025 PAGE-2 5. CONSENT ITEMS BROUGHT FORWARD FOR SEPARATE DISCUSSION/ACTION: None 6. ITEMS FOR BOARD ACTION: a. Public Health Goals Report (Adrian Combes, Director of operations)-President Romsos opened the Public Hearing at 2:01 p.m. to receive comments regarding the Public Health Goals Report. Adrian Combes explained the new requirements of the Public Health Goals Report and presented slides and data specific to the District. Adrian Combes and Dan Arce responded to clarifying questions from the Board and explained constituent reporting requirements; the differences between the Consumer Confidence Report and the Public Health Goals Report; and the District's efforts toward continuously improving maximum constituent levels (MCLs). A public comment was received from Dave Peterson who recommended the District create guidelines or policy for how to use the MCLs data for achieving the Public Health Goals. A brief discussion ensued, and the Public Hearing was closed at 2:25 p.m. b. 2025 Asphalt Patching and Trench Paving Services Contract - (Adrian Combes, Director of Operations) Adrian Combes provided details regarding the 2025 Asphalt Patching and Trench Paving Services Contract and answered questions from the Board. The Board requested contingency language for similar future Contracts. Moved Sheehan/Second Haven/Henderson Yes/Haven Yes/Romsos Yes/Sheehan Yes/Exline Yes to Approve (1) Change Order No. 3 in the amount of $158,750 to Alcorn General Engineering; and 2) Authorize General Manager to execute Change Order No. 3. c. Sewer Force Main Hydraulic Analysis and Air Release Valve Assessment - (Taylor Jaime,Staff Engineer II and Brent Goligoski,Senior Engineer) Taylor Jaime provided details regarding the Sewer Force Main Hydraulic Analysis and Air Release Valve Assessment and answered questions from the Board. Moved Haven/Second Sheehan/Henderson Yes/Haven Yes/Romsos Yes/Sheehan Yes/Exline Yes to (1) Approve the proposed Scope of Work by Schaaf and Wheeler for Force main Hydraulic Analysis and Air Release Valve Assessment; and (2) Authorize the General Manager to execute Task Order No. 1 with Schaaf and Wheeler in the amount of $254,133. d. Relinquishment of Unused Legacy Water Rights (Mark Seelos, water Resources Manager) -Mark Seelos provided details regarding the Relinquishment of Unused Legacy Water Rights and answered questions from the Board. Board Members requested further research and additional rationale for future consideration of the requested action. Public comments were received from Dave Peterson in support of this item. Of note, Peterson provided public comment on a separate matter involving a pending water rights application which is not before the Board. The Board tabled this item and Paul Hughes stated additional supporting information would be brought to the December 18, 2025, meeting. No action was taken. e. Bijou 1 Waterline Replacement Project (Laura Hendrickson,Associate Engineer) -Laura Hendrickson provided details regarding the Bijou 1 Waterline Replacement Project and answered questions from the Board. REGULAR BOARD MEETING MINUTES: December 4, 2025 PAGE-3 Moved Sheehan/Second Haven/Henderson Yes/Haven Yes/Romsos Yes/Sheehan Yes/Exline Yes to 1) Approve Change Order No. 2 to Vinciguerra Construction, Inc. in the amount of $300,100; and 2) Authorize the General Manager to execute Change Order No. 2. f. 2026-2027 Sewer Line Spot Repair and Lateral Abandonment Services (Richard Jones IV, Collections & Effluent Operations Supervisor) - Richard Jones provided details regarding the 26-27 Sewer Line Spot Repair and Lateral Abandonment Services and answered questions from the Board. Kilts Devine commented that the electronic bid process is getting looked at so that new guidelines can be implemented to prevent uploading errors. Moved Romsos/Second Sheehan/Henderson Yes/Haven Yes/Romsos Yes/Sheehan Yes/Exline Yes to 1) Reject all bids received for 2026-2027 Sewer Line Spot Repair and Lateral Abandonment Services; and 2) Authorize staff to revise the bid documents as needed to re- advertise the Project. g. Resolutions to Submit Application for Wildwood and Gardner Mountain Water System Improvements Project Loan from State Water Resources Control Board Drinking Water State Revolving Loan Fund (Donielle Morse, Grant Coordinator) - Donielle Morse provided details regarding the Application for Wildwood and Gardner Mountain Water System Improvements Project Loan and answered questions from the Board. Moved Exline/Second Romsos/Henderson Yes/Haven Yes/Romsos Yes/Sheehan Yes/Exline Yes to Adopt Resolution Nos. 3322-25 and 3323-25 to apply for a State Water Resources Control Board Drinking Water State Revolving Loan in an amount not to exceed $16,500,000 for the Wildwood and Gardner Mountain Water System Improvements Project. 7. STANDING AND AD-HOC COMMITTEES AND LIAISON REPORTS: Director Exline attended the System Efficiency Committee meeting which included an informative WaterSmart tutorial; solar project update; and technological advancements within District departments. He commended the District staff for their collaboration and innovation and said Thea Ragsdale did a great job on her presentation regarding energy consumption. Jim Kelly's work is also impressive, and he asked for future staff reports on Nexgen, Level of Service targets and dashboard development. Director Henderson attended the Operations Committee meeting, of which many topics were covered in this meeting. Additionally, they covered well updates on the Sunset well and Upper Truckee well and the water loss audit. President Romsos added that the report on the tour of the facilities with Lahontan Water Board will be on the next Operations Committee Agenda. He represented the District at the morning coffee event with the local fire departments. Director Haven provided an update regarding the EL Dorado Water Agency (EDWA) meeting he recently attended. There has been more attention on the water agencies in Lake Tahoe, more recognition and planning of activities, including the recent Water Plenary held at the District. He appreciates the staff involvement at that meeting and there is a lot of buy-in by the EDWA Board to support the Tahoe blueprint for water and county-wide coordination. He commended Donielle Morse for her great job representing the District at the water for fire/environmental improvement workshop. 8. BOARD MEMBER REPORTS: REGULAR BOARD MEETING MINUTES: December 4, 2025 PAGE-4 Director Sheehan attended the District's Employee Communications Committee and said it was a positive environment and well attended. She gave kudos to Shannon Chandler and staff that helped to make breakfast and enjoyed the topic of community service. Director Henderson gave thanks to all staff for the End of Dig Season and kudos for the celebration. President Romsos wants the Board Members to start thinking about next year's committee assignments and if they would like to make any changes. Melonie Guttry will provide a current list of assignments to the Board, so please let him or her know if you want to make changes. He commended Paul Hughes for his presentation outlining the District's accomplishments at the State of the South Shore event. 9. STAFF/ATTORNEY REPORTS: Chris Skelly briefed the Board on the Cyber Tabletop Exercise that took place on December 3 including the topics covered and plans for continued staff training. Chris Skelly announced the District's Information Technology Department was awarded the Municipal Information Systems Association of California (MISAC) Excellence in Information Technology Practice Award for the 121h consecutive year and gave appreciation to the Board for their support. The Board expressed appreciation to the Information Technology Department. Donielle Morse provided background information and status of the Hazard Mitigation Plan Update. The Plan is being written in partnership with Lake Valley Fire Department with the purpose of minimizing the impact of disasters in our area as well as qualifying for future funding eligibility. A planning committee has been assembled, and public outreach has ensued. She encouraged the Board to take the survey and read the FAQs on the District's website. The committee is soon entering Phase 2 which involves hazard mitigation and risk assessment. The Plan should be submitted to California Office of Emergency Services in April. 10. GENERAL MANAGER REPORT: Paul Hughes recognized Scott Glaze, a beloved staff member at the District, who passed away unexpectedly last Friday evening. He worked at the District for the last nine years and was a wonderful friend and colleague. 11. NOTICE OF PAST AND FUTURE MEETINGS/EVENTS 12. BREAK AND ADJOURN TO CLOSED SESSION: There was no closed session. ADJOURNMENT: 3:53 p.m. Shane Romsos, Board President South Tahoe Public Utility District Shannon Chandler, Administrative Analyst/ Assistant Clerk of the Board South Tahoe Public Utility District � � SOUTH TAhp� ,.r-- �o`et'c UTILITY D� Summary of Audit Results June 30, 2025 Auditor and Management Responsibilities ID■ Audit of South Tahoe Public Utility District financial statements for the year ended June 30, 2025 ■ Management Responsibilities ■ Fair presentation of the financial statements ■ Internal controls over financial reporting ■ Auditor Responsibility ■ Express an opinion on the financial statements Audit Process ■ Interim Remote Fieldwork- June ■ Planning and Risk Assessment ■ Documentation of Processes and Internal Controls ■ Receipts/Revenue ■ Disbursements/Expenses ■ HR and Payroll ■ Financial Reporting Audit Process ■ Year-End Audit Fieldwork- September ■ Testing of Year-End Balances and Activity ■ Cutoff testing ■ Analytical review procedures ■ Confirmation of balances ■ Detail transaction testing ■ Federal Single Audit ■ Financial Statements and Footnotes Preparation Reporting Results III ■ Reporting Results of the Audit ■ Audit Opinion- Independent Auditor's Report ■ Government Audit Standards Report ■ Single Audit- Uniform Guidance Report ■ Board Communication- Audit Conclusion Letter ■ Management Letter Audit ■ . sults- Financial Statements ■ Independent Auditor's Report ■ Types of Opinions- Unmodified, Qualified, Adverse or Disclaimer ■ STPUD- Unmodified Opinion ■ "Clean" Audit Opinion Audit Results Government Auditing Standards Report • No Material Weaknesses ■ No Significant Deficiencies ■ No Compliance Exceptions Audit Results Single Audit- Uniform Guidance Report ■ Major Program ■ ALN 21 .027 Coronavirus Recovery ■ No compliance exceptions ■ No material weaknesses or significant deficiencies Audit Results Audit Conclusion Letter • New Accounting Polices ■ GASB 101 Compensated Absences implemented ■ Accounting Estimates in the Financial Statements ■ Allowance for doubtful accounts ■ Leases receivable (GASB 87) ■ Depreciation ■ Subscription Liability (GASB 96) ■ Net Pension Liability (GASB 68) Audit Results Audit Conclusion Letter (continued) ■ Difficulties Encountered in Performing the Audit ■ None ■ Disagreements with Management ■ None ■ 5 audit adjustments- Deposit in transit, COP interest (2), GASB 101 , amortize COP premiums ■ 1 immaterial "passed" adjustment- Compensated absences due to year-end COLA Audit Results Management Letter ■ Financial close- timeliness ■ Cash- year-end accrual entries ■ SBITAs- reconciliation to supporting schedules ■ Long-term liabilities- amortization of premiums ■ Accrued interest cutoff ■ Compensated absences- utilize updated payrates ■ Prior Year Management Letter- all 3 items implemented ResultsSummary of Audit ■ Unmodified Opinion on financial statements ■ No Material Weaknesses ■ No Significant Deficiencies ■ No Compliance Exceptions ■ 5 Audit Adjustments ■ 1 "Passed" Immaterial Adjustment ■ 6 Management Letter Comments ■ 3 Prior Year Management Letter Comments Implemented • • Q ■ .IF! :00. M9 N E ■�i• ■, + I ko, Z ■ = o N L F- SOUTH TAHOE PUBLIC UTILITY DISTRICT ANNUAL FINANCIAL REPORT WITH INDEPENDENT AUDITOR'S REPORT JUNE 30,2025 MUN CPAs, LLP 1760 CREEKSIDE OAKS DRIVE, SUITE 160 SACRAMENTO, CALIFORNIA 95833 SOUTH TAHOE PUBLIC UTILITY DISTRICT TABLE OF CONTENTS JUNE 30,2025 Paqe Independent Auditor's Report 1 -3 Management's Discussion and Analysis 4- 11 Basic Financial Statements: Statement of Net Position as of June 30, 2025 with Comparative Totals for June 30, 2024 12- 13 Statement of Revenues, Expenses, and Changes in Net Position for the Year Ended June 30, 2025 with Comparative Totals for the Year Ended June 30, 2024 14 Statement of Cash Flows for the Year Ended June 30, 2025 with Comparative Totals for the Year Ended June 30, 2024 15- 16 Notes to the Basic Financial Statements 17-39 Required Supplementary Information: Schedule of the District's Proportionate Share of the Net Pension Liability 40-41 Schedule of Contributions to the Cost Sharing Defined Benefit Pension Plan 42-43 Other Reports: Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 44 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance 45-46 Schedule of Expenditures of Federal Awards 47-48 Notes to Schedule of Expenditures of Federal Awards 49 Schedule of Findings and Questioned Costs 50 Schedule of Prior Year Findings and Questioned Costs 51 (E) M*U*N INDEPENDENT AUDITOR'S REPORT To the Board of Directors South Tahoe Public Utility District South Lake Tahoe, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the business-type activities and each major fund of South Tahoe Public Utility District (the District) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and each major fund of the District, as of June 30, 2025, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter Change in Accounting Principle As described in Note 1 to the financial statements, during the year ended June 30, 2025, the District adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate,that raise substantial doubt about the District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. . 1 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 1 www.muncpas.com GLENDALE ' • • • Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control.Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Report on Summarized Comparative Information We have previously audited the District's 2024 basic financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated December 16, 2024. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and pension related schedules as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2025, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. Sacramento, California December 11, 2025 South Tahoe Public Utility District MANAGEMENT'S DISCUSSION AND ANALYSIS For the year ended June 30, 2025 Financial Highlights The District has long been addressing the aging water system infrastructure, including undersized waterlines. The District finances water and sewer operations through user charges, property fax receipts,and other income. District service charge revenue is stable, since 100% of customers pay flat rates for sewer services. Also, the District's metered water rates are approximately structured with a 75%fixed component and 25%variable component.This structure nearly represents the District's actual fixed and variable cost structure. Water consumption revenues currently represent only 1 1.3%of the District's 2025 combined water and sewer service charge revenue and 7.7% of total revenues. As expected, water consumption fees become a larger portion of the District's revenues from 2023 through 2025 as the District installed meters to 99.9% of its service area to comply with the state mandate requiring water systems to be completely metered by 2025. Each year the District updates its Ten-Year Financial Plan to assess its long-term financial condition. A primary goal in carefully developing long-term financial plans is to minimize annual rate changes and to avert large rate fluctuations. Fiscal year 2024/25 represented year one of a five-year rate implementation schedule with a new Proposition 218 Rate Study which was implemented July 1, 2024. In 2024 the Board of Directors adopted an ordinance with a five-year rate increase schedule; however, the rates for each year require confirmation annually by the Board. The maximum annual rate increases allowed for fiscal years 2025 — 2029 are 9.5% for Water, 13.5%for Sewer in 2025 and 9.50%for Water and Sewer in years 2026—2029. For fiscal year 2025,the Board adopted a 9.5% increase for Water and 13.5%for Sewer rates. The District has been able to move forward with several capital projects due to the infrastructure-specific rate increases, receipt of grant funds, state program loans, and low-tax exempt interest rates on borrowed funds. The District continues to utilize the State Revolving Fund loan program whenever possible.The tax-exempt interest rates associated with this funding are approximately half compared to standard tax-exempt loans. Utilizing this program has saved the District's customers millions of dollars. Careful stewardship of financial resources,along with a focus on long-term financial planning, provides the District with a firm financial base. The District has shown its financial abilities in its capability in responding to the operational requirements of the water and sewer systems while responsibly investing in infrastructure replacement. ■ During the year approximately $7 million was invested in sewer and water infrastructure improvements and equipment. ■ Net position of the District increased $3.5 million or 1.5%. ■ The Sewer and Water Enterprise Funds' net income is $1,054,172 and $2,453,342, respectively. ■ Operating revenue is up 12% primarily due to an increase in service charges. ■ Combined operating and nonoperating expenses including depreciation increased 9.4%from the prior year. ■ An active grant-seeking program is in place to bring in additional resources for both infrastructure and operations. The District recognized approximately $2.1 million in grant funding. Overview of the Basic Financial Statements The District's basic financial statements are the Statement of Net Position, the Statement of Revenues, Expenses and Changes in Net Position,and the Statement of Cash Flows.An important part of the basic financial statements is the accompanying notes, which provide the users with additional information required by generally accepted accounting principles (GAAP). Preceding the basic financial statements is Management's Discussion and Analysis, which requires supplementary information to the basic financial statements. 4 South Tahoe Public Utility District MANAGEMENT'S DISCUSSION AND ANALYSIS-CONTINUED For the year ended June 30, 2025 The Statement of Net Position includes the District's assets, deferred outflows of resources, liabilities and deferred inflows of resources. The difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources is reported as net position.The Statement of Revenues, Expenses and Changes in Net Position account for revenue, expenses, and capital contributions and calculates the change in net position. Over time, increases or decreases in net position serve as a key indicator of the District's financial position. The Statement of Cash Flows provides details on the changes in cash and cash equivalents during the year. By contrast the Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position are prepared on an accrual basis, meaning revenues are recorded when earned, and expenses are recorded when incurred regardless of the timing of cash receipts and payments. Net Position The condensed Statement of Net Position below shows the District is investing in capital assets while keeping its debt at manageable levels. For the year ended June 30, 2015, the District was required to implement GASB 68, Accounting and Financial Reporting for Pensions. Under the new GASB standards, each participating cost-sharing employer is required to report its actuarially determined proportionate share of the collective net pension liability, pension expense, and deferred outflows/deferred inflows of resources in their financial statements determined in conformity with GASB 68. Previously to GASB 68, the District was only required to report the actual payments submitted to the pension plan as an expense and no liability or deferred outflows/deferred inflows.The net pension liability reported in the Statement of Net Position for years ending June 30, 2025 and 2024 was approximately $15.9 million and $16.1 million respectively. For more information on the District's pension plan, see Note 9 of the Notes to the Financial Statements. Net Position din thousands) June 30 2025 2024 Change Change Current and other $ 99,625 $ 63,728 $ 35,897 56.3% Capital assets 260,886 253,875 7,011 2.8% Total assets $360,51 1 $317,603 $42,908 13.5% Deferred outflows of resources $6,155 $7,508 ($1,353) (18.0%) Debt outstanding $ 99,008 $ 61,177 $37,831 61.8% Net Pension Liability 15,935 16,082 (147) (.9%) Other liabilities 9,911 9,915 (4) 0.0% Total liabilities $ 124,854 $ 87,174 $37,680 43.2% Deferred inflows of resources $13,602 $13,235 $367 2.8% Net investment in capital assets $195,238 $192,872 $ 2,366 1.2% Restricted for security deposits 165 165 0 0.0% Restricted for debt service payment 2,424 1,849 575 31.1% Unrestricted 30,382 29,816 566 1.9% Total net position $228,210 $224,702 $3,508 1 6% 5 South Tahoe Public Utility District MANAGEMENT'S DISCUSSION AND ANALYSIS—CONTINUED For the year ended June 30, 2025 Revenue and Expenses The District finances sewer and water operations through user charges, property tax receipts, and other income. Total revenue for fiscal year 2024-25 is $55.2 million, a $5.5 million or 1 1.2% increase from the prior year. The 2025 service charge revenue is up by $4.1 million due to a 9.5% increase in water service charge rates and 13.5% in sewer service charge rates. Connection fees have increased by $214K or 18.4%. Due to the limited number of vacant lots, many developers are razing older homes and constructing new ones on the same lot which require no, or little, additional water or sewer capacity. Property tax revenue is up $408K or 3.5%, compared to the prior year reflecting an increase in property assessed values. Investment income is up due to a higher interest rate environment and recorded increases to the fair value of investments,while other income was fairly stable with only a $15K increase. Investments& 2024-25 Revenue Other Income,_ 8.2% Property Taxes, 21.5% Connections Fees, 2.5% Service Charges, 67.8% Revenues din thousands) June 30 2025 2024 Change Change Service charges $37,454 $33,346 $ 4,108 12.3% Connection fees 1,375 1,161 214 18.4% Other 864 899 (34) (3.8%) Total operating revenue 39,694 35,406 4,288 12.1% Property taxes 11,910 11,502 408 3.5% Investments 2,517 1,675 842 50.3% Other 1,148 1,133 15 1.4% Total non-operating revenue 15,575 14,310 1,265 8.8% Total revenue $55,269 $49,716 $ 5,553 11.2% 6 South Tahoe Public Utility District MANAGEMENT'S DISCUSSION AND ANALYSIS—CONTINUED For the year ended June 30, 2025 Revenue and Expenses - Continued Total operating expenses for the current year are $51.1 million, up $3.7 million from the prior year. The District's policy is to capitalize labor associated with capital projects. The capitalized portion of salaries and benefits in the amount of $715K for 2025 is not accounted for in operating expenses, as it is included in capital assets on the Statement of Net Position. The GASB 68 pension expense adjustment for fiscal year 2025 was approximately $120K compared to $1.3 million in the prior year. The year-over-year change of the required GASB 68 pension expense recognition was a decrease of $1.2 million. Similar to the capitalized labor, this adjustment impacts the Statement of Net Position. New this year was an additional requirement for GASB 101- Compensated absences in which a recognition threshold was established for leave that has been earned and is usable. With this change the District is required to include nonvested sick leave (sick leave earned by employees hired after 2013) for those with a balance less than 1040 hours. It has been determined to utilize a rolling 3-year average of sick leave used as a percentage of accrued balances for this respective amount to which will be recorded as Non-Current Liability. In FY 2025 the 3-year average of sick leave was used with 40%and resulted in a liability of $475K. Salaries and benefits increased by 11.9%due to an initial 2.5%cost of living adjustment(COLA) plus an additional average 8% salary increase for a negotiated compensation study effective February 27, 2025 as well as a 10% increase in Health and Welfare benefits. Depreciation expense increased by 3.8% illustrating the District's continued investment in new infrastructure. Utilities, which fluctuate year to year due to winter severity, increased 16% in 2025 due to continued rate increases implemented by the local power supplier. Repair and maintenance expenditures,which decreased 5.8%,fluctuate year by year based on unexpected or planned projects. Combined operating and non-operating other expenses fluctuate year to year depending on the level of contracted and other professional services utilized by the District. In 2024-25 Interest expense increased 104.9% primarily due to the Certificates of Participation obtained in January 2025. 2024-25 Expenses Interest,2.9% Other, 0.7% Other, 12.50%,Io Salaries& Repairs, 7.1% &JI Ad Benefits,44.1% Utilities, 11.9% Depreciation, 20.8% 7 South Tahoe Public Utility District MANAGEMENT'S DISCUSSION AND ANALYSIS-CONTINUED For the year ended June 30, 2025 Expenses din thousondsJ June 30 2025 2024 Change Change Operating expenses: Salaries and benefits $23,444 $20,955 $ 2,489 1 1.9% Depreciation 11,054 10,647 407 3.8% Utilities 6,307 5,437 870 16.0% Repair and maintenance 3,747 3,978 (231) (5.8%) Other 6,638 6,438 200 3.1% Total operating expenses 51,190 47,455 3,735 7.9% Non-operating expenses: Interest expense 1,553 758 795 104.9% Other 359 322 37 11.4% 1,912 1,080 832 77.0% Total expenses $53,102 $48,535 $ 4,567 9.4% The fiscal year 2024-25 income before capital contributions is $2.2 million as compared to the actual prior year of $1.2 million. For the year, capital contributions increased net position an additional $1.3 million. Changes in Net Position din thousondsJ June 30 2025 2024 Change Change Beginning net position $224,702 $2211889 $2,813 1.3% Income before contributions 2,167 1,181 986 83.5% Capital contributions 1,341 1,633 (292) (17.8%) Changes in net position 3,508 2,813 695 24.7% Ending net position $228,210 $224,702 $3,508 1.6% 8 South Tahoe Public Utility District MANAGEMENT'S DISCUSSION AND ANALYSIS—CONTINUED For the year ended June 30, 2025 Capital Assets The District's investment in its sewer and water systems is $261 million at the end of the fiscal year net of depreciation. During the year, approximately $7 million was spent on new infrastructure and equipment. $2.5 million was spent on water system improvements. As noted in the highlights, new waterlines improve system reliability, water pressure, and fire flow capability. For the year $4.4 million was invested in sewer system improvements including pumping and treatment upgrades, line replacement, and recycled water projects. Capital Assets (net of depreciation, in thousands) Sewer Water Total 2025 2024 2025 2024 2025 2024 Land and easements $ 23,035 $ 23,035 $ 2,328 $ 2,096 $ 25,363 $ 25,131 Water rights - - 1,668 1,668 1,668 1,668 Plant and equipment 97,050 98,435 105,096 98,043 202,146 196,478 Intangible right- to-use software agreements 352 198 120 199 472 397 Construction in Progress 21,136 15,455 10,101 14,745 31,237 30,200 Total $141,573 $137,123 $1 19,313 $1 16,751 $260,886 $253,874 For additional information on Capital Assets, see Note 4 in the Notes to Financial Statements. 9 South Tahoe Public Utility District MANAGEMENT'S DISCUSSION AND ANALYSIS-CONTINUED For the year ended June 30, 2025 Debt Administration The District prefers to avoid funding capital improvement projects with debt but will do so when necessary to keep service rates at reasonable levels. At year-end, the District had approximately $98.7 million in installment sales, loans and Certificates Of Participation (COP) outstanding as detailed below. As always, grant opportunities and low interest subsidized loans are pursued by the District. Outstanding Debt at Year End (in thousands) June 30, 2025 2024 Sewer Enterprise Fund: California State Revolving Loan Fund (secured by sewer revenue) 6,256 6,479 California State Revolving Loan Fund (secured by sewer revenue) 3,633 3,763 Sewer Refunding (secured by sewer revenue) 1,658 2,293 Sewer Refunding (secured by sewer revenue) 0 502 Installment Sale Agreement (secured by sewer revenue) 2,700 3,028 California State Revolving Loan Fund (secured by sewer revenue) 866 896 California State Revolving Loan Fund (secured by sewer revenue) 469 486 California State Revolving Loan Fund (secured by sewer revenue) 5,033 4,412 2021 Wastewater Revenue Refunding Bonds (secured by sewer revenue) 3,785 4,285 California State Revolving Loan Fund (secured by sewer revenue) 4,586 1,899 California State Revolving Loan Fund (secured by sewer revenue) 2,299 413 2025 Certificate of Participation 18,955 0 Premium on bond 1,889 658 Total sewer enterprise fund 52,129 29,114 Water Enterprise Fund: Water Refunding (secured by water revenue) 2,236 2,654 California State Revolving Loan Fund (secured by water revenue) 2,511 2,627 California State Revolving Loan Fund (secured by water revenue) 727 779 California State Revolving Loan Fund (secured by water revenue) 8,785 9,048 California State Revolving Loan Fund (secured by water revenue) 2,945 3,040 California State Revolving Loan Fund (secured by water revenue) 5,443 4,877 California State Revolving Loan Fund (secured by water revenue) 8,668 8,735 2025 Certificate of Participation 14,250 0 2025 Certificate of Participation Premium 996 0 46,561 31,760 Other: Subscription Liability 319 303 Total debt $ 99,009 $ 61,177 10 South Tahoe Public Utility District MANAGEMENT'S DISCUSSION AND ANALYSIS—CONTINUED For the year ended June 30,2025 For additional information on Outstanding Debt, see Note 7 in the Notes to the Financial Statements. Contacting the District's Financial Management This financial report is designed to provide the District's elected officials, customers, investors, and creditors with an assessment of the District's financial condition and an accounting of the public's money. If you have questions about this report or need more financial information, contact the Chief Financial Officer, South Tahoe Public Utility District, 1275 Meadow Crest Drive, South Lake Tahoe, CA 96150. 11 SOUTH TAHOE PUBLIC UTILITY DISTRICT STATEMENT OF NET POSITION JUNE 30,2025 (WITH COMPARATIVE TOTALS FOR JUNE 30,2024) Business-type Activities Enterprise Funds Total Sewer Water 2025 2024 ASSETS Current assets Cash and cash equivalents(Note 2) $ 28,973,103 $ 16,946,850 $ 45,919,953 $ 13,817,860 Investments (Note 2) 578,024 385,349 963,373 401,254 Accounts receivable, net of allowance(Note 3) 2,337,066 2,149,144 4,486,210 3,827,582 Due from governmental agencies (Note 3) 1,077,023 590,649 1,667,672 2,142,362 Property tax receivable 11,928,897 - 11,928,897 11,311,047 Interest receivable 156,819 104,111 260,930 282,872 Leases receivable-current(Note 5) 38,841 38,841 77,682 77,682 Other current assets 392,713 1,322,975 1,715,688 1,478,599 Total current assets 45,482,486 21,537,919 67,020,405 33,339,258 Noncurrent assets Restricted assets: Cash and cash equivalents(Note 2) 1,039,192 1,384,492 2,423,684 1,848,789 Certificate of deposit(Note 2) 50,000 115,000 165,000 165,000 Total restricted assets 1,089,192 1,499,492 2,588,684 2,013,789 Long-term accounts receivable(Note 3) 1,246,333 - 1,246,333 805,239 Due from governmental agencies (Note 3) 73,020 73,020 146,040 146,040 Investments (Note 2) 16,228,061 10,818,707 27,046,768 25,787,057 Capital assets, net of accumulated depreciation (Note 4) 141,572,797 119,313,327 260,886,124 253,874,735 Leases receivable- long-term (Note 5) 788,580 788,580 1,577,160 1,636,716 Total noncurrent assets 160,997,983 132,493,126 293,491,109 284,263,576 Total Assets 206,480,469 154,031,045 360,511,514 317,602,834 DEFERRED OUTFLOW OF RESOURCES Refunding loan costs 37,484 - 37,484 56,226 Changes in the net pension liability(Note 9) 3,702,996 2,414,078 6,117,074 7,451,382 Total Deferred Outflows of Resources 740,480 $ 2,414,078 $ 6,154,558 $ 7,507,608 See accompanying notes to the basic financial statements. 12 SOUTH TAHOE PUBLIC UTILITY DISTRICT STATEMENT OF NET POSITION (CONTINUED) JUNE 30,2025 (WITH COMPARATIVE TOTALS FOR JUNE 30,2024) Business-type Activities Enterprise Funds Total Sewer Water 2025 2024 LIABILITIES Current liabilities Accounts payable and other liabilities $ 2,348,834 $ 1,420,113 $ 3,768,947 $ 4,536,978 Unearned revenue(Note 6) - 17,337 17,337 18,113 Accrued expenses 16,062 100,564 116,626 42,684 Accrued payroll liabilities 346,754 243,545 590,299 463,703 Construction retainage 434,229 219,704 653,933 1,222,197 Accrued interest payable 668,015 477,784 1,145,799 335,334 Deposits payable - 332,500 332,500 480,000 Compensated absences-current portion (Note 8) 904,261 669,746 1,574,007 1,579,608 Long term liabilities-current portion (Note 7) 2,352,191 1,478,461 3,830,652 3,659,753 Total current liabilities 7,070,346 4,959,754 12,030,100 12,338,370 Noncurrent liabilities Compensated absences-long term portion (Note 8) 987,970 723,069 1,711,039 1,235,882 Long term liabilities-long term portion (Note 7) 50,018,350 45,159,762 95,178,112 57,517,396 Net pension liability(Note 9) 9,661,050 6,274,412 15,935,462 16,081,653 Total long-term liabilities 60,667,370 52,157,243 112,824,613 74,834,931 Total Liabilities 67,737,716 57,116,997 124,854,713 87,173,301 DEFERRED INFLOWS OF RESOURCES Property tax receivable 11,928,897 - 11,928,897 11,311,047 Changes in the net pension liability(Note 9) 74,403 49,602 124,005 298,037 Lease receivable (Note 5) 774,332 774,332 1,548,664 1,625,778 Total Deferred Inflows of Resources 12,777,632 823,934 13,601,566 13,234,862 NET POSITION Net Investment in capital assets 108,194,740 87,043,656 195,238,396 192,871,785 Restricted for security deposits 50,000 115,000 165,000 165,000 Restricted for debt service payment 1,039,192 1,384,492 2,423,684 1,848,789 Unrestricted 20,421,669 9,961,044 30,382,713 29,816,705 Total Net Position $ 129,705,601 $ 98,504,192 $ 228,209,793 $ 224,702,279 See accompanying notes to the basic financial statements. 13 SOUTH TAHOE PUBLIC UTILITY DISTRICT STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30,2025 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2024) Business-type Activities Enterprise Funds Total Sewer Water 2025 2024 OPERATING REVENUE Charges for sales and services: Service charges $ 20,658,700 $ 16,795,562 $ 37,454,262 $ 33,346,144 Connection and service fees 614,090 761,276 1,375,366 1,161,267 Other operating income 548,988 315,354 864,342 898,735 Total operating revenues 21,821,778 17,872,192 39,693,970 35,406,146 OPERATING EXPENSES Salaries,wage and employee benefits 14,270,147 9,173,717 23,443,864 20,954,825 Depreciation and amortization 5,933,333 5,120,900 11,054,233 10,647,388 Utilities 4,265,444 2,041,652 6,307,096 5,436,894 Repairs and maintenance 1,475,904 2,271,025 3,746,929 3,977,927 Other operating expenses (Note 15) 3,853,052 2,785,153 6,638,205 6,438,153 Total operating expenses 29,797,880 21,392,447 51,190,327 47,455,187 OPERATING LOSS (7,976,102) (3,520,255) (11,496,357) (12,049,041) NONOPERATING REVENUE(EXPENSE) Tax revenue 7,926,185 3,983,540 11,909,725 11,502,119 Investment earnings(Note 14) 1,541,906 975,189 2,517,095 1,675,063 Aid from governmental agencies 288,271 469,769 758,040 708,947 Other nonoperating income 105,504 284,825 390,329 424,122 Interest expense (783,959) (769,402) (1,553,361) (758,458) Other expense (299,422) (59,193) (358,615) (321,989) Total nonoperating revenue, net 8,778,485 4,884,728 13,663,213 13,229,804 INCOME BEFORE CAPITAL CONTRIBUTIONS 802,383 1,364,473 2,166,856 1,180,763 CAPITAL CONTRIBUTIONS Capital contributions 251,789 1,088,869 1,340,658 1,632,635 CHANGE IN NET POSITION 1,054,172 2,453,342 3,507,514 2,813,398 TOTAL NET POSITION, BEGINNING OF YEAR 128,651,429 96,050,850 224,702,279 221,888,881 TOTAL NET POSITION, END OF YEAR $ 129,705,601 $ 98,504,192 $ 228,209,793 $ 224,702,279 See accompanying notes to the basic financial statements. 14 SOUTH TAHOE PUBLIC UTILITY DISTRICT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30,2025 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2024) Business-type Activities Enterprise Funds Total Sewer Water 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 21,075,017 $ 17,370,955 $ 38,445,972 $ 34,926,124 Payments to suppliers (5,670,283) (5,740,861) (11,411,144) (7,690,563) Payments to employees (12,820,979) (8,598,508) (21,419,487) (19,194,724) Other operating payments (3,853,052) (2,785,153) (6,638,205) (6,438,153) NET CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES (1,269,297) 246,433 (1,022,864) 1,602,684 CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES Tax revenue 7,308,335 3,983,540 11,291,875 10,966,989 Payments from (to)governmental agencies 626,820 697,180 1,324,000 1,290,480 NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 7,935,155 4,680,720 12,615,875 12,257,469 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (10,382,329) (7,683,293) (18,065,622) (23,005,284) Repayment of debt (2,474,684) (1,228,866) (3,703,550) (3,618,325) Proceeds from issuance of debt 25,491,147 16,028,291 41,519,438 13,308,282 Interest paid on long-term debt (315,753) (408,401) (724,154) (712,507) Contributed capital 251,789 1,088,869 1,340,658 1,632,635 NET CASH PROVIDED BY(USED FOR)CAPITAL AND RELATED FINANCING ACTIVITIES 12,570,170 7,796,600 20,366,770 (12,395,199) CASH FLOWS FROM INVESTING ACTIVITIES Investment earnings 1,270,615 791,071 2,061,686 1,242,467 Purchase of investments (10,705,403) (7,136,935) (17,842,338) (14,130,320) Proceeds from sale of investments 10,427,054 6,070,805 16,497,859 15,547,668 NET CASH PROVIDED BY(USED FOR) INVESTING ACTIVITIES 992,266 (275,059) 717,207 2,659,815 NET INCREASE IN CASH AND CASH EQUIVALENTS 20,228,294 12,448,694 32,676,988 4,124,769 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 9,784,001 5,882,648 15,666,649 11,541,880 CASH AND CASH EQUIVALENTS, END OF YEAR $ 30,012,295 $ 18,331,342 $ 48,343,637 $ 15,666,649 See accompanying notes to the basic financial statements. 15 SOUTH TAHOE PUBLIC UTILITY DISTRICT STATEMENT OF CASH FLOWS(CONTINUED) FOR THE YEAR ENDED JUNE 30,2025 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2024) Business-type Activities Enterprise Funds Total Sewer Water 2025 2024 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Unrestricted cash and cash equivalents $ 28,973,103 $ 16,946,850 $ 45,919,953 $ 13,817,860 Restricted cash and cash equivalents 1,039,192 1,384,492 2,423,684 1,848,789 TOTAL CASH AND CASH EQUIVALENTS $ 30,012,295 $ 18,331,342 $ 48,343,637 $ 15,666,649 RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY(USED FOR)OPERATING ACTIVITIES Operating loss $ (7,976,102) $ (3,520,255) $ (11,496,357) $ (12,049,041) Adjustments to reconcile operating loss to net cash (used for)provided by operating activities: Depreciation and amortization 5,779,901 5,057,619 10,837,520 10,647,388 Net change in deferred outflows and inflows 1,275,457 425,555 1,701,012 102,245 Construction-in-progress write-off 153,432 63,281 216,713 382,536 (Increase)decrease in: Receivables (746,761) (352,961) (1,099,722) (597,130) Other assets (29,714) (207,375) (237,089) (98,555) Increase(decrease)in: Accounts payable 372,004 (1,140,035) (768,031) 1,220,030 Net pension liability (87,715) (58,476) (146,191) 1,639,512 Unearned revenue - (776) (776) 7,108 Other payables (9,799) (20,144) (29,943) 348,591 NET CASH (USED FOR) PROVIDED BY OPERATING $ (1,269,297) $ 246,433 $ (1,022,864) $ 1,602,684 ACTIVITIES NONCASH INVESTING, CAPITAL,AND FINANCING ACTIVITIES Increase in fair value of investments $ 252,422 $ 160,812 $ 413,234 $ 697,522 Acquisition of subscription assets 309,369 - 309,369 - Inception of subscription liabilities (309,369) - (309,369) - Total Non-Cash Investing, Capital, and Financing Activities $ 252,422 $ 160,812 $ 413,234 $ 697,522 See accompanying notes to the basic financial statements. 16 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The South Tahoe Public Utility District (the "District"), a public agency established on September 28, 1950, (pursuant to Section 9 of"The Public Utility District Act") supplies drinking water and provides sewage collection, treatment, and export to protect Tahoe's delicate ecosystem. Managing this complex operation requires an uncommon environmental sensitivity. For financial reporting purposes, the District includes all funds that are controlled by or dependent on the District's Board of Directors. Management has determined the District to be a single reporting entity for financial reporting purposes by applying the criteria set forth in Statement of Governmental Accounting Standards No. 61, The Financial Reporting Entity. Omnibus-an amendment of GASB Statements No. 14 and No. 34. This criteria requires the reporting entity to have a separate elected governing body,that it be a legal separate entity and fiscally independent. The District reports the following major funds: Sewer Enterprise Fund - This fund is used to account for wastewater business-like activities provided to the general public. These activities are financed by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. Water Enterprise Fund - This fund is used to account for water business-like activities provided to the general public. These activities are financed by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. B. Measurement Focus, Basis of Accounting and Presentation The financial statements have been prepared in conformity with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States. Measurement Focus The statement of net position and the statement of revenues, expenses, and changes in net position, are presented using the economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery),financial position, and cash flows.All assets and deferred outflows of resources and all liabilities and deferred inflows of resources(whether current or noncurrent)associated with the operation of the District are reported. Proprietary fund equity is classified as net position. Basis of Accounting The financial records of the District are maintained on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become measurable; expenses are recognized in the period incurred. C. Budget The District develops and adopts an annual budget; however,this budget is a management tool and is not a legal requirement. D.Cash and Cash Equivalents The District considers cash and all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. The District's cash and cash equivalents consist of cash, deposits in financial institutions, money market accounts, certificates of deposit and pooled investments. Cash and cash equivalents invested for specific requirements, such as deposits for construction projects, are segregated as restricted cash and cash equivalents. Deposits of cash and cash equivalents must comply with the District's Investment Policy which complies with the California Government Code.The policy requires deposits in financial institutions to be FDIC insured or fully collateralized. 17 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) E. Investments Investments consist of unrestricted and restricted federal agency notes, corporate notes, supranationals, municipal bonds, treasury obligations and certificates of deposit. The District records its investments at fair value. Changes in fair value are reported as investment earnings in the statement of revenues, expenses, and changes in net position. Monies not required for the immediate operations of the District are invested in accordance with the District's Investment Policy. F.Accounts Receivable Accounts receivable represent service charges and other revenues billed and uncollected at year-end, along with amounts accrued for items billed after year-end for service periods before year-end. Each year the District records liens for delinquent charges and collects through the property tax bill for active accounts, and pursues full-collection for closed accounts with unpaid balances.The District records an allowance for doubtful accounts for non-recoverable collections. G. Inventory Inventory is valued at cost, using the first in first out method (FIFO). Inventory consists of supplies used in the maintenance of water and sewer lines. The cost is recorded as an expense as inventory items are consumed. H.Capital Assets Capital assets are recorded at cost except in those cases where facilities are donated by private developers or special assessment districts. In the latter cases, assets are recorded at acquisition value. At the date of donation, assets are capitalized when they are expected to have useful lives of three years or greater and the original cost is $5,000 or more. All depreciation is computed on the straight-line basis over the following useful lives: Years Sewer Enterprise Subsurface lines 10-70 Sewage collection facilities 5-40 Sewage treatment 3-40 Sewage disposal 5- 100 General plant and administration 3-50 Water Enterprise Source of supply 10-40 Pumping plant 12-30 Water treatment plant 4-35 Transmission and distribution 20-74 General plant 3-20 I. Compensated Absences It is the District's policy to permit employees to accumulate earned but unused vacation and sick leave, which will be paid to employees upon separation from the District's service. For employees hired after January 1, 2013, earned but unused sick time will not be paid upon separation from the District's services. The cost of vacation and sick leave is recorded in the period accrued. J. Pension Plan For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the South Tahoe Public Utility District PERS (the Plan), and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by PERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Plan investments are reported at fair value. 18 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) K.Capital Contributions Capital contributions are grant monies received from the federal and state government in aid of construction, and assets contributed by Special Assessment Districts or real estate developers. L. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.Actual results may differ from those estimates. M. Operating and Non-operating Revenues and Expenses Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the principal ongoing operations of sewer and water services. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. N. Property taxes Secured property taxes are attached as an enforceable lien and levied on property as of January 1st. Taxes are due in two installments, on or before December 10th and April 10th. The District recognizes property tax receivables on January 1st and defers revenue recognition until the period for which the property taxes are levied (July 1st through June 30th). Property tax revenue is derived from property tax assessments levied within the entire District. The Board of Directors is using these funds to subsidize the Water and Sewer Enterprise Fund operations. The District relies upon the competency of the County of El Dorado for assessing the property tax and establishing a lien date, and for billing, collecting and distributing its share of the property tax revenue. O. Restricted Resources The District's policy is to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available. P. Deferred Outflows and Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s)and so will not be recognized as an outflow of resources(expense/expenditure)until then. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s)and so will not be recognized as an inflow of resources(revenue) until that time. Q. Net Position Net position represents the residual interest in District assets and deferred outflows after liabilities and deferred inflows are deducted. Net position is presented in three broad components: net investment in capital assets; restricted; and unrestricted. Net investment in capital assets includes capital assets, net of accumulated depreciation, and outstanding principal balances of debt and related deferred outflows and inflows attributable to the acquisition, construction or improvement of those assets. Net position is restricted when constraints are imposed by third parties or by law through constitutional provisions or enabling legislation. All other net position is unrestricted. Operating losses outside of depreciation are funded by operating and capital reserves. 19 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) R. Leases Lessor The District is a lessor for noncancellable leases for cell tower sites. The District recognizes a lease receivable and a deferred inflow of resources in the financial statements. At the commencement of a lease, the District initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments include how the District determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2)lease term, and (3)lease receipts. • The District uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee. The District monitors changes in circumstances that would require a remeasurement of its leases, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. S.Subscription-Based Information Technology Arrangements(SBITA) A SBITA is defined as a contractual agreement that conveys control of the right to use another party's (a SBITA vendor's) information technology(IT)software, alone or in combination with tangible capital assets(the underlying IT assets), as specified in the contract for a minimum contractual period of greater than one year, in an exchange or exchange-like transaction. The District uses various SBITA assets, such as software as a service and platform as a service. The related obligations are presented in amounts equal to the present value of subscription payments, payable during the remaining SBITA term. SBITA assets are reported with other capital assets and SBITA liabilities are reported with long-term debt on the statement of net position. T.Comparative Information Comparative data for the prior year has been presented in certain sections of the accompanying financial statements in order to provide an understanding of changes in the District's financial position and operations. Certain amounts presented in the prior year have been reclassified in order to be consistent with the current year's presentation. U. Implementation of Government Accounting Standards Board Statements Effective July 1, 2024,the District implemented the following accounting and financial reporting standards: Governmental Accounting Standards Board Statement No. 101 In June 2022, GASB issued Statement No. 101, Compensated Absences. The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. There was no financial impact to the District as a result of implementation. 20 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) Governmental Accounting Standards Board Statement No. 102 In December 2023, GASB issued Statement No, 102, Certain Risk Disclosures. The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. A concentration is defined as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision-making authority. There was no financial impact to the District as a result of implementation. V. Future Government Accounting Standards Board Statements These statements are not effective until July 1, 2025 or later and may be applicable for the District. However, the District has not determined what impact, if any, these pronouncements will have on the financial statements. Governmental Accounting Standards Board Statement No. 103 In April 2024, GASB issued Statement No, 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This Statement also addresses certain application issues. The requirements of this statement are effective for the District's fiscal year ending June 30, 2026. Governmental Accounting Standards Board Statement No. 104 In September 2024, GASB issued Statement No, 104, Disclosure of Certain Capital Assets. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34 and also requires additional disclosures for capital assets held for sale. The requirements of this statement are effective for the District's fiscal year ending June 30, 2026. 21 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 2: CASH AND INVESTMENTS Cash and investments as of June 30, 2025 consisted of the following: Cash and cash equivalents: Unrestricted: Cash on hand $ 2,450 Unrestricted deposits in financial institutions 44,479,857 Deposits in Local Agency Investment Fund (LAIF) 997,262 Deposits in El Dorado County Treasury 364,555 Deposits in California Asset Management Program (CAMP) 75,829 Total unrestricted cash and cash equivalents 45,919,953 Restricted: Restricted for debt service payments 2,423,684 Total restricted cash and cash equivalents 2,423,684 Total cash and cash equivalents 48,343,637 Investments: Unrestricted: Federal agency and instrumentalities 2,840,581 U.S. corporate debt 7,990,788 Asset backed securities 5,482,489 Municipal bonds 296,203 U.S. Treasury obligations 11,196,546 Negotiable certificates of deposit 203,534 Total unrestricted investments 28,010,141 Restricted: Negotiable certificates of deposit-security deposits 165,000 Total investments 28,175,141 Total cash and investments $ 76,518,778 22 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 2: CASH AND INVESTMENTS(CONTINUED) Investments Authorized by the California Government Code and the District's Investment Policy The table below identifies the investment types that are authorized for the District by the California Government Code (or the District's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the District's investment policy,where more restrictive)that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Maximum Percentage of Investment in Authorized Investment Type Maturity Portfolio One Issuer U.S.Treasury obligations 5 Years None None Federal agency and instrumentalities Callable 5 Years 25% None Asset backed securities 5 Years 20% None Other 5 Years None None Supranationals 5 Years 30% None Municipal bonds 5 Years None None U.S. corporate debt 5 Years 30% 10% Negotiable certificates of deposit 5 Years 30% 10% Commercial paper 270 days 25% 10% Bank deposits N/A 20% 10% Bankers'acceptances 180 days 40% 10% Pooled investment funds LAIF N/A None None CAMP N/A None None El Dorado County pool N/A None None Money market funds N/A 20% 10% Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One way the District manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities. A portion of the portfolio is always maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for the District's operations and capital improvement program. In addition, the Investment Policy limits the purchase of securities to those with maturities of five years or less. Longer investments require prior authorization of the Board of Directors. Certain investments that are highly sensitive to interest rate fluctuations are prohibited by the Investment Policy. 23 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 2: CASH AND INVESTMENTS(CONTINUED) Information about the sensitivity of the fair values of the District's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the District's investments by maturity as of June 30, 2025: Investment Maturities(in years) Investment Type Fair Value Less than 1 1-2 3-5 Federal agency and instrumentalities $ 2,840,581 $ 485,416 $ 761,237 $ 1,593,928 U.S. corporate debt 7,990,788 287,707 3,739,603 3,963,478 Asset backed securities 5,482,489 10,073 333,801 5,138,615 Municipal bonds 296,203 - - 296,203 U.S.Treasury obligations 11,196,546 5,502,026 5,694,520 - Negotiable certificates of deposit 368,534 368,534 - - $ 28,175,141 $ 6,653,756 $ 10,529,161 $ 10,992,224 As provided in the Investment Policy, the District should target a maximum allocation of 25% to callable Federal agency securities. Concentration of Credit Risk Concentration of Credit risk is the risk of loss attributed to the magnitude of an investor's investment in a single issuer. To limit this risk, the District places a limit on the amount that can be invested in any one issuer to the lesser of the amount stipulated by the California Government Code or 10% of investments, with the exception of U.S. Treasury obligation bonds, U.S. Agency securities, and pooled investment funds. Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2025 for each investment type. Rating as of Fiscal Year End Investment Type Total S&P N/A Federal agency and instrumentalities $ 2,840,581 AA+ Municipal bonds 85,000 AA Municipal bonds 95,177 AA- Municipal bonds 116,026 Not rated U.S. corporate debt 1,870,072 A U.S. corporate debt 1,564,394 A- U.S. corporate debt 2,253,203 A+ U.S. corporate debt 256,972 AA U.S. corporate debt 1,060,176 AA- U.S. corporate debt 300,519 AAA+ U.S. corporate debt 188,104 AAA+ U.S. corporate debt 497,348 BBB+ Asset-backed security 4,421,308 AAA Asset-backed security 1,061,181 Not rated U.S.Treasury obligations 11,196,546 AA+ Negotiable certificates of deposit 203,534 A+ Negotiable certificates of deposit 165,000 Not rated $ 28,175,141 24 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 2: CASH AND INVESTMENTS(CONTINUED) Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the depositor will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The District's Investment Policy requires the financial institution to either collateralize the deposits or cover them with Federal deposit insurance. The District's cash and deposits in financial institutions, totaling $30,791,890 as of June 30, 2025, are secured by federal depository insurance for$618,552 with the remainder covered by collateral held by an agent of the pledging bank in the District's name. Investment Valuation The District categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset's fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The District does not have any investments that are measured using Level 1 and 3 inputs. Following is a description of the valuation methodologies used to estimate the fair value of investments. There have been no changes in the valuation techniques used at June 30, 2025. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore,while District management believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. U.S. Treasuries, Government Agencies, Corporate Bonds, Municipal Bonds, Asset Backed Securities, and Negotiable Certificates of Deposit: Fair values are based on quoted market prices for similar securities in markets that are not active, and model-based techniques for which all significant assumptions are observable in the market, resulting in a level 2 valuation. The following tables set forth by level,within the fair value hierarchy,the District's assets at fair value as of June 30, 2025. Level Level Level Total Federal agency and instrumentalities 840,581 $ - $ 2,840,581 U.S corporate debt - 7,990,788 - 7,990,788 Asset backed securities 1482,489 - 5,482,489 Municipal bonds 96,203 - 296,203 U.S.Treasury obligations 1,196,546 - 11,196,546 Negotiable certificates of deposit - 368,534 - 368,534 Total assets at fair value $ - $ 28,175,141 $ - $ 28,175,141 25 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 3:ACCOUNTS RECEIVABLE AND AMOUNTS DUE FROM GOVERNMENTAL AGENCIES Short-term receivables at June 30, 2025 consisted of the following: Sewer Water Total Customer receivables $ 2,391,946 $ 2,097,481 $ 4,489,427 Other receivables 11,847 104,438 116,285 Allowance for doubtful accounts (66,727) (52,775) (119,502) Accounts receivable, net of allowance $ 2,337,066 $ 2,149,144 $ 4,486,210 Due from Federal Government $ 860,524 $ 318,064 $ 1,178,588 Due from California 216,499 221,645 438,144 Due from El Dorado County - 50,940 50,940 Due from governmental agencies $ 1,077,023 $ 590,649 $ 1,667,672 Long-term receivables at June 30, 2025 consisted of the following: Sewer Water Total Accounts receivable Customer receivables $ 1,246,333 $ - $ 1,246,333 Due from governmental agencies Due from California $ 73,020 $ 73,020 $ 146,040 Long-term customer receivables are submitted to the County of El Dorado for collection through a special property tax assessment or if unpaid, ultimately through foreclosure on the property. 26 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 4: CAPITAL ASSETS Capital asset activity for the year ended June 30, 2025 was as follows: July 1,2024 Additions Retirements Transfers June 30,2025 Capital assets not being depreciated Land and easement 5,131,228 $ 231,207 $ - $ - $ 25,362,435 Water rights 1,668,308 - - - 1,668,308 Construction in progress 30,200,193 10,851,465 (216,714) (9,597,809) 31,237,135 Total capital assets not being depreciated 56,999,729 11,082,672 (216,714) (9,597,809) 58,267,878 Capital assets being depreciated Plant and equipment 403,178,191 6,969,061 (750,080) 9,597,809 418,994,981 Intangible right-to-use software agreements 647,930 313,658 (148,281) - 813,307 Total capital assets being depreciated and amortized 403,826,121 7,282,719 (898,361) 9,597,809 419,808,288 Less accumulated depreciation and amortization Plant and equipment (206,700,008) (10,816,089) 667,025 - (216,849,072) Intangible right-to-use software agreements (251,107) (238,144) 148,281 - (340,970) Total accumulated depreciation and amortization (206,951,115) (11,054,233) 815,306 - (217,190,042) Total capital assets being depreciated, net 600,701,127 (3,771,514) (83,055) 9,597,809 622,426,534 Capital assets, net $ 253,874,735 $ 7,311,158 $ (299,769) $ - $ 260,886,124 27 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 4: CAPITAL ASSETS(CONTINUED) Construction in progress as of June 30, 2025 consisted of the following: Al Tahoe Pump St Rehab $ 184,489 Al Tahoe Well Rehab 355,040 Al Tahoe/Bayview Backup Power 950,427 Baldwin Beach Gravity Rehab/Replacement 195,815 Baldwin Beach Pump Station 162,326 Bayview Well Rehab 142,269 Bijou#1 Waterline Replacement 285,992 Bijou PS Rehab 569,215 Blower System Upgrades 646,645 CMMS Implementation 180,671 Collection System Master Plan 460,808 Dead End Improvement Program 143,623 Filters 3&4 1,503,143 FLL ES 1-3 Stanford Camp Rehab 1,579,051 Glenwood Rancho Waterline 120,969 Lake Tahoe Blvd Waterline Replacement 94,555 Lead Service Lines Program 92,046 Master Plan-Alpine County 342,506 Meter Installation Final Phase 1,006,016 Paloma Well Rehab 2021 817,302 Pioneer Tr Waterline 194,709 RAS Building Rehab 802,650 SCADA Upgrades 155,454 Secondary Clarifier#1 Rehab 2,763,659 Submersible Pump, EP Station 163,967 Tahoe Keys Sewer PS Rehab 6,634,320 Tahoe Mountain Waterline 103,391 Upper Truckee Sewer PS Rehab 4,228,051 Water Efficiency/Loss Data System Impl. 142,866 Water System Optimization Plan 162,466 Waterline-Herbert Walkup Ph1 4,465,765 Other projects 1,586,929 $ 31,237,135 Depreciation and amortization expense for the year ended June 30, 2025 was charged to the different activities as follows: Sewer $ 5,933,333 Water 5,120,900 $ 11,054,233 28 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 5: LEASES RECEIVABLE The District is reporting leases receivable of $1,654,842 (split between current amount $77,682 and noncurrent amount of $1,577,160)at June 30, 2025. For 2025, the District reported lease revenue of$60,956 and interest revenue of$833 related to lease payments received. These leases are summarized as follows: Lease Lease Lease Interest Lease Receivable Revenue Revenue AT&T $ 577,982 $ 19,526 $ 267 Verizon 1,076,860 41,430 566 Total $ 1,654,842 $ 60,956 $ 833 AT&T Lease - On September 19, 2021, the District entered into an initial five year lease agreement with AT&T, Inc. for the lease of a certain portion of property owned by the District. Based on this agreement, the District is receiving monthly payments through 2026. There are four extension options of five years each. The District is reasonably certain the lessee will renew this lease for the four extensions. Verizon Lease - On January 25, 2019, the District entered into an initial five year lease agreement with Verizon Communications, Inc. for the lease of a certain portion of property owned by the District. Based on this agreement, the District is receiving monthly payments through 2024. There are four extension options of five years each. The District is reasonably certain the lessee will renew this lease for the four extensions. At June 30, 2025,future minimum lease payments due to the District are as follows: Year Ending June 30 Amount 2026 $ 62,785 2027 64,668 2028 66,608 2029 68,606 2030 70,665 2031 -2035 386,422 2036-2040 447,970 2041 -2045 462,788 2046-2047 45,471 Total lease payments 1,675,983 Less interest (21,141) Present value of leases receivable $ 1,654,842 NOTE 6: UNEARNED REVENUE Unearned revenue represents revenues that had been collected or billed, but not yet earned. Unearned revenue consisted of the following at June 30, 2025: Sewer Water Total Meters sold but not issued $ - $ 17,337 $ 17,337 29 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 7: LONG TERM LIABILITIES During the year ended June 30, 2025, the following changes occurred in long-term liabilities: Current July 1,2024 Additions Reductions June 30, 2025 Portion 2012 Sewer Refunding $ 501,858 $ - $ (501,858) $ - $ - 2013 Sewer Refunding 2,293,230 - (635,308) 1,657,922 651,033 SRF Luther Pass Power 3,763,006 - (129,846) 3,633,160 131,923 SRF Diamond Valley Ranch Irrigation Imp. 6,479,113 - (223,567) 6,255,546 227,144 SRF Aeration Basin#2 Rehabilitation 896,416 - (30,560) 865,856 31,080 SRF Primary Clarifier#1 Rehabilitation 485,803 - (16,562) 469,241 16,843 Chase Bank Sewer Loan 3,027,669 - (327,923) 2,699,746 335,111 2021 Wastewater Revenue Refunding Bond 4,285,000 - (500,000) 3,785,000 520,000 Tahoe Keys Wastewater Pump Station Rehab 4,411,501 621,595 - 5,033,096 146,888 Upper Truckee SPS Rehab 412,567 1,886,794 - 2,299,361 - SRF Secondary Clarifiers 1,899,551 2,686,556 - 4,586,107 136,140 2025 Wastewater COP - 18,955,000 - 18,955,000 - Premium on bond 657,509 1,341,200 (109,058) 1,889,651 - 2013 Water Refunding 2,653,609 - (417,692) 2,235,917 427,227 SRF Meters Phase 1 2,627,337 - (116,771) 2,510,566 58,385 SRF Meters Phase 2 779,225 - (52,148) 727,077 52,986 SRF Meters Phase 3-5 9,048,203 - (263,205) 8,784,998 267,942 SRF Waterline Replacement 3,039,912 - (94,529) 2,945,383 96,144 Keller Heavenly Water System Improvement Project 4,877,313 565,568 - 5,442,881 246,346 Rocky I SRF Loan 8,735,433 200,000 (267,643) 8,667,790 251,665 2025 Water COP - 14,250,000 - 14,250,000 - Premium on COP - 1,012,724 (16,879) 995,845 - Subscription (SBITA) Liability 302,894 309,369 (293,642) 318,621 233,795 Total $ 61,177,149 $ 41,828,806 $ (3,997,191) $ 99,008,764 $ 3,830,652 A description of the long-term liabilities at June 30, 2025 follows: 2012 Sewer Refunding 2012 Sewer Installment Sale Agreement with BBVA Compass Bank, secured by a first lien against all sewer revenues, due September 1, 2024, payable $507,630 semi-annually, including interest at 2.3%. The original amount of the debt was $10,605,000 and was used for construction of sewer infrastructure improvements and was also used to repay the 2004 Sewer Revenue Certificates of Participation,which funded sewer infrastructure improvements. 2013 Sewer Refunding 2013 Sewer Installment Sale Agreement with BBVA Compass Bank, secured by a first lien against all sewer revenues, due August 2027, payable $343,919 semi-annually, including interest at 2.46%. The original amount of the debt was $8,400,000 and was used to repay the 2007 Sewer Installment Sale Agreement,which funded sewer infrastructure improvements. SRF Luther Pass Power 2015 California State Water Resources Control Board Revolving Fund Loan secured by a first lien against all sewer revenues, due August 30, 2047, payable $190,054 annually, including interest of 1.6%. The original amount of the debt was $4,444,057 and was used for construction of Luther Pass Pump Station upgrades. 30 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 7: LONG TERM LIABILITIES(CONTINUED) SRF Diamond Valley Ranch Irrigation Improvement 2015 California State Water Resources Control Board Revolving Fund Loan secured by a first lien against all sewer revenues, due December 31, 2047, payable $322,058 annually, including interest of 1.6%. The original amount of the debt was $8,860,890 and was used for construction of the Diamond Valley Ranch Irrigation improvements. SRF Aeration Basin#2 Rehabilitation 2018 California State Water Resources Control Board Revolving Fund Loan secured by a first lien against all sewer revenues, due December 31, 2047, payable$45,799 annually, including interest of 1.7%. The original amount of the debt was$1,070,077 and was used for the rehabilitation of aeration basin#2. SRF Primary Clarifier#1 Rehabilitation 2018 California State Water Resources Control Board Revolving Fund Loan secured by a first lien against all sewer revenues, due December 31, 2047, payable $24,820 annually, including interest of 1.7%. The original amount of the debt was $580,153 and was used for the rehabilitation of primary clarifier#1. Chase Bank Sewer Loan 2017 Installment Sale Agreement with Chase Bank, secured by a first lien against all sewer revenues, due December 1, 2032, payable$196,074 semi-annually, including interest at 2.18%. The original amount of the debt was$5,000,000 and was used for construction of the sewer plant generator and building. 2021 Wastewater Revenue Refunding Bond 2021 Wastewater Revenue Refunding Bond, secured by a first pledge of net revenues of the wastewater system, due August 1, 2031, payable semi-annually, including interest at 2 - 4%. The original amount of the bond was $5,745,000 and was used for prepayment of the outstanding principal balances of three loans from the California State Water Resources Control Board and prepayment of Installment Sale Agreement with BBVA Compass Bank, all of which funded wastewater infrastructure improvements. The bond issuance included an original issue premium of$932,073,which is being amortized over the life of the bonds. Tahoe Keys Wastewater Pump Station Rehabilitation Proiect During the fiscal year ended June 30, 2022, the District entered into a loan agreement with the State Water Resources Control Board's Division of Financial Assistance. The loan is dated February 14, 2022, and is in the principal amount of up to $6,189,331. The District is drawing down on the loan as the project progresses. Annual payments will begin July 2025. Interest is to accrue at a rate of 0.9% per annum and will begin with each disbursement. Final payment date is set at July 31, 2059. Upper Truckee SPS Rehab During the fiscal year ended June 30, 2022, the District entered into a loan agreement with the State Water Resources Control Board's Division of Financial Assistance. The loan is dated March 14, 2022, and is in the principal amount of up to$4,280,375. The District is drawing down on the loan as the project progresses. Annual payments will begin December 2025. Interest is to accrue at 0.8% per annum and will begin with each disbursement. Final payment date is set at December 31, 2054. 31 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 7: LONG TERM LIABILITIES(CONTINUED) SRF Secondary Clarifiers During the fiscal year ended June 30, 2022, the District entered into a loan agreement with the State Water Resources Control Board's Division of Financial Assistance. The loan is dated March 25, 2022, and is in the principal amount of up to$5,281,344. The District is drawing down on the loan as the project progresses. Annual payments will begin March 2026. Interest is to accrue at 0.8% per annum and will begin with each disbursement. Final payment date is set at March 30, 2054. 2025 Wastewater COP On January 15, 2025, the District issued the 2025 Wastewater Revenue Certificates of Participation in the principal amount of $18,955,000 to provide funds to finance capital improvement projects of the District for its wastewater system. Interest is payable on February 1 and August 1 of each year commencing August 1, 2025 with an interest rate of 5%. Principal payments will begin August 1, 2028 with maturity on August 1, 2054. 2013 Water Refunding 2013 Water Installment Sale Agreement with BBVA Compass Bank, secured by a first lien against all water revenues, due January 30, 2030, payable $237,786 semi-annually, including interest at 2.27%. The original amount of the debt was $10,000,000 and was used for construction of water infrastructure improvements and was also used to repay the 2001 Water Refunding and 1999 Installment Sale Agreement, both of which funded water infrastructure improvements. SRF Meters Phase 1 2014 California State Water Resources Control Board Revolving Fund Loan secured by a first lien against all water revenues, due January 1, 2047, payable$58,385 semi-annually, including interest of 0%. The original amount of the debt was$3,503,116 and was used for installation of water meters. Imputed interest for this loan is not material. SRF Meters Phase 2 2017 California State Water Resources Control Board Revolving Fund Loan secured by a first lien against all water revenues, due July 1, 2037, payable $32,204 semi-annually, including interest of 1.6%. The original amount of the debt was $1,098,593 and was used for installation of water meters. SRF Meters Phase 3-5 In 2018, the District entered into a revolving fund loan agreement with California State Water Resources Control Board to provide funding for phases 3 through 5 of the water meter installation project. The loan is secured by a first lien against all water revenues. Funds are drawn on the agreement as work is completed up to a maximum approved amount of $14,010,534. Annual principal and interest payments will occur each April 22, commencing April 15, 2022. This loan accrues interest at a rate of 1.8%annually.As of June 30, 2025 the District incurred a total of$13,829,053 in Phase 3-5 costs, of which $4,000,000 has been forgiven. SRF Waterline Replacement In 2018, the District entered into a revolving fund loan agreement with California State Water Resources Control Board to provide funding for the waterline replacement project. The loan is secured by a first lien against all water revenues. Funds are drawn on the agreement as work is completed up to a maximum approved amount of $3,627,005. Semi-annual principal payments will occur each January 1 and July 1, commencing January 1, 2020. The loan accrues interest at a rate of 1.7% annually. Final payment is due July 1, 2049. Keller Heavenly Water System Improvement Project In 2021, the District entered into a revolving fund loan agreement with California State Water Resources Control Board to provide funding for the drinking water construction project. The loan is secured by a first lien against all water revenues. Funds are drawn on the agreement as work is completed up to a maximum approved amount of $5,500,000. Annual principal payments will occur each October 15, commencing October 15, 2024. The loan accrues interest at a rate of 1.2% annually. Final payment is due October 15, 2043. 32 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 7: LONG TERM LIABILITIES(CONTINUED) 2021 Rocky I SRF Loan During the fiscal year ended June 30, 2022, the District entered into a loan agreement with the State Water Resources Control Board's Division of Financial Assistance. The loan is dated February 23, 2022, and is in the principal amount of up to $9,000,000. The District is drawing down on the loan as the project progresses. Annual payments will begin December 2024. Interest is to accrue at a rate of 1.2% per annum and will begin with each disbursement. Final payment date is set at December 31, 2053. 2025 Water COP On January 15, 2025, the District issued the 2025 Water Revenue Certificates of Participation in the principal amount of $14,250,000 to provide funds to finance capital improvement projects of the District for its water system. Interest is payable on February 1 and August 1 of each year commencing August 1, 2025 with an interest rate of 5%. Principal payments will begin August 1, 2030 with maturity on August 1, 2054. Principal and interest maturities of long-term debt are as follows: Years ending June 30, Principal Interest Total 2026 $ 3,596,857 $ 2,545,365 $ 6,142,222 2027 3,794,419 2,488,730 6,283,149 2028 3,532,576 2,411,381 5,943,957 2029 3,599,127 2,336,168 5,935,295 2030 3,686,161 2,254,422 5,940,583 2031 -2035 15,373,229 10,079,812 25,453,041 2036-2040 15,008,601 8,369,239 23,377,840 2041 -Thereafter 47,213,678 11,865,121 59,078,799 $ 95,804,648 $ 42,350,238 $ 138,154,886 Interest charges on debt for the year ended June 30, 2025 totaled $1,648,307. Debt covenants for the installment sale agreements to BBVA Compass Bank and the California State Water Resource Control Board Revolving Fund include thresholds for minimum net water and sewer revenue and maximum outstanding debt obligations. The District is in compliance with the requirements as of June 30, 2025. Subscriptions(SBITAs) The District has entered into subscription-based information technology arrangements (SBITAs) involving various software subscriptions. The total costs of the District's subscription assets are recorded as $813,307, less accumulated amortization of $340,971. The future subscription payments under SBITA agreements are as follows: Years ending June 30, Principal Interest Total 2026 $ 233,795 $ 9,691 $ 243,486 2027 84,826 2,580 87,406 Total $ 318,621 $ 12,271 $ 330,892 33 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 8: COMPENSATED ABSENCES Compensated absences balance and activity for the year ended June 30, 2025 were as follows: Current July 1,2024 Additions Reductions June 30, 2025 Portion Compensated absences $ 2, 115,490 $ 669,556 $ - $ 3, 885,046 $ 1,574,007 NOTE 9: PENSION PLAN A. General Information about the Pension Plan Plan Description All qualified permanent and probationary employees are eligible to participate in the District's Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan), administered by the California Public Employees' Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all others). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety and miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the safety or miscellaneous pools. The District sponsors two rate plans(both miscellaneous). Benefit provisions under the Plan are established by State statute and District resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. The District has one local Miscellaneous Retirement Benefit Plan, with two tiers. Tier I benefits for members hired before January 1, 2013 are under the 2.7% @ 55 retirement formula, and Tier II benefits for members hired on or after January 1, 2013 are under the 2%at 62 retirement formula. Tier I final compensation is calculated using the highest average pay rate and special compensation during a three year period. Tier I employee contributions are shared by the employer and employee. This tier and retirement formula is closed to employees hired on or after January 1, 2013 with the exception of employees considered to be Classic Members with a break in CalPERS qualified employment of less than 6 months and who did not receive a refund of their contributions on deposit with the retirement fund. Tier II final compensation is calculated using the highest average pay rate and special compensation during any consecutive three-year period. Tier II employee contributions are paid by the employee. The rate plan's provisions and benefits in effect at June 30, 2025, are summarized as follows: Miscellaneous Plan Hired prior to Hired on or after January 1, 2013 January 1, 2013 Benefit Formula 2.7% at 55 2.0%at 62 Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life nthly for life Retirement Age 50-55 52-67 Monthly Benefits, as a%of Eligible Compensation 2.0%-2.7% 1.0%-2.5% Required Employee Contribution Rate 8.00% 7.75% Required Employer Contribution Rate 15.24% 7.87% Required UAL Contribution $1,312,409 $15,588 34 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 9: PENSION PLAN (CONTINUED) Contributions Section 20814(c)of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The District's contributions to the Plan for the year ended June 30, 2025 were$2,824,055. B. Pension Liabilities, Pension Expenses,and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the District reported a net pension liability of$15,935,462 for its proportionate share of the net pension liability of the Plan. The District's net pension liability is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability of the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The District's proportion of the net pension liability was based on a projection of the District's' long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The District's proportionate share of the net pension liability of the Plan as of June 30, 2025 and 2024 was follows: Proportion-June 30, 2024 0.32161 % Proportion-June 30, 2025 0.32948 % Change-increase 0.00787 % For the year ended June 30, 2025, the District recognized pension expense of $3,839,979. At June 30, 2025, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions subsequent to the measurement date $ 2,824,055 $ - Change in employer's proportion 404,713 - Difference between actual and expected experience 1,377,767 53,759 Changes in assumptions 409,574 - Difference between employer contributions and the employer's proportionate share of the risk pool's contributions 183,580 70,246 Net difference between projected and actual earning on plan investments 917,385 - Total $ 6,117,074 $ 124,005 $2,824,055 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Fiscal Year Ended June 30, 2026 $ 1,153,765 2027 2,228,972 2028 100,653 2029 (314,376) 35 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 9: PENSION PLAN (CONTINUED) Actuarial Assumptions The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions: Valuation Date June 30, 2023 Measurement Date June 30, 2024 Actuarial Cost Method Entry-age Normal Cost Method Actuarial Assumptions: Discount Rate 6.90% Inflation 2.30% Salary Increases Varies by Entry Age and Service Investment Rate of Return 6.90% net of pension plan investment expenses, includes inflation Mortality(1) Derived using CalPERS membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.30% until purchasing power protection allowance floor on purchasing power applies, 2.30%thereafter (1): The mortality table used was developed based on CalPERS' specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80%of Scale MP 2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report that can be found on the CalPERS website. Changes in Assumptions For the measurement period June 30, 2024,there were no changes in assumptions. Discount Rate The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all the Public Employees Retirement Funds' asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. 36 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 9: PENSION PLAN (CONTINUED) The expected real rates of return by asset class are as follows: Assumed asset Real return years 1-10 Asset class allocation (1)(2) Global Equity-Cap weighted 30.0% 4.54% Global Equity Non-Cap-weighted 12.0% 3.84% Private Equity 13.0% 7.28% Treasury 5.0% 0.27% Mortgage-backed Securities 5.0% 0.50% Investment Grade Corporates 10.0% 1.56% High Yield 5.0% 2.27% Emerging Market Debt 5.0% 2.48% Private Debt 5.0% 3.57% Real Assets 15.0% 3.21% Leverage (5.0)% (0.59)% (1)An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-2022 Asset Liability Management study. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the District's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Current Discount Discount Rate-1% Rate Discount Rate+ 1% 5.90% 6.90% 7.90% Net pension liability $25,963,094 $15,935,462 $7,681,243 Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. The annual financial report can be obtained at calpers.ca.gov. NOTE 10: DEFERRED COMPENSATION PLAN The District offers its employees a deferred compensation plan (the "457 Plan") created in accordance with Internal Revenue Code Section 457. The 457 Plan permits the employees to defer a portion of their salary until future years. A third party administrator maintains deferrals in a trust capacity. The deferred compensation is not available to employees until termination, retirement, death or unforeseen emergency. Participants may elect to contribute, through salary reductions, up to the IRC (g) limit($23,500 in 2025). The 457 Plan assets totaled $23,884,727 at June 30, 2025. Plan assets consist of investments in mutual funds, which are held in trust and are considered protected from the general creditors of the District. 37 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 11: RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; injuries to employees; and natural disasters. To protect the District from these risks, it is a member of a risk management program as discussed in Note 13. The District carries commercial insurance to protect against the risk of errors and omissions. For each of the three most recent years, settlement of claims has not exceeded insurance coverage. NOTE 12: COMMITMENTS AND CONTINGENCIES A. Contractual Obligations At June 30, 2025, the District's significant contractual commitments with outside firms for engineering, construction, consulting, and various other services totaled approximately$5.9 million. B. Contingencies The District has received federal and state grants for specific purposes that are subject to review and audit by the federal and state government. Although such audits could result in expenditure disallowances under grant terms, any required reimbursements are not expected to be material. The District is also subject to legal proceedings and claims that arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the financial position or results of operations of the District. NOTE 13: JOINT POWERS AUTHORITY The District is a member of a joint powers authority, Association of California Water Agencies Joint Powers Insurance Authority (ACWA JPIA), for the operation of a common risk management and insurance program. The program covers workers' compensation, property and liability insurance. The membership includes public water agencies within California. ACWA JPIA is governed by a Board of Directors consisting of representatives from member agencies, which controls the operations of the ACWA JPIA, including selection of management and approval of operating budgets. The following is a summary of the most current audited financial information for ACWA JPIA as of September 30, 2024 (the most recent information available): Total assets $ 308,144,466 Total deferred outflows of resources 3,099,110 Total liabilities 177,706,110 Total deferred inflows of resources 4,357,741 Net assets 129,179,725 Total income 61,895,930 Total expense 253,429,117 If the District's deposits are not adequate to meet costs of claims and expenses, a retrospective adjustment to make up the difference, subject to minimum and maximum amounts, can take place. Coverage under this program has not changed and settled claims resulting from these risks have not exceeded coverage in any of the past three years. The District is also a member of a joint powers authority, California Asset Management Program (CAMP), which provides professional investment services to California public agencies. Members of CAMP can participate in the Cash Reserve Portfolio. CAMP is governed by a Board of Trustees, which is made up of experienced local government finance directors, treasurers, and school business officials.Trustees control the operation of CAMP, including formation and implementation of its investment and operating policies. 38 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2025 NOTE 13: JOINT POWERS AUTHORITY(CONTINUED) The following is a summary of the most current audited financial information for the CAMP portfolio as of December 31, 2024 (the most recent information available): Total assets $ 20,313,082,166 Total liabilities 18,728,258 Net position 20,294,353,908 Total income 2,681,463,543 Total expenses 16,991,997 Net increase in net position resulting from operations 2,664,471,546 Complete financial statements for CAMP can be obtained from the PFM Asset Management, LLC at 1 California Street, Suite 1000, San Francisco, California 94111. The relationships between South Tahoe Public Utility District and the joint powers authorities are such that ACWA JPIA and CAMP are not component units of the District for financial reporting purposes. NOTE 14: INVESTMENT EARNINGS Investment earnings consisted of the following for the year ended June 30, 2025: Interest income $ 2,039,744 Net realized and unrealized gains 477,351 $ 2,517,095 NOTE 15: OTHER OPERATING EXPENSES Other operating expenses consisted of the following for the year ended June 30, 2025: Professional services $ 2,310,593 Operating permits 475,306 Chemical supplies 472,174 Office expense 355,258 Insurance and unreimbursed claims 1,100,055 Travel, meetings, and education 195,654 Research and monitoring 89,225 Equipment and building rent expense 216,473 Fuel expenses 261,692 Taxes, street lighting, and mitigation 128,138 Community incentive 127,265 Dues and certification 114,753 Miscellaneous expense 791,619 $ 6,638,205 NOTE 16: SUBSEQUENT EVENTS Management has evaluated events subsequent to June 30, 2025 through December 11, 2025, the date on which the financial statements were available to be issued. Management has determined no subsequent events requiring disclosure have occurred. 39 REQUIRED SUPPLEMENTARY INFORMATION SOUTH TAHOE PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30,2025 LAST 10 YEARS Measurement Period 2024 2023 2022 2021 2020 Proportion of the net pension liability 0.32948 % 0.32161 % 0.30864 % 0.30705 % 0.28265 % Proportionate share of the net pension liability $ 15,935,462 $ 16,081,653 $ 14,442,141 $ 5,830,236 $ 11,922,413 Covered payroll $ 12,350,230 $ 10,972,141 $ 10,974,014 $ 10,844,940 $ 10,293,860 Proportionate share of the net pension liability as a percentage of covered payroll 129.03 % 146.57 % 131.60 % 53.76 % 115.82 % Plan fiduciary net position as a percentage of the total pension liability 78.08 % 76.21 % 76.68 % 88.29 % 75.10 % Notes to Schedule: Benefit changes: In 2015, benefit terms were modified to base public safety employee pensions on a final three-year average salary instead of a final five-year average salary. Changes in assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date),the accounting discount rate was reduced from 7.15%to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65%for measurement dates June 30, 2015, through June 30, 2016.. 40 SOUTH TAHOE PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY(CONTINUED) AS OF JUNE 30,2025 LAST 10 YEARS Measurement Period 2019 2018 2017 2016 2015 Proportion of the net pension liability 0.27119 % 0.26155 % 0.25724 % 0.24871 % 0.25560 % Proportionate share of the net pension liability $ 10,859,922 $ 9,857,219 $ 10,140,589 $ 8,639,873 $ 7,012,372 Covered payroll $ 9,849,757 $ 9,650,512 $ 9,307,465 $ 9,428,197 $ 8,791,579 Proportionate share of the net pension liability as a percentage of covered payroll 110.26 % 102.14 % 108.95 % 91.64 % 79.76 % Plan fiduciary net position as a percentage of the total pension liability 75.26 % 75.26 % 73.31 % 74.06 % 78.40 % 41 SOUTH TAHOE PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS TO THE COST SHARING DEFINED BENEFIT PENSION PLAN AS OF JUNE 30,2025 LAST 10 YEARS Fiscal Year-End 2025 2024 2023 2022 2021 Contractually required contribution (actuarially determined) $ 2,824,055 $ 2,434,781 $ 2,299,876 $ 2,202,759 $ 2,070,278 Contributions in relation to the actuarially determined contributions 2,824,055 2,434,781 2,299,876 2,202,759 2,070,278 Contribution deficiency(excess) Covered payroll $ 13,834,247 $ 12,350,230 $ 10,972,141 $ 10,974,014 $ 10,844,940 Contributions as a percentage of covered payroll 20.41 % 19.71 % 20.96 % 20.07 % 19.09 % 42 SOUTH TAHOE PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS TO THE COST SHARING DEFINED BENEFIT PENSION PLAN (CONTINUED) AS OF JUNE 30,2025 LAST 10 YEARS Fiscal Year-End 2020 2019 2018 2017 2016 Contractually required contribution (actuarially determined) $ 1,813,910 $ 1,601,072 $ 1,446,366 $ 1,369,744 $ 1,278,986 Contributions in relation to the actuarially determined contributions 1,813,910 1,601,072 1,446,366 1,369,744 1,278,986 Contribution deficiency(excess) Covered payroll $ 10,293,860 $ 9,849,757 $ 9,650,512 $ 9,307,465 $ 9,428,197 Contributions as a percentage of covered payroll 17.62 % 16.25 % 14.99 % 14.72 % 13.57 % 43 (E) M*U*N INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors South Tahoe Public Utility District South Lake Tahoe, California We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities and each major fund of South Tahoe Public Utility District (the "District") as of and for the year ended June 30, 2025, and the related notes to the financial statements,which collectively comprise the District's basic financial statements, and have issued our report thereon dated December 11, 2025. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. /AVA Gi?A9, W Sacramento, California December 11, 2025 . 1 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 1 www.muncpas.com GLENDALE ' • • • (E) M*U*N INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors South Tahoe Public Utility District South Lake Tahoe, California Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited South Tahoe Public Utility District's (the "District") compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the District's major federal programs for the year ended June 30, 2025. The District's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. In our opinion, the District, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the District's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the District's federal programs. Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the District's compliance with the requirements of each major federal program as a whole. . 1 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 1 www.muncpas.com GLENDALE ' • • • In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit, we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance.Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,this report is not suitable for any other purpose. M0.1.) C?�j, LL,� Sacramento, California December 11, 2025 SOUTH TAHOE PUBLIC UTILITY DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30,2025 Assistance Contract/ Passed- Listing Pass-through Through to Federal Grantor/Program Title Number Number Subrecipients Expenditures U.S. Department of the Interior Direct Program: Reclamation States Emergency Drought Relief 15.514 - $ - $ 28,221 WaterSMART(Sustain and Manage America's Resources for Tomorrow) 15.507 - - 1,681 Total U.S. Department of the Interior - 29,902 U.S. Department of Homeland Security Pass-Through State of California Governor's Office of Emergency Services: Severe Winter Storms-Disaster Grants- Public Assistance (Presidentially Declared Disasters) 97.036 FEMA 4683-DR-CA - 21,847 Severe Winter Storms-Disaster Grants- Public Assistance (Presidentially Declared Disasters) 97.036 FEMA 4699-DR-CA - 253,113 Total 97.036 - 274,960 Pass-Through State of California Governor's Office of Emergency Services: Hazard Mitigation Grant: Paloma Well/Keller Booster Emergency Generators 97.039 FEMA-5380-FM-CA - 137,700 Al Tahoe/Bayview Well Backup Generator 97.039 FEMA-4558-FM-CA - 265,872 Total 97.039 - 403,572 State and Local Cybersecurity Grant Program 97.137 2023-9999 - 2,409 Total U.S. Department of Homeland Security - 680,941 U.S. Department of the Treasury Pass-Through El Dorado County Water Agency: COVID-19-Coronavirus State and Local Fiscal Recovery Funds 21.027 ARPA-STPUD-01 - 114,882 COVID-19-Coronavirus State and Local Fiscal Recovery Funds 21.027 ARPA-STPUD-02 - 442,438 Total U.S. Department of the Treasury - 557,320 47 SOUTH TAHOE PUBLIC UTILITY DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS(CONTINUED) FOR THE YEAR ENDED JUNE 30,2025 Contract/ Passed- Federal AL Pass-through Through to Federal Grantor/Program Title Number Number Subrecipients Expenditures U.S. Department of Agriculture Direct Program: State and Private Forestry Cooperative Fire Assistance: Grant Administration 10.698 22-DG-11052012-165 - 2,181 NTPUD- Brockway Waterline Project 10.698 24-DG-11052012-160 743,568 746,307 Fuels Reduction on Critical Facilities 10.698 20-DG-11051900-023 - 15,916 Total 10.698 743,568 764,404 Partnership Agreements: Baldwin Beach Sewer Realignment Project 10.699 23-PA-11051900-013 - 85,381 Total U.S. Department of Agriculture 743,568 849,785 Total Expenditures of Federal Awards $ 743,568 $ 2,117,948 48 SOUTH TAHOE PUBLIC UTILITY DISTRICT NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30,2025 NOTE 1: SCOPE OF AUDIT PURSUANT TO UNIFORM GUIDANCE The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance provided to South Tahoe Public Utility District under programs of the Federal Government for the year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). NOTE 2: REPORTING ENTITY The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the District. The District's reporting entity is defined in Note 1 of the District's financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the schedule. When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. NOTE 3: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts. NOTE 4: CLAIMS The District has received federal grants for specific purposes that are subject to review and audit by the Federal Government. Although such audits could result in expenditure disallowances under the grant terms, any required reimbursements are not expected to be material. NOTE 5: INDIRECT COSTS The District elected not to use the 10% de minimus indirect cost rate, and did not charge indirect costs to federal grants during the year ended June 30, 2025. 49 SOUTH TAHOE PUBLIC UTILITY DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30,2025 SECTION I-SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued on basic financial statements Unmodified Internal control over financial reporting: Material weakness(es)identified? No Significant deficiencies identified that are not considered to be material weakness? None reported Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material weakness(es)identified? No Significant deficiencies identified that are not considered to be material weakness? None reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section 200.516 of the Uniform Guidance? No Major programs are as follows: AL Number Name of Federal Program 21.027 Coronavirus State/Local Fiscal Recovery 2022 Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? Yes SECTION II -FINANCIAL STATEMENT FINDINGS No current year findings relating to the financial statements which are required to be reported in accordance with Generally Accepted Government Auditing Standards. SECTION III -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No current year findings and questioned costs for federal awards as defined in section 200.516 of the Uniform Guidance. 50 SOUTH TAHOE PUBLIC UTILITY DISTRICT SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2025 None 51 General Manager Paul Hughes 1950 Directors Nick Haven 7Zomsos South Shane Joel Henderson Fublic Utility Di5trict Kelly Sheehan Nick Exline 1275 Meadow Crest Drive•South Lake Tahoe•CA 96150-7401 Phone 530 544-6474•Fax 530 541-0014•www.stpud.us BOARD AGENDA ITEM 7a TO: Board of Directors FROM: Mark Seelos, Water Resources Manager Megan Colvey, Director of Engineering MEETING DATE: December 18, 2025 ITEM - PROJECT NAME: Relinquishment of Unused Legacy Water Rights REQUESTED BOARD ACTION: Adopt Resolution No. 3324-25, revoking six unused water rights on file with the State Water Resources Control Board. DISCUSSION: With the acquisition of the Meyers Water Company and Tahoe Paradise Water Company in the 1960s, the South Tahoe Public Utility Water District was granted six water rights to the Upper Truckee River and a tributary of Saxon Creek. These rights have never been used, and the licensed points of diversion lack infrastructure to divert, treat, and distribute water. Thus, the District seeks to file formal requests to revoke these water rights with the State Water Resources Control Board. The District is currently pursuing a 10,808 acre-foot water right to Lake Tahoe under Water Rights Application No. A023393. This item was brought forward at the December 4t" Board meeting; however, the Board requested additional supporting information. District staff performed site reconnaissance on December 9, 2025, and confirmed that there is no remaining infrastructure that allows for use of the licensed water right A018021. SCHEDULE: Upon Board Approval COSTS: N/A ACCOUNT NO: N/A BUDGETED AMOUNT AVAILABLE: N/A IDENTIFIED CAPITAL IMPROVEMENT PROJECT (CIP): ❑ Yes ❑ No ® N/A ATTACHMENTS: Resolution No. 3324-25 and Water Rights Documentation CONCURRENCE WITH REQUESTED ACTION: CATEGORY: Water GENERAL MANAGER: YES L/r NO CHIEF FINANCIAL OFFICER: YES NO 1 RESOLUTION NO. 3324-25 2 A RESOLUTION BY THE BOARD OF DIRECTORS OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT AUTHORIZING AND DIRECTING ITS STAFF 3 TO REQUEST THE REVOCATION OF CERTAIN SURFACE WATER RIGHTS 4 WHEREAS, the South Tahoe Public Utility District ("STPUD") currently holds water 5 rights A018021, A018030, A018031, A018038, A018039, and A019629, originally 6 acquired from Tahoe Paradise Water Company, allowing for diversions from the Upper Truckee River, Coyote Creek, and an unnamed tributary to Saxon Creek; 7 and 8 WHEREAS, STPUD has never developed facilities to divert, treat, or distribute water 9 under these water rights, and intake, treatment, and distribution infrastructure do 10 not exist; and 11 WHEREAS, due to water quality, quantity, and environmental constraints, it is not 12 cost-effective or practical to exercise these water rights, and the District is instead 13 pursuing a water right under A023393 to Lake Tahoe for 10,808 acre-feet; and 14 WHEREAS, in accordance with Water Code and State Water Resources Control 15 Board regulations, STPUD may request the revocation of water rights that are no longer used and for which the reservoir or diversion facilities are incapable of 16 storing or diverting water; 17 NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of South Tahoe Public 18 Utility District hereby: 19 (1) Authorizes and directs the Staff to submit to the State Water Resources Control 20 Board six (6) Requests for Revocation of Water Rights (A018021, A018030, A018031, 21 A018038, A018039, and A019629) on behalf of the District, true and correct copies of which are attached hereto as exhibits 1 through 6. 22 23 (2) Requests full revocation of these water rights on the grounds that the reservoirs or diversion facilities no longer exist or are incapable of storing or diverting water 24 and no water is used under these rights. 25 (3) Waives Districts hearing and notice rights otherwise required for the processing 26 of the requests for resolution stated herein. 27 (4) Directs Staff to take any and all actions necessary to effectuate the revocation 28 of these water rights. WE, THE UNDERSIGNED, do hereby certify that the above and foregoing Resolution No. 3324-25 was duly and regularly adopted and passed by the Board 1 of Directors of the South Tahoe Public Utility District at a Regular meeting held on the eighteenth day of December, 2025, by the following vote: 2 3 AYES: 4 NOES: 5 ABSENT: 6 7 Shane Romsos, Board Vice President South Tahoe Public Utility District 8 9 ATTEST: 10 Melonie Guttry, Executive Services Manager/ Clerk of the Board 11 South Tahoe Public Utility District 12 Attachments 13 Exhibit 1: A018021 14 Exhibit 2: A018030 Exhibit 3: A018031 15 Exhibit 4: A018038 Exhibit 5: A018039 16 Exhibit 6: A019629 17 18 19 20 21 22 23 24 25 26 27 28 Resolution No.3324-25 Page 2 December 4,2025 General Manager Paul Hughes Directors S uth TahoeNick Haven O Shane Romsos Joel Henderson ' Fublic Utility District Kelly Sheehan NICK Exline 1275 Meadow Crest Drive•5outh Lake Tahoe•CA 96150-7401 Phone 530 544-6474•Fax 530 541-0614•www.5tpud.u5 BOARD AGENDA ITEM 7b TO: Board of Directors FROM: Jeremy Rutherdale, Field Operations Mechanical Technician Supervisor MEETING DATE: December 18, 2025 ITEM- PROJECT NAME: Sole Brand, Sole Source and Purchase of Tidal Wave Mixer From D&H Water Systems REQUESTED BOARD ACTION: Authorize the District to standardize on Big Wave Technologies potable water mixers and authorize Big Wave Technologies, as manufactured and provided exclusively by D&H Water Systems, as the sole brand and sole source of potable water tank mixers. DISCUSSION: In accordance with the Public Contract Code and the District's Purchasing Policy, standardization of equipment requires Board approval. Staff request approval to standardize on Big Wave Technologies' "Tidal Wave" potable water mixers, provided exclusively by D&H Water Systems, and to designate this make/model as a sole brand and sole source for this application. Tidal Wave Mixers are submersible, active mixers used in municipal potable water storage tanks to mitigate thermal stratification, maintain uniform disinfectant (chlorine) residuals throughout the tank volume, and reduce surface and internal bacterial loading. Based on the District's operational experience and comparative evaluations, the Tidal Wave Mixer is the optimal choice for South Tahoe Public Utility District (District). The mixers are NSF/ANSI 61 certified for potable water contact, use water-only motor cooling (no oil), and feature durable materials of construction (HDPE frame, PVC impeller, and stainless-steel motor components), which together reduce contamination risk and maintenance needs. The Water Operations Department has installed Tidal Wave mixers in three tanks - Keller, Cold Creek, and Angora to address uneven chlorine residuals, with positive performance results. Two other mixer brands were previously trialed: • SolarBee mixers: excessive weight and shorter service life, typically requiring rebuild or replacement every 3 to 5 years, leading to higher lifecycle costs. • Kasco mixers: oil-cooled design (NSF/ANSI 61-certified oil) led to seal failures and oil intrusion into the tank; as a result, the District no longer utilizes Kasco mixers. Jeremy Rutherdale Page 2 December 18, 2025 Standardizing on the Tidal Wave platform will: (1) improve water quality consistency and public health protection (2) reduce downtime and maintenance through a water-cooled, oil-free design (3) streamline spare parts, tooling, and operator training (4) ensure compatibility with existing installations and Supervisory Control and Data Acquisition (SCADA) integration. Given the combination of performance, safety, and lifecycle advantages, and the manufacturer's exclusive distribution through D&H Water Systems, competitive bidding is not in the District's best interest for this procurement. Approval of sole brand/sole source status will allow staff to proceed efficiently with replacements at the identified tank sites. This item has been reviewed by the District's Purchasing Manager. SCHEDULE: N/A COSTS: N/A ACCOUNT NO: N/A BUDGETED AMOUNT AVAILABLE: N/A ATTACHMENTS: N/A CONCURRENCE WITH REQUESTED ACTION: CATEGORY: Water GENERAL MANAGER: YES 46- NO Aq CHIEF FINANCIAL OFFICER: YES _ NO General Manager Paul Hughes Directors ��� • 1950 • w$ � South Tahoe Nick Haven Shane Rornsos Joel Henderson Kelly Sheehan Fublic Utility District Nick Exline 1275 Meadow Crest Drive•South Lake Tahoe•CA 96150-7401 Phone 530 544-6474•Fax 530 541-0014•www.stpud.us BOARD AGENDA ITEM 7C TO: Board of Directors FROM: Ryan Lee, Customer Service Manager MEETING DATE: December 18, 2025 ITEM- PROJECT NAME: Resolution Confirming Water Capacity Charges and Sewer Connection Fees for Calendar Year 2026 REQUESTED BOARD ACTION: Adopt Resolution No. 3325-25, a Resolution by the Board of Directors of the South Tahoe Public Utility District confirming the water capacity charge and sewer connection fee rates for calendar year 2026. DISCUSSION: Capacity fees are charged to new customers or existing customers who are expanding their demands on the District's system. The purpose of capacity charges is to recover the costs of public facilities in existence at the time the customer connects, and the costs for new public facilities to be acquired or constructed in the future that will benefit that customer. The District's capacity charges are legally required to be based on the District's actual costs, and the District commissions a capacity charge study every 3 to 5 years, in accordance with industry best practices, to ensure that capacity charges remain cost- based. In June 2022, the District received the final version of its most recent water and sewer capacity charge study completed by HDR Engineering. That study recommended adjusting capacity charges annually based on a construction cost index, in accordance with industry best practices. In November 2022, the Board adopted Ordinance No. 585-22, which contained a provision that water and sewer capacity charges will be automatically adjusted annually on January 1 st based on the average annual increase in the Engineering News Record Construction Cost Index (ENR CCI.) Since 2022, the District increased capacity charges by 7.2% for calendar year 2023, 2.7% for calendar year 2024 and 1.6% for calendar year 2025, based on the ENR CCI. Ryan Lee Page 2 December 18, 2025 The average of the 2025 ENR CCI increased 2.4% over the average of the 2024 ENR CCI, and the attached Water Capacity Charges and Sewer Connection Fees Schedule reflects an increase of 2.4%, effective January 1, 2026. The attached resolution confirms the increased capacity charges for calendar year 2026. Staff recommends that the District adopt Resolution No. 3325-25. SCHEDULE: New Capacity Charges Effective January 1, 2026 COSTS: N/A ACCOUNT NO: N/A BUDGETED AMOUNT AVAILABLE: N/A ATTACHMENTS: Resolution No. 3325-25, Water Capacity Charges and Sewer Connection Fees Schedule CONCURRENCE WITH REQUESTED ACTION: CATEGORY: Sewer/ Water GENERAL MANAGER: YES 14L NO Aa CHIEF FINANCIAL OFFICER: YES NO 1 RESOLUTION NO. 3325-25 2 A RESOLUTION BY THE BOARD OF DIRECTORS OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT CONFIRMING THE WATER CAPACITY 3 CHARGE AND SEWER CONNECTION FEE RATES FOR CALENDAR YEAR 2026 4 EFFECTIVE DATE OF JANUARY 1, 2026 5 WHEREAS, on November 17, 2022, the Board of Directors of the South Tahoe Public 6 Utility District approved Ordinance 585-22, establishing periodic adjustments to 7 water capacity charges and sewer connection fees, based on the increase in the Engineering News Record Construction Cost Index and effective January 1 st of 8 each year; and 9 WHEREAS, the 2025 average of the Engineering News Record Construction Cost 10 Index increased 2.4% over the 2024 average of the Construction Cost Index; and 11 WHEREAS, Ordinance 585-22 requires the Board of Directors' confirmation of the 12 water capacity charges and sewer connection fees annually. 13 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the South Tahoe 14 Public Utility District that the rates for calendar year 2026 included in the attached 15 Water Capacity Charges and Sewer Connection Fees schedules are confirmed, effective January 1, 2026. 16 17 WE, THE UNDERSIGNED, do hereby certify that the above and foregoing Resolution No. 3325-25 was duly and regularly adopted and passed by the Board 18 of Directors of the South Tahoe Public Utility District at a Regular meeting held on 19 the 18th day of December, 2025, by the following vote: 20 AYES: 21 NOES: 22 ABSENT: 23 24 Shane Romsos, Board President 25 South Tahoe Public Utility District 26 ATTEST: 27 Melonie Guttry, Executive Services Manager/ 28 Clerk of the Board South Tahoe Public Utility District Water Capacity Charges Effective January 1, 2026 Water Meter Size Water Capacity Fire Capacity Charge Charge 3/4-inch $12,617.00 1-inch $21,028.00 $56.00 1-1/2-inch $42,058.00 $162.00 2-inch $67,291.00 $347.00 3-inch $134,625.00 $1 ,009.00 4-inch $210,287.00 $2,150.00 6-inch $420,573.00 $6,249.00 8-inch $672,913.00 $13,318.00 10-inch $967,313.00 $23,950.00 12-inch $1 ,419,429.00 16-inch $1 ,892,572.00 Sewer Connection Fees Effective January 1, 2026 SEWER CONNECTION FEES Capacity Fee Residential Connection Fee $4.74 per square foot Residential Addition $4.74 per square foot in excess of 500 Commercial Connection Fee $864.00 per plumbing fixture unit Restaurant Connection Fee $1,081.00 per indoor seat 1-20 $216.00 per indoor seat 21 and over $0.00 per outdoor seat 1-20 $109.00 per outdoor seat 21 and over General Manager Paul Hughes Directors ��� • 1950 • w$ � South Tahoe Nick Haven Shane Rornsos Joel Henderson Kelly Sheehan Fublic Utility Di5trict Nick Exline 1275 Meadow Crest Drive•South Lake Tahoe•CA 96150-7401 Phone 530 544-6474•Fax 530 541-0014•www.5tpud.u5 BOARD AGENDA ITEM 7d TO: Board of Directors FROM: John Sheridan, Operations Supervisor MEETING DATE: December 18, 2025 ITEM- PROJECT NAME: 2025 Urban Water Management Plan Update REQUESTED BOARD ACTION: 1) Approve Task Order No. 34 to Kennedy Jenks in the amount of $85,496 for the 2025 Urban Water Management Plan Update; and 2) Authorize General Manager to execute Task Order No. 34. DISCUSSION: The District is required by the Department of Water Resources to submit an Urban Water Management Plan (UWMP) update every five years and is due on July 1, 2026. Kennedy Jenks prepared the District's previous UWMP and provided a proposal for the 2025 UWMP. The District has an existing Master Services Agreement (MSA) with Kennedy Jenks dated April 6, 2022, for consulting services and staff recommend utilizing this MSA to execute Task Order No. 34 for this work. This Contract will update the UWMP for the District, updating the UWMP to comply with the 2025 Guidelines, and will bring the District into compliance with the 2025 UWMP Guidelines. Section 10610 et seq. of the California Water Code which requires the preparation of a UWMP every five years for Urban Water Suppliers which are systems with greater than 3,000 connections. SCHEDULE: Upon Approval COSTS: $85,496 ACCOUNT NO: 20.30.4405 BUDGETED AMOUNT AVAILABLE: $90,000 for Plan IDENTIFIED CAPITAL IMPROVEMENT PROJECT (CIP): ❑ Yes M No ❑ N/A ATTACHMENTS: Task Order No. 34; Kennedy Jenks Proposal CONCURRENCE WITH REQUESTED ACTION: CATEGORY: Water 1 GENERAL MANAGER: YES �q NO CHIEF FINANCIAL OFFICER: YES � NO KENNEDY/JENKS CONSULTANTS TASK ORDER NO. 34 CONSULTING SERVICES This Task Order is made and entered into as of the day of December, 2025 by and between South Tahoe Public Utility District, hereinafter referred to as "DISTRICT" and Kennedy/Jenks Consultants hereinafter referred to as "CONSULTANT". In consideration of the mutual promises,covenants,and conditions as addressed in the Master Agreement dated April 6, 2022 and as specifically hereinafter set forth, the parties do hereby agree as follows: I. PURPOSE The purpose of this Task Order No.34 is to authorize and direct CONSULTANT to provide professional support services to update the Districts'2020 Urban Water Management Plan (UWMP)to comply with the 2025 UWMP Guidelines. 2. SCOPE OF WORK A full description of services is contained in CONSULTANT's written proposal dated November 18,2025 and is more specifically outlined therein as Task s(and sub-tasks) 1 through 4,with an Optional Task 5. Said proposal is attached hereto, marked Exhibit"A", and by this reference is incorporated herein. 3. STAFFING Staffing will be under the direction of Project Manager Sachi Itagaki, P.E. CONSULTANT shall not change staffing without approval by DISTRICT.Any changes shall provide for equivalent qualifications as far as possible and practical. 4. TIME OF PERFORMANCE Tasks commenced on December 18,2025, upon verbal Notice to Proceed issued by DISTRICT Staff,and will be completed on or before December 31, 2026, unless otherwise directed by the DISTRICT. 5. PAYMENT Payment to CONSULTANT for services performed under this Task Order shall be in accordance with CONSULTANT's fee schedule (attached as part of Exhibit"A")for the person assigned to the project task. The cost ceiling for this Task Order No. 34 shall be Eight Five Thousand Four Hundred and Ninety Six Dollars ($85,496). This amount shall not be exceeded except as provided in Article IV of the Master Agreement. 6. EFFECTIVE DATE This Task Order No. 34 shall be in effect upon acceptance and execution of same by all parties. 1 IN WITNESS WHEREOF,this Agreement executed by the General Manager and Clerk of the Board of the South Tahoe Public Utility District,and CONSULTANT, has caused this Agreement to be executed the day and yearfirst above written. SOUTH TAHOE PUBLIC UTILITY DISTRICT By: Paul Hughes, General Manager Attest: Melonie Guttry, Clerk of the Board KENNEDY/JENKS CONSULTANTS By Sachi Itagaki, Principal 2 KI Kennedy Jenks 18 November 2025 Mr. Adrian Combes, P.E. and Mr. Chris Stanley, P.E. South Tahoe Public Utility District 1275 Meadow Crest Drive South Lake Tahoe, California 96150 Subject: South Tahoe Public Utility District— Proposal for update of 2025 Urban Water Management Plan Dear Mr. Combes and Mr. Stanley: This letter proposal provides a scope of work and budget for updating the Urban Water Management Plan (UWMP, Plan) for the South Tahoe Public Utility District (STPUD, District). The UWMP will be updated to comply with the 2025 Guidelines for UWMPs, which is anticipated for release by the California Department of Water Resources (DWR) in Fall 2025 as a draft and as final in late 2025 — early 2026. Kennedy/Jenks Consultants, Inc. (KJ) is currently under a Master Services Agreement (MSA) contract with STPUD to provide Engineering Project Design Services [no contract number]. This work will be performed as a separate task order under the MSA dated 9 September 2011. Urban Water Management Plan Background STPUD has requested KJ to update the District's 2020 UWMP, prepared by KJ, to comply with the 2025 UWMP Guidelines. Section 10610 et seq. of the California Water Code (Water Code) requires the preparation of an UWMP and periodic updates. The Water Code also specifies the contents and procedures for adoption of the Plan. Plans must be adopted and submitted to DWR before December 31 for years ending in 5 or 0; recent legislation (Assembly Bill 149) has mandated that the 2025 UWMP Updates be due 1 July 2026. Please note that as of the date of this proposal, while significant amendments to the UWMP Act since the 2020 UWMP have not occurred, other related laws, legislation and planning may affect how the District assesses demands and supplies which include: • Making Water Conservation a California Way of Life. • Consistency with Groundwater Sustainability Plan. • Planning for compliance with the Water Loss Standard. • Continued compliance with SBx7-7 2020 Target. • Annual Water Shortage Assessments from 3- to 5-year duration. • Water System Seismic Risk Assessment and Mitigation Plan. Additional information regarding these requirements follows: • Making Water Conservation a California Way of Life (AB 1668 and SB 606): Rulemaking for Making Water Conservation a California Way of Life concluded July 3, 2024. For simplicity, the (650)853-2817 1 Sachiltagaki@kennedyjenks.com https://kjcnet.sharepoint.com/sites/wi bu marketingstaff/proposals/south_tahoe_pu bl ic_util ity_district ca/2025 uwm p_u pdate/I ette rp roposal_stp ud_2025uwm p_101325.doc Exhibit A K Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 2 Making Water Conservation a California Way of Life regulation is hereafter referred to as the California Water Use Objective (CWUO). The CWUO framework establishes individual efficiency goals for each urban retail water supplier based on the supplier's unique service area characteristics. The CWUO is a sum of efficient residential indoor water use, residential outdoor water use, real water loss, and efficient outdoor use in commercial, industrial, and institutional (CII) landscapes with dedicated irrigation meters. Starting in 2027, suppliers must meet the overall objective, not individual budgets, for residential outdoor water use or CI I water use. • Reporting Compliance with Water Loss Standard: Though the Urban Water Loss Standard is a separate regulation from the UWMP Act, within the 2025 UWMP, a supplier must report a summary of the past 5 years of water loss audit reports, report total system water losses for the current year and projected losses for future years, describe programs to assess and manage distribution system real loss in the last five years, and provide data demonstrating whether the supplier will meet its water loss performance standard. Compliance with the Water Loss Standard must occur before January 1, 2027. • Past Annual Water Shortage Report: Since 2022 Urban Water Suppliers have provided DWR with Annual Water Shortage Reports. The Annual Water Shortage Report is prepared using the current Water Shortage Contingency Plan (WSCP). Water supply and demand data and projections provided in the 2025 UWMP must be consistent with this past reporting. The update is also an opportunity to revise the WSCP and the drought response actions (demand reduction and/or supply enhancement) proposed by the District. • Sustainable Groundwater Management Act (SGMA, AB 1739, SB1168, and SB1319): UWMPs must consistently meet Groundwater Sustainability Plan (GSP) supply projections, if applicable. Since 2020, many groundwater sustainability plans have been completed, and many will reassess sustainability indicators, water budgets, and mitigation actions.The District's use of groundwater from a basin subject to SGMA, is governed by an "Alternate" document that is functionally equivalent to a GSP. • SBx7-7 Targets for Gallons Per Capita Per Day: Senate Bill 7 of Special Extended Legislative Session 7 (SBx7-7) introduced standards for water use. These standards are based on gallons per capita per day and target a reduction in per capita per day demand to be achieved by 2020. SBx7-7 was alternatively called "20 by 2020," which encapsulated that the regulation intended to reduce water use by 20 percent by 2020. Despite the tie to 2020, SBx7-7 does not have a sunset clause, and suppliers must comply with SBx7-7 targets in the 2025 UWMP. • Seismic Risk Assessment (SB 664): Similar to the 2020 UWMP, the 2025 UWMP must include a seismic risk assessment and mitigation plan to assess the vulnerability of each of the various water system facilities and mitigate those vulnerabilities. Compliance can be documented by submitting a copy of the most recently adopted local hazard mitigation plan (LHMP) or multi-hazard mitigation plan if that plan specifically addresses seismic risk to the water supplier's infrastructure. 2025 UWMPs are due for submittal to DWR by 1 July 2026. Please note that this will require the UWMP to be completed, provided for public review and adopted by the District's governing body at least 30 days prior to the 1 July submittal date. Please see the "Schedule" section of this Scope of Work for more detail and recommendations regarding this revision to the UWMP Act. (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kj cnet.sha repoint.com/sites/wi bu marketi ngstaff/proposa Is/south_tahoe_publ ic_uti I ity_district_ca/2025_uwmp_u pdate/letterpro posal_stpud_2025uwmp_101325.doc Exhibit A K Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 3 DWR has indicated that it will produce a final "Guidebook to Assist Water Suppliers in the Preparation of a 2025 Urban Water Management Plan" by the end of 2025. Amendments legislated to date have been incorporated into this proposal. Requirements promulgated by conversion of the amendments into guidance by DWR that take effect after this proposal date may require additional scope and budget. Scope of Services The scope of work for the 2025 UWMP is based on the current Water Code and the current Urban Water Management Plan contents, as well as the previous 2020 UWMP guidelines. Based on KJ's understanding of the legislative changes to the UWMP requirements, the following tasks to prepare the District's 2025 UWMP are proposed: Task 1 — Project Management The following project management activities are proposed: 1. Project Team Coordination and QA/QC — KJ's project manager will coordinate resources and staff dedicated to this project to complete the 2025 UWMP update by the required deadline. KJ's project manager will also implement and enforce internal Quality Assurance and Quality Control (QA/QC) programs. Invoices will be submitted on a monthly basis. 2. Project Kickoff Meeting — KJ proposes a kickoff meeting to discuss the District's expectations for the project, review District-provided information, request additional information, review timelines, and establish communication protocols for the project. The meeting will also be used to establish procedures for communication with District staff, other consultants, and neighboring water agencies. KJ will prepare an agenda for the kick-off meeting. After the kickoff meeting, KJ will prepare meeting notes, which will be provided to the District for review. District comments will be incorporated, and the notes will be finalized. The kickoff meeting is budgeted as a face-to-face one-hour meeting for attendance by one KJ staff but may be conducted by conference call/webcast as may be required by travel restrictions. 3. UWMP Conference Calls — KJ proposes to conduct periodic check-in calls with District staff. KJ will provide an agenda and prepare notes for all calls. Up to 6 one-hour calls are included in this budget. Task 2 — Data Collection and Background Information KJ will review District-provided background information regarding the District's service area, water supply, water demand, and water policies. The objective of this task is to gather available data necessary to satisfy the known requirements. KJ will provide a list of the required data necessary to complete the UWMP. 1. Initial Data Collection and Background Information Review consists of the following: a. 2020 Urban Water Management Plan (UWMP) b. Service Area GIS files for 2020 and present, if service area has changed since 2020 for use in the DWR Population Tool (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kj cnet.sha repoint.com/sites/wi bu marketi ngstaff/proposa Is/south_tahoe_publ ic_uti I ity_district_ca/2025_uwmp_u pdate/letterpro posal_stpud_2025uwmp_101325.doc Exhibit A K Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 4 c. Current and proposed land uses from City of South Lake Tahoe, El Dorado County, and Tahoe Regional Planning Agency d. Water resources, including reliability, from the 2022 Alternative Plan for the Tahoe Valley South Subbasin e. Energy use associated with water production f. Water quality issues, including known contaminants such as the South Y trichloroethylene (PCE) plume g. Current water rate structure h. Conservation accomplishments i. Conservation Ordinances currently or previously adopted by the District j. Planned modifications to the District water system and available supply (such as new wells and/or water treatment facilities) k. Water System Optimization Plan I. Current Local Hazard Mitigation Plan and other information related to water system seismic risk and mitigation m. Recycled Water Facilities Master Plan n. Progress towards meeting SBX7-7 legislative goals o. Five years of water loss audits p. 2019 Tahoe Demand Study prepared by KJ KJ assumes the above information is readily available from the District and will provide District staff with a Data Collection Form to assist them in collection of the data. Task 3 — Prepare 2025 Urban Water Management Plan Sections The District's 2025 UWMP will be prepared to meet the applicable State requirements. The UWMP is due by July 1, 2026. The State is expected to issue guidelines by the end of 2025. The following subject areas have traditionally been included in the UWMP and are supplemented by the expanded requirements: 1. Update System Description —The existing description of the District's service area will be updated to reflect current conditions and satisfy the requirements of the Urban Water Management Planning Act. Land use and population estimates will be updated based on the District-provided information, as well as land use and population data collected and calculated by KJ. Population projections will be presented in 5-year increments for a 25-year period, through 2050. 2. Update System Water Use and Baseline and Targets —Water consumption estimates and projections will be updated based on District-provided information on recent water use, as well as population estimates calculated by KJ. Water demand projections will be presented in 5-year increments for a 25-year period, through 2050. The 2019 Tahoe (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kj cnet.sha repoint.com/sites/wi bu marketi ngstaff/proposa Is/south_tahoe_publ ic_uti I ity_district_ca/2025_uwmp_u pdate/letterpro posal_stpud_2025uwmp_101325.doc Exhibit A K Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 5 Demand Study will be used, in combination with review of recent demands and consultation with District staff, as a foundation for water demand projections. Included in the analysis for the 2025 UWMP will be the reporting of distribution system water loss for each of the five years preceding the plan update. It is assumed that District staff will provide the water audit reports for the last five years and/or other appropriate information to meet the distribution system water loss audit reporting requirement. KJ will review the audit information, provide comments as needed and incorporate it into the Plan. KJ will also report on the District's continued compliance with SB X7-7 mandates for a 20 percent reduction in urban water use by the year 2020. KJ will demonstrate the District's actual water use as compared to the previously established 2020 target. The UWMP will document the data and methods used to establish baseline, target, and actual gallons per capita per day use within the framework of the SB X7-7 Verification Form. 3. Update Water Supplies — KJ will review and update, if needed, the existing description of District water resources, including local water supplies, imported water supplies, potential for exchanges or transfers, and other potential water supplies. KJ will update the description of water quality, including any known contamination that may impact water resources using the 2022 Alternative Plan. KJ will also update, if needed, the availability of recycled water and its potential for use as a water source within the District. This will include analysis of the District's current and future recycled water plans. KJ assumes information about recycled water supplies relevant the District's service area is readily available from the Recycled Water Facilities Master Plan and other District documents. It is assumed that the District will provide any and all extant information about the availability of recycled water so that the DWR UWMP requirements can be met. KJ will also include specific information required by Section 10631(b) regarding groundwater supplies. KJ assumes information about groundwater supplies relevant to the District will be available from the Tahoe Valley South Groundwater Management Plan and Annual Reports. SB 606 also requires water suppliers to estimate the energy required to extract, convey, treat, store, and distribute water supply, which will be calculated using information provided by the District. 4. Update Water Supply Reliability— Using information from 2 and 3, KJ will evaluate the adequacy of the existing supply to meet the projected water demands as well as assess the frequency and magnitude of supply deficiencies. The supply reliability analysis will include the average water year, single dry water year, and multiple (5) dry water years (the UWMP Planning Act requires a 20-year planning horizon; KJ recommends 25 years, which in this case would be through 2050). In its guidance, DWR encourages UWMPs to consider the impacts of climate change. KJ proposes providing a summary of climate change impact analyses described in the District's 2019 Climate Adaptation Plan, the Tahoe-Sierra Integrated Regional Water Management Plan Climate Change Vulnerability Checklist, and any other recent documents. These reports will be summarized to describe the likely impacts of climate change on District water supplies. (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kj cnet.sha repoint.com/sites/wi bu marketi ngstaff/proposa Is/south_tahoe_publ ic_uti I ity_district_ca/2025_uwmp_u pdate/letterpro posal_stpud_2025uwmp_101325.doc Exhibit A K Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 6 This discussion of climate change impacts will be used as part of the required Drought Risk Assessment. As in the past, water suppliers will be required to include an assessment of the reliability of water supplies during normal, dry, and multiple dry years as compared to demand. UWMPs are now to include a comparison of supplies and demands for a drought lasting five consecutive water years. KJ will review historical drought hydrology (e.g. past changes in supplies and demands during drought), and plausible changes due to a climate change condition, as well as any anticipated regulatory changes, to evaluate supplies and demands over a 5-year drought. 5. Review and Update Water Shortage Contingency Plan — KJ will review and update the District's Water Shortage Contingency Plan (WSCP) integrating components from the 2020 UWMP, and the District's Water Shortage and Drought Response Standards and updating for 2025. The purpose of the WSCP is to prepare for drought, water supply reductions, failure of a water distribution system, other emergencies, or regulatory statutes, rules, regulations or policies reducing water supplies by state and federal agencies. The WSCP must demonstrate the ability of the District to meet demands under a supply shortage of greater than 50 percent. Emphasis is placed on protection of public health, sanitation, fire protection, and the general public welfare. Starting in 2022, each water supplier will have to report annually on their water supply and demand for that year. The 2025 UWMP must document the information each water supplier will use to make the assessment and the method of preparing the assessment which will be developed in consultation with District staff. The 2020 WSCP consists of the following elements, which will be reviewed with District staff: 1. Authorization/criteria for water shortage stages 2. Annual water budget forecast process and assessment, consisting of a methodology, process, and timeline for conducting the District's required Annual Water Budget. The proposed water budget will use a list of indicators that should be reviewed to determine if a water supply shortage is anticipated in any given year, the severity of the shortage, and the necessary level of response. 3. Supply shortage stages, with additional stages that would align with Water Code section 10632(e) and would be representative of critical water supply that could result after a natural disaster. The District currently has three water shortage stages. KJ proposes adding a fourth, fifth and sixth water shortage stage to align with Water Code section 10632(e) and would be representative of critical water supply that could result after a natural disaster. 4. Shortage response actions, including short-term supply augmentation actions and operational changes, voluntary and mandatory conservation actions, enforcement and variance, fines, allocation surcharges and monetary assessments, and appeals and variances 5. Revenue and rate impacts 6. Monitoring and reporting requirements (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kj cnet.sha repoint.com/sites/wi bu marketi ngstaff/proposa Is/south_tahoe_publ ic_uti I ity_district_ca/2025_uwmp_u pdate/letterpro posal_stpud_2025uwmp_101325.doc Exhibit A K Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 7 7. Implementation resources including authorities, communications plan, public outreach, ordinances, and enforcement KJ will work with District staff to develop the Draft WSCP update to be included with the UWMP. It is assumed the Draft WSCP update will undergo one round of revisions to create a Final 2025 WSCP. 6. Report Conservation and Water Demand Management Measures Implementation — KJ will review the demand management measures implementation narrative with District conservation staff and summarize the water demand management goals, programs implemented to date, overall progress, and effectiveness of the current program based on information provided by the District. 7. Evaluate Changes in Demand Needed to Comply with California Water Use Objective (CWUO) The District's existing and anticipated water demand relative to the CWUO resulting from Assembly Bill (AB) 1668 and Senate Bill (SB) 606 started in 2024 with on-line reporting. The CWUO is based on a sum of 6 major elements: • Residential Indoor Standard • Residential Outdoor Standard • Commercial Industrial and Institutional (CII) Outdoor Standard • Real Water Loss • Bonus Incentive for Potable Reuse • Limited Approved Variances The definition of"efficient" water use per AB 1668 and SB 606 ramps down over time. Notably, the standard for residential indoor water use is set as 55 gallons per capita per day (gpcd) through January 1, 2025; this decreases to 47 gpcd January 1, 2025 through January 1, 2030; and then ramps down again to 42 gpcd after January 1, 2030. KJ will use the Water Use Exploration Tool and other data provided by DWR to calculate the Water Use Objective that will apply in 2025, in 2030, in 2035, in 2040, in 2045, and in 2050. KJ will compare the CWUO to the water demands estimated in Item 2, above. KJ will summarize the comparison and the estimated demand reductions needed to be in compliance with the overall CWUO that will apply in 2025, 2030, 2035, 2040, 2045, and 2050. If the District would like assistance with achieving future CWUO objectives if needed, optional Task 5 can be authorized. Task 4— Prepare Draft/Final Plan The following steps are those traditionally conducted in the review and approval process for the 2025 UWMP for the District: 1. Administrative Draft— KJ will provide an electronic (Microsoft Word, PDF) Draft 2025 UWMP to the District including all DWR tables, figures, and appendices for District staff review. (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kj cnet.sha repoint.com/sites/wi bu marketi ngstaff/proposa Is/south_tahoe_publ ic_uti I ity_district_ca/2025_uwmp_u pdate/letterpro posal_stpud_2025uwmp_101325.doc Exhibit A K Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 8 2. Public Draft— KJ will incorporate staff comments/edits into a second draft for public review. KJ will work with District staff to present the Public Draft to the District's Board of Directors. 3. DWR Submittal — Based on District Board of Directors comments and direction, KJ will prepare the UWMP for submittal to DWR. Following the public hearing on the Public Draft Plan and adoption by District Board, KJ will prepare and provide the District with the DWR submittal UWMP in electronic format via file sharing, and on compact disk (CD). KJ will upload the UWMP and necessary attachments via the online DWR portal prior to the deadline of July 1, 2026 to comply with the UWMP Act. To comply with the UWMP Act it is assumed that the District will adopt this UWMP before submittal to DWR. It is also assumed the District will make the DWR submittal UWMP available to the public and land use agencies. 4. Public Notification — Documents/letters will be prepared by KJ for the District to notify the following agencies of the District's intent to develop and adopt the 2025 UWMP: a. Tahoe Regional Planning Agency b. City of South Lake Tahoe c. El Dorado County d. El Dorado County Water Agency 5. UWMP Board Presentation — KJ will prepare a brief(no more than 30 minutes) presentation on the Public Draft UWMP, the suggested agenda item for the District Board of Directors and one KJ staff person will attend and make the presentation to the District Board at a scheduled meeting. Optional Task 5— Other Urban Water Management Plan Support This optional task is provided to address scope not identified above including addressing water system seismic risk and mitigation measures, additional drafts, additional calls/meetings, addressing requirements from the final Guidelines expected in Fall 2025, to provide support to the District to address DWR comments on the 2025 UWMP, and comply with water use objectives as described below. An optional services budget for 40 hours is included for District consideration. If the need for optional services arises, the specific scope will be evaluated and an assessment made whether the optional services budget provided is sufficient to address the identified scope. Evaluating Water System Seismic Risk and Mitigation: As required by SB 664, the UWMP requires "a seismic risk assessment and mitigation plan to assess the vulnerability of each of the various facilities of a water system and mitigate those vulnerabilities. This bill would authorize an urban water supplier to comply with this requirement by submitting a copy of the most recent adopted local hazard mitigation plan or multihazard mitigation plan under specified federal law that addresses seismic risk." This optional task may be required if the 2022 local hazard mitigation plan or other available documents do not address seismic risk of water system and mitigations. This evaluation will also contribute to meeting a portion of the Risk and Resilience Assessment required by US EPA for update. (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kj cnet.sha repoint.com/sites/wi bu marketi ngstaff/proposa Is/south_tahoe_publ ic_uti I ity_district_ca/2025_uwmp_u pdate/letterpro posal_stpud_2025uwmp_101325.doc Exhibit A K Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 9 Addressing requirements from Final DWR 2025 UWMP Guidelines: This proposal is being prepared using the best currently available information. Additional requirements may result from the Final 2025 UWMP Guidelines which need to be addressed. Addressing DWR Comments: Following DWR review, KJ will work with District staff to revise (if necessary) the 2025 UWMP. Clarifications and minor changes do not require that an UWMP be "re-adopted", but more significant changes would require that the proposed changes be given public and agency notice, recirculated for public review, and re-adopted. Specific Strategies/Actions to Comply with Water Use Objectives: If it is found that the District will not comply with the future Water Use Objectives (Task 3, Item 7), KJ can work with District staff to conduct a more detailed analysis and evaluate the potential strategies/actions that can achieve compliance at the appropriate timeline. Optional services will be initiated after District authorization. Assumptions for Tasks 1-4: • The District will provide the information noted as part of Task 2 in electronic form (.mpk for GIS, .doc, .xIs, or .PDF as applicable). • District staff will provide the 2021 —2025 water audit/loss reports to meet the distribution system water loss audit reporting requirement. • The District's 2017 Local Hazard Mitigation Plan, currently being updated, is sufficient to meet the seismic risk assessment and mitigation plan requirement. • District comments will be consolidated into a single set of comments for each Draft. • District will pay any filing and newspaper noticing fees. • District will adopt the UWMP before submittal to DWR in compliance with the UWMP Act. • District will make the DWR Submittal UWMP available to the public and land use agencies. Deliverables for Tasks 1-4: • Monthly invoices in electronic (PDF) format • Kick-off conference call/webcast agenda and notes, along with data needs list, one copy in electronic (PDF) format. • Monthly check-in agenda and notes, as needed in electronic (PDF) format • Data Collection Form in Word format • Final Water Shortage Contingency Plan in electronic (PDF) format • Administrative Draft and Public Draft 2025 UWMP in Word and electronic (PDF) format • Final (DWR Submittal) 2025 UWMP in electronic (PDF)format • Public notification letters and postings (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kj cnet.sha repoint.com/sites/wi bu marketi ngstaff/proposa Is/south_tahoe_publ ic_uti I ity_district_ca/2025_uwmp_u pdate/letterpro posal_stpud_2025uwmp_101325.doc Exhibit A V Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 10 • UWMP STPUD Board Presentation Schedule KJ recommends having the Public Draft 2025 UWMP completed by May 2026 to allow for agency notifications, public review, and District adoption. Please note that the UWMP Act requires the following: 1) "...any city or county within which the supplier provides water supplies" was notified at least 60 days prior to the UWMP public hearing that the plan was being reviewed and changes were being considered, and 2) provide documentation that within 30 days of submitting the UWMP to DWR, the adopted UWMP has been or will be available for public review during normal business hours. KJ proposes the following schedule: Notice to Proceed November 2025 Task 1 - Project Management Project Team Coordination, QA/QC, Invoicing November 2025—July 2026 Project Kick-off Meeting November 2025 UWMP Meetings November 2025—July 2026 Task 2 - Data Collection and Background Information November 2025— December 2025 Task 3 - Prepare 2025 UWMP Sections Update Service Area and System Water Use December 2025—January 2026 Update Water Resources and Supply Outlook December 2025— March 2026 Climate Change Impacts and Drought Risk Assessment December 2025—January 2026 Review and Update Water Shortage Contingency Plan December 2025 — February 2026 Report Water Demand Management Measures November 2025—January 2026 Implementation Task 4 - Prepare Draft/Final Plan Administrative Draft UWMP March 2026 Public Draft UWMP April 2026 DWR Submittal UWMP June 2026 Public Notification April 2026 — May 2026 UWMP STPUD Board Presentation May—June 2026 Optional Task 5 - UWMP Support Evaluating Water System Seismic Risk and Mitigation Late 2025—early 2026 Addressing DWR Comments on 2025 UWMP Late 2026—2027 Strategies/Actions to Comply With Water Use Mid- 2026 Objectives (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kjcnet.sharepoint.com/sites/wibumarketi ngstaff/proposals/south_tahoe—public_util ity_distdct_ca/2025_uwmp_update/letterproposal_stpud_2025uwmp_101325.doc Exhibit A F Kennedy Jenks Mr. A. Combes and Mr. C. Stanley South Tahoe Public Utility District 18 November 2025 Page 11 Budget The total budget and a summary of the cost breakdown for each task is shown below in accordance with our enclosed January 1, 2025 Rate Schedule. The budget includes 3% escalation of 2025 rates as tasks overlap 2025 and 2026. Estimated Estimated Task# Description Hours Budget Task 1 Project Management 68 $18,237 Task 2 Data Collection and Background Information 23 $5,549 Task 3 Prepare 2025 UWMP 120 $27,701 Task 4 Prepare Draft/Final Plan 93 $20,730 Tasks 1 through 4 304 $72,217 Optional Task 5 UWMP Support 50 $13,279 Total 354 $85,496 We look forward to continuing our work with STPUD on this important project. Please contact me at (650) 852-2817 if you have any questions or require additional information. Very truly yours, Kennedy/Jenks Consultants, Inc. ,"4 `� Ge' Sachiko Itagaki, P.E. Principal Engineer Enclosure Proposal Fee Estimate Rate Schedule—January 1, 2025 (650)852-2817 1 Sachiltagaki@kennedyjenks.com https://kjcnet.sharepoint.com/sites/wibumarketi ngstaff/proposals/south_tahoe_publ ic_util ity_district_ca/2025_uwmp_update/letterproposal_stpud_2025uwmp_101325.doc Exhibit A Proposal Fee Estimate Kennedy Jenks CLIENT Name: South Tahoe Public Utility District PROJECT Description: 2025 UWMP Date: 1111812025 January 1,2025 Rates KJ KJ KJ KJ KJ o w ' w v r o d -0 .1 rn rn rn rn rn o f a° E a n 1°W Classification: ` ` ` ` ` Total U O O Lu Hourly Rate: $330 $310 $265 $240 $195 $145 Hours Fees 3% 4% Fees 10% Fees Task 1-Project Management 1.1 Project Team Coordination, Invoicing 2'. 8'.. 8 18 $3,940'.. $118'.. $162', $0 $4,058 $162 $4,221 OAOC 8 3 2. 0 2 15 $4,490 $135 $185 $0 $4,625 $185 $4,810 3.5 Review and Update Water Shortage Contingency Plan 2 Water Use Objectives 1 2 Administrative Draft UWMP 4,,,.. 1.2 Project Kickoff.Meeting 1',. 7',. 6,,,.. 14 $3,355'.. $101'.. $138'.. $0 $3,456 $138 $3,594 1.3 UWMP Conference Calls 4',. 8,,,. 1',. 8,,,. 21 $5,240'. $157'.. $216'. $0 $5,397 $216 $5,613 Task 1-Subtotal 15,,,.. 3 25,,,.. 1',. 16,,,.. 8 68 $17,025''. $511''.. $701''.. $0,,,. $0 $17,536 $701 $18,237 Task 2-Data Collection and Background Information Data Collection and Background Information Review 1 8, 14 23 $5,180'.. $155'.. $213''.. $0 $5,335 $213 $5,549 Task 2-Subtotal 1',. 0 8,,,.. 0,,,.. 14',. 0 23 $5,180'.. $155'.. $213''.. $0,,,.. $0 $5,335 $213 $5,549 Task 3-Update 2025 UWMP Sections 3.1 Update System..Description 2. 4. 6 12 $2,660''. $80'.. $110''. $0 $2,740 $110 $2,849 3.2 Update System Water Use and Baseline and Targets 4 12 16 $3,400 $102 $140 $0 $3,502 $140 $3,642 3.3 Update Water Supplies 4 8 12 $2,620. $79.. $108 $0 $2,699 $108 $2,807 3.4 Update Water Supply Reliability 2 8 10 $2,090 $63 $86 $0 $2,153 $86 $2,239 3.5 Review and Update Water Shortage Contingency Plan 8 24 32 $6,800 $204 $280 $0 $7,004 $280 $7,284 3.6 Report Conservation and Water Demand Management Measures Implementation 4..... 10 14 $3,010 $90 $124 $0 $3,100 $124 $3,224 3.7 Water Use Objectives Evaluation 2 4',. 2',. 16,,,.. 24 $5,280'.. $158'.. $218''.. $0 $5,438 $2181 $5,656 Task 3-Subtotal 0',.. 2 28,,,.. 6,,,.. 84,,,.. 0 120 $25,860''. $776''. $1,065''. $0,,,. $0 $26,636 $1,065 $27,701 Task 4-Prepare Draft/Final Plan 4.1 Administrative Draft UWMP 4',.. 28,,,.. 6 38 $7,390''. $222''.. $304'.. $0 $7,612 $304 $7,916 4.2 Public Draft UWMP 4 14 2 20 $4,080''.. $122''.. $168''. $0 $4,202 $168 $4,370 4.3 DWR Submittal UWMP 4 16 2 22 $4,470''.. $134'.. $184'.. $0 $4,604 $184 $4,788 4.4 Public Notification 1 2 3 $655''.. $20''.. $27'',. $0 $675 $27 $702 4.5 UWMP STPUD Board Presentation 2 4,. 4 10 $2,500 $75 $103 $250 $25 $2,575 $378 $2,953 Task 4-Subtotal 2',. 0 17',. 0,,,.. 64,,,.. 10 93 $19,095',. $573'.. $787'.. $250'.. $25 $19,668 $1,062 $20,730 Tasks 1-4 Total 18'.. 5 78'.. 7'.. 178'.. 18 304 $67,160'.. $2,015'.. $2,767', $250'.. $25 $69,175 $3,042 $72,217 Optional Task 5-UWMP Support Optional Task 5-Subtotal 6'. 4 16'.. 0'.. 24'. 0 50 $12,140'.. $364', $500'.. $250'.. $25 $12,504 $7751 $13,279 All Tasks Total 24'. 9 94'.. 7'.. 202'.. 18 354 $79,300'.. $2,379'.. $3,267'.. $500'.. $50 $81,679 E3,817 $85,496 Mlps:llkjc�tsMiepoiM.comSiles/WIBUMadcetingStaRlPmposaWSoNh_T*l PuNic_Wlity_DlsVicl_CA025_UWMP_Update/Pmp-1F,,EsbmW STPUD2025UNMP_101325 Exhibit A ®tam Kenrertyuenks co,suirenrs,uc. South Tahoe PUD N Kennedy Jenks Client/Address: 1275 Meadow Crest Drive South Lake Tahoe, CA 96150 Contract/Proposal Date: November 18, 2025 Schedule of Charges January 1, 2025 PERSONNEL COMPENSATION Classification Hourly Rate Engineer-Scientist-Specialist 1...........................................................................$165 Engineer-Scientist-Specialist 2...........................................................................$195 Engineer-Scientist-Specialist 3...........................................................................$220 Engineer-Scientist-Specialist 4...........................................................................$240 Engineer-Scientist-Specialist 5...........................................................................$265 Engineer-Scientist-Specialist 6...........................................................................$285 Engineer-Scientist-Specialist 7...........................................................................$310 Engineer-Scientist-Specialist 8...........................................................................$330 Engineer-Scientist-Specialist 9...........................................................................$350 Senior CAD-Designer........................................................................................$200 CAD-Designer...................................................................................................$190 Senior CAD-Technician .....................................................................................$180 CAD-Technician ................................................................................................$160 Project Administrator.........................................................................................$135 In addition to the above Hourly Rates, an Associated Project Cost charge of$9.74 per hour will be added to Personnel Compensation for costs supporting projects including telecommunications, software, information technology, internal photocopying, shipping, and other support activity costs related to the support of projects. Direct Expenses Reimbursement for direct expenses, as listed below, incurred in connection with the work, will be at cost plus ten percent for items such as: a. Maps, photographs, 3rd party reproductions, 3rd party printing, equipment rental, and special supplies related to the work. b. Consultants, soils engineers, surveyors, contractors, and other outside services. c. Rented vehicles, local public transportation and taxis, travel and subsistence. d. Project specific telecommunications and delivery charges. e. Special fees, insurance, permits, and licenses applicable to the work. f. Outside computer processing, computation, and proprietary programs purchased for the work. Reimbursement for vehicles used in connection with the work will be at the federally approved mileage rates or at a negotiated monthly rate. If prevailing wage rates apply, the above billing rates will be adjusted as appropriate. Overtime for non-exempt employees will be billed at one and a half times the Hourly Rates specified above. Rates for professional staff for legal proceedings or as expert witnesses will be at rates one and one-half times the Hourly Rates specified above. Excise and gross receipts taxes, if any, will be added as a direct expense. Exhibit A Grant Program Update Donielle Morse Grant Coordinator December 18, 2025 Grant/SRF- Funded Project Accomplishments • Water Loss Reporting Dashboard AMI Base Station Installation • Washoan/Acoma PRV • 9 Toilet Sensor Pilot Program Upper Truckee Pump Station Rehab • Herbert/Walkup/Bijou #1 WaterlinesSOUTH TAHO, Grant- Funded Action • Strengthening Cyber Resilience • • Al Tahoe/B ayview Well Backup Power • AMI Meter Installation • • Design Conservation Decision Support Tools • Hazardous Fuels Reduction • TWFSP FY23, FY24, FY25 s°°TH 'AN°f 42 UTILITY°IST Grant- Funded P Local Hazard Mitigation Plan (EDWA Funding) • Co-lead the plan update • Identify critical projects • Maintain eligibility for FEMA funding Wildfire Resilience Planning (EDWA Funding) • Structural Hardening Assessments for water infrastructure SOUTH TA/IOC 4`B R P`O1 'C UTILITY M� e The District is managing . . . Grants -� C 4...) 8 • SRF � �� 191700100 Loans Compliance and Monitoring • Clean Single Audit for FY25 • Reviewing 2025 OMB Compliance Supplement • Elevating knowledge and practices through training and education • Kickoff and Check-in meetings • Enhanced procedures • Developed robust Subrecipient Monitoring Program • Subrecipient Compliance Checklist TH TA • Site visits District Pulse • Capital Improvement Plan Development • Participating in CIP workshops • Funding Strategy • Meeting with District departments to determine funding needs/priorities • Project/Funding Coordination Meetings • Pioneer Trail Waterline and PRV Upgrade Project SOUTH TA#to,, Funding Op Negotiating funding agreement from Bureau of Land Management • ICR Nutrient Control Project Following CA Prop 4 Bond Allocations Proposition 4 Expenditure Plan: 2025-26 Budget Package Category Bond Total 2025;.26 Percent of Total Safe Drinking Water, Drought,Flood, and Water Resilience $3,800 $1,199 32% Wildfire and Forest Resilience 11500 598 40 Coastal Resilience 1,200 279' 23 Biodiversity and Nature-Based Climate Solutions 1,200 390 33 (Clean Energy 850 2751 33 SOUTH TAMpc Park Creation and Outdoor Access 1 700 4661 67 Extreme Heat Mitigation 450 110 25 , Climate Smart Agriculture 300 153 51 C UTILITY 01 Totals $10,000 $3,470 35% Funding Opportunities ( Cont . ) TWFSP FY26 Grant Funding • Park Avenue Waterline Fire Suppression Improvements • Lake Tahoe Blvd Waterline Fire Protection Water Strategy and Planning • Export System Upgrades • Mains out of Meadows Evaluating Local Opportunities • Coordination with EIP Working Groups ice � suoi s ;gn ?D So0TH rwNOE 10 �e41C UTILITY 019tA`� AYEAR IN REVIEW : WATER EFFICIENCY PROGRAM Lauren Benefield Water Conservation Specialist 12/ 18/2025 j m Annual Water Production 1988 - Nov. 2025 4,000 3,500 Water Conservation 3,000 Progrnm 2,632 2,659 20X2020 2,519 2,552 2,446 2,426 2,488 2,500 2,326 2,280 2,313 314 2,256 254 Water Use Eff 2,210 2,236 2,226 2 2,195 ,213 2,129 2,133 2,124 2,o2s 2,065 Standards 1,964 1,958 1,935 2,000 183 s 1,793 1,708 1 1,579 1,615 1,515 1,500 1,000 Water Meter Install 500 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003'FOZT 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Average Monthly Water Production 2025 400 300 216 200 200 188 166 142 115 110 100 88 January February March April May June July August September October November December CUSTOMER SERVICES a a 11 0 1 111 REBATES FREE SERVICES TURF BUY BACK ...III a cam . WATER WISE LANDSCAPE CONSULTATIONS sue ' 2025 I - '� 0 :r z' TURF BUY BACK � . Conversions • 2025 — 28 customers N a3 2024 — 35 customers BEFORE • 2023 - 22 customers Square Feet Converted • 2025 — 121 ,642 sq ft • 2024 — 50, 109 sq ft t S • 2023 — 27,325 sq ft - t _ SU7M Tq„ Residential — $1.50 per square foot up to $3,000 or 2,000 sqft A F„T E R Commercial — $1.50 per sq ft up to $5,000 or 3,333 sqft �M°"`m°gt LEAK DETECTION 3,61 1 Leak Alerts Sent L 600 Customer Conversations 231 Customer Initiated Leak Checks Minimum —4.2 million gallons water saved GP" I 1 Q1 This is a seasonal house. We discovered the leak under the house when the sprinklers were u Minimum turned on. Duration Leak Found-7 Gallons Per Hour Confirmed as Outdoor Watering System 1 - The toilet was running after we left for reno for the night. Just returned home after receiving � .ts' 3�<s your msg (thank you) and heard water in the bathroom. When I checked, the ball valve was stuck. Leak Found -19S Gallons Per Hour I�' Confirmed as Toilet + $ourrr rApoe �e�M ornrry 04 REBATES Irrigation Controller Rebate • 2025 — 15 controllers; $ 1 ,472.91 • 2024 — 25 controllers; $2,298. 12 • 2023 — 16 controllers; $ 1 ,586.78 I R R I GAT I O N Clothes Washer (sunsetjune 30, 2025) $ $ CONTROLLER REBATE Get paid for updating your irrigation 2025 — 24 clothes washers; $4,800 �7 controller with a WaterSense controller. • 2024 — 49 clothes washers; $9,800 se,� Apply at • 2023 — 29 clothes washers; $6,200 mywater.stpu us v s E PA Gtti Toilet Rebate (sunset June 30, 2025) • 2025 — 16 properties; $2,643.9 I v • 2024 — 43 properties; $6,441 .73 000 • 2023 — 39 properties; $3,745.04 $QU X TAN Leak Repair M rtv rn • 2025 — 15 leaks repaired; $8,880.68 • 2024 — 35 leaks repaired; $22,220.37 2023 — 24 leaks repaired; $ 1 1 ,452.06 OOOTH TANO& Pile UTILITY tj%atp,� MOEN Smart Water Shut Off— program added July 2025 CNSRV Commercial Kitchen Defroster — program added July 2025 OUTREACH DIGITAL FARMERS COMMUNITY TAHOE FRIENDLY TAHOE FRIENDLY MESSAGING MARKETS EVENTS GARDEN CLASSES GARDEN TOUR 0OUTH TA/f0! �ll1C UTILITY 01 Fans&Followers across networks DIGITAL MESSAGING 2,207 followers © southtahoepud ... �" 615 from 1,592 Onglnal aud,o Views southtahoepud Insulate your exposed pipes!Q As temperatures Views 2,263 drop below freezing at night,protecting your home plumbing from s Post impressions across networks POV: Me when I see exposed the damage and expense caused by frozen pipes is essential. Followers 3.8% water pipes that have been Non-followers 96.2% insulated ,l i• Accounts reached 1,766 ik Interactions Interactions 27 Followers 42.9% Non-followers 57.1% View insights Reels interactions 27 4% Linkedln Page 7.1K Likes 25 (] Comments O SOUTN TA#to o ;ft!Liked by worldtravelinlo and 24 others _ January 30 Q Saves 0 AG Shares 2 e�le UTIL rrY 01 OAdd a comment... COMMUNITY EVENTS 11UTH TAHOE PUBLI'C UTILITY DISTR } t - • Farmers Markets F, r� • Business Expo BIG RL • SLB/ ST Earth Day Festivals ---- ' • Tahoe Kids Expo - b p� • G row Your Own Festival ` • Tahoe Summit _ • TAM BA Festival _- Leak Art Cotlaae, n • Wildfire Safety Expo - - n: • A Day in Paradise Park • FireFest 2025 • Meyers Mountain Fall Festival OUT TAMO! • Neighborhood Firewise Events .;; �tM urnRr w�� :. A3 TAHOE FRIENDLY rr¢ GARDEN CLASSES � �• PUTTING YOUR GARDEN TO BED: ' w.` LATE FALL GARDENING 7 Classes �• r 'tea • attendees per class _ I ~ 131 attendees total $ATURDAY,OCTOBER 11 What You'll Learn: @ 1 PM \; S N, Fall planting advice 9 Fall and winter watering KEEP TAHOE BLUE How to protect irrigation systems Topics- , EDUCATION CENTERClass 2877 LAKE TAHOE BLVD and gardens in the winter S.LAKE TAHOE,CA • Tahoe Tough Plants `' o .. ,o ' "X-iP. LEARN MORE HERE • Container Gardening • Shade Gardening • Efficient Watering Practices • Putting your Garden to Bed w/ KTB •OUTH TARO! �•�M UTILITY U— u• Yx` t 7 Gardens .' b •"k F�'a ., �. .e 2025 TAHOE FRIENDLY GARDEN TOUR • Edible Food Space - • Defensible ''°° Turf Buy Back Shade Gardens h�` URBAN WATER USE OBJECTIVE Urban Water Use Objective (UWUO) + YA 16 + U r7 U + + Indoor Residential Outdoor Residential CII-DIM Outdoor Water Loss Adjustments if Water Budget Water Budget Water Budget Budget applicable: Va►wnces. Temporary Proviswns.and/or Bonus Incentive 0OUTH TA/f0! ��liC UTILITY D%- FY 2025 _REPORT Actual Use Compared to Urban Water Use Objective The source datasets are located on the Open Data Portal. In Gallons/Year In Acre-Feet/Year UrbanObjective UrbanObjective Water Use • •• Component Total Residential Water Total Residential Water Use,Indoor+Outdoor 932,640,531.24 1,239,157,405.40 Use,Indoor+Outdoor 2,862.16 3,802.83 Outdoor Irrigation of CII Outdoor Irrigation of CII landscapes associated with landscapes associated with DIMS 2,437,683.00 2,437,683.00 DIMS 7.48 7.48 System Water Loss 227,766,618.29 406,207,357.94 System Water Loss 698.99 1,246.60 Variances,Provisions,and Variances,Provisions,and 20%INI buffer,if applicable N/A 0.00 20%INI buffer,if applicable N/A 0.00 Bonus Incentive N/A 0.00 Bonus Incentive N/A 0.00 Sum of Water Use • •• •• • • •• •• • •• . Objective) Excluded Demands 569,857,615.42 569,857,615.42 Excluded Demands .831 1,748.83 SB X7-7 Target Volume Plus SB X7-7 Target Volume Plus Previously Excluded Previously Excluded Process and Recycled Process and Recycled Water N/A 2,387,467,920.00 Water N/A 7,326.87 "Capped"Objective N/A 1,647,802,446.23 "Capped"Objective N/A 5,056.92 Regional Alliance Met Regional Target?(If Regional Alliance Met Applicable) N/A Not Applicable Regional Target? N/A Not Applicable Final Comparison of Final Comparison of Actual Water Use to Actual Water Use to • Obje— 3,568.64 AWctive UPCOMING FOR CONSERVATION • • - Program Updates • Cannot Irrigate Participation in DWR • Toilet Sensor instatation and I Water working groups water use savings • Update/Board Report Rebate and Services Offered • Drought Impact Partnership February 2026 Grant funding — Community Survey • Ordinance Adoption Summer • 2019 Grant IWRM • Data Collection — assistance I 2027 • Bureau of Rec Grant with UWUO reporting • Compliance for governm Lsector January 1 , 2027 •OUTH TA/f0! �•l1C UTILITY 01 QUESTIONS ? Lauren Bene field lbenefield@stpud.us ::Mlllllllllllllllllllio,,IH&TA"O, General Manager Paul Hughes 1950 • Directors Nick Haven 7Zomsos South Shane Joel Henderson Fublic Utility Di5trict Kelly Sheehan Nick Exline 1275 Meadow Crest Drive•South Lake Tahoe•CA 96150-7401 Phone 530 544-6474•Fax 530 541-0014•www.stpud.us BOARD AGENDA ITEM 13a TO: Board of Directors FROM: Paul Hughes, General Manager MEETING DATE: December 18, 2025 ITEM- PROJECT NAME: Conference with Legal Counsel - Existing Litigation REQUESTED BOARD ACTION: Direct Staff DISCUSSION: Pursuant to Section 54956.9(d)(1) of the California Government code, Closed Session may be held for conference with legal counsel regarding existing litigation: Yolo County Superior Court Case CV 2021-1686, Alpine County vs. South Tahoe Public Utility District; et al. SCHEDULE: N/A COSTS: N/A ACCOUNT NO: N/A BUDGETED AMOUNT AVAILABLE: N/A IDENTIFIED CAPITAL IMPROVEMENT PROJECT (CIP): ❑ Yes ❑ No ® N/A ATTACHMENTS: N/A CONCURRENCE WITH REQUESTED ACTION: CATEGORY: General GENERAL MANAGER: YES NO c CHIEF FINANCIAL OFFICER: YES NO