Calistoga City Council
November 1, 2022

Mayor
Chris Canning
Vice Mayor
Irais Lopez-Ortega
Councilmembers
Lisa M. Gift
Gary Kraus
Donald Williams
AGENDA
City Council - Regular Meeting
Tuesday, November 1, 2022 - 6:00 PM
Calistoga Community Center
1307 Washington Street, Calistoga, CA 94515
And Via Zoom - Hybrid

* COVID-19 NOTICE *

THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF GOVERNMENT CODE SECTION 54953 (AS AMENDED BY AB 361) WHICH AUTHORIZES TELECONFERENCED MEETINGS UNDER THE BROWN ACT DURING CERTAIN PROCLAIMED STATES OF EMERGENCY. THE GOVERNOR OF CALIFORNIA PROCLAIMED A STATE OF EMERGENCY RELATED TO COVID-19 ON MARCH 4, 2020.

THIS TELECONFERENCED MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT ESSENTIAL BUSINESS AND IS PERMITTED UNDER GOVERNMENT CODE 54953 IN ORDER TO PROTECT PUBLIC HEALTH AND SAFETY OF ATTENDEES.

City Councilmembers and staff essential to this meeting will be present at the meeting or may teleconference into the meeting.

Below is information on how the public may observe and participate in the meeting. The City recognizes that not all residents have the same ways to stay engaged, so several alternatives are offered as shown below:

1. Watch on your TV – Napa Valley TV Channel 28 (call your cable provider to ensure you have a City of Calistoga coded cable box)

2. Listen or participate via your phone – dial 1-669-900-6833, enter webinar ID: 829-0729-5419, password: 123201

3. Watch or participate online via Zoom - click this link and enter password: 123201

4. Watch online via YouTube Live at youtube.com/cityofcalistoga

5. Attend In-Person
COMMENT ON THIS MATTER DURING THE MEETING: Please participate in the meeting by providing public comment on any item on the agenda or any item of municipal concern. In Person: Fill out a Speaker Card and provide to the City Clerk before the meeting begins. Virtual (Zoom): click the "Raise Your Hand" button to request to speak when Public Comment is being taken on the Agenda item. You will be unmuted when it is your turn to make your comment for up to 3 minutes. After allotted time, you will be re-muted. Instructions for how to "Raise Your Hand" are available at: https://support.zoom.us/hc/en-us/articles/205566129-Raise-HandIn-Webinar.

WRITTEN COMMENTS: Alternatively, you may provide public comment on any item on the agenda or of municipal concern via email. Please submit your comment, limited to 350 words or less, via email to [email protected]. Written public comments submitted by email should clearly indicate the Agenda Item No. or Specify “Oral Communications” in the Subject Line for items not on the agenda and are requested to include the submitter’s full name. To ensure the City Council receives your written comments prior to taking action, they must be received by 2:00 p.m. on the day of the meeting. All written comments received by this deadline will be provided to the City Council and posted online in advance of the meeting. Comments received after the 2:00 p.m. deadline will be provided to the City Council and included with supplemental materials after the meeting. No written comments will be read verbally at the meeting. The City of Calistoga thanks you in advance for taking all precautions to prevent spreading the COVID-19 virus. Note: The methods of observing or listening to the meeting or providing public comments may be altered or the meeting may be cancelled, if needed, due to certain technical disruptions.

Page

1. CALL TO ORDER – ROLL CALL - SALUTE TO THE FLAG

2. REPORT FROM CLOSED SESSIONS

3. ORAL COMMUNICATION ON CONSENT ITEMS OR NON-AGENDA ITEMS This time is set aside to receive comments from the public regarding matters on the Consent Calendar or matters of municipal concern not on the agenda.

Pursuant to Government Code section 54954.3 (the Brown Act), however, the Council cannot consider any issues or take action on any requests during this comment period. Speakers are encouraged to limit their comments to 3 minutes maximum so that all speakers have an opportunity to address the City Council.

4. ADOPTION OF MEETING AGENDA

5. CITY MANAGER’S REPORT

6. PROCLAMATIONS/PRESENTATIONS/ AWARDS

6.1. Update on recent water conservation rates, public outreach efforts, and current drought conditions.

Recommended Action: Receive presentation.

Staff Report - Water Conservation Presentation - Pdf
Updated Water Conservation Presentation Shown During CC Mtg. 5 - 29

7. CONSENT CALENDAR

7.1. Approve the Minutes of the June 7, 2022, City Council Regular Meeting as submitted.

Recommended Action: Approve Minutes
Staff Report & Minutes
30 - 36

7.2. Consider adopting a Resolution that amends the Personnel and Staffing Listing by making a technical correction by adding 1.0 FTE Fire Captain and deleting 1.0 FTE Fire Fighter.

Recommended Action: Adopt a Resolution approving a technical amendment to the Personnel and Staffing Listing.

Staff Report - Resolution Approving a Technical Amendment to the Authorized Personnel and Staffing Listing - Pdf
37 - 39

7.3. Consider adopting a Resolution Accepting a Notice of Completion for the Berry Street Pavement Rehabilitation Project.

Recommended Action: Consider adopting Resolution.

Staff Report - Notice of Completion for the Berry Street Pavement Rehabilitation Project - Pdf
40 - 44

7.4. Consider adopting Resolution authorizing and Delegating the City of Napa to submit an application on its behalf and Administer the Permanent Local Housing Allocation (PLHA) program; and authorize the City Manager to sign a binding delegation agreement with the City of Napa for the period encompassing five (5) years of formula allocations (2019- 2023), made available in Notice of Funding Availability (NOFA) issued by 45 - 58

the State beginning in February 2020 and extending through 2024, including all years stipulated in the State standard agreement.

Recommended Action: Consider adopting the Resolution.

Staff Report - Senate Bill 2 Permanent Local Housing Allocation Grant Application - Pdf

8. GENERAL GOVERNMENT

8.1. Initiation of the Communities Facilities District (“CFD”) formation process for the Purpose of Acquisition and Maintenance of the Napa Valley Fairgrounds including calling for a future public hearing.

Recommended Action: Consider approving (1) a Resolution establishing Goals & Policies, (2) a Resolution of intention to form a CFD and levy a special tax, and (3) a Resolution of intention to incur indebtedness to finance the acquisition and construction of certain public facilities.

Staff Report - Consideration of Approval of Goals & Policies & Resolutions Necessary to Form a Communities Facilities District (“CFD”) Fairgrounds Property - Pdf
Item 8.1 - Public Comment - Redacted
Item 8.1 - Supplemental Public Comment
59 - 98

9. COUNCIL REQUESTS AND IDEAS FOR DISCUSSION

10. ADJOURNMENT
NOTICE: If you challenge a city’s zoning, planning, or other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Judicial review of any City administrative decision may be had only if a petition is filed with the court not later than the 90th day following the date upon which the decision becomes final. Judicial review of environmental determinations may be subject to a shorter time period for Litigation, in certain cases 30 days following the date of final decision.

Pursuant to GC §54957.5 any writings/documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection on the City website at www.ci.calistoga.ca.us.

Any supplemental writings or documents distributed to a majority of the City Council regarding any item on this Agenda, after the posting of the Agenda, will be available for public review in the City Clerk’s Office located at 1232 Washington Street, Calistoga, California, during normal business hours and by appointment. In addition, such writings or documents will be made available on the City’s website.

AMERICANS WITH DISABILITIES ACT: The City can provide special assistance for persons with disabilities to participate in public meetings. To make a request for disability-related modification or accommodation please contact the City Clerk at [email protected] or (707) 942-2807. If you need assistance or accommodation, please provide notice at least 48 hours prior to the meeting. For TTY/ Speech-to-Speech users, dial 7-1-1 for the California Relay Service, offering free text-to-speech, speechto-speech, and Spanish language services 24 hours a day, 7 days a week.

Se les pide por favor que avise con 48 horas de anticipación cuando haga un pedido para asistencia. Esto les da suficiente tiempo antes de la junta para permitir que la ciudad tome medidas razonables.

POSTING: I declare a copy of this agenda was posted at City Hall, 1232 Washington Street, Calistoga, among other locations in the city limits of Calistoga, on October 25, 2022, by 4:30 p.m.

City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Mitchell Egert, Water Conservation Technician
Meeting: City Council - Nov 01 2022
Subject: Water Conservation Presentation
DESCRIPTION:

Update on recent water conservation rates, public outreach efforts, and current drought conditions.

RECOMMENDATION:

Receive presentation.

BACKGROUND/SUMMARY:

Staff has prepared a presentation to inform the council and the public of the status of the recent water conservation rates, public outreach efforts, and current drought conditions.

CONSISTENCY WITH CITY COUNCIL GOALS AND OBJECTIVES:

Not applicable.

CEQA STATUS:

The presentation is exempt from CEQA.

FINANCIAL IMPACT:

None.

ATTACHMENT(S):

1. Water Conservation Presentation
APPROVAL(S):

Derek Rayner, Public Works Director/City Engineer Approved - Oct 19 2022 Laura Snideman, City Manager Approved - Oct 25 2022
Marni Rittburg, City Clerk Approved - Oct 25 2022
Item #6.1.

1 Water Conservation Update
City Council Meeting
Tuesday, Nov. 1st, 2022
Mitchell Egert, Water Conservation Technician
Photo: DWR/saveourwater.com
Lake Oroville
ATTACHMENT 1Item #6.1.

U.S. Drought Monitor
January 25, 2022
2 March 29, 2022
Drought.gov
Oct. 11, 2022
Item #6.1.

3 Source: National Weather
Service Climate Prediction
Center
Item #6.1.

4 Kimball
Item #6.1.

5 -11%
-23%
July 2021 – Sept 2022
cumulative savings rate: -14%
Equivalent of 133.28 AF, 4.4 AF
more than Kimball Reservoir’s
total production in 2021.

Sept. savings: -23%
Or 19 AF of water saved for
our future use.

Item #6.1.

6 Cumulative savings
per county
(July 2021 – Aug. 2022)
Top water conserving CA
counties:
• Marin: -24.9%
• Sonoma: -18.6%
• Napa: -16.8%
Statewide cumulative
savings: -4.0%
Link to savings table
Item #6.1.

7 Item #6.1.

8 Communication &
Engagement
• Water bill messages
• Inserted flyers
• Newspaper ads
• Website
• Community Presentations
Item #6.1.

9 City facilities water audit
Example: Public Works Dept.

Efficiency upgrades:
• Toilet: 50% more efficient
• Faucet aerator: 58% more
efficient
Old 1.6 gpf New 0.8 gpf
Old 1.2 gpm New 0.5 gpm
Item #6.1.

10 Gold
is the New
Green
Community Center/City Hall, Calistoga State Capitol, Sacramento Item #6.1.

11 Rebate tracker
Completed:
• Cash for Grass: 17 lawns (15,000 square feet)
• HE Toilet: 10
• HE Washer: 1
Pending:
• Cash for Grass: 5
• HE Toilet: 3
• HE Washer: 1
Item #6.1.

Thank you, Calistogans!
Please keep conserving.

Tips and resources:
• Conservecalistoga.org
• Saveourwater.com
Calistoga Public Works
Water Conservation Program
12 Item #6.1.

1 Water Conservation Update
City Council Meeting
Tuesday, Nov. 1st, 2022
Mitchell Egert, Water Conservation Technician
Photo: DWR/saveourwater.com
Lake Oroville
ATTACHMENT 1Item #6.1.

U.S. Drought Monitor
Jan. 25, 2022
2 July 12, 2022
Drought.gov
Oct. 11, 2022
Item #6.1.

3 Source: National Weather Service Climate Prediction Center Item #6.1.

4 Kimball Kimball
24%
As of 10/31/22

62.97 Item #6.1.

5 -11% -23%
July 2021 – Sept 2022
cumulative savings rate: -14%
Equivalent of 133.28 AF, 4.4 AF
more than Kimball Reservoir’s
total production in 2021.

Sept. 2022 demand: -23%
Or 19 AF of water saved for
our future use.

Item #6.1.

6 Cumulative savings
per county
(July 2021 – Aug. 2022)
Top water conserving CA
counties:

1. Marin: -24.9%

2. Sonoma: -18.6%

3. Napa: -16.8%
Statewide cumulative
savings: -4.0%
Link to savings table
Item #6.1.

7 Item #6.1.

8 Communication &
Engagement
• Water bill messages
• Inserted flyers
• Newspaper ads
• Website
• Community Presentations
I. MHP’s
II. Jr./Sr. High school
III. Zun Zun Elementary
Item #6.1.

9 City facilities water audit
Example: Public Works Dept.

Efficiency upgrades:
• Toilet: 50% more efficient
• Faucet aerator: 58% more
efficient
Old 1.6 gallons per
flush (gpf)
New 0.8 gpf
Old 1.2 gpm New 0.5 gpm
Item #6.1.

10 Gold
is the New
Green
Community Center/City Hall, Calistoga State Capitol, Sacramento City Facilities savings
August 2022 =
• -57%
• 955,944 gallons
Or 3 AF saved!
Item #6.1.

11 Rebate tracker
Completed:
• Cash for Grass: 17 lawns (15,000+ square feet)
• HE Toilet: 10
• HE Washer: 1
Pending:
• Cash for Grass: 6
• HE Toilet: 5
• HE Washer: 1
Item #6.1.

Thank you, Calistogans!
Please keep conserving.

Tips and resources:
• Conservecalistoga.org
• Saveourwater.com
Calistoga Public Works
Water Conservation Program
12 Item #6.1.

CITY OF CALISTOGA
STAFF
REPORT
TO:

FROM:

DATE:

Honorable Mayor and City Council
Marni Rittburg, City Clerk
November 1, 2022
SUBJECT: Approving Minutes of the June 7, 2022, Reg_ular City Council Meeting Approved by:

Laura Snideman, City Manager
DESCRIPTION:

Consider approving the Minutes of the June 7, 2022, Regular City Council Meeting.

RECOMMENDATION:

Approve the minutes as submitted.

ATTACHMENTS:

June 7, 2022, Regular City Council Meeting Minutes
Item #7.1.

DRAFT MINUTES

CALISTOGA CITY COUNCIL

REGULAR MEETING
Tuesday, June 7, 2022 - 6:00 P.M.

Virtual Meeting

1. CALL TO ORDER - ROLL CALL - SALUTE TO THE FLAG
Mayor Canning called the regular session to order at 6:02 p.m.

Present: Councilmembers Lisa Gift, Gary Kraus, and Donald Williams; Vice Mayor lrais Lopez-Ortega, and Mayor Chris Canning

Absent: None

2. REPORT FROM CLOSED SESSION
Mayor Canning reported a Closed Session was held regarding the Fairgrounds property and there was no reportable action.

3. ORAL COMMUNICATION ON CONSENT ITEMS OR NON-AGENDA ITEMS Oral communication was received. For oral communication and public comment content, for any item on the agenda, view the video of the meeting available on the City's YouTube channel at https://www.youtube.com/user/CityofCalistoga or visit the City's Website at:
https ://www.ci.calistoga.ca. us/Home/Components/Calendar/Event/4 7 48/702?cu rm=6&c ury=2022

4. ADOPTION OF MEETING AGENDA
Motion by Councilmember Williams and seconded by Councilmember Kraus and passed by the following roll call vote to adopt the meeting agenda as presented.

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Kraus, Williams and Gift, Vice Mayor Lopez-Ortega and Mayor Canning
None
None
None

5. CITY MANAGER'S REPORT
City Manager Laura Snideman provided updates on public projects and events happening in Calistoga.

6. PROCLAMATIONS/PRESENTATIONS/AWARDS

6.1 Mayor Canning presented a Proclamation proclaiming June as LGBTQ+ Pride Month.

Item #7.1.

Calistoga City Council Minutes
June 7, 2022

7. CONSENT CALENDAR
Councilmember Kraus announced the he will be abstaining from voting on Items 7 .2 (Resolution accepting the Engineer's Report for the Silverado Place Subdivision Landscape Maintenance Assessment District, declaring the intention of the City Council to levy and collect assessments and setting the date for the public hearing.) due to a proximity issue and Item 7.3 (Resolution accepting the Engineer's Report for the Palisades Subdivision Landscape Maintenance Assessment District, declaring the intention of the City Council to levy and collect assessments and setting the date for the public hearing) due to a proximity issue.

Items 7.6 and 7.7 were pulled for separate discussion/action. Public comment was not received. Motion by Vice Mayor Lopez-Ortega, second by Councilmember Kraus with the abstention of Councilmember Kraus on Items 7.2 and 7.3 and passed by the following roll call vote, Council approved the remaining Consent Calendar items:

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Kraus, Williams and Gift, Vice Mayor LopezOrtega and Mayor Canning None
None
None
7 .1 Adoption of Senate Bill 1 (SB 1) Project List FY22/23.

Recommended Action: Consider Adopting the Resolution and Authorizing Staff to Submit the Same to the California Transportation Commission (CTC).

7.2 Consider adopting Resolution accepting the Engineer's Report for the Silverado Place Subdivision Landscape Maintenance Assessment District, declaring the intention of the City Council to levy and collect assessments and setting the date for the public hearing.

Recommended Action: Consider Adopting Resolution.

Councilmember Kraus abstained from voting on this item due to a proximity issue.

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Williams and Gift, Vice Mayor Lopez- Ortega and Mayor Canning
None
Councilmember Kraus
None

7.3 Consideration of a Resolution accepting the Engineer's Report for the Palisades Subdivision Landscape Maintenance Assessment District, declaring the intention of the City Council to levy and collect assessments and setting the date for the public hearing.

Recommended Action: Consider Adopting Resolution.

Councilmember Kraus abstained from voting on this item due to a proximity issue.

Item #7.1.

Calistoga City Council Minutes
June 7, 2022

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Williams and Gift, Vice Mayor Lopez-Ortega and Mayor Canning
None
Councilmember Kraus
None

7.4 Consideration of a Resolution authorizing the City Manager to renew a Consultant Services Agreement (CSA) for a term of ten (10) years with the North Bay Animal Services (NBAS) for Animal Control and Shelter services in an amount not to exceed $24,000 annually. The renewed Agreement to be effective July 1, 2022, through June 30, 2032.

Recommended Action: Adopt Resolution.

7.5 California State Assembly Bill (AB) 481 requires the governing body of a city to approve the police department's "Military Equipment" Policy on the guidelines and procedures relating to the approval, funding, possession, use, and reporting of military equipment defined in Government Code section 7070 even in communities such as Calistoga that have no Military Equipment. Approval of defined military equipment shall be by ordinance by the city council.

Recommended Action: Consider adopting Ordinance 756 approving the adoption of CPD's "Military Equipment" Lexipol Policy 707 and the addition of City of Calistoga Municipal Code section 2.14.070 requiring CPD's conformance with AB481. +:e Item Pulled from Consent by Councilmember Williams - Consider affirming Resolution 2021 071 findings related to the state of emergency due to COVID 19 authorizing the City Manager to continue implementing teleconference accessibility to conduct public meetings pursuant to Assembly Bill 361 .

Recommended Action: Staff recommends the City Council affirm Resolution 2021 071 findings in accordance with the provisions and findings of AB 361 to continue virtual/teleconference meetings of the City Council and City Boards, Commissions, and Committees after September 30, 2021 .
~ Item Pulled from Consent by Councilmember Williams - Consider adopting a Resolution establishing an Assistant City Manager position 1.-..ithin the City Manager Department and a salary schedule
Recommended Action: Adopt the Resolution

7.8 Consider displaying the Rainbow Flag for the month of June.

Recommended Action: Approve the request to display the non-governmental flag on the City's ceremonial flagpole.

MAYOR CANNING DIRECTED PULLED CONSENT CALENDAR ITEM 7.2 TO BE CONSIDERED AT THIS POINT IN THE MEETING:

7.6 Item Pulled from Consent by Councilmember Williams - Consider affirming Resolution 2021-071 findings related to the state of emergency due to COVID-19 Item #7.1.

Calistoga City Council Minutes
June 7, 2022

authorizing the City Manager to continue implementing teleconference accessibility to conduct public meetings pursuant to Assembly Bill 361.

Recommended Action: Staff recommends the City Council affirm Resolution 2021-071 findings in accordance with the provisions and findings of AB 361 to continue virtual/teleconference meetings of the City Council and City Boards, Commissions, and Committees after September 30, 2021.

Councilmember Williams stated that he would like the Council to start meeting in person again. The Council discussed and the majority of the Council expressed their desire to stay virtual for now with the high rates of COVID-19 infections and to wait until we can run Hybrid meetings.

Public comment was not received. Motion by Councilmember Williams, second by Councilmember Kraus and passed by the following roll call vote, Council affirmed Resolution 2021-071 findings in accordance with the provisions and findings of AB 361 to continue virtual/teleconference meetings of the City Council and City Boards, Commissions, and Committees after September 30, 2021.

AYES:

NOES:

ABSTAIN:

ABSENT:

Councilmembers Kraus, Williams and Gift, Vice Mayor LopezOrtega, and Mayor Canning None
None
None

7. 7 Item Pulled from Consent by Councilmember Williams - Consider adopting a Resolution establishing an Assistant City Manager position within the City Manager Department and a salary schedule
Recommended Action: Adopt the Resolution
Councilmember Williams asked City Manager Snideman questions regarding the addition of an Assistant City Manager position and confirmed the position would be at-will. Council and staff discussion ensued
Public comment was not received. Motion by Councilmember Kraus, second by Councilmember Gift and passed by the following roll call vote, Council adopted Resolution No. 2022-041 establishing an Assistant City Manager position within the City Manager Department and a salary schedule.

AYES:

NOES:

ABSTAIN:

ABSENT:

8. PUBLIC HEARING
Councilmembers Kraus, Williams and Gift, Vice Mayor LopezOrtega, and Mayor Canning None
None
None
Item #7.1.

Calistoga City Council Minutes
June 7, 2022

8.1 Consideration of the appeal of a use permit and design review renewal application for a three-guest unit expansion project and associated on-site improvements at the Aurora Park Cottages located at 1807 Foothill Boulevard (APN 011-290-046).

Recommended Action: Consider adopting Resolution denying Appeal AP 2022-2 thereby upholding Planning Commission approval of application UP 2022-1 and DR 2022-1, finding the project categorically exempt from CEQA, and approving Use Permit Application UP 2022-1 and Design Review Application DR 2022-1.

Mayor Canning recused himself due to a proximity issue and left the meeting at 6:35 p.m.

Planning and Building Director Jeff Mitchem presented the item and provided a PowerPoint presentation. City Attorney Michelle Kenyon announced that the appellant will have a total of 10 minutes for rebuttal and presentation.

Tom Adams, the appellant's attorney, spoke on behalf of his client.

Michael Glover, the appellant, spoke on behalf of his appeal.

Dave Patel, the applicant, spoke in support of the expansion.

Council and staff discussion ensued.

Vice Mayor Lopez-Ortega opened the Public Hearing at 6:53 p.m., Vice Mayor LopezOrtega Closed the Public Hearing at 7:14 p.m. Public comment was received.

Motion by Vice Mayor Lopez-Ortega second by Councilmember Gift and passed by the following roll call vote, Council adopted Resolution 2022-042 Approving Planning Commission Decision Approving Use Permit Application UP 2022-1 and Design Review Application DR 2022-1 Renewing UP 2018-12 and DR 2018-9 for Aurora Park Cottages Three Guest Unit Expansion at 1807 Foothill Boulevard (APN 011-290-046):

AYES:

NOES:

ABSTAIN:

ABSENT:

RECUSED:

Councilmembers Kraus and Gift, and Vice Mayor Lopez-Ortega Councilmember Williams
None
None
Mayor Canning
Mayor Canning rejoined the meeting at 7:27 p.m.

9. GENERAL GOVERNMENT

9.1 Consideration of a Resolution that authorizes the City Manager to execute a Consultant Services Agreement with Bartle Wells Associates (BWA) to provide professional services associated with a Water and Wastewater Rate Study in an amount not to exceed $57,500.

Recommended Action: Consider adopting Resolution.

Director of Public Works Derek Rayner presented the item and provided a PowerPoint presentation. Council and staff discussion ensued.

Item #7.1.

Calistoga City Council Minutes
June 7, 2022

Public comment was received. City Council did not approve the item. Council consensus was to return this item back to staff for more work and due diligence.

Staff to bring the item back to either one of the next two Council meetings.

9.2 Receive presentation of the proposed Fiscal Year 2022-23 Budget Recommended Action: Discuss and Provide Direction to Staff.

City Manager Laura Snideman presented the item and provided a PowerPoint presentation and provided an overview of General Fund revenues and expenditures.

Council and staff discussion ensued. Council consensus was they need more time to review the budget before adopting it and requested a Special Meeting to be held on Monday, June 13, 2022, at 4 p.m. Public comment was not received.

10.COUNCIL REQUESTS AND IDEAS FOR DISCUSSION
Council mentioned the following topics: Please mow your weeds, Meals on Wheels needs volunteers to deliver meals and thank you to those who participated in the Tip-A-Cop program.

To view the video of the meeting, please visit the City's YouTube channel at htt ps;//www.youtube.com/watch?v=2hOSLqLhy14 or visit the City's Website at:
https:/ /calistoga.civicweb. neUPortal/Meeting Information .aspx?Org=Cal&ld=261 G.) ADJOURNMENT
Mayor Canning adjourned the meeting in honor and memory of a longtime Calistoga resident Barbara Maxfield at 8:45 p.m.

Respectfully Submitted
Prepared by: Approved by:

Marni Rittburg, City Clerk Chris Canning, Mayor
Approved:

Item #7.1.

City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Marc Fox, Acting Administrative Services Director Meeting: City Council - Nov 01 2022
Subject: Resolution Approving a Technical Amendment to the Authorized Personnel and Staffing Listing
DESCRIPTION:

Consider adopting a Resolution that amends the Personnel and Staffing Listing by making a technical correction by adding 1.0 FTE Fire Captain and deleting 1.0 FTE Fire Fighter.

RECOMMENDATION:

Adopt a Resolution approving a technical amendment to the Personnel and Staffing Listing.

BACKGROUND/SUMMARY:

The FY2021/22 budget for the Fire Department had allocated regular positions of 1 Fire Chief, 1 Fire Captain, 4 Fire Engineers and 4 Fire Fighters, for a total of 10.0 FTE regular positions. In April 2022, the City Council provided direction to staff on making changes to the City’s allocated positions across several departments. Part of the City Council’s direction was to amend the Fire Department’s allocated regular positions by adding 2 Fire Captain positions and reducing 2 other Fire Department positions (and maintaining the total allocated regular positions at 10.0 FTEs).

The adopted FY2022/23 budget shows the Fire Department's staffing in two places: the Personnel and Staffing Listing and the department's organizational chart. The Personnel and Staffing Listing includes 1 Fire Chief, 2 Fire Captains, 3 Fire Engineers and 4 Fire Fighters, for a total of 10.0 FTE regular positions. The organizational chart lists 1 Fire Chief, 3 Fire Captains, 3 Fire Engineers and 3 Fire Fighters, also for a total of 10.0 FTE regular positions. (Temporary Fire Fighters are also shown on the organizational chart.)
The discrepancy within the FY2022/23 budget is that the Personnel and Salary Listing includes 2 Fire Captains and 4 Fire Fighters while the organizational chart shows 3 Fire Captains and 3 Fire Fighters.

The organizational chart is correct and the proposed technical correction amends the Personnel and Staffing Listing to show the correct allocation by adding 1 Fire Captain and deleting 1 Fire Fighter position.

In implementing the Fire Department’s organizational change between last fiscal year and this fiscal year, staff believes there are well-qualified individuals within the Fire Department who can promote to Fire Captain, which will result in vacancies of either Fire Engineer or Fire Fighter. A subsequent promotional recruitment will occur to backfill the classification previously held by the newly-promoted Fire Captains. No current employee will be negatively impacted because of the department’s organizational change.

Item #7.2.

CEQA STATUS:

Not applicable.

FINANCIAL IMPACT:

No additional funding is anticipated as the department has one staff vacancy. As part of the mid-year budget review, City staff will review the funding of budgeted positions to verify that the budget accurately reflects the authorized staffing levels.

ATTACHMENT(S):

Resolution Amending Personnel and Staffing Listing Fire APPROVAL(S):

Laura Snideman, City Manager Approved - Oct 25 2022
Marni Rittburg, City Clerk Approved - Oct 25 2022
Item #7.2.

RESOLUTION NO. 2022-___

RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF CALISTOGA, COUNTY OF

NAPA, STATE OF CALIFORNIA APPROVING AN AMENDMENT TO THE

PERSONNEL AND SALARY LISTING
WHEREAS, the City of Calistoga adopted the Fiscal Year 2022/23 budget which includes the authorized regular positions for the fiscal year; and WHEREAS, the adopted budget also includes organizational charts of the City’s departments; and
WHEREAS, there is a discrepancy between the authorized positions and the organizational chart of the Fire Department, and the organizational chart correctly includes the authorized positions; and
WHEREAS, the City finds it desirable to make a technical correction to the Personnel and Salary Listing to list the true authorized positions for the City’s fire department.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Calistoga hereby amends the Personnel and Staffing Listing as follows:

Department Classification
Effective
Date
Allocation
Current Proposed Change
Fire Captain 10/18/22 2.0 3.0 1.0
Fire Fire Fighter 10/18/22 4.0 3.0 (1.0)
Net Change 0.0
PASSED, APPROVED AND ADOPTED this 18th day of October 2022. I, MARNI RITTBURG, CITY CLERK OF THE CITY OF CALISTOGA, HEREBY CERTIFY the foregoing resolution was introduced and passed at a regular meeting of the Calistoga City Council by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
______________________________ ______________________________ Marni Rittburg, CMC, City Clerk Chris Canning, Mayor
Item #7.2.

City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Derek Rayner, Public Works Director/City Engineer Meeting: City Council - Nov 01 2022
Subject: Notice of Completion for the Berry Street Pavement Rehabilitation Project DESCRIPTION:

Consider adopting a Resolution Accepting a Notice of Completion for the Berry Street Pavement Rehabilitation Project.

RECOMMENDATION:

Consider adopting Resolution.

BACKGROUND/SUMMARY:

On June 21, 2022, the City Council approved a construction budget in an amount not to exceed $605,000 and awarded a contract in the amount of $502,490 to Ghilotti Bros. Inc., for construction of the Berry Street Pavement Rehabilitation Project. The Notice to Proceed was issued on July 1, 2022.

The construction of the Berry Street Pavement Rehabilitation Project was completed on October 11, 2022, in conformance with approved plans and specifications.

Staff recommends that the project constructed by Ghilotti Bros. Inc. be accepted as complete, and the Council adopt the Resolution.

CONSISTENCY WITH CITY COUNCIL GOALS AND OBJECTIVES:

On June 21, 2022, the City Council approved a construction budget in an amount not to exceed $605,000 and awarded a contract in the amount of $502,490 to Ghilotti Bros. Inc., for construction of the Berry Street Pavement Rehabilitation Project. The Notice to Proceed was issued on July 1, 2022.

The construction of the Berry Street Pavement Rehabilitation Project was completed on October 11, 2022, in conformance with approved plans and specifications.

Staff recommends that the project constructed by Ghilotti Bros. Inc. be accepted as complete, and the Council adopt the Resolution.

CEQA STATUS:

The recommended action is not a project under the definitions contained in the Guidelines of the California Environmental Quality Act (CEQA) and is therefore exempt from CEQA. The project was also exempt from CEQA.

FINANCIAL IMPACT:

Item #7.3.

The total construction cost was $585,710 which was within the approved construction budget of $605,000. Construction expenses included construction contract of $502,490, ten change orders totaling $63,920, and construction management/inspection costs totaling $19,300.

ATTACHMENT(S):

1. Draft Resolution

2. Notice of Completion
APPROVAL(S):

Laura Snideman, City Manager Approved - Oct 25 2022
Marni Rittburg, City Clerk Approved - Oct 25 2022
Item #7.3.

ATTACHMENT 1
RESOLUTION NO. 2022-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALISTOGA, COUNTY OF

NAPA, STATE OF CALIFORNIA ACCEPTING AS COMPLETE THE BERRY STREET PAVEMENT REHAILITATION PROJECT, CONSTRUCTED BY GHILOTTI BROS.

INC., AND AUTHORIZING THE PUBLIC WORKS DIRECTOR TO FILE A NOTICE OF

COMPLETION
WHEREAS, the City of Calistoga entered into a contract on June 21, 2022, with Ghilotti Bros. Inc. for the Berry Street Pavement Rehabilitation Project.; and WHEREAS, Ghilotti Bros. Inc. has completed the work required by the contract on October 11, 2022, to the satisfaction of the City Engineer; and WHEREAS, the City Council now desires to accept the Project as complete.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CALISTOGA DOES HEREBY find the following:

1. Accepts as complete the work for the Berry Street Pavement Rehabilitation Project constructed by Ghilotti Bros. Inc.

2. Authorizes the Public Works Director to file a Notice of Completion with the Napa County Recorder and process final payment in accordance with the Contract documents.

PASSED, APPROVED AND ADOPTED this 1
st day of November, 2022. I, MARNI
RITTBURG, CITY CLERK OF THE CITY OF CALISTOGA, HEREBY CERTIFY the foregoing resolution was introduced and passed at a regular meeting of the Calistoga City Council by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
____________________________ ____________________________ Marni Rittburg, CMC, City Clerk Chris Canning, Mayor
Item #7.3.

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

CITY OF CALISTOGA
1232 WASHINGTON STREET
CALISTOGA, CA 94515
Attn: Public Works Department
Exempt From Recording Fees
Section 27383 Gov't. Code

NOTICE OF COMPLETION
Notice is hereby given that:

1. The undersigned is the owner of the interest or estate stated below in the property described below.

2. The name of the undersigned is City of Calistoga.

3. The address of the undersigned is:
1232 Washington Street
Calistoga, CA 94515

4. The nature of interest or estate of the undersigned is fee ownership, as well as ownership of the certain improvements located thereon.

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: None

6. The names of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of work of improvement herein referred to are: None

7. A work of improvement on the property hereinafter described was completed on October 11, 2022.

8. The name of the original contractor, if any, for the work of improvement was Ghilotti Bros. Inc.

9. The kind of work done or material furnished was Berry Street Pavement Rehabilitation Project.

10. The property on which the work of improvement was completed is in the City of Calistoga, County of Napa, State of California, and is described as follows:

Berry Street between Washington Street and Foothill Blvd.

Calistoga, CA 94515
City of Calistoga, Owner
Dated: Signed:

Derek Rayner, Public Works Director
ATTACHMENT 2 Item #7.3.

VERIFICATION
I, the undersigned, say:

I am the person who signed the foregoing notice. I have read the above notice and know its contents, and the facts stated therein are true of my own knowledge.

I declare under the penalty of perjury that the above is true and correct Executed at Calistoga, California, this 1st day of November 2022.

City of Calistoga
Derek Rayner, Public Works Director
Item #7.3.

City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Jeff Mitchem, Planning & Building Director
Meeting: City Council - Nov 01 2022
Subject: Senate Bill 2 Permanent Local Housing Allocation Grant Application DESCRIPTION:

Consider adopting Resolution authorizing and Delegating the City of Napa to submit an application on its behalf and Administer the Permanent Local Housing Allocation (PLHA) program; and authorize the City Manager to sign a binding delegation agreement with the City of Napa for the period encompassing five (5) years of formula allocations (2019-2023), made available in Notice of Funding Availability (NOFA) issued by the State beginning in February 2020 and extending through 2024, including all years stipulated in the State standard agreement.

RECOMMENDATION:

Consider adopting the Resolution.

BACKGROUND/SUMMARY:

In September 2017, the California Legislature approved Senate Bill 2 (SB 2), known as the Building Homes and Jobs Act (Act), which established a $75 recording fee on real estate documents to increase the supply of affordable housing. The Act establishes the Permanent Local Housing Allocation (PLHA) program administered by the California Department of Housing and Community Development (HCD).

The PLHA provides a permanent source of funding to cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing units. Pursuant to PLHA funding requirements, jurisdictions seeking funds must submit a PLHA plan outlining how the jurisdiction intends to use the funds on eligible activities over the course of five years, how the local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of AMI, and how the plan relates to the local jurisdictions Housing Element.

The intent of the bill is to provide a permanent, ongoing source of funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. Towns and cities are entitled to a return to source allocation in increments of five years. The current period encompasses funds collected between 2019 and 2023. It is anticipated that the City will be eligible for an estimated $371,000 in funding for the five (5) year period. The City must submit a plan for funds for this year to avoid losing current and future funds through 2023.

The City of Calistoga contracts with the City of Napa to provide housing authority and housing program-related services. As such, City of Napa staff has been working with City staff to help us develop a plan that will enable the City to submit a plan and program in a timely manner to avoid potential loss of funds. City of Napa staff are also working with other cities in the County to provide Item #7.4.

technical assistance to administer their PLHA Program funds. As part of the application, the City must prepare, solicit public input, and submit a five-year plan on how the City intends to use its allocation of (PLHA) Program funds. The City will be delegating authority to the City of Napa to submit the plan on behalf of the City of Calistoga and approving the delegation agreement authorizes the City of Napa to adopt and submit the plan on behalf of the City of Calistoga. There are a variety of eligible activities the City may consider utilizing the funds for such activities as:
• The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary operating subsidies. • The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120-percent of area median income (AMI), or 150- percent of AMI in high-cost areas..

Matching portions of funds placed into Local or Regional Housing Trust Funds.

Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to California Health and Safety Code Section 34176(d). • Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing.
• Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
• Accessibility modifications in lower-income owner-occupied housing.

Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.

Homeownership opportunities, including, but not limited to, down payment assistance. • Up to 5% of the grant can be used for administrative costs.

CONSISTENCY WITH CITY COUNCIL GOALS AND OBJECTIVES:

City Council Goal 2: Address the community's existing and future housing needs.

CEQA STATUS:

This item is exempt.

FINANCIAL IMPACT:

The costs associated with funding and administering the program are entirely covered by program income and will be administered by the City of Napa.

ATTACHMENT(S):

ATTCH 1 CC Resolution PLHA Program
ATTCH 2 PLHA Agreement-Calistoga Delegation
Exhibit A 2022-PLHA-Formula-Application-Calistoga
APPROVAL(S):

Laura Snideman, City Manager Approved - Oct 25 2022
Item #7.4.

Marni Rittburg, City Clerk Approved - Oct 25 2022
Item #7.4.

ATTACHMENT 1
RESOLUTION NO. 2022-XXX
Authorizing Agreement No. XXX

AUTHORIZING THE APPLICATION AND ADOPTING THE PERMANENT LOCAL HOUSING

ALLOCATION (PHLA) PROGRAM FOR THE CITY OF CALISTOGA AND DELEGATING THE

CITY OF NAPA TO SUBMIT AN APPLICATION ON ITS BEHALF AND ADMINISTER THE PLHA GRANT AWARD; AND TO AUTHORIZE THE CITY MANAGER TO SIGN A BINDING

DELEGATION AGREEMENT WITH THE CITY OF NAPA FOR THE PERIOD ENCOMPASSING FIVE (5) YEARS OF FORMULA ALLOCATIONS (2019-2023), MADE AVAILABLE IN NOFAS ISSUED BY THE STATE BEGINNING IN FEBRUARY 2020 AND EXTENDING THROUGH 2024, INCLUDING ALL YEARS STIPULATED IN THE STATE STANDARD AGREEMENT.

WHEREAS, in September 2017, the California Legislature approved Senate Bill 2 (SB 2), known as the Building Homes and Jobs Act (Act), which established a $75 recording fee on real estate documents to increase the supply of affordable housing.

The Act establishes the Permanent Local Housing Allocation (PLHA) program administered by the California Department of Housing and Community Development (HCD); and
WHEREAS, it is anticipated that the City will be eligible for an estimated $371,000 in funding for the five (5) year period covering the years between 2019 and 2023; and WHEREAS, the City must submit a plan for funds for this year by the end of October 2022 to avoid losing current and future funds through 2023; and WHEREAS, the City contracts with the City of Napa to provide housing authority and housing program related services. As such, City of Napa staff have been working with City staff to help us develop a plan that will enable the City to submit a plan and program in a timely manner to avoid potential loss of funds; and

WHEREAS, the draft PLHA Plan establishes that the City intends to spend its funds on Accessory Dwelling Unit Development. Ninety five percent (95%) of Calistoga’s PLHA funds shall be used to provide forgivable loans and technical assistance grants to private property owners for the creation of Accessory Dwelling Units on private properties within the City of Calistoga and 5% for Administrative Costs; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Calistoga hereby resolves as follows:

1. Authorizes the City of Napa to submit the Permanent Local Housing Allocation (PHLA) Program for the City of Calistoga and delegating the City of Napa to submit an application on its behalf and administer the PLHA Grant Award; and

2. Authorizes the City Manager to sign a binding delegation agreement with the City of Napa for the period encompassing five (5) years of formula allocations (2019-2023), made available in NOFAs issued by the State beginning in Item #7.4.

ATTACHMENT 1
February 2020 and extending through 2024, including all years stipulated in the State standard agreement; and

3. The Resolution is hereby adopted and becomes effective and in full force immediately upon adoption.

PASSED, APPROVED AND ADOPTED this 1st day of November 2022. I, MARNI RITTBURG, CITY CLERK OF THE CITY OF CALISTOGA, HEREBY CERTIFY the foregoing resolution was introduced and passed at a regular meeting of the Calistoga City Council by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
______________________________ ______________________________ Marni Rittburg, CMC, City Clerk Chris Canning, Mayor
Item #7.4.

DELEGATION AGREEMENT
Between the City of Calistoga and the City of Napa
City of Calistoga Contract Number ____
City of Napa Contract Number ____
THIS AGREEMENT is made and entered into this ___ day of November. 2022 (“Effective Date”), by and between the City of Napa, a California charter city, hereinafter called "Napa"; and the City of Calistoga, a California municipal corporation (hereinafter called “Calistoga”) jointly referred to as "Parties". Any capitalized terms used by not defined herein shall have the meaning ascribed to such terms in the PLHA Program Guidelines (defined below).

RECITALS
A. The State of California Department of Housing and Community Development ("State") is authorized to provide up to $335 million to Cities and Counties for assistance under the SB 2 Permanent Local Housing Allocation Program ("PLHA Program") Formula Component from the Building Homes and Jobs Trust Fund (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB2)) B. The State issued Permanent Local Housing Allocation Final Guidelines ("PLHA Program Guidelines") in October 2019.

C. The State issued a Notice of Funding Availability ("NOFA") dated August 17, 2022, under the PLHA Program.

D. Napa has previously submitted an application for and administered PLHA Program Funds, and Calistoga is eligible to submit an application for and administer PLHA Program Funds.

E. Section 300(c) of the PLHA Program Guidelines allows a local government to delegate another local government to submit an application and administer on its behalf its formula allocation of PLHA Program funds, provided that the local governments enter into a legally binding agreement and the funds are expended for eligible activities consistent with Program requirements.

F. Calistoga desires to delegate Napa to administer the receipt of PLHA Program funds on behalf of Calistoga and act as the Applicant to the State for the funding.

G. Calistoga intends to use its PLHA Program funding for the development of junior and other accessory dwelling units to be administered by Napa.

NOW THEREFORE, in consideration of the mutual promises, recitals and other provisions hereof, the Parties agree as follows:

Item #7.4.

SECTION I. GENERAL
A. Responsible Officers. Calistoga hereby authorizes Napa to submit an application to the State for PHLA Program funds, to act as the Applicant on Calistoga’s behalf, including administration and Activity delivery for the PHLA Program Funds allocated to Calistoga in accordance with the PLHA Program Guidelines and this Agreement. Calistoga hereby authorizes the City Manager of Calistoga to act as the responsible officer for Calistoga under the Program and this Agreement. Napa hereby authorizes the City Manager or Deputy City Manager to act as the responsible officer for Napa under the Program and this Agreement.

B. Full Cooperation. Parties agree to fully cooperate and to assist each other in undertaking eligible programs or projects as defined in Section 301 of PLHA Program Guidelines, including but not limited to the development of affordable rental housing in the City of Calistoga.

C. Threshold Requirements for Participation. Parties understand and agree to comply with State's threshold requirements for participation in the PHLA Program as follows:
a. Housing Element compliance: Napa as Applicant and the Calistoga as delegated City must have a Housing Element that has been adopted by the local government's governing body and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to Government Code Section 65585. b. Housing Element Annual Progress Report (APR) compliance: Napa as Applicant and Calistoga as the delegated City must submit to the State the APR required by Government Code Section 65400 for the current or prior year.

D. Term of Agreement. The term of this Agreement shall commence on the Effective Date and remain in effect for the term of the Standard Agreement executed by Napa on behalf of Calistoga for the PHLA Program formula allocations (2019-2023), made available in NOFAs issued by the State beginning in February 2020 and extending through 2024, including any extensions of such Standard Agreement.

E. Scope of Agreement. This Agreement covers the PLHA Program funding administered by the State that is awarded and accepted by Calistoga during the term of this Agreement.

SECTION II. PREPARATION AND SUBMITTAL OF PLHA FUNDING APPLICATION AND PLAN
A. PLHA Application and Plan. Upon Calistoga’s submittal to Napa of the information required to prepare a PHLA Program application, Napa shall prepare an application on behalf of the City requesting the PHLA funds, in accordance with Section 302(c) of the PLHA Program Guidelines and Calistoga’s PLHA Plan attached hereto and incorporated herein as Exhibit A (“PLHA Plan”), which details how the allocated PHLA funds will be used for eligible activities, how investments will be prioritized to increase the supply of housing for households with incomes at or below 60% of Area Median Income, and how the Plan is consistent with the programs set forth in Calistoga’s Housing Element.

Calistoga will provide evidence to Napa that the Plan was authorized by resolution by the City Council and that the public had an adequate opportunity to review and comment on its content.

Item #7.4.

SECTION Ill. PROGRAM ADMINISTRATION
A. Responsibilities of Parties. The Parties agree, in the delegation of Napa as the administering local government for the PLHA Program on behalf of Calistoga, that Napa shall be responsible for execution of the Standard Agreements with State and the administration of the PLHA Program in the City of Calistoga in accordance with the terms of this Agreement. Napa agrees to perform necessary administrative tasks such as, but not limited to, preparation of documents for environmental clearance under CEQA or NEPA, implementation of loan underwriting policies and terms, execution and management of any loans made using PLHA funds, monitoring of programs and projects as needed to fulfill PLHA requirements, and submittal of annual reports to State on PLHAfunded activities. Calistoga agrees to fully cooperate with Napa in all things required and appropriate to comply with Napa’s obligations under this Agreement and the provisions of the Standard Agreement with State. During the first year of the five-year Plan term, the Parties agree to meet on a quarterly basis to discuss the plans for the use of PLHA funds and progress being made. Beginning in the second year of the five- year Plan term, through the end of the fifth year, Parties will agree in writing to a meeting schedule which will provide adequate opportunity for communication and decision-making.

Notwithstanding anything to the contrary set forth herein, any decisions regarding the appropriate level of environmental review required under CEQA or NEPA, loan underwriting policies and terms, applicant eligibility, scope of work, amount of loans, change orders, and other similar decisions shall be made by Calistoga based upon a recommendation by Napa.

B. Separate Accounting of Funding. Napa agrees to set-up a process whereby Calistoga’s PLHA funds are accounted for and reported separately from other PLHA funds to ensure that funds are spent within Calistoga’s jurisdiction.

C. Program Administration Funding. In consideration of Napa’s agreement to be the administering local government for Calistoga’s PLHA allocation and its assumption of the responsibilities required hereunder, the Parties agree that the allowable Program Administration for the funding, which is equal to a maximum of 5% of each year's allocation for each local government jurisdiction, shall be retained exclusively by Napa for these administrative purposes.

D. Activity Delivery Funding. In addition to Program administration funding under subsection C, Calistoga shall pay Napa for Napa’s time and expenses to provide direct activity delivery for Calistoga’s PLHA activities. The rate for Napa’s time shall be the then-current fully burdened overhead rate (the “Fully Burdened Overhead Rate”) for the employee performing the Services, which is the hourly billable rate that captures all Napa costs associated with an employee, over and above gross compensation or payroll costs, including payroll taxes, worker's compensation, health insurance, paid time off, pension contributions, and other benefits.

Napa will submit a quarterly itemized report to Calistoga for the Services provided during the preceding quarter. The invoice will identify the Services performed, the hours spent performing the Services, the applicable Fully Burdened Overhead Rate(s), and any authorized expenses. Napa will send the invoice to the State for payment on behalf of Calistoga.

E. Maintenance of Records. Napa shall maintain records of activities for any projects undertaken pursuant to the PLHA Program, and said records shall be available for inspection by staff and/or auditors representing Calistoga on reasonable notice during normal business hours.

Item #7.4.

SECTION IV. USE OF CALISTOGA’S PLHA FUNDS
A. Junior and Other Accessory Dwelling Unit Development. Ninety five percent (95%) of Calistoga’s PLHA funds shall be used to provide forgivable loans and technical assistance grants to private property owners for the creation of Junior and Other Accessory Dwelling Units on private properties within the City of Calistoga. The main unit or the Accessory Dwelling Unit must be a deed restricted rental for a period of 10 years to households not exceeding 80% of Area Median Income. Napa shall prepare Accessory Dwelling Unit program guidelines for approval by the City Manager (“ADU Guidelines”).

B. Project Assistance Criteria.
a. Targeting to the Lowest Income Households: PLHA funds can be used for households at a variety of income levels but are especially intended to be used to meet the housing needs of households at or below 60% of Area Median Income.

The expenditure of funds targeted for affordability for these households will be prioritized for funding.

C. Funding Assistance in the Form of Loans. The Parties agree that any funding provided under the PLHA program that is not a grant shall be provided to the property owner as a forgivable or no to low interest loan. The loan shall be evidenced by a Promissory Note and secured by a Deed of Trust in favor of Calistoga and recorded against the property. A Regulatory Agreement by and between Calistoga and the property owner shall be recorded against the property and restrict occupancy and rents for the terms identified in the City Manager approved ADU Program Guidelines and OOR Program Guidelines.

D. Use of Program Income. The Parties agree that program income generated as a result of Calistoga’s receipt of PLHA funds will be retained by Napa and utilized to fund future PLHA-eligible activities in the City of Calistoga. Program income will include payments from residual receipts, and accrued interest. Any monitoring fees will go to the City of Napa.

SECTION V. ADDITIONAL AGREEMENTS
A. Privileges and Immunities. In accordance with California Government Code section 6513, all of the privileges and immunities from liability, all exemptions from laws, ordinances and rules, and all pension, relief, disability, workmen’s compensation, and other benefits which apply to the activity of the trustees, officers, employees or agents of the Parties when performing their functions within the territorial limits of their respective public agencies, shall apply to them to the same degree and extent while engaged in the performance of any of their functions and duties associated with performance of this Agreement.

B. Indemnification. To the full extent permitted by law, Napa will indemnify, hold harmless, release, and defend the Calistoga (including its officers, elected or appointed officials, employees, volunteers, and agents) from and against any and all liability or claims (including actions, demands, damages, injuries, settlements, losses, or costs [including legal costs and attorney's fees]) (collectively, “Liability”) of any nature, arising out of, Item #7.4.

pertaining to, or relating to Napa’s negligence, recklessness, or willful misconduct in the performance of its obligations under this Agreement. Consistent with Civil Code Section 2782, Napa will not be obligated to indemnify Calistoga for the proportionate share of the Liability caused by the Calistoga’s active negligence, sole negligence, or willful misconduct. To the full extent permitted by law, Calistoga will indemnify, hold harmless, release, and defend the Napa (including its officers, elected or appointed officials, employees, volunteers, and agents) from and against any and all Liability of any nature, arising out of, pertaining to, or relating to Calistoga’s negligence, recklessness, or willful misconduct in the performance of its obligations under this Agreement and the Standard Agreement. Consistent with Civil Code Section 2782, Calistoga will not be obligated to indemnify Napa for the proportionate share of the Liability caused by the Napa’s active negligence, sole negligence, or willful misconduct.

C. Severability. If any term of this Agreement (including any phrase, provision, covenant, or condition) is held by a court of competent jurisdiction to be invalid or unenforceable, this Agreement will be construed as not containing that term, and the remainder of this Agreement will remain in full force and effect; provided, however, this section will not be applied to the extent that it would result in a frustration of the parties’ intent under this Agreement.

D. Governing Law, Jurisdiction, and Venue. The interpretation, validity, and enforcement of this Agreement will be governed and interpreted in accordance with the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to this Agreement will be filed and heard in a court of competent jurisdiction in the County of Napa.

E. Attorney’s Fees. If any litigation is commenced to enforce or interpret this Agreement, the prevailing party is entitled to reasonable attorney’s fees, costs, and expenses incurred.

F. Entire Agreement. This Agreement, including all documents incorporated herein by reference, comprises the entire integrated understanding between the parties concerning the subject matter hereof. This Agreement supersedes all prior negotiations, agreements, and understandings regarding this matter, whether written or oral. The documents incorporated by reference into this Agreement are complementary; what is called for in one is binding as if called for in all. If any provision in any document attached or incorporated into this Agreement conflicts or is inconsistent with a provision in the body of this Agreement, the provisions in the body of this Agreement will control over any such conflicting or inconsistent provisions.

G. Interpretation. Each party to this Agreement has had an opportunity to review the Agreement, and to consult with its respective legal counsel regarding the meaning of the Agreement. Accordingly, Civil Code Section 1654 will not apply to interpret any uncertainty in the meaning of the Agreement.

H. Modifications. This Agreement may not be amended or modified orally. No amendment or modification of this Agreement is binding unless it is in a writing signed by both parties.

Item #7.4.

I. Counterparts. This Agreement may be executed in counterparts, each one of which is deemed an original, but all of which together constitute a single instrument.

J. Signatures; Electronic Signatures. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of Napa and Calistoga. The parties agree that this Agreement may be executed and transmitted electronically and that electronic signatures shall have the same force and effect as original signatures in accordance with the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001 et seq.; the California Uniform Electronic Transactions Act, Civil Code Section 1633.1 et seq. and California Government Code Section 16.5.

NOW THEREFORE, the Parties hereto have caused this Agreement to be executed and attested by their proper officer thereunder duly authorized and their official seals to be hereunto affixed, all as of the day first above written.

CITY: CITY:

CITY OF NAPA, a California charter city CITY OF CALISTOGA, By: By:

Steve Potter, City Manager Laura Snideman, City Manger
Date:
(“Effective Date”)
COUNTERSIGNED:

Joy Riesenberg, City Auditor
APPROVED AS TO FORM:

Michael W. Barrett, City Attorney
Item #7.4.

Exhibit A
City of Calistoga Permanent Local Housing Allocation Plan

Item #7.4.

§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.

Goal H-2 of the Housing Element states "promote housing that meets the needs of extremely low-, low- and moderate income households, particularly those that work in Calistoga. This is followed by a series of policies that provide for incentives to develop deed restricted units. Goal H-3 calls for maintaining the City's Housing stock and protecting the affordability of units. Both programs create incentives and programs to develop and/or preserve the affordability of housing units in Calistoga. §302(c)(4) Plan Rev. 2/16/22
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.

The City of Calistoga has selected the City of Napa as it's delegated entity. The City of Napa will ensure that Calistoga's share of funds will be used for two purposes in the Town limits. (1) 60% of funds will be used to fund the development of a Junior Accessory Dwelling Unit/Accessory Dwelling Unit Loan Program. The program will model the City of Napa's program and provide forgivable loans and technical assistance to homeowners to create Accessory Dwelling Units or Junior Accessory Dwelling Units. Each participating homeowner is required to either rent the ADU or the primary unit as an affordable rental unit for households at or below 80% of median income which is enforced by a recorded regulatory agreement for a period of 10 years. (2) The City of Calistoga will use 35% of fund for owner-occupied and private rental rehabilitation. The projects eligible for these funds must be related to rehabilitation, such as improving the structural integrity of a dwelling unit in order to meet building codes, correcting health and safety issues, and correcting code violations. If the homeowner can prove adequate financial need or put in a deed restriction for a rental property, they will be granted a loan to assist in the funding of the project. To qualify for the project, the applicant must be an income eligible property owner. The owner’s total household income or the renters household income must be at or below 80% of the area median income. PLHA funds will be utilized to expand the program and assist additional property owners with zero interest loans up to $60,000. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).

Both programs require properties to be owned by or rented to households at or below 80% of Area Median Income. It is anticipated that some of these households will be at or below 60% of median income.

Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.

Ownership
:

Rehabilitat
ion
Ownership
:

Rehabilitat
ion
Complete the table below for each proposed Affordable Rental and Ownership Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting).

Type of Affordable Housing
Activity ADU ADU ADU ADU ADU
Rental:

Rehabilitat
ion
Rental:

Rehabilitat
ion
Ownership
:

Rehabilitat
ion
80% 80% 80%
0 §302(c)(4)(E)(ii) Area Median
Income Level Served 80% 80% 80% 80% 80% TOTAL
§302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level
Note: complete for years 2019,
2020, 2021 only
§302(c)(4)(E)(ii) Projected
Number of Households Served 1 2 2 3 3
35% 35% 35% 35% 35%
3 3 22
§302(c)(4)(E)(i) Percentage of
Funds Allocated for Each
Affordable Housing Activity
60% 60% 60% 60% 60%
1 2 2
80% 80%
§302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for each proposed Affordable Rental and Ownership Housing Activity. Enter Percentage of Funds Allocated for Affordable Owner-occupied Workforce Housing 95%
60% of funds will be used to fund the development of a Junior Accessory Dwelling Unit/Accessory Dwelling Unit Loan Program. The program will model the City of Napa's program and provide forgivable loans and technical assistance to homeowners to create Accessory Dwelling Units or Junior Accessory Dwelling Units. Each participating homeowner is required to either rent the ADU or the primary unit as an affordable rental unit for households at or below 80% of median income which is enforced by a recorded regulatory agreement for a period of 10 years. (2) 35% of funds will be used for owner or privately owned rental rehab. The projects eligible for these funds must be related to rehabilitation, such as improving the structural integrity of a dwelling unit in order to meet building codes, correcting health and safety issues, and correcting code violations. To qualify for the project, the applicant must be an income eligible homeowner. The owner’s total household income must be at or below 80% of the area median income. Aternatively, a rental unit could be deed restricted for the similar amount. PLHA funds will be utilized to expand the program and assist additional homeowners with zero interest loans t $60 000
Funding Allocation Year 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 PLHA Page 1 302(c)(4) Plan
Item #7.4.

These programs will be modeled after programs currently in existence. Therefore it should take less than 6 months to start the programs.

N/A unless
rental,
then 20
years
N/A unless
rental,
then 20
years
N/A unless
rental,
then 20
years
N/A unless
rental,
then 20
years
N/A unless
rental,
then 20
years
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity (55 years required for
rental housing projects)
10 10 10 10 10
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of each Affordable Rental and Ownership Housing project.

PLHA Page 2 302(c)(4) Plan
Item #7.4.

City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Brad Kilger, Consultant
Meeting: City Council - Nov 01 2022
Subject: Consideration of Approval of Goals & Policies and the Resolutions Necessary to Form a Communities Facilities District (“CFD”) for the Purpose of Acquisition and Maintenance of the Napa Valley Fairgrounds DESCRIPTION:

Initiation of the Communities Facilities District (“CFD”) formation process for the Purpose of Acquisition and Maintenance of the Napa Valley Fairgrounds including calling for a future public hearing.

RECOMMENDATION:

Consider approving (1) a resolution establishing Goals & Policies, (2) a resolution of intention to form a CFD and levy a special tax, and (3) a resolution of intention to incur indebtedness to finance the acquisition and construction of certain public facilities.

BACKGROUND/SUMMARY:

On October 4, 2022, the City Council approved a resolution approving and authorizing a Purchase and Sale Agreement (the “Agreement”) and escrow instructions and a Declaration of Covenants and Restrictions with the County of Napa for the purchase of the Property. The Napa County Board of Supervisors subsequently approved the Agreement.

At the City Council’s October 18, 2022 meeting, City Council directed the City Manager to initiate formation of a CFD to fund the acquisition, capital improvement and ongoing maintenance of the Napa County Fairgrounds (the “Property”). The City Manager worked with its consultants to develop the special tax formulas and CFD formation documentation that will provide for a process which includes a public hearing, calling for an election and the issuance of bonds to fund the acquisition and improvement of the Property.

Overview of the CFD Process
During the negotiations the City staffed evaluated alternative methods of funding the purchase of the Fairgrounds. However, an additional consideration was the significant capital improvement and deferred maintenance costs the City would inherit if the purchase was consummated. During the previous due diligence period, the City had a study cost analysis prepared to determine what the costs would be. With the new discussions underway for purchase of the entire property, staff initiated an update of the study which also included inflation factors, as well as prevailing wage considerations in the rehabilitation of the existing structures. The result was a significant increase in capital improvement and on-going maintenance costs.

Therefore, to provide sufficient financial resources to fund the purchase, capital improvements and on-going maintenance of the Fairgrounds, staff engaged NHA Advisors, LLC, a municipal advisor to Item #8.1.

assist in evaluating alternative funding mechanisms. Based on this analysis it was determined that the most appropriate financing mechanism would be the formation of a community facilities districtin accordance with the Mello-Roos Community Facilities Act of 1982, and the issuance of special tax bonds. A subsequent action by the City Council provided additional professional services from Jones Hall (bond counsel) and NBS (special tax consultant) to draft the necessary documents (as described below).

A CFD provide a means for financing public facilities and services through the levy of a special tax.

The annual revenues (special taxes) can be used to make debt service payments, fund capital projects or pay for operations expenses. The formation of a CFD requires the establishment of a boundary map to identify all properties that may be subject to the special tax. Through the formation process, the purpose of the CFD must be stated including the use of the special tax proceeds and what public improvements may be funded by the special tax levy.

A CFD requires several procedural steps including the initial resolution of intention to form the CFD (the “ROI”). As part of this ROI, the City must include a boundary map identifying all properties that could be subject to the special tax (the “Map”). In addition to the Map, the ROI requires the Rate and Method of Apportionment (“RMA”) which defines the special tax, formulas for allocation of the special tax, authorized public facilities to be funded and process for adjusting in the event parcels change land use categories or participate in a lot split. The first step of the formation and approval process includes the ROI, Map and RMA and calls for a public hearing approximately 30-60 days after the ROI is adopted. During the public hearing, the City Council can approve a resolution of formation (”ROF”), a resolution of necessity for bonds (“RONB”), a resolution approving bonds (“RAB”) and calling for an election from registered voters within the CFD boundaries. The election will typically occur 90-180 days from the public hearing date.

The current financing schedule anticipates the public hearing would be held on December 6, 2022, and the CFD election would be held in March 2023.

If the CFD election is successful, the City would issue CFD special tax bonds, secured by the special taxes to be levied on all the taxable property in the CFD (i.e., within the City) in accordance with the CFD formation proceedings. The goal would be to have the CFD bonds issued by June 30, 2023, so funds are available to purchase the Fairgrounds and make necessary repairs and upgrades to the property. If the CFD election is not successful, the City would no longer be obligated to purchase the Fairgrounds.

Actions
Resolution Adopting CFD Local Goals and Policies - Before any financing structure can begin, the City must adopt CFD local goals and policies to establish parameters around the future issuance of any special tax bonds. The CFD goals and policies proposed for adoption have been used by other local agencies, provide considerable flexibility to the Council and may be amended in the future, as needed.

Resolution of Intention to Form CFD - The Resolution of Intention sets forth the Council’s intention to establish the CFD, approves the Map (coterminous with the boundary of the City), the proposed list of authorized facilities/services, and the RMA. The Resolution of Intention also establishes the public hearing date of December 6.

Resolution of Intention to Incur Bonded Indebtedness for CFD - The Resolution of Intention to Incur Bonded Indebtedness sets forth the Council’s intention to issue special tax bonds not to exceed $50,000,000. This amount has been calculated based on the purchase price and initial capital investment in the Fairground property and assuming a potential second series later in the future once the initial series of bonds mature. The first series of bonds would be issued in 2023 to pay the acquisition price for the Fairgrounds to Napa County and make certain initial improvements, and the second (much smaller) series of bonds would be issued in or around 2053 to pay for additional capital improvements. Each series of bonds would be issued with a final maturity of 30 years.

Item #8.1.

CONSISTENCY WITH CITY COUNCIL GOALS AND OBJECTIVES:

This discussion item conforms to Council Goal 1: Maintain and enhance the economic vitality of the community and the financial stability of the City, specifically Priority Project #4: Support long-term land stewardship of the Napa County Fairgrounds.

CEQA STATUS:

That the recommend action is not a project under the definitions contained in the Guidelines of the California Environmental Quality Act (CEQA) and is therefore exempt from CEQA.

FINANCIAL IMPACT:

Various costs have been incurred related to the preliminary legal and financial work performed to date.

Funding for these costs has been previously approved by the City Council with a transfer from the General Fund and will be reimbursed if the CFD election is successful. The purchase price for the Fairgrounds and related improvements, operations and maintenance would be payable only if the CFD election were successful and then solely from CFD funds, which are special taxes levied on properties in the City.

ATTACHMENT(S):

Attach 1 - Presentation - Calistoga Fairgrounds CFD - CC Meeting 11-01-22 221025b Attach. 2 Reso CFD Goals and Policies (NHA Comments)
Attach 2.1 CFD Goals and Policies - City of Calistoga (NHA Comments) Attach 3 Reso Intention To Form Calistoga CFD
Attach 3.1 CFD No. 2022-1 Boundary Map (Fairgrounds Acquisition and Maintenance) v1 (003) Attach 3.2 CFD 2022-1 Rate & Method (Fairgrounds Acquisition and Maintenance) RMA v5 clean Attach 4 Reso - Bonds Calistoga CFD
APPROVAL(S):

Marni Rittburg, City Clerk Approved - Oct 25 2022
Item #8.1.

CITY OF CALISTOGA

FAIRGROUNDS ACQUISITION & IMPROVEMENTS

APPROVAL OF GOALS & POLICIES AND RESOLUTIONS NECESSARY TO FORM A COMMUNITY FACILITIES DISTRICT (“CFD”)
NOVEMBER 1, 2022
Item #8.1.

2 Background on County Fairgrounds Acquisition Process
 October 4, 2022: City Council approved a resolution approving and authorizing a Purchase and Sale Agreement, escrow instructions and a Declaration of Covenants and Restrictions with the County of Napa for the purchase of the Napa Valley Fairgrounds (“Property”)
 Napa County Board of Supervisors subsequently approved the Agreement  October 18, 2022: City Council directed the City Manager to initiate formation of a Community Facilities District (“CFD”) to fund the acquisition, capital improvement and ongoing maintenance of the Property
 City Manager worked with consultants to develop the special tax formulas and CFD formation documentation for approval by City Council at tonight’s meeting  Provides for a process including (1) a public hearing, (2) calling for an election and (3) the issuance of bonds to fund the acquisition and improvement of the Property Item #8.1.

3 Maximum Special Tax (Primary Categories)
Land Use Category
Maximum
Special Tax
(2023/24) Per
Commercial $0.25 Lot Square Footage
Industrial $0.25 Lot Square Footage
Lodging $2.15 Building Square Footage
Rural Property $1,000 Assessor Parcel
Undeveloped $0.11 Lot Square Footage
Single-Family Residential Detached $0.32 Building Square Footage Condominium $0.32 Building Square Footage
Multi-Family Residential $325 Unit
Mobile Home $125 Unit
Item #8.1.

4 Special Tax Considerations
 Land Use Changes Impact Special Tax Calculations
 As Undeveloped property improves(develops), special tax rate on specific parcel will change
 May increase or decrease tax depending on final use
 Portion of Special Tax Levy for Bond Debt Service
 30-Year Bond Repayment
 First Priority on Special Tax Revenues until Bonds paid off  Portion of Special Tax Levy for Annual Operations and Maintenance  City Council can establish budget to determine annual special tax levy  Could be lower than Maximum Special Tax Rate (but never higher) Item #8.1.

5 Average Residential Home Special Tax
Estimated Special Tax
Number of Detached Residential Units 1,851
Smallest Residential (516 sq. ft.) $165
Largest Residential (6,448 sq. ft.) $2,063
Average Residential (1,638 sq. ft.) $524
Average Residential Condo (1,261 sq. ft.) $403
Item #8.1.

6 Action Items for Approval (November 1, 2022)
 Goals & Policies Resolution
 Resolution of the City Council adopting local goals & policies regarding the formation of CFDs  Resolution of Intention to Form CFD
 Resolution of the City Council of intention to form a CFD and levy a special tax in the City of Calistoga CFD No. 2022-1 (Fairgrounds Acquisition and Maintenance) to finance public services and the acquisition and construction of certain public facilities  Documents for Approval: (1) Rate and Method of Apportionment, (2) List of Authorized Facilities and Services, (3) Form of Notice of Public Hearing and (4) Boundary Map  Resolution of Intention to Incur Bonded Indebtedness
 Resolution of the City Council of intention to incur bonded indebtedness to finance the acquisition and construction of certain public facilities in and for the City of Calistoga CFD No. 2022-1 (Fairgrounds Acquisition and Maintenance)
Item #8.1.

7 Next Steps
 Initiate CFD Process - Tonight
 Public Hearing – December 6th
 Resolution of Formation will be approved/Call for election  Mail Ballot – February/March 2023
 Confirm Election Results - April 2023
 Approve Bond Financing Documents – April/May 2023
 Issue Bonds/Fund Fairground Acquisition – June/July 2023 Item #8.1.

RESOLUTION NO. 2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALISTOGA ADOPTING LOCAL

GOALS AND POLICIES CONCERNING THE USE OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
WHEREAS, the City of Calistoga (the “City”) has duly considered the advisability and necessity of establishing community facilities districts within its territory from time to time under and pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”) and to issue bonds as provided thereunder; and WHEREAS, prior to the initiation of proceedings to establish a new community facilities district (“CFD”) under the Act, Section 53312.7 and 53345.8 of the California Government Code requires that the City consider and adopt local goals and policies concerning the use of the Act; and
WHEREAS, the City has determined to adopt goals and policies pursuant to the Act; and WHEREAS, there have been placed on file with the City Clerk prior to this meeting the proposed form of said local goals and policies;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

Section 1. The City Council hereby finds and determines that the foregoing recitals are true and correct.

Section 2. Pursuant to the Act, the City is hereby authorized to form community facilities district from time to time under the Act.

Section 3. The CFD goals and policies, in substantially the form placed on file with the City Clerk, is hereby approved and adopted as the goals and policies of the City referred to in Section 53312.7 of the Act.

Section 4. This Resolution shall take effect from and after its adoption.

PASSED AND ADOPTED this 1st day of November, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
__________________________________
Mayor
ATTEST:
_________________________________________
City Clerk
Item #8.1.

1 CITY OF CALISTOGA

STATEMENT OF GOALS AND POLICIES

REGARDING USE OF THE
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
Section 1. Purpose and Scope
This document sets forth the goals and policies of the City of Calistoga (the “City”) concerning the use of the Mello-Roos Community Facilities Act of 1982, being Section 53311 and following of the California Government Code (the “Act”), with respect to the establishment of community facilities districts by the City. It has been prepared pursuant to the requirements of Section 53312.7 of the Act.

The purpose of this Statement of Goals and Policies is to provide the City staff, the residents of the City and the owners of property located within the City with guidance in the application for and consideration of the establishment of community facilities districts within the City for the purpose of financing or assisting in financing the acquisition or construction of public facilities needed by the City to benefit and/or serve new or existing residents (“Facilities”), the provision of public services to benefit and/or serve residents of the City and existing or new development within the City (“Services”), or a combination thereof. The underlying principles behind this policy are the protection of the public interest, assuring fairness in the application of special taxes to current and future property owners, assuring full disclosure of the existence of any special tax liens, ensuring the creditworthiness of any community facilities district special tax bonds, protecting the City’s credit and financial position and assuring that applicants (if other than City-initiated proceedings) for community facilities district proceedings pay all costs associated with the formation of any community facilities district.

The scope of this policy is limited to the proposed formation of community facilities districts for the limited purpose of financing or assisting in financing the acquisition or construction of Facilities and/or the provision of Services.

Any policy or goal stated herein may be supplemented or amended or deviated from upon a determination by staff of the City that such supplement, amendment or deviation is necessary or desirable. Any policy or goal stated herein shall be deemed amended or supplemented in the event, and as of the date, if ever, that such amendment or supplement is required to ensure compliance with bond underwriting requirements, the Act or any other laws of the State of California or federal laws of the United States of America.

Section 2. Fundamental Policy
It is the policy of the City that, except as specifically limited by these goals and policies, the City Council may exercise all rights, powers, and authorities granted to it by Item #8.1.

2 the Act. Any inconsistency between these goals and policies and the Act, shall be resolved in favor of the Act.

Section 3. Authorized Facilities and Services
Facilities eligible to be financed by a community facilities district are all authorized facilities set forth in the Act, including but not limited to parks and open space, water, sanitary and storm sewer and related facilities, roads and interchanges, bridges and paseos, including related landscaping and lighting. The services eligible to be financed by a community facilities district are any services allowed under the Act, including but not limited to services related to parks and open space, water, sanitary and storm sewer and related facilities, roads and interchanges, bridges and paseos, including related landscaping and lighting.

Section 4. Financing Priorities
The City shall prioritize the financing of City-owned facilities and the funding of City-provided services. The financing of facilities to be owned and operated by other public agencies through a Joint Community Facilities Agreement shall be evaluated on a case-by-case basis.

Section 5. Special Tax Requirements
a. Reasonable Basis of Apportionment.

Special taxes must be allocated and apportioned on a reasonable basis to all categories and classes of property (other than exempt property) within the community facilities district. Exemptions from the special tax may be given to parcels which are publicly owned, are held by property owners’ associations, are used for a public purpose such as permanent open space or wetlands or are affected by public utility easements making impractical their utilization for other than the purposes set forth in the easement.
b. Equity of Tax Allocation Formulas.

It is a goal of the City that any special tax levied pursuant to the Act be allocated equitably against all similar use parcels within any community facilities district. Towards this end, the City will engage a qualified special tax consultant to assist in the development of the rate and method of apportionment for any special tax proposed in connection with a community facilities district.
c. Rate and Method of Apportionment of Special Taxes.

The rate and method of apportionment of the special tax for any community facilities district (each, a “Rate and Method”) shall adhere to the following requirements:

1. The Rate and Method must be structured so as to produce special tax revenues sufficient to (a) pay scheduled debt service on all bonds issued for Item #8.1.

3 the Facilities, (b) pay the annual cost of authorized Services, if applicable, (c) pay an amount equal to any anticipated shortfall in special tax revenues and/or bond debt service due to delinquencies or projected delinquencies in the payment of special taxes, (d) fund any amounts required to establish or replenish any reserve fund established for such bonds, (e) pay the costs of formation of the City or reimburse the City for the costs of formation of the district previously paid out of City funds, and (f) pay annual administrative expenses of the community facilities district. Additionally, the Rate and Method may be structured so as to produce amounts sufficient to fund (a) amounts to pay directly the costs of Facilities eligible to be financed by the community facilities district, (b) the accumulation of funds reasonably required for the payment of future debt service on bonds, (c) remarketing, credit enhancement or liquidity fees, and (d) any other costs or payments permitted by law.

2. In any case, the Rate and Method must generally be structured such that the projected maximum special tax that could be levied in any Fiscal Year would produce special tax revenues at least equal to (a) 110% of projected annual debt service on all bonds for the calendar year commencing in such Fiscal Year, plus (b) projected administrative expenses of the community facilities district for the calendar year commencing in such Fiscal Year.

3. In general, the Rate and Method shall be structured in such a way that for each owner-occupied residential dwelling unit, the projected maximum special taxes plus all other estimated property taxes do not exceed 2% of the estimated value of the unit at the time of formation.

4. The Rate and Method may contain a mechanism by which the Maximum Special Taxes may be lowered without action by the City Council prior to the issuance of bonds.

5. The Rate and Method may contain an option allowing the prepayment, in whole or in part, of the special tax obligation for an individual parcel for any portion of the special tax authorized to finance Facilities. The prepayment, in whole or in part, of the special tax obligation for any special tax authorized to be levied to finance Services shall not be permitted unless specifically provided by the Rate and Method. However, neither the City nor the community facilities district shall be obligated to pay for the cost of determining the prepayment amount, which is to be paid by the applicant.

6. At its discretion, the City may permit annual escalation of the maximum special tax authorized to be levied on parcels within a community facilities district established for the purpose of financing Facilities, in an amount not to exceed the maximum amount permitted under the Act.

The City may permit annual escalation of the maximum special tax authorized to be levied on parcels within a community facilities district established for the purpose of financing Services, in an amount determined (in Item #8.1.

4 the sole discretion of the City) to most accurately reflect the projected increase in the cost of the financing such Services over the project life of the services.

7. The Rate and Method of a special tax authorized to finance Facilities shall specify a Fiscal Year beyond which the special tax may not be levied on any developed residential parcel. In most cases, the final Fiscal Year in which special taxes shall be authorized to be levied by a community facilities district on such developed residential parcels will be 10 years after the stated maturity of any bonds issued for such community facilities district. Such a special tax will cease to be levied when all bonds issued for the applicable community facilities district and the City’s administrative costs have been paid.

A special tax authorized to pay for Services shall have no termination date unless established by the City Council.

Section 6. Credit Quality Requirements for Special Tax bonds a. Terms and Conditions of Special Tax bonds.

All terms and conditions of any bonds issued by the City for any community facilities district, including, without limitation, the sizing, timing, term, interest rates, discount, redemption features, flow of funds, investment provisions and foreclosure covenants, shall be established by the City. Each bond issue shall be structured to adequately protect bond owners and to avoid negatively impacting the City’s access to the municipal bond market. Unless otherwise approved by the City Council, the following shall serve as minimum bond requirements:

1. A reserve fund shall be established for each bond issue to be funded out of the bond proceeds in an amount equal to 10% of the original proceeds of such bonds or such lesser amount as may be required by federal tax law.

2. Interest shall be capitalized for a bond issue only so long as necessary to place the special tax installments on the County property tax roll; however, interest may be capitalized for a longer term to be established in the sole discretion of the City Council on a case-by-case basis, not to exceed an aggregate of 24 months.

3. In instances where multiple series of bonds are to be issued for a community facilities district, the City shall determine what Facilities shall be financed from the proceeds of each series of such bonds.

4. The term of any bond issue shall not exceed 40 years.

5. The City shall not be required or expected to make any payment of the bonds out of its general funds or other available funds. The sole source of revenue for the payment of the bonds issued for any community facilities district shall be the special taxes authorized to be levied within such community facilities Item #8.1.

5 district, including prepayments of such special taxes, capitalized interest, if any, moneys on deposit in the reserve fund established for such bonds, investment earnings on the proceeds of such bonds and such other funds as may be pledged to the payment of such bonds pursuant to the fiscal agent agreement or other document providing for the issuance of such bonds as approved by the City Council.

Section 7. Minimum Value-to-Debt Ratio
The City shall comply with the provisions of Section 53345.8 of the Act or any other applicable provisions of the Act pertaining to the Minimum Value-to-Debt Ratio applicable to the issuance of the bonds of any community facilities district. For purposes of this section, “Minimum Value-to-Debt Ratio” means the aggregate value of all of the properties within a community facilities district that are subject to the levy of special taxes to pay debt service on the proposed issuance of bonds (based on assessed values, appraised values or a combination thereof) will be at least three times the sum of (a) the proposed principal amount of such bonds and (b) the principal amount of all other bonds outstanding that are secured by a special tax levied on the taxable property within a community facilities district or a special assessment levied on taxable property within the community facilities district.

Section 8. Responsible Department
In the formation proceedings for each community facilities district, the City Council shall set forth the designated official of the City that will serve as the contact person and who is responsible for: (i) preparing the annual roll of special tax obligations with respect to any community facilities district; (ii) providing information to interested persons regarding the current and estimated future tax liability of owners or purchasers of real property subject to the special tax lien; and (iii) furnishing notices of special tax as required by Section 53340.2 of the Act.

Subject to the policies of the City, and as permitted by applicable law, the City may obtain the assistance of a qualified consultant to perform any of the duties set forth above or pertaining to the City.

Section 9. Transparency and Notification
The City will take the following steps to ensure that prospective property purchasers and others are fully informed about their taxpaying obligations imposed under the Act:
a. The City will conduct all proceedings required by the Act in the manner required by the Ralph M. Brown Act (Section 54950 and following of the California Government Code);
b. The City will cause a map of the boundaries of any proposed community facilities district and/or future annexation area to be recorded in the Office of the County Recorder within the time periods specified in the Act;
Item #8.1.

6 c. The City will give notice, pursuant to Section 53322 of the Act, prior to holding any public hearing on the establishment of a community facilities district; d. The City will record a notice of special tax lien, in the form and manner specified by the Act.
e. The City will, through the CFD Administrator, furnish a notice of any individual requesting the notice or any owner of property subject to a special tax, in the form set forth in Section 53340.2(c) of the Act to a special tax levied by the local agency within five working days of a request for such notice. Records of receipt of the notice will be retained for future reference. The City Council may establish a reasonable fee for this service.
f. The City will annually file the disclosure report required by Section 53359.5(b) of the California Government Code, and, if applicable, the report required by Section 53359.5(c) of the California Government Code.

Section 10. Appraisal.

In general, the definitions, standards and assumptions to be used in appraisals for community facilities districts established by the City have considered the provisions set forth in the Appraisal Standards for Land Secured Financings published by the California Debt Advisory Commission and originally dated May 1994, as subsequently modified or amended (the “CDIAC Guidelines”).

Notwithstanding the foregoing, if there is a conflict between the definitions, standards or assumptions in the CDIAC Guidelines and the corresponding definitions, standards or assumptions in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (“USPAP”), USPAP shall govern.

Section 11. Interpretation.

This policy is intended to be general in nature and the specific details will depend on the nature of each formation and financing. This policy is subject to amendment and deviation by the City at any time.

Item #8.1.

RESOLUTION NO. 2022-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALISTOGA OF INTENTION TO

FORM A COMMUNITY FACILITIES DISTRICT AND LEVY A SPECIAL TAX IN THE CITY OF CALISTOGA COMMUNITY FACILITIES DISTRICT NO. 2022-1 (FAIRGROUNDS

ACQUISITION AND MAINTENANCE), TO FINANCE PUBLIC SERVICES AND THE

ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR

SUCH COMMUNITY FACILITIES DISTRICT
WHEREAS, the City of Calistoga (the “City”) has agreed to purchase the Napa County Fairgrounds from the County of Napa, conditioned on, among other things, the successful passage of a local revenue measure sufficient to generate the funds needed to pay the purchase price; and
WHEREAS, under the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”), the City Council is authorized to establish a community facilities district to fund the acquisition, improvement and maintenance and operation of the fairgrounds, to act as the legislative body for such community facilities district and to call for an election with respect to such community facilities district; and
WHEREAS, the City Council desires to proceed with the establishment of a community facilities district for the purposes stated above and herein.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

1. It is proposed to establish a community facilities district within the City under the terms of the Act to finance costs of public facilities and public services authorized by the Act.

2. The name proposed for the community facilities district is the “City of Calistoga Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance)” (the “CFD”).

3. The proposed boundaries of the CFD are shown on the Map of Proposed Boundary of a proposed community facilities district to be known as City of Calistoga Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance), on file with the City Clerk, which the City Council approves as the map describing the extent of the territory included in the proposed CFD, which territory is co-terminus with the boundary of the City. The City Council directs the City Clerk to certify the adoption of this resolution on the face of the map, and to file a copy of the map in the office of the City Clerk in accordance with Section 3111 of the California Streets and Highways Code and within 15 days of the date of adoption of this resolution but in no event later than 15 days prior to the public hearing provided for herein, transmit the map to the County Recorder of the County of Napa for recording in the Book of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of Napa.

4. Except to the extent that funds are otherwise available to the CFD to pay for the Services and/or Facilities (each as defined below), including the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and/or acquire the Facilities, a special tax (“Special Tax”) sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the Item #8.1.

2 CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as the City Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD, in sufficient detail to allow each landowner within the proposed CFD to estimate the maximum amount such owner will have to pay, are described in the Rate, Method of Apportionment and Manner of Collection of Special Tax attached hereto as Exhibit A and hereby incorporated herein (the “Rate and Method”).

No portion of the Special Tax shall be levied in the CFD for Facilities after the fiscal year identified in the Rate and Method, except that a portion of the Special Tax for Facilities that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the portion of the Special Tax for Facilities levied against any parcel in the CFD for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the CFD, in contravention of the Act, including Section 53321(d) of the Act.

The City Council hereby finds that the provisions of Sections 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD.

5. The type of public facilities proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as facilities on Exhibit B hereto (the “Facilities”) and the type of public services proposed to be financed by the CFD and pursuant to the Act shall consist of those items listed as services on Exhibit B hereto (the “Services”). The financing of the costs of Facilities may include, without limitation, the payment of principal of and interest on bonds or other indebtedness together with all direct, indirect, periodic and/or other related costs (including, without limitation, costs of administering the CFD and any CFD bonds, levying the Special Tax, and establishing and replenishing reserve funds).

6. Except as may otherwise be provided by law or by the Rate and Method, the following shall be omitted from the levy of the Special Tax: (i) all lands owned by any public entity, including the United States, the State of California, the County and the City, or any departments or political subdivisions thereof, and (ii) acreage that is the subject of an openspace easement acquired by the County, or dedicated or restricted to agricultural or conservation uses, as described in the Act. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, the City will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the Rate and Method. It is anticipated that the Special Tax will be billed as a separate line item on the regular property tax bill. However, the City reserves the right, under Section 53340 of the Act, to utilize any method of collecting the Special Tax which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.

7. The levy of the Special Tax shall be subject to the approval of the qualified electors within the CFD at a special election. The qualified electors shall be the registered voters within the proposed CFD.

8. It is the intention of the City Council, acting as the legislative body for the CFD, to cause bonds of the City in one or more series to be issued for the CFD pursuant to the Act to Item #8.1.

3 finance in whole or in part the construction and/or acquisition of the Facilities. The bonds issued in these proceedings shall be callable in accordance with the provisions of the Act, and shall be issued in such series and bear interest payable semi-annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, shall mature not to exceed 40 years from the date of the issuance thereof (on a series-by-series basis), and shall be as more specifically set forth in any resolution authorizing the issuance of such bonds.

9. The City Manager of the City, as the officer having charge and control of the Facilities and Services in and for the CFD, or the designee of such official, is hereby directed to cause and direct a study of said proposed CFD and the Facilities and Services, and to cause to be prepared for filing at the public hearing the report required by Section 53321.5 of the Act (the “CFD Report”) presenting at least the following:
(a) A brief description of the Facilities and Services by type which will be required to adequately meet the needs of the CFD.
(b) An estimate of the fair and reasonable cost of the Facilities and Services, including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act.

The CFD Report shall be made a part of the record of the public hearing specified below.

10. The City Council hereby sets Tuesday, December 6, 2022 at 6:00 p.m., at the Calistoga Community Center, located at 1307 Washington Street, Calistoga, California, as the time and place when and where the City Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD, and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD, and the levy of the Special Tax. At the hearing, testimony concerning the CFD, the extent of the CFD, or the furnishing of the particular types of public facilities and public services will be heard and protests will be considered from registered voters residing within the CFD and persons owning real property within the CFD. Written protests by the owners of a majority of the registered voters or land which would be subject to special taxation within the proposed CFD will require the suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing. If such protests are directed only against certain elements of the proposed improvements or proposed Special Tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings.

11. The City Clerk is hereby directed to cause notice of the public hearing, attached hereto as Exhibit C, to be given by one-time publication in a newspaper published in the area of the CFD. The publication shall be completed at least 7 days before the date of the public hearing referenced above. The notice shall be substantially in the form specified in Section 53322 of the Act and attached hereto, with the form summarizing the provisions hereof hereby specifically approved.

12. The City Clerk is hereby authorized and directed to provide a copy of the this Resolution to the City Council of Supervisors of the County of Napa, in accordance with Section 53315.6 of the Act
Item #8.1.

4 13. This Resolution shall take effect from and after its adoption.

PASSED AND ADOPTED this 1st day of November, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
__________________________________
Mayor
ATTEST:
_________________________________________
City Clerk
Item #8.1.

EXHIBIT A

RATE AND METHOD OF APPORTIONMENT
City of Calistoga
Community Facilities District No. 2022-1
(Fairgrounds Acquisition and Maintenance)
Attached.

Item #8.1.

EXHIBIT B

LIST OF AUTHORIZED FACILITIES AND SERVICES
City of Calistoga
Community Facilities District No. 2022-1
(Fairgrounds Acquisition and Maintenance)
The authorized facilities and services to be funded from the levy and collection of annual special taxes shall consist of those items set forth below, in addition to the costs associated with collecting and administering the special taxes and the CFD.

Authorized Facilities. Authorized Facilities include the acquisition of the real property commonly known as the Napa County Fairgrounds (the “Fairgrounds”) by the City of Calistoga (“City”) and the costs and expenses related thereto, including all park, RV Park, Speedway, golf course, lawns, landscaping and open space improvements thereon, and the construction, rehabilitation, renovation, removal or addition of any new or existing improvements on, in the area of, or needed to facilitate the use of, all or any portion of the Fairgrounds, and the costs and expenses related thereto. For example, Authorized Facilities include but are not limited to recreation facilities and amenities, pavilions and shelters, parking and restroom facilities, pedestrian and bike trails, on-site and off-site utilities, including water, wastewater and storm drain facilities, environmental mitigation improvements, landscaping and irrigation, access gates and fencing, as well as any land acquisition and easement payments for the use or expansion of the facilities and any other improvements facilitating or enhancing the use of the Authorized Facilities. Authorized Facilities also include all related financing costs, such as costs of issuance, costs to establish reserve funds and the payment of principal and interest on bonds or other indebtedness.

Authorized Services. Authorized Services include all aspects of operation, maintenance, repair and service of any and all Authorized Facilities, including replacement and the funding of a reserve fund to pay for future repair and/or replacement of any Authorized Facilities. Such Authorized Services include but are not limited to all general or extraordinary activities deemed necessary or desirable by City to provide for the use or enjoyment of any and all Authorized Facilities whether provided by City or any outside entity, including maintenance and operations contingencies and reserves with respect thereto. For example, Authorized Services include but are not limited to the operation and maintenance of all Fairgrounds buildings, lawns, landscaping, lighting, and parking and driveway areas, the RV Park, Speedway, golf course and related buildings, facilities, and on-site and off-site utilities (including water and electricity).

Incidental Costs. In addition, costs eligible to be financed by the CFD shall include all costs and expenses incidental to the above and authorized by the Mello-Roos Community Facilities Act of 1982 (the “Act”) determined by City to be associated with the Authorized Facilities, the Authorized Services, the formation and ongoing administration of the CFD, the election, bonding, levy and collection of taxes for the CFD, and any other costs incurred to carry out the authorized purposes of the CFD permitted by the Act.

Item #8.1.

EXHIBIT C
(FORM OF)

NOTICE OF PUBLIC HEARING ON PROPOSED

CITY OF CALISTOGA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(FAIRGROUNDS ACQUISITION AND MAINTENANCE)
The City of Calistoga is considering the formation of a community facilities district (the “CFD”) under the authority of the Mello-Roos Community Facilities Act of 1982, as amended, to fund certain public services and the acquisition and construction of certain public facilities within the City of Calistoga, and to incur bonded indebtedness of the CFD.

This Notice contains a brief summary of the proposal, but you are referred to the City Council’s Resolution of Intention to Form a Community Facilities District and Levy a Special Tax in the City of Calistoga Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) to Finance Public Services and the Acquisition and Construction of Certain Public Facilities in and for Such Community Facilities District (No. 2022-______, adopted November 1, 2022) and its Resolution of Intention to Incur Bonded Indebtedness to Finance the Acquisition and Construction of Certain Public Facilities in and for the City of Calistoga Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) (No. 2022-________, adopted November 1, 2022) for details of the proposals.

The proposal is to subject the property within the CFD to a special tax which will be used to pay for the authorized services and facilities proposed by the CFD, including paying principal and interest on bonds used to acquire or construct facilities. The proceeds of the bonds will be used to pay for the facilities and other expenses, all as set forth in the resolutions referred to in the preceding paragraph. A map showing the land proposed to be included in the CFD is on file with the City Clerk.

As set forth below, the City Council will hold a public hearing on the establishment of the CFD, the services and the facilities to be financed by the CFD, the levy of the special tax within the CFD and the authority to issue up to $50,000,000 in bonds to be repaid by a portion of the special tax. Neither the City of Calistoga nor any person outside the CFD has any liability for the special tax or the bonds. The security for the bonds will be limited to the property subject to the special tax within the CFD.

In order to confer the authority upon the City Council of the City of Calistoga to levy the special tax and to issue the bonds, a public hearing must be held on the proposals, then the City Council will decide whether to form the CFD, and finally the qualified electors within the CFD must approve the proposals by a two-thirds vote. The qualified electors are, pursuant to law, the registered voters within the CFD.

This is the notice of the public hearing. The public hearing will be held during the City Council meeting on Tuesday, December 6, 2022 at 6:00 p.m., at the Calistoga Community Center, located at 1307 Washington Street, Calistoga, California.

Item #8.1.

At the hearing, the testimony of all interested persons or potential special taxpayers for or against the formation of the CFD, the authorization to levy the special tax, and the authorization to issue the bonds will be heard.

If written protests against the proposed CFD are delivered to the City Clerk at or before the time set for the hearing by either registered voters residing within, or the owners of property within, the proposed CFD, they will be counted toward a possible majority protest. Such protests by a majority of the registered voters residing within the CFD or by the owners of a majority of the land area within CFD which is or will be subject to the special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, will require the proposed CFD to be eliminated from immediate consideration, and prevent its being included in a subsequent proceedings for at least one year.

If the City Council, after the public hearing, determines that a majority protest under Section 53324 of the California Government Code was not made at the hearing, the City Council may conduct an election by special mailed ballot, or consolidated with a County-wide election, to levy a special tax within the CFD and incur bonded indebtedness for the CFD.

Questions should be directed to the undersigned, telephone (707) 942-2807.

Dated: November __, 2022
City Clerk of the City of Calistoga
Item #8.1.

MAP OF PROPOSED BOUNDARIES OF

CITY OF CALISTOGA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(FAIRGROUNDS ACQUISTION AND MAINTENANCE)
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF CALISTOGA THIS _____ DAY OF __________, 20____. ___________________________

CITY CLERK

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OF THE CITY OF CALISTOGA COMMUNITY FACILITIES DISTRICT NO. 2022-1 (FAIRGROUNDS ACQUISITION AND MAINTENANCE), COUNTY OF

NAPA, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCEIL OF THE CITY OF CALISTOGAAT A MEETING THEREOF, HELD ON THE _____ DAY OF __________, 20____, BY ITS RESOLUTION NO._______________. _______________________

CITY CLERK
FILED THIS _____ DAY OF __________, 20____, AT THE HOUR OF _______ O'CLOCK ___.M., IN BOOK _____ OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS, AT PAGE _____ IN THE OFFICE OF THE COUNTY RECORDER IN THE COUNTY OF NAPA, STATE OF CALIFORNIA.
_____________________________________

DEPUTY RECORDER

COUNTY OF NAPA

FOR PARTICULARS OF THE LINES AND DIMENSIONS OF ASSESSOR PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ASSESSOR, COUNTY OF NAPA, STATE OF CALIFORNIA.

CITY OF CALISTOGA

COUNTY OF NAPA

STATE OF CALIFORNIA
Silverado Trl
Grant St
Foothill Blvd
Tubbs
Ln
Lake
St
Pickett Rd
Greenwood Ave
Washington St
Mora Ave
Dunaweal Ln
N Oak St
Rosedale Rd
State
Highway 29
Fair Way
Mitzi Dr
Myrtledale Rd
Petrified Forest Rd
Money Ln
Berry
St
View Rd
White Ln
Brannan
St
Michael Way
3rd
St
4th
St
Lerner Dr
2nd
St
1st
St
Lillie
St
Spring
St
State Highway 128
Bennett Ln
Harley St
Emerald Dr
Filmore
St
Maggie Ave
S
Oak St
Arch Way
Centennial Cir
High St
Highland Ct
Willow
St
State Highway 29
Cedar St
Sheet 1 of 1
Source: Napa County GIS
Geographic Coordinate Reference: GCS North American 1983 Projection: NAD 1983 StatePlane California II FIPS 0402 Feet ¬«29
¬«12
¬«12
Sage Canyon Rd
¬«128
Site
¬«29
Monticello Rd
Bro
a
d
wa
y

C O U N T Y O F N A P A
CFD Boundary/City of Calistoga
Parcels 0 500 1,000 2,000 Feet
O
Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES

FOR CITY OF CALISTOGA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(FAIRGROUNDS ACQUISITION AND MAINTENANCE)
A Special Tax, as hereinafter defined, shall be levied and collected in the City of Calistoga Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) (“CFD No. 2022-1”) each Fiscal Year commencing in Fiscal Year 2023/24, in an amount determined by the application of the procedures below. All Taxable Property, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in California Government Code Section 65852.2(j)(1), as may be amended from time to time, that is accessory to a primary Unit.

The ADU may be located on the same Assessor’s Parcel as the primary Unit that is the primary Unit or on a separate Assessor’s Parcel. For purposes of clarification, where an ADU and primary Unit are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is considered a separate Unit from the primary Unit on such Assessor’s Parcel for purposes of the Special Tax. Should an Assessor’s Parcel contain only an ADU, such Assessor’s Parcel will be taxed as an ADU Unit only. "Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown in the Assessor’s Data. In the event that the Assessor’s Data shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, an Assessor’s Parcel Map or by using available spatial data and GIS.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1 including, but not limited to, the following: the costs of any paying agents/fiscal agents/trustees related to CFD No. 2022-1 Bond payments (including the fees and expenses of related counsel); the costs of computing the Annual Special Tax Requirement, the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, County Tax Collector’s Office or County Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements associated with applicable federal and state securities laws, or otherwise related to CFD No. 2022-1 or CFD No. 2022-1 Bonds; the City’s annual administration fees and third party expenses; costs of responding to public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax or interpretation of this Rate and Method of Apportionment of Special Taxes; amounts needed to pay Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 2 any required arbitrage rebate to the federal government related to CFD No. 2022-1 Bonds; the costs associated with the release of funds from any escrow account; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in CFD No. 2022-1.

Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2022-1 for any other administrative purposes of CFD No. 2022-1. "Annual Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2022-1:

Before the Transition Year, to (1) pay Debt Service on all Outstanding CFD No. 2022-1 Bonds which is due in such Fiscal Year; (2) pay for Authorized Services; (3) pay Administrative Expenses; (4) provide any amount required to establish or replenish a reserve fund in connection with any CFD No. 2022-1 Bonds; (5) provide any amount required to establish or replenish any operating reserve held by the City for Authorized Services and/or Administrative Expenses; (6) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (4) or (5). The amounts referred to in clauses (1) through (6) of the preceding sentence may be reduced in any Fiscal Year (in the City’s sole discretion) by (i) interest earnings on or surplus balances in funds and accounts for CFD No. 2022-1 Bonds to the extent that such earnings or balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding CFD No. 2022-1 Bonds or other indebtedness as determined by the CFD Administrator.

Beginning in the Transition Year, to (1) pay for Authorized Services; (2) pay Administrative Expenses; (3) provide any amount required to establish or replenish any operating reserve held by the City for Authorized Services and/or Administrative Expenses; (4) provide an amount equal to reasonably anticipated Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act; less (5) a credit for funds available, if any, to reduce the Special Tax levy. “Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, Building Square Footage, Lot Square Footage and Units.
"Assessor’s Parcel" or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the County Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification. “Assigned Special Tax” means the Assigned Special Tax determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.

Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 3 “Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 2022-1, including by the proceeds of any CFD No. 2022-1 Bonds. The Special Tax to fund Authorized Facilities may only be levied prior to the Transition Year. “Authorized Services” means the services authorized to be funded, in whole or in part, by CFD No. 2022-

1. “Building Permit” means a permit issued by the City for new construction of a residential or nonresidential building on an Assessor’s Parcel. “Building Square Feet” or “BSF” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Building Square Feet shall be made by reference to Assessor’s Data.

In the event thatthe Assessor’s Data does not show Building Square Feet, other records ofthe City, County or owner of the Assessor’s Parcel shall be used as determined by the CFD Administrator. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement, and otherwise providing for the levy and collection of the Special Taxes. "CFD No. 2022-1" means City of Calistoga Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance), established by the City Council pursuant to the Act. “CFD No. 2022-1 Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the City for CFD No. 2022-1 under the Act, and secured by pledge of the Special Taxes.
“City” means the City of Calistoga, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2022-1. “Commercial Property” means, in any Fiscal Year all Assessor’s Parcels of Developed Property, which have a structure(s) used for commercial purposes. Typical County Use Codes include: 51, 511, 512, 5121, 514, 515.
“Condominium Property” means, in any Fiscal Year all Assessor’s Parcels of Residential Property with one Unit with a single Assessor’s Parcel Number that is a condominium pursuant the definition in Civil Code Section 4125. Typical County Use Codes include: 12.
"County" means the County of Napa, California.
“County Use Code” means that code in the Assessor’s Data that indicates the land use of each Assessor’s Parcel.
“Debt Service” means for each Debt Year, the total amount of principal and interest due on any Outstanding CFD No. 2022-1 Bonds.
“Debt Year” means the twelve (12) month period ending on the second debt service payment date of each calendar year.
"Developed Property" means, in any Fiscal Year, all Taxable Property in CFD No. 2022-1 for which a Building Permit for new construction was issued by the City prior to March 1 of the preceding Fiscal Year.

Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 4 “Exempt Property” means all property located within the boundaries of CFD No. 2022-1 which is exempt from the Special Tax pursuant to Section E below.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. “GIS” or “Geographic Information System” means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data. “Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which CFD No. 2022-1 Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Industrial Property” means, in any Fiscal Year all Assessor’s Parcels of Developed Property, which have a structure(s) used for industrial purposes. Typical County Use Codes include: 41, 411, 412, 413, 414, 42, 4211, 4212, 4213, 4214, 4215.
“Land Use Class” means any of the classes listed in Table 1. “Lot Square Feet” or “LSF” means, for any Assessor’s Parcel, the Acreage divided by 43,560. “Lodging Property” means, in any Fiscal Year all Assessor’s Parcels of Developed Property, which have a structure(s) used as a hotel, motel, bed and breakfast, etc. Typical County Use Codes include: 513. "Maximum Special Tax” means the Maximum Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Mobile Home Property” means all Assessor’s Parcels of Residential Property with a movable or portable dwelling spaces available to be connected to utilities and all Assessor’s Parcels of Residential Property with Unit(s) available to be connected to utilities, including single Assessor’s Parcels with one or more mobile homes and Assessor’s Parcels that operate as a mobile home park. As it relates to Mobile Home Property, Units are the number of mobile home spaces on each Assessor’s Parcel, including for mobile home parks, Units are the number of mobile home spaces on each Assessor’s Parcel. Typical County Use Codes include: 23.
“Multi-Family Residential Property” means, in any Fiscal Year all Assessor’s Parcels of Residential Property which have a structure(s) that contains more than one Unit, including duplex, triplex, and apartment buildings. Multi-Family Residential Property does not include Single Family Residential Detached Property that also has an ADU. Typical County Use Codes include: 21, 212, 2122, 213, 2133, 214, 2144, 215, 216, 217, 218.
“Open Space Property” means property within the boundaries of CFD No. 2022-1 which (i) has been designated with specific boundaries and Acreage on a final subdivision map as open space, (ii) has been irrevocably offered for dedication as open space to the federal government, the State, the County, the City, or any other public agency, or (iii) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space.
“Outstanding CFD No. 2022-1 Bonds” means all CFD No. 2022-1 Bonds which are outstanding under and in accordance with the provisions of the Indenture.
“Property Owner’s Association” or “POA” means any duly constituted property owner’s association. As Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 5 used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s association, master or sub-association or non-residential owner’s association. “Property Owner’s Association Property” means any property within the boundaries of CFD No. 2022-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as Property Owner Association Property. "Proportionately" means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal. “Public Property” means any property within the boundaries of CFD No. 2022-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other governmental agency. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for CFD No. 2022-1.
“Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more residential Units. “Rural Property” means, in any Fiscal year all Assessor’s Parcels which are located and used in a rural manner. Typical County Use Codes include: 30, 3001, 31, 3101, 312, 3121, 313, 3131, 314, 3141, 315, 3151, 32, 3201, 322, 3221, 323, 3231, 324, 3241, 325, 3251, 33, 3301, 34, 3401, 341, 35, 36, 37, 3701, 3711, 372, 3721, 373, 3731, 374, 3741, 375, 3751, 38, 3801, 3811, 382, 3821, 383, 3831, 384, 3841, 385, 3851, 39, 3901, 392, 3921, 393, 3931, 394, 3941, 395, 3951. “Single Family Residential Detached Property” means, in any Fiscal Year all Assessor’s Parcels of Residential Property which have a structure used as a detached residential structure intended as a single primary Unit. Typical County Use Codes include: 11, 111. "Special Tax(es)" means the special tax or special taxes to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 2022-1 to fund the Annual Special Tax Requirement. "State" means the State of California.
"Taxable Property" means all the Assessor’s Parcels within the boundaries of CFD No. 2022-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Taxable Public Property” means all Assessors Parcels of Public Property that are not exempt pursuant to Section E herein.
“Transition Event” means the earlier of (i) Fiscal Year 2084/85 or (ii) the Fiscal Year when the CFD Administrator determines that both of the following events have occurred: (a) all Bonds secured by the levy and collection of the Special Tax in CFD No. 2022-1 have been fully repaid and the City determines that no additional Bonds are to be issued, and (b) all Administrative Expenses from prior Fiscal Years have been paid or reimbursed to the City.
“Transition Year” means the first year in which the CFD Administrator determines that the Transition Event occurred in the prior Fiscal Year.

Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 6 "Trustee" means the trustee or fiscal agent or paying agent acting as such under the applicable Indenture. “Undeveloped Property” means, in any Fiscal Year, all Taxable Property not classified as Developed Property, Final Map Property, Taxable Property Owner Association Property, or Taxable Public Property. “Unit” means (i) for Single Family Residential Detached Property, an individual single family detached residential unit, (ii) for Multi-Family Residential Property, an individual residential living unit. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. “Very Low-Income Exemption Form” means a form made available by the City or the CFD Administrator and submitted to the City or CFD Administrator by the owner of an Assessor’s Parcel no later than June 30 each year that, if accepted and approved by the City or the CFD Administrator, shall cause the Assessor’s Parcel owned by the submitter to be designated as Tax-Exempt Property in the following Fiscal Year. The Very Low-Income Exemption Form shall require the applicant to provide (i) the Assessor’s Parcel to which the exemption shall apply, (ii) proof that household income for the calendar year preceding the Fiscal Year for which the form is being filed was less than or equal to the Very Low-Income Limits for the Napa, CA MSA, CA HUD Metro FMR Area, or similar Income Limit Area if the Napa, CA MSA, CA HUD Metro FMR Area no longer exists in the future, as published by the U.S. Department of Housing and Urban Development, and (iii) an attestation that the owner occupies the Assessor’s Parcel for which the form is being submitted. Proof of household income shall be confirmed by review of the prior years' tax return of individuals living in the household; copies of all such tax returns must be attached to the Very Low-Income Exemption Form in order for the City or the CFD Administrator to verify household income. A Very LowIncome Exemption Form must be submitted to the City or the CFD Administrator no later than June 30 each year for the Assessor’s Parcel to continue to be eligible for an exemption in the following Fiscal Year. “Very Low-Income Property” means, in any Fiscal Year, all Assessor’s Parcels within CFD No. 2022-1 for which a Very Low-Income Exemption Form was submitted to the City or the CFD Administrator on or prior to June 30 of the previous Fiscal Year and has been accepted as valid by the City or the CFD Administrator.

All Assessor’s Parcels with an approved Very Low-Income Exemption Form shall be classified as TaxExempt Property, with the following exception: if, in any Fiscal Year, the aggregate total exemptions related to Very Low-Income Property would exceed $20,000 (stated in Fiscal Year 2023/24 dollars, and increasing by 2% each July 1 thereafter), the CFD Administrator shall proportionately reduce the amount of the discount from 100% to each Assessor’s Parcel of Very Low-Income Property until the aggregate discount equals $20,000 (stated in Fiscal Year 2023/24 dollars, and increasing by 2% each July 1 thereafter). The City Council may elect to allow the aggregate total exemptions related to Very LowIncome Property to exceed $20,000 (stated in Fiscal Year 2023/24 dollars, and increasing by 2% each July 1 thereafter) beginning in the Transition Year and any subsequent Fiscal Year or if funds from another source are made available to the CFD by the City or other party to fund additional exemptions. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2022- 1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act. Pursuant to Section 53340(c) of the Act, after the issuance of the first series of CFD No. 2022-1 Bonds, as applicable, Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 7 any Assessor’s Parcels that received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Special Tax.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2022-1 for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) which Parcels are Developed Property, Undeveloped Property, Taxable Property Owner Association Property and Taxable Public Property; (ii) the number of Units or Lot Square Footage each Parcel contains; (iii) the property type, i.e., Single Family Residential Detached Property, Commercial Property, Accessory Dwelling Unit, etc.; and (iv) the Annual Special Tax Requirement for the Fiscal Year.

The Assigned Special Tax for Multi-Family Residential Property shall be based on the number of Units on such Assessor’s Parcel. The Assigned Special Tax for Single Family Detached Property and Condominium Property shall be based on the number of Building Square Feet on such Assessor’s Parcel. The Assigned Special Tax for Rural Property shall be on a per Assessor’s Parcel basis. Non-Residential Property, Taxable Property Owner Association Property and Taxable Public Property shall be based on the Acreage of the Assessor’s Parcel.

C. MAXIMUM SPECIAL TAX RATES
The Maximum Special Tax for each Assessor’s Parcel is shown in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX
FISCAL YEAR 2023/24
Land Use Class
Maximum
Special Tax Per
Commercial Property $0.25 Lot Square Foot
Industrial Property 0.25 Lot Square Foot
Lodging Property 2.15 Building Square Foot
Rural Property 1,000.00 Assessor’s Parcel
Undeveloped Property 0.11 Lot Square Foot
Single Family Residential Detached Property 0.32 Building Square Foot Condominium Property 0.32 Building Square Foot
Multi-Family Residential Property 325.00 Unit
Mobile Home Property 125.00 Unit
Accessory Dwelling Unit See below Unit
Taxable Public Property See below
The Maximum Special Tax for an Accessory Dwelling Unit shall be calculated as a percentage of the Maximum Special Tax for the primary Unit the ADU is accessory to, based on Building Square Footage. For example, if a primary Unit in Land Use Class Single Family Residential Detached Property of 2,000 BSF has an ADU of 800 BSF, the Maximum Special Tax for the ADU shall be Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 8 calculated by the following steps:

1. 800 BSF / 2,000 BSF = 0.40 or 40%

2. $600 Maximum Special Tax per Unit x 40% = $240 Maximum Special Tax for such ADU The Maximum Special Tax for Taxable Public Property shall be the same as the Maximum Special Tax for such Assessor’s Parcel as assigned based on the Land Use Class prior to the Assessor’s Parcel becoming Taxable Public Property.

On each July 1, commencing on July 1, 2024, the Maximum Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES
Commencing with Fiscal Year 2023/24 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Special Tax Requirement and shall levy the Special Tax until the amount of the Special Tax levied equals the Annual Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on each Assessor's Parcel at a rate up to 100% of the applicable Maximum Special Tax to satisfy the Annual Special Tax Requirement.

Second: If additional monies are needed to satisfy the Annual Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property at a rate up to 100% of the Maximum Special Tax for Taxable Public Property to satisfy the Annual Special Tax Requirement.

E. EXEMPTIONS

1. No Special Tax shall be levied on Property Owner Association Property and Public Property. In the case of Public Property and pursuant to Section 53317.3 of the Act, if property not otherwise exempt from the Special Tax levied pursuant to this chapter is acquired by a public entity through a negotiated transaction, or by gift or devise, the special tax shall, notwithstanding Section 53340, continue to be levied on the property acquired and shall be enforceable against the public entity that acquired the property. Public Property, that is not exempt from the Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Public Property. Taxable Public Property shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the sixth step in Section D above, at up to 100% of the applicable Maximum Special Tax for Taxable Public Property.

2. No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel(s) is classified as Welfare Exempt Property. In the case of Welfare Exempt Property and pursuant to Section 53340 of the Act, if CFD No. 2022-1 Bonds have been issued and such Assessor’s Parcel(s) was subject to the special tax prior to being granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, such Assessor’s Parcel(s) shall remain subject to the special tax and shall continue to be levied.

Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 9

3. No Special Tax shall be levied on any Assessor’s Parcel which would not normally receive a property tax bill from the County due to the very-low or zero assessed value of such property.

4. No Special Tax shall be levied on any Assessor’s Parcel that is the subject of a conservation easement, open space easement, agricultural conservation easement, etc, as described in Section 53312.8 of the Act.

5. No Special Tax shall be levied on Very Low-Income Property up to a total of $20,000 (stated in Fiscal Year 2023/24 dollars and increasing by 2% each July 1 thereafter). If the total Special Tax on all Very Low-Income Property exceeds $100,000 (stated in Fiscal Year 2023/24 dollars, and increasing by 2% each July 1 thereafter), the CFD Administrator shall proportionately reduce the amount of the discount from 100% to each Assessor’s Parcel of Very Low-Income Property until the aggregate discount equals $20,000 (stated in Fiscal Year 2023/24 dollars and increasing by 2% each July 1 thereafter). The Board of Trustees may elect to allow the aggregate total exemptions related to Very Low-Income Property to exceed $20,000 (stated in Fiscal Year 2023/24 dollars and increasing by 2% each July 1 thereafter) beginning in the Transition Year and any subsequent Fiscal Year or if funds from another source are made available to the CFD by the City or other party to fund additional exemptions.

F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct with respect to one or more specific Assessor’s Parcels. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Taxes theretofore levied on the Assessor’s Parcel(s). In addition, during the term of the appeal process, all Special Tax levied must be paid for the subject Assessor’s Parcel(s) prior to delinquency.

The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City requires the Special Tax to be modified or changed in favor of the property owner, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as once CFD No. 2022-1 Bonds have been issued such correction does not materially adversely affect the Item #8.1.

City of Calistoga
Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) Page 10 levy and collection of Special Taxes on any Assessor’s Parcel needed to repay the CFD No. 2022-1 Bonds.

In addition, the interpretation and application of any section of this document shall be at the CFD Administrator’s discretion.

H. MANNER OF COLLECTION
The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, that the CFD Administrator may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD No. 2022-1. The City may covenant to foreclose and may actually foreclose or cause an action for foreclosure to be prosecuted in respect of Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

K. TERM
The Special Tax shall be levied and collected as needed to fund the Annual Special Tax Requirement in perpetuity. However, no portion of the Special Tax shall be levied for Authorized Facilities after Fiscal Year 2084/85, which shall be the last Fiscal Year in which the Transition Event may occur: provided, however, that a Special Tax that was lawfully levied for Authorized Facilities in or before Fiscal Year 2084/85 and that remains delinquent may be collected in subsequent years.

Item #8.1.

RESOLUTION NO. 2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALISTOGA OF INTENTION TO

INCUR BONDED INDEBTEDNESS TO FINANCE THE ACQUISITION AND CONSTRUCTION

OF CERTAIN PUBLIC FACILITIES IN AND FOR THE CITY OF CALISTOGA COMMUNITY FACILITIES DISTRICT NO. 2022-1 (FAIRGROUNDS ACQUISITION AND MAINTENANCE) WHEREAS, the City of Calistoga (the “City”) has agreed to purchase the Napa County Fairgrounds from the County of Napa, conditioned on, among other things, the successful passage of a local revenue measure sufficient to generate the funds needed to pay the purchase price; and
WHEREAS, the City Council has this date adopted its Resolution of Intention of the City Council of the City of Calistoga to Form a Community Facilities District, and Levy a Special Tax in the City of Calistoga Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance) to Finance Public Services and the Acquisition and Construction of Certain Public Facilities in and for Such Community Facilities District (the “Resolution of Intention”), stating its intention to form the “City of Calistoga Community Facilities District No. 2022-1 (Fairgrounds Acquisition and Maintenance)” (the “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”), for the purpose of financing costs associated with the Napa County Fairgrounds acquisition and public improvements thereto (the “Authorized Facilities”) and public services related to the Authorized Facilities, all as further described and provided in that Resolution of Intention; and WHEREAS, under the Act, the City Council is authorized to call for an election on a measure to incur bonded indebtedness to fund the Authorized Facilities; and WHEREAS, the City Council estimates the amount required for the financing of the costs of the Authorized Facilities to be an amount not to exceed $50,000,000 and in order to finance the costs of the Authorized Facilities it is necessary to incur bonded indebtedness on behalf of the CFD in an amount not to exceed such amount.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

1. The City Council declares and finds that to finance the cost of the Authorized Facilities, as described in the Resolution of Intention, it is necessary to incur a bonded indebtedness.

2. The purpose for which the proposed bonded indebtedness is to be incurred is to provide the funds necessary to pay for the cost of the Authorized Facilities.

3. The maximum amount of proposed bonded indebtedness for the CFD is $50,000,000. Indebtedness subject to this limit shall only include indebtedness evidenced by bonds secured by the special tax levied in the CFD.

4. It is the intention of the City Council that any such bonds issued may be issued in multiple series and shall be made callable in accordance with the terms of the Act and as more specifically to be set forth in any resolution authorizing issuance of the bonds, and shall be issued in such series and bear interest payable semi-annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be Item #8.1.

2 authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof, on a series-by-series basis.

5. The financing the cost of Authorized Facilities with bonded indebtedness shall be subject to the approval of the qualified electors within the CFD at a special election. The qualified electors shall be the registered voters within the proposed CFD.

6. In the event any series of bonds issued under the authorization is refunded to produce savings meeting the requirement of Section 53362.5 of the Act, all or a portion of the savings achieved through the issuance of refunding bonds may be used to finance Authorized Facilities insofar as the savings component provides capacity for bonded indebtedness in excess of that being refunded, and such additional bonded indebtedness shall not reduce and may exceed the amount of bonded indebtedness authorized herein.

7. The City Council hereby sets Tuesday, December 6, 2022 at 6:00 p.m., at the Calistoga Community Center, located at 1307 Washington Street, Calistoga, California, as the time and place for a hearing by the City Council on the proposed bond issue. At that time and place any persons interested, including any persons owning property in the CFD, will be heard.

8. The City Clerk is hereby directed to cause notice of said public hearing to be given by one-time publication in a newspaper of general circulation circulated within the CFD.

The publication of said notice shall be completed at least 7 days before the date herein set for said public hearing. Such notice shall be substantially in the form specified in Section 53346 of the Act, with the form summarizing the provisions hereof hereby specifically approved.

9. This Resolution shall take effect from and after its adoption.

PASSED, APPROVED AND ADOPTED this 1st day of November 2022. I, MARNI RITTBURG, CITY CLERK OF THE CITY OF CALISTOGA, HEREBY CERTIFY the foregoing resolution was introduced and passed at a regular meeting of the Calistoga City Council by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
______________________________ ______________________________ Marni Rittburg, CMC, City Clerk Chris Canning, Mayor
Item #8.1.

Marni Rittbur
From:

Sent:

To:

Subject:

Deborah Testa
Monday, October 31 , 2022 6:19 PM
Public Comment
Public Comment on Item 8.1 for the 11/1/2022 City Council Meeting CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

To the Calistoga City Council,
Regarding Item 8.1 on the agenda for the city council meeting scheduled for 11/1/2022:

Something the consultant said during the first discussion of the proposed CFD gave me the impression that the CFD election may be non-standard in some way. Can you comment on whether this election will be administered in a way that is different from other elections in Napa County? In particular:
• Will the Napa County Office of Elections administer the election? • Will bar-coded ballots be mailed from and returned to that office, and will returned ballots be subject to the same processing protocols and signature scrutiny as usual? • Who will count the votes?
• Will the certification of the results be different in any way from the results of other elections? Thank you,
Deborah Testa
-
Calistoga, CA 94515
1 Item #8.1.

Additio~ W. · · · Meeting of ' 9-oItem No. Distributed e a:na ," J ~ /r November 1, 2022
Mayor Canning
Vice Mayor lrais Lopez-Ortega
Council Member Williams
Council Member Krause
Council Member Gift
Re: Napa County Fairgrounds
Purchase price of approximately $15,000,000.

Additional renovating expense~ $9,000,000
Maintenance and operation~ $4,000,000
Who will pay for this? We who live within the city limits. Did we know how this would impact us financially before the deal was stuck? No. I ask, would you buy a house and move in, or buy a car and drive it off the lot before you knew what that house or car was going to cost you? If you answer yes, I would suggest you are either a fool or live a very rarified existence.

It seems to me that this whole procedure has been handled backwards. And the commitment premature.

I appreciate all of the time and energy Mayor Canning and Councilman Williams have invested getting this real estate deal to this point. And, initially, I was in favor of the City of Calistoga purchasing the fairground property. But given all of the conditions of this acquisition, all of the unanswered questions, I can no longer say I am comfortable going forward with this purchase.

An old adage: The devil is in the details!
Thank you,
Jeri Hansen
f os+.e.J.

Item #8.1.