South Lake Tahoe council regroups after mayor’s theft, resignation. ‘In a low spot’

The South Lake Tahoe City Council unanimously voted Tuesday to appoint a new mayor to serve out the remainder of former Mayor Tamara Wallace’s term after she publicly admitted to stealing from a house of worship and resigned, rattling residents’ confidence in its local government.

“I have trusted you guys to do the right thing for our city,” said South Lake Tahoe resident Loreen Sanchez during the meeting. “But, obviously I was mistaken.”

Wallace, recalled by constituents as a trusted leader, wrote in an Oct. 5 letter that she stole money for “an extended period” of time from the Lake Tahoe Community Presbyterian Church while she worked as its bookkeeper. The Rev. Dr. Greg Hughes said in an interview that preliminary estimates show Wallace stole more than $360,000 since about 2018, the same year Wallace’s LinkedIn says she began working for the church.

Tuesday’s City Council meeting marked the first time elected officials returned to the dais to handle government business since Wallace’s bombshell admissions, published by two local news organizations, and her Oct. 13 resignation.

Residents packed city chambers to express their disappointment in council members’ transgressions, seek more transparency and call for better behavior. Following Wallace’s confession, the city’s reputation crumbled further when it became public that Mayor Pro Tem Cody Bass had been arrested Sept. 25 on suspicion of verbal and physical assault.

“This is not what our city needs,” said South Lake Tahoe resident Robert Aaron during the meeting.

The South Lake Tahoe City Council voted to replace Wallace by selecting one of the four remaining council members to serve out her one-year mayoral term. They also voted unanimously to appoint a new person to fill the vacant seat on the council. That vacant seat will be up for re-election in November 2026. Elected officials will solicit applications until Nov. 17.

If the leaders cannot choose a person to appoint to the empty city council seat, a special election will be held June 2.

Wallace, first elected to the dais in 2018, was serving her second, nonconsecutive term as mayor this year. Council members on Tuesday voted Bass to serve as the city’s top elected official until December, which would have been the end of Wallace’s second term as mayor.

A regular election will be held next year to fill Wallace’s vacated seat as well as Bass’ and Councilmember Scott Robbins’ seats. Council members declined to appoint a mayor pro tem after Bass ascended to the mayoral position.

Sanchez, a resident who appeared at the City Council meeting for public comment, noted small business are struggling. She added “we all have ghosts in the closet” but pleaded with council members to focus on uplifting this community.

Public commenters gave a mixed reaction to Bass’ brush with law enforcement — some called on him to resign while others expressed their support for him.

Bass, from the dais, said he was falsely accused and requested community members give him a chance for his case to play out in court.

“I never assaulted a single person,” Bass said. “I am absolutely innocent to the fullest degree.”

South Lake Tahoe City Manager Joe Irvin acknowledged the city must rebuild trust with its constituents but maintained confidence in its about 230 employees to provide vital services for residents.

“This is a hiccup and a bad day for our community,” he said in an interview with the Sacramento Bee. “We’re in a low spot. I’m committed, through, to working to help us regain the trust and maintain a positive reputation.”

Wallace’s two headlining-making announcements — stealing and resigning as mayor — caught Irvin by surprise.

He read with the rest of the world about Wallace’s conduct at the Lake Tahoe Community Presbyterian Church and said he has not spoken with her since her exposé.

“I am disappointed,” Irvin said.

Irvin said he’s worked for years to rebuild the city’s reputation after many people serving in his position left in a short period. He’s now focused on making sure normal city business resumes to serve residents: filling potholes, staffing lifeguards and plowing streets.

Individual council members do not have access to the city’s money and an independent auditor scrutinized its finances to find a clean bill of health, he said.

“We’ll work for the people of South Lake Tahoe and listen to them,” Irvin said.

This story was originally published October 21, 2025 at 9:49 PM.