Agenda, first session — Calistoga City Council, August 1, 2023 (part 1 of 6)

Mayor
Donald Williams
Vice Mayor
Irais Lopez-Ortega
Councilmembers
Lisa M. Gift
Scott Cooper
Kevin Eisenberg
AGENDA
City Council
Tuesday, August 1, 2023 - 6:00 PM
Hybrid

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.

Please participate in the meeting by observing or listening to the meeting in one of the following ways:

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 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. To comment during a virtual meeting (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-Hand-In-Webinar.

WRITTEN COMMENTS: Alternatively, you may provide public comment on any item on the agenda or any item 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. Comments received by 2:00 p.m. on the day of the meeting will be posted online with the agenda packet and included in the record but will not be read aloud. Comments received after 2:00 p.m. will be made part of the written record but will not be read verbally at the meeting. 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/PLEDGE OF ALLEGIANCE AND OPTIONAL

PATRIOTIC ACTIVITY

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.

3.1. 8.1.23 Public Comment - 33 5 - 39

4. ADOPTION OF MEETING AGENDA

5. CITY MANAGER’S REPORT

6. PROCLAMATIONS/PRESENTATIONS/ AWARDS

7. CONSENT CALENDAR

7.1. Consider adopting a Resolution
Recommended Action: Adopt the attached resolution.

Staff Report - Consultant Services Agreement: M-Group On-Call Senior Planning Services - Pdf
40 - 56

7.2. Consider adopting a Resolution authorizing the City Manager to execute a one-year professional services agreement with UpValley Family Centers to provide immigration-related services, senior services, and community and health and education services, in an amount not to exceed $100,000 over the course of the fiscal year.

Recommended Action: Consider adopting the resolution.

Staff Report - Agreement with UpValley Family Centers for ImmigrationRelated Services, Senior Services, and Community Health and Education Services - Pdf
57 - 75

7.3. Receive the City's Annual Financial Report for the Fiscal Year ending June 30, 2022
Recommended Action: Receive the City's Annual Financial Report for the Fiscal Year ending June 30, 2022
Staff Report - Annual Financial Report for the Fiscal Year ending June 30, 2022 - Pdf
76 - 140

7.4. Consider adopting a Resolution authorizing the City Manager to execute an agreement for consultant services with Calistoga Tribune and The Press Democrat for publication of legal advertisements in an amount not to exceed $15,000 in total for Fiscal Year 2023-24.

Recommended Action: Consider Adopting Resolution
Staff Report - Agreement with Calistoga Tribune and Press Democrat for Publication of Legal Advertisements for Fiscal Year 2023-24 - Pdf 141 - 212

8. PUBLIC HEARING

8.1. Consideration of an ordinance amending the Calistoga Municipal Code (CMC) to include new regulations governing Mobile Food Vending (Food Trucks) within the City of Calistoga (City).

Recommended Action: Conduct a Public Hearing and introduce the attached draft Ordinance and waive its first reading.

Staff Report - Municipal Code Amendments Regulating Mobile Food Vending - Pdf
213 - 227

8.2. Continued from July 18, 2023 regular City Council meeting, this item is the adoption of a Mitigated Negative Declaration and the 2023-2031 Housing Element Update to the City’s General Plan and direction to staff 228 - 701

Page 2 of 701 ends

to submit to the California Department of Housing and Community Development (HCD).

Recommended Action:

Consider adopting the attached two Resolutions:
• Attachment 1. Adopting a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program (Attachment 1, Exhibit A).
• Attachment 2. Adopting a General Plan Amendment to repeal the 2015-2023 Housing Element and adopting the Housing Element of the General Plan for the period of 2023-2031 with findings that it substantially complies with the State Housing Element Law (Attachment 2, Exhibit A).

Staff Report - Adoption of CEQA Mitigated Negative Declaration and General Plan Amendment (GPA 2023-1) for the 2023-2031 Housing Element Update - Pdf

9. GENERAL GOVERNMENT

10. COUNCIL REPORTS

11. 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.

SUPPLEMENTAL MATERIAL RECEIVED AFTER THE POSTING OF THE AGENDA:

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, such writings or documents will be made available on the City’s website and 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.

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, speech-to-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 ____, 2023, by 4:30 p.m.

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Yudiana Galvan, Interim City Clerk

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Marni Rittburg
From:

Sent:

To:

Subject:

Morning, Yudi !
Jeff Mitchem
Tuesday, August 1, 2023 7:48 AM
Marni Rittburg
FW: [email protected]
Public Comment for Item 8.1. Please enter into the record. Thanks! From: Magali Garcia<
Jeff Mitchem
Planning & Building Director
City of Calistoga
1232 Washington Street
Calistoga, CA 94515
0: 707.942.2830
C: 971.400.1840
[email protected]
Sent: Monday, July 31, 2023 9:21 PM
To: Jeff Mitchem·
Subject: pu bl [email protected] fistoga. ca. us
Addi1iona~ riti11gs
Meeting of 'n / I / 2.,?,
Item No . ..,_-,).__. Distributed on Dais ~ ~e,,tCAUTION: 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.

July 31st, 2023
To Calistoga City Council,
I am writing to express my strong support for the proposed ordinance to allow mobile food vendors in Calistoga. As a resident, I believe that embracing mobile food vendors will benefit our city in numerous ways.

Mobile food vendors allow our very own community members to provide a diverse and affordable dining options to our residents and visitors. By allowing mobile food vendors to operate in Calistoga, we are able to extend entrepreneurial opportunities to our very own residents, as well providing our locals with a quick and affordable meal.

In order to ensure the success of mobile food vendors I urge you to modify their operational hours from 4 hours per day, to a minimum of 8 hours a day in public property. Allowing only 4 hours of operations on public property, including set up and clean up, does not allow a business to be sustainable. Mobile food vendors put in a lot of work to provide this service and they deserve a fair amount of time to do so.

Thank you for your consideration.
1 Item #3.1.

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Best,
Magali
A Calistoga Community Member
2 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Morning, Yudi!
Jeff Mitchem
Tuesday, August 1, 2023 7:49 AM
Marni Rittburg
FW: Support of Food trucks in Calistoga
Public Comment for Item 8.1. Please enter into the record. Thanks! From: Hector Avina
Jeff Mitchem
Planning & Building Director
City of Calistoga
1232 Washington Street
Calistoga, CA 94515
o: 707.942.2830
C: 971.400.1840
Sent: Monday, July 31, 2023 9:29 PM
To: Jeff Mitchem <[email protected]>
Subject: Support of Food trucks in Calistoga
Additiona<?Writjngs L
Meetingof JI ~ "2,7
ltem No. ~ ~ ;-f-- Distributed on s :.fL C ~ ;.

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.

Mobile food vendors allow our very own community members to provide a diverse and affordable dining options to our residents and visitors. By allmving mobile food vendors to operate in Calistoga, we are able to extend entrepreneurial opportunities to our very own residents, as well providing our locals with a quick and affordable meal.

Page 7 of 701 ends

Thank you for your consideration.

Best, Hector Contreras
A Calistoga Resident
Sent from my iPhone
2 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Morning, Yudi!
Jeff Mitchem
Tuesday, August 1, 2023 7:50 AM
Marni Rittburg
FW: Food Vendors
Public Comment for Item 8.1. Please enter into the record. Thanks! From: ignacio mendoza
Sent: Monday, Jul 31 2
To: Jeff Mitchem
Subject: Food Vendors
Jeff Mitchem
Planning & Building Director
City of Calistoga
1232 Washington Street
Calistoga, CA 94515
O: 707.942.2830
Additio~ ·ti Meeti~ of ~
Item No,
Distributed on s , fCAUTION: 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 Calistoga City Council,
I am writing to express my strong support for the proposed ordinance to allow mobile food vendors in Calistoga. As a resident, I believe that embracing mobile food vendors will benefit our city in numerous ways.

Thank you for your consideration.

Best,
A Calistoga Resident
1 Item #3.1.

Page 9 of 701 ends

Marni Rittbur
From:

Sent:

To:

Subject:

Morning, Yudi!
Jeff Mitchem
Tuesday, August 1, 2023 7:50 AM
Marni Rittburg
FW: Taco feliz
Public Comment for Item 8.1. Please enter into the record. Thanks! From: lzell Hernandez
Jeff Mitchem
Planning & Building Director
City of Calistoga
1232 Washington Street
Calistoga, CA 94515
o: 707.942.2830
Sent: Monday, July 31, 2023 10:17 PM
To: Jeff Mitchem
Subject: Taco feliz
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.

Thank you for your consideration.

Best,
A Calistoga Resident
Sent from my iPhone
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Gisell Escobedo
Monday, July 31, 2023 12:42 PM
Public Comment
Support of Food Trucks in Calistoga
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 Calistoga City Council,
I hope this email finds you well. I am writing to express my strong support for the proposed amendment to allow food trucks in Calistoga. As a resident and active member of the community, I believe that embracing food trucks will benefit our city in numerous ways.

Food trucks have proven to be a popular and innovative way to provide diverse and affordable dining options to residents and visitors alike. By allowing food trucks to operate in Calistoga we are able to offer something for every palate, time, and budget. Food trucks have proven to provide our local workers and residents a quick meal when time is limited.

I understand that there might be concerns related to safety, cleanliness, and zoning issues, but these can be addressed through well-crafted regulations and guidelines. Many other cities have successfully integrated food trucks into their communities, and I am confident that Calistoga can do the same.

Sincerely,
Local Calistoga Resident
Item #3.1.

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Marni Rittburg
From: Gisell Escobedo
Sent: Monday, July 31, 2023 12:52 PM
To: Public Comment
Subject: Re: Support of Food Trucks in Calistoga
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender aod know the content is safe.

I'd also like to share the opinion that limiting food trucks to 4 hours per day, including set up and clean up, is unacceptable. Food truck vendors put in a lot of work to provide this service and they deserve a fair amount of time to do so.

All the best,
Local resident
All the best,
Gisell Escobedo
On Jul 31, 2023, at 12:42 PM, Gisell Escobedo
To Calistoga City Council,
I hope this email finds you well. I am writing to express my strong support for the proposed amendment to allow food trucks in Calistoga. As a resident and active member of the community, I believe that embracing food trucks will benefit our city in numerous ways.

Sincerely,
Local Calistoga Resident
1 Item #3.1.

Page 12 of 701 ends

Marni Rittburg
From:

Sent:

To:

Subject:

Nena Perez
Monday, July 31, 2023 11:05 PM
Public Comment
Food Truck Ordinance
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.

Thank you for your consideration.

Best,
A Calistoga Resident
Sent from my iPhone
Sent from my iPhone
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Maria Perez
Monday, July 31, 2023 11 :04 PM
Public Comment
Food Truck Ordinance
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.

Mobile food vendors allow our very own community members to provide a dlverse and affordable dining options to our residents and visitors. By allowing mobile food vendors to operate in Calistoga, we are able to extend entrepreneurial opportunities to our very own residents, as well providing our locals with a quick and affordable meal.

Thank you for your consideration.

Best,
A Calistoga Resident
Sent from my iPhone
1 Item #3.1.

Page 14 of 701 ends

Marni Rittburg
From:

Sent:

To:

Cc:

Subject:

Maria Escobedo
Monday, July 31, 2023 9:33 PM
Jeff Mitchem
Public Comment
Support of Food Vendors in Calistoga
,:uJditio~ ·; Meeting of ~
Item No.

Distributed on rus W,t~
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.

In order to ensure the success of mobile food vendors I urge you to modify their operational hours from 4 hours per day, to a minimum of 8 hours a day in public property. Allo"Mng only 4 hours of operations on public property, including set up and clean up, does not allow a business to be sustainable. Mobile food vendors put in a lot of work to provide this service and they deserve a fair amount of time to do so.

Thank you for your consideration.

Best,
Maria Escobedo
A Calistoga Resident
Item #3.1.

Page 15 of 701 ends

Marni Rittburg
From:

Sent:

To:

Cc:

Subject:

Yesenia Carrillo
Monday, July 31,
Jeff Mitchem
Public Comment
Support of Mobile Food Vendors in Calistoga
Meeting
Distributedon
... Item
of . No. ~~ ais ICA--f'
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.

In order to ensure the success of mobile food vendors I urge you to modify their operational hours from 4 hoursper day, to a minimum of 8 hours a day in public property. Allowing only 4 hours of operations on public property, including set up and clean up, does not allow a business to be sustainable. Mobile food vendors put in a lot of work to provide this service and they deserve a fair amount of time to do so.

Thank you for your consideration.

Best,
Yesenia Carrillo I A Calistoga Resident
1 Item #3.1.

Page 16 of 701 ends

Marni Rittburg
From:

Sent:

To:

Cc:

Subject:

Cecilia C <
Monday, July 31, 2023 10:20 PM
Jeff Mitchem
Public Comment
Support of Mobile Food Vendors in Calistoga
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.

Cecilia Alvarado
July 31st, 2023
To Calistoga City Council,
I am writing to express my strong support for the proposed ordinance to allow mobile food vendors in Calistoga. As a resident, I believe that embracing mobile food vendors will benefit our city in numerous ways.

Thank you for your consideration.

Best,
Cecilia Alvarado
A Calistoga Resident
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Cc:

Subject:
griselda ochoa
Monday, July 31, 2023 10:32 PM
Jeff Mitchem
Public Comment
Support of mobile food vendors
Meenng of ✓ -_,, --~
Item No. ~]:;;,, Distributed on ais --1-
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.

Thank you for your consideration.

Best,
A Calistoga Resident
Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Cc:

Subject:
edelin hernandez <
Monday, July 31, 2023 10:36 PM
Jeff Mitchem
Public Comment
Mobile Food Vendors
Meeting of Additi~ ·n
Item No. Distributed on 1s j--
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.

Thank you for your consideration.

Best,
A Calistoga Resident
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Cc:

Subject:

Victor Perez
Monday, July 31, 2023 10:57 PM
Jeff Mitchem
Public Comment
Community Vendor Support
Additional WJ tings Meeting of 'o_ I / L ~
Item No. ~ (d Distributed on ais ff,:.( ~
~AUTION: 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.

Thank you for your consideration.

Best,
A Calistoga Resident
Victor R Perez Ayala
1 Item #3.1.

Page 20 of 701 ends

Marni Rittburg
From: Lizbet Escobedo
Sent: Tuesday, August 1, 2023 8:00 AM
To: Jeff Mitchem; Public Comment
Subject: Support of Mobile Food Vendors in Calistoga
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.

Thank you for your consideration.

Best,
Lizbet Escobedo
Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Lolita Lopez Vargas <
Tuesday, August 1, 2023 8:26 AM
Jeff Mitchem; Public Comment
Support of Mobile Food Vendors in Calistoga
AdditiO,W Writings
Meeting of l24 (. I~
Item. No. btR L
Distributed on a1s BA //;. 3
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.

Thank you for your consideration.

Best,
Maria Lopez
1 Item #3.1.

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Marni Rittburg
AdditiO!l!ll. '2 . Meeting of '6 rr b 3
Item No. ~ , . 1 •
Distributed on ums ~
From: giselle Tobon _
Sent: Tuesday, August 1, 2023 8:31 AM
To: Public Comment
Subject: Support of Mobile Food Vendors in Calistoga
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.

Thank you for your consideration.

Best,
Giselle Tobon
A Calistoga Resident
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Cc:

Subject:
pablo lopez
Tuesday, August 1, 2023 9:09 AM
Jeff Mitchem
Public Comment
Supporting mobile food vendors
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.

Thank you for your consideration.

Best,
A Calistoga Resident
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Marlen Herrera
Tuesday, August 1, 2023 9:16 AM
Jeff Mitchem; Public Comment
They Need More Then 4 Hours
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.

Thank you for your consideration.

Best, Lesly Perez
A Calistoga Resident
Sent from my iPhone
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Cristel Gaona
Tuesday, August 1. 2023 9:27 AM
Jeff Mitchem; Public Comment
They need more then 4 hours
Meetmg ~dditionsiJ ~ ri. of e l "3
o· ,ltemNo.

IStributed on a1s -flA-<c,k<._A.-
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.

Thank you for your consideration.

Best,
Criste! Gaona
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Marlen Herrera
Tuesday, August 1, 2023 9:27 AM
Jeff Mitchem; Public Comment
They need more then 4 hours
Additi0nlll-WQtin
Meetingof·~ 'O'
Item No.

Distributed on a1s j(!?, , Jt,.,_-fCAUTION: This email originated from outside of the organization. Do not click !inks or open attachments unless you recognize the sender and know the content is safe.

August 1st, 2023
To Calistoga City Council,
I am writing to express my strong support for the proposed ordinance to allow mobile food vendors in Calistoga. As a resident, I believe that embracing mobile food vendors will benefit our city in numerous ways.

Thank you for your consideration.

Best, Lesly Perez
A Calistoga Resident
Sent from my iPhone
1 Item #3.1.

Page 27 of 701 ends

Marni Rittburg
From:

Sent:

To:

Subject:

Cristina Avina
Tuesday, August 1, 2023 9:39 AM
Jeff Mitchem; Public Comment
Good truck ordinance
Additional Writi ~
Meeting of Q./ i /7,, ~ ltemNo. ~ '7-
Dislributed on ais "2A (_ /l .1 f;
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.

Thank you for your consideration.

Best,
A Calistoga Resident
Item #3.1.

Page 28 of 701 ends

Marni Rittburg
From:

Sent:

To:

Subject:

Karla Urzua
Tuesday, August 1, 2023 10:07 AM
Public Comment
Support of Food Vendors in Calistoga
Additional Writin
Meetingof q,_ fi / L3
ItemNo.·~ Distributed oaai~f.4 C ~
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.

Thank you for your consideration.

Best,
Karla Urzua
A Calistoga Resident
Sent from my iPhone
1 Item #3.1.

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August 1, 2023
To Council Members and City Manager
Mobile Food Vending Ordinance
Agenda item 8.1
Additional Fritings
Meeting of ~~I / 2--3>
UemNo. ~ Dislributedon ~s Y2IH ,lt4-JAfter reading the Municipal Code Amendments Regulating Mobile Food Vending, I would implore you to extend the hours of operation to six.

Four hours to set up, sell and cleanup is highly restrictive on the food truck model of sales.

You are effectively confining and severely limiting these businesses' hours of operation and essentially allowing only one traditional meal service time. Serving breakfast and lunch, or lunch and dinner, would be impossible with this imposed time restraint.

Sincerely,
Donna Higgins
Item #3.1.

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Marni Rittburg
From;
Sent:

To;
Subject
Julie Baccelli
Tuesday, August 1, 2023 11 :02 AM
Public Comment
Food Trucks.

Additional Writings
Meetingof ~ / I /l--;J ltemNo. · 5
Distributed on Dais $4 L. l~
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.

Sent from my iPhonelm asking you to please allow food trucks in Calistoga. They are so convenient as local employees on their lunch 1/2 break can access food quickly and inexpensively. It will be a nice addition to local dining. Thank you. Carol Fellion 1 Item #3.1.

Page 31 of 701 ends

Marni Rittburg
From:

Sent:

To:

Cc;
Subject:

Ricardo Carrillo
Tuesday, August 1, 2023 11 :46 AM
Jeff Mitchem
Public Comment
Support for Mobile Food Vendors in Calistoga
ddi · nal Writi°f
M~o~
0 °Dd I Z-3
Item No. z--1 1 _L-- D.istributed on 0: it7/.,,C U,,.,
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.

August 1, 2023
To Calistoga City Council,
1 am writing to express my strong support for the proposed ordinance to allow mobile food vendors in Calistoga. As a resident, I believe that embracing mobile food vendors will benefit our city in numerous ways.

Thank you for your consideration.

Best,
Ricardo Carrillo
A Calistoga Resident
1 Item #3.1.

Page 32 of 701 ends

Support of Mobile Food Vend ...

Send to:

Email:

Cc: [email protected]
July 31st, 2023
To Calistoga City Council,
Additional ~-\ 'b Meeting of
ltem No. 1U,, y Oistrt"buted on
I am writing to express my strong support for the proposed ordinance to allow mobile food vendors in Calistoga. As a resident, I believe that embracing mobile food vendors will benefit our city in numerous ways.

Mobile food vendors allow our very own community
members to provide a diverse and affordable dining
options to our residents and visitors. By allowing mobile food vendors to operate in Calistoga, we are able to
extend entrepreneurial opportunities to our very own
residents, as well providing our locals with a quick and affordable meal.

In order to ensure the success of mobile food vendors I urge you to modify their operational hours from 4 hours per day, to a minimum of 8 hours a day in public property.

Allowing only 4 hours of operations on public property, including set up and clean up, does not allow a business to be sustainable. Mobile food vendors put in a lot of work to provide this service and they deserve a fair amount of time to do so.

Thank you for your consideration.

Best,
A Calistoga Resident
Item #3.1.

Page 33 of 701 ends

Marni Rittburg
From:

Sent:

To:

Subject:

Rafael Sanchez
Tuesday, August 1, 2023 11:51 AM
Public Comment; Jeff Mitchem
More then 4 hours
~ti~ Wtjling7s ..., '2..

Meetmgof ½/ \ v/
ItemNo. '.Z:~
Distributed on Dais A l-1 t.c..,{'
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.

Thank you for your consideration.

Best,
Rafael Sanchez
Sent from my i Phone
Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Jeff Mitchem
Wednesday, July 26, 2023 1 :45 PM
Marni Rittburg
FW: Food Truck Ordinance
Yudi, Please add as public comment for Council next week. Thanks! From: Ron Goldin
Jeff Mitchem
Planning & Building Director
City of Calistoga
1232 Washington Street
Calistoga, CA 94515
0: 707.942.2830
C: 971.400.1840
Sent: Wednesday, July 26, 2023 1:38 PM
To: Jeff Mitchem <[email protected]>
Subject: Fwd: Food Truck Ordinance
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.

Hi Jeff,
I have reviewed the staff report on the Food Truck Ordinance. My concern is the possibility of one property having more than one food truck on the premises. I am not in favor of having a food truck center similar to the one in the Roseland area of Santa Rosa.

I suggest the Code stipulate that 1 food truck be allowed on one property.

Thank you,
Ron Goldin
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Cc:

Subject:

Sean F ·
Tuesday, August 1, 2023 12:23 PM
Jeff Mitchem
Public Comment
Support of Mobile Food Vendors in Calistoga
Additional Writings
Meeting of "O "n' J Z.3
Item No. Di
Distributed on \is )'?A Uwr
CAUTfON: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.

Thank you for your consideration.

Best,
Sean Fennen
1 Item #3.1.

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Marni Rittburg
From:

Sent:

To:

Subject:

Litzy Infante
Tuesday, August 1, 2023 12:26 PM
Jeff Mitchem; Public Comment
Support of Mobile Food Vendors in Calistoga
AdditiOllal W 'ti
Meeting of tf:> / ,
0 , 1---:S . _Item No. ~ I
Dtstributed on "Dais r1t, ~ J- C, 1--t-1
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.

In order to ensure tne success of mobile food vendors I urge you to modify their operational hours from 4 hours per day, to a minimum of 8 hours a day in public property. Allowing only 4 hours of operations on public property, including set up and clean up, does not allow a business to be sustainable. Mobile food vendors put in a lot of work to provide this service and they deserve a fair amount of time to do so.

Thank you for your consideration.

Best,
Litzy Infante
1 Item #3.1.

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Item #3.1.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Jeff Mitchem, Planning & Building Director
Meeting: City Council - Aug 01 2023
Subject: Consultant Services Agreement: M-Group On-Call Senior Planning Services DESCRIPTION:

Consultant Services Agreement: M-Group On-Call Senior Planning Services RECOMMENDATION:

Consider Adopting a Resolution
BACKGROUND/SUMMARY:

In September 2020, the City entered into a professional services agreement with M-Group to provide on-call planning services in support of the Planning Division. The City authorized amendments in FY 2021-22 and FY 2022-23 for a not-to-exceed total of $33,500 for non-cost-recovery services.

Due to additional anticipated costs related to current planning (development review) and long-range planning (City-initiated projects) services, both parties agree it is necessary to negotiate a new contract and not-to-exceed amount of $50,000 for fiscal year 2023-24.

Under this contract, M-Group will provide on-call senior level professional planning services for development and environmental review projects assigned by the City and under the City’s cost recovery agreement with developers. More specifically, these services will generally consist of, but not limited to, the following:
• Review development project materials and environmental technical studies • Writing of reports, correspondence, findings, environmental documents, mitigation measures, and conditions of approval
• Attend meetings with applicants and city staff
• Complete research and make recommendations
• Conduct site inspections
• Attend and present at public meetings such as Planning Commission, and City Council Additionally, M-Group will provide professional planning services to assist the City with advanced planning and special projects as requested by the City and billed to the City as base level services.

These services may include, but are not limited to, the following:
• City initiated zoning updates to implement the 2023-31 Housing Element • Environmental review for CEQA compliance
CEQA STATUS:

Item #7.1.

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This action does not meet the definition of a “project” under the California Environmental Quality Act (CEQA).

FINANCIAL IMPACT:

The costs associated with processing planning permit applications services will be recovered through Developer Deposit Account fees. Other City-initiated services will be covered by Planning & Building Department’s FY23/24 budget (01-4115-4402), which includes $50,000 for M-Group contract services ATTACHMENT(S):

ATTCH 1 CC Resolution
ATTCH 2 - Consultant Services Agreement
APPROVAL(S):

Nitish Sharma Approved - Jul 23 2023
Laura Snideman, City Manager Approved - Jul 25 2023
Yudiana Galvan, Interim City Clerk Approved - Jul 25 2023 Item #7.1.

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ATTACHMENT 1
RESOLUTION NO. 2023-XXX
Authorizing Agreement No. XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALISTOGA (CITY)

AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH M-GROUP, INC. (CONSULTANT) FOR ON-CALL

PLANNING SERVICES
WHEREAS, the City desires to utilize a professional consultant for senior level planning services for the Planning & Building Department for non-cost-recovery items (City-initiated projects) and cost-recovery items (development review); and WHEREAS, Consultant is a regional company that has provided these services to City for many years and has the ability to expand services on an as-needed basis, including for complex city-initiated, and development and environmental review projects.

WHEREAS, Consultant is currently providing these services in the City, and the proximity of their personnel to Calistoga will allow the City to efficiently cover its needs.

WHEREAS, the costs associated with the provision of consulting services will be recovered in part through the revenue collected in conjunction with the processing of development review applications (Developer Deposit Accounts), and the Department’s FY 32-24 budget for contract services (01-4125-4402) not to exceed $50,000 for noncost-recovery items.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Calistoga hereby authorizes the City Manager to enter into a professional services agreement with Consultant for the provision of senior level planning services.

PASSED, APPROVED AND ADOPTED this 1
st day of August 2023. I,

YUDIANA GALVAN, INTERIM 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:
___________________________
Donald Williams, Mayor
ATTEST:
_________________________
Yudiana Galvan, Interim City Clerk
Item #7.1.

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OAK #4890-2776-3737v1 (Rev. 9/2021)
ATTACHMENT 2

AGREEMENT FOR CONSULTANT SERVICES
This Agreement for Consultant Services (the "Agreement") is made and entered into this 1 st day of August, 2023 by and between THE CITY OF CALISTOGA, a municipal corporation (hereinafter referred to as "CITY") and M-Group a corporation, (hereinafter referred to as "CONSULTANT"). CITY and CONSULTANT may be referred to individually as “Party” and collectively as the “Parties.”

RECITALS
WHEREAS, CITY requires support and assistance in processing special planning projects including the handling of certain entitlement applications for the Planning & Building Department, long-range and environmental review services in connection with the Planning & Building Department.

WHEREAS, CONSULTANT is qualified to perform such services; and WHEREAS, CONSULTANT has agreed to provide CITY with such services on the terms and conditions set forth herein.

NOW, THEREFORE, for the considerations hereinafter set forth, CONSULTANT and CITY agree as follows:

ARTICLE 1 - SCOPE OF SERVICES

1.1. Scope of Work. CONSULTANT agrees to furnish the services set forth in Exhibit A, Scope of Work, which is attached hereto and incorporated herein (the "Services").

1.2. Compliance with Law. The Services shall be performed in accordance with all applicable federal, state and local laws, ordinances, rules, regulations and orders.

1.3. Time is of the Essence. CONSULTANT agrees to diligently prosecute the Services. In the performance of this Agreement, time is of the essence.

1.4. Professional Competence. CONSULTANT represents that it has the professional skills necessary to perform the Services and that it will perform the Services in a skillful and professional manner. CONSULTANT represents that it has all the necessary licenses to perform the Services and shall maintain them throughout the term of this Agreement.

CONSULTANT agrees that the Services shall be performed in the manner and according to the standards observed by a competent practitioner of the profession in which CONSULTANT is engaged, in the same or similar geographical area in which CONSULTANT practices its profession, and will prepare all work products required by this Agreement in accordance with such standards. CITY and CONSULTANT agree that CONSULTANT is in responsible charge of the Services and CITY shall have no control over the method or means of performance of the Services. Acceptance by CITY of the Item #7.1.

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OAK #4890-2776-373v1 (Rev. 9/2021)
Services does not operate as a release of CONSULTANT from professional responsibility for the Services performed.

1.5. Independent Contractor. CONSULTANT is an independent contractor and not an employee of CITY. CONSULTANT expressly warrants that it will not represent that it is an employee of CITY. Persons employed or utilized by CONSULTANT in the performance of the Services will not be employees or agents of CITY. CONSULTANT is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

1.6. Confidentiality. CONSULTANT agrees to maintain in confidence and not disclose to any person, firm, governmental entity, or corporation, without CITY's prior written consent, any trade secret or confidential information, knowledge or data relating to the products, process, or operation of CITY. CONSULTANT further agrees to maintain in confidence and not to disclose to any person, firm, governmental entity, or corporation any data, information, technology, or material developed or obtained by CONSULTANT during the performance of the Services. The covenants contained in this Section 1.6 shall survive the termination of this Agreement for whatever cause.

1.7. Ownership of Material. Any reports and other material prepared by or on behalf of CONSULTANT under this Agreement (collectively, the "Documents") shall be and remain the property of CITY. All Documents not already provided to CITY shall be delivered to CITY on the date of termination of this Agreement for any reason. The Documents may be used by CITY and its agents, employees, representatives, and assigns, in whole or in part, or in modified form, for all purposes CITY may deem appropriate without further employment of or payment of any compensation to CONSULTANT.

1.8. Documentation. CONSULTANT shall keep and maintain full and complete documentation and accounting records, employee time sheets, and correspondence pertaining to the performance of the Services, and CONSULTANT shall make such documents available for review and/or audit by CITY and CITY's representatives at all reasonable times for at least four years after the termination of this Agreement or completion of the Services.

1.9. Testimony. CONSULTANT agrees to testify at CITY's request if litigation is brought against CITY in connection with the Services. Unless the action is brought by CONSULTANT or is based upon CONSULTANT's negligence, CITY will compensate CONSULTANT for the preparation and the testimony at CONSULTANT's standard hourly rates.

ARTICLE 2 - COMPENSATION

2.1. Compensation. Compensation for the Services shall be in accordance with Exhibit B, Compensation, attached hereto and incorporated herein. It is agreed that the compensation for the Services shall not exceed $50,000 ("Cost Ceiling") in non-costrecovery items for FY 23-34.

Item #7.1.

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OAK #4890-2776-373v1 (Rev. 9/2021)

2.2. Invoices. CONSULTANT shall submit monthly invoices in a form satisfactory to CITY on or before the tenth day of each month for Services provided during the preceding month. CONSULTANT shall submit time and cost records as necessary to substantiate performance of the Services. Within 35 days after receipt of each such invoice, CITY shall verify the accuracy of the invoice, correct the charges where appropriate and as discussed and mutually agreed with CONSULTANT, and make payment to CONSULTANT in an amount equal to the amount of such invoice, as verified or corrected by CITY. No payment hereunder shall be construed as evidence of acceptance of any of CONSULTANT's work. CITY reserves the right to withhold payment from CONSULTANT on account of Services not performed satisfactorily, delays in CONSULTANT's performance of Services, or other defaults hereunder. CONSULTANT shall not stop or delay performance of the Services under this Agreement on account of payment disputes with CITY.

2.3. Status Reports. Together with each monthly invoice, CONSULTANT shall submit a status report detailing the amount expended on the Services to that date and the remaining amount to be expended before the Cost Ceiling is reached. CONSULTANT shall notify CITY in writing when payments have reached 90 percent of the Cost Ceiling.

2.4. Withholding. In lieu of holding retention, CITY shall withhold CONSULTANT's final payment until the Services are complete and CITY has received all Documents.

CONSULTANT shall diligently continue and complete performance of the Services if the Services are not complete at the time CONSULTANT has performed services up to the Cost Ceiling.

ARTICLE 3 - TIME OF PERFORMANCE

3.1. Effective Date. This Agreement shall become effective upon execution of the second signature and shall remain in full force and effect until the Services are completed (the "Term"). CONSULTANT agrees to complete all services by July 31, 2024.

3.2. Termination. This Agreement may be terminated at any time by CITY upon written notice to CONSULTANT.

3.3. Final Payment. CONSULTANT shall be entitled to compensation for Services performed up to the time of such termination, it being understood that any payments are full compensation for the Services rendered under this Agreement.

3.4. Other Remedies. Nothing in this Article 3 shall be deemed to limit the respective rights of the parties to terminate this Agreement for cause or otherwise to exercise any rights or pursue any remedies which may accrue to them.

ARTICLE 4 - DESIGNATED CONTACTS

4.1. CITY Contact. CITY designates Jeff Mitchem, its Planning & Building Director, as its contact who shall be responsible for administering and interpreting the terms and conditions of this Agreement, for matters relating to CONSULTANT's performance under this Agreement, and for liaison and coordination between CITY and Item #7.1.

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CONSULTANT. In the event CITY wishes to make a change in CITY's representative, CITY will notify CONSULTANT of the change in writing.

4.2. CONSULTANT Contact. CONSULTANT designates Olivia Ervin as its contact, who shall have immediate responsibility for the performance of the Services and for all matters relating to performance under this Agreement. Any change in CONSULTANT's designated contact shall be subject to written approval by CITY.

ARTICLE 5 - INDEMNIFICATION AND INSURANCE

5.1. Indemnification. CONSULTANT shall, to the fullest extent allowed by law, with respect to claims, liability, loss, damage, costs, or expenses, including reasonable attorney's and expert witness fees, awards, fines, penalties, or judgments, arising out of or relating to the Services (collectively "Claims"), defend, indemnify, and hold harmless CITY, its Officials, officers, employees and agents (the "CITY Parties"), except to the extent the Claims are attributable to CITY Parties' gross negligence or willful misconduct. CONSULTANT shall defend the CITY Parties as required by California Civil Code Section 2778, and with counsel reasonably acceptable to those parties.

CONSULTANT shall have no right to seek reimbursement from the CITY Parties for the costs of defense.

If CONSULTANT is a “design professional,” as defined in California Civil Code Section 2782.8(c), CONSULTANT shall indemnify, defend, and hold the Indemnitees harmless against Liability only to the extent such Liability arises out of, pertains to, or relates to CONSULTANT’s negligence, recklessness, or willful misconduct. In such an event, the cost to defend charged to CONSULTANT shall not exceed CONSULTANT’s proportionate percentage of fault.

The obligations contained in this Section 5.1 shall survive the termination of this Agreement for whatever cause for the full period of time allowed by law and shall not in any way be limited by the insurance requirements of this Agreement.

5.2. Health and Safety. CONSULTANT may perform part of the Services at sites which contain unknown working conditions and contaminated materials. CONSULTANT shall be solely responsible for the health and safety of CONSULTANT's employees during the performance of the Services.

5.3. Insurance. CONSULTANT and all of CONSULTANTS employees, subcontractors, consultants and other agency shall procure, provide and maintain at all times during the performance of this Agreement, and for such additional periods as described herein, the insurance listed below with insurers licensed to do business in the State of California and with a Best's rating of no less than A:VII.

A. Commercial Automobile Liability Insurance. Commercial Automobile Liability Insurance providing bodily injury liability and property damage, to protect against all liability arising out of the use of any owned, leased, passenger or commercial Item #7.1.

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OAK #4890-2776-373v1 (Rev. 9/2021)
automobile at a minimum amount of $1,000,000 combined single limit and $2,000,000 aggregate. Coverage shall apply to hired and non-owned autos.

B. Commercial General Liability Insurance. Commercial General Liability Insurance, with limits providing a minimum amount of $1,000,000 combined single limit coverage for each occurrence, $2,000,000 general aggregate and $2,000,000 products/completed operations aggregate. The insurance shall cover all operations including but not limited to the following: (1) premises, operations and mobile equipment liability; (2) completed operations and products liability; (3) contractual liability insuring the obligations assumed by CONSULTANT in this Agreement; (4) broad form property damage liability; (5) personal injury liability endorsement, including death; and (6) automobile bodily injury and property damage insurance, including all owned, hired and non-owned equipment.

C. Professional Liability Insurance. Professional Liability Insurance protecting against liabilities arising out of or in connection with negligent acts, errors, or omissions of CONSULTANT and all of CONSULTANTS employees, subcontractors, consultants and other agency in connection with this Agreement, at a minimum amount of $1,000,000 combined single limit coverage and $1,000,000 aggregate, on a "claims made basis" with a continuation of coverage extension for liabilities for two years from the date the Services are substantially complete. Such professional liability policies shall include coverage for liability assumed by the CONSULTANT under this Agreement.

D. Workers Compensation Insurance. Workers Compensation insurance, occupational disease insurance and employer’s liability insurance shall be required with minimum limits as required by law, covering all workplaces involved in this Agreement.

E. Sexual Abuse or Molestation (“SAM”) Liability: If the work will include contact with minors, and the Commercial General Liability policy under Section 5.3(B) is not endorsed to include affirmative coverage for sexual abuse or molestation, CONSULTANT shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $1,000,000 per occurrence or claim.

F. Policy Terms. Concurrently with execution of this Agreement, CONSULTANT shall provide CITY with Certificates of Insurance evidencing that CONSULTANT has obtained or maintains the insurance required by this Section

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OAK #4890-2776-373v1 (Rev. 9/2021)
separately, except with respect to the limits of the insurer's liability (crossliability endorsement); • Excepting CONSULTANT’S professional liability insurance, naming CITY, its City Council, boards, commissions, committees, officers, employees and agents as additional insureds (“Additional Insureds”); and • Providing that for any claims relating to CONSULTANT's services hereunder, CONSULTANT's insurance coverage shall be primary insurance with respect to CITY, its City Council, boards, commissions, committees, officers, employees and agents, and that any insurance or self-insurance maintained by CITY for itself, its City Council, boards, commissions, committees, officers, employees and agents shall be in excess of CONSULTANT's insurance and shall not be contributory with it.
• It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverages requirements and/or limits shall be available to the Additional Insured, including but not limited to any umbrella or excess insurance.

Furthermore, the requirements for coverage and limits shall be the greater of:
(a) the minimum coverage and limits specified in this Agreement; or (b) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured.

G. Waiver of Subrogation: CONSULTANT hereby grants to CITY a waiver of any right to subrogation which any insurer of said CONSULTANT may acquire against the CITY by virtue of the payment of any loss under such insurance.

CONSULTANT hereby agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not CITY has received a waiver of subrogation endorsement from the insurer. However, the Worker’s Compensation policy required by Section 5.3(D) of this Agreement shall be endorsed with a waiver of subrogation in favor of CITY for all work performed by CONSULTANT, its employees and/or agents.

H. Material Breach. If CONSULTANT fails to maintain insurance coverage or provided insurance documentation which is required pursuant to this Agreement, it shall be deemed a material breach of this Agreement. CITY, at its sole option, may terminate this Agreement and obtain damages from CONSULTANT resulting from said breach. Alternatively, CITY may purchase the required insurance coverage, and without further notice to CONSULTANT, may deduct from sums due to CONSULTANT any premium costs advanced by CITY for such insurance. These remedies shall be in addition to any other remedies available to CITY.

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overnight courier for next business day delivery, the next business day; (3) if sent by facsimile, with the original sent on the same day by overnight courier, the date on which the facsimile is received, provided it is before 5:00 P.M. Pacific Time; or (4) if sent electronically, the date of delivery on the confirmed read receipt. Notice of change of address shall be given by written notice in the manner described in this Article 6. Rejection or other refusal to accept or the inability to deliver because of a change in address of which no notice was given shall be deemed to constitute receipt of the notice or communication sent. Unless changed in accordance herewith, the addresses for notices given pursuant to this Agreement shall be as follows:

If to CITY: Laura Snideman, City Manager
1232 Washington Street
Calistoga, CA 94515
Email: [email protected]
Phone: 707-942-2806
If to CONSULTANT: Olivia Ervin
Principal
Metropolitan Planning Group
499 Humboldt Street
Santa Rosa, CA 95401
Phone: 707.360.0608
Email: [email protected]
ARTICLE 7 - MISCELLANEOUS

7.1. Conflict of Interest Prohibition. CITY and CONSULTANT will comply with the requirements of the CITY’s Conflict of Interest Code adopted pursuant to California Government Code §87300 et seq., the Political Reform Act (California Government Code §81000 et seq.), the regulations promulgated by the Fair Political Practices Commission (Title 2, §18110 et seq. of the California Code of Regulations), California Government Code §1090 et seq., and any other ethics laws applicable to the performance of the Services and/or this Agreement. CONSULTANT may be required to file with the CITY Clerk a completed Form 700 before commencing performance of the Services unless the CITY Clerk determines that completion of a Form 700 is not required, pursuant to CITY’s Conflict of Interest Code. Form 700 forms are available from the CITY Clerk.

CONSULTANT may not perform Services for any other person or entity that, pursuant to any applicable law or regulation, would result in a conflict of interest or would otherwise be prohibited with respect to CONSULTANT’s obligations pursuant to this Agreement.

CONSULTANT agrees to cooperate fully with CITY and to provide any necessary and appropriate information requested by CITY or any authorized representative concerning potential conflicts of interest or prohibitions concerning CONSULTANT’s obligations pursuant to this Agreement.

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OAK #4890-2776-373v1 (Rev. 9/2021)
§1090 et seq. CONSULTANT hereby warrants that it is not now, nor has it been in the previous twelve (12) months, an employee, agent, appointee, or official of CITY. If CONSULTANT was an employee, agent, appointee, or official of CITY in the previous twelve months, CONSULTANT warrants that it did not participate in any manner in the forming of this Agreement. CONSULTANT understands that, if this Agreement is made in violation of Government Code §1090 et seq., the entire Agreement is void and CONSULTANT will not be entitled to any compensation for CONSULTANT’s performance of the Services, including reimbursement of expenses, and CONSULTANT will be required to reimburse CITY for any sums paid to CONSULTANT under this Agreement. CONSULTANT understands that, in addition to the foregoing, penalties for violating Government Code §1090 may include criminal prosecution and disqualification from holding public office in the State of California.

Any violation by CONSULTANT of the requirements of this provision will constitute a material breach of this Agreement, and the CITY reserves all its rights and remedies at law and equity concerning any such violations.

7.2. Subcontracting. CONSULTANT may subcontract portions of the Services upon the prior written approval of CITY. CONSULTANT will be solely responsible for payment of such subcontract Services. No contractual relationship will exist between any such subcontractors of CONSULTANT and CITY. CONSULTANT’s subcontractors agree to be bound to CONSULTANT and CITY in the same manner and to the same extent as CONSULTANT is bound to CITY under the Agreement. CONSULTANT’s subcontractors further agree to include the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, with any subsubcontractor to the extent they apply to the scope of the sub-subcontractor’s work. A copy of the CITY indemnity and insurance provisions will be furnished to CONSULTANT’s subcontractors upon request.

7.3. Entire Agreement. This Agreement represents the entire understanding of CITY and CONSULTANT as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may only be modified by an amendment in writing signed by each party.

7.4. No Assignment. The Services are deemed unique and neither party shall assign, transfer, subcontract or otherwise substitute its interest in this Agreement or any of its obligations hereunder without the prior written consent of the other party. As limited by this Section

7.2, this Agreement is to be binding on the successors and assigns of the parties hereto.

7.5. Severability. If any part of this Agreement is determined to be unconstitutional, invalid or beyond the authority of either party, such decision shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect, provided that the remainder of this Agreement can be interpreted to give effect to the intentions of the parties.

Item #7.1.

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7.6. Counterparts. This Agreement may be signed in counterparts and, when fully signed, such counterparts shall have the same effect as if signed in one document.

7.7. Choice of Law. This Agreement and all matters relating to it shall be governed by the laws of the State of California without reference to its choice of laws principles and venue shall be in the appropriate court in Napa County, California.

7.8. Waiver. No failure on the part of either Party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder. A waiver by either CITY or CONSULTANT of any breach of this Agreement shall not be binding upon the waiving party unless such waiver is in writing. In the event of a written waiver, such a waiver shall not affect the waiving party's rights with respect to any other further breach.

7.10. Interpretation. In the event this Agreement is ever construed in any dispute between the parties, it and each of its provisions shall be construed without regard to the party or parties responsible for its preparation and shall be deemed to have been prepared jointly by the parties. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement.

7.11. Authority. Each individual executing this Agreement on behalf of one of the parties represents that he or she is duly authorized to sign and deliver the Agreement on behalf of such party and that this Agreement is binding on such party in accordance with its terms.

7.12. Third Parties. Nothing contained in this Agreement shall create a contractual relationship with, or cause of action in favor of, a third party against either the CITY or CONSULTANT. CONSULTANT’s Services hereunder are being performed solely for the benefit of CITY. CITY shall be an express third-party beneficiary of all contracts between CONSULTANT and any subcontractors or subconsultants in connection with any services performed in connection with, or in furtherance of, this Agreement. * * *
[Signatures on Next Page]
Item #7.1.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.

CITY OF CALISTOGA
By: Date:

Laura Snideman, City Manager

CONSULTANT
By: Date:

By: Date:

Attest
By:

Yudiana Galvan, City Clerk
Approved As To Form
By:

Michelle Marchetta Kenyon, City Attorney
Item #7.1.

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m-group.us
707.540.0723
499 Humboldt Street, Santa Rosa, CA 95404

EXHIBIT A

SCOPE OF WORK
Jeff Mitchem
City of Calistoga Planning & Building Department
Subject: M-Group Staffing Support
Planning Services for Special Projects
Mr. Mitchem,
I am pleased to prepare this letter proposal to provide the City of Calistoga with staffing support to augment your in-house planning staff. M-Group has been engaged with the City of Calistoga on a number of environmental and development review projects over the last several years and we look forward to continuing to work with the City on both environmental and development review projects in the future. We pride ourselves on ongoing work with out clients to prepare quality work product with flexibility to respond to changes needs and timelines. The following proposal is developed based on our recent conversation and to address the most immediate staffing needs in your office.

Under this contract, M-Group will provide on-call professional planning services for development and environmental review projects assigned by the City and under the City’s cost recovery agreement with developers. More specifically, these services will generally consist of, but not limited to, the following:
▪ Review development project materials and environmental technical studies ▪ Writing of reports, correspondence, findings, environmental documents, mitigation measures, and conditions of approval
▪ Attend meetings with applicants and city staff
▪ Complete research and make recommendations
▪ Conduct site inspections
▪ Attend and present at public meetings such as Design Review Board, Planning Commission, and City Council
Additionally, M-Group will provide professional planning services to assist the City with advanced planning and special projects as requested by the City and billed to the City as base level services.

These services may include, but are not limited to, the following:
▪ City initiated zoning updates
▪ Annual Housing Element Report
▪ Affordable housing agreements
▪ Environmental review of City Projects
▪ Public outreach efforts on advanced planning and policy issues ▪ Interim staff support as needed
Item #7.1.

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OAK #4823-2508-6159 v2
To accommodate the range of work outlined above and to ensure flexibility to assign the appropriate level of planner based on the specific task, this on-call contract will be billed on an hourly basis consistent with M-Group’s billing rates, (attached). These rates shall be subject to review and amended annually. This contract shall be limited to a not to exceed amount of $50,000 of non-cost-recovery items for base level charges. The contact shall not limit expenditures for hours billed to projects that are cost recovery with fill recovery of expenses through the City’s cost recovery agreement with the developer. The on-call contract shall run until December 31, 2024, unless extended.

I hope this approach meets your team’s immediate need and works within the constraints of the City’s budget. M-Group is committed to findings the best solution for the City of Calistoga’s current staffing needs. Please do not hesitate to contact me to discuss any revisions to this approach. I look forward to continuing to work together.

Thank you,
Olivia Ervin, Principal-InCharge [email protected]
707.540.0723 x 202
Item #7.1.

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OAK #4823-2508-6159 v2

EXHIBIT B
Compensation
CITY shall pay CONSULTANT for the Services on a cost reimbursement basis, up to the Cost Ceiling (as defined in Section 2.1 of the Agreement). CONSULTANT agrees to use appropriate methods to contain its fees and costs under this Agreement. Compensation shall include only the following costs, which shall all count toward the Cost Ceiling:

1. Direct Labor
Direct labor costs shall be the total number of hours worked on the job by each employee times the agreed hourly rate for such employee's labor as set forth on the attached Exhibit B-1. CITY will pay all personnel at their regular straight-time rate, including any work performed on overtime or on holidays or weekends.

2. Subconsultant Costs
Subconsultant services shall be billed at cost plus a 10 percent markup. CONSULTANT shall provide a copy of each subconsultant's invoice for which it seeks payment from CITY with any invoice in which such payment is requested.

3. Other Direct Costs
The following categories of costs are eligible for reimbursement, which shall be made at the actual cost to CONSULTANT without any additional mark-up:
a. Reasonable living and traveling expenses of employees when away from home office on business in its prosecution of the Services. CONSULTANT must have prior approval of CITY to be reimbursed for these expenses.
b. Automobile expenses for personal vehicle use, if necessary, at the IRS approved mileage rate.
c. Reproduction of drawings and specifications by CONSULTANT as required under this Agreement, at rates prevailing in this community for bulk reproduction or at other reasonable rates approved by CITY.
d. Special overnight delivery or messenger services.

Payments to CONSULTANT for reimbursable costs/expenses will be made only after the specific costs/expenses have been incurred and CONSULTANT has submitted substantiating documentation, such as copies of paid invoices or other documentation confirming that such costs/expenses have been incurred.

Item #7.1.

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OAK #4823-2508-6159 v2
EXHIBIT B-1
Item #7.1.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Jeff Mitchem, Planning & Building Director
Meeting: City Council - Aug 01 2023
Subject: Agreement with UpValley Family Centers for Immigration-Related Services, Senior Services, and Community Health and Education Services DESCRIPTION:

Consider adopting a Resolution authorizing the City Manager to execute a one-year professional services agreement with UpValley Family Centers to provide immigration-related services, senior services, and community and health and education services, in an amount not to exceed $100,000 over the course of the fiscal year.

RECOMMENDATION:

Consider adopting the resolution.

BACKGROUND/SUMMARY:

In August 2022, the City Council renewed its annual professional services agreement with UpValley Family Centers (UVFC) to provide funding for three of their programs. The agreements assisted in providing free immigration-related programs and support services to immigrants ($30,000), community health and education ($30,000) and senior outreach services ($40,000). All three services assist the residents and members of the Calistoga community.

UpValley Family Centers seeks to sustain the scopes/budgets at the same level as FY 22-23 for FY 23-34 in the amount of $100,000. The scope of services to be provided is summarized in the following sections.

Immigration-Related Needs
UVFC continues experiencing high demand for assistance with immigration-related needs by Calistoga residents, mostly due to stated or proposed changes in implementation of federal immigration laws. Residents in the community continue expressing worry, fear and serious concerns for themselves and/or their loved ones based on pronouncements at the federal level related to changes in immigration policy and enforcement. UVFC proposes to maintain staff capacity in Calistoga offices two days/week for immigration services and covers salary and benefits – one day/week for an Immigration Program Coordinator, and one day/week for a Program Director to serve Calistoga residents. Staff are bilingual, knowledgeable of the community, trained in immigration law and are partially accredited representatives by the Board of Immigration Appeals/US Department of Justice.

Health and Social Services
The City Council has long recognized and supported the UVFC and its value and service to the community. In Calistoga, UVFC provides health and social services that are not easily accessible to Item #7.2.

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our residents through county or state agencies. Services provided by the UVFC range from medical referrals, child and family counseling, housing assistance services, and food distribution.

Senior Services
Senior services activities include:
• Currently provide guided referrals to 100 seniors per quarter – increase to 125 per quarter (+ CDBG services means an estimated 131 seniors/quarter will be served) • Conduct outreach about Medi-Cal insurance expansion to newly eligible seniors (not in CDBG grant)
• Provide quarterly onsite activities at Calistoga mobile home parks/senior apartments (4 + 5 CDBG services means a total of 9 onsite social activities will be held over the year) • Coordinate a Senior Services Health Fair offering resources that promote well-being.

CEQA STATUS:

The recommended action is not a project and therefore not subject to CEQA review.

FINANCIAL IMPACT:

Funds are included in the adopted FY 2023-24 City budget (01-4107-4479). The contract amount is not to exceed $100,000 for the fiscal year.

ATTACHMENT(S):

Attach 1 - Draft Reso
ATTCH 2 - UVFC_City of Calistoga Service Agreement
APPROVAL(S):

Nitish Sharma Approved - Jul 19 2023
Laura Snideman, City Manager Approved - Jul 25 2023
Yudiana Galvan, Interim City Clerk Approved - Jul 25 2023 Item #7.2.

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Attachment 1
RESOLUTION NO. 2023-XXX

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

NAPA, STATE OF CALIFORNIA, AUTHORIZING THE EXECUTION OF A

PROFESSIONAL SERVICES AGREEMENT FOR THE UPVALLEY FAMILY CENTERS WHEREAS, the Calistoga City Council has placed great emphasis on the need to support and enhance services to foster family support and outreach services; and WHEREAS, the Calistoga City Council has, for a number of years, fiscally supported the activities of UpValley Family Centers for immigration-related support programs, senior services, community connections support services to immigrants, residents and members of the Calistoga community; and
WHEREAS, the Calistoga City Council wishes to enter into a one-year professional services agreement with UpValley Family Centers to formalize its relationship and to establish a set of specific tasks and services which will be provided to the City by the Upvalley Family Center; and
WHEREAS, funding will be appropriated for Fiscal Year 2023-2024.

NOW, THEREFORE BE IT RESOLVED that the Calistoga City Council hereby authorizes the City Manager to execute a one-year professional services agreement with UpValley Family Centers and further authorizes the payment of invoices for services rendered by UpValley Family Center in the amount of $100,000 (account 01-4107-4479).

PASSED, APPROVED AND ADOPTED this 1
st day of August 2023. I, YUDIANA

GALVAN, INTERIM 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:
____________________________ ____________________________ Yudiana Galvan, Interim City Clerk Donald Williams, Mayor Item #7.2.

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ATTACHMENT 2

AGREEMENT FOR CONSULTANT SERVICES
This Agreement for Consultant Services (the "Agreement") is made and entered into this 1st day of August, 2023, by and between THE CITY OF CALISTOGA, a municipal corporation (hereinafter referred to as "CITY") and Up Valley Family Centers [a nonprofit corporation] (hereinafter referred to as "CONSULTANT"). CITY and CONSULT ANT may be referred to individually as "Party" and collectively as the "Parties."

RECITALS
WHEREAS, CITY City desires to obtain multiple social services addressing community health and wellness, senior services, and immigration in connection with the Up Valley Family Centers;
WHEREAS, CONSULT ANT is qualified to perform such services; and WHEREAS, CONSULT ANT has agreed to provide CITY with such services on the terms and conditions set forth herein.

NOW, THEREFORE, for the considerations hereinafter set forth, CONSULTANT and CITY agree as follows:

ARTICLE I - SCOPE OF SERVICES

1.1. Scope of Work. CONSULTANT agrees to furnish the services set forth in Exhibit A, Scope of Work, which is attached hereto and incorporated herein (the "Services").

1.2. Compliance with Law. The Services shall be performed in accordance with all applicable federal, state and local laws, ordinances, rules, regulations and orders.

1.3. Time is of the Essence. CONSULTANT agrees to diligently prosecute the Services. In the performance of this Agreement, time is of the essence.

1.4. Professional Competence. CONSULTANT represents that it has the professional skills necessary to perform the Services and that it will perform the Services in a skillful and professional manner. CONSULT ANT represents that it has all the necessary licenses to perform the Services and shall maintain them throughout the term of this Agreement.

CONSULTANT agrees that the Services shall be performed in the manner and according to the standards observed by a competent practitioner of the profession in which CONSULT ANT is engaged, in the same or similar geographical area in which CONSULTANT practices its profession, and will prepare all work products required by this Agreement in accordance with such standards. CITY and CONSULT ANT agree that CONSULTANT is in responsible charge of the Services and CITY shall have no control over the method or means of performance of the Services. Acceptance by CITY of the - 1 - OAK #4890-2776-3737vl (Rev. 9/2021)
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Services does not operate as a release of CONSULT ANT from professional responsibility for the Services performed.

1.5. Independent Contractor. CONSULTANT is an independent contractor and not an employee of CITY. CONSULTANT expressly warrants that it will not represent that it is an employee of CITY. Persons employed or utilized by CONSULTANT in the performance of the Services will not be employees or agents of CITY. CONSULT ANT is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

1. 7. Ownership of Material. Any reports and other material prepared by or on behalf of CONSULTANT under this Agreement (collectively, the "Documents") shall be and remain the property of CITY. All Documents not already provided to CITY shall be delivered to CITY on the date of termination of this Agreement for any reason. The Documents may be used by CITY and its agents, employees, representatives, and assigns, in whole or in part, or in modified form, for all purposes CITY may deem appropriate without further employment of or payment of any compensation to CONSUL TANT.

1.9. Testimony. CONSULTANT agrees to testify at CITY's request iflitigation is brought against CITY in connection with the Services. Unless the action is brought by CONSULTANT or is based upon CONSULTANT's negligence, CITY will compensate CONSULT ANT for the preparation and the testimony at CONSULTANT's standard hourly rates.

ARTICLE 2 - COMPENSATION

2.2. Invoices. CONSULTANT shall submit monthly invoices in a form satisfactory to CITY on or before the tenth day of each month for Services provided during the preceding - 2 -
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month. CONSULT ANT shall submit time and cost records as necessary to substantiate performance of the Services. Within 35 days after receipt of each such invoice, CITY shall verify the accuracy of the invoice, correct the charges where appropriate and as discussed and mutually agreed with CONSULT ANT, and make payment to CONSULTANT in an amount equal to the amount of such invoice, as verified or corrected by CITY. No payment hereunder shall be construed as evidence of acceptance of any of CONSULT ANT's work. CITY reserves the right to withhold payment from CONSULTANT on account of Services not performed satisfactorily, delays in CONSULTANT's performance of Services, or other defaults hereunder. CONSULT ANT shall not stop or delay performance of the Services under this Agreement on account of payment disputes with CITY.

2.3. Status Reports. Together with each monthly invoice, CONSULTANT shall submit a status report detailing the amount expended on the Services to that date and the remaining amount to be expended before the Cost Ceiling is reached. CONSULT ANT shall notify CITY in writing when payments have reached 90 percent of the Cost Ceiling.

2.4. Withholding. In lieu of holding retention, CITY shall withhold CONSULTANT's final payment until the Services are complete and CITY has received all Documents.

CONSULT ANT shall diligently continue and complete performance of the Services if the Services are not complete at the time CONSULTANT has performed services up to the Cost Ceiling.

ARTICLE 3 - TIME OF PERFORMANCE
3 .1. Effective Date. This Agreement shall become effective upon execution of the second signature and shall remain in full force and effect until the Services are completed (the "Term"). CONSULTANT agrees to complete all services annually as specified in Exhibit A. Scope of Work.

3.2. Termination. This Agreement may be terminated at any time by CITY upon written notice to CONSULTANT.

ARTICLE 4-DESIGNATED CONTACTS

4.1. CITY Contact. CITY designates Laura Snideman, its City Manager, as its contact who shall be responsible for administering and interpreting the terms and conditions of this Agreement, for matters relating to CONSULT ANT's performance under this Agreement, and for liaison and coordination between CITY and CONSULTANT. In the event CITY - 3 -
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wishes to make a change in CITY's representative, CITY will notify CONSULTANT of the change in writing.

4.2. CONSULTANT Contact. CONSULTANT designates Jenny Ocon as its contact, who shall have immediate responsibility for the performance of the Services and for all matters relating to performance under this Agreement. Any change in CONSULTANT's designated contact shall be subject to written approval by CITY.

ARTICLE 5 - INDEMNIFICATION AND INSURANCE

5.1. Indemnification. CONSULTANT shall, to the fullest extent allowed by law, with respect to claims, liability, loss, damage, costs, or expenses, including reasonable attorney's and expert witness fees, awards, fines, penalties, or judgments, arising out of or relating to the Services (collectively "Claims"), defend, indemnify, and hold harmless CITY, its Officials, officers, employees and agents (the "CITY Parties"), except to the extent the Claims are attributable to CITY Parties' gross negligence or willful misconduct. CONSULT ANT shall defend the CITY Parties as required by California Civil Code Section 2778, and with counsel reasonably acceptable to those parties.

CONSULT ANT shall have no right to seek reimbursement from the CITY Parties for the costs of defense.

If CONSULTANT is a "design professional," as defined in California Civil Code Section 2782.S(c), CONSULTANT shall indemnify, defend, and hold the Indemnitees harmless against Liability only to the extent such Liability arises out of, pertains to, or relates to CONSULTANT's negligence, recklessness, or willful misconduct. In such an event, the cost to defend charged to CONSULTANT shall not exceed CONSULTANT's proportionate percentage of fault.

5.2. Health and Safety. CONSULTANT may perform part of the Services at sites which contain unknown working conditions and contaminated materials. CONSULT ANT shall be solely responsible for the health and safety of CONSULT ANT's employees during the performance of the Services.

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automobile at a minimum amount of $1,000,000 combined single limit and $2,000,000 aggregate. Coverage shall apply to hired and non-owned autos.

B. Commercial General Liability Insurance. Commercial General Liability Insurance, with limits providing a minimum amount of $1,000,000 combined single limit coverage for each occurrence, $2,000,000 general aggregate and $2,000,000 products/completed operations aggregate. The insurance shall cover all operations including but not limited to the following: (1) premises, operations and mobile equipment liability; (2) completed operations and products liability; (3) contractual liability insuring the obligations assumed by CONSULTANT in this Agreement; ( 4) broad form property damage liability; (5) personal injury liability endorsement, including death; and (6) automobile bodily injury and property damage insurance, including all owned, hired and non-owned equipment.

C. Professional Liability Insurance. Professional Liability Insurance protecting against liabilities arising out of or in connection with negligent acts, errors, or omissions of CONSULTANT and all of CONSULT ANTS employees, subcontractors, consultants and other agency in connection with this Agreement, at a minimum amount of$1,000,000 combined single limit coverage and $1,000,000 aggregate, on a "claims made basis" with a continuation of coverage extension for liabilities for two years from the date the Services are substantially complete. Such professional liability policies shall include coverage for liability assumed by the CONSULT ANT under this Agreement.

D. Workers Compensation Insurance. Workers Compensation insurance, occupational disease insurance and employer's liability insurance shall be required with minimum limits as required by law, covering all workplaces involved in this Agreement.

E. Policy Terms. Concurrently with execution of this Agreement, CONSULTANT shall provide CITY with Certificates of Insurance evidencing that CONSULT ANT has obtained or maintains the insurance required by this Section

5.3. The Certificates shall be on forms acceptable to CITY. CONSULTANT shall also furnish CITY with original endorsements with the following documentation:
• Precluding cancellation or reduction in coverage before the expiration of thirty (30) days after CITY shall have received written notification thereof from CONSULTANT by United States mail;
• Providing that CONSULTANT's insurance shall apply separately to each insured against whom claim is made or suit is brought, and include a "separation of insureds" or "severability" clause which treats each insured separately, except with respect to the limits of the insurer's liability ( crossliability endorsement); • Excepting CONSULTANT'S professional liability insurance, naming CITY, its City Council, boards, commissions, committees, officers, employees and agents as additional insureds ("Additional Insureds"); and - 5 - OAK #4890-2776-373vl (Rev. 9/2021)
Item #7.2.

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• Providing that for any claims relating to CONSULT ANT's services hereunder, CONSULT ANT's insurance coverage shall be primary insurance with respect to CITY, its City Council, boards, commissions, committees, officers, employees and agents, and that any insurance or self-insurance maintained by CITY for itself, its City Council, boards, commissions, committees, officers, employees and agents shall be in excess of CONSULT ANT's insurance and shall not be contributory with it.
• It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverages requirements and/or limits shall be available to the Additional Insured, including but not limited to any umbrella or excess insurance.

F. Material Breach. If CONSULT ANT fails to maintain insurance coverage or provided insurance documentation which is required pursuant to this Agreement, it shall be deemed a material breach of this Agreement. CITY, at its sole option, may terminate this Agreement and obtain damages from CONSUL TANT resulting from said breach. Alternatively, CITY may purchase the required insurance coverage, and without further notice to CONSULTANT, may deduct from sums due to CONSULT ANT any premium costs advanced by CITY for such insurance. These remedies shall be in addition to any other remedies available to CITY.

ARTICLE 6 - NOTICES
All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by facsimile or reputable overnight courier and shall be deemed received upon the earlier of: (1) if personally delivered, the date of delivery to the address of the person to receive such notice; (2) if delivered by Federal Express or other overnight courier for next business day delivery, the next business day; (3) if sent by facsimile, with the original sent on the same day by overnight courier, the date on which the facsimile is received, provided it is before 5:00 P.M. Pacific Time; or (4) if sent electronically, the date of delivery on the confirmed read receipt. Notice of change of address shall be given by written notice in the manner described in this Article 6. Rejection or other refusal to accept or the inability to deliver because of a change in address of which no notice was given shall be deemed to constitute receipt of the notice or communication sent. Unless changed in accordance herewith, the addresses for notices given pursuant to this Agreement shall be as follows:

Ifto CITY:

OAK #4890-2776-373vl (Rev. 9/2021)
Laura Snideman, City Manager
1232 Washington Street
Calistoga, CA 94515
Email: [email protected]. us
Phone: 707-942-2806
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Ifto CONSULTANT: Jenny Ocon, Executive Director
1440 Spring Street
Saint Helena, CA 94574
Phone: (707) 965-5010
Email: [email protected]
ARTICLE 7 - MISCELLANEOUS

7.1. Conflict of Interest Prohibition. CITY and CONSULTANT will comply with the requirements of the CITY's Conflict oflnterest Code adopted pursuant to California Government Code §87300 et seq., the Political Reform Act (California Government Code §81000 et seq.), the regulations promulgated by the Fair Political Practices Commission (Title 2, §18110 et seq. of the California Code of Regulations), California Government Code §1090 et seq., and any other ethics laws applicable to the performance of the Services and/or this Agreement. CONSULTANT may be required to file with the CITY Clerk a completed Form 700 before commencing performance of the Services unless the CITY Clerk determines that completion of a Form 700 is not required, pursuant to CITY's Conflict oflnterest Code. Form 700 forms are available from the CITY Clerk.

CONSULT ANT may not perform Services for any other person or entity that, pursuant to any applicable law or regulation, would result in a conflict of interest or would otherwise be prohibited with respect to CONSULTANT's obligations pursuant to this Agreement.

CONSULTANT may not employ any CITY official, officer or employee in the performance of the Services, nor may any official, officer or employee of CITY have any financial interest in this Agreement that would violate California Government Code § 1090 et seq. CONSULTANT hereby warrants that it is not now, nor has it been in the previous twelve (12) months, an employee, agent, appointee, or official of CITY. If CONSULT ANT was an employee, agent, appointee, or official of CITY in the previous twelve months, CONSULTANT warrants that it did not participate in any manner in the forming of this Agreement. CONSULT ANT understands that, if this Agreement is made in violation of Government Code § 1090 et seq., the entire Agreement is void and CONSULT ANT will not be entitled to any compensation for CONSULT ANT's performance of the Services, including reimbursement of expenses, and CONSULT ANT will be required to reimburse CITY for any sums paid to CONSULTANT under this Agreement. CONSULT ANT understands that, in addition to the foregoing, penalties for violating Government Code § 1090 may include criminal prosecution and disqualification - 7 - OAK #4890-2776-373vl (Rev. 9/2021)
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from holding public office in the State of California.

7.2. Subcontracting. CONSULTANT may subcontract portions of the Services upon the prior written approval of CITY. CONSULT ANT will be solely responsible for payment of such subcontract Services. No contractual relationship will exist between any such subcontractors of CONSULTANT and CITY. CONSULTANT's subcontractors agree to be bound to CONSULT ANT and CITY in the same manner and to the same extent as CONSULTANT is bound to CITY under the Agreement. CONSULTANT's subcontractors further agree to include the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, with any subsubcontractor to the extent they apply to the scope of the sub-subcontractor's work. A copy of the CITY indemnity and insurance provisions will be furnished to CONSULTANT's subcontractors upon request.

7.5. Severability. If any part of this Agreement is determined to be unconstitutional, invalid or beyond the authority of either party, such decision shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect, provided that the remainder ofthis Agreement can be interpreted to give effect to the intentions of the parties.

7.6. Counterparts. This Agreement may be signed in counterparts and, when fully signed, such counterparts shall have the same effect as if signed in one document.

7. 7. Choice of Law. This Agreement and all matters relating to it shall be governed by the laws of the State of California without reference to its choice of laws principles and venue shall be in the appropriate court in Napa County, California.

7.8. Waiver. No failui:e on the part of either Party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder. A waiver by either CITY or CONSULT ANT of any breach of this Agreement shall not be binding upon the waiving party unless such waiver is in writing. In the event of a written - 8 - OAK #4890-2776-373vl (Rev. 9/2021)
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waiver, such a waiver shall not affect the waiving party's rights with respect to any other further breach.

7.9. Mediation. In the event the parties are unable to resolve a dispute arising under this Agreement through good faith negotiations, the parties agree to submit the matter to mediation with a mutually agreeable mediator. Prior to the mediation, the parties shall exchange any documents reasonably necessary to resolve the matter to be mediated. 7 .10. Interpretation. In the event this Agreement is ever construed in any dispute between the parties, it and each of its provisions shall be construed without regard to the party or parties responsible for its preparation and shall be deemed to have been prepared jointly by the parties. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement.

7.12. Third Parties. Nothing contained in this Agreement shall create a contractual relationship with, or cause of action in favor of, a third party against either the CITY or CONSULTANT. CONSULTANT's Services hereunder are being performed solely for the benefit of CITY. CITY shall be an express third-party beneficiary of all contracts between CONSULT ANT and any subcontractors or subconsultants in connection with any services performed in connection with, or in furtherance of, this Agreement. ***
{Signatures on Next Page}
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.

CITY OF CALISTOGA
By: ___ ___ _ _ _____ _ Date: - - - - -- Laura Snideman, City Manager CONSU~LTANT r
By:. _ _ ~---1-iL...L,_-+-4 _________ _
Je1 yO
Date: ::}- / I,/ Z.O'"l-3 ·- -----=---
Up Valley Family Center
Attest
By:. ___ _ _ ___________ _
Yudiana Galvan, Interim City Clerk
Approved As To Form
By: __________ ___ _
Michelle Marchetta Kenyon, City Attorney
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EXHIBIT A

SCOPE OF WORK
July 1, 2023 - June 30, 2024
Up Valley Family Centers (UVFC) is proud to partner with the City of Calistoga to provide much needed services for the residents of our town. Since 1999, UVFC has served as the primary trusted resource for vulnerable households in Calistoga, providing a one-stop-shop for access to the resources people need to survive, and thrive. We serve over 1,500 Calistoga residents of all ages every year, assisting households in weathering emergencies and building security through a broad scope of services - including referrals to health services and other resources, financial coaching, free tax preparation, education and mentorship opportunities, adult education and employment assistance, case management, disaster relief and emergency preparedness, and more.

City of Calistoga funds represent approximately 11 % of our program budget will be leveraged together with other funds raised, to meet our total annual Calistoga program budget of $281,597. Below is the annual scope of work:
• Community Connections Program - $30,000 per fiscal year

1. UVFC will provide broad education and outreach to families with children to inform them of all of the services provided locally by UVFC and its partner agencies, and the City of Calistoga.

Specific populations for targeted outreach include single parent families, kin caregiver families, seniors and monolingual Spanish speakers. Outreach will include distribution of a monthly calendar through the schools, information on local television and radio stations, community presentations and personal phone calls. UVFC will participate in or coordinate at least 3 resource fairs annually in Calistoga.

2. The UVFC Community Liaison will provide guided referrals for 100 families each month for recreation services, housing resources, medical and dental services, prenatal care, Medi-Cal covered services, community resources, legal assistance, preschool and childcare opportunities, and other family supports. The Community Liaison will meet with families individually to assess the need and refer to the appropriate resource.

3. UVFC will provide translation and/or application assistance for 100 families each month for rental and employment issues, health insurance - including Medi-Cal, food assistance, and housing/shelter programs. The Community Liaison will assist individuals to complete applications and to translate and explain documents.
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Senior Services
Up Valley Family Centers began working with seniors in 2011, when it was identified that no other local agency was providing social service supports to low-income seniors in Calistoga. According to the US Census, 25% of Calistoga's 5,155 population is made up of seniors, and that percentage projected to grow as Baby Boomers retire. There is an increasing demand for senior services - and our goal is to help build and maintain a sustainable network of care and support resources for Calistoga seniors.

The family center is known by low-income seniors in our community as a place to seek assistance and get needed support. We have referral partnerships with over 20 senior-serving organizations and bring professional service providers such as lawyers and therapists to Calistoga to provide individualized services to our clients. We also coordinate informational workshops, support groups and resource fairs on a regular basis.

City of Calistoga funds represent approximately 15% of this program budget will be leveraged together with other funds raised, to meet the total annual Calistoga program budget of $268,706. Below is the annual scope of work:
• Senior Community Needs Program -$40,000 per fiscal year

1. Provide at least 125 seniors per quarter with individual support, making referrals, scheduling appointments and completing applications to maintain their health and quality of life. Services will include referrals and/or application assistance for Medi-Cal.

2. Coordinate services for seniors to be offered in Calistoga, including Bay Area Legal Aid, Mentis, HICAP, Department of Health and Human Services/Medicare, Area Agency on Aging, Napa County Adult Protective Services, Rianda House, and Community Health Napa Valley (formerly Collabria Care).

3. Offer special programs, at least once per quarter, that provide respite or information for seniors including support groups, educational workshops and resource fairs.

4. Provide quarterly onsite health and wellness activities at Calistoga mobile home parks/senior apartments (at least 4 onsite activities will be held over the year)

5. Coordinate a Senior Services Health Fair offering resources that promote well-being.

Immigration Services
The UpValley Family Centers began providing immigration services to the upvalley community in 2015.

Since that time, there has been an ongoing continued demand for assistance with immigration related needs by Calistoga residents, due to various changes in the implementation of federal immigration laws.

Through support from the City of Calistoga, the family center will provide free immigration services to low-income Calistoga residents. Services will include outreach, community education, individual consultations and application assistance to Calistoga residents on immigration-related matters. Up Valley Family Centers is recognized by the US Department of Justice and has two partially-accredited representatives who are trained to assist with filing immigration applications with US Citizenship and Immigration Services. We are a member of the Napa County Citizenship Legal Services Collaborative - 2 - OAK #4890-2776-373vl (Rev. 9/2021)
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and staff receive legal mentoring and support from Immigration Institute of the Bay Area, and refer complex cases out.

City of Calistoga funds represent approximately 17% of our program budget and will be leveraged together with other funds raised, to meet our total annual Calistoga program budget of $175,990. Below is the annual scope of work:
• Immigrant Integration Program - $30,000 per fiscal year

1. Reach a minimum of 100 Calistoga residents with up-to-date information about immigration benefits and changes in immigration policy, in English and Spanish, through individual outreach or group workshops.

2. Provide 75 Calistoga residents with free legal screening/consultations and application assistance for US citizenship, Deferred Action for Childhood Arrivals (DACA), green card renewals, and UVisas.

3. Connect 30 Calistoga residents applying for citizenship to local, free citizenship classes or tutors.

4. Conduct ongoing community education, distributing informational bulletins in English and Spanish throughout the community and via social media and the web. - 3 - OAK #4890-2776-373vl (Rev. 9/2021)
Item #7.2.

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EXHIBITB
Compensation
CITY shall pay CONSULT ANT for the Services on a cost reimbursement basis, up to the Cost Ceiling (as defined in Section 2.1 of the Agreement). CONSULTANT agrees to use appropriate methods to contain its fees and costs under this Agreement. Compensation shall include only the following costs, which shall all count toward the Cost Ceiling:

2. Subconsultant Costs
Subconsultant services shall be billed at cost plus a 10 percent markup. CONSULT ANT shall provide a copy of each subconsultant's invoice for which it seeks payment from CITY with any invoice in which such payment is requested.

Payments to CONSULT ANT for reimbursable costs/expenses will be made only after the specific costs/expenses have been incurred and CONSULT ANT has submitted substantiating documentation, such as copies of paid invoices or other documentation confirming that such costs/expenses have been incurred. - 4 - OAK #4890-2776-373vl (Rev. 9/2021)
Item #7.2.

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EXHIBIT B-1
City of Ca-listoga
Immigration, Community Connections and Senior Services Services FY24 Community
Immigration Connections Seniors Total
BUDGET s 30,000.00 s 30,000.00 s 40,000.00 s 100,000.00 Hourly rate
Perwnnel
Program Director s 60.6697 s 4,246.88 s 4,246.88
Immigration Program Coordinator s 35.9979 s 16,568.03 s 16,568.03 s
Family & Senior Wellness Director s 50.8754 s 1,628.01 s 1,628.01 Economic Success Coordinator s 28.8400 s 2,018.80 s 2 . 018.80 Family & Senior Wellness Program s 37.4828
Manager s 2,998.62
Community Liaison Calistoga s 24.7200 s 13,596.00
Seniors Case Manager I s 32.2802 s 10,394.22 s 10,394.22 Seniors Case Manager II s 27.2800 s 11,921.36 s 11,921.36 Senior Outreach Specialist s 26.2500 s 4,672.50 s 4,672.50 Subtotal personnel s 20,814.91 s 20,241.43 s 26.,988.08 s 68,044.42 s
Benefits & Payroll taxes s 4,579.28 s 4,453.11 s 5,937.38 s 14,969.77 Total per50!1nel s 25,394.19 s 24,694.54 s 32,925.46 s 83.014.19 s
:>perating eKp,enses s
Total operating expens.es s 1.87853 s 2,578.17 s 3,438.18 s 7.894.88 lldmin rosts 10%
Finance & Operations Director s 71.02 s 710.:W s 710.20 s 710.20 s 2,201.62 Operations & HR manager s 40.80 s 530.45 s 530.45 s 693.67 s 1,795.37 Staff Accountant s 32.75 s 368.48 s 368.48 s 589.57 s 1,359.28 Senior staff Accountant s 40.36 s 403.60 s 403.60 s 726.47 s 1,574.03 Subtotal personnel s 2,012.73 s 2,012.73 s 2,719.91 s 6,745.37 s
Benefits & Payroll taxes s 442.80 s 442.80 s 598.38 s 1,483.98 Total Admin personnel s 2,455.53 s 2,45553 s 3,318.29 s 8,229.35 s
Ope,-ating Admin expenses s
Total Admin operating expenses s 271.75 s 271.75 s 318.07 s 86157 s
rota! Admin costs 10% s 2.,727.2.8 s 2,727.2.8 s 3,636.36 s 9,090.92 s
Total expenditures s 30,000.00 s 30,000.00 s 40,000.00 s 100,000.00 OAK #4823-2508-6159 v2
Item #7.2.

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Item #7.2.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Nitish Sharma,
Meeting: City Council - Aug 01 2023
Subject: Annual Financial Report for the Fiscal Year ending June 30, 2022 DESCRIPTION:

Receive the City's Annual Financial Report for the Fiscal Year ending June 30, 2022 RECOMMENDATION:

Receive the City's Annual Financial Report for the Fiscal Year ending June 30, 2022 BACKGROUND/SUMMARY:

Government Code Sections 37208, 40804 and 53891 provide that the City prepare and publish an annual financial report. In addition, various federal and state regulations require annual specialized financial reports. This year’s financial reports were audited by O'Connor & Associates, an independent public accounting firm.

ANALYSIS:

Annual Financial Report: The auditor’s opinion is “clean” in that our Annual Financial Report presents fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Calistoga, California, as of June 30, 2022, and the respective changes in financial position and cash flows, where applicable thereof, and the respective budgetary comparisons for the general fund and major special revenue funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. Attachment 1 includes the Annual Financial Report for the Fiscal Year ended June 30, 2022.

Compliance Reports. As a condition to receiving federal and/or selected state financial assistance, the City is not required to have a Single Audit Report. This report focuses on compliance with requirements described in the U.S. Office of Management and Budget Circular A-133 Compliance Supplement.

Appropriations Limit. California law requires the City to have a CPA perform certain agreed-upon procedures to the Appropriations Limit under American Institute of Certified Public Accountants attestation standards. Based upon the application of these procedures, the auditors found that nothing came to their attention that caused them to believe that the Appropriations Limit was not computed in accordance with Article XIIIB of the California Constitution.

Other Matters. The Statement of Audit Standards (SAS) 114 require independent auditors to engage in, and document, formal communication with representative(s) of the public agencies’ governing body to discuss the scope and breadth of the annual audit, and that official financial statements be Item #7.3.

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transmitted to the City Council at a public meeting via the formal agenda process. Attachment 2 of this report includes the letter to the Managment on the Internal Controls. It important to note that there are not significant deficiencies noted in the report that required adjustments to the audited numbers.

These financial statements are routinely published and distributed consistent with all applicable legal requirements and are available for public review at the City as well as being posted on the City website. These reports were prepared by the Finance and responsibility for both the accuracy of the presented data and the completeness and fairness of their presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the city as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the city's financial affairs have been included.

The Annual Financial Statement is available for public review as follows:
https://www.ci.calistoga.ca.us/home/showpublisheddocument/39766

CONSISTENCY WITH CITY COUNCIL GOALS AND OBJECTIVES:

N/A
CEQA STATUS:

N/A
FINANCIAL IMPACT:

N/A
ATTACHMENT(S):

Attachment 1 Calistoga Audit Report 6.30.22
Attachment 2 Calistoga Mgmt Report 6.30.22
APPROVAL(S):

Nitish Sharma Approved - Jul 20 2023
Laura Snideman, City Manager Approved - Jul 25 2023
Yudiana Galvan, Interim City Clerk Approved - Jul 25 2023 Item #7.3.

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CITY OF CALISTOGA

CALISTOGA, CALIFORNIA

ANNUAL FINANCIAL REPORT
JUNE 30, 2022
Item #7.3.

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TABLE OF CONTENTS
PAGE

FINANCIAL SECTION
Independent Auditors’ Report 1-3
Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements:

Governmental Funds Balance Sheet 6
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds 7
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 8
Proprietary Funds:
9 10
Statement of Net Position – Proprietary Funds
Statement of Revenues, Expenses, and
Changes in Fund Net Position - Proprietary Funds
Statement of Cash Flows – Proprietary Funds 11-12
Fiduciary Funds:

Statement of Fiduciary Net Position 13
Statement of Changes in Fiduciary Net Position 14
Notes to Basic Financial Statements 15-42
REQUIRED SUPPLEMENTARY INFORMATION (unaudited)
Budgetary Comparison Schedule – Major Funds 43
Schedule of the Local Government’s Proportionate Share of Net Pension Liability 44
Schedule of Contributions – Miscellaneous 45
Schedule of Contributions – Safety 46
Schedule of Change in the Net OPEB Liability and Related Ratios 47 Item #7.3.

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TABLE OF CONTENTS (concluded)
PAGE

SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds Combining Balance Sheet 48-49 Nonmajor Governmental Funds Combining Schedule of
Revenues, Expenditures and Changes in Fund Balances 50-51 Independent Auditors’ Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards 52-53
Item #7.3.

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1701 NOVATO BLVD, SUITE 302
NOVATO, CA 94947
PH. (415) 457-1215
FAX. (415) 457-6735
www.maocpa.com
- 1 -
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and
Members of the City Council
City of Calistoga
Calistoga, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information, of the City of Calistoga, California as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City of Calistoga’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of City of Calistoga, as of June 30, 2022, and the respective changes in financial position and where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Calistoga, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about City of Calistoga’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the Unites States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

Item #7.3.

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To the Honorable Mayor and
Members of the City Council
City of Calistoga - Page 2
- 2 -
In performing an audit in accordance with auditing standards generally accepted in the Unites States of America and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Calistoga’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City of Calistoga’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion is not modified with respect to this matter.

Accounting principles generally accepted in the United States of America require that the budgetary comparison information and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Calistoga’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for the purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Item #7.3.

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To the Honorable Mayor and
Members of the City Council
City of Calistoga - Page 3
- 3 -
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2023, on our consideration of the City of Calistoga’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of City of Calistoga’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Calistoga’s internal control over financial reporting and compliance.

O’Connor & Company
Novato, California
June 27, 2023
Item #7.3.

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Governmental
Activities
Business-Type
Activities Total
ASSETS
Current assets:

Cash and cash equivalents $ 17,542,650 $ 3,907,414 $ 21,450,064 Net receivables 3,013,540 1,267,816 4,281,356
Prepaid items 184,935 - 184,935
Total current assets 20,741,125 5,175,230 25,916,355
Noncurrent assets:

Internal balances 628,226 (659,384) (31,158)
Receivables-long-term 7,853,878 - 7,853,878
Nondepreciable assets 4,869,287 4,363,093 9,232,380
Depreciable assets, net 23,804,653 27,325,325 51,129,978 Total capital assets, net 28,673,940 31,688,418 60,362,358 Total noncurrent assets 37,156,044 31,029,034 68,185,078 Total assets 57,897,169 36,204,264 94,101,433

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - loss of refunding - 60,815 60,815 Deferred outflows of resources - pension 2,141,968 620,275 2,762,243 Deferred outflows of resources - OPEB 546,389 - 546,389 Total deferred outflows of resources 2,688,357 681,090 3,369,447

LIABILITIES
Current liabilities:

Accounts payable 467,974 354,785 822,759
Compensated absences 387,661 147,892 535,553
Deposits 65,270 202,660 267,930
Accrued interest payable - 100,077 100,077
Claims and settlements 29,319 - 29,319
Bonds, leases, agreements, notes
and certificates due in one year 329,330 891,382 1,220,712 Total current liabilities 1,279,554 1,696,796 2,976,350 Noncurrent liabilities:

Compensated absences 166,140 20,000 186,140
Bonds, leases, agreements, notes
and certificates due in more than one year 1,647,616 9,500,772 11,148,388 Net pension liability 3,435,616 1,471,840 4,907,456
Net OPEB liability 2,973,745 - 2,973,745
Total noncurrent liabilities 8,223,117 10,992,612 19,215,729 Total liabilities 9,502,671 12,689,408 22,192,079

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 3,262,246 1,372,022 4,634,268 Deferred inflows of resources - OPEB 617,663 - 617,663
Total deferred inflows of resources 3,879,909 1,372,022 5,251,931

NET POSITION
Net investment in capital assets 26,696,994 23,878,116 50,575,110 Restricted for:

Streets, recreation, capital projects 3,900,062 - 3,900,062 Public safety 602,248 - 602,248
Housing 10,024,202 - 10,024,202
Unrestricted 5,979,440 (1,054,192) 4,925,248
Total net position $ 47,202,946 $ 22,823,924 $ 70,026,870 City of Calistoga

STATEMENT OF NET POSITION
June 30, 2022
The accompanying notes are an integral part of these financial statements. - 4 -
Item #7.3.

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Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Functions/Programs
City government
Governmental activities:

General government $ 1,922,413 $ 250,000 $ - $ - $ (1,672,413) $ - $ (1,672,413) Public safety 6,051,926 670,801 1,263,485 - (4,117,640) - (4,117,640) Community services 984,367 - 75,000 - (909,367) - (909,367) Housing 212,874 31,000 40,000 - (141,874) - (141,874)
Recreation services 1,451,146 30,000 35,000 - (1,386,146) - (1,386,146) Public works 2,482,250 105,000 1,287,839 - (1,089,411) - (1,089,411) Planning and building 530,728 285,000 150,000 - (95,728) - (95,728) Interest on long-term debt 52,788 - - - (52,788) - (52,788) Total governmental activities 13,688,492 1,371,801 2,851,324 - (9,465,367) - (9,465,367) Business-Type Activities:

Water 4,305,120 3,925,996 - 84,583 - (294,541) (294,541) Wastewater 3,301,812 3,769,257 - 532,899 - 1,000,344 1,000,344 Total business-type activities 7,606,932 7,695,253 - 617,482 - 705,803 705,803 Total City government $21,295,424 $ 9,067,054 $ 2,851,324 $ 617,482 (9,465,367) 705,803 (8,759,564) General revenues and transfers
General revenues:

Taxes:

Property taxes 3,143,738 - 3,143,738
Transient occupancy taxes 12,775,057 - 12,775,057
Sales taxes 1,536,214 - 1,536,214
Other taxes 498,826 - 498,826
Unrestricted investment earnings (218,606) 12,907 (205,699) Other general revenues 173,283 178,329 351,612
Transfers 667,136 (667,136) -
Total general revenues and transfers 18,575,648 (475,900) 18,099,748 Change in net position 9,110,281 229,903 9,340,184
Net position, beginning 38,092,665 22,594,021 60,686,686 Net position, ending $47,202,946 $22,823,924 $70,026,870 City of Calistoga

STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2022
Net (Expenses) Revenue and
City Government
Program Revenues Changes in Net Assets
The accompanying notes are an integral part of these financial statements. - 5 -
Item #7.3.

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General Fund
HOME Grant
Fund
CDBG Open
Grant Fund
Capital Lease
Projects Fund
Other
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and investments 11,133,976 $ 2,775 $ -$ 33,858 $ $ 6,005,480 $ 17,176,089 Taxes receivables 2,174,857 - - - - 2,174,857
Accounts receivables 94,623 - - - - 94,623
Due from other governments 193,158 - - - 526,013 719,171 Accrued interest receivable 15,797 4 - - 8,609 24,410
Advances to other funds 659,384 - - - 402,424 1,061,808 Prepaid items 106,119 - - - 62,316 168,435
Notes receivables - 1,218,250 4,251,614 - 7,853,878 2,384,014 Total assets 14,377,914 $ 4,254,393 $ 1,218,250 $ 33,858 $ 9,388,856 $ 29,273,271 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES
Liabilities:

Accounts payables 287,374 $ -$ -$ -$ $ 71,107 $ 358,481 Accrued liabilities - - - - -
Advances from other funds- - - - 433,582 433,582
Deposits - - - - 65,270 65,270
Total liabilities 287,374 - - - 857,333 569,959
Fund balances:

Nonspendable 765,503 - - - - 765,503
Restricted for capital improvements - - - 33,858 - 33,858 Restricted for affordable housing - 4,254,393 1,218,250 - 4,551,559 10,024,202 Restricted for streets - - - - 3,669,956 3,669,956
Restricted for facilities - - - - 188,327 188,327
Restricted for public safety - - - - 602,248 602,248
Restricted for parks - - - - 7,921 7,921
Unassigned - 13,325,037 - (201,114) - 13,123,923
Total fund balances 4,254,393 14,090,540 1,218,250 33,858 8,818,897 28,415,938 Total liabilities and fund balances 14,377,914 $ 4,254,393 $ 1,218,250 $ 33,858 $ 9,388,856 $ 29,273,271 $ Total Governmental Fund Balances $ 28,415,938
Amounts reported for governmental activities in the
statement of net position are different because:

Capital assets used in governmental activities are not
financial resources and therefore are not reported in the funds 27,179,736 The assets and liabilities of the internal service fund are included in the governmental activities in the statement of net position 1,768,251
Liabilities for other post-employment benefit (OPEB) obligations do not result in the use of current financial resources and are not reported in the funds Some liabilities, including bonds, leases, compensated
absences, and accrued interest are not due and payable in the current period and are therefore not reported in the funds (2,560,066) Deferred outflow related to pension 2,141,968
Deferred outflow related to OPEB 546,389
Deferred inflow related to pension (3,262,246)
Deferred inflow related to OPEB (617,663)
Net pension liability (3,435,616)
Net OPEB liability (2,973,745)
Net Position of Governmental Activities $ 47,202,946
City of Calistoga

BALANCE SHEET

GOVERNMENTAL FUNDS
June 30, 2022
The accompanying notes are integral to these financial statements. - 6 -
Item #7.3.

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General Fund
HOME Grant
Fund
CDBG Open
Grant Fund
Capital Lease
Projects Fund
Other
Governmental
Funds
Total
Governmental
Funds

REVENUES
Property taxes $ 3,143,738 $ - $ - $ - $ - $ 3,143,738
Sales taxes 1,536,214 - - - - 1,536,214
Transient occupancy taxes 11,792,363 - - - 982,694 12,775,057 Other taxes 498,826 - - - - 498,826
Licenses and permits 441,998 - - - - 441,998
Fines and forfeits 14,531 - - - - 14,531
Intergovernmental 1,455,001 - - - 1,396,323 2,851,324
Interest and rents (233,795) 7 - 18 15,164 (218,606)
Charges for services 445,964 - - - 469,308 915,272
Miscellaneous - 90,765 - - 82,518 173,283
Total revenues 19,094,840 90,772 - 18 2,946,007 22,131,637

EXPENDITURES
Current:

General government 1,878,874 - - - - 1,878,874
Public safety 5,903,827 - - - 2,969 5,906,796
Community services 860,345 - - - - 860,345
Housing - - - - 212,874 212,874
Recreation services 859,885 - - - - 859,885
Public works 2,496,030 - - - 978,312 3,474,342
Planning and building 530,728 - - - - 530,728
Debt service: -
Principal - - - - 321,114 321,114
Interest - - - - 52,788 52,788
Capital outlay 402,591 - - - - 402,591
Total expenditures 12,932,280 - - - 1,568,057 14,500,337 Excess (deficiency) of revenues over
expenditures 6,162,560 90,772 - 18 1,377,950 7,631,300

OTHER FINANCING SOURCES (USES)
Transfers in 341,600 - - - 1,368,505 1,710,105
Transfers out (613,563) - - - (513,776) (1,127,339)
Total other financing sources (uses) (271,963) - - - 854,729 582,766 Net change in fund balances 5,890,597 90,772 - 18 2,232,679 8,214,066 Fund balances, July 1 8,199,943 4,163,621 1,218,250 33,840 6,586,218 20,201,872 Fund balances, June 30 $ 14,090,540 $ 4,254,393 $ 1,218,250 $ 33,858 $ 8,818,897 $ 28,415,938 City of Calistoga

STATEMENT OF REVENUES, EXPENDITURES, AND
For the Fiscal Year Ended June 30, 2022

CHANGES IN FUND BALANCES
Governmental Funds
The accompanying notes are an integral part of these financial statements. - 7 -
Item #7.3.

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Net Change in Fund Balances - Total Governmental Funds $ 8,214,066 Amounts reported for Governmental Activities in the
Statement of Activities are different because:

Governmental funds report capital outlays as expenditures, however, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays $1,342,745 exceed depreciation ($1,314,093). 28,652 Repayments of long-term debt principal and claims are reported as expenditures in the governmental funds, but the repayments reduce liabilities in the Statement of Net Position. 321,114
Accrued interest payable on long-term debt does not require the use of current financial resources and is not reported in the funds until due. 23,366 Governmental funds report compensated absences when payments are made or are immediately due. However, in the Statement of Activities these costs are recorded when incurred. (113,254)
Internal service funds are closed by charging additional amounts or reducing charges to participating governmental activities to completely cover the internal service fund's costs for the year. (364,578) Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in govenmental funds. Governmental funds record OPEB expense as it is paid. (183,014) Governmental funds record pension expense as it is paid. However, in the Statement of Activities those costs are reversed as deferred outflows/(inflows) and an increase/(decrease) in net pension liability. 1,183,929 Net differences 896,215
Change in Net Position of Governmental Activities $ 9,110,281 For the Fiscal Year Ended June 30, 2022
City of Calistoga

RECONCILIATION OF THE STATEMENT OF REVENUES,

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

EXPENDITURES, AND CHANGES IN FUND BALANCES OF
The accompanying notes are an integral part of these financial statements. - 8 -
Item #7.3.

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Governmental
ActivitiesInternal
Water Wastewater Total Service Fund
ASSETS
Current assets:

Cash and cash equivalents $ 295,642 $ 3,611,772 $ 3,907,414 $ 366,561 Receivables(net) 685,909 581,907 1,267,816 479
Prepaid items - - - 16,500
Total current assets 981,551 4,193,679 5,175,230 383,540 Capital assets:

Land 2,338,730 464,108 2,802,838 -
Equipment and vehicles 1,411,919 1,246,839 2,658,758 4,284,162 Distribution and collection systems 24,431,913 24,659,873 49,091,786 - Water rights, net of amortization 673,804 - 673,804 -
Construction in progress 1,335,794 224,461 1,560,255 -
Less accumulated depreciation (10,640,513) (14,458,510) (25,099,023) (2,789,959) Net capital assets 19,551,647 12,136,771 31,688,418 1,494,203 Total noncurrent assets 19,551,647 12,136,771 31,688,418 1,494,203 Total assets 20,533,198 16,330,450 36,863,648 1,877,743

DEFERRED OUTFLOW OF RESOURCES
Deferred outflow of resources - loss on refunding 38,850 21,965 60,815 - Deferred outflow of resources - pension 337,845 282,430 620,275 - Total deferred outflow of resources 376,695 304,395 681,090 -

LIABILITIES
Current liabilities:

Accounts payable 229,933 124,852 354,785 109,492
Compensated absences 73,946 73,946 147,892 -
Deposits 202,660 - 202,660 -
Accrued interest 63,043 37,034 100,077 -
Agreements, loans, - - - -
and certificates due in one year 251,000 640,382 891,382 - Total current liabilities 820,582 876,214 1,696,796 109,492 Noncurrent liabilities:

State revolving loan payable - 354,920 354,920 -
Certificate of participation 3,040,000 3,595,000 6,635,000 - USDA Loan 2,510,852 - 2,510,852 -
Advances from other funds - 659,384 659,384 -
Compensated absences 10,000 10,000 20,000 -
Net pension liability 695,955 775,885 1,471,840 -
Total noncurrent liabilities 6,256,807 5,395,189 11,651,996 - Total liabilities 7,077,389 6,271,403 13,348,792 109,492

DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources - pension 655,446 716,576 1,372,022 - Total deferred outflow of resources 655,446 716,576 1,372,022 -

NET POSITION
Net Investment in capital asets 16,331,647 7,546,469 23,878,116 1,494,203 Unrestricted (3,154,589) 2,100,397 (1,054,192) 274,048
Total net position $ 13,177,058 $ 9,646,866 $ 22,823,924 $ 1,768,251 Enterprise Funds
City of Calistoga

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
June 30, 2022
The accompanying notes are an integral part of these financial statements. - 9 -
Item #7.3.

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Governmental
ActivitiesInternal
Water Wastewater Totals Service Fund

OPERATING REVENUES
Sales of water $ 3,925,996 $ - $ 3,925,996 $ -
Service fees - 3,769,257 3,769,257 325,254
Miscellaneous 177,400 929 178,329 -
Total operating revenues 4,103,396 3,770,186 7,873,582 325,254

OPERATING EXPENSES
Maintenance and operations 2,238,228 862,749 3,100,977 637,823 Employee services 1,126,202 1,220,585 2,346,787 -
Interfund charges for services 82,500 82,500 165,000 -
Depreciation and amortization 667,116 983,957 1,651,073 137,215 Total operating expenses 4,114,046 3,149,791 7,263,837 775,038 Operating income (loss) (10,650) 620,395 609,745 (449,784)

NON-OPERATING

REVENUES (EXPENSES)
Interest and investment revenue 7,755 5,152 12,907 836
Interest expense (191,074) (152,021) (343,095) -
Net nonoperating revenues
(expenses) (183,319) (146,869) (330,188) 836
Income (loss) before contributions
and transfers (193,969) 473,526 279,557 (448,948)
Contributions and transfers
Transfers in 69,385 21,600 90,985 84,370
Transfers out (758,121) - (758,121) -
Capital contributions 84,583 532,899 617,482 -
Net contributions and transfers (604,153) 554,499 (49,654) 84,370 Change in net position (798,122) 1,028,025 229,903 (364,578) Total net position, July 1 13,975,180 8,618,841 22,594,021 2,132,829 Total net position, June 30 $ 13,177,058 $ 9,646,866 $ 22,823,924 $ 1,768,251 For the Fiscal Year Ended June 30, 2022
Enterprise Funds
City of Calistoga

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
The accompanying notes are an integral part of these financial statements. - 10 -
Item #7.3.

Page 90 of 701 ends

Water Wastewater Totals
Governmental
ActivitiesInternal Service
Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 4,733,606 $ 4,153,988 $ 8,887,594 $ - Payments to suppliers (2,260,758) (1,001,203) (3,261,961) (548,405) Cash received from other funds for services - - - 328,396 Payments to other funds for services (82,500) (82,500) (165,000) - Payments to employees for services (1,099,710) (1,190,518) (2,290,228) - Other operating receipts 177,400 929 178,329 -
Net cash provided by (used for)
operating activities 1,468,038 1,880,696 3,348,734 (220,009) CASH FLOWS FROM NONCAPITAL `

FINANCING ACTIVITIES
Advances from other funds - - - -
Payments on long-term notes - - - -
Advances to other funds - - - -
Transfers in (out) from other funds (688,736) 21,600 (667,136) 84,370 Net cash provided by noncapital (688,736) 21,600 (667,136) 84,370 financing activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital contributions and grants 84,583 532,899 617,482 - Principal payments on capital debt (239,000) (621,631) (860,631) - Interest paid on long-term debt (191,891) (153,838) (345,729) - Purchases of capital assets (360,027) (142,857) (502,884) (160,858) Net cash provided by (used for) capital and
related financing activities (706,335) (385,427) (1,091,762) (160,858)

CASH FLOWS FROM INVESTING ACTIVITIES
Payments on long-term notes - - - -
Interest receipts 7,755 5,152 12,907 836
Net cash provided by investing activities 7,755 5,152 12,907 836 Net increase (decrease) in cash and
cash equivalents 80,722 1,522,021 1,602,743 (295,661)
Cash and cash equivalents balances -
beginning of the year 214,920 2,089,751 2,304,671 662,222 Cash and cash equivalents balances-end
of the year $ 295,642 $ 3,611,772 $ 3,907,414 $ 366,561 Enterprise Funds
City of Calistoga

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. - 11 -
Item #7.3.

Page 91 of 701 ends

Water Wastewater Totals
Governmental
Activities-Internal
Service Fund
Reconciliation of operating income (loss) to
net cash provided by operating activities:

Operating income (loss) $ (10,650) $ 620,395 $ 609,745 $ (449,784) Adjustments to reconcile operating income to
net cash provided by operating activities:

Depreciation and amortization expense 667,116 983,957 1,651,073 137,216 Change in assets and liabilities:

Decrease(increase) in deposits 150 - 150 -
Decrease(increase) in accounts receivable 807,610 384,731 1,192,341 3,142 Increase(decrease) in compensated absences 8,229 8,229 16,458 - Increase(decrease) in accounts payable (22,806) (138,583) (161,389) 78,322 Increase(decrease) in pension liabilities 18,263 21,838 40,101 - Decrease(increase) in prepayments 126 129 255 11,095
Net cash provided by (used for)
operating activities $ 1,468,038 $ 1,880,696 $ 3,348,734 $ (220,009) Noncash capital financing activities:

Amortization of bond loss on refunding $ 1,747 $ 1,034 $ 2,781 $ - Enterprise Funds
City of Calistoga

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
For the Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. - 12 -
Item #7.3.

Page 92 of 701 ends

Custodial
Fund
ASSETS
Cash and investments $ 116,234
Accrued interest receivable 152
Total assets $ 116,386

NET POSITION
Restricted for other governments $ 116,386
Total liabilities $ 116,386
City of Calistoga

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUND
For the Fiscal Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. - 13 -
Item #7.3.

Page 93 of 701 ends

Custodial
Fund

ADDITIONS
Assessment collections for other governments $ -
Total revenues -

DEDUCTIONS
Payments of assessments to other governments 150,687
Total expenditures 150,687
Net increase in fiduciary net position (150,687)
Net Position, July 1 267,073
Fund balances, June 30
$ 116,386
City of Calistoga

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUND
For the Fiscal Year Ended June 30, 2022
The accompanying notes are an integral part of these financial statements. - 14 -
Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 15 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Calistoga (the City) is a municipal corporation governed by an elected five-member City Council. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable.

The Calistoga Public Facilities Corporation is a legally separate entity for which the City is financially accountable, and it is governed by the elected City Council. The Corporation was formed to provide a method of financing public improvements. The financial activities of the Corporation are blended with those of the City and are reported in the City's governmental funds, and as capital assets of the City and debt obligations of the City.

B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, & Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.

For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded when payment is due.

Property taxes, sales taxes, transient occupancy taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 16 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting, & Financial Statement Presentation (concluded) Non-exchange transactions, in which the City gives or receives value without directly, receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed.

Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

The City reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The HOME Grant and CDBG Open Grant Funds account for resources used for various programs funded partially or entirely by federal grant monies. The Capital Lease Projects Fund is used to account for the proceeds from a commercial lease arrangement used to obtain financing for pools, public works, fire stations, and other recreational facilities.

The City reports the following major proprietary funds:

The Water Fund accounts for the operations of the City's water treatment and distribution system.

The Wastewater Fund accounts for the operation of the City's wastewater treatment plant and collection facilities.

Additionally, the City reports the following fund type:

The internal service fund is used to account for the City's general operating equipment and related services provided to other City departments, on a cost reimbursement basis.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City's water and wastewater function and other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise and internal service funds are charges to customers for sales and services. Operating expenses for the enterprise and internal service funds include the costs of sales and services, administration costs and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Fiduciary Funds are used by the City as Custodial Funds to account for assets held by the City as an agent for special districts. The fiduciary funds are reported on the accrual basis of accounting and separate financial statements are provided even though they are excluded from the government-wide financial statements.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 17 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Deferred Outflows and Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period (s) and so will not be recognized as an outflow of resources (expense/expenditures) until then.

In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period (s) and so will not be recognized as an inflow of resources (revenue) until that time.

Unavailable revenue, a type of deferred inflow of resources, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: taxes receivable, interest on interfund advances and loans receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

E. Effects of New Pronouncements
The City implemented the following GASB Statement during the year: In January 2017, the GASB issued Statement No. 84, Fiduciary Activities. The Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The requirements of this Statement are effective for the City’s fiscal year ending June 30, 2022.

F. Deposits and Investments
The City is authorized by its most recent investment policy to invest in the State of California Local Agency Investment Fund, (LAIF) U.S. Treasury bonds, bills, and notes, obligations issued by US Government agencies, banker’s acceptances, repurchase agreements, time deposits, savings, and demand accounts. Additional types of investments including mutual and money market funds are also authorized by long-term debt financing agreements and indentures. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

Investments for the City are reported to be of fair value. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

Investments Authorized by the California Government Code and the City’s Investment Policy Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment
in One
Issuer
Local Agency Investment Fund (State Pool) N/A None $75 million U.S. Treasury Obligations N/A None None
U.S. Government Agency Issues N/A None None
Medium-term Corporate Notes 5 years 30% None
Insured Passbook on Demand Deposits with Banks
and Savings and Loans N/A None $250,000
Certificates of Deposit 2 years None $250,000
Foreign/Domestic 180 days 40% None
Mutual Funds (must be comprised of eligible
securities permitted under this policy) N/A None None
Money Market Funds (must be comprised of eligible
securities permitted under this policy) N/A None None
Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 18 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources.

Long-term notes receivable is reported as assets in the governmental funds despite their focus on current financial resources, but they are offset by deferred revenue amounts in the governmental funds until such a time those collections on the notes are realized by the funds.

All trade and property tax receivables are not shown in net of an allowance for uncollectibles.

Property taxes are levied as of July 1 on property values assessed as of the prior January 1. State statutes provide that the property tax rate be limited generally to one percent of assessed value, be levied by only the County, and be shared by applicable jurisdictions. The County of Napa collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voterapproved debt. Property taxes are due on November 1 and March 1 and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan.” Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

H. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed or placed in service.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements under the consumption method.

I. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental-type or business type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($50,000 for infrastructure type assets) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value rather than fair value at the date of donation.

Under the GASB 34 Implementation Rules, the City is a Phase 3 entity and was not required to record infrastructure assets existing or acquired prior to July 1, 2003, at the date these new financial reporting standards were implemented; and the City has not recorded such assets. The costs of normal maintenance and repairs that do not add to the value of asset or materially extend assets lives are not capitalized.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 19 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Capital Assets (concluded)
Major outlays for capital assets and improvements are capitalized as projects are constructed.

Interest incurred during the construction phase of capital assets of the business-type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the City are depreciated using the straight-line method over the following estimated useful lives:

Assets Years
Buildings and improvements 50
Public domain infrastructure 50
System infrastructure-Utility 50
Vehicles and equipment 5-10
Intangible type assets such as water rights are amortized to expense over the estimated term of the contractual arrangement underlying such rights using a straight-line amortization period of 20 and 50 years.

J. Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. Proprietary fund types, cash and investments balances classified as Available for Operations are considered cash equivalents for purposes of the statement of cash flows.

K. Compensated Absences and Other Post-Employment Benefits It is the government’s policy to permit employees to accumulate earned but unused vacation. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The City accrues each year as a liability in the government-wide financial statements, the long-term portion is recorded in the Statement of Net Position.

L. Long-term Obligations
In the government-wide financial statements, and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position.

M. Fund Balances Governmental Funds
Fund balances for governmental funds are reported in classifications based primarily on the extent to which the City is bound to honor constraints about the specific purposes for which amounts in those funds can be spent. These classifications include (1) nonspendable, (2) restricted, (3) committed, (4) assigned and (5) unassigned amounts. Non-spendable amounts generally are items not expected to be readily converted into cash such as inventories, prepaid items, and long-term receivables not offset by deferred revenue accounts.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 20 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) M. Fund Balances Governmental Funds (concluded)
Restricted amounts include those where constraints placed on the uses of the resources are externally imposed by grantors, contributors, other governments or by laws and regulations.

Committed amounts are those that can only be used for a specific purpose as determined by the City Council. Such committed amounts may be redeployed for other uses only by the direction of the City Council. Assigned amounts are fund balance amounts constrained by the City’s intent to be used for specific purposes as determined by the City Manager or City’s Director of Administrative Services.

Unassigned fund balance amounts are the residual amounts reported only in the General Fund or funds having deficit balances.

The City Council by resolution established a policy that delegates to the City Manager or Director of Administrative Services the authority to establish, rescind or modify assigned amounts. Committed amounts may be established, modified, or rescinded by the adoption of a resolution of the City Council.

When expenditures are incurred for which both restricted and unrestricted (committed, assigned, or unassigned) amounts are available, the City considers restricted amounts to have been spent first.

When expenditures are incurred for which any class of unrestricted fund balance could be used, the City considers committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts.

N. Comparative Data
Certain amounts presented in the prior year data have been reclassified to be consistent with the current years' presentation.

O. Net Position
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as Net Position.

Net position is measured on the full accrual basis as compared to Fund Balance, which is measured on the modified accrual basis. Net Position is the excess of all the City’s assets over all its liabilities, regardless of source.

Net Position is divided into three captions and is described as follows:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These are principally debt service requirements.

Unrestricted describes the portion of Net Position which does not meet the definition of net investment in capital assets or restricted net position.

P. Prepayments
Prepaid items represent payments made to vendors for which the benefits are applicable to future accounting periods. Prepaids are recorded using the consumption method by recording an asset for the prepaid amount and reflecting the expenditure/expense in the year in which services are consumed.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 21 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (concluded) Q. Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position
The governmental fund balance sheet includes reconciliation between fund balance – total governmental funds and net assets – governmental activities as reported in the government-wide statements of net assets. One element of that reconciliation explains that “capital assets are not financial resources and are not reported in the funds.” The details of this $27,179,736 difference are as follows:

Capital assets $ 43,004,688
Less: internal service funds (4,284,162)
Accumulated depreciation (14,330,748)
Less: internal service funds 2,789,958
Net adjustment to increase fund balance – total governmental funds to arrive at net position – governmental activities $ 27,179,736 Another element of the reconciliation explains that "long-term liabilities" are not due and payable in the current period and are therefore not reported in the funds. The details of this $2,560,066 difference are shown below:

Long-Term Debt Obligations and Related Interest:

Capital lease obligations $ 1,976,946
Claims 29,319
Compensated absences 553,801
Net adjustment to decrease fund balance - total governmental funds to arrive at net position – governmental activities $ 2,560,066 NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds and proprietary funds. The City is not required to have a capital lease budget.

Appropriations lapse at fiscal year-end. The annual budget sets appropriations by fund or with further allocation by department or program. The legal level of budgetary control (i.e. the level at which expenditures may not legally exceed appropriations) is the fund level. The City Manager may authorize transfers of budgeted amounts between departments or programs within any fund. The City Manager may increase appropriations up to $30,000 for operating expenditures at the department level in any of the funds due to unexpected circumstances. The appropriations are then incorporated into the mid-year or final budget for the fiscal year. The City Council may adopt supplemental appropriations during the year. Encumbrance accounting is not employed in governmental funds.

The City did not prepare budgets for several Special Revenue Funds: HOME Grant, CDBG Open Grants, and CDBG Loan Repayment.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 22 -
NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (concluded) B. Deficit Fund Equity
For the year ended June 30, 2022 The MTC Street Fund had a deficit fund balance. This will be funded with future revenues.

NOTE 4 - DETAILED NOTES ON ALL FUNDS
A. Cash and Investments
Cash and Investments as of June 30, 2022, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments $ 21,450,064
Fiduciary funds cash and investments 116,234
Total cash and investments $ 21,566,298
The total cash and investments above include those amounts held by the City in its Fiduciary funds.

However, the entity-wide presentation excludes Fiduciary funds totals, as the City is merely acting as an agent for other parties (assessment districts).

California law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit or first trust deed mortgage notes with a value of 150% of the deposit as collateral for these deposits. Under California Law, this collateral is held in the City’s name and places the City ahead of general creditors of the institution. The City has waived collateral requirements for the portion of deposits covered by federal deposit insurance.

Local Agency Investment Fund (LAIF) - The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).

The City reports its investment in LAIF at the fair value amount provided by LAIF, which at June 30, 2020, was $261,218 less than the City’s cost. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are on an amortized cost basis. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations.

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of the City’s investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City participates in the State of California, Local Agency Investment Fund investment pool (LAIF). LAIF invests a portion of the pool funds in structured notes and asset-backed securities, which are subject to interest rate risk. The City’s current investment policy is designed with the objective of attaining a market rate of return on its’ investments consistent with the constraints imposed by the safety objective and cash flow considerations. Yield is to be considered only after the basic requirements of adequate safety and liquidity have been met.

Information about the sensitivity of the fair values of the City’s investments (including Investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 23 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
A. Cash and Investments (concluded)
Maturity 12
Months or less
13-24
Months
25-60
Months Total
Demand deposits $ 1,538,073 $ - $ - $ 1,538,073
Local Agency Investment Fund (LAIF) 20,028,225 - - 20,028,225 Money Market Savings - - - -
San Mateo Co. Treasurer’s Investment Pool - - - -
Total $ 21,566,298 $ - $ - $21,566,298
Fair Value Measurements
GASB Statement No. 72, Fair Value Measurements and Application, establishes a fair value hierarchy consisting of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs consist of inputs other than quoted prices that are observable for an asset or liability, either directly or indirectly, that can include quoted prices for similar assets or liabilities in active or inactive markets, or market-corroborated inputs, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. The valuation method used for rental properties is the Leased Fee Market method, which is dependent on the income generated from the rental properties. The City’s holdings in the Local Agency Investment Pool were not subject to the fair value hierarchy.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2022:

Investment Type Level 2
Exempt or
Amortized
Cost Total
California Local Agency Investment Fund $ - $ 20,028,225 $ 20,028,225 Total investments $ - $ 20,028,225 20,028,225
Cash in banks and on hand 1,538,073
Total cash and investments $ 21,566,298
Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank.

Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actual ratings as of June 30, 2022, are provided by Standard and Poor’s except as noted.

As of June 30, 2022, none of the City’s deposits or investments were exposed to custodial credit risk.

Investment Type Total
Not rated:

California Local Agency Investment Fund $ 20,028,225
Cash in banks and on hand 1,538,073
Total cash and investments $ 21,566,298
Item #7.3.

Page 103 of 701 ends

City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 24 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
B. Receivables
Receivables as of year-end for the government’s individual major and non-major funds in the aggregate, net of the applicable allowances for uncollectible accounts is as follows:

General
HOME
Grant Fund
Internal
Service &
Nonmajor
BusinessType Funds Total
Receivables:

Interest $ 15,797 $ 4 $ 9,088 $ - $ 24,889
Taxes 2,174,857 - - - 2,174,857
Due from other gvmts 193,158 - 526,013 - 719,171
Accounts 94,623 - - 1,267,816 1,362,439
Notes - 5,469,864 2,384,014 - 7,853,878
Net total receivables $ 2,478,435 $ 5,469,868 $ 2,919,115 $ 1,267,816 $12,135,234 The notes receivable of $7,853,878 consists of other loans of $114,384 including one loan for $237,621 plus accrued and unpaid interest for the development of low to moderate income apartments, maturing in 2023 and repayable out of residual receipts, and $2,045,250 in first-time homebuyer assistance loans secured by 4th deeds of trust and repayable between 30 and 55 years or under certain conditions including sale of the housing unit. CDBG Rehab Loans total $837,611 and are repayable between 2046 and 2049; and HOME grant loans total $367,398 and are repayable between 2046-2049.

In addition, the total notes receivable also includes $4,251,614, a loan made from the proceeds of a HOME grant funded by a federal grant passed through the State of California. The loan bears interest at 3 percent per annum, matures in 55 years, and is secured by a deed of trust on an affordable housing multi-family complex. The loan is repayable starting the first fiscal year following the first year of the project’s operations from and to the extent of available cash flows as defined in the agreement.

The composition of inter-fund transfers of June 30, 2022, is as follows:

Transfers In Transfers Out
General Fund $ 341,600 $ 613,563
Non-major governmental funds 1,368,505 513,776
Internal Service Fund 84,370 -
Water 69,385 758,121
Waste Water 21,600 -
Totals $ 1,885,460 $ 1,885,460
The General Fund also transferred out $373,902 for the WestAmerica debt service annual payment.

In addition, the Water Fund made a transfer in the amount of $716,405 to the Measure A fund for Capital Projects. The Gas Tax Fund, Road Maintenance, Quality of Life Fund, and the Transportation Fund transferred into the General Fund for capital improvement projects of $341,600.

Item #7.3.

Page 104 of 701 ends

City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 25 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
C. Inter-fund Transfers, Receivables, and Payables
The composition of Due to/Due From was:

Receivable
Fund
Payable
Fund
General Fund $ 659,384 $ -
Transportation 355,651 -
CDBG Loan Repayment 46,773 -
Tree Mitigation 31,158 -
MTC Street - 355,651
CDBG Revolving Loan - 46,773
Waste Water - 659,384
Debt Service - 31,158
Totals $ 1,092,966 $ 1,092,966
Inter-fund balances are presented in the Government-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities.

Due to/Due From Other Funds
From the CDBG Loan Repayment Fund to the City Debt Service fund to offset negative cash balance.

From the Transportation Fund to the MTC Street Fund to offset negative cash balance.

From the Tree Mitigation Fund to the MTC Street Fund to offset negative cash balance.

From the General Fund to the Wastewater Fund to help fund costs for capital projects.

D. Capital Assets
Governmental-Type Activities
Capital asset activity relating to governmental activities for the year ended June 30, 2022, was as follows:

Beginning
Balance Increases Decreases
Ending
Balance
Governmental-type activities:

Capital assets, not being depreciated:

Land $ 3,668,126 $ - $ - $ 3,668,126
Construction in progress 397,492 803,669 - 1,201,161
Total capital assets, not being depreciated 4,065,618 803,669 - 4,869,287 Capital assets, being depreciated
Buildings 3,909,946 - - 3,909,946
Improvements 15,538,594 328,877 - 15,867,471
Machinery and equipment 1,184,576 55,021 - 1,239,597
Equipment – internal service funds 4,123,304 160,858 - 4,284,162 Infrastructure 12,679,047 155,178 - 12,834,225
Total capital assets, being depreciated 37,435,467 699,934 - 38,135,401 Less accumulated depreciation for:

Buildings (2,509,506) (116,119) - (2,625,625)
Improvements (2,263,386) (760,068) - (3,023,454)
Machinery and equipment (870,454) (32,870) - (903,324)
Equipment – internal service funds (2,652,743) (137,215) - (2,789,958) Infrastructure (4,583,351) (405,036) - (4,988,387)
Total accumulated depreciation (12,879,440) 1,451,308) - (14,330,748) Total capital assets, being depreciated, net 24,556,027 (751,374) - 23,804,653 Governmental activities capital assets net $28,621,645 $ 52,295 $ - $28,673,940 Item #7.3.

Page 105 of 701 ends

City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 26 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
D. Capital Assets (concluded)
Depreciation expense was charged to functions/programs of the City as follows:

Governmental activities:

General government $ 43,539
Public safety 145,130
Community services 124,022
Recreation services 188,670
Public works 812,732
Capital assets held by internal service funds 137,215
Total depreciation expense - governmental activities $ 1,451,308 Business-Type Activities
Capital asset activity relating to business-type activities for the year ended June 30, 2022, was as follows:

Beginning
Balance Increases Decreases
Ending
Balance
Business-type activities:

Capital assets, not being depreciated:

Land $ 2,802,838 $ - $ - $ 2,802,838
Construction in progress 1,097,414 462,841 - 1,560,255
Total capital assets, not being depreciated 3,900,252 462,841 - 4,363,093 Capital assets, being depreciated
Wastewater collection and treatment 24,659,873 - - 24,659,873 Water rights 1,589,875 - - 1,589,875
Wastewater treatment/distribution syst. 24,431,913 - - 24,431,913 Equipment - waste water 1,215,772 31,067 1,246,839
Equipment - water 1,402,944 8,976 - 1,411,920
Total capital assets, being depreciated 53,300,377 40,043 - 53,340,420 Less accumulated depreciation for:

Wastewater collection and treatment (12,503,251) (896,463) - (13,399,714) Water rights (867,081) (48,990) - (916,071)
Wastewater treatment/distribution syst. (8,986,554) (573,151) - (9,559,705) Equipment - waste water (971,303) (87,494) - (1,058,797) Equipment - water (1,035,833) (44,975) - (1,080,808)
Total accumulated depreciation (24,364,022) (1,651,073) - (26,015,095) Total capital assets, being depreciated, net 28,936,355 (1,611,030) - 27,325,325 Business-type activities capital assets net $32,836,607 $(1,148,189) $ - $31,688,418 Depreciation expense was charged to functions/programs of the City as follows:

Business-type activities:

Water $ 618,126
Water rights 48,990
Waste water 983,957
Total depreciation expense – business-type activities $ 1,651,073 Item #7.3.

Page 106 of 701 ends

City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 27 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
E. Long-Term Debt
Long-term debt activity for the 2022 fiscal year was as follows:

Governmental Activities:

Beginning
Balances Additions Deductions
Ending
Balances
Due Within
One Year
Capital Lease obligation $ 2,298,060 $ - $ 321,114 $ 1,976,946 $ 329,330 Totals $ 2,298,060 $ - $ 321,114 $ 1,976,946 $ 329,330
Business-type Activities:

Beginning
Balances Additions Deductions
Ending
Balances
Due Within
One Year
State Revolving Fund Loan $ 1,036,933 $ - $ 336,631 $ 700,302 $ 345,382 2011 Certificates of Participation 2,650,852 - 69,000 2,581,852 71,000 2018 Certificates of Participation 3,390,000 - 170,000 3,220,000 180,000 2018 Certificates of Participation 4,175,000 - 285,000 3,890,000 295,000 Totals $11,252,785 $ - $ 860,631 $10,392,154 $ 891,382
Capital Leases – Governmental-type Activities including Internal Service In fiscal 2008, the City entered into a capital lease arrangement in an original amount of $4,674,000 with WestAmerica Bank for the purpose of obtaining financing to make improvements to pool, recreation, fire, and public works facilities. In fiscal year 2016, the City reset the lease to minimize the overall costs of the 2008 lease. The new loan amount is $3,870,414. Resetting the interest rate on the 2007 Lease generates total savings of approximately $619,994. Net present value savings are approximately $517,692 or 13.54%. The lease is payable in monthly installments of between $24,000 and $35,700 commencing July 1, 2016, and continuing through February 1, 2028. The lease bears interest at 2.44 percent per annum. The leasing arrangement included a lease between the City of Calistoga and the Calistoga Public Facilities Corporation, a blended component unit of the City. The lease receivable and payable between the City and its component unit financing corporation has been eliminated from these financial statements. The City has not pledged any specific revenue source for repayment of the lease but has agreed to appropriate sufficient resources from any source of legally available funds to make the payments.

Future minimum lease payments and the net present value of these minimum lease payments as of June 30, 2022, were as follows:

Period Ending June 30, Principal Interest Total
2023 $ 329,330 $ 44,571 $ 373,901
2024 337,457 36,445 373,902
2025 345,783 28,118 373,901
2026 354,316 19,586 373,903
2027 363,058 10,843 373,901
2028 247,002 2,265 249,267
Total $ 1,976,946 $ 141,828 $ 2,118,774
Water Enterprise
2011 Certificates of Participation
In July 2011, the City entered into an installment purchase agreement with the Calistoga Public Facilities Financing Corporation for $3,750,000 wherein the City agreed to make installment payments to the Corporation in exchange for the Corporation obtaining financing to fund water treatment plant improvements by issuing Certificates of Participation.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 28 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
E. Long-Term Debt (continued)
The United States Department of Agriculture (USDA) provided a $3,750,000 loan to the Corporation to provide financing for the subject improvements and for the repayment to the City of construction costs and other improvements made by the City's water enterprise. The USDA provided the loan by purchasing the Certificates of Participation referred to above. The installment agreement receivable and payable between the Corporation and the City has been eliminated from these financial statements as the Corporation is a blended component unit of the City, and the $3,750,000 is reported by the City as long-term debt (the certificates of participation) of the City's water enterprise fund.

Under the arrangements, the City has pledged net revenues of the water enterprise as security for the payment of the certificates of participation. The City is also obligated to fund a reserve fund in an amount equal to $148,237 with funding of this reserve to be made over a ten-year period. The certificates bear interest at 2.5 percent and principal/interest payments are due each January 1 and July1 through July 1, 2051.

Under the arrangement, the USDA shall fund the purchase price of the certificates from time to time by paying cash advances to the Trustee. Interest shall begin to accrue only upon disbursement of funds by USDA to the Trustee. As of June 30, 2014, the USDA had obligated funding of $3,750,000, had drawdowns of $3,203,852 to the City and there was a $546,148 undisbursed balance on the USDA Loan. The Mount Washington Tank which was funded through the Certificates of Participation has been completed; therefore, the undisbursed balance will not be used by the City.

Final payment on the loan is scheduled for 2048. For fiscal year 2021, Capital Contribution Revenues amounted to $561,326 and operating costs including operating expenses, but not interest or depreciation amounted to $3,132,278. Net Revenues available for debt service amounted to $1,204,757 which represents 892% of the $135,121 in debt service. The City made a principal payment of $68,000 and an interest payment of $67,121 during the fiscal year so the outstanding receivable of $2,650,852, which represents the City’s liability at June 30, 2022 for the Certificates.

Future debt service principal and interest remaining to be paid on the agreement is approximately $3,649,538. Principal and interest combined on the certificates will require the City to make annual payments which in the aggregate are expected to be from $69,000 to $132,000 each fiscal year.

Future debt service for water on the Certificates of Participation is:

Item #7.3.

Page 108 of 701 ends

City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 29 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
E. Long-Term Debt (continued)
Period Ending June 30, Principal Interest Total
2023 $ 71,000 $ 63,659 $ 134,659
2024 73,000 61,859 134,859
2025 75,000 60,009 135,009
2026 77,000 58,109 135,109
2027 79,000 56,159 135,159
2028 80,000 54,171 134,171
2029 82,000 52,146 134,146
2030 85,000 50,059 135,059
2031 87,000 47,909 134,909
2032 89,000 45,709 134,709
2033 91,000 43,459 134,459
2034 93,000 41,159 134,159
2035 96,000 38,796 134,796
2036 98,000 36,371 134,371
2037 101,000 33,884 134,884
2038 103,000 31,334 134,334
2039 106,000 28,721 134,721
2040 108,000 26,046 134,046
2041 111,000 23,309 134,309
2042 114,000 20,496 134,496
2043 117,000 17,609 134,609
2044 120,000 14,646 134,646
2045 123,000 11,609 134,609
2046 126,000 8,496 134,496
2047 129,000 5,309 134,309
2048 132,000 2,046 134,046
2049 15,852 198 16,050
Total $ 2,581,852 $ 933,277 $ 3,515,129
2018 Certificates of Participation
In May 2018, the City entered into an installment purchase agreement with the Calistoga Public Facilities Financing Corporation(CPFFC) for the refunding of $3,255,000, an outstanding purchase agreement dated as of November 1, 2005, between the California Statewide Communities Development Authority (CSCDA) and the City, and an installment purchase agreement with the CPFFC and USDA for the refunding of $1,728,556, an outstanding purchase agreement dated as of March 27, 2008, between the USDA and the City of which issuances were for the purpose of financing the costs of certain public facilities constituting a part of the City’s water enterprise for improvements by issuing Certificates of Participation in the amount of $3,905,000.

The obligation of the water enterprise to pay its share of the installment payments will be secured by an irrevocable pledge of the Water’s Net Revenues.

Final payment on the loan is scheduled for 2045. The outstanding receivable of $3,390,000 represents the City’s liability at June 30, 2022 for the Certificates. Future debt service principal and interest remaining to be paid on the agreement is approximately $4,544,903. Principal and interest combined on the certificates will require the City to make annual payments which in the aggregate are expected to be from $70,000 to $255,000 each fiscal year.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 30 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
E. Long-Term Debt (continued)
The refinancing of the bonds reduced the debt service interest payments by approximately $36,739 per year and total debt service savings by $815,844. This translates into a net present value of $430,996 and 8.7% net present savings as a percentage of refunded principal. The reacquisition price exceeds the net carrying value for the old debt by $47,656. There is no defeased debt outstanding as of June 30, 2022.

Future debt service for water on the Certificates of Participation is:

Period Ending June 30, Principal Interest Total
2023 $ 180,000 $ 119,481 $ 299,481
2024 185,000 111,256 296,256
2025 195,000 101,756 296,756
2026 205,000 91,756 296,756
2027 215,000 81,256 296,256
2028 225,000 71,381 296,381
2029 235,000 62,181 297,181
2030 245,000 53,959 298,959
2031 250,000 46,688 296,688
2032 255,000 39,113 294,113
2033 65,000 34,272 99,272
2034 65,000 32,200 97,200
2035 70,000 30,006 100,006
2036 70,000 27,688 97,688
2037 75,000 25,241 100,241
2038 75,000 22,663 97,663
2039 80,000 19,950 99,950
2040 80,000 17,150 97,150
2041 85,000 14,263 99,263
2042 85,000 11,288 96,288
2043 90,000 8,225 98,225
2044 95,000 4,988 99,988
2045 95,000 1,663 96,663
Total $ 3,220,000 $ 1,028,422 $ 4,248,422
Wastewater Enterprise
State of California Revolving Fund Loan
The City obtained a $5,609,999 loan from the State of California Department of Water Resources under the State Revolving Loan Program for the purpose of obtaining financing for construction of the City's wastewater treatment plant. The loan bears interest at 0.00 percent effective March 3, 2015 and is secured by a pledge of the City to maintain dedicated sources of revenue sufficient in amounts to provide for repayment of the loan. The interest rate is suspended and wholly replaced with the AB 2356 Small Community Grant Fund Charge effective March 3, 2015. Principal and grant fund charge on the loan is payable in annual installments due each October 30 through 2023. The Small Community Grant Fund charge is at one and six tenths’ percent (1.6%) per annum.

Item #7.3.

Page 110 of 701 ends

City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 31 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)
E. Long-Term Debt (continued)
Future debt service for the State of California Revolving fund loan is:

Period Ending June 30, Principal Interest Total
2023 $ 345,382 $ 18,208 $ 363,590
2024 354,920 9,228 364,148
Total $ 700,302 $ 27,436 $ 727,738
Annual principal and grant fund charge on the agreement are expected to require 79 percent of current system net revenues as defined. The total grant fund charge and principal remaining to be paid on the agreement is $1,091,329. For fiscal year 2021, Wastewater Fund Revenues amounted to $3,569,790 and operating costs including operating expenses, but not interest or depreciation, amounted to $2,407,145. Net Revenues available for debt service amounted to $1,162,645, which represents 320% of the $363,591 in debt service. Principal and grant fund charge paid for the current fiscal year and total system net revenues as defined were $363,591 and $1,162,645 (exclusive of $56,785) in capital contributions), respectively.
2018 Certificates of Participation
In May 2018, the City entered into an installment purchase agreement with the Calistoga Public Facilities Financing Corporation (CPFFC) for the refunding of $2,230,000, an outstanding purchase agreement dated as of August 1, 2001, between the California Statewide Communities Development Authority (CSCDA) and the City, and an installment purchase agreement with the CPFFC and USDA for the refunding of $1,628,700, an outstanding purchase agreement dated as of May 2005, between the USDA and the City.

The issuances were for the purpose of financing the costs of certain public facilities constituting a part of the City’s wastewater enterprise for improvements by issuing Certificates of Participation in the amount of $5,015,000 in May 2018.

The obligation of the wastewater enterprise to pay its share of the installment payments will be secured by an irrevocable pledge of the Wastewater’s Net Revenues.

Final payment on the loan is scheduled for 2043. The outstanding receivable of $4,175,000 represents the City’s liability at June 30, 2022 for the Certificates. Future debt service principal and interest remaining to be paid on the agreement is approximately $5,554,481. Principal and interest combined on the certificates will require the City to make annual payments which in the aggregate are expected to be from $96,663 to $442,000 each fiscal year.

The refinancing of the bonds reduced the debt service interest payments by approximately $36,866 per year and total debt service savings by $695,887. This translates into a net present value of $380,176 and 8.15% net present savings as a percentage of refunded principal. The reacquisition price exceeds the net carrying value for the old debt by $27,379. There is no defeased debt outstanding as of June 30, 2022.

Future debt service on the 2018 Certificates of Participation is:

Item #7.3.

Page 111 of 701 ends

City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 32 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (concluded)
E. Long-Term Debt (concluded)
Period Ending June 30, Principal Interest Total
2023 $ 295,000 $ 142,237 $ 437,237
2024 310,000 128,588 438,588
2025 325,000 112,713 437,713
2026 155,000 100,713 255,713
2027 160,000 92,838 252,838
2028 170,000 85,438 255,438
2029 180,000 78,438 258,438
2030 185,000 72,178 257,178
2031 190,000 66,669 256,669
2032 200,000 60,819 260,819
2033 200,000 54,694 254,694
2034 210,000 48,156 258,156
2035 215,000 41,250 256,250
2036 225,000 33,959 258,959
2037 230,000 26,281 256,281
2038 85,000 20,913 105,913
2039 85,000 17,938 102,938
2040 90,000 14,875 104,875
2041 90,000 11,725 101,725
2042 95,000 8,488 103,488
2043 100,000 5,075 105,075
2044 95,000 1,663 96,663
Total $ 3,890,000 $ 1,225,648 $ 5,115,648
Compensated Absences
The City records a liability to recognize the financial effect of unused vacation and other compensated leaves. As of June 30, 2022, the total liability for vacation and other compensated leave is $591,982.

The City typically uses the General fund, Water and Wastewater funds to liquidate the majority of its compensated absences.

Compensated absence activity for the 2022 fiscal year was as follows:

Beginning
Balances Additions Deductions
Ending
Balances
Due Within
One Year
Governmental Activities: $ 440,547 $ 423,801 $ 310,547 $ 553,801 $ 387,661 Business-type Activities: 151,434 147,892 131,434 167,892 147,892 Totals $ 591,981 $ 571,693 $ 441,981 $ 721,693 $ 535,553 NOTE 5 - OTHER INFORMATION
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries insurance. The City participates as a member of the Public Agency Risk Sharing Authority of California (PARSAC). The Authority is a joint powers agency providing joint protection programs for public entities.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 33 -
NOTE 5 - OTHER INFORMATION (continued)
A. Risk Management (concluded)
The Authority provides general liability, workers compensation and property insurance coverage to member entities. Under the liability program, the City has a $10,000 retention limit similar to a deductible with the Authority being responsible for losses above that amount up to $1 million. The Authority carries purchased excess insurance above that amount to cover losses up to $35 million.

The City has a $25,000 deductible for workers compensation claims, and PARSAC covers workers compensation claims up to the first $475,000 per claim and carries excess commercial insurance above that amount to cover losses up to $5 million. Property coverage is commercial insurance jointly purchased with other public entities throughout the State. The commercial coverage is one billion for the collective members with various sub-limits by type of coverage and property.

The City's obligation is to pay annual premiums billed by the Authority. The PARSAC periodically may make retrospective premium adjustments and the City would be required to pay its prorata share of such adjustments.

Liabilities of the City are reported in the statement of net position for the governmental activities when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated.

Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claim’s liability estimate. Settlements have not exceeded coverage for each of the past three fiscal years except for the contract settlements incurred in Fiscal Year 2020-2021.

Changes in the balances of claims liabilities during the past two years are as follows:

Year
Ended
6/30/20
Year
Ended
6/30/21
Year
Ended
6/30/22
Unpaid claims, beginning of fiscal year $ 28,698 $ 15,888 $ 15,888 Incurred claims (including IBNRs) - - -
Claim payments (12,810) 13,431 13,431
Unpaid claims, end of fiscal year $ 15,888 $ 29,319 $ 29,319 B. Contingencies and Commitments
Litigation. The City is involved in litigation incurred in the normal course of conducting City business.

Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Grants and allocations. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 34 -
NOTE 5 - OTHER INFORMATION (continued)
C. Pension Plans
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plans and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

General Information about thePension Plans
Plan Descriptions -All qualified employees are eligible to participate in the City's following costsharing multiple-employer defined benefit pension plans (Plans):
• City Miscellaneous (Tier 1)
• City Miscellaneous (Tier 2)
• City Miscellaneous (Tier 3)
• City Safety (Tier 1)
• City Safety (Tier 2)
• City Safety (Tier 3)
The Plans are administered by the California Public Employees' Retirement System (CalPERS).

Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 55, 57, 60 or 62 depending on the costsharing pension plan with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

City Miscellaneous Plan
Tier 1 Tier 2 Tier 3
Hire date Prior to May 1,
2012
On or after May 1,
2012
On or after
January 2, 2013
Benefit formula 2.5% @ 55 2% @ 60 2%@62
Benefit vesting schedule 5 years’ service 5 years’ service 5 years’ service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-63 50-63 52-67
Monthly benefit, as a %
of eligible compensation 1.43% to 2.42% 1.43% to 2.42% 1.0% to 2.5% Required employee
contribution rates 8.0% 7.0% 6.25%
Required employer
contribution rates 10.11% 7.2% 6.533%
Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 35 -
NOTE 5 - OTHER INFORMATION (continued)
C. Pension Plans (continued)
The City’s Miscellaneous and Safety Rate Plans are part of the public agency cost-sharing multipleemployer defined benefit pension plan (PERF C), which is administered by the California Public Employee’s Retirement System (CalPERS). PERF C consists of a miscellaneous pool and safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors six rate plans (three miscellaneous and three safety).

Contributions – Section 20814(‘c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS.

The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the contributions recognized as part of pension expense for each Plan were as follows:

City Safety Plan
Tier 1 Tier 2 Tier 3
Hire date Prior to May 1,
2012
On or after May 1,
2012
On or after
January 2, 2013
Benefit formula 3% @ 55 2% @ 55 2% @ 57
Benefit vesting schedule 5 years’ service 5 years’ service 5 years’ service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-55 50-57
Monthly benefit, as a %
of eligible compensation 3% 2.4% to 3% 2.0% to 2.7%
Required employee
contribution rates 9.0% 7.0% 9.5%
Required employer
contribution rates 17.875% 12.242% 9.513%
City Miscellaneous Plan
Tier 1 Tier 2 Tier 3
Employer Contributions $601,673 $48,913 $146,742
City Safety Plan
Tier 1 Tier 2 Tier 3
Employer Contributions $425,983 $35,672 $182,110
Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 36 -
NOTE 5 - OTHER INFORMATION (continued)
C. Pension Plans (continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported net pension liabilities for its proportionate share of the net pension liability of each Plan as follows:

The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2021, and the total net pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. Pension obligations typically have been liquidated in the General Fund and Proprietary Funds.

The City’s proportionate share of the net pension liability for each Plan as of June 30, 2021, and 2022 was as follows:

For the year ended June 30, 2022, the City recognized pension expense of $297,265; At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$1,441,093 reported as deferred outflows of resources related to contributions after the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Proportionate
Share of Net
Pension Liability
City Miscellaneous $ 1,676,968
City Safety 3,230,489
Total Net Pension Liability $ 4,907,457
Proportion - June 30, 2021 0.09075%
Proportion - June 30, 2022 0.09074%
Change – Increase (Decrease) (0.00001)%
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 1,441,093 $ - Differences between actual and expected experience 648,773 - Changes in assumptions - -
Net differences between projected and actual earnings
on plan investments 514,423 3,818,164
Change in proportions and differences between actual
contributions and proportionate share of contributions 157,955 816,103 Total $ 2,762,244 $ 4,634,267
Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 37 -
NOTE 5 - OTHER INFORMATION (continued)
C. Pension Plans (continued)
Actuarial Assumptions – For the measurement period ended June 30, 2021, the total pension liabilities were determined by rolling forward the June 30, 2019, total pension liability. The June 30, 2020, and June 30, 2021, total pension liabilities were based on the following actuarial methods and assumptions:
(1) Net of pension plan investment expenses, including inflation. (2) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the CalPERS 2014 experience available on CalPERS website.

Change of Assumptions – There were no changes in assumptions for the measurement date June 30, 2021.

Discount Rate – The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for public agency plans (including PERF C), CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate, and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund including PERF C. The stress test results are presented in a detailed report that can be obtained from the CalPERS’ website.

The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, staff took into account both short-term and longterm market return expectations as well as the expected pension fund (Public Employee’s Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years.

Year Ended June 30 Miscellaneous Safety
2023 $ (552,707) $ (118,021)
2024 (592,626) (150,089)
2025 (645,385) (200,304)
2026 (779,315) (274,669)
Total $ (2,570,033) $ (743,083)
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.15% (1)
Mortality Derived using CalPERS Membership Data for all Funds (2) Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 38 -
NOTE 5 - OTHER INFORMATION (continued)
C. Pension Plans (concluded)
Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate.

Expected Average Remaining Service Lives (EARSL) - The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2021, is 3.7 years, which was obtained by dividing the total service years of 561,622 (the sum of remaining service lifetimes of the active employees) by 150,648 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Asset Class
New
Strategic
Allocation
Real
Return
Years 1-10
Real
Return
Years 11+
Global equity 50.0% 4.80% 5.98%
Global fixed income 28.0% 1.00% 2.62%
Inflation sensitive 0.0% 0.77% 1.81%
Private equity 8.0% 6.30% 7.23%
Real assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% (0.92)%
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $6,602,480 $3,427,391
Current Discount Rate 7.15% 7.15%
Net Pension Liability $3,230,489 $1,676,968
1% Increase 8.15% 8.15%
Net Pension Liability $(92,007) $(47,761)
Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 39 -
NOTE 5 - OTHER INFORMATION (continued)
D. Restricted Net Position and Governmental Fund Balances The $14,526,512, restricted amount in the governmental activities statement of net position represent amounts to be used only for specific purposes which restrictions are imposed by laws, formal agreements, or other governments. Of the $14,526,512 for governmental activities, $10,024,202 is restricted for housing and community development, $602,248 is restricted for public safety, and $3,900,062 is for streets and other purposes.

The fund balances of the City’s governmental funds are essentially all restricted as to their availability for future uses except for the $13,325,037 in the General Fund. The $765,503 consists of nonspendable amounts in prepayments and advances to other funds.

E. Post-Employment Benefits Other than Pensions
Plan Description. The City administers the City’s retired employees’ health care plan, a single employer defined benefit health care plan. The plan provides medical benefits to eligible retired City employees and their beneficiaries. The City provides medical benefits through the CalPERS healthcare program, pursuant to the Public Employees’ Medical and Hospital Care (PEMHCA), currently paying $121.55 for employees retiring directly from the City. For unrepresented retirees with at least 10 years of City service, the City pays an additional portion of the retiree’s medical premium.

Retirees may also continue the City’s dental coverage but are required to pay the full premium if they do so. The City’s plan is affiliated with the State of California CalPERS in so far as the City’s health insurance premium payments are paid to CalPERS. CalPERS, through an aggregation of single employer plans, pools administrative functions in regard to purchases of commercial health care policies and coverages. City regulations and resolutions assign authority to establish and amend plan provisions to the City. Separate financial statements of the Plan are not issued by the City as a separate OPEB Trust or equivalent arrangement has not been established by the City.

Funding Policy. The contribution requirements of the Plan members and the City are established and may be amended by the City. Current OPEB contributions are equal to the current year’s projected pay-as-you-go amounts. The City has not yet done so but may choose to establish an irrevocable OPEB trust and make additional contributions to such trust to prefund benefits as determined annually by the City Council. The medical coverage available to retirees creates both an implicit and explicit subsidy liability. An explicit subsidy exists when the employer contributes directly toward the cost of retiree healthcare. An implicit subsidy exists when the premiums charged for retirees’ coverage are lower than the expected retiree claims for that coverage. In the CalPERS medical program, the same monthly premiums are charged for active employees and for pre-Medicare retirees, which results in an implicit subsidy of retiree premiums.

The agency’s funding policy affects the calculation of liabilities by impacting the discount rate that is used to develop the plan liability and expense. When a plan is “prefunded” sufficiently to project that the plan trust will be sufficient to pay all future plan benefits, then the discount rate will be equal to the expected earnings on trust assets. If funding is on a pay-as-you-go basis, paying only the required retiree benefits when due, then GASB 75 requires the use of a discount rate equal to a 20-year high grade municipal bond rate.

Because the City is currently financing this plan on a pay-as-you-go plan, the discount rate used in the GASB 75 valuation was based on the Fidelity Municipal Bond AA 20-year maturity yield index.

As of the beginning and end of the Measurement Period, this index results in discount rates of 1.92% as of June 30, 2021, and 2.45% as of June 30, 2020.

Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 40 -
NOTE 5 - OTHER INFORMATION (continued)
E. Post-Employment Benefits Other than Pensions (continued) Employees Covered by Benefit Terms – membership in the Plans consisted of the following at the measurement date of June 30, 2021:

Category Count
Active plan members: 62
Inactive employees, spouses, or beneficiaries currently receiving benefit payments: 14 Total 76
Net OPEB Liability. The District's net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020.

Actuarial Assumptions. The total OPEB liability in the June 30, 2020, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
(1) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the CalPERS 2017 experience study report available on CalPERS website. The actuary backed out the Scale BB improvement and replaced this with improvement using MacLeod Watts Scale 2020.

Discount Rate
The projection of cash flows used to determine the discount rate assumed that the City contribution will pay annual retiree benefits when due but contribute no additional amounts to the plan. The discount rate was set to the Fidelity Municipal Bond AA 20 Year Maturity Yield Index.

The discount rate used to measure the total OPEB Liability was 1.92%. Healthcare cost trend rate was assumed to start at 5.2% (increase effective January 1, 2023) and grade down to 4% for years 2076 and thereafter.

Changes in Net OPEB Liability
The Changes in the net OPEB liability for each plan follows:

Discount Rate

1.92% as of June 30, 2021

2.45% as of June 30, 2020
Inflation 2.50%
Aggregate Salary Increases
(individual salary increases based on CalPERS) 3.00%
Mortality rates (1) Based on CalPERS tables
Healthcare cost trend rate 5.4% in the first year, trending down to

4.0% over 55 years
Item #7.3.

Page 120 of 701 ends

City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 41 -
NOTE 5 - OTHER INFORMATION (continued)
E. Post-Employment Benefits Other than Pensions (continued) 2022
Total OPEB Liability
Service Cost $ 210,912
Interest 66,500
Benefit payments, including refunds of employee contributions (72,152) Changes of Assumptions -
Differences Between Expected and Actual Experience -
Change due to change in discount rate 229,033
Net change in total OPEB liability 434,293
Total OPEB liability – beginning of year 2,539,452
Total OPEB liability – end of year $ 2,973,745
Plan Fiduciary Net Position
Net Investment Income $ -
Contributions -
Employer - explicit subsidy -
Employer - implicit subsidy -
Net Investment Income -
Benefit Payments, including refunds of employee contributions - Implicit Subsidy Credit -
Administrative expenses -
Net Change in plan fiduciary net position -
Plan fiduciary net position – beginning of year -
Plan fiduciary net position – end of year -
City’s net OPEB Liability – end of year $ 2,973,745
OPEB obligations typically have been liquidated in the General Fund.

Sensitivity of Liabilities to Changes in the Discount Rate and Healthcare Cost Trent Rate The total and net OPEB liability of the City, as well as what the City’s total and net OPEB liability would be if they were calculated using a discount rate that is one percentage point lower or one percentage point higher follows:

OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized an OPEB expense of $244,448. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Miscellaneous Safety
1% Decrease 0.92% -1.00%
Net Pension Liability $3,485,253 $2,485,614
Current Discount Rate 1.92% Current Trend
Net Pension Liability $2,973,745 $2,973,745
1% Increase 2.92% 1.00%
Net Pension Liability $2,562,245 $3,615,759
Item #7.3.

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City of Calistoga

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
- 42 -
NOTE 5 - OTHER INFORMATION (concluded)
E. Post-Employment Benefits Other than Pensions (concluded) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal Year Ended
2023 $ (32,964)
2024 (32,964)
2025 (32,964)
2026 (32,964)
2027 (32,964)
Remaining 32,112
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to measurement date $ 61,434 $ - Differences between actual and expected experience - 397,752 Changes of assumptions 484,955 219,911
Net difference between projected and actual earnings
on OPEB plan investments - -
Change in employer’s proportion and differences
between the employer’s contributions and the
employer’s proportionate share of contributions - -
Total $ 546,389 $ 617,663
Item #7.3.

Page 122 of 701 ends

Original Final
Actual
Amounts
Variance with
Final Budget
Positive

REVENUES
Property taxes $ 2,078,440 $ 2,078,440 $ 3,143,738 $ 1,065,298 Sales taxes 1,111,000 1,336,905 1,536,214 199,309
Transient occupancy taxes 5,075,861 10,400,000 11,792,363 1,392,363 Other taxes 827,275 863,270 498,826 (364,444)
Licenses and permits 116,000 116,000 441,998 325,998
Fines and forfeits 14,000 14,000 14,531 531
Intergovernmental 80,000 265,932 1,455,001 1,189,069
Interest and rents 40,000 25,000 (233,795) (258,795)
Charges for services 1,769,663 1,991,613 445,964 (1,545,649) Miscellaneous 50,000 62,425 - (62,425)
Total revenues 11,162,239 17,153,585 19,094,840 1,941,255

EXPENDITURES
Current:

General government 2,640,573 2,703,766 1,878,874 824,892 Public safety 5,804,128 6,285,144 5,903,827 381,317
Community services 818,215 960,621 860,345 100,276
Recreation services 347,463 358,167 859,885 (501,718)
Public works 1,903,635 1,951,042 2,496,030 (544,988)
Planning and building 896,780 937,593 530,728 406,865
Debt service: - - - -
Principal - - - -
Interest - - - -
Capital outlay 1,854,867 1,729,912 402,591 1,327,321
Total expenditures 14,265,661 14,926,245 12,932,280 1,993,965 Excess (deficiency) of revenues over
expenditures (3,103,422) 2,227,340 6,162,560 3,935,220

OTHER FINANCING SOURCES (USES)
Transfers in 1,227,926 1,100,128 341,600 (758,528)
Transfers out (508,059) (592,494) (613,563) (21,069)
Total other financing sources (uses) 719,867 507,634 (271,963) (779,597) Net change in fund balances $ (2,383,555) $ 2,734,974 5,890,597 $ 3,155,623 Fund balances, July 1 8,199,943
Fund balances, June 30 $ 14,090,540
Budgeted Amounts
City of Calistoga

BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Fiscal Year Ended June 30, 2022
Required Supplementary Information
- 43 -
Item #7.3.

Page 123 of 701 ends

2014 2015 2016 2017 2018 2019 2020 2021

0.082210% 0.217692% 0.000000% 0.48000% 0.058754% 0.053534% 0.054861% 0.059888% 5,115,809 5,968,142 6,838,433 6,459,856 5,661,700 5,485,683 5,969,166 3,230,489 Plan's covered payroll 2,067,261 2,067,261 2,067,261 2,067,261 2,067,261 2,067,261 3,284,369 3,202,047 277.67% 288.70% 330.80% 312.48% 273.87% 265.36% 181.74% 100.89% total pension liability 69.77% 66% 74.06% 73.31% 75.26% 75.26% 75.10% 88.29% 2014 2015 2016 2017 2018 2019 2020 2021

0.060900% 0.092536% 0.058670% 0.310000% 0.037333% 0.033933% 0.035888% 0.030852% 3,789,935 3,809,042 4,343,184 4,055,661 3,597,524 3,477,138 3,904,765 1,676,968 Plan's covered payroll 1,206,006 1,222,660 1,303,114 1,179,222 1,433,486 1,654,613 1,675,108 2,087,336 314.26% 311.54% 333.29% 343.93% 250.96% 210.15% 233.11% 80.34% total pension liability 67.58% 69% 74.06% 73.31% 75.26% 75.26% 75.10% 88.29% *Fiscal year 2014 was the 1st year of implementation.

Safety Plan
City Of Calistoga

REQUIRED SUPPLEMENTARY INFORMATION
COST SHARING MULTIPLE-EMPLOYER DEFINED PENSION PLAN - LAST EIGHT (8) YEARS*

SCHEDULE OF PLAN'S PROPORTIONATE SHARE OF NET PENSION LIABILITY AND RELATED RATIOS AS OF MEASUREMENT DATE Miscellaneous Plan
Plan's proportion share of the net pension
liability (asset)
Plan's proportionate share of the net pension
liability/asset as a percentage of
Plan's proportion of the net pension liability
(asset)
Plan's proportion share of the fiduciary net
position as a percentage of the plan's
the plan's total pension liability
Plan's proportion share of the fiduciary net
position as a percentage of the plan's
Plan's proportion of the net pension liability
(asset)
Plan's proportion share of the net pension
liability (asset)
Plan's proportionate share of the net pension
liability/asset as a percentage of
the plan's total pension liability
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2014 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $ 400,634 $ 445,033 $ 568,838 $1,693,684 $1,175,752 $1,218,132 $ 638,717 $ 698,316 $ 797,328 Contributions in relation to the
actuarially determined contributions (400,634) (445,033) (568,838) (1,693,684) (1,175,752) (1,218,132) (638,717) (698,316) (797,328) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $2,067,261 $2,067,261 $2,067,261 $2,067,261 $2,067,261 $2,067,261 $3,284,369 $3,202,047 $4,114,477 Contributions as a percentage
of covered payroll 19.38% 16.66% 27.52% 81.93% 56.87% 58.92% 19.45% 21.81% 19.38% *Fiscal year 2014 was the 1st year of implementation.

Notes to Required Supplementary Information
Benefit Changes
In 2015, benefit terms were modified to base miscelleaneous pensions on a final three-year average salary instead of a final one-year average salary.

Changes in assumptions
In 2015, amounts reported as changes in assumptions
resulted primarily from adjustments to expected retirement ages of general employees.

Fiscal Year
City of Calistoga

REQUIRED SUPPLEMENTARY INFORMATION
COST SHARING MULTIPLE-EMPLOYER DEFINED PENSION PLAN - LAST NINE (9 YEARS*)

SCHEDULE OF CONTRIBUTIONS
Miscellaneous Plan
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2014 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $ 351,214 $ 376,319 $ 454,373 $ 1,197,592 $ 839,584 $ 855,717 $ 491,713 $ 553,027 $ 643,765 Contributions in relation to the actuarially
determined contributions (351,214) (376,319) (454,373) (1,197,592) (839,584) (855,717) (491,713) (553,027) (643,765) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 1,222,660 $ 1,303,114 $ 1,179,222 $ 1,433,486 $ 1,654,613 $ 1,675,108 $ 1,937,953 $ 2,087,336 $ 2,119,579 Contributions as a percentage of covered payroll 28.73% 26.00% 38.53% 83.54% 50.74% 51.08% 25.37% 26.49% 30.37% *Fiscal year 2014 was the 1st year of implementation.

Notes to Required Supplementary Information
Benefit Changes
In 2015, benefit terms were modified to base public safety pensions on a final three-year average salary instead of a final one-year average salary.

Changes in assumptions
In 2015, amounts reported as changes in assumptions
resulted primarily from adjustments to expected retirement ages of general employees.

City of Calistoga
Required Supplementary Information
Cost Sharing Multiple-Employer Defined Pension Plan - Last nine (9 years*) Schedule of Contributions
Fiscal Year
Safety Plan
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Total OPEB Liability 2018 2019 2020 2021 2022
Service cost $ 197,549 $ 175,923 $ 154,218 $ 178,494 $ 210,912 Interest 73,616 87,379 81,914 81,893 66,500
Differences between expected and actual experience - (220,228) - (312,866) - Benefit payments, included refunds of employee contributions (72,400) (71,494) (61,775) (75,449) (72,152) Change in assumptions (244,214) (146,376) 161,790 191,745 229,033 Net change in total OPEB liability (45,449) (174,796) 336,147 63,817 434,293 Total OPEB liability - beginning of year 2,359,733 2,314,284 2,139,488 2,475,635 2,539,452 Total OPEB liability - end of year (a) $ 2,314,284 $ 2,139,488 $ 2,475,635 $ 2,539,452 $ 2,973,745 Plan Fiduciary Net Position
Net investment income
Contributions
Employer - explicit subsidy $ - $ - $ - $ - $ -
Employer - implicit subsidy - - - - -
Benefit payments, included refunds of employee contributions - - - - - Implicit rate subsidy fulfilled - - - - -
Administrative expense - - - - -
Net change in plan fiduciary net position - - - - -
Plan fiduciary net position - beginning of year - - - - - Plan fiduciary net position - end of year (b) $ - $ - $ - $ - $ - City's net OPEB liability - end of year = (a) - (b) $ 2,314,284 $ 2,139,488 $ 2,475,635 $ 2,539,452 $ 2,973,745 Plan net OPEB liability as a percentage of the covered
employee payroll 59.58% 49.92% 53.08% 47.97% 56.22%
Covered-employee payroll $ 3,884,193 $ 4,285,509 $ 4,664,407 $ 5,294,255 $ 5,289,383 Notes to Schedule:

The City adopted GASB 75 for the fiscal year ending June 30, 2019.

REQUIRED SUPPLEMENTARY INFORMATION
City of Calistoga
Fiscal Year Ending June 30:

For the Fiscal Year Ended June 30, 2022

CHANGE IN THE NET OPEB LIABILITY
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Gas Tax
Road Maint.
& Rehab Measure T
Parking
Ordinance Admin Fire Police
Transportation
CDBG Loan
Repayment
CDBG
Revolving
Loan
Palisades
Landscape
Maint.

Asset
Forfeiture
Affordable
Housing
Quality of
Life
Assets
Cash and investments $ 3,074 $ 290,428 $ 1,358,817 $ 132,062 $ 115,148 $ 126,330 $ 125,400 $ 356,087 $ 16,414 $ - $ 1,757 $ 18,133 $ 1,846,922 $ 72,935 Receivables:

Receivables from other
governments 9,893 18,385 162,084 - - - - - - - 18 - 146,466 - Accured interest receivable 4 379 1,972 173 150 165 164 930 83 - 3 24 2,413 94 Advances to other funds - - - - - - 355,651 46,773 - - - - - Prepaid items - - - - - - - - - - - - - -
Notes receivable - - - - - - - - 352,005 837,611 - - 827,000 - Total assets $ 12,971 $ 309,192 $ 1,522,873 $ 132,235 $ 115,298 $ 126,495 $ 125,564 $ 712,668 $ 415,275 $ 837,611 $ 1,778 $ 18,157 $ 2,822,801 $ 73,029 Liabilities and Fund Balances
Liabilities:

Accounts payable $ 2,812 $ - $ - $ - $ - $ - $ - $ - $ - $ 22,860 $ - $ - $ - $ - Advances from other funds - - - - - - - - - 46,773 - - - - Deposits - - - - - - - - - - - - - -
Total liabilities 2,812 - - - - - - - - 69,633 - - - -
Fund balances:

Restricted for streets 10,159 309,192 1,522,873 132,235 - - - 712,668 - - 1,778 - - - Restricted for parks - - - - - - - - - - - - - -
Restricted for public safety - - - - - 126,495 125,564 - - - - 18,157 - - Restricted for affordable housing - - - - - - - - 415,275 767,978 - - 2,822,801 - Restricted for facilities - - - - 115,298 - - - - - - - - 73,029 Unassigned - - - - - - - - - - - - - -
Total fund balances 10,159 309,192 1,522,873 132,235 115,298 126,495 125,564 712,668 415,275 767,978 1,778 18,157 2,822,801 73,029 Total liabilities and fund balances $ 12,971 $ 309,192 $ 1,522,873 $ 132,235 $ 115,298 $ 126,495 $ 125,564 $ 712,668 $ 415,275 $ 837,611 $ 1,778 $ 18,157 $ 2,822,801 $ 73,029 Special Revenue Funds
City of Calistoga

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2022
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Home
Silverado
Landscape
Maintenance
Abandoned
Vehicle Traffic Signal MTC Street Measure A
North West
Drainage
Recreation
Donation
Police
Donation Police Grants
Tree
Mitigation
Fire
Donation
Mobile
Home Park
City Debt
Service
Total Nonmajor
Governmental
Funds
Assets
Cash and investments $ 90,582 $ 5,660 $ - $ 178,867 $ - $ 717,107 $ 3,311 $ 7,911 $ 12,837 $ 309,282 $ 128,044 $ 1,007 $ 87,365 $ - $ 6,005,480 Receivables:

Receivables from other
governments - 33 - - 180,650 - - - - 8,484 - - - - 526,013 Accured interest receivable 118 8 - 234 - 937 4 10 17 404 208 1 114 - 8,609 Advances to other funds - - - - - - - - - - - - - - 402,424 Prepayments - - - - - - - - - - 31,158 - - 31,158 62,316 Notes receivable 367,398 - - - - - - - - - - - - - 2,384,014 Total assets $ 458,098 $ 5,701 $ - $ 179,101 $ 180,650 $ 718,044 $ 3,315 $ 7,921 $ 12,854 $ 318,170 $ 159,410 $ 1,008 $ 87,479 $ 31,158 $ 9,388,856 Liabilities and Fund Balances
Liabilities:

Accounts payable $ - $ - $ - $ - $ 26,113 $ - $ - $ - $ - $ - $ 19,250 $ - $ 72 $ - $ 71,107 Advances from other funds - - - - 355,651 - - - - - - - - 31,158 433,582 Deposits - - - - - - - - - - 65,270 - - - 65,270
Total liabilities - - - - 381,764 - - - - - 84,520 - 72 31,158 569,959 Fund balances:

Restricted for streets - 5,701 - 179,101 - 718,044 3,315 - - - 74,890 - - - 3,669,956 Restricted for parks - - - - - - - 7,921 - - - - - - 7,921 Restricted for public safety - - - - - - - - 12,854 318,170 - 1,008 - - 602,248 Restricted for affordable housing 458,098 - - - - - - - - - - - 87,407 - 4,551,559 Restricted for facilities - - - - - - - - - - - - - - 188,327 Unassigned - - - - (201,114) - - - - - - - - - (201,114) Total fund balances 458,098 5,701 - 179,101 (201,114) 718,044 3,315 7,921 12,854 318,170 74,890 1,008 87,407 - 8,818,897 Total liabilities and fund balances $ 458,098 $ 5,701 $ - $ 179,101 $ 180,650 $ 718,044 $ 3,315 $ 7,921 $ 12,854 $ 318,170 $ 159,410 $ 1,008 $ 87,479 $ 31,158 $ 9,388,856 Special Revenue Funds
City of Calistoga

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2022
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Gas Tax
Road
Maintenance &
Rehab Measure T
Parking
Ordinance Administration Fire Police Transportation
CDBG Loan
Repayment
CDBG
Revolving
Loan
Palisades
Landscape
Maintenance
Asset
Forfeiture
Affordable
Housing Quaility of Life
Revenues:

Intergovernmental $ 127,533 $ 115,665 $ 535,975 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Charges for services - - - 11,867 46,152 80,754 50,819 99,316 - - 1,505 - 56,122 98,303 Transient occupancy tax - - - - - - - - - - - - 982,694 - Interest 8 663 3,553 302 263 289 287 1,627 145 - 5 41 4,221 167 Miscellaneous - - - - - - - - - - 58,475 - - -
Total revenues 127,541 116,328 539,528 12,169 46,415 81,043 51,106 100,943 145 58,475 1,510 41 1,043,037 98,470 Expenditures:

Current: Public safety - - - - - - - - - - - 2,517 - -
Public works 30,257 - - - - - - - - - 5,045 - - -
Housing - - - - - - - - - 131,608 - - - -
Debt service: Principal - - - - - - - - - - - - - -
Interest - - - - - - - - - - - - - -
Total expenditures 30,257 - - - - - - - - 131,608 5,045 2,517 - -Excess (deficiency) of revenues over (under) expenditures 97,284 116,328 539,528 12,169 46,415 81,043 51,106 100,943 145 (73,133) (3,535) (2,476) 1,043,037 98,470 Other financing sources (uses):

Transfers in - - - - - - - - - - - - - -
Transfers out (28,415) (95,000) - - - - - - (96,879) - - - - (107,374) Total other financing sources (uses) (95,000) (28,415) - - - - - - (96,879) - - - - (107,374)Net change in fund balances 2,284 87,913 539,528 12,169 46,415 81,043 51,106 4,064 145 (73,133) (3,535) (2,476) 1,043,037 (8,904) Fund balances, July 1 221,279 7,875 983,345 120,066 68,883 45,452 74,458 708,604 415,130 841,111 5,313 20,633 1,779,764 81,933 Fund balances, June 30 10,159 $ 309,192 $ 1,522,873 $ 132,235 $ 115,298 $ 126,495 $ 125,564 $ 712,668 $ 415,275 $ 767,978 $ 1,778 $ 18,157 $ 2,822,801 $ 73,029 $ Special Revenue Funds
City of Calistoga

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2022
- 5
0 -
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Home
Silverado
Landscape
Maintenance
Abandoned
Vehicle Traffic Signal MTC Street Measure A
North West
Drainage
Recreation
Donations
Police
Donation Police Grants Tree Mitigation Fire Donation
Mobile Home
Park
City Debt
Service
Total
Nonmajor
Governmental Funds
Revenues:

Intergovernmental $ - $ - $ - $ - $ 508,666 -$ $ - $ - $ - $ 108,484 $ - $ - $ - $ - $ 1,396,323 Charges for services - 1,000 - - - - - - - - - - 23,470 - 469,308 Transient occupancy tax - - - - - - - - - - - - - - 982,694 Interest 206 13 - 410 - 1,639 7 17 29 707 364 2 199 - 15,164Miscellaneous 18,375 - - - - - - 5,668 - - - - - - 82,518 Total revenues 18,581 1,013 - 410 508,666 1,639 7 5,685 29 109,191 364 23,669 2 - 2,946,007 Expenditures:

Current: Public safety - - - - - - - - - 452 - - - - 2,969 Public works - 50 - - 935,412 - - - - - 651 - 6,897 - 978,312 Housing 81,266 - - - - - - - - - - - - - 212,874
Debt service: Principal - - - - - - - - - - - - - 321,114 321,114 Interest - - - - - - - - - - - - - 52,788 52,788
Total expenditures 81,266 50 - - 935,412 - - - - 651 452 - 6,897 373,902 1,568,057 Excess (deficiency) of revenues over (under) expenditures 963 (62,685) - 410 1,639 (426,746) 7 5,685 29 108,739 (287) 2 16,772 (373,902) 1,377,950Other financing sources (uses):

Transfers in - - - 4,290 232,192 758,121 - - - - - - - 373,902 1,368,505 Transfers out - - - (1,722) (41,716) (6,560) - (3,000) - (125,000) - - - (8,110) (513,776) Total other financing sources (uses) - - 4,290 (1,722) 225,632 716,405 - (3,000) - (125,000) - - 373,902 (8,110) 854,729 Net change in fund balances (62,685) 963 (1,722) 4,700 (201,114) 718,044 7 2,685 29 (16,261) (287) 2 8,662 - 2,232,679 Fund balances, July 1 520,783 4,738 1,722 174,401 - - 5,236 3,308 12,825 334,431 75,177 1,006 78,745 - 6,586,218 Fund balances, June 30 458,098 $ 5,701 $ - $ 179,101 $ (201,114) $ 718,044 $ 3,315 $ 7,921 $ 12,854 $ 318,170 $ 74,890 $ 1,008 $ 87,407 $ - $ $ 8,818,897 Special Revenue Funds
City of Calistoga

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2022
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1701 NOVATO BLVD, SUITE 302
NOVATO, CA 94947
PH. (415) 457-1215
FAX. (415) 457-6735
www.maocpa.com
INDEPENDENT AUDITORS’ REPORT ON

INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER

MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Calistoga
Calistoga, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of City of Calistoga which comprise the statement of net position as of June 30, 2022, and the related statement of activities for the year then ended, and the related notes to the financial statements, which collectively comprise City of Calistoga’s basic financial statements, and have issued our report thereon dated June 27, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Calistoga’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Calistoga’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Calistoga’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Calistoga’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. - 52 -
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To the Honorable Mayor and
Members of the City Council
City of Calistoga - Page 2
- 53 -
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of City of Calistoga’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Calistoga’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

O’Connor & Company
Novato, California
June 27, 2023
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CITY OF CALISTOGA

CITY COUNCIL & MANAGEMENT REPORT
For the Year Ended
JUNE 30, 2022
Item #7.3.

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TABLE OF CONTENTS
PAGE
Report on Internal Control 1
Required Communications 2-3
Management Observations 4-5
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1701 NOVATO BLVD, SUITE 302
NOVATO, CA 94947
PH. (415) 457-1215
FAX. (415) 457-6735
www.maocpa.com

- 1 -
City Council
City of Calistoga
Calistoga, California
In planning and performing our audit of the basic financial statements of City of Calistoga for the fiscal year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered its internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of its internal control. Accordingly, we do not express an opinion on the effectiveness of City of Calistoga’s internal control.

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity’s basic financial statements that is more than inconsequential will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or a combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the basic financial statements will not be prevented or detected by the entity’s internal control.

Our consideration of the internal control was for the limited purpose described in the first paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses, as defined above. We did not identify any deficiencies in internal control that we consider material weaknesses, as defined above.

During our audit, we noted certain matters involving internal controls and other operational matters that are presented for your consideration in this report. We will review the status of these comments during our next audit engagement. Our comments and recommendations, all of which have been discussed with appropriate members of management, are not intended to be all-inclusive, but rather represent those matters that we considered worthy of your consideration. Our comments and recommendations are submitted as constructive suggestions to assist you in strengthening controls and procedures; they are not intended to reflect on the honesty or integrity of any employee. We will be pleased to discuss these comments in further detail at your convenience, to perform any additional study of these matters, or to assist City of Calistoga in implementing the recommendations.

This report is intended solely for the information and use of the City Council and management of City of Calistoga and others within the organization, and is not intended to be, and should not be, used by anyone other than these specified parties.

We thank City of Calistoga’s staff for its cooperation during our audit.

O’Connor & Company
Novato, California
June 27, 2023
Item #7.3.

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1701 NOVATO BLVD, SUITE 302
NOVATO, CA 94947
PH. (415) 457-1215
FAX. (415) 457-6735
www.maocpa.com

- 2 -
City Council
City of Calistoga
Calistoga, California
We have audited the basic financial statements of City of Calistoga for the year ended June 30, 2022.

Professional standards require that we provide you with the following information related to our audit.

Our Responsibility under U.S. Generally Accepted Auditing Standards As stated in our engagement letter dated August 2, 2022, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with U.S. generally accepted accounting principles. Because an audit is designed to provide reasonable, but not absolute assurance and because we did not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us.

As part of our audit, we considered the internal control of City of Calistoga. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by City of Calistoga are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year. We noted no transactions entered into by City of Calistoga during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. We evaluated the key factors and assumptions used to develop the accounting estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The most sensitive estimate(s) affecting the financial statements were:
 Accrual and disclosure of compensated absences.
 Capital asset lives and depreciation expense.
 Actuarial assumptions for uninsured claims liabilities, pension, and other post-employment benefit plans.  Accrual and disclosure of leases.
 Fair value of investments and financial instruments.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. The 4 audit adjustments detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole.

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City Council
City of Calistoga – Page 2
- 3 -
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated June 27, 2023.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, like obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to City of Calistoga’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Calistoga’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis and the Budgetary Comparison Schedule for the budgeted Major Funds, which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining statements and individual fund statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

This report is intended solely for the information and use of management and City Council of City of Calistoga, and is not intended to be, and should not be, used by anyone other than these specified parties.

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City of Calistoga

MANAGEMENT REPORT
For the Year Ended June 30, 2022
- 4 -
Current Year Observations

1. GASB 87 Lease Capitalization Policy
Observation:

City of Calistoga (the City) implemented Governmental Accounting Standards Board Statement No. 87, Leases, which became effective for the year ended June 30, 2022, and had immaterial effects on the financial statements. This new standard requires leases to be capitalized as intangible assets. In compliance with the new accounting statement the City should consider formalizing a capitalization policy for leases like their capitalization policy for capital assets.

Recommendation:

We recommend the City consider formalizing a capitalization policy for leases liabilities and the right to use assets over $40,000 (estimate to consider). The City should also consider keeping the terms of leases to be either month to month or annual leases (12 months or less).

2. Payroll Tax Return Reconciliation
Observation:

During our audit, we noted the City’s reconciliation of salary and tax amounts on the quarterly payroll tax returns to the general ledger was not completed.

Recommendation:

We recommend the City reconcile the salary and tax amounts reported on the quarterly payroll tax returns to the City’s general ledger.

3. Balance Sheet Accounts Reconciliations
Observation:

During our audit, we noted the City’s reconciliation of Utility customer accounts receivables, accounts payable, Payroll cash account (account number 01-1000) and fund 42 developer deposit accounts were not completed. This was caused by staff turnover in the City’s Finance Department.

Recommendation:

We recommend the City reconcile the aforementioned accounts to the City’s general ledger on a monthly basis.

Prior Year Observations
1) Public Works Department Materials Inventory
Observation:

During our review of the City’s inventory controls, we noted the Public Works Department does not take a physical inventory of water pipes and meters nor does it maintain a perpetual inventory system. Total estimated value of the inventory is $30,000 for water pipes and supplies and another $5,000 for streets and road materials.

Item #7.3.

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City of Calistoga

MANAGEMENT REPORT
For the Year Ended June 30, 2022
- 5 -
Recommendation:

The estimated value of the inventory is not material to the City overall, but the City should consider developing a perpetual inventory system for valuable items and performing physical inventory counts twice a year. The physical counts should be reconciled with the perpetual records and discrepancies should be investigated.

Status:

This recommendation has not been implemented.
2) Written Accounting, Administrative and Fraud Procedures Manual Observation:

During the course of our audit, we noted that the City does not have a formal accounting, administrative and fraud procedures manual. This manual would document the City’s internal controls to safeguard assets and accounting records. This manual would also note the City’s policies regarding prevention, detection and deterrence of fraud and would serve as a training guide for new employees.

Recommendation:

We recommended the City develop and maintain an up-to-date accounting, administrative and fraud procedures manual.

Status:

This recommendation regarding the accounting procedures manual has not been implemented. The City implemented a fraud policy in September 2015.

Item #7.3.

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City of Calistoga

STAFF REPORT
To: Honorable Mayor and City Council
From: Yudiana Galvan, Interim City Clerk
Meeting: City Council - Aug 01 2023
Subject: Agreement with Calistoga Tribune and Press Democrat for Publication of Legal Advertisements for Fiscal Year 2023-24
DESCRIPTION:

Consider adopting a Resolution authorizing the City Manager to execute an agreement for consultant services with Calistoga Tribune and The Press Democrat for publication of legal advertisements in an amount not to exceed $15,000 in total for Fiscal Year 2023-24.

RECOMMENDATION:

Consider Adopting Resolution
BACKGROUND/SUMMARY:

Each year, in accordance with Public Contract Code §20169, cities that have more than one newspaper of general circulation must publish a notice inviting bids for the publication of legal advertisements. The Calistoga Tribune is the City's current provider.

Staff published a request for proposals for legal advertising to be submitted to the City Clerk by Monday, July 10, 2023. A proposal was received from The Calistoga Tribune and the Press Democrat.

CEQA STATUS:

This item is exempt.

FINANCIAL IMPACT:

The estimated cost for publishing legal notices and display advertisements in Fiscal Year 2023-24 is $15,000. Additional costs for publication of legal notices for development projects may be required and paid for by the applicant.

ATTACHMENT(S):

RESOLUTIONTRIBUNE AND PRESS

CALISTOGA TRIBUNE PROPOSAL

PRESS DEMOCRAT PROPOSAL
APPROVAL(S):

Item #7.4.

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Calistoga City CouncilAugust 1, 2023

Calistoga City Council
August 1, 2023